1009 
‘‘(A) determine the amount and composi-
tion of outer Continental Shelf revenues that 
were received by the United States in each of 
the fiscal years 2004 through 2008; 
‘‘(B) project the amount and composition 
of outer Continental Shelf revenues that will be 
received in the United States in each of the fis-
cal years 2009 through 2013; and 
‘‘(C) submit to the Congress a report re-
garding whether any of the dollar amounts set 
forth in clauses (v) though (x) of paragraph 
(2)(A) or paragraph (2)(B) should be modified 
to reflect those projections. 
‘‘(6) AUTHORIZATION
OF
APPROPRIATION
OF 
ADDITIONAL AMOUNTS.—In addition to the amounts 
deposited into the Fund under paragraph (2) there 
are authorized to be appropriated to the Fund— 
‘‘(A) for each of fiscal years 2004 through 
2013 up to $500,000,000; and 
‘‘(B) for each fiscal year after fiscal year 
2013 up to 25 percent of qualified outer Conti-
nental Shelf revenues received by the United 
States in the preceding fiscal year. 
‘‘(c) USE
OF
SECURE
ENERGY
REINVESTMENT 
FUND.—
1010 
‘‘(1) IN GENERAL.—(A) The Secretary shall use 
amounts in the Fund remaining after the application 
of subsections (h) and (i) to pay to each Coastal En-
ergy State that has a Secure Energy Reinvestment 
Plan approved by the Secretary under this section, 
and to coastal political subdivisions of such State, 
the amount allocated to the State or coastal political 
subdivision, respectively, under this subsection. 
‘‘(B) The Secretary shall make payments under 
this paragraph in December of 2004, and of each 
year thereafter, from revenues received by the 
United States in the immediately preceding fiscal 
year. 
‘‘(2) ALLOCATION.—The Secretary shall allo-
cate amounts deposited into the Fund in a fiscal 
year, and other amounts determined by the Sec-
retary to be available, among Coastal Energy States 
that have an approved plan, and to coastal political 
subdivisions of such States, as follows: 
‘‘(A)(i) Of the amounts made available for 
each of the first 10 fiscal years for which 
amounts are available for allocation under this 
paragraph, the allocation for each Coastal En-
ergy State shall be calculated based on the ratio 
of qualified outer Continental Shelf revenues
1011 
generated off the coastline of the Coastal En-
ergy State to the qualified outer Continental 
Shelf revenues generated off the coastlines of 
all Coastal Energy States for the period begin-
ning January 1, 1992, and ending December 
31, 2001. 
‘‘(ii) Of the amounts available for a fiscal 
year in a subsequent 10-fiscal-year period, the 
allocation for each Coastal Energy State shall 
be calculated based on such ratio determined by 
the Secretary with respect to qualified outer 
Continental Shelf revenues generated in each 
subsequent corresponding 10-year period. 
‘‘(iii) For purposes of this subparagraph, 
qualified outer Continental Shelf revenues shall 
be considered to be generated off the coastline 
of a Coastal Energy State if the geographic 
center of the lease tract from which the reve-
nues are generated is located within the area 
formed by the extension of the State’s seaward 
lateral boundaries, calculated using the strict 
and scientifically derived conventions estab-
lished to delimit international lateral boundaries 
under the Law of the Sea, as indicated on the 
map entitled ‘Calculated Seaward Lateral
1012 
Boundaries’ and dated October 2003, on file in 
the Office of the Director, Minerals Manage-
ment Service. 
‘‘(B) 35 percent of each Coastal Energy 
State’s allocable share as determined under 
subparagraph (A) shall be allocated among and 
paid directly to the coastal political subdivisions 
of the State by the Secretary based on the fol-
lowing formula: 
‘‘(i) 25 percent shall be allocated 
based on the ratio of each coastal political 
subdivision’s coastal population to the 
coastal population of all coastal political 
subdivisions of the Coastal Energy State. 
‘‘(ii) 25 percent shall be allocated 
based on the ratio of each coastal political 
subdivision’s coastline miles to the coast-
line miles of all coastal political subdivi-
sions of the State. In the case of a coastal 
political subdivision without a coastline, 
the coastline of the political subdivision for 
purposes of this clause shall be one-third 
the average length of the coastline of the 
other coastal political subdivisions of the 
State.
1013 
‘‘(iii) 50 percent shall be allocated 
based on a formula that allocates 75 per-
cent of the funds based on such coastal po-
litical subdivision’s relative distance from 
any leased tract used to calculate that 
State’s allocation and 25 percent of the 
funds based on the relative level of outer 
Continental Shelf oil and gas activities in 
a coastal political subdivision to the level of 
outer Continental Shelf oil and gas activi-
ties in all coastal political subdivisions in 
such State, as determined by the Sec-
retary, except that in the case of a coastal 
political subdivision in the State of Cali-
fornia that has a coastal shoreline, that is 
not within 200 miles of the geographic cen-
ter of a leased tract or portion of a leased 
tract, and in which there is located one or 
more oil refineries the allocation under this 
clause shall be determined as if that coast-
al political subdivision were located within 
a distance of 50 miles from the geographic 
center of the closest leased tract with 
qualified outer Continental Shelf revenues.
1016 
‘‘(1) DEVELOPMENT
AND
SUBMISSION
OF 
STATE PLANS.—The Governor of each State seeking 
to receive funds under this section shall prepare, and 
submit to the Secretary, a Secure Energy Reinvest-
ment Plan describing planned expenditures of funds 
received under this section. The Governor shall in-
clude in the State plan submitted to the Secretary 
plans prepared by the coastal political subdivisions 
of the State. The Governor and the coastal political 
subdivision shall solicit local input and provide for 
public participation in the development of the State 
plan. In describing the planned expenditures, the 
State and coastal political subdivisions shall include 
only items that are uses authorized under subsection 
(e). 
‘‘(2) APPROVAL OR DISAPPROVAL.— 
‘‘(A) IN
GENERAL.—The Secretary may 
not disburse funds to a State or coastal political 
subdivision of a State under this section before 
the date the State has an approved plan. The 
Secretary shall approve a Secure Energy Rein-
vestment Plan submitted by a State under 
paragraph (1) if the Secretary determines that 
the expenditures provided for in the plan are
1017 
uses authorized under subsection (e), and that 
the plan contains each of the following: 
‘‘(i) The name of the State agency 
that will have the authority to represent 
and act for the State in dealing with the 
Secretary for purposes of this section. 
‘‘(ii) A program for the implementa-
tion of the plan, that (I) has as a goal im-
proving the environment, (II) has as a goal 
addressing the impacts of oil and gas pro-
duction from the outer Continental Shelf, 
and (III) includes a description of how the 
State and coastal political subdivisions of 
the State will evaluate the effectiveness of 
the plan. 
‘‘(iii) Certification by the Governor 
that ample opportunity has been accorded 
for public participation in the development 
and revision of the plan. 
‘‘(iv) Measures for taking into account 
other relevant Federal resources and pro-
grams. The plan shall be correlated so far 
as practicable with other State, regional, 
and local plans.
1018 
‘‘(v) For any State for which the ratio 
determined under subsection (c)(2)(A)(i) 
or (c)(2)(A)(ii), as appropriate, expressed 
as a percentage, exceeds 25 percent, a plan 
to spend not less than 30 percent of the 
total funds provided under this section 
each fiscal year to that State and appro-
priate coastal political subdivisions, to ad-
dress the socioeconomic or environmental 
impacts identified in the plan that remain 
significant or progressive after implemen-
tation of mitigation measures identified in 
the most current environmental impact 
statement (as of the date of the enactment 
of this clause) required under the National 
Environmental Protection Act of 1969 for 
lease sales under this Act. 
‘‘(vi) A plan to utilize at least one-half 
of the funds provided pursuant to sub-
section (c)(2)(B), and a portion of other 
funds provided to such State under this 
section, on programs or projects that are 
coordinated and conducted in partnership 
between the State and coastal political sub-
division.
1019 
‘‘(B) PROCEDURE AND TIMING.—The Sec-
retary shall approve or disapprove each plan 
submitted in accordance with this subsection 
within 90 days after its submission. 
‘‘(3) AMENDMENT OR REVISION.—Any amend-
ment to or revision of an approved plan shall be pre-
pared and submitted in accordance with the require-
ments under this paragraph for the submittal of 
plans, and shall be approved or disapproved by the 
Secretary in accordance with paragraph (2)(B). 
‘‘(e) AUTHORIZED USES.—A Coastal Energy State, 
and a coastal political subdivision of such a State, shall 
use amounts paid under this section (including any such 
amounts deposited into a trust fund administered by the 
State or coastal political subdivision dedicated to uses con-
sistent with this subsection), in compliance with Federal 
and State law and the approved plan of the State, only 
for one or more of the following purposes: 
‘‘(1) Projects and activities, including edu-
cational activities, for the conservation, protection, 
or restoration of coastal areas including wetlands. 
‘‘(2) Mitigating damage to, or the protection of, 
fish, wildlife, or natural resources. 
‘‘(3) To the extent of such sums as are consid-
ered reasonable by the Secretary, planning assist-
1020 
ance and administrative costs of complying with this 
section. 
‘‘(4) Implementation of federally approved 
plans or programs for marine, coastal, subsidence, 
or conservation management or for protection of re-
sources from natural disasters. 
‘‘(5) Mitigating impacts of outer Continental 
Shelf activities through funding onshore infrastruc-
ture and public service needs. 
‘‘(f) COMPLIANCE WITH AUTHORIZED USES.—If the 
Secretary determines that an expenditure of an amount 
made by a Coastal Energy State or coastal political sub-
division is not in accordance with the approved plan of 
the State (including the plans of coastal political subdivi-
sions included in such plan), the Secretary shall not dis-
burse any further amounts under this section to that 
Coastal Energy State or coastal political subdivision 
until— 
‘‘(1) the amount is repaid to the Secretary; or 
‘‘(2) the Secretary approves an amendment to 
the plan that authorizes the expenditure. 
‘‘(g) ARBITRATION
OF STATE
AND LOCAL DIS-
PUTES.—The Secretary may require, as a condition of any 
payment under this section, that a State or coastal polit-
ical subdivision in a State must submit to arbitration—
1021 
‘‘(1) any dispute between the State or coastal 
political subdivision (or both) and the Secretary re-
garding implementation of this section; and 
‘‘(2) any dispute between the State and political 
subdivision regarding implementation of this section, 
including any failure to include, in the plan sub-
mitted by the State for purposes of subsection (d), 
any spending plan of the coastal political subdivi-
sion. 
‘‘(h) ADMINISTRATIVE EXPENSES.—Of amounts in 
the Fund each fiscal year, the Secretary may use up to 
one-half of one percent for the administrative costs of im-
plementing this section. 
‘‘(i) FUNDING FOR CONSORTIUM.— 
‘‘(1) IN GENERAL.—Of amounts deposited into 
the Fund in each fiscal year 2004 through 2013, 2 
percent shall be available to the Secretary of the In-
terior to provide funding for the Coastal Restoration 
and Enhancement through Science and Technology 
program. 
‘‘(2) 
TREATMENT.—Any 
amount 
available 
under this subsection for a fiscal year shall, for pur-
poses of determining the amount appropriated under 
any other provision of law that authorizes appropria-
tions to carry out the program referred to in para-
1022 
graph (1), be treated as appropriated under that 
other provision. 
‘‘(j) DISPOSITION
OF FUNDS.—A Coastal Energy 
State or coastal political subdivision may use funds pro-
vided to such entity under this section, subject to sub-
section (e), for any payment that is eligible to be made 
with funds provided to States under section 35 of the Min-
eral Leasing Act (30 U.S.C. 191). 
‘‘(k) REPORTS.—Each fiscal year following a fiscal 
year in which a Coastal Energy State or coastal political 
subdivision of a Coastal Energy State receives funds under 
this section, the Governor of the Coastal Energy State, 
in coordination with such State’s coastal political subdivi-
sions, shall account for all funds so received for the pre-
vious fiscal year in a written report to the Secretary. The 
report shall include, in accordance with regulations pre-
scribed by the Secretary, a description of all projects and 
activities that received such funds. In order to avoid dupli-
cation, such report may incorporate, by reference, any 
other reports required to be submitted under other provi-
sions of law. 
‘‘(l) SIGNS.—The Secretary shall require, as a condi-
tion of any allocation of funds provided with amounts 
made available by this section, that each State and coastal 
political subdivision shall include on any sign otherwise in-
1023 
stalled at any site at or near an entrance or public use 
focal point area for which such funds are used, a state-
ment that the existence or development of the site (or 
both), as appropriate, is a product of such funds.’’. 
(b) ADDITIONAL AMENDMENTS.—Section 31 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1356a) is 
amended— 
(1) by striking subsection (a); 
(2) in subsection (c) by striking ‘‘For fiscal 
year 2001, $150,000,000 is’’ and inserting ‘‘Such 
sums as may be necessary to carry out this section 
are’’; 
(3) in subsection (d)(1)(B) by striking ‘‘, ex-
cept’’ and all that follows through the end of the 
sentence and inserting a period; 
(4) by redesignating subsections (b) though (g) 
in order as subsection (a) through (f); and 
(5) by striking ‘‘subsection (f)’’ each place it 
appears and inserting ‘‘subsection (e)’’. 
(c) UTILIZATION OF COASTAL RESTORATION AND 
ENHANCEMENT THROUGH SCIENCE AND TECHNOLOGY 
PROGRAM.— 
(1) AUTHORIZATION.—The Secretary of the In-
terior and the Secretary of Commerce may each use 
the Coastal Restoration and Enhancement through
1024 
Science and Technology program for the purposes 
of— 
(A) assessing the effects of coastal habitat 
restoration techniques; 
(B) developing improved ecosystem mod-
eling capabilities for improved predictions of 
coastal conditions and habitat change and for 
developing new technologies for restoration ac-
tivities; and 
(C) identifying economic options to address 
socioeconomic consequences of coastal degrada-
tion. 
(2) CONDITION.—The Secretary of the Interior, 
in consultation with the Secretary of Commerce, 
shall ensure that the program— 
(A) establishes procedures designed to 
avoid duplicative activities among Federal agen-
cies and entities receiving Federal funds; 
(B) coordinates with persons involved in 
similar activities; and 
(C) establishes a mechanism to collect, or-
ganize, and make available information and 
findings on coastal restoration. 
(3) REPORT.—Not later than September 30, 
2008, the Secretary of the Interior, in consultation
1025 
with the Secretary of Commerce, shall transmit a re-
port to the Congress on the effectiveness of any Fed-
eral and State restoration efforts conducted pursu-
ant to this subsection and make recommendations to 
improve coordinated coastal restoration efforts. 
(4) FUNDING.—For each of fiscal years 2004 
through 2013, there is authorized to be appropriated 
to the Secretary $10,000,000 to carry out activities 
under this subsection. 
Subtitle C—Reforms to the Board 
of Directors of the Tennessee 
Valley Authority 
SEC. 1431. CHANGE IN COMPOSITION, OPERATION, AND DU-
TIES OF THE BOARD OF DIRECTORS OF THE 
TENNESSEE VALLEY AUTHORITY. 
The Tennessee Valley Authority Act of 1933 (16 
U.S.C. 831 et seq.) is amended by striking section 2 and 
inserting the following: 
‘‘SEC. 2. MEMBERSHIP, OPERATION, AND DUTIES OF THE 
BOARD OF DIRECTORS. 
‘‘(a) MEMBERSHIP.— 
‘‘(1) APPOINTMENT.—The Board of Directors 
of the Corporation (referred to in this Act as the 
‘Board’) shall be composed of 9 members appointed 
by the President by and with the advice and consent
1026 
of the Senate, at least 5 of whom shall be a legal 
resident of a State any part of which is in the serv-
ice area of the Corporation. 
‘‘(2) CHAIRMAN.—The members of the Board 
shall select 1 of the members to act as chairman of 
the Board. 
‘‘(b) QUALIFICATIONS.—To be eligible to be ap-
pointed as a member of the Board, an individual— 
‘‘(1) shall be a citizen of the United States; 
‘‘(2) shall have management expertise relative 
to a large for-profit or nonprofit corporate, govern-
ment, or academic structure; 
‘‘(3) shall not be an employee of the Corpora-
tion; and 
‘‘(4) shall make full disclosure to Congress of 
any investment or other financial interest that the 
individual holds in the energy industry. 
‘‘(c) RECOMMENDATIONS.—In appointing members 
of the Board, the President shall— 
‘‘(1) consider recommendations from such pub-
lic officials as— 
‘‘(A) the Governors of States in the service 
area; 
‘‘(B) individual citizens;
1027 
‘‘(C) business, industrial, labor, electric 
power distribution, environmental, civic, and 
service organizations; and 
‘‘(D) the congressional delegations of the 
States in the service area; and 
‘‘(2) seek qualified members from among per-
sons who reflect the diversity, including the geo-
graphical diversity, and needs of the service area of 
the Corporation. 
‘‘(d) TERMS.— 
‘‘(1) IN GENERAL.—A member of the Board 
shall serve a term of 5 years. A member of the 
Board whose term has expired may continue to serve 
after the member’s term has expired until the date 
on which a successor takes office, except that the 
member shall not serve beyond the end of the ses-
sion of Congress in which the term of the member 
expires. 
‘‘(2) VACANCIES.—A member appointed to fill a 
vacancy on the Board occurring before the expira-
tion of the term for which the predecessor of the 
member was appointed shall be appointed for the re-
mainder of that term. 
‘‘(e) QUORUM.—
1028 
‘‘(1) IN GENERAL.—Five of the members of the 
Board shall constitute a quorum for the transaction 
of business. 
‘‘(2) VACANCIES.—A vacancy on the Board 
shall not impair the power of the Board to act. 
‘‘(f) COMPENSATION.— 
‘‘(1) IN GENERAL.—A member of the Board 
shall be entitled to receive— 
‘‘(A) a stipend of— 
‘‘(i) $45,000 per year; or 
‘‘(ii)(I) in the case of the chairman of 
any committee of the Board created by the 
Board, $46,000 per year; or 
‘‘(II) in the case of the chairman of 
the Board, $50,000 per year; and 
‘‘(B) travel expenses, including per diem in 
lieu of subsistence, in the same manner as per-
sons employed intermittently in Government 
service under section 5703 of title 5, United 
States Code. 
‘‘(2) 
ADJUSTMENTS
IN
STIPENDS.—The 
amount of the stipend under paragraph (1)(A)(i) 
shall be adjusted by the same percentage, at the 
same time and manner, and subject to the same lim-
1029 
itations as are applicable to adjustments under sec-
tion 5318 of title 5, United States Code. 
‘‘(g) DUTIES.— 
‘‘(1) IN GENERAL.—The Board shall— 
‘‘(A) establish the broad goals, objectives, 
and policies of the Corporation that are appro-
priate to carry out this Act; 
‘‘(B) develop long-range plans to guide the 
Corporation in achieving the goals, objectives, 
and policies of the Corporation and provide as-
sistance to the chief executive officer to achieve 
those goals, objectives, and policies; 
‘‘(C) ensure that those goals, objectives, 
and policies are achieved; 
‘‘(D) approve an annual budget for the 
Corporation; 
‘‘(E) adopt and submit to Congress a con-
flict-of-interest policy applicable to members of 
the Board and employees of the Corporation; 
‘‘(F) establish a compensation plan for em-
ployees of the Corporation in accordance with 
subsection (i); 
‘‘(G) approve all compensation (including 
salary or any other pay, bonuses, benefits, in-
centives, and any other form of remuneration)
1030 
of all managers and technical personnel that re-
port directly to the chief executive officer (in-
cluding any adjustment to compensation); 
‘‘(H) ensure that all activities of the Cor-
poration are carried out in compliance with ap-
plicable law; 
‘‘(I) create an audit committee, composed 
solely of Board members independent of the 
management of the Corporation, which shall— 
‘‘(i) in consultation with the inspector 
general of the Corporation, recommend to 
the Board an external auditor; 
‘‘(ii) receive and review reports from 
the external auditor of the Corporation and 
inspector general of the Corporation; and 
‘‘(iii) make such recommendations to 
the Board as the audit committee con-
siders necessary; 
‘‘(J) create such other committees of 
Board members as the Board considers to be 
appropriate; 
‘‘(K) conduct such public hearings as it 
deems appropriate on issues that could have a 
substantial effect on—
1031 
‘‘(i) the electric ratepayers in the serv-
ice area; or 
‘‘(ii) the economic, environmental, so-
cial, or physical well-being of the people of 
the service area; 
‘‘(L) establish the electricity rates charged 
by the Corporation; and 
‘‘(M) engage the services of an external 
auditor for the Corporation. 
‘‘(2) MEETINGS.—The Board shall meet at 
least 4 times each year. 
‘‘(h) CHIEF EXECUTIVE OFFICER.— 
‘‘(1) APPOINTMENT.—The Board shall appoint 
a person to serve as chief executive officer of the 
Corporation. 
‘‘(2) QUALIFICATIONS.— 
‘‘(A) IN GENERAL.—To serve as chief exec-
utive officer of the Corporation, a person— 
‘‘(i) shall have senior executive-level 
management experience in large, complex 
organizations; 
‘‘(ii) shall not be a current member of 
the Board or have served as a member of 
the Board within 2 years before being ap-
pointed chief executive officer; and
1032 
‘‘(iii) shall comply with the conflict-of- 
interest policy adopted by the Board. 
‘‘(B) EXPERTISE.—In appointing a chief 
executive officer, the Board shall give particular 
consideration to appointing an individual with 
expertise in the electric industry and with 
strong financial skills. 
‘‘(3) TENURE.—The chief executive officer shall 
serve at the pleasure of the Board. 
‘‘(i) COMPENSATION PLAN.— 
‘‘(1) IN GENERAL.—The Board shall approve a 
compensation plan that specifies all compensation 
(including salary or any other pay, bonuses, benefits, 
incentives, and any other form of remuneration) for 
the chief executive officer and employees of the Cor-
poration. 
‘‘(2) ANNUAL SURVEY.—The compensation plan 
shall be based on an annual survey of the prevailing 
compensation for similar positions in private indus-
try, including engineering and electric utility compa-
nies, publicly owned electric utilities, and Federal, 
State, and local governments. 
‘‘(3) 
CONSIDERATIONS.—The 
compensation 
plan shall provide that education, experience, level of 
responsibility, geographic differences, and retention
1033 
and recruitment needs will be taken into account in 
determining compensation of employees. 
‘‘(4) POSITIONS AT OR BELOW LEVEL IV.—The 
chief executive officer shall determine the salary and 
benefits of employees whose annual salary is not 
greater than the annual rate payable for positions at 
level IV of the Executive Schedule under section 
5315 of title 5, United States Code. 
‘‘(5) POSITIONS ABOVE LEVEL IV.—On the rec-
ommendation of the chief executive officer, the 
Board shall approve the salaries of employees whose 
annual salaries would be in excess of the annual rate 
payable for positions at level IV of the Executive 
Schedule under section 5315 of title 5, United 
States Code.’’. 
SEC. 1432. CHANGE IN MANNER OF APPOINTMENT OF 
STAFF. 
Section 3 of the Tennessee Valley Authority Act of 
1933 (16 U.S.C. 831b) is amended— 
(1) by striking the first undesignated paragraph 
and inserting the following: 
‘‘(a) APPOINTMENT BY THE CHIEF EXECUTIVE OF-
FICER.—The chief executive officer shall appoint, with the 
advice and consent of the Board, and without regard to 
the provisions of the civil service laws applicable to officers
1034 
and employees of the United States, such managers, as-
sistant managers, officers, employees, attorneys, and 
agents as are necessary for the transaction of the business 
of the Corporation.’’; and 
(2) by striking ‘‘All contracts’’ and inserting 
the following: 
‘‘(b) WAGE RATES.—All contracts’’. 
SEC. 1433. CONFORMING AMENDMENTS. 
(a) The Tennessee Valley Authority Act of 1933 (16 
U.S.C. 831 et seq.) is amended— 
(1) by striking ‘‘board of directors’’ each place 
it appears and inserting ‘‘Board of Directors’’; and 
(2) by striking ‘‘board’’ each place it appears 
and inserting ‘‘Board’’. 
(b) Section 9 of the Tennessee Valley Authority Act 
of 1933 (16 U.S.C. 831h) is amended— 
(1) by striking ‘‘The Comptroller General of the 
United States shall audit’’ and inserting the fol-
lowing: 
‘‘(c) AUDITS.—The Comptroller General of the 
United States shall audit’’; and 
(2) by striking ‘‘The Corporation shall deter-
mine’’ and inserting the following: 
‘‘(d) ADMINISTRATIVE ACCOUNTS
AND BUSINESS 
DOCUMENTS.—The Corporation shall determine’’.
1035 
(c) Title 5, United States Code, is amended— 
(1) in section 5314, by striking ‘‘Chairman, 
Board of Directors of the Tennessee Valley Author-
ity.’’; and 
(2) in section 5315, by striking ‘‘Members, 
Board of Directors of the Tennessee Valley Author-
ity.’’. 
SEC. 1434. APPOINTMENTS; EFFECTIVE DATE; TRANSITION. 
(a) APPOINTMENTS.— 
(1) IN GENERAL.—As soon as practicable after 
the date of enactment of this Act, the President 
shall submit to the Senate nominations of 6 persons 
to serve as members of the Board of Directors of the 
Tennessee Valley Authority in addition to the mem-
bers serving on the date of enactment of this Act. 
(2) INITIAL
TERMS.—Notwithstanding section 
2(d) of the Tennessee Valley Authority Act of 1933 
(as amended by this subtitle), in making the ap-
pointments under paragraph (1), the President shall 
appoint— 
(A) 2 members for a term to expire on 
May 18, 2006; 
(B) 2 members for a term to expire on 
May 18, 2008; and
1036 
(C) 2 members for a term to expire on 
May 18, 2010. 
(b) EFFECTIVE DATE.—The amendments made by 
this section and sections 1431, 1432, and 1433 take effect 
on the later of the date on which at least 3 persons nomi-
nated under subsection (a) take office or May 18, 2005. 
(c) SELECTION OF CHAIRMAN.—The Board of Direc-
tors of the Tennessee Valley Authority shall select 1 of 
the members to act as chairman of the Board not later 
than 30 days after the effective date of this section. 
(d) CONFLICT-OF-INTEREST POLICY.—The Board of 
Directors of the Tennessee Valley Authority shall adopt 
and submit to Congress a conflict-of-interest policy, as re-
quired by section 2(g)(1)(E) of the Tennessee Valley Au-
thority Act of 1933 (as amended by this subtitle), as soon 
as practicable after the effective date of this section. 
(e) TRANSITION.—A person who is serving as a mem-
ber of the board of directors of the Tennessee Valley Au-
thority on the date of enactment of this Act— 
(1) shall continue to serve until the end of the 
current term of the member; but 
(2) after the effective date specified in sub-
section (b), shall serve under the terms of the Ten-
nessee Valley Authority Act of 1933 (as amended by 
this subtitle); and
1043 
(b) ELIGIBLE ENTITIES.—Subsection (a) shall apply 
with respect to the production in the State of— 
(1) electricity from coal mined in the State and 
used in a facility, if such production meets all appli-
cable Federal and State laws and if such facility 
uses scrubbers or other forms of clean coal tech-
nology, 
(2) electricity from a renewable source such as 
wind, solar, or biomass, or 
(3) ethanol. 
(c) EFFECT ON INTERSTATE COMMERCE.—Any ac-
tion taken by a State in accordance with this section with 
respect to a tax or fee payable, or incentive applicable, 
for any period beginning after the date of the enactment 
of this Act shall— 
(1) be considered to be a reasonable regulation 
of commerce; and 
(2) not be considered to impose an undue bur-
den on interstate commerce or to otherwise impair, 
restrain, or discriminate, against interstate com-
merce. 
SEC. 1445. USE OF GRANULAR MINE TAILINGS. 
(a) AMENDMENT.—Subtitle F of the Solid Waste 
Disposal Act (42 U.S.C. 6961 et seq.) is amended by add-
ing at the end the following:
1051 
the application of the renewable fuels program in a 
non-contiguous State. 
‘‘(4) APPLICABLE PERCENTAGES.— 
‘‘(A) PROVISION
OF
ESTIMATE
OF
VOL-
UMES OF GASOLINE SALES.—Not later than Oc-
tober 31 of each of calendar years 2004 
through 2011, the Administrator of the Energy 
Information Administration shall provide to the 
Administrator of the Environmental Protection 
Agency an estimate of the volumes of gasoline 
that will be sold or introduced into commerce in 
the United States during the following calendar 
year. 
‘‘(B) DETERMINATION
OF
APPLICABLE 
PERCENTAGES.— 
‘‘(i) IN
GENERAL.—Not later than 
November 30 of each of the calendar years 
2004 through 2011, based on the estimate 
provided under subparagraph (A), the Ad-
ministrator shall determine and publish in 
the Federal Register, with respect to the 
following calendar year, the renewable fuel 
obligation that ensures that the require-
ments of paragraph (2) are met.