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‘‘(e)(1) The Secretary of the Interior, in consultation with the 
Secretary of Energy and the head of government of each insular 
area, shall update the plans required under subsection (c) by— 
‘‘(A) updating the contents required by subsection (c); 
‘‘(B) drafting long-term energy plans for such insular areas 
with the objective of reducing, to the extent feasible, their 
reliance on energy imports by the year 2012, increasing energy 
conservation and energy efficiency, and maximizing, to the 
extent feasible, use of indigenous energy sources; and 
‘‘(C) drafting long-term energy transmission line plans for 
such insular areas with the objective that the maximum 
percentage feasible of electric power transmission and distribu-
tion lines in each insular area be protected from damage caused 
by hurricanes and typhoons. 
‘‘(2) In carrying out this subsection, the Secretary of Energy 
shall identify and evaluate the strategies or projects with the 
greatest potential for reducing the dependence on imported fossil 
fuels as used for the generation of electricity, including strategies 
and projects for— 
‘‘(A) improved supply-side efficiency of centralized electrical 
generation, transmission, and distribution systems; 
‘‘(B) improved demand-side management through— 
‘‘(i) the application of established standards for energy 
efficiency for appliances; 
‘‘(ii) the conduct of energy audits for business and 
industrial customers; and 
‘‘(iii) the use of energy savings performance contracts; 
‘‘(C) increased use of renewable energy, including— 
‘‘(i) solar thermal energy for electric generation; 
‘‘(ii) solar thermal energy for water heating in large 
buildings, such as hotels, hospitals, government buildings, 
and residences; 
‘‘(iii) photovoltaic energy; 
‘‘(iv) wind energy; 
‘‘(v) hydroelectric energy; 
‘‘(vi) wave energy; 
‘‘(vii) energy from ocean thermal resources, including 
ocean thermal-cooling for community air conditioning; 
‘‘(viii) water vapor condensation for the production of 
potable water; 
‘‘(ix) fossil fuel and renewable hybrid electrical genera-
tion systems; and 
‘‘(x) other strategies or projects that the Secretary may 
identify as having significant potential; and 
‘‘(D) fuel substitution and minimization with indigenous 
biofuels, such as coconut oil. 
‘‘(3) In carrying out this subsection, for each insular area with 
a significant need for distributed generation, the Secretary of 
Energy shall identify and evaluate the most promising strategies 
and projects described in subparagraphs (C) and (D) of paragraph 
(2) for meeting that need. 
‘‘(4) In assessing the potential of any strategy or project under 
paragraphs (2) and (3), the Secretary of Energy shall consider— 
‘‘(A) the estimated cost of the power or energy to be pro-
duced, including— 
‘‘(i) any additional costs associated with the distribu-
tion of the generation; and
H. R. 6—88
‘‘(ii) the long-term availability of the generation source; 
‘‘(B) the capacity of the local electrical utility to manage, 
operate, and maintain any project that may be undertaken; 
and 
‘‘(C) other factors the Secretary of Energy considers to 
be appropriate. 
‘‘(5) Not later than 1 year after the date of enactment of 
this subsection, the Secretary of the Interior shall submit to the 
Committee on Energy and Natural Resources of the Senate, the 
Committee on Resources of the House of Representatives, and the 
Committee on Energy and Commerce of the House of Representa-
tives, the updated plans for each insular area required by this 
subsection.’’; and 
(4) by amending subsection (g)(4) to read as follows: 
‘‘(4) POWER LINE GRANTS FOR INSULAR AREAS.— 
‘‘(A) IN
GENERAL.—The Secretary of the Interior is 
authorized to make grants to governments of insular areas 
of the United States to carry out eligible projects to protect 
electric power transmission and distribution lines in such 
insular areas from damage caused by hurricanes and 
typhoons. 
‘‘(B) ELIGIBLE PROJECTS.—The Secretary of the Interior 
may award grants under subparagraph (A) only to govern-
ments of insular areas of the United States that submit 
written project plans to the Secretary for projects that 
meet the following criteria: 
‘‘(i) The project is designed to protect electric power 
transmission and distribution lines located in 1 or more 
of the insular areas of the United States from damage 
caused by hurricanes and typhoons. 
‘‘(ii) The project is likely to substantially reduce 
the risk of future damage, hardship, loss, or suffering. 
‘‘(iii) The project addresses 1 or more problems 
that have been repetitive or that pose a significant 
risk to public health and safety. 
‘‘(iv) The project is not likely to cost more than 
the value of the reduction in direct damage and other 
negative impacts that the project is designed to prevent 
or mitigate. The cost benefit analysis required by this 
criterion shall be computed on a net present value 
basis. 
‘‘(v) The project design has taken into consideration 
long-term changes to the areas and persons it is 
designed to protect and has manageable future mainte-
nance and modification requirements. 
‘‘(vi) The project plan includes an analysis of a 
range of options to address the problem it is designed 
to prevent or mitigate and a justification for the selec-
tion of the project in light of that analysis. 
‘‘(vii) The applicant has demonstrated to the Sec-
retary that the matching funds required by subpara-
graph (D) are available. 
‘‘(C) PRIORITY.—When making grants under this para-
graph, the Secretary of the Interior shall give priority 
to grants for projects which are likely to— 
‘‘(i) have the greatest impact on reducing future 
disaster losses; and
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‘‘(ii) best conform with plans that have been 
approved by the Federal Government or the govern-
ment of the insular area where the project is to be 
carried out for development or hazard mitigation for 
that insular area. 
‘‘(D) MATCHING REQUIREMENT.—The Federal share of 
the cost for a project for which a grant is provided under 
this paragraph shall not exceed 75 percent of the total 
cost of that project. The non-Federal share of the cost 
may be provided in the form of cash or services. 
‘‘(E) TREATMENT OF FUNDS FOR CERTAIN PURPOSES.—
Grants provided under this paragraph shall not be consid-
ered as income, a resource, or a duplicative program when 
determining eligibility or benefit levels for Federal major 
disaster and emergency assistance. 
‘‘(F) AUTHORIZATION
OF
APPROPRIATIONS.—There are 
authorized to be appropriated to carry out this paragraph 
$6,000,000 for each fiscal year beginning after the date 
of the enactment of this paragraph.’’. 
SEC. 252. PROJECTS ENHANCING INSULAR ENERGY INDEPENDENCE. 
(a) PROJECT FEASIBILTY STUDIES.— 
(1) IN
GENERAL.—On a request described in paragraph 
(2), the Secretary shall conduct a feasibility study of a project 
to implement a strategy or project identified in the plans sub-
mitted to Congress pursuant to section 604 of the Act entitled 
‘‘An Act to authorize appropriations for certain insular areas 
of the United States, and for other purposes’’, approved 
December 24, 1980 (48 U.S.C. 1492), as having the potential 
to— 
(A) significantly reduce the dependence of an insular 
area on imported fossil fuels; or 
(B) provide needed distributed generation to an insular 
area. 
(2) REQUEST.—The Secretary shall conduct a feasibility 
study under paragraph (1) on— 
(A) the request of an electric utility located in an 
insular area that commits to fund at least 10 percent 
of the cost of the study; and 
(B) if the electric utility is located in the Federated 
States of Micronesia, the Republic of the Marshall Islands, 
or the Republic of Palau, written support for that request 
by the President or the Ambassador of the affected freely 
associated state. 
(3) CONSULTATION.—The Secretary shall consult with 
regional utility organizations in— 
(A) conducting feasibility studies under paragraph (1); 
and 
(B) determining the feasibility of potential projects. 
(4) FEASIBILITY.—For the purpose of a feasibility study 
under paragraph (1), a project shall be determined to be feasible 
if the project would significantly reduce the dependence of 
an insular area on imported fossil fuels, or provide needed 
distributed generation to an insular area, at a reasonable cost. 
(b) IMPLEMENTATION.— 
(1) IN
GENERAL.—On a determination by the Secretary 
(in consultation with the Secretary of the Interior) that a project
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is feasible under subsection (a) and a commitment by an electric 
utility to operate and maintain the project, the Secretary may 
provide such technical and financial assistance as the Secretary 
determines is appropriate for the implementation of the project. 
(2) REGIONAL UTILITY ORGANIZATIONS.—In providing assist-
ance under paragraph (1), the Secretary shall consider pro-
viding the assistance through regional utility organizations. 
(c) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There are authorized to be appropriated 
to the Secretary— 
(A) $500,000 for each fiscal year for project feasibility 
studies under subsection (a); and 
(B) $4,000,000 for each fiscal year for project 
implementation under subsection (b). 
(2) LIMITATION OF FUNDS RECEIVED BY INSULAR AREAS.—
No insular area may receive, during any 3-year period, more 
than 20 percent of the total funds made available during that 
3-year period under subparagraphs (A) and (B) of paragraph 
(1) unless the Secretary determines that providing funding 
in excess of that percentage best advances existing opportuni-
ties to meet the objectives of this section. 
TITLE III—OIL AND GAS 
Subtitle A—Petroleum Reserve and Home 
Heating Oil 
SEC. 301. PERMANENT AUTHORITY TO OPERATE THE STRATEGIC 
PETROLEUM RESERVE AND OTHER ENERGY PROGRAMS. 
(a) AMENDMENT TO TITLE I OF THE ENERGY POLICY AND CON-
SERVATION ACT.—Title I of the Energy Policy and Conservation 
Act (42 U.S.C. 6212 et seq.) is amended— 
(1) by striking section 166 (42 U.S.C. 6246) and inserting 
the following: 
‘‘AUTHORIZATION OF APPROPRIATIONS 
‘‘SEC. 166. There are authorized to be appropriated to the 
Secretary such sums as are necessary to carry out this part and 
part D, to remain available until expended.’’; 
(2) by striking section 186 (42 U.S.C. 6250e); and 
(3) by striking part E (42 U.S.C. 6251). 
(b) AMENDMENT TO TITLE II OF THE ENERGY POLICY AND CON-
SERVATION ACT.—Title II of the Energy Policy and Conservation 
Act (42 U.S.C. 6271 et seq.) is amended— 
(1) by inserting before section 273 (42 U.S.C. 6283) the 
following: 
‘‘PART C—SUMMER FILL AND FUEL 
BUDGETING PROGRAMS’’; 
(2) by striking section 273(e) (42 U.S.C. 6283(e)); and 
(3) by striking part D (42 U.S.C. 6285). 
(c) TECHNICAL AMENDMENTS.—The table of contents for the 
Energy Policy and Conservation Act is amended—