I 
108TH CONGRESS 
1ST SESSION H. R. 1644
To enhance energy conservation and research and development, to provide 
for security and diversity in the energy supply for the American people, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 7, 2003
Mr. BARTON of Texas introduced the following bill; which was referred to the 
Committee on Energy and Commerce, and in addition to the Committees 
on Science, Resources, Education and the Workforce, and Transportation 
and Infrastructure, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To enhance energy conservation and research and develop-
ment, to provide for security and diversity in the energy 
supply for the American people, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Energy Policy Act of 2003’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title; table of contents. 
TITLE I—ENERGY CONSERVATION 
Subtitle A—Federal Leadership in Energy Conservation 
Sec. 1001. Energy and water saving measures in congressional buildings. 
Sec. 1002. Energy management requirements. 
Sec. 1003. Energy use measurement and accountability. 
Sec. 1004. Federal building performance standards. 
Sec. 1005. Procurement of energy efficient products. 
Sec. 1006. Energy savings performance contracts. 
Sec. 1007. Voluntary commitments to reduce industrial energy intensity. 
Sec. 1008. Federal agency participation in demand reduction programs. 
Sec. 1009. Advanced Building Efficiency Testbed. 
Sec. 1010. Increased use of recovered mineral component in federally funded 
projects involving procurement of cement or concrete. 
Subtitle B—Energy Assistance and State Programs 
Sec. 1021. LIHEAP and weatherization assistance. 
Sec. 1022. State energy programs. 
Sec. 1023. Energy efficient appliance rebate programs. 
Sec. 1024. Energy efficient public buildings. 
Sec. 1025. Low income community energy efficiency pilot program. 
Subtitle C—Energy Efficient Products 
Sec. 1041. Energy Star program. 
Sec. 1042. Consumer education on energy efficiency benefits of air condi-
tioning, heating, and ventilation maintenance. 
Sec. 1043. Additional definitions. 
Sec. 1044. Additional test procedures. 
Sec. 1045. Energy conservation standards for additional consumer and com-
mercial products. 
Sec. 1046. Energy labeling. 
Sec. 1047. Study of energy efficiency standards. 
TITLE II—OIL AND GAS 
Subtitle A—Alaska Natural Gas Pipeline 
Sec. 2001. Short title. 
Sec. 2002. Findings and purposes. 
Sec. 2003. Definitions. 
Sec. 2004. Issuance of certificate of public convenience and necessity. 
Sec. 2005. Environmental reviews. 
Sec. 2006. Pipeline expansion. 
Sec. 2007. Federal Coordinator. 
Sec. 2008. Judicial review. 
Sec. 2009. State jurisdiction over in-State delivery of natural gas. 
Sec. 2010. Study of alternative means of construction. 
Sec. 2011. Clarification of ANGTA status and authorities. 
Sec. 2012. Sense of Congress. 
Sec. 2013. Participation of small business concerns. 
Sec. 2014. Alaska pipeline construction training program.
Subtitle B—Strategic Petroleum Reserve 
Sec. 2101. Full capacity of Strategic Petroleum Reserve. 
Sec. 2102. Strategic Petroleum Reserve expansion. 
Sec. 2103. Permanent authority to operate the Strategic Petroleum Reserve 
and other energy programs. 
Subtitle C—Hydraulic Fracturing 
Sec. 2201. Hydraulic fracturing. 
Subtitle D—Unproven Oil and Natural Gas Reserves Recovery Program 
Sec. 2301. Program. 
Sec. 2302. Eligible reservoirs. 
Sec. 2303. Focus areas. 
Sec. 2304. Limitation on location of activities. 
Sec. 2305. Program administration. 
Sec. 2306. Advisory Committee. 
Sec. 2307. Limits on participation. 
Sec. 2308. Payments to Federal Government. 
Sec. 2309. Authorization of appropriations. 
Sec. 2310. Public availability of project results and methodologies. 
Sec. 2311. Sunset. 
Sec. 2312. Definitions. 
Subtitle E—Miscellaneous 
Sec. 2401. Appeals relating to pipeline construction projects. 
Sec. 2402. Natural gas market data transparency. 
Sec. 2403. Oil and gas exploration and production defined. 
TITLE III—HYDROELECTRIC RELICENSING 
Subtitle A—Alternative Conditions 
Sec. 3001. Alternative conditions and fishways. 
Subtitle B—Additional Hydropower 
Sec. 3201. Hydroelectric production incentives. 
Sec. 3202. Hydroelectric efficiency improvement. 
Sec. 3203. Small hydroelectric power projects. 
Sec. 3204. Increased hydroelectric generation at existing Federal facilities. 
TITLE IV—NUCLEAR MATTERS 
Subtitle A—Price-Anderson Act Amendments 
Sec. 4001. Short title. 
Sec. 4002. Extension of indemnification authority. 
Sec. 4003. Maximum assessment. 
Sec. 4004. Department of Energy liability limit. 
Sec. 4005. Incidents outside the United States. 
Sec. 4006. Reports. 
Sec. 4007. Inflation adjustment. 
Sec. 4008. Price-Anderson treatment of modular reactors. 
Sec. 4009. Applicability.
Sec. 4010. Prohibition on assumption by United States Government of liability 
for certain foreign accidents. 
Sec. 4011. Secure transfer of nuclear materials. 
Sec. 4012. Nuclear facility threats. 
Sec. 4013. Unreasonable risk consultation. 
Sec. 4014. Financial accountability. 
Sec. 4015. Civil penalties. 
Subtitle B—Miscellaneous Matters 
Sec. 4021. Licenses. 
Sec. 4022. Nuclear Regulatory Commission meetings. 
Sec. 4023. NRC training program. 
Sec. 4024. Cost recovery from Government agencies. 
Sec. 4025. Elimination of pension offset. 
Sec. 4026. Carrying of firearms by licensee employees. 
Sec. 4027. Unauthorized introduction of dangerous weapons. 
Sec. 4028. Sabotage of nuclear facilities or fuel. 
Sec. 4029. Cooperative research and development and special demonstration 
projects for the uranium mining industry. 
Sec. 4030. Uranium sales. 
Sec. 4031. Medical isotope production. 
Sec. 4032. Highly enriched uranium diversion threat report. 
Sec. 4033. Whistleblower protection. 
TITLE V—VEHICLES AND FUELS 
Subtitle A—Energy Policy Act Amendments 
Sec. 5011. Credit for substantial contribution toward noncovered fleets. 
Sec. 5012. Credit for alternative fuel infrastructure. 
Sec. 5013. Alternative fueled vehicle report. 
Sec. 5014. Allocation of incremental costs. 
Subtitle B—FreedomCAR and Hydrogen Fuel Program 
Sec. 5021. Short title. 
Sec. 5022. Findings, purpose, and definitions. 
Sec. 5023. Plan; report. 
Sec. 5024. Public-private partnership. 
Sec. 5025. Deployment. 
Sec. 5026. Assessment and transfer. 
Sec. 5027. Interagency task force. 
Sec. 5028. Advisory Committee. 
Sec. 5029. Authorization of appropriations. 
Sec. 5030. Fuel cell program at National Parks. 
Sec. 5030A. Advanced power system technology incentive program. 
Subtitle C—Clean School Buses 
Sec. 5031. Establishment of pilot program. 
Sec. 5032. Fuel cell bus development and demonstration program. 
Sec. 5033. Authorization of appropriations. 
Subtitle D—Advanced Vehicles 
Sec. 5041. Definitions. 
Sec. 5042. Pilot program.
Sec. 7012. Siting of interstate electrical transmission facilities. 
Subtitle B—Transmission Operation 
Sec. 7021. Open access transmission by certain utilities. 
Sec. 7022. Regional transmission organizations. 
Sec. 7023. Native load. 
Subtitle C—Reliability 
Sec. 7031. Electric reliability standards. 
Subtitle D—PUHCA Amendments 
Sec. 7041. Short title. 
Sec. 7042. Definitions. 
Sec. 7043. Repeal of the Public Utility Holding Company Act of 1935. 
Sec. 7044. Federal access to books and records. 
Sec. 7045. State access to books and records. 
Sec. 7046. Exemption authority. 
Sec. 7047. Affiliate transactions. 
Sec. 7048. Applicability. 
Sec. 7049. Effect on other regulations. 
Sec. 7050. Enforcement. 
Sec. 7051. Savings provisions. 
Sec. 7052. Implementation. 
Sec. 7053. Transfer of resources. 
Sec. 7054. Effective date. 
Sec. 7055. Authorization of appropriations. 
Sec. 7056. Conforming amendments to the Federal Power Act. 
Subtitle E—PURPA Amendments 
Sec. 7061. Real-time pricing and time-of-use metering standards. 
Sec. 7062. Cogeneration and small power production purchase and sale require-
ments. 
Sec. 7063. Smart metering. 
Subtitle F—Renewable Energy 
Sec. 7071. Net metering. 
Sec. 7072. Renewable energy production incentive. 
Sec. 7073. Renewable energy on Federal lands. 
Sec. 7074. Assessment of renewable energy resources. 
Subtitle G—Market Transparency, Round Trip Trading Prohibition, and 
Enforcement 
Sec. 7081. Market transparency rules. 
Sec. 7082. Prohibition on round trip trading. 
Sec. 7083. Conforming changes. 
Sec. 7084. Enforcement. 
Subtitle H—Consumer Protections 
Sec. 7091. Refund effective date. 
Sec. 7092. Jurisdiction over interstate sales. 
Sec. 7093. Consumer privacy.
Sec. 7094. Unfair trade practices. 
Subtitle I—Merger Review Reform and Accountability 
Sec. 7101. Merger review reform and accountability. 
Subtitle J—Study of Economic Dispatch 
Sec. 7111. Study on the benefits of economic dispatch. 
TITLE VIII—COAL 
Sec. 8001. Authorization of appropriations. 
Sec. 8002. Project criteria. 
Sec. 8003. Report. 
Sec. 8004. Clean coal centers of excellence. 
TITLE IX—MOTOR FUELS 
Subtitle A—General Provisions 
Sec. 9101. Renewable content of motor vehicle fuel. 
Sec. 9102. Fuels safe harbor. 
Sec. 9103. Findings and MTBE transition assistance. 
Sec. 9104. Elimination of oxygen content requirement for reformulated gaso-
line. 
Sec. 9105. Analyses of motor vehicle fuel changes. 
Sec. 9106. Data collection. 
Sec. 9107. Fuel system requirements harmonization study. 
Subtitle B—MTBE Cleanup 
Sec. 9201. Funding for MTBE contamination. 
TITLE X—AUTOMOBILE EFFICIENCY 
Sec. 10001. Authorization of appropriations for implementation and enforce-
ment of fuel economy standards. 
Sec. 10002. Study of feasibility and effects of reducing use of fuel for auto-
mobiles. 
TITLE XI—PREVENTING THE MISUSE OF NUCLEAR MATERIALS 
AND TECHNOLOGY 
Sec. 11001. Preventing the misuse of nuclear materials and technology. 
TITLE XII—ADDITIONAL PROVISIONS 
Sec. 12001. Transmission technologies.
TITLE I—ENERGY 
CONSERVATION 
Subtitle A—Federal Leadership in 
Energy Conservation 
SEC. 1001. ENERGY AND WATER SAVING MEASURES IN CON-
GRESSIONAL BUILDINGS. 
(a) IN GENERAL.—Part 3 of title V of the National 
Energy Conservation Policy Act is amended by adding at 
the end: 
‘‘SEC. 552. ENERGY AND WATER SAVINGS MEASURES IN 
CONGRESSIONAL BUILDINGS. 
‘‘(a) IN GENERAL.—The Architect of the Capitol— 
‘‘(1) shall develop, update, and implement a 
cost-effective energy conservation and management 
plan (referred to in this section as the ‘plan’) for all 
facilities administered by the Congress (referred to 
in this section as ‘congressional buildings’) to meet 
the energy performance requirements for Federal 
buildings established under section 543(a)(1); and 
‘‘(2) shall submit the plan to Congress, not 
later than 180 days after the date of enactment of 
this section. 
‘‘(b) PLAN REQUIREMENTS.—The plan shall in-
clude—
‘‘(1) a description of the life cycle cost analysis 
used to determine the cost-effectiveness of proposed 
energy efficiency projects; 
‘‘(2) a schedule of energy surveys to ensure 
complete surveys of all congressional buildings every 
5 years to determine the cost and payback period of 
energy and water conservation measures; 
‘‘(3) a strategy for installation of life cycle cost-
effective energy and water conservation measures; 
‘‘(4) the results of a study of the costs and ben-
efits of installation of submetering in congressional 
buildings; and 
‘‘(5) information packages and ‘how-to’ guides 
for each Member and employing authority of Con-
gress that detail simple, cost-effective methods to 
save energy and taxpayer dollars in the workplace. 
‘‘(c) ANNUAL REPORT.—The Architect shall submit 
to Congress annually a report on congressional energy 
management and conservation programs required under 
this section that describes in detail— 
‘‘(1) energy expenditures and savings estimates 
for each facility; 
‘‘(2) energy management and conservation 
projects; and
‘‘(3) future priorities to ensure compliance with 
this section.’’. 
(b) TABLE OF CONTENTS AMENDMENT.—The table 
of contents of the National Energy Conservation Policy 
Act is amended by adding at the end of the items relating 
to part 3 of title V the following new item:
‘‘Sec. 552. Energy and water savings measures in congressional buildings.’’.
(c) REPEAL.—Section 310 of the Legislative Branch 
Appropriations Act, 1999 (40 U.S.C. 166i), is repealed. 
(d) ENERGY INFRASTRUCTURE.—The Architect of 
the Capitol, building on the Master Plan Study completed 
in July 2000, shall commission a study to evaluate the 
energy infrastructure of the Capital Complex to determine 
how the infrastructure could be augmented to become 
more energy efficient, using unconventional and renewable 
energy resources, in a way that would enable the Complex 
to have reliable utility service in the event of power fluc-
tuations, shortages, or outages. 
(e) AUTHORIZATION.—There are authorized to be ap-
propriated to the Architect of the Capitol to carry out sub-
section (d), not more than $2,000,000 for fiscal years 
after the enactment of this Act. 
SEC. 1002. ENERGY MANAGEMENT REQUIREMENTS. 
(a) ENERGY REDUCTION GOALS.—
(1) AMENDMENT.—Section 543(a)(1) of the 
National Energy Conservation Policy Act (42 U.S.C.
8253(a)(1)) is amended by striking ‘‘its Federal 
buildings so that’’ and all that follows through the 
end and inserting ‘‘the Federal buildings of the 
agency (including each industrial or laboratory facil-
ity) so that the energy consumption per gross square 
foot of the Federal buildings of the agency in fiscal 
years 2004 through 2013 is reduced, as compared 
with the energy consumption per gross square foot 
of the Federal buildings of the agency in fiscal year 
2001, by the percentage specified in the following 
table:
‘‘Fiscal Year 
Percentage reduction 
2004 .....................................................................................
2005 .....................................................................................
2006 .....................................................................................
2007 .....................................................................................
2008 .....................................................................................
2009 .....................................................................................
2010 .....................................................................................
2011 .....................................................................................
2012 .....................................................................................
2013 .....................................................................................
20.’’.
(2) REPORTING BASELINE.—The energy reduc-
tion goals and baseline established in paragraph (1) 
of section 543(a) of the National Energy Conserva-
tion Policy Act, as amended by paragraph (1) of this 
subsection, supersede all previous goals and base-
lines under such paragraph, and related reporting 
requirements. 
(b) REVIEW AND REVISION OF ENERGY PERFORM-
ANCE REQUIREMENT.—Section 543(a) of the National
Energy Conservation Policy Act (42 U.S.C. 8253(a)) is 
further amended by adding at the end the following: 
‘‘(3) Not later than December 31, 2012, the Sec-
retary shall review the results of the implementation of 
the energy performance requirement established under 
paragraph (1) and submit to Congress recommendations 
concerning energy performance requirements for fiscal 
years 2014 through 2023.’’. 
(c) EXCLUSIONS.—Section 543(c)(1) of the National 
Energy Conservation Policy Act (42 U.S.C. 8253(c)(1)) 
is amended by striking ‘‘An agency may exclude’’ and all 
that follows through the end and inserting ‘‘(A) An agency 
may exclude, from the energy performance requirement 
for a fiscal year established under subsection (a) and the 
energy management requirement established under sub-
section (b), any Federal building or collection of Federal 
buildings, if the head of the agency finds that—
‘‘(i) compliance with those requirements would 
be impracticable; 
‘‘(ii) the agency has completed and submitted 
all federally required energy management reports; 
‘‘(iii) the agency has achieved compliance with 
the energy efficiency requirements of this Act, the 
Energy Policy Act of 1992, Executive Orders, and 
other Federal law; and
‘‘(iv) the agency has implemented all prac-
ticable, life cycle cost-effective projects with respect 
to the Federal building or collection of Federal 
buildings to be excluded. 
‘‘(B) A finding of impracticability under subpara-
graph (A)(i) shall be based on— 
‘‘(i) the energy intensiveness of activities car-
ried out in the Federal building or collection of Fed-
eral buildings; or 
‘‘(ii) the fact that the Federal building or col-
lection of Federal buildings is used in the perform-
ance of a national security function.’’. 
(d) REVIEW BY SECRETARY.—Section 543(c)(2) of 
the National Energy Conservation Policy Act (42 U.S.C. 
8253(c)(2)) is amended— 
(1) by striking ‘‘impracticability standards’’ and 
inserting ‘‘standards for exclusion’’; and 
(2) by striking ‘‘a finding of impracticability’’ 
and inserting ‘‘the exclusion’’. 
(e) CRITERIA.—Section 543(c) of the National En-
ergy Conservation Policy Act (42 U.S.C. 8253(c)) is fur-
ther amended by adding at the end the following: 
‘‘(3) Not later than 180 days after the date of enact-
ment of this paragraph, the Secretary shall issue guide-
lines that establish criteria for exclusions under paragraph 
(1).’’. 
(f) RETENTION OF ENERGY SAVINGS.—Section 546 
of the National Energy Conservation Policy Act (42 
U.S.C. 8256) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(e) RETENTION OF ENERGY SAVINGS.—An agency 
may retain any funds appropriated to that agency for en-
ergy expenditures, at buildings subject to the requirements 
of section 543(a) and (b), that are not made because of 
energy savings. Except as otherwise provided by law, such 
funds may be used only for energy efficiency or unconven-
tional and renewable energy resources projects.’’. 
(g) REPORTS.—Section 548(b) of the National En-
ergy Conservation Policy Act (42 U.S.C. 8258(b)) is 
amended—
(1) in the subsection heading, by inserting 
‘‘THE PRESIDENT AND’’ before ‘‘CONGRESS’’; and 
(2) by inserting ‘‘President and’’ before ‘‘Con-
gress’’. 
(h) CONFORMING AMENDMENT.—Section 550(d) of 
the National Energy Conservation Policy Act (42 U.S.C. 
8258b(d)) is amended in the second sentence by striking 
‘‘the 20 percent reduction goal established under section 
543(a) of the National Energy Conservation Policy Act
(42 U.S.C. 8253(a)).’’ and inserting ‘‘each of the energy 
reduction goals established under section 543(a).’’. 
SEC. 1003. ENERGY USE MEASUREMENT AND ACCOUNT-
ABILITY. 
Section 543 of the National Energy Conservation 
Policy Act (42 U.S.C. 8253) is further amended by adding 
at the end the following: 
‘‘(e) METERING OF ENERGY USE.—
‘‘(1) DEADLINE.—By October 1, 2010, in ac-
cordance with guidelines established by the Sec-
retary under paragraph (2), all Federal buildings 
shall, for the purposes of efficient use of energy and 
reduction in the cost of electricity used in such 
buildings, be metered or submetered. Each agency 
shall use, to the maximum extent practicable, ad-
vanced meters or advanced metering devices that 
provide data at least daily and that measure at least 
hourly consumption of electricity in the Federal 
buildings of the agency. Such data shall be incor-
porated into existing Federal energy tracking sys-
tems and made available to Federal facility energy 
managers. 
‘‘(2) GUIDELINES.—
‘‘(A) IN
GENERAL.—Not later than 180 
days after the date of enactment of this sub-
section, the Secretary, in consultation with the 
Department of Defense, the General Services 
Administration, representatives from the meter-
ing industry, utility industry, energy services in-
dustry, energy efficiency industry, national lab-
oratories, universities, and Federal facility en-
ergy managers, shall establish guidelines for 
agencies to carry out paragraph (1). 
‘‘(B) REQUIREMENTS FOR GUIDELINES.—
The guidelines shall—
‘‘(i) take into consideration—
‘‘(I) the cost of metering and 
submetering and the reduced cost of 
operation and maintenance expected 
to result from metering and sub-
metering; 
‘‘(II) the extent to which meter-
ing and submetering are expected to 
result in increased potential for en-
ergy management, increased potential 
for energy savings and energy effi-
ciency improvement, and cost and en-
ergy savings due to utility contract 
aggregation; and
‘‘(III) 
the 
measurement 
and 
verification protocols of the Depart-
ment of Energy; 
‘‘(ii) include recommendations con-
cerning the amount of funds and the num-
ber of trained personnel necessary to gath-
er and use the metering information to 
track and reduce energy use; 
‘‘(iii) establish priorities for types and 
locations of buildings to be metered and 
submetered based on cost-effectiveness and 
a schedule of one or more dates, not later 
than 1 year after the date of issuance of 
the guidelines, on which the requirements 
specified in paragraph (1) shall take effect; 
and 
‘‘(iv) establish exclusions from the re-
quirements specified in paragraph (1) 
based on the de minimis quantity of energy 
use of a Federal building, industrial proc-
ess, or structure. 
‘‘(3) PLAN.—No later than 6 months after the 
date guidelines are established under paragraph (2), 
in a report submitted by the agency under section 
548(a), each agency shall submit to the Secretary a
plan describing how the agency will implement the 
requirements of paragraph (1), including (A) how 
the agency will designate personnel primarily respon-
sible for achieving the requirements and (B) dem-
onstration by the agency, complete with documenta-
tion, of any finding that advanced meters or ad-
vanced metering devices, as defined in paragraph 
(1), are not practicable.’’.
SEC. 1004. FEDERAL BUILDING PERFORMANCE STAND-
ARDS. 
Section 305(a) of the Energy Conservation and Pro-
duction Act (42 U.S.C. 6834(a)) is amended— 
(1) in paragraph (2)(A), by striking ‘‘CABO 
Model Energy Code, 1992’’ and inserting ‘‘the 2000 
International Energy Conservation Code’’; and 
(2) by adding at the end the following: 
‘‘(3) REVISED FEDERAL BUILDING ENERGY EFFI-
CIENCY PERFORMANCE STANDARDS.—
‘‘(A) IN GENERAL.—Not later than 1 year after 
the date of enactment of this paragraph, the Sec-
retary of Energy shall establish, by rule, revised 
Federal building energy efficiency performance 
standards that require that, if cost-effective, for new 
Federal buildings—
‘‘(i) such buildings be designed so as to 
achieve energy consumption levels at least 30 
percent below those of the most recent 
ASHRAE Standard 90.1 or the most recent 
version of the International Energy Conserva-
tion Code, as appropriate; and 
‘‘(ii) sustainable design principles are ap-
plied to the siting, design, and construction of 
all new and replacement buildings. 
‘‘(B) ADDITIONAL REVISIONS.—Not later than 
1 year after the date of approval of amendments to 
ASHRAE Standard 90.1 or the 2000 International 
Energy Conservation Code, the Secretary of Energy 
shall determine, based on the cost-effectiveness of 
the requirements under the amendments, whether 
the revised standards established under this para-
graph should be updated to reflect the amendments. 
‘‘(C) STATEMENT
ON
COMPLIANCE
OF
NEW 
BUILDINGS.—In the budget request of the Federal 
agency for each fiscal year and each report sub-
mitted by the Federal agency under section 548(a) 
of the National Energy Conservation Policy Act (42 
U.S.C. 8258(a)), the head of each Federal agency 
shall include—
‘‘(i) a list of all new Federal buildings 
owned, operated, or controlled by the Federal 
agency; and 
‘‘(ii) a statement concerning whether the 
Federal buildings meet or exceed the revised 
standards established under this paragraph.’’.
SEC. 1005. PROCUREMENT OF ENERGY EFFICIENT PROD-
UCTS. 
(a) REQUIREMENTS.—Part 3 of title V of the Na-
tional Energy Conservation Policy Act is amended by add-
ing at the end the following: 
‘‘SEC. 553. FEDERAL PROCUREMENT OF ENERGY EFFI-
CIENT PRODUCTS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ENERGY STAR PRODUCT.—The term ‘En-
ergy Star product’ means a product that is rated for 
energy efficiency under an Energy Star program. 
‘‘(2) ENERGY STAR PROGRAM.—The term ‘En-
ergy Star program’ means the program established 
by section 324A of the Energy Policy and Conserva-
tion Act. 
‘‘(3) EXECUTIVE AGENCY.—The term ‘executive 
agency’ has the meaning given the term in section 
4 of the Office of Federal Procurement Policy Act 
(41 U.S.C. 403).
‘‘(4) FEMP DESIGNATED PRODUCT.—The term 
‘FEMP designated product’ means a product that is 
designated under the Federal Energy Management 
Program of the Department of Energy as being 
among the highest 25 percent of equivalent products 
for energy efficiency. 
‘‘(b) PROCUREMENT OF ENERGY EFFICIENT PROD-
UCTS.— 
‘‘(1) REQUIREMENT.—To meet the require-
ments of an executive agency for an energy con-
suming product, the head of the executive agency 
shall, except as provided in paragraph (2), procure—
‘‘(A) an Energy Star product; or 
‘‘(B) a FEMP designated product. 
‘‘(2) EXCEPTIONS.—The head of an executive 
agency is not required to procure an Energy Star 
product or FEMP designated product under para-
graph (1) if the head of the executive agency finds 
in writing that— 
‘‘(A) an Energy Star product or FEMP 
designated product is not cost-effective over the 
life of the product taking energy cost savings 
into account; or 
‘‘(B) no Energy Star product or FEMP 
designated product is reasonably available that
meets the functional requirements of the execu-
tive agency. 
‘‘(3) PROCUREMENT PLANNING.—The head of 
an executive agency shall incorporate into the speci-
fications for all procurements involving energy con-
suming products and systems, including guide speci-
fications, project specifications, and construction, 
renovation, and services contracts that include provi-
sion of energy consuming products and systems, and 
into the factors for the evaluation of offers received 
for the procurement, criteria for energy efficiency 
that are consistent with the criteria used for rating 
Energy Star products and for rating FEMP des-
ignated products. 
‘‘(c) LISTING OF ENERGY EFFICIENT PRODUCTS IN 
FEDERAL CATALOGS.—Energy Star products and FEMP 
designated products shall be clearly identified and promi-
nently displayed in any inventory or listing of products 
by the General Services Administration or the Defense Lo-
gistics Agency. The General Services Administration or 
the Defense Logistics Agency shall supply only Energy 
Star products or FEMP designated products for all prod-
uct categories covered by the Energy Star program or the 
Federal Energy Management Program, except in cases 
where the agency ordering a product specifies in writing
that no Energy Star product or FEMP designated product 
is available to meet the buyer’s functional requirements, 
or that no Energy Star product or FEMP designated 
product is cost-effective for the intended application over 
the life of the product, taking energy cost savings into ac-
count. 
‘‘(d) DESIGNATION OF ELECTRIC MOTORS.—In the 
case of electric motors of 1 to 500 horsepower, agencies 
shall select only premium efficient motors that meet a 
standard designated by the Secretary. The Secretary shall 
designate such a standard within 120 days after the date 
of the enactment of this section, after considering the rec-
ommendations of associated electric motor manufacturers 
and energy efficiency groups. 
‘‘(e) REGULATIONS.—Not later than 180 days after 
the date of the enactment of this section, the Secretary 
shall issue guidelines to carry out this section.’’. 
(b) CONFORMING AMENDMENT.—The table of con-
tents in section 1(b) of the National Energy Conservation 
Policy Act (42 U.S.C. 8201 note), as amended by section 
1001(b) of this Act, is further amended by inserting after 
the item relating to section 552 the following:
‘‘Sec. 553. Federal procurement of energy efficient products.’’.
SEC. 1006. ENERGY SAVINGS PERFORMANCE CONTRACTS. 
(a) PERMANENT EXTENSION.—Section 801(c) of the 
National Energy Conservation Policy Act (42 U.S.C. 
8287(c)) is repealed. 
(b) REPLACEMENT FACILITIES.—Section 801(a) of 
the National Energy Conservation Policy Act (42 U.S.C. 
8287(a)) is amended by adding at the end the following 
new paragraph: 
‘‘(3)(A) In the case of an energy savings con-
tract or energy savings performance contract pro-
viding for energy savings through the construction 
and operation of one or more buildings or facilities 
to replace one or more existing buildings or facilities, 
benefits ancillary to the purpose of such contract 
under paragraph (1) may include savings resulting 
from reduced costs of operation and maintenance at 
such replacement buildings or facilities when com-
pared with costs of operation and maintenance at 
the buildings or facilities being replaced, established 
through a methodology set forth in the contract. 
‘‘(B) Notwithstanding paragraph (2)(B), aggre-
gate annual payments by an agency under an energy 
savings contract or energy savings performance con-
tract referred to in subparagraph (A) may take into 
account (through the procedures developed pursuant 
to this section) savings resulting from reduced costs
of operation and maintenance as described in that 
subparagraph.’’. 
(c) ENERGY SAVINGS.—Section 804(2) of the Na-
tional Energy Conservation Policy Act (42 U.S.C. 
8287c(2)) is amended to read as follows: 
‘‘(2) The term ‘energy savings’ means—
‘‘(A) a reduction in the cost of energy or 
water, from a base cost established through a 
methodology set forth in the contract, used in 
an existing federally owned building or build-
ings or other federally owned facilities as a re-
sult of—
‘‘(i) the lease or purchase of operating 
equipment, improvements, altered oper-
ation and maintenance, or technical serv-
ices; 
‘‘‘(ii) the increased efficient use of ex-
isting energy sources by cogeneration or 
heat recovery, excluding any cogeneration 
process for other than a federally owned 
building or buildings or other federally 
owned facilities; or 
‘‘(iii) the increased efficient use of ex-
isting water sources; or
‘‘(B) in the case of a replacement building 
or facility described in section 801(a)(3), a re-
duction in the cost of energy, from a base cost 
established through a methodology set forth in 
the contract, that would otherwise be utilized in 
one or more existing federally owned buildings 
or other federally owned facilities by reason of 
the construction and operation of the replace-
ment building or facility.’’. 
(d) ENERGY SAVINGS CONTRACT.—Section 804(3) of 
the National Energy Conservation Policy Act (42 U.S.C. 
8287c(3)) is amended to read as follows: 
‘‘(3) The terms ‘energy savings contract’ and 
‘energy savings performance contract’ mean a con-
tract which provides for—
‘‘(A) the performance of services for the 
design, acquisition, installation, testing, oper-
ation, and, where appropriate, maintenance and 
repair, of an identified energy or water con-
servation measure or series of measures at one 
or more locations; or 
‘‘(B) energy savings through the construc-
tion and operation of one or more buildings or 
facilities to replace one or more existing build-
ings or facilities.
Such contracts shall, with respect to an agency facil-
ity that is a public building as such term is defined 
in section 13(1) of the Public Buildings Act of 1959 
(40 U.S.C. 612(1)), be in compliance with the pro-
spectus requirements and procedures of section 7 of 
the Public Buildings Act of 1959 (40 U.S.C. 606).’’. 
(e) ENERGY OR WATER CONSERVATION MEASURE.—
Section 804(4) of the National Energy Conservation Pol-
icy Act (42 U.S.C. 8287c(4)) is amended to read as fol-
lows: 
‘‘(4) The term ‘energy or water conservation 
measure’ means—
‘‘(A) an energy conservation measure, as 
defined in section 551(4) (42 U.S.C. 8259(4)); 
or 
‘‘(B) a water conservation measure that 
improves water efficiency, is life cycle cost-effec-
tive, and involves water conservation, water re-
cycling or reuse, more efficient treatment of 
wastewater or stormwater, improvements in op-
eration or maintenance efficiencies, retrofit ac-
tivities, or other related activities, not at a Fed-
eral hydroelectric facility.’’. 
(f) REVIEW.—Within 180 days after the date of the 
enactment of this section, the Secretary of Energy shall
complete a review of the Energy Savings Performance 
Contract program to identify statutory, regulatory, and 
administrative obstacles that prevent Federal agencies 
from fully utilizing the program. In addition, this review 
shall identify all areas for increasing program flexibility 
and effectiveness, including audit and measurement 
verification requirements, accounting for energy use in de-
termining savings, contracting requirements, and energy 
efficiency services covered. The Secretary shall report 
these findings to the Committee on Energy and Commerce 
of the House of Representatives and the Committee on 
Energy and Natural Resources of the Senate, and shall 
implement 
identified 
administrative 
and 
regulatory 
changes to increase program flexibility and effectiveness 
to the extent that such changes are consistent with statu-
tory authority.
SEC. 1007. VOLUNTARY COMMITMENTS TO REDUCE INDUS-
TRIAL ENERGY INTENSITY. 
(a) VOLUNTARY AGREEMENTS.—The Secretary of 
Energy shall enter into voluntary agreements with one or 
more persons in industrial sectors that consume signifi-
cant amounts of primary energy per unit of physical out-
put to reduce the energy intensity of their production ac-
tivities.
(b) GOAL.—Voluntary agreements under this section 
shall have a goal of reducing energy intensity by not less 
than 2.5 percent each year from 2004 through 2014. 
(c) RECOGNITION.—The Secretary of Energy, in co-
operation with the Administrator of the Environmental 
Protection Agency and other appropriate Federal agen-
cies, shall develop mechanisms to recognize and publicize 
the achievements of participants in voluntary agreements 
under this section. 
(d) DEFINITION.—In this section, the term ‘‘energy 
intensity’’ means the primary energy consumed per unit 
of physical output in an industrial process. 
(e) TECHNICAL ASSISTANCE.—An entity that enters 
into an agreement under this section and continues to 
make a good faith effort to achieve the energy efficiency 
goals specified in the agreement shall be eligible to receive 
from the Secretary a grant or technical assistance as ap-
propriate to assist in the achievement of those goals. 
(f) REPORT.—Not later than June 30, 2010 and 
June 30, 2014, the Secretary shall submit to Congress a 
report that evaluates the success of the voluntary agree-
ments, with independent verification of a sample of the 
energy savings estimates provided by participating firms.
SEC. 1008. FEDERAL AGENCY PARTICIPATION IN DEMAND 
REDUCTION PROGRAMS. 
Section 546(c) of the National Energy Conservation 
Policy Act (42 U.S.C. 8256(c)) is amended by adding at 
the end of the following new paragraph: 
‘‘(6) Federal agencies are encouraged to participate 
in State or regional demand side reduction programs. The 
availability of such programs, including measures employ-
ing onsite generation, and the savings resulting from such 
participation, should be included in the evaluation of en-
ergy options for Federal facilities.’’. 
SEC. 1009. ADVANCED BUILDING EFFICIENCY TESTBED. 
(a) ESTABLISHMENT.—The Secretary of Energy, in 
consultation with the Administrator of the General Serv-
ices Administration, shall establish an Advanced Building 
Efficiency Testbed program for the development, testing, 
and demonstration of advanced engineering systems, com-
ponents, and materials to enable innovations in building 
technologies. The program shall evaluate efficiency con-
cepts for government and industry buildings, and dem-
onstrate the ability of next generation buildings to support 
individual and organizational productivity and health as 
well as flexibility and technological change to improve en-
vironmental sustainability. Such program shall com-
plement and not duplicate existing national programs.
(b) PARTICIPANTS.—The program established under 
subsection (a) shall be led by a university with the ability 
to combine the expertise from numerous academic fields 
including, at a minimum, intelligent workplaces and ad-
vanced building systems and engineering, electrical and 
computer engineering, computer science, architecture, 
urban design, and environmental and mechanical engi-
neering. Such university shall partner with other univer-
sities and entities who have established programs and the 
capability of advancing innovative building efficiency tech-
nologies. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy to carry out this section $6,000,000 for each of the 
fiscal years 2004 through 2006, to remain available until 
expended. For any fiscal year in which funds are expended 
under this section, the Secretary shall provide one-third 
of the total amount to the lead university described in sub-
section (b), and provide the remaining two-thirds to the 
other participants referred to in subsection (b) on an equal 
basis.
SEC. 1010. INCREASED USE OF RECOVERED MINERAL COM-
PONENT IN FEDERALLY FUNDED PROJECTS 
INVOLVING PROCUREMENT OF CEMENT OR 
CONCRETE. 
(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 new section: 
‘‘INCREASED USE OF RECOVERED MINERAL COMPONENT 
IN FEDERALLY FUNDED PROJECTS INVOLVING PRO-
CUREMENT OF CEMENT OR CONCRETE 
‘‘SEC. 6005. (a) DEFINITIONS.—In this section: 
‘‘(1) AGENCY HEAD.—The term ‘agency head’ 
means—
‘‘(A) the Secretary of Transportation; and 
‘‘(B) the head of each other Federal agen-
cy that on a regular basis procures, or provides 
Federal funds to pay or assist in paying the 
cost of procuring, material for cement or con-
crete projects. 
‘‘(2) CEMENT
OR
CONCRETE
PROJECT.—The 
term ‘cement or concrete project’ means a project 
for the construction or maintenance of a highway or 
other transportation facility or a Federal, State, or 
local government building or other public facility 
that—
‘‘(A) involves the procurement of cement 
or concrete; and 
‘‘(B) is carried out in whole or in part 
using Federal funds. 
‘‘(3) RECOVERED MINERAL COMPONENT.—The 
term ‘recovered mineral component’ means—
‘‘(A) ground granulated blast furnace slag; 
‘‘(B) coal combustion fly ash; and 
‘‘(C) any other waste material or byprod-
uct recovered or diverted from solid waste that 
the Administrator, in consultation with an 
agency head, determines should be treated as 
recovered mineral component under this section 
for use in cement or concrete projects paid for, 
in whole or in part, by the agency head. 
‘‘(b) IMPLEMENTATION OF REQUIREMENTS.—
‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this section, the Adminis-
trator and each agency head shall take such actions 
as are necessary to implement fully all procurement 
requirements and incentives in effect as of the date 
of enactment of this section (including guidelines 
under section 6002) that provide for the use of ce-
ment and concrete incorporating recovered mineral 
component in cement or concrete projects.
‘‘(2) PRIORITY.—In carrying out paragraph (1) 
an agency head shall give priority to achieving great-
er use of recovered mineral component in cement or 
concrete projects for which recovered mineral compo-
nents historically have not been used or have been 
used only minimally. 
‘‘(3) CONFORMANCE.—The Administrator and 
each agency head shall carry out this subsection in 
accordance with section 6002. 
‘‘(c) FULL IMPLEMENTATION STUDY.—
‘‘(1) IN GENERAL.—The Administrator, in co-
operation with the Secretary of Transportation and 
the Secretary of Energy, shall conduct a study to de-
termine the extent to which current procurement re-
quirements, when fully implemented in accordance 
with subsection (b), may realize energy savings and 
environmental benefits attainable with substitution 
of recovered mineral component in cement used in 
cement or concrete projects. 
‘‘(2) MATTERS TO BE ADDRESSED.—The study 
shall—
‘‘(A) quantify the extent to which recov-
ered mineral components are being substituted 
for Portland cement, particularly as a result of 
current procurement requirements, and the en-
ergy savings and environmental benefits associ-
ated with that substitution; 
‘‘(B) identify all barriers in procurement 
requirements to fuller realization of energy sav-
ings and environmental benefits, including bar-
riers resulting from exceptions from current 
law; and 
‘‘(C)(i) identify potential mechanisms to 
achieve greater substitution of recovered min-
eral component in types of cement or concrete 
projects for which recovered mineral compo-
nents historically have not been used or have 
been used only minimally; 
‘‘(ii) evaluate the feasibility of establishing 
guidelines or standards for optimized substi-
tution rates of recovered mineral component in 
those cement or concrete projects; and 
‘‘(iii) identify any potential environmental 
or economic effects that may result from great-
er substitution of recovered mineral component 
in those cement or concrete projects. 
‘‘(3) REPORT.—Not later than 30 months after 
the date of enactment of this section, the Adminis-
trator shall submit to the Committee on Appropria-
tions and Committee on Environment and Public
Works of the Senate and the Committee on Appro-
priations, Committee on Energy and Commerce, and 
Committee on Transportation and Infrastructure of 
the House of Representatives a report on the study. 
‘‘(d) ADDITIONAL PROCUREMENT REQUIREMENTS.—
Unless the study conducted under subsection (c) identifies 
any effects or other problems described in subsection 
(c)(2)(C)(iii) that warrant further review or delay, the Ad-
ministrator and each agency head shall, within 1 year of 
the release of the report in accordance with subsection 
(c)(3), take additional actions authorized under this Act 
to establish procurement requirements and incentives that 
provide for the use of cement and concrete with increased 
substitution of recovered mineral component in the con-
struction and maintenance of cement or concrete projects, 
so as to—
‘‘(1) realize more fully the energy savings and 
environmental benefits associated with increased 
substitution; and 
‘‘(2) eliminate barriers identified under sub-
section (c). 
‘‘(e) EFFECT OF SECTION.—Nothing in this section 
affects the requirements of section 6002 (including the 
guidelines and specifications for implementing those re-
quirements).’’.
(b) TABLE OF CONTENTS AMENDMENT.—The table 
of contents of the Solid Waste Disposal Act is amended 
by adding after the item relating to section 6004 the fol-
lowing new item:
‘‘Sec. 6005. Increased use of recovered mineral component in federally funded 
projects involving procurement of cement or concrete.’’.
Subtitle B—Energy Assistance and 
State Programs 
SEC. 1021. LIHEAP AND WEATHERIZATION ASSISTANCE. 
(a) LOW-INCOME HOME ENERGY ASSISTANCE PRO-
GRAM.—Section 2602(b) of the Low-Income Home Energy 
Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended 
by striking ‘‘each of fiscal years 2002 through 2004’’ and 
inserting ‘‘each of fiscal years 2002 and 2003, and 
$3,400,000,000 for each of fiscal years 2004 through 
2006’’. 
(b) WEATHERIZATION.—Section 422 of the Energy 
Conservation and Production Act (42 U.S.C. 6872) is 
amended by striking ‘‘for fiscal years 1999 through 2003 
such sums as may be necessary’’ and inserting 
‘‘$325,000,000 for fiscal year 2004, $400,000,000 for fis-
cal year 2005, and $500,000,000 for fiscal year 2006’’. 
(c) REPORT TO CONGRESS.—Not later than 1 year 
after the date of enactment of this Act, the Secretary of 
Health and Human Services shall transmit to the Con-
gress a report on how the Low-Income Home Energy As-
sistance Program could be used more effectively to prevent 
loss of life from extreme temperatures. In preparing such 
report, the Secretary shall consult with appropriate offi-
cials in all 50 States and the District of Columbia. 
SEC. 1022. STATE ENERGY PROGRAMS. 
(a) STATE ENERGY CONSERVATION PLANS.—Section 
362 of the Energy Policy and Conservation Act (42 U.S.C. 
6322) is amended by inserting at the end the following 
new subsection: 
‘‘(g) The Secretary shall, at least once every 3 years, 
invite the Governor of each State to review and, if nec-
essary, revise the energy conservation plan of such State 
submitted under subsection (b) or (e). Such reviews should 
consider the energy conservation plans of other States 
within the region, and identify opportunities and actions 
carried out in pursuit of common energy conservation 
goals.’’. 
(b) STATE ENERGY EFFICIENCY GOALS.—Section 
364 of the Energy Policy and Conservation Act (42 U.S.C. 
6324) is amended to read as follows: 
‘‘STATE ENERGY EFFICIENCY GOALS 
‘‘SEC. 364. Each State energy conservation plan with 
respect to which assistance is made available under this 
part on or after the date of enactment of the Energy Pol-
icy Act of 2003 shall contain a goal, consisting of an im-
provement of 25 percent or more in the efficiency of use
of energy in the State concerned in calendar year 2010 
as compared to calendar year 1990, and may contain in-
terim goals.’’. 
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 
365(f) of the Energy Policy and Conservation Act (42 
U.S.C. 6325(f)) is amended by striking ‘‘for fiscal years 
1999 through 2003 such sums as may be necessary’’ and 
inserting ‘‘$100,000,000 for each of the fiscal years 2004 
and 2005 and $125,000,000 for fiscal year 2006’’.
SEC. 1023. ENERGY EFFICIENT APPLIANCE REBATE PRO-
GRAMS. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE
STATE.—The term ‘‘eligible 
State’’ means a State that meets the requirements 
of subsection (b). 
(2) ENERGY STAR PROGRAM.—The term ‘‘En-
ergy Star program’’ means the program established 
by section 324A of the Energy Policy and Conserva-
tion Act. 
(3) RESIDENTIAL
ENERGY
STAR
PRODUCT.—
The term ‘‘residential Energy Star product’’ means 
a product for a residence that is rated for energy ef-
ficiency under the Energy Star program. 
(4) STATE ENERGY OFFICE.—The term ‘‘State 
energy office’’ means the State agency responsible
for developing State energy conservation plans under 
section 362 of the Energy Policy and Conservation 
Act (42 U.S.C. 6322). 
(5) STATE PROGRAM.—The term ‘‘State pro-
gram’’ means a State energy efficient appliance re-
bate program described in subsection (b)(1). 
(b) ELIGIBLE STATES.—A State shall be eligible to 
receive an allocation under subsection (c) if the State—
(1) establishes (or has established) a State en-
ergy efficient appliance rebate program to provide 
rebates to residential consumers for the purchase of 
residential Energy Star products to replace used ap-
pliances of the same type; 
(2) submits an application for the allocation at 
such time, in such form, and containing such infor-
mation as the Secretary may require; and 
(3) provides assurances satisfactory to the Sec-
retary that the State will use the allocation to sup-
plement, but not supplant, funds made available to 
carry out the State program. 
(c) AMOUNT OF ALLOCATIONS.—
(1) IN GENERAL.—Subject to paragraph (2), 
for each fiscal year, the Secretary shall allocate to 
the State energy office of each eligible State to carry 
out subsection (d) an amount equal to the product
obtained by multiplying the amount made available 
under subsection (f) for the fiscal year by the ratio 
that the population of the State in the most recent 
calendar year for which data are available bears to 
the total population of all eligible States in that cal-
endar year. 
(2) MINIMUM ALLOCATIONS.—For each fiscal 
year, the amounts allocated under this subsection 
shall be adjusted proportionately so that no eligible 
State is allocated a sum that is less than an amount 
determined by the Secretary. 
(d) USE OF ALLOCATED FUNDS.—The allocation to 
a State energy office under subsection (c) may be used 
to pay up to 50 percent of the cost of establishing and 
carrying out a State program. 
(e) ISSUANCE OF REBATES.—Rebates may be pro-
vided to residential consumers that meet the requirements 
of the State program. The amount of a rebate shall be 
determined by the State energy office, taking into consid-
eration—
(1) the amount of the allocation to the State 
energy office under subsection (c); 
(2) the amount of any Federal or State tax in-
centive available for the purchase of the residential 
Energy Star product; and
(3) the difference between the cost of the resi-
dential Energy Star product and the cost of an ap-
pliance that is not a residential Energy Star prod-
uct, but is of the same type as, and is the nearest 
capacity, performance, and other relevant character-
istics (as determined by the State energy office) to 
the residential Energy Star product. 
(f) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$50,000,000 for each of the fiscal years 2004 through 
2008.
SEC. 1024. ENERGY EFFICIENT PUBLIC BUILDINGS. 
(a) GRANTS.—The Secretary of Energy may make 
grants to the State agency responsible for developing State 
energy conservation plans under section 362 of the Energy 
Policy and Conservation Act (42 U.S.C. 6322), or, if no 
such agency exists, a State agency designated by the Gov-
ernor of the State, to assist units of local government in 
the State in improving the energy efficiency of public 
buildings and facilities—
(1) through construction of new energy efficient 
public buildings that use at least 30 percent less en-
ergy than a comparable public building constructed 
in compliance with standards prescribed in chapter 
8 of the 2000 International Energy Conservation
Code, or a similar State code intended to achieve 
substantially equivalent efficiency levels; or 
(2) through renovation of existing public build-
ings to achieve reductions in energy use of at least 
30 percent as compared to the baseline energy use 
in such buildings prior to renovation, assuming a 3-
year, weather-normalized average for calculating 
such baseline. 
(b) ADMINISTRATION.—State energy offices receiving 
grants under this section shall—
(1) maintain such records and evidence of com-
pliance as the Secretary may require; and 
(2) develop and distribute information and ma-
terials and conduct programs to provide technical 
services and assistance to encourage planning, fi-
nancing, and design of energy efficient public build-
ings by units of local government. 
(c) AUTHORIZATION OF APPROPRIATIONS.—For the 
purposes of this section, there are authorized to be appro-
priated to the Secretary of Energy such sums as may be 
necessary for each of fiscal years 2004 through 2013. Not 
more than 30 percent of appropriated funds shall be used 
for administration.
SEC. 1025. LOW INCOME COMMUNITY ENERGY EFFICIENCY 
PILOT PROGRAM. 
(a) GRANTS.—The Secretary of Energy is authorized 
to make grants to units of local government, private, non-
profit community development organizations, and Indian 
tribe economic development entities to improve energy effi-
ciency, identify and develop alternative renewable and dis-
tributed energy supplies, and increase energy conservation 
in low income rural and urban communities. 
(b) PURPOSE OF GRANTS.—The Secretary may make 
grants on a competitive basis for—
(1) investments that develop alternative renew-
able and distributed energy supplies; 
(2) energy efficiency projects and energy con-
servation programs; 
(3) studies and other activities that improve en-
ergy efficiency in low income rural and urban com-
munities; 
(4) planning and development assistance for in-
creasing the energy efficiency of buildings and facili-
ties; and 
(5) technical and financial assistance to local 
government and private entities on developing new 
renewable and distributed sources of power or com-
bined heat and power generation.
(c) DEFINITION.—For purposes of this section, the 
term ‘‘Indian tribe’’ means any Indian tribe, band, nation, 
or other organized group or community, including any 
Alaskan Native village or regional or village corporation 
as defined in or established pursuant to the Alaska Native 
Claims Settlement Act (43 U.S.C. 1601 et seq.), which 
is recognized as eligible for the special programs and serv-
ices provided by the United States to Indians because of 
their status as Indians. 
(d) AUTHORIZATION OF APPROPRIATIONS.—For the 
purposes of this section there are authorized to be appro-
priated to the Secretary of Energy $20,000,000 for fiscal 
year 2004 and each fiscal year thereafter through fiscal 
year 2006. 
Subtitle C—Energy Efficient 
Products 
SEC. 1041. ENERGY STAR PROGRAM. 
(a) AMENDMENT.—The Energy Policy and Conserva-
tion Act (42 U.S.C. 6201 and following) is amended by 
inserting the following after section 324: 
‘‘SEC. 324A. ENERGY STAR PROGRAM. 
‘‘There is established at the Department of Energy 
and the Environmental Protection Agency a program to 
identify and promote energy-efficient products and build-
ings in order to reduce energy consumption, improve en-
ergy security, and reduce pollution through labeling of and 
other forms of communication about products and build-
ings that meet the highest energy efficiency standards. Re-
sponsibilities under the program shall be divided between 
the Department of Energy and the Environmental Protec-
tion Agency consistent with the terms of agreements be-
tween the two agencies. The Administrator and the Sec-
retary shall—
‘‘(1) promote Energy Star compliant tech-
nologies as the preferred technologies in the market-
place for achieving energy efficiency and to reduce 
pollution; 
‘‘(2) work to enhance public awareness of the 
Energy Star label, including special outreach to 
small businesses; 
‘‘(3) preserve the integrity of the Energy Star 
label; and 
‘‘(4) solicit the comments of interested parties 
in establishing a new Energy Star product category 
or in revising a product category, and upon adoption 
of a new or revised product category provide an ex-
planation of the decision that responds to significant 
public comments.’’. 
(b) TABLE OF CONTENTS AMENDMENT.—The table 
of contents of the Energy Policy and Conservation Act is
amended by inserting after the item relating to section 
324 the following new item:
‘‘Sec. 324A. Energy Star program.’’.
SEC. 1042. CONSUMER EDUCATION ON ENERGY EFFI-
CIENCY BENEFITS OF AIR CONDITIONING, 
HEATING, AND VENTILATION MAINTENANCE. 
Section 337 of the Energy Policy and Conservation 
Act (42 U.S.C. 6307) is amended by adding at the end 
the following: 
‘‘(c) HVAC MAINTENANCE.—(1) For the purpose of 
ensuring that installed air conditioning and heating sys-
tems operate at their maximum rated efficiency levels, the 
Secretary shall, within 180 days of the date of enactment 
of this subsection, carry out a program to educate home-
owners and small business owners concerning the energy 
savings resulting from properly conducted maintenance of 
air conditioning, heating, and ventilating systems. 
‘‘(2) The Secretary shall carry out the program in 
cooperation with the Administrator of the Environmental 
Protection Agency and such other entities as the Secretary 
considers appropriate, including industry trade associa-
tions, industry members, and energy efficiency organiza-
tions. 
‘‘(d) SMALL BUSINESS EDUCATION
AND ASSIST-
ANCE.—The Administrator of the Small Business Admin-
istration, in consultation with the Secretary of Energy and
the Administrator of the Environmental Protection Agen-
cy, shall develop and coordinate a Government-wide pro-
gram, building on the existing Energy Star for Small 
Business Program, to assist small business to become 
more energy efficient, understand the cost savings obtain-
able through efficiencies, and identify financing options 
for energy efficiency upgrades. The Secretary and the Ad-
ministrator shall make the program information available 
directly to small businesses and through other Federal 
agencies, including the Federal Emergency Management 
Agency, and the Department of Agriculture.’’.
SEC. 1043. ADDITIONAL DEFINITIONS. 
Section 321 of the Energy Policy and Conservation 
Act (42 U.S.C. 6291) is amended by adding at the end 
the following: 
‘‘(32) The term ‘battery charger’ means a de-
vice that charges batteries for consumer products. 
‘‘(33) The term ‘commercial refrigerator, freez-
er and refrigerator-freezer’ means a refrigerator, 
freezer or refrigerator-freezer that— 
‘‘(A) is not a consumer product regulated 
under this Act; and 
‘‘(B) incorporates most components in-
volved in the vapor-compression cycle and the 
refrigerated compartment in a single package.
‘‘(34) The term ‘external power supply’ means 
an external power supply circuit that is used to con-
vert household electric current into either DC cur-
rent or lower-voltage AC current to operate a con-
sumer product. 
‘‘(35) The term ‘illuminated exit sign’ means a 
sign that— 
‘‘(A) is designed to be permanently fixed in 
place to identify an exit; and 
‘‘(B) consists of— 
‘‘(i) an electrically powered integral 
light source that illuminates the legend 
‘EXIT’ and any directional indicators; and 
‘‘(ii) provides contrast between the 
legend, any directional indicators, and the 
background. 
‘‘(36)(A) Except as provided in subparagraph 
(B), the term ‘low-voltage dry-type transformer’ 
means a transformer that— 
‘‘(i) has an input voltage of 600 volts or 
less; 
‘‘(ii) is air-cooled; 
‘‘(iii) does not use oil as a coolant; and 
‘‘(iv) is rated for operation at a frequency 
of 60 Hertz.
‘‘(B) The term ‘low-voltage dry-type trans-
former’ does not include—
‘‘(i) transformers with multiple voltage 
taps, with the highest voltage tap equaling at 
least 20 percent more than the lowest voltage 
tap; 
‘‘(ii) transformers that are designed to be 
used in a special purpose application, such as 
transformers commonly known as drive trans-
formers, 
rectifier 
transformers, 
autotransformers, Uninterruptible Power Sys-
tem transformers, impedance transformers, har-
monic transformers, regulating transformers, 
sealed and nonventilating transformers, ma-
chine tool transformers, welding transformers, 
grounding transformers, or testing trans-
formers; or 
‘‘(iii) any transformer not listed in clause 
(ii) that is excluded by the Secretary by rule be-
cause the transformer is designed for a special 
application and the application of standards to 
the transformer would not result in significant 
energy savings. 
‘‘(37) The term ‘standby mode’ means the low-
est amount of electric power used by a household ap-
pliance when not performing its active functions, as 
defined on an individual product basis by the Sec-
retary. 
‘‘(38) The term ‘torchiere’ means a portable 
electric lamp with a reflector bowl that directs light 
upward so as to give indirect illumination. 
‘‘(39) The term ‘transformer’ means a device 
consisting of two or more coils of insulated wire that 
transfers alternating current by electromagnetic in-
duction from one coil to another to change the origi-
nal voltage or current value. 
‘‘(40) The term ‘unit heater’ means a self-con-
tained fan-type heater designed to be installed with-
in the heated space, except that such term does not 
include a warm air furnace. 
‘‘(41) The term ‘traffic signal module’ means a 
standard 8-inch (200mm) or 12-inch (300mm) traf-
fic signal indication, consisting of a light source, a 
lens, and all other parts necessary for operation, 
that communicates movement messages to drivers 
through red, amber, and green colors.’’.
SEC. 1044. ADDITIONAL TEST PROCEDURES. 
(a) EXIT SIGNS.—Section 323(b) of the Energy Pol-
icy and Conservation Act (42 U.S.C. 6293) is amended 
by adding at the end the following:
‘‘(9) Test procedures for illuminated exit signs 
shall be based on the test method used under 
Version 2.0 of the Energy Star program of the Envi-
ronmental Protection Agency for illuminated exit 
signs. 
‘‘(10) Test procedures for low voltage dry-type 
distribution transformers shall be based on the 
‘Standard Test Method for Measuring the Energy 
Consumption of Distribution Transformers’ pre-
scribed by the National Electrical Manufacturers As-
sociation (NEMA TP 2–1998). The Secretary may 
review and revise this test procedure based on future 
revisions to such standard test method. 
‘‘(11) Test procedures for traffic signal modules 
shall be based on the test method used under the 
Energy Star program of the Environmental Protec-
tion Agency for traffic signal modules, as in effect 
on the date of enactment of this paragraph.’’. 
(b) ADDITIONAL
CONSUMER
AND
COMMERCIAL 
PRODUCTS.—Section 323 of the Energy Policy and Con-
servation Act (42 U.S.C. 6293) is further amended by 
adding at the end the following: 
‘‘(f) ADDITIONAL
CONSUMER
AND
COMMERCIAL 
PRODUCTS.—The Secretary shall within 24 months after 
the date of enactment of this subsection prescribe testing
requirements for suspended ceiling fans, refrigerated bot-
tled or canned beverage vending machines, commercial 
unit heaters, and commercial refrigerators, freezers and 
refrigerator-freezers. Such testing requirements shall be 
based on existing test procedures used in industry to the 
extent practical and reasonable. In the case of suspended 
ceiling fans, such test procedures shall include efficiency 
at both maximum output and at an output no more than 
50 percent of the maximum output.’’. 
SEC. 1045. ENERGY CONSERVATION STANDARDS FOR ADDI-
TIONAL CONSUMER AND COMMERCIAL PROD-
UCTS. 
Section 325 of the Energy Policy and Conservation 
Act (42 U.S.C. 6295) is amended by adding at the end 
the following: 
‘‘(u) STANDBY MODE ELECTRIC ENERGY CONSUMP-
TION.—
‘‘(1) INITIAL RULEMAKING.—(A) The Secretary 
shall, within 18 months after the date of enactment 
of this subsection, prescribe by notice and comment, 
definitions of standby mode and test procedures for 
the standby mode power use of battery chargers and 
external power supplies. In establishing these test 
procedures, the Secretary shall consider, among 
other factors, existing test procedures used for meas-
uring energy consumption in standby mode and as-
sess the current and projected future market for 
battery chargers and external power supplies. This 
assessment shall include estimates of the significance 
of potential energy savings from technical improve-
ments to these products and suggested product 
classes for standards. Prior to the end of this time 
period, the Secretary shall hold a scoping workshop 
to discuss and receive comments on plans for devel-
oping energy conservation standards for standby 
mode energy use for these products. 
‘‘(B) The Secretary shall, within 3 years after 
the date of enactment of this subsection, issue a 
final rule that determines whether energy conserva-
tion standards shall be promulgated for battery 
chargers and external power supplies or classes 
thereof. For each product class, any such standards 
shall be set at the lowest level of standby energy use 
that— 
‘‘(i) meets the criteria of subsections (o), 
(p), (q), (r), (s) and (t); and 
‘‘(ii) will result in significant overall an-
nual energy savings, considering both standby 
mode and other operating modes.
‘‘(2) DESIGNATION OF ADDITIONAL COVERED 
PRODUCTS.—(A) Not later than 180 days after the 
date of enactment of this subsection, the Secretary 
shall publish for public comment and public hearing 
a notice to determine whether any noncovered prod-
ucts should be designated as covered products for 
the purpose of instituting a rulemaking under this 
section to determine whether an energy conservation 
standard restricting standby mode energy consump-
tion, should be promulgated; except that any restric-
tion on standby mode energy consumption shall be 
limited to major sources of such consumption. 
‘‘(B) In making the determinations pursuant to 
subparagraph (A) of whether to designate new cov-
ered products and institute rulemakings, the Sec-
retary shall, among other relevant factors and in ad-
dition to the criteria in section 322(b), consider— 
‘‘(i) standby mode power consumption 
compared to overall product energy consump-
tion; and 
‘‘(ii) the priority and energy savings poten-
tial of standards which may be promulgated 
under this subsection compared to other re-
quired rulemakings under this section and the
available resources of the Department to con-
duct such rulemakings. 
‘‘(C) Not later than 1 year after the date of en-
actment of this subsection, the Secretary shall issue 
a determination of any new covered products for 
which he intends to institute rulemakings on standby 
mode pursuant to this section and he shall state the 
dates by which he intends to initiate those 
rulemakings. 
‘‘(3) REVIEW
OF
STANDBY
ENERGY
USE
IN 
COVERED PRODUCTS.—In determining pursuant to 
section 323 whether test procedures and energy con-
servation standards pursuant to this section should 
be revised, the Secretary shall consider for covered 
products which are major sources of standby mode 
energy consumption whether to incorporate standby 
mode into such test procedures and energy conserva-
tion standards, taking into account, among other 
relevant factors, the criteria for non-covered prod-
ucts in subparagraph (B) of paragraph (2) of this 
subsection. 
‘‘(4) RULEMAKING FOR STANDBY MODE.—(A) 
Any rulemaking instituted under this subsection or
for covered products under this section which re-
stricts standby mode power consumption shall be
subject to the criteria and procedures for issuing en-
ergy conservation standards set forth in this section 
and the criteria set forth in subparagraph (B) of 
paragraph (2) of this subsection. 
‘‘(B) No standard can be proposed for new cov-
ered products or covered products in a standby mode 
unless the Secretary has promulgated applicable test 
procedures for each product pursuant to section 323. 
‘‘(C) The provisions of section 327 shall apply 
to new covered products which are subject to the 
rulemakings for standby mode after a final rule has 
been issued. 
‘‘(5) EFFECTIVE DATE.—Any standard promul-
gated under this subsection shall be applicable to 
products manufactured or imported 3 years after the 
date of promulgation. 
‘‘(6) 
VOLUNTARY
PROGRAMS
TO
REDUCE 
STANDBY MODE ENERGY USE.—The Secretary and 
the Administrator shall collaborate and develop pro-
grams, including programs pursuant to section 324A 
(relating to Energy Star Programs) and other vol-
untary industry agreements or codes of conduct, 
which are designed to reduce standby mode energy 
use.
‘‘(v) SUSPENDED CEILING FANS, VENDING MA-
CHINES, UNIT HEATERS, AND COMMERCIAL REFRIG-
ERATORS, FREEZERS AND REFRIGERATOR-FREEZERS.—
The Secretary shall within 24 months after the date on 
which testing requirements are prescribed by the Sec-
retary pursuant to section 323(f), prescribe, by rule, en-
ergy conservation standards for suspended ceiling fans, re-
frigerated bottled or canned beverage vending machines, 
unit heaters, and commercial refrigerators, freezers and 
refrigerator-freezers. In establishing standards under this 
subsection, the Secretary shall use the criteria and proce-
dures contained in subsections (l) and (m). Any standard 
prescribed under this subsection shall apply to products 
manufactured 3 years after the date of publication of a 
final rule establishing such standard. 
‘‘(w) ILLUMINATED EXIT SIGNS.—Illuminated exit 
signs manufactured on or after January 1, 2005 shall 
meet the Version 2.0 Energy Star Program performance 
requirements for illuminated exit signs prescribed by the 
Environmental Protection Agency 
‘‘(x) TORCHIERES.—Torchieres manufactured on or 
after January 1, 2005— 
‘‘(1) shall consume not more than 190 watts of 
power; and
‘‘(2) shall not be capable of operating with 
lamps that total more than 190 watts. 
‘‘(y) LOW VOLTAGE DRY-TYPE TRANSFORMERS.—
The efficiency of low voltage dry-type transformers manu-
factured on or after January 1, 2005 shall be the Class 
I Efficiency Levels for low voltage dry-type transformers 
specified in Table 4–2 of the ‘Guide for Determining En-
ergy Efficiency for Distribution Transformers’ published 
by the National Electrical Manufacturers Association 
(NEMA TP–1–1996). 
‘‘(z) TRAFFIC SIGNAL MODULES.—Traffic signal 
modules manufactured on or after January 1, 2006 shall 
meet the performance requirements used under the En-
ergy Star program of the Environmental Protection Agen-
cy for traffic signals, as in effect on the date of enactment 
of this paragraph, and shall be installed with compatible, 
electrically-connected signal control interface devices and 
conflict monitoring systems. 
‘‘(aa) EFFECTIVE DATE OF SECTION 327.—The pro-
visions of section 327 shall apply to products for which 
standards are set in subsections (v) through (z) of this 
section after the effective date for such standards.’’.
SEC. 1046. ENERGY LABELING. 
(a) RULEMAKING ON EFFECTIVENESS OF CONSUMER 
PRODUCT LABELING.—Paragraph (2) of section 324(a) of
the Energy Policy and Conservation Act (42 U.S.C. 
6294(a)(2)) is amended by adding at the end the fol-
lowing: 
‘‘(F) Not later than 3 months after the date of enact-
ment of this subparagraph, the Commission shall initiate 
a rulemaking to consider the effectiveness of the current 
consumer products labeling program in assisting con-
sumers in making purchasing decisions and improving en-
ergy efficiency and to consider changes to the labeling 
rules that would improve the effectiveness of consumer 
product labels. Such rulemaking shall be completed within 
2 years after the date of enactment of this subpara-
graph.’’. 
(b) RULEMAKING ON LABELING FOR ADDITIONAL 
PRODUCTS.—Section 324(a) of the Energy Policy and 
Conservation Act (42 U.S.C. 6294(a)) is further amended 
by adding at the end the following: 
‘‘(5) The Secretary or the Commission, as appro-
priate, may for covered products referred to in subsections 
(u) through (z) of section 325, prescribe, by rule, pursuant 
to this section, labeling requirements for such products 
after a test procedure has been set pursuant to section 
323.’’.
SEC. 1047. STUDY OF ENERGY EFFICIENCY STANDARDS. 
The Secretary of Energy shall contract with the Na-
tional Academy of Sciences for a study, to be completed 
within 1 year of enactment of this Act, to examine whether 
the goals of energy efficiency standards are best served 
by measurement of energy consumed, and efficiency im-
provements, at the actual site of energy consumption, or 
through the full fuel cycle, beginning at the source of en-
ergy production. The Secretary shall submit the report to 
the Congress.
TITLE II—OIL AND GAS 
Subtitle A—Alaska Natural Gas 
Pipeline 
SEC. 2001. SHORT TITLE. 
This subtitle may be cited as the ‘‘Alaska Natural 
Gas Pipeline Act of 2003’’. 
SEC. 2002. FINDINGS AND PURPOSES. 
(a) FINDINGS.—Congress finds the following: 
(1) Construction of a natural gas pipeline sys-
tem from the Alaskan North Slope to United States 
markets is in the national interest and will enhance 
national energy security by providing access to the 
significant gas reserves in Alaska needed to meet the 
anticipated demand for natural gas. 
(2) The Commission issued a conditional certifi-
cate of public convenience and necessity for the
Alaska natural gas transportation system, which re-
mains in effect. 
(b) PURPOSES.—The purposes of this subtitle are as 
follows: 
(1) To provide a statutory framework for the 
expedited approval, construction, and initial oper-
ation of an Alaska natural gas transportation 
project, as an alternative to the framework provided 
in the Alaska Natural Gas Transportation Act of 
1976 (15 U.S.C. 719 et seq.), which remains in ef-
fect. 
(2) To establish a process for providing access 
to such transportation project in order to promote 
competition in the exploration, development, and 
production of Alaska natural gas. 
(3) To clarify Federal authorities under the 
Alaska Natural Gas Transportation Act of 1976. 
SEC. 2003. DEFINITIONS. 
In this subtitle, the following definitions apply: 
(1) ALASKA NATURAL GAS.—The term ‘‘Alaska 
natural gas’’ means natural gas derived from the 
area of the State of Alaska lying north of 64 degrees 
North latitude. 
(2) ALASKA
NATURAL
GAS
TRANSPORTATION 
PROJECT.—The term ‘‘Alaska natural gas transpor-
tation project’’ means any natural gas pipeline sys-
tem that carries Alaska natural gas to the border 
between Alaska and Canada (including related facili-
ties subject to the jurisdiction of the Commission) 
that is authorized under either—
(A) the Alaska Natural Gas Transpor-
tation Act of 1976 (15 U.S.C. 719 et seq.); or 
(B) section 2004. 
(3) ALASKA
NATURAL
GAS
TRANSPORTATION 
SYSTEM.—The term ‘‘Alaska natural gas transpor-
tation system’’ means the Alaska natural gas trans-
portation project authorized under the Alaska Nat-
ural Gas Transportation Act of 1976 and designated 
and described in section 2 of the President’s deci-
sion. 
(4) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Energy Regulatory Commission. 
(5) PRESIDENT’S DECISION.—The term ‘‘Presi-
dent’s decision’’ means the decision and report to 
Congress on the Alaska natural gas transportation 
system issued by the President on September 22, 
1977, pursuant to section 7 of the Alaska Natural 
Gas Transportation Act of 1976 (15 U.S.C. 719e) 
and approved by Public Law 95–158 (91 Stat. 
1268).
(B) sufficient downstream capacity will 
exist to transport the Alaska natural gas mov-
ing through such project to markets in the con-
tiguous United States. 
(c) EXPEDITED APPROVAL PROCESS.—The Commis-
sion shall issue a final order granting or denying any ap-
plication for a certificate of public convenience and neces-
sity under section 7(c) of the Natural Gas Act (15 U.S.C. 
717f(c)) and this section not more than 60 days after the 
issuance of the final environmental impact statement for 
that project pursuant to section 2005. 
(d) PROHIBITION ON CERTAIN PIPELINE ROUTE.—
No license, permit, lease, right-of-way, authorization, or 
other approval required under Federal law for the con-
struction of any pipeline to transport natural gas from 
lands within the Prudhoe Bay oil and gas lease area may 
be granted for any pipeline that follows a route that tra-
verses—
(1) the submerged lands (as defined by the 
Submerged Lands Act) beneath, or the adjacent 
shoreline of, the Beaufort Sea; and 
(2) enters Canada at any point north of 68 de-
grees North latitude. 
(e) OPEN SEASON.—Except where an expansion is 
ordered pursuant to section 2006, initial or expansion ca-
pacity on any Alaska natural gas transportation project 
shall be allocated in accordance with procedures to be es-
tablished by the Commission in regulations governing the 
conduct of open seasons for such project. Such procedures 
shall include the criteria for and timing of any open sea-
sons, be consistent with the purposes set forth in section 
2002(b)(2), and, for any open season for capacity beyond 
the initial capacity, provide the opportunity for the trans-
portation of natural gas other than from the Prudhoe Bay 
and Point Thompson units. The Commission shall issue 
such regulations not later than 120 days after the date 
of enactment of this Act. 
(f) 
PROJECTS
IN
THE
CONTIGUOUS
UNITED 
STATES.—Applications for additional or expanded pipeline 
facilities that may be required to transport Alaska natural 
gas from Canada to markets in the contiguous United 
States may be made pursuant to the Natural Gas Act. 
To the extent such pipeline facilities include the expansion 
of any facility constructed pursuant to the Alaska Natural 
Gas Transportation Act of 1976, the provisions of that 
Act shall continue to apply. 
(g) STUDY OF IN-STATE NEEDS.—The holder of the 
certificate of public convenience and necessity issued, 
modified, or amended by the Commission for an Alaska 
natural gas transportation project shall demonstrate that
it has conducted a study of Alaska in-State needs, includ-
ing tie-in points along the Alaska natural gas transpor-
tation project for in-State access. 
(h) ALASKA ROYALTY GAS.—The Commission, upon 
the request of the State of Alaska and after a hearing, 
may provide for reasonable access to the Alaska natural 
gas transportation project for the State of Alaska or its 
designee for the transportation of the State’s royalty gas 
for local consumption needs within the State; except that 
the rates of existing shippers of subscribed capacity on 
such project shall not be increased as a result of such ac-
cess. 
(i) REGULATIONS.—The Commission may issue regu-
lations to carry out the provisions of this section. 
SEC. 2005. ENVIRONMENTAL REVIEWS. 
(a) COMPLIANCE WITH NEPA.—The issuance of a 
certificate of public convenience and necessity authorizing 
the construction and operation of any Alaska natural gas 
transportation project under section 2004 shall be treated 
as a major Federal action significantly affecting the qual-
ity of the human environment within the meaning of sec-
tion 102(2)(C) of the National Environmental Policy Act 
of 1969 (42 U.S.C. 4332(2)(C)). 
(b) DESIGNATION OF LEAD AGENCY.—The Commis-
sion shall be the lead agency for purposes of complying
with the National Environmental Policy Act of 1969, and 
shall be responsible for preparing the statement required 
by section 102(2)(c) of that Act (42 U.S.C. 4332(2)(c)) 
with respect to an Alaska natural gas transportation 
project under section 2004. The Commission shall prepare 
a single environmental statement under this section, which 
shall consolidate the environmental reviews of all Federal 
agencies considering any aspect of the project. 
(c) OTHER AGENCIES.—All Federal agencies consid-
ering aspects of the construction and operation of an Alas-
ka natural gas transportation project under section 2004 
shall cooperate with the Commission, and shall comply 
with deadlines established by the Commission in the prep-
aration of the statement under this section. The statement 
prepared under this section shall be used by all such agen-
cies to satisfy their responsibilities under section 
102(2)(C) of the National Environmental Policy Act of 
1969 (42 U.S.C. 4332(2)(C)) with respect to such project. 
(d) EXPEDITED PROCESS.—The Commission shall 
issue a draft statement under this section not later than 
12 months after the Commission determines the applica-
tion to be complete and shall issue the final statement not 
later than 6 months after the Commission issues the draft 
statement, unless the Commission for good cause finds 
that additional time is needed.
SEC. 2006. PIPELINE EXPANSION. 
(a) AUTHORITY.—With respect to any Alaska natural 
gas transportation project, upon the request of one or 
more persons and after giving notice and an opportunity 
for a hearing, the Commission may order the expansion 
of such project if it determines that such expansion is re-
quired by the present and future public convenience and 
necessity. 
(b) REQUIREMENTS.—Before ordering an expansion, 
the Commission shall—
(1) approve or establish rates for the expansion 
service that are designed to ensure the recovery, on 
an incremental or rolled-in basis, of the cost associ-
ated with the expansion (including a reasonable rate 
of return on investment); 
(2) ensure that the rates as established do not 
require existing shippers on the Alaska natural gas 
transportation project to subsidize expansion ship-
pers; 
(3) find that the proposed shipper will comply 
with, and the proposed expansion and the expansion 
of service will be undertaken and implemented based 
on, terms and conditions consistent with the then-ef-
fective tariff of the Alaska natural gas transpor-
tation project;
(4) find that the proposed facilities will not ad-
versely affect the financial or economic viability of 
the Alaska natural gas transportation project; 
(5) find that the proposed facilities will not ad-
versely affect the overall operations of the Alaska 
natural gas transportation project; 
(6) find that the proposed facilities will not di-
minish the contract rights of existing shippers to 
previously subscribed certificated capacity; 
(7) ensure that all necessary environmental re-
views have been completed; and 
(8) find that adequate downstream facilities 
exist or are expected to exist to deliver incremental 
Alaska natural gas to market. 
(c) REQUIREMENT FOR A FIRM TRANSPORTATION 
AGREEMENT.—Any order of the Commission issued pur-
suant to this section shall be null and void unless the per-
son or persons requesting the order executes a firm trans-
portation agreement with the Alaska natural gas transpor-
tation project within a reasonable period of time as speci-
fied in such order. 
(d) LIMITATION.—Nothing in this section shall be 
construed to expand or otherwise affect any authorities of 
the Commission with respect to any natural gas pipeline 
located outside the State of Alaska.
(e) REGULATIONS.—The Commission may issue reg-
ulations to carry out the provisions of this section. 
SEC. 2007. FEDERAL COORDINATOR. 
(a) ESTABLISHMENT.—There is established, as an 
independent office in the executive branch, the Office of 
the Federal Coordinator for Alaska Natural Gas Trans-
portation Projects. 
(b) FEDERAL COORDINATOR.—The Office shall be 
headed by a Federal Coordinator for Alaska Natural Gas 
Transportation Projects, who shall—
(1) be appointed by the President, by and with 
the advice of the Senate; 
(2) hold office at the pleasure of the President; 
and 
(3) be compensated at the rate prescribed for 
level III of the Executive Schedule (5 U.S.C. 5314). 
(c) DUTIES.—The Federal Coordinator shall be re-
sponsible for—
(1) coordinating the expeditious discharge of all 
activities by Federal agencies with respect to an 
Alaska natural gas transportation project; and 
(2) ensuring the compliance of Federal agencies 
with the provisions of this subtitle. 
(d) REVIEWS AND ACTIONS OF OTHER FEDERAL 
AGENCIES.—
(1) EXPEDITED
REVIEWS
AND
ACTIONS.—All 
reviews conducted and actions taken by any Federal 
officer or agency relating to an Alaska natural gas 
transportation project authorized under this section 
shall be expedited, in a manner consistent with com-
pletion of the necessary reviews and approvals by the 
deadlines set forth in this subtitle. 
(2) PROHIBITION ON CERTAIN TERMS AND CON-
DITIONS.—Except with respect to Commission ac-
tions under sections 2004, 2005, and 2006, no Fed-
eral officer or agency shall have the authority to in-
clude terms and conditions that are permitted, but 
not required, by law on any certificate, right-of-way, 
permit, lease, or other authorization issued to an 
Alaska natural gas transportation project if the Fed-
eral Coordinator determines that the terms and con-
ditions would prevent or impair in any significant re-
spect the expeditious construction and operation of 
the project. 
(3) PROHIBITION ON CERTAIN ACTIONS.—Ex-
cept with respect to Commission actions under sec-
tions 2004, 2005, and 2006, unless required by law, 
no Federal officer or agency shall add to, amend, or 
abrogate any certificate, right-of-way, permit, lease, 
or other authorization issued to an Alaska natural
gas transportation project if the Federal Coordinator 
determines that such action would prevent or impair 
in any significant respect the expeditious construc-
tion and operation of the project. 
(e) STATE COORDINATION.—The Federal Coordi-
nator shall enter into a Joint Surveillance and Monitoring 
Agreement, approved by the President and the Governor 
of Alaska, with the State of Alaska similar to that in effect 
during construction of the Trans-Alaska Oil Pipeline to 
monitor the construction of the Alaska natural gas trans-
portation project. The Federal Government shall have pri-
mary surveillance and monitoring responsibility where the 
Alaska natural gas transportation project crosses Federal 
lands and private lands, and the State government shall 
have primary surveillance and monitoring responsibility 
where the Alaska natural gas transportation project 
crosses State lands. 
(f) TRANSFER OF FEDERAL INSPECTOR FUNCTIONS 
AND AUTHORITY.—Upon appointment of the Federal Co-
ordinator by the President, all of the functions and au-
thority of the Office of Federal Inspector of Construction 
for the Alaska Natural Gas Transportation System vested 
in the Secretary of Energy pursuant to section 3012(b) 
of Public Law 102–486 (15 U.S.C. 719e(b)), including all 
functions and authority described and enumerated in the
Reorganization Plan No. 1 of 1979 (44 Fed. Reg. 33,663), 
Executive Order No. 12142 of June 21, 1979 (44 Fed. 
Reg. 36,927), and section 5 of the President’s decision, 
shall be transferred to the Federal Coordinator. 
SEC. 2008. JUDICIAL REVIEW. 
(a) EXCLUSIVE JURISDICTION.—Except for review by 
the Supreme Court of the United States on writ of certio-
rari, the United States Court of Appeals for the District 
of Columbia Circuit shall have original and exclusive juris-
diction to determine—
(1) the validity of any final order or action (in-
cluding a failure to act) of any Federal agency or of-
ficer under this subtitle; 
(2) the constitutionality of any provision of this 
subtitle, or any decision made or action taken under 
this subtitle; or 
(3) the adequacy of any environmental impact 
statement prepared under the National Environ-
mental Policy Act of 1969 with respect to any action 
under this subtitle. 
(b) DEADLINE FOR FILING CLAIM.—Claims arising 
under this subtitle may be brought not later than 60 days 
after the date of the decision or action giving rise to the 
claim.
(c) 
EXPEDITED
CONSIDERATION.—The 
United 
States Court of Appeals for the District of Columbia Cir-
cuit shall set any action brought under subsection (a) for 
expedited consideration, taking into account the national 
interest as described in section 2002(a). 
(d) AMENDMENT TO ANGTA.—Section 10(c) of the 
Alaska Natural Gas Transportation Act of 1976 (15 
U.S.C. 719h) is amended by inserting after paragraph (1) 
the following: 
‘‘(2) The United States Court of Appeals for the Dis-
trict of Columbia Circuit shall set any action brought 
under this section for expedited consideration, taking into 
account the national interest described in section 2.’’. 
SEC. 2009. STATE JURISDICTION OVER IN-STATE DELIVERY 
OF NATURAL GAS. 
(a) LOCAL DISTRIBUTION.—Any facility receiving 
natural gas from the Alaska natural gas transportation 
project for delivery to consumers within the State of Alas-
ka shall be deemed to be a local distribution facility within 
the meaning of section 1(b) of the Natural Gas Act (15 
U.S.C. 717(b)), and therefore not subject to the jurisdic-
tion of the Commission. 
(b) ADDITIONAL PIPELINES.—Nothing in this sub-
title, except as provided in section 2004(d), shall preclude 
or affect a future gas pipeline that may be constructed
to deliver natural gas to Fairbanks, Anchorage, 
Matanuska-Susitna Valley, or the Kenai peninsula or 
Valdez or any other site in the State of Alaska for con-
sumption within or distribution outside the State of Alas-
ka. 
(c) RATE COORDINATION.—Pursuant to the Natural 
Gas Act, the Commission shall establish rates for the 
transportation of natural gas on the Alaska natural gas 
transportation project. In exercising such authority, the 
Commission, pursuant to section 17(b) of the Natural Gas 
Act (15 U.S.C. 717p(b)), shall confer with the State of 
Alaska regarding rates (including rate settlements) appli-
cable to natural gas transported on and delivered from the 
Alaska natural gas transportation project for use within 
the State of Alaska. 
SEC. 2010. STUDY OF ALTERNATIVE MEANS OF CONSTRUC-
TION. 
(a) REQUIREMENT OF STUDY.—If no application for 
the issuance of a certificate or amended certificate of pub-
lic convenience and necessity authorizing the construction 
and operation of an Alaska natural gas transportation 
project has been filed with the Commission not later than 
18 months after the date of enactment of this Act, the 
Secretary of Energy shall conduct a study of alternative
approaches to the construction and operation of the 
project. 
(b) SCOPE OF STUDY.—The study shall consider the 
feasibility of establishing a Government corporation to 
construct an Alaska natural gas transportation project, 
and alternative means of providing Federal financing and 
ownership (including alternative combinations of Govern-
ment and private corporate ownership) of the project. 
(c) CONSULTATION.—In conducting the study, the 
Secretary of Energy shall consult with the Secretary of 
the Treasury and the Secretary of the Army (acting 
through the Commanding General of the Corps of Engi-
neers). 
(d) REPORT.—If the Secretary of Energy is required 
to conduct a study under subsection (a), the Secretary 
shall submit a report containing the results of the study, 
the Secretary’s recommendations, and any proposals for 
legislation to implement the Secretary’s recommendations 
to Congress. 
SEC. 2011. CLARIFICATION OF ANGTA STATUS AND AU-
THORITIES. 
(a) SAVINGS CLAUSE.—Nothing in this subtitle af-
fects any decision, certificate, permit, right-of-way, lease, 
or other authorization issued under section 9 of the Alaska 
Natural Gas Transportation Act of 1976 (15 U.S.C.
719g) or any Presidential findings or waivers issued in 
accordance with that Act. 
(b) CLARIFICATION
OF
AUTHORITY
TO
AMEND 
TERMS AND CONDITIONS TO MEET CURRENT PROJECT 
REQUIREMENTS.—Any Federal officer or agency respon-
sible for granting or issuing any certificate, permit, right-
of-way, lease, or other authorization under section 9 of 
the Alaska Natural Gas Transportation Act of 1976 (15 
U.S.C. 719g) may add to, amend, or abrogate any term 
or condition included in such certificate, permit, right-of-
way, lease, or other authorization to meet current project 
requirements (including the physical design, facilities, and 
tariff specifications), so long as such action does not com-
pel a change in the basic nature and general route of the 
Alaska natural gas transportation system as designated 
and described in section 2 of the President’s decision, or 
would otherwise prevent or impair in any significant re-
spect the expeditious construction and initial operation of 
such transportation system. 
(c) UPDATED ENVIRONMENTAL REVIEWS.—The Sec-
retary of Energy shall require the sponsor of the Alaska 
natural gas transportation system to submit such updated 
environmental data, reports, permits, and impact analyses 
as the Secretary determines are necessary to develop de-
tailed terms, conditions, and compliance plans required by 
section 5 of the President’s decision. 
SEC. 2012. SENSE OF CONGRESS. 
It is the sense of Congress that an Alaska natural 
gas transportation project will provide significant eco-
nomic benefits to the United States and Canada. In order 
to maximize those benefits, Congress urges the sponsors 
of the pipeline project to make every effort to use steel 
that is manufactured or produced in North America and 
to negotiate a project labor agreement to expedite con-
struction of the pipeline. 
SEC. 2013. PARTICIPATION OF SMALL BUSINESS CON-
CERNS. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that an Alaska natural gas transportation project 
will provide significant economic benefits to the United 
States and Canada. In order to maximize those benefits, 
Congress urges the sponsors of the pipeline project to 
maximize the participation of small business concerns in 
contracts and subcontracts awarded in carrying out the 
project. 
(b) STUDY.—
(1) IN
GENERAL.—The Comptroller General 
shall conduct a study on the extent to which small
business concerns participate in the construction of 
oil and gas pipelines in the United States. 
(2) REPORT.—Not later that 1 year after the 
date of enactment of this Act, the Comptroller Gen-
eral shall transmit to Congress a report containing 
the results of the study. 
(3) UPDATES.—The Comptroller General shall 
update the study at least once every 5 years and 
transmit to Congress a report containing the results 
of the update. 
(4) APPLICABILITY.—After the date of comple-
tion of the construction of an Alaska natural gas 
transportation project, this subsection shall no 
longer apply. 
(c) SMALL BUSINESS CONCERN DEFINED.—In this 
section, the term ‘‘small business concern’’ has the mean-
ing given such term in section 3(a) of the Small Business 
Act (15 U.S.C. 632(a)). 
SEC. 2014. ALASKA PIPELINE CONSTRUCTION TRAINING 
PROGRAM. 
(a) ESTABLISHMENT OF PROGRAM.—The Secretary 
of Labor (in this section referred to as the ‘‘Secretary’’) 
may make grants to the Alaska Department of Labor and 
Workforce Development to—
(1) develop a plan to train, through the work-
force investment system established in the State of 
Alaska under the Workforce Investment Act of 1998 
(112 Stat. 936 et seq.), adult and dislocated work-
ers, including Alaska Natives, in urban and rural 
Alaska in the skills required to construct and oper-
ate an Alaska gas pipeline system; and 
(2) implement the plan developed pursuant to 
paragraph (1). 
(b) REQUIREMENTS FOR PLANNING GRANTS.—The 
Secretary may make a grant under subsection (a)(1) only 
if—
(1) the Governor of Alaska certifies in writing 
to the Secretary that there is a reasonable expecta-
tion that construction of an Alaska gas pipeline will 
commence within 3 years after the date of such cer-
tification; and 
(2) the Secretary of the Interior concurs in 
writing to the Secretary with the certification made 
under paragraph (1). 
(c) 
REQUIREMENTS
FOR
IMPLEMENTATION 
GRANTS.—The Secretary may make a grant under sub-
section (a)(2) only if—
(1) the Secretary has approved a plan developed 
pursuant to subsection (a)(1);
(2) the Governor of Alaska requests the grant 
funds and certifies in writing to the Secretary that 
there is a reasonable expectation that the construc-
tion of an Alaska gas pipeline system will commence 
within 2 years after the date of such certification; 
(3) the Secretary of the Interior concurs in 
writing to the Secretary with the certification made 
under paragraph (2) after considering—
(A) the status of necessary State and Fed-
eral permits; 
(B) the availability of financing for the 
pipeline project; and 
(C) 
other 
relevant 
factors 
and 
cir-
cumstances. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of 
Labor such sums as may be necessary, but not to exceed 
$20,000,000, to carry out this section.
Subtitle B—Strategic Petroleum 
Reserve 
SEC. 2101. FULL CAPACITY OF STRATEGIC PETROLEUM RE-
SERVE. 
The President shall— 
(1) fill the Strategic Petroleum Reserve estab-
lished pursuant to part B of title I of the Energy
Policy and Conservation Act (42 U.S.C. 6231 et 
seq.) to full capacity as soon as practicable; 
(2) acquire petroleum for the Strategic Petro-
leum Reserve by the most practicable and cost-effec-
tive means, with consideration being given to domes-
tically produced petroleum, including the acquisition 
of crude oil the United States is entitled to receive 
in kind as royalties from production on Federal 
lands; and 
(3) ensure that the fill rate minimizes impacts 
on petroleum markets. 
SEC. 2102. STRATEGIC PETROLEUM RESERVE EXPANSION. 
(a) PLAN.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Energy shall 
transmit to the Congress a plan for the expansion of the 
Strategic Petroleum Reserve to 1,000,000,000 barrels, in-
cluding—
(1) plans for the elimination of infrastructure 
impediments to maximum drawdown capability; 
(2) a schedule for the completion of all required 
environmental reviews; 
(3) provision for consultation with Federal and 
State environmental agencies; 
(4) a schedule and procedures for site selection; 
and
(5) anticipated annual budget requests. 
(b) CONSTRUCTION OF ADDITIONAL CAPACITY.—The 
Secretary of Energy shall acquire property and complete 
construction for the expansion of the Strategic Petroleum 
Reserve in accordance with the plan transmitted under 
subsection (a). 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy $1,500,000,000 for carrying out this section, to re-
main available until expended.
SEC. 2103. PERMANENT AUTHORITY TO OPERATE THE 
STRATEGIC 
PETROLEUM 
RESERVE 
AND 
OTHER ENERGY PROGRAMS. 
(a) AMENDMENT TO TITLE I OF THE ENERGY POL-
ICY AND CONSERVATION ACT.—Title I of the Energy Pol-
icy and Conservation Act (42 U.S.C. 6211 et seq.) is 
amended—
(1) by striking section 166 (42 U.S.C. 6246) 
and inserting—
‘‘AUTHORIZATION OF APPROPRIATIONS 
‘‘SEC. 166. There are authorized to be appropriated 
to the Secretary such sums as may be necessary to carry 
out this part and part D, to remain available until ex-
pended.’’; 
(2) by striking section 186 (42 U.S.C. 6250e); 
and
(3) by striking part E (42 U.S.C. 6251; relat-
ing to the expiration of title I of the Act). 
(b) AMENDMENT TO TITLE II OF THE ENERGY POL-
ICY AND CONSERVATION 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); relating to the expiration of summer fill 
and fuel budgeting programs); and 
(3) by striking part D (42 U.S.C. 6285; relat-
ing to the expiration of title II of the Act). 
(c) TECHNICAL AMENDMENTS.—The table of con-
tents for the Energy Policy and Conservation Act is 
amended—
(1) by inserting after the items relating to part 
C of title I the following:
‘‘PART D—NORTHEAST HOME HEATING OIL RESERVE 
‘‘Sec. 181. Establishment. 
‘‘Sec. 182. Authority. 
‘‘Sec. 183. Conditions for release; plan. 
‘‘Sec. 184. Northeast Home Heating Oil Reserve Account. 
‘‘Sec. 185. Exemptions.’’;
(2) by amending the items relating to part C of 
title II to read as follows:
‘‘PART C—SUMMER FILL AND FUEL BUDGETING PROGRAMS 
‘‘Sec. 273. Summer fill and fuel budgeting programs.’’; and
(3) by striking the items relating to part D of 
title II. 
(d) AMENDMENT TO THE ENERGY POLICY AND CON-
SERVATION ACT.—Section 183(b)(1) of the Energy Policy 
and Conservation Act (42 U.S.C. 6250b(b)(1)) is amended 
by inserting ‘‘(considered as a heating season average)’’ 
after ‘‘mid-October through March’’. 
Subtitle C—Hydraulic Fracturing 
SEC. 2201. HYDRAULIC FRACTURING. 
Paragraph (1) of section 1421(d) of the Safe Drink-
ing Water Act (42 U.S.C. 300h(d)) is amended to read 
as follows: 
‘‘(1) The term ‘underground injection’—
‘‘(A) means the subsurface emplacement of 
fluids by well injection; and 
‘‘(B) excludes—
‘‘(i) the underground injection of nat-
ural gas for purposes of storage; and 
‘‘(ii) the underground injection of 
fluids or propping agents pursuant to hy-
draulic fracturing operations related to oil 
or gas production activities.’’.
Subtitle D—Unproven Oil and Nat-
ural 
Gas 
Reserves 
Recovery 
Program 
SEC. 2301. PROGRAM. 
The Secretary shall carry out a program to dem-
onstrate technologies for the recovery of oil and natural 
gas reserves from reservoirs described in section 2302. 
SEC. 2302. ELIGIBLE RESERVOIRS. 
The program under this subtitle shall only address 
oil and natural gas reservoirs with 1 or more of the fol-
lowing characteristics: 
(1) Complex geology involving rapid changes in 
the type and quality of the oil reservoir across the 
reservoir. 
(2) Low reservoir pressure. 
(3) Unconventional natural gas reservoirs in 
coalbeds, tight sands, or shales. 
SEC. 2303. FOCUS AREAS. 
The program under this subtitle may focus on areas 
including coal-bed methane, deep drilling, natural gas pro-
duction from tight sands, natural gas production from gas 
shales, innovative production techniques (including hori-
zontal drilling, fracture detection methodologies, and 
three-dimensional seismic), and enhanced recovery tech-
niques.
SEC. 2304. LIMITATION ON LOCATION OF ACTIVITIES. 
Activities under this subtitle shall be carried out 
only—
(1) in—
(A) areas onshore in the United States on 
public land administered by the Secretary of the 
Interior available for oil and gas leasing, where 
consistent with applicable law and land use 
plans; and 
(B) areas onshore in the United States on 
State or private land, subject to applicable law; 
and 
(2) with the approval of the appropriate Fed-
eral or State land management agency or private 
land owner. 
SEC. 2305. PROGRAM ADMINISTRATION. 
(a) ROLE OF THE SECRETARY.—The Secretary shall 
have ultimate responsibility for, and oversight of, all as-
pects of the program under this subtitle. 
(b) ROLE OF THE PROGRAM CONSORTIUM.—
(1) IN GENERAL.—The Secretary shall contract 
with a consortium to—
(A) manage awards pursuant to subsection 
(e)(4); 
(B) make recommendations to the Sec-
retary for project solicitations;
(C) disburse funds awarded under sub-
section (e) as directed by the Secretary in ac-
cordance with the annual plan under subsection 
(d); and 
(D) carry out other activities assigned to 
the program consortium by this section. 
(2) LIMITATION.—The Secretary may not as-
sign any activities to the program consortium except 
as specifically authorized under this section. 
(3) CONFLICT
OF
INTEREST.—(A) The Sec-
retary shall establish procedures—
(i) to ensure that each board member, offi-
cer, or employee of the program consortium 
who is in a decisionmaking capacity under sub-
section (e)(3) or (4) shall disclose to the Sec-
retary any financial interests in, or financial re-
lationships with, applicants for or recipients of 
awards under this section, including those of 
his or her spouse or minor child, unless such re-
lationships or interests would be considered to 
be remote or inconsequential; and 
(ii) to require any board member, officer, 
or employee with a financial relationship or in-
terest disclosed under clause (i) to recuse him-
self or herself from any review under subsection
(e)(3) or oversight under subsection (e)(4) with 
respect to such applicant or recipient. 
(B) The Secretary may disqualify an applica-
tion or revoke an award under this section if a board 
member, officer, or employee has failed to comply 
with 
procedures 
required 
under 
subparagraph 
(A)(ii). 
(c) SELECTION OF THE PROGRAM CONSORTIUM.—
(1) IN GENERAL.—The Secretary shall select 
the program consortium through an open, competi-
tive process. 
(2) MEMBERS.—The program consortium may 
include corporations and institutions of higher edu-
cation. The Secretary shall give preference in the se-
lection of the program consortium to applicants with 
broad representation from the various major oil and 
natural gas basins in the United States. After sub-
mitting a proposal under paragraph (4), the pro-
gram consortium may not add members without the 
consent of the Secretary. 
(3) TAX
STATUS.—The program consortium 
shall be an entity that is exempt from tax under sec-
tion 501(c)(3) of the Internal Revenue Code of 
1986.
(4) SCHEDULE.—Not later than 90 days after 
the date of enactment of this Act, the Secretary 
shall solicit proposals for the creation of the pro-
gram consortium, which must be submitted not less 
than 180 days after the date of enactment of this 
Act. The Secretary shall select the program consor-
tium not later than 240 days after such date of en-
actment. 
(5) APPLICATION.—Applicants shall submit a 
proposal including such information as the Secretary 
may require. At a minimum, each proposal shall—
(A) list all members of the consortium; 
(B) fully describe the structure of the con-
sortium, including any provisions relating to in-
tellectual property; and 
(C) describe how the applicant would carry 
out the activities of the program consortium 
under this section. 
(6) ELIGIBILITY.—To be eligible to be selected 
as the program consortium, an applicant must be an 
entity whose members collectively have demonstrated 
capabilities in planning and managing programs for 
the production of oil or natural gas. 
(7) CRITERION.—The Secretary may consider 
the amount of the fee an applicant proposes to re-
ceive under subsection (f) in selecting a consortium 
under this section. 
(d) ANNUAL PLAN.—
(1) IN
GENERAL.—The program under this 
subtitle shall be carried out pursuant to an annual 
plan prepared by the Secretary in accordance with 
paragraph (2). 
(2) DEVELOPMENT.—(A) Before drafting an 
annual plan under this subsection, the Secretary 
shall solicit specific written recommendations from 
the program consortium for each element to be ad-
dressed in the plan, including those described in 
paragraph (4). The Secretary may request that the 
program consortium submit its recommendations in 
the form of a draft annual plan. 
(B) The Secretary shall submit the rec-
ommendations of the program consortium under 
subparagraph (A) to the Advisory Committee for re-
view, and the Advisory Committee shall provide to 
the Secretary written comments by a date deter-
mined by the Secretary. The Secretary may also so-
licit comments from any other experts. 
(C) The Secretary shall consult regularly with 
the program consortium throughout the preparation 
of the annual plan.
(3) PUBLICATION.—The Secretary shall trans-
mit to the Congress and publish in the Federal Reg-
ister the annual plan, along with any written com-
ments received under paragraph (2)(A) and (B). 
The annual plan shall be transmitted and published 
not later than 60 days after the date of enactment 
of an Act making appropriations for a fiscal year for 
the program under this subtitle. 
(4) CONTENTS.—The annual plan shall describe 
the ongoing and prospective activities of the pro-
gram under this subtitle and shall include—
(A) a list of any solicitations for awards 
that the Secretary plans to issue to carry out 
activities, including the topics for such work, 
who would be eligible to apply, selection cri-
teria, and the duration of awards; and 
(B) a description of the activities expected 
of the program consortium to carry out sub-
section (e)(4). 
(e) AWARDS.—
(1) IN GENERAL.—The Secretary shall make 
awards to carry out activities under the program 
under this subtitle. The program consortium shall 
not be eligible to receive such awards, but members 
of the program consortium may receive such awards.
(2) PROPOSALS.—
(A) SOLICITATION.—The Secretary shall 
solicit proposals for awards under this sub-
section in such manner and at such time as the 
Secretary may prescribe, in consultation with 
the program consortium. 
(B) CONTENTS.—Each proposal submitted 
shall include the following: 
(i) An estimate of the potential 
unproven reserves in the reservoir, estab-
lished by a registered petroleum engineer. 
(ii) An estimate of the potential for 
success of the project. 
(iii) A detailed project plan. 
(iv) A detailed analysis of the costs 
associated with the project. 
(v) A time frame for project comple-
tion. 
(vi) Evidence that any lienholder on 
the project will subordinate its interests to 
the extent necessary to ensure that the 
Federal government receives its portion of 
any revenues pursuant to section 2308. 
(vii) Such other matters as the Sec-
retary considers appropriate.
(3) REVIEW.—The Secretary shall make awards 
under this subsection through a competitive process, 
which shall include a review by individuals selected 
by the Secretary. Such individuals shall include, for 
each application, Federal officials, the program con-
sortium, and non-Federal experts who are not board 
members, officers, or employees of the program con-
sortium or of a member of the program consortium. 
(4) OVERSIGHT.—(A) The program consortium 
shall oversee the implementation of awards under 
this subsection, consistent with the annual plan 
under subsection (d), including disbursing funds and 
monitoring activities carried out under such awards 
for compliance with the terms and conditions of the 
awards. 
(B) Nothing in subparagraph (A) shall limit the 
authority or responsibility of the Secretary to over-
see awards, or limit the authority of the Secretary 
to review or revoke awards. 
(C) The Secretary shall provide to the program 
consortium the information necessary for the pro-
gram consortium to carry out its responsibilities 
under this paragraph. 
(f) FEE.—To compensate the program consortium 
for carrying out its activities under this section, the Sec-
retary shall provide to the program consortium a fee in 
an amount not to exceed 7.5 percent of the amounts 
awarded under subsection (e) for each fiscal year. 
(g) DISALLOWED EXPENSES.—No portion of any 
award shall be used by a recipient for general or adminis-
trative expenses of any kind. 
(h) AUDIT.—The Secretary shall retain an inde-
pendent, commercial auditor to determine the extent to 
which funds provided to the program consortium, and 
funds provided under awards made under subsection (e), 
have been expended in a manner consistent with the pur-
poses and requirements of this subtitle. The auditor shall 
transmit a report annually to the Secretary, who shall 
transmit the report to Congress, along with a plan to rem-
edy any deficiencies cited in the report. 
SEC. 2306. ADVISORY COMMITTEE. 
(a) ESTABLISHMENT.—Not later than 270 days after 
the date of enactment of this Act, the Secretary shall es-
tablish an Advisory Committee. 
(b) MEMBERSHIP.—The Advisory Committee shall be 
composed of members appointed by the Secretary and in-
cluding—
(1) individuals with extensive experience or 
operational knowledge of oil and natural gas produc-
tion, including independent oil and gas producers;
(2) individuals broadly representative of oil and 
natural gas production; and 
(3) no individuals who are Federal employees. 
(c) DUTIES.—The Advisory Committee shall advise 
the Secretary on the development and implementation of 
activities under this subtitle. 
(d) COMPENSATION.—A member of the Advisory 
Committee shall serve without compensation but shall re-
ceive travel expenses, including per diem in lieu of subsist-
ence, in accordance with applicable provisions under sub-
chapter I of chapter 57 of title 5, United States Code. 
(e) PROHIBITION.—The Advisory Committee shall 
not make recommendations on funding awards to con-
sortia or for specific projects. 
SEC. 2307. LIMITS ON PARTICIPATION. 
An entity shall be eligible to receive an award under 
this subtitle only if the Secretary finds—
(1) that the entity’s participation in the pro-
gram under this subtitle would be in the economic 
interest of the United States; 
(2) that the entity is a United States-owned en-
tity organized under the laws of the United States 
with production levels of less than 1,000 barrels per 
day of oil equivalent; and
(3) that the entity has demonstrated that non-
governmental third party sources of financing are 
not available for the proposal project. 
SEC. 2308. PAYMENTS TO FEDERAL GOVERNMENT. 
(a) INITIAL RATE.—Until the amount of a grant 
under this subtitle has been fully repaid to the Federal 
Government under this subsection, 95 percent of all reve-
nues derived from increased incremental production at-
tributable to participation in the program under this sub-
title shall be paid to the Secretary by the purchaser of 
such increased production. 
(b) RATE AFTER REPAYMENT.—After the Federal 
Government has been fully repaid under subsection (a), 
5 percent of all revenues derived from increased incre-
mental production attributable to participation in the pro-
gram under this subtitle shall be paid to the Secretary 
by the purchaser of such increased production. 
SEC. 2309. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Sec-
retary for carrying out this subtitle $100,000,000, to re-
main available until expended. 
SEC. 2310. PUBLIC AVAILABILITY OF PROJECT RESULTS 
AND METHODOLOGIES. 
The results of any project undertaken pursuant to 
this subtitle and the methodologies used to achieve those
100
results shall be made public by the Secretary. The meth-
odologies used shall not be proprietary so that such meth-
odologies may be used for other projects by persons not 
seeking awards pursuant to this subtitle. 
SEC. 2311. SUNSET. 
The authority provided by this subtitle shall termi-
nate on September 30, 2010. 
SEC. 2312. DEFINITIONS. 
In this subtitle: 
(1) PROGRAM CONSORTIUM.—The term ‘‘pro-
gram consortium’’ means the consortium selected 
under section 2305(c). 
(2) REMOTE OR INCONSEQUENTIAL.—The term 
‘‘remote or inconsequential’’ has the meaning given 
that term in regulations issued by the Office of Gov-
ernment Ethics under section 208(b)(2) of title 18, 
United States Code. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy.
Subtitle E—Miscellaneous 
SEC. 2401. APPEALS RELATING TO PIPELINE CONSTRUC-
TION PROJECTS. 
(a) AGENCY OF RECORD.—Any Federal administra-
tive agency proceeding that is an appeal or review of Fed-
eral authority for an interstate natural gas pipeline con-
101
struction project, including construction of natural gas 
storage and liquefied natural gas facilities, shall use as 
its exclusive record for all purposes the record compiled 
by the Federal Energy Regulatory Commission pursuant 
to such Commission’s proceeding under section 7 of the 
Natural Gas Act. 
(b) SENSE OF THE CONGRESS.—It is the sense of 
the Congress that all Federal and State agencies with ju-
risdiction over interstate natural gas pipeline construction 
activities should coordinate their proceedings within the 
time frames established by the Federal Energy Regulatory 
Commission while it is acting pursuant to section 7 of the 
Natural Gas Act to determine whether a proposed inter-
state natural gas pipeline is in the public convenience and 
necessity. 
SEC. 2402. NATURAL GAS MARKET DATA TRANSPARENCY. 
(a) ESTABLISHMENT OF SYSTEM.—Not later than 
180 days after the date of enactment of this Act, the Fed-
eral Energy Regulatory Commission shall issue rules au-
thorizing or establishing an electronic information system 
to provide the Commission and the public with timely ac-
cess to such information as is necessary or appropriate 
to facilitate price transparency and participation in nat-
ural gas markets. Such system shall provide information
102
about the market price of natural gas sold in interstate 
commerce. 
(b) DATA SUBJECT TO DISCLOSURE.—Rules issued 
under subsection (a) shall require public availability only 
of—
(1) aggregate data; and 
(2) transaction-specific data that is otherwise 
required by the Federal Energy Regulatory Commis-
sion to be made public. 
(c) CIVIL PENALTY.—Any person who violates any 
provision of a rule issued under subsection (a) shall be 
subject to a civil penalty of not more than $1,000,000 for 
each day that such violation continues. Such penalty shall 
be assessed by the Federal Energy Regulatory Commis-
sion, after notice and opportunity for public hearing. In 
determining the amount of a proposed penalty, the Com-
mission shall take into consideration the seriousness of the 
violation and the efforts of such person to remedy the vio-
lation in a timely manner. 
SEC. 2403. OIL AND GAS EXPLORATION AND PRODUCTION 
DEFINED. 
Section 502 of the Federal Water Pollution Control 
Act (33 U.S.C. 1362) is amended by adding at the end 
the following:
103
‘‘(21) The term ‘oil and gas exploration and produc-
tion’ means all field operations necessary for both explo-
ration and production of oil and gas, including activities 
necessary to prepare a site for drilling and for the move-
ment and placement of drilling equipment, whether or not 
such activities may be considered construction activities.’’.
TITLE III—HYDROELECTRIC 
RELICENSING 
Subtitle A—Alternative Conditions 
SEC. 3001. ALTERNATIVE CONDITIONS AND FISHWAYS. 
(a) FEDERAL RESERVATIONS.—Section 4(e) of the 
Federal Power Act (16 U.S.C. 797(e)) is amended by in-
serting after ‘‘adequate protection and utilization of such 
reservation.’’ at the end of the first proviso the following: 
‘‘The license applicant shall be entitled to a determination 
on the record, after opportunity for an agency trial-type 
hearing of any disputed issues of material fact, with re-
spect to such conditions.’’. 
(b) FISHWAYS.—Section 18 of the Federal Power Act 
(16 U.S.C. 811) is amended by inserting after ‘‘and such 
fishways as may be prescribed by the Secretary of Com-
merce.’’ the following: ‘‘The license applicant shall be enti-
tled to a determination on the record, after opportunity 
for an agency trial-type hearing of any disputed issues of 
material fact, with respect to such fishways.’’.
104
(c) ALTERNATIVE
CONDITIONS
AND
PRESCRIP-
TIONS.—Part I of the Federal Power Act (16 U.S.C. 791a 
et seq.) is amended by adding the following new section 
at the end thereof: 
‘‘SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS. 
‘‘(a) ALTERNATIVE CONDITIONS.—(1) Whenever any 
person applies for a license for any project works within 
any reservation of the United States, and the Secretary 
of the department under whose supervision such reserva-
tion falls (referred to in this subsection as ‘the Secretary’) 
deems a condition to such license to be necessary under 
the first proviso of section 4(e), the license applicant may 
propose an alternative condition. 
‘‘(2) Notwithstanding the first proviso of section 4(e), 
the Secretary shall accept the proposed alternative condi-
tion referred to in paragraph (1), and the Commission 
shall include in the license such alternative condition, if 
the Secretary determines, based on substantial evidence 
provided by the license applicant or otherwise available to 
the Secretary, that such alternative condition—
‘‘(A) provides for the adequate protection and 
utilization of the reservation; and 
‘‘(B) will either—
‘‘(i) cost less to implement; or
105
‘‘(ii) result in improved operation of the 
project works for electricity production, 
as compared to the condition initially deemed nec-
essary by the Secretary. 
‘‘(3) The Secretary shall submit into the public 
record of the Commission proceeding with any condition 
under section 4(e) or alternative condition it accepts under 
this section, a written statement explaining the basis for 
such condition, and reason for not accepting any alter-
native condition under this section. The written statement 
must demonstrate that the Secretary gave equal consider-
ation to the effects of the condition adopted and alter-
natives not accepted on energy supply, distribution, cost, 
and use; flood control; navigation; water supply; and air 
quality (in addition to the preservation of other aspects 
of environmental quality); based on such information as 
may be available to the Secretary, including information 
voluntarily provided in a timely manner by the applicant 
and others. The Secretary shall also submit, together with 
the aforementioned written statement, all studies, data, 
and other factual information available to the Secretary 
and relevant to the Secretary’s decision. 
‘‘(4) Nothing in this section shall prohibit other inter-
ested parties from proposing alternative conditions.
106
‘‘(5) If the Secretary does not accept an applicant’s 
alternative condition under this section, and the Commis-
sion finds that the Secretary’s condition would be incon-
sistent with the purposes of this part, or other applicable 
law, the Commission may refer the dispute to the Commis-
sion’s Dispute Resolution Service. The Dispute Resolution 
Service shall consult with the Secretary and the Commis-
sion and issue a non-binding advisory within 90 days. The 
Secretary may accept the Dispute Resolution Service advi-
sory unless the Secretary finds that the recommendation 
will not adequately protect the reservation. The Secretary 
shall submit the advisory and the Secretary’s final written 
determination into the record of the Commission’s pro-
ceeding. 
‘‘(b) ALTERNATIVE PRESCRIPTIONS.—(1) Whenever 
the Secretary of the Interior or the Secretary of Commerce 
prescribes a fishway under section 18, the license appli-
cant or licensee may propose an alternative to such pre-
scription to construct, maintain, or operate a fishway. The 
alternative may include a fishway or an alternative to a 
fishway. 
‘‘(2) Notwithstanding section 18, the Secretary of the 
Interior or the Secretary of Commerce, as appropriate, 
shall accept and prescribe, and the Commission shall re-
quire, the proposed alternative referred to in paragraph
107
(1), if the Secretary of the appropriate department deter-
mines, based on substantial evidence provided by the li-
censee or otherwise available to the Secretary, that such 
alternative—
‘‘(A) will be no less protective of the fish re-
sources than the fishway initially prescribed by the 
Secretary; and 
‘‘(B) will either—
‘‘(i) cost less to implement; or 
‘‘(ii) result in improved operation of the 
project works for electricity production, 
as compared to the fishway initially deemed nec-
essary by the Secretary. 
‘‘(3) The Secretary concerned shall submit into the 
public record of the Commission proceeding with any pre-
scription under section 18 or alternative prescription it ac-
cepts under this section, a written statement explaining 
the basis for such prescription, and reason for not accept-
ing any alternative prescription under this section. The 
written statement must demonstrate that the Secretary 
gave equal consideration to the effects of the condition 
adopted and alternatives not accepted on energy supply, 
distribution, cost, and use; flood control; navigation; water 
supply; and air quality (in addition to the preservation of 
other aspects of environmental quality); based on such in-
108
formation as may be available to the Secretary, including 
information voluntarily provided in a timely manner by the 
applicant and others. The Secretary shall also submit, to-
gether with the aforementioned written statement, all 
studies, data, and other factual information available to 
the Secretary and relevant to the Secretary’s decision. 
‘‘(4) Nothing in this section shall prohibit other inter-
ested parties from proposing alternative prescriptions. 
‘‘(5) If the Secretary concerned does not accept an 
applicant’s alternative prescription under this section, and 
the Commission finds that the Secretary’s prescription 
would be inconsistent with the purposes of this part, or 
other applicable law, the Commission may refer the dis-
pute to the Commission’s Dispute Resolution Service. The 
Dispute Resolution Service shall consult with the Sec-
retary and the Commission and issue a non-binding advi-
sory within 90 days. The Secretary may accept the Dis-
pute Resolution Service advisory unless the Secretary 
finds that the recommendation will not adequately protect 
the fish resources. The Secretary shall submit the advisory 
and the Secretary’s final written determination into the 
record of the Commission’s proceeding.’’.
109
Subtitle B—Additional Hydropower 
SEC. 3201. HYDROELECTRIC PRODUCTION INCENTIVES. 
(a) INCENTIVE PAYMENTS.—For electric energy gen-
erated and sold by a qualified hydroelectric facility during 
the incentive period, the Secretary of Energy (referred to 
in this section as the ‘‘Secretary’’) shall make, subject to 
the availability of appropriations, incentive payments to 
the owner or operator of such facility. The amount of such 
payment made to any such owner or operator shall be as 
determined under subsection (e) of this section. Payments 
under this section may only be made upon receipt by the 
Secretary of an incentive payment application which estab-
lishes that the applicant is eligible to receive such payment 
and which satisfies such other requirements as the Sec-
retary deems necessary. Such application shall be in such 
form, and shall be submitted at such time, as the Sec-
retary shall establish. 
(b) DEFINITIONS.—For purposes of this section: 
(1) QUALIFIED
HYDROELECTRIC
FACILITY.—
The term ‘‘qualified hydroelectric facility’’ means a 
turbine or other generating device owned or solely 
operated by a non-Federal entity which generates 
hydroelectric energy for sale and which is added to 
an existing dam or conduit.
110
(2) EXISTING
DAM
OR
CONDUIT.—The term 
‘‘existing dam or conduit’’ means any dam or con-
duit the construction of which was completed before 
the date of the enactment of this section and which 
does not require any construction or enlargement of 
impoundment or diversion structures (other than re-
pair or reconstruction) in connection with the instal-
lation of a turbine or other generating device. 
(3) CONDUIT.—The term ‘‘conduit’’ has the 
same meaning as when used in section 30(a)(2) of 
the Federal Power Act. 
The terms defined in this subsection shall apply without 
regard to the hydroelectric kilowatt capacity of the facility 
concerned, without regard to whether the facility uses a 
dam owned by a governmental or nongovernmental entity, 
and without regard to whether the facility begins oper-
ation on or after the date of the enactment of this section. 
(c) ELIGIBILITY WINDOW.—Payments may be made 
under this section only for electric energy generated from 
a qualified hydroelectric facility which begins operation 
during the period of 10 fiscal years beginning with the 
first full fiscal year occurring after the date of enactment 
of this subtitle. 
(d) INCENTIVE PERIOD.—A qualified hydroelectric 
facility may receive payments under this section for a pe-
111
riod of 10 fiscal years (referred to in this section as the 
‘‘incentive period’’). Such period shall begin with the fiscal 
year in which electric energy generated from the facility 
is first eligible for such payments. 
(e) AMOUNT OF PAYMENT.—
(1) IN GENERAL.—Payments made by the Sec-
retary under this section to the owner or operator of 
a qualified hydroelectric facility shall be based on 
the number of kilowatt hours of hydroelectric energy 
generated by the facility during the incentive period. 
For any such facility, the amount of such payment 
shall be 1.8 cents per kilowatt hour (adjusted as 
provided in paragraph (2)), subject to the avail-
ability of appropriations under subsection (g), except 
that no facility may receive more than $750,000 in 
one calendar year. 
(2) ADJUSTMENTS.—The amount of the pay-
ment made to any person under this section as pro-
vided in paragraph (1) shall be adjusted for inflation 
for each fiscal year beginning after calendar year 
2003 in the same manner as provided in the provi-
sions of section 29(d)(2)(B) of the Internal Revenue 
Code of 1986, except that in applying such provi-
sions the calendar year 2003 shall be substituted for 
calendar year 1979.
112
(f) SUNSET.—No payment may be made under this 
section to any qualified hydroelectric facility after the ex-
piration of the period of 20 fiscal years beginning with 
the first full fiscal year occurring after the date of enact-
ment of this subtitle, and no payment may be made under 
this section to any such facility after a payment has been 
made with respect to such facility for a period of 10 fiscal 
years. 
(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary to carry 
out the purposes of this section $10,000,000 for each of 
the fiscal years 2004 through 2013. 
SEC. 3202. HYDROELECTRIC EFFICIENCY IMPROVEMENT. 
(a) INCENTIVE PAYMENTS.—The Secretary of En-
ergy shall make incentive payments to the owners or oper-
ators of hydroelectric facilities at existing dams to be used 
to make capital improvements in the facilities that are di-
rectly related to improving the efficiency of such facilities 
by at least 3 percent. 
(b) LIMITATIONS.—Incentive payments under this 
section shall not exceed 10 percent of the costs of the cap-
ital improvement concerned and not more than one pay-
ment may be made with respect to improvements at a sin-
gle facility. No payment in excess of $750,000 may be 
made with respect to improvements at a single facility.
113
(c) AUTHORIZATION.—There is authorized to be ap-
propriated to carry out this section not more than 
$10,000,000 for each of the fiscal years 2004 through 
2013. 
SEC. 3203. SMALL HYDROELECTRIC POWER PROJECTS. 
Section 408(a)(6) of the Public Utility Regulatory 
Policies Act of 1978 is amended by striking ‘‘April 20, 
1977’’ and inserting ‘‘March 4, 2003’’. 
SEC. 3204. INCREASED HYDROELECTRIC GENERATION AT 
EXISTING FEDERAL FACILITIES. 
(a) IN GENERAL.—The Secretary of Energy, in con-
sultation with the Secretary of the Interior and Secretary 
of the Army, shall conduct studies of the cost-effective op-
portunities to increase hydropower generation at existing 
federally-owned or operated water regulation, storage, and 
conveyance facilities. Such studies shall be completed with-
in two years after the date of enactment of this subtitle 
and transmitted to the Committee on Commerce of the 
House of Representatives and the Committee on Energy 
and Natural Resources of the Senate. An individual study 
shall be prepared for each of the Nation’s principal river 
basins. Each such study shall identify and describe with 
specificity the following matters: 
(1) Opportunities to improve the efficiency of 
hydropower generation at such facilities through, but
114
not limited to, mechanical, structural, or operational 
changes. 
(2) Opportunities to improve the efficiency of 
the use of water supplied or regulated by Federal 
projects where such improvement could, in the ab-
sence of legal or administrative constraints, make 
additional water supplies available for hydropower 
generation or reduce project energy use. 
(3) Opportunities to create additional hydro-
power generating capacity at existing facilities 
through, but not limited to, the construction of addi-
tional generating facilities, the uprating of genera-
tors and turbines, and the construction of pumped 
storage facilities. 
(4) Preliminary assessment of the costs and the 
economic and environmental consequences of such 
measures. 
(b) PREVIOUS STUDIES.—If studies of the type re-
quired by subsection (a) have been prepared by any agency 
of the United States and published within the five years 
prior to the date of enactment of this subtitle, the Sec-
retary of Energy may choose not to perform new studies 
and incorporate the information in such studies into the 
studies required by subsection (a).
115
(c) AUTHORIZATION.—There is authorized to be ap-
propriated such sums as may be necessary to carry out 
the purposes of this section.
TITLE IV—NUCLEAR MATTERS 
Subtitle A—Price-Anderson Act 
Amendments 
SEC. 4001. SHORT TITLE. 
This subtitle may be cited as the ‘‘Price-Anderson 
Amendments Act of 2003’’. 
SEC. 4002. EXTENSION OF INDEMNIFICATION AUTHORITY. 
(a) INDEMNIFICATION
OF NUCLEAR REGULATORY 
COMMISSION LICENSEES.—Section 170 c. of the Atomic 
Energy Act of 1954 (42 U.S.C. 2210(c)) is amended—
(1) in the subsection heading, by striking ‘‘LI-
CENSES’’ and inserting ‘‘LICENSEES’’; and 
(2) by striking ‘‘December 31, 2003’’ each 
place it appears and inserting ‘‘August 1, 2017’’. 
(b) INDEMNIFICATION OF DEPARTMENT OF ENERGY 
CONTRACTORS.—Section 170 d.(1)(A) of the Atomic En-
ergy Act of 1954 (42 U.S.C. 2210(d)(1)(A)) is amended 
by striking ‘‘December 31, 2004’’ and inserting ‘‘August 
1, 2017’’. 
(c) INDEMNIFICATION OF NONPROFIT EDUCATIONAL 
INSTITUTIONS.—Section 170 k. of the Atomic Energy Act 
of 1954 (42 U.S.C. 2210(k)) is amended by striking ‘‘Au-
116
gust 1, 2002’’ each place it appears and inserting ‘‘August 
1, 2017’’. 
SEC. 4003. MAXIMUM ASSESSMENT. 
Section 170 of the Atomic Energy Act of 1954 (42 
U.S.C. 2210) is amended—
(1) in subsection b.(1), in the second proviso of 
the third sentence—
(A) by striking ‘‘$63,000,000’’ and insert-
ing ‘‘$94,000,000’’; and 
(B) by striking ‘‘$10,000,000 in any 1 
year’’ and inserting ‘‘$15,000,000 in any 1 year 
(subject to adjustment for inflation under sub-
section t.)’’; and 
(2) in subsection t.—
(A) by inserting ‘‘total and annual’’ after 
‘‘amount of the maximum’’; 
(B) by striking ‘‘the date of the enactment 
of the Price-Anderson Amendments Act of 
1988’’ and inserting ‘‘July 1, 2002’’; and 
(C) by striking ‘‘such date of enactment’’ 
and inserting ‘‘July 1, 2002’’. 
SEC. 4004. DEPARTMENT OF ENERGY LIABILITY LIMIT. 
(a) INDEMNIFICATION OF DEPARTMENT OF ENERGY 
CONTRACTORS.—Section 170 d. of the Atomic Energy Act
117
of 1954 (42 U.S.C. 2210(d)) is amended by striking para-
graph (2) and inserting the following: 
‘‘(2) In an agreement of indemnification entered into 
under paragraph (1), the Secretary—
‘‘(A) may require the contractor to provide and 
maintain the financial protection of such a type and 
in such amounts as the Secretary shall determine to 
be appropriate to cover public liability arising out of 
or in connection with the contractual activity; and 
‘‘(B) shall indemnify the persons indemnified 
against such liability above the amount of the finan-
cial 
protection 
required, 
in 
the 
amount 
of 
$10,000,000,000 (subject to adjustment for inflation 
under subsection t.), in the aggregate, for all per-
sons indemnified in connection with the contract and 
for each nuclear incident, including such legal costs 
of the contractor as are approved by the Secretary.’’. 
(b) CONTRACT AMENDMENTS.—Section 170 d. of the 
Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is 
amended by striking paragraph (3) and inserting the fol-
lowing: 
‘‘(3) All agreements of indemnification under which 
the Department of Energy (or its predecessor agencies) 
may be required to indemnify any person under this sec-
tion shall be deemed to be amended, on the date of enact-
118
ment of the Price-Anderson Amendments Act of 2003, to 
reflect the amount of indemnity for public liability and any 
applicable financial protection required of the contractor 
under this subsection.’’. 
(c) LIABILITY LIMIT.—Section 170 e.(1)(B) of the 
Atomic Energy Act of 1954 (42 U.S.C. 2210(e)(1)(B)) is 
amended—
(1) by striking ‘‘the maximum amount of finan-
cial protection required under subsection b. or’’; and 
(2) by striking ‘‘paragraph (3) of subsection d., 
whichever amount is more’’ and inserting ‘‘para-
graph (2) of subsection d.’’. 
SEC. 4005. INCIDENTS OUTSIDE THE UNITED STATES. 
(a) AMOUNT
OF INDEMNIFICATION.—Section 170 
d.(5) of the Atomic Energy Act of 1954 (42 U.S.C. 
2210(d)(5)) is amended by striking ‘‘$100,000,000’’ and 
inserting ‘‘$500,000,000’’. 
(b) LIABILITY LIMIT.—Section 170 e.(4) of the 
Atomic Energy Act of 1954 (42 U.S.C. 2210(e)(4)) is 
amended by striking ‘‘$100,000,000’’ and inserting 
‘‘$500,000,000’’. 
SEC. 4006. REPORTS. 
Section 170 p. of the Atomic Energy Act of 1954 (42 
U.S.C. 2210(p)) is amended by striking ‘‘August 1, 1998’’ 
and inserting ‘‘August 1, 2013’’.
119
SEC. 4007. INFLATION ADJUSTMENT. 
Section 170 t. of the Atomic Energy Act of 1954 (42 
U.S.C. 2210(t)) is amended—
(1) by redesignating paragraph (2) as para-
graph (3); and 
(2) by adding after paragraph (1) the following:
‘‘(2) The Secretary shall adjust the amount of indem-
nification provided under an agreement of indemnification 
under subsection d. not less than once during each 5-year 
period following July 1, 2002, in accordance with the ag-
gregate percentage change in the Consumer Price Index 
since—
‘‘(A) that date, in the case of the first adjust-
ment under this paragraph; or 
‘‘(B) the previous adjustment under this para-
graph.’’. 
SEC. 4008. PRICE-ANDERSON TREATMENT OF MODULAR RE-
ACTORS. 
Section 170 b. of the Atomic Energy Act of 1954 (42 
U.S.C. 2210(b)) is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(5)(A) For purposes of this section only, the Com-
mission shall consider a combination of facilities described 
in subparagraph (B) to be a single facility having a rated 
capacity of 100,000 electrical kilowatts or more.
120
‘‘(B) A combination of facilities referred to in sub-
paragraph (A) is 2 or more facilities located at a single 
site, each of which has a rated capacity of 100,000 elec-
trical kilowatts or more but not more than 300,000 elec-
trical kilowatts, with a combined rated capacity of not 
more than 1,300,000 electrical kilowatts.’’. 
SEC. 4009. APPLICABILITY. 
The amendments made by sections 4003, 4004, and 
4005 do not apply to a nuclear incident that occurs before 
the date of enactment of this Act.
SEC. 4010. PROHIBITION ON ASSUMPTION BY UNITED 
STATES GOVERNMENT OF LIABILITY FOR 
CERTAIN FOREIGN ACCIDENTS. 
Section 170 of the Atomic Energy Act of 1954 (42 
U.S.C. 2210) is amended by adding at the end the fol-
lowing new subsection: 
‘‘u. PROHIBITION ON ASSUMPTION OF LIABILITY FOR 
CERTAIN FOREIGN ACCIDENTS.—Notwithstanding this 
section or any other provision of law, no officer of the 
United States or of any department, agency, or instrumen-
tality of the United States Government may enter into any 
contract or other arrangement, or into any amendment or 
modification of a contract or other arrangement, the pur-
pose or effect of which would be to directly or indirectly 
impose liability on the United States Government, or any
121
department, agency, or instrumentality of the United 
States Government, or to otherwise directly or indirectly 
require an indemnity by the United States Government, 
for nuclear accidents occurring in connection with the de-
sign, construction, or operation of a production facility or 
utilization facility in any country whose government has 
been identified by the Secretary of State as engaged in 
state sponsorship of terrorist activities (specifically includ-
ing any country the government of which, as of September 
11, 2001, had been determined by the Secretary of State 
under section 620A(a) of the Foreign Assistance Act of 
1961, section 6(j)(1) of the Export Administration Act of 
1979, or section 40(d) of the Arms Export Control Act 
to have repeatedly provided support for acts of inter-
national terrorism).’’.
SEC. 4011. SECURE TRANSFER OF NUCLEAR MATERIALS. 
(a) AMENDMENT.—Chapter 14 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2201–2210b) is amended by add-
ing at the end the following new section: 
‘‘SEC. 170C. SECURE TRANSFER OF NUCLEAR MA-
TERIALS.—
‘‘a. The Nuclear Regulatory Commission shall estab-
lish a system to ensure that, with respect to activities by 
any party pursuant to a license issued under this Act—
122
‘‘(1) materials described in subsection b., when 
transferred or received in the United States—
‘‘(A) from a facility licensed by the Nu-
clear Regulatory Commission; 
‘‘(B) from a facility licensed by an agree-
ment State; or 
‘‘(C) from a country with whom the United 
States has an agreement for cooperation under 
section 123, 
are accompanied by a manifest describing the type 
and amount of materials being transferred; 
‘‘(2) each individual transferring or accom-
panying the transfer of such materials has been sub-
ject to a security background check by appropriate 
Federal entities; and 
‘‘(3) such materials are not transferred to or 
received at a destination other than a facility li-
censed by the Nuclear Regulatory Commission or an 
agreement State under this Act or other appropriate 
Federal facility, or a destination outside the United 
States in a country with whom the United States 
has an agreement for cooperation under section 123. 
‘‘b. Except as otherwise provided by the Commission 
by regulation, the materials referred to in subsection a. 
are byproduct materials, source materials, special nuclear
123
materials, high-level radioactive waste, spent nuclear fuel, 
transuranic waste, and low-level radioactive waste (as de-
fined in section 2(16) of the Nuclear Waste Policy Act 
of 1982 (42 U.S.C. 10101(16))).’’. 
(b) REGULATIONS.—Not later than 1 year after the 
date of the enactment of this Act, and from time to time 
thereafter as it considers necessary, the Nuclear Regu-
latory Commission shall issue regulations identifying ra-
dioactive materials that, consistent with the protection of 
public health and safety and the common defense and se-
curity, are appropriate exceptions to the requirements of 
section 170C of the Atomic Energy Act of 1954, as added 
by subsection (a) of this section. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect upon the issuance of regu-
lations under subsection (b). 
(d) EFFECT ON OTHER LAW.—Nothing in this sec-
tion or the amendment made by this section shall waive, 
modify, or affect the application of chapter 51 of title 49, 
United States Code, part A of subtitle V of title 49, 
United States Code, part B of subtitle VI of title 49, 
United States Code, and title 23, United States Code. 
(e) TABLE OF SECTIONS AMENDMENT.—The table of 
sections for chapter 14 of the Atomic Energy Act of 1954 
is amended by adding at the end the following new item:
‘‘Sec. 170C. Secure transfer of nuclear materials.’’.
124
SEC. 4012. NUCLEAR FACILITY THREATS. 
(a) STUDY.—The President, in consultation with the 
Nuclear Regulatory Commission and other appropriate 
Federal, State, and local agencies and private entities, 
shall conduct a study to identify the types of threats that 
pose an appreciable risk to the security of the various 
classes of facilities licensed by the Nuclear Regulatory 
Commission under the Atomic Energy Act of 1954. Such 
study shall take into account, but not be limited to—
(1) the events of September 11, 2001; 
(2) an assessment of physical, cyber, bio-
chemical, and other terrorist threats; 
(3) the potential for attack on facilities by mul-
tiple coordinated teams of a large number of individ-
uals; 
(4) the potential for assistance in an attack 
from several persons employed at the facility; 
(5) the potential for suicide attacks; 
(6) the potential for water-based and air-based 
threats; 
(7) the potential use of explosive devices of con-
siderable size and other modern weaponry; 
(8) the potential for attacks by persons with a 
sophisticated knowledge of facility operations; 
(9) the potential for fires, especially fires of 
long duration; and
125
(10) the potential for attacks on spent fuel 
shipments by multiple coordinated teams of a large 
number of individuals. 
(b) SUMMARY AND CLASSIFICATION REPORT.—Not 
later than 180 days after the date of the enactment of 
this Act, the President shall transmit to the Congress and 
the Nuclear Regulatory Commission a report—
(1) summarizing the types of threats identified 
under subsection (a); and 
(2) classifying each type of threat identified 
under subsection (a), in accordance with existing 
laws and regulations, as either—
(A) involving attacks and destructive acts, 
including sabotage, directed against the facility 
by an enemy of the United States, whether a 
foreign government or other person, or other-
wise falling under the responsibilities of the 
Federal Government; or 
(B) involving the type of risks that Nu-
clear Regulatory Commission licensees should 
be responsible for guarding against. 
(c) FEDERAL ACTION REPORT.—Not later than 90 
days after the date on which a report is transmitted under 
subsection (b), the President shall transmit to the Con-
gress a report on actions taken, or to be taken, to address
126
the types of threats identified under subsection (b)(2)(A). 
Such report may include a classified annex as appropriate. 
(d) REGULATIONS.—Not later than 270 days after 
the date on which a report is transmitted under subsection 
(b), the Nuclear Regulatory Commission shall issue regu-
lations, including changes to the design basis threat, to 
ensure that licensees address the threats identified under 
subsection (b)(2)(B). 
(e) PHYSICAL SECURITY PROGRAM.—The Nuclear 
Regulatory Commission shall establish an operational 
safeguards response evaluation program that ensures that 
the physical protection capability and operational safe-
guards response for sensitive nuclear facilities, as deter-
mined by the Commission consistent with the protection 
of public health and the common defense and security, 
shall be tested periodically through Commission approved 
or designed, observed, and evaluated force-on-force exer-
cises to determine whether the ability to defeat the design 
basis threat is being maintained. For purposes of this sub-
section, the term ‘‘sensitive nuclear facilities’’ includes at 
a minimum commercial nuclear power plants, including 
associated spent fuel storage facilities, spent fuel storage 
pools and dry cask storage at closed reactors, independent 
spent fuel storage facilities and geologic repository oper-
127
ations areas, category I fuel cycle facilities, and gaseous 
diffusion plants. 
(f) CONTROL OF INFORMATION.—In carrying out this 
section, the President and the Nuclear Regulatory Com-
mission shall control the dissemination of restricted data, 
safeguards information, and other classified national secu-
rity information in a manner so as to ensure the common 
defense and security, consistent with chapter 12 of the 
Atomic Energy Act of 1954. 
SEC. 4013. UNREASONABLE RISK CONSULTATION. 
Section 170 of the Atomic Energy Act of 1954 (42 
U.S.C. 2210) is amended by adding at the end the fol-
lowing new subsection:
‘‘v. UNREASONABLE RISK CONSULTATION.—(1) Be-
fore entering into an agreement of indemnification under 
this section with respect to a utilization facility, the Nu-
clear Regulatory Commission shall consult with the Assist-
ant to the President for Homeland Security (or any suc-
cessor official) concerning whether the location of the pro-
posed facility and the design of that type of facility ensure 
that the facility provides for adequate protection of public 
health and safety if subject to a terrorist attack. 
‘‘(2) Before issuing a license or a license renewal for 
a sensitive nuclear facility, the Nuclear Regulatory Com-
mission shall consult with the Secretary of Homeland Se-
128
curity or his designee concerning the emergency evacu-
ation plan for the communities living near the sensitive 
nuclear facility. For purposes of this paragraph, the term 
‘sensitive nuclear facility’ has the meaning given that term 
in section 4012 of the Energy Policy Act of 2003.’’.
SEC. 4014. FINANCIAL ACCOUNTABILITY. 
(a) AMENDMENT.—Section 170 of the Atomic En-
ergy Act of 1954 (42 U.S.C. 2210) is amended by adding 
at the end the following new subsection: 
‘‘w. FINANCIAL
ACCOUNTABILITY.—(1) Notwith-
standing subsection d., the Attorney General may bring 
an action in the appropriate United States district court 
to recover from a contractor of the Secretary (or subcon-
tractor or supplier of such contractor) amounts paid by 
the Federal Government under an agreement of indem-
nification under subsection d. for public liability resulting 
from conduct which constitutes intentional misconduct of 
any corporate officer, manager, or superintendent of such 
contractor (or subcontractor or supplier of such con-
tractor). 
‘‘(2) The Attorney General may recover under para-
graph (1) an amount not to exceed the amount of the prof-
it derived by the defendant from the contract. 
‘‘(3) No amount recovered from any contractor (or 
subcontractor or supplier of such contractor) under para-
129
graph (1) may be reimbursed directly or indirectly by the 
Department of Energy. 
‘‘(4) Paragraph (1) shall not apply to any nonprofit 
entity conducting activities under contract for the Sec-
retary. 
‘‘(5) No waiver of a defense required under this sec-
tion shall prevent a defendant from asserting such defense 
in an action brought under this subsection. 
‘‘(6) The Secretary shall, by rule, define the terms 
‘profit’ and ‘nonprofit entity’ for purposes of this sub-
section. Such rulemaking shall be completed not later than 
180 days after the date of the enactment of this sub-
section.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall not apply to any agreement of indem-
nification entered into under section 170 d. of the Atomic 
Energy Act of 1954 (42 U.S.C. 2210(d)) before the date 
of the enactment of this Act. 
SEC. 4015. CIVIL PENALTIES. 
(a) REPEAL
OF AUTOMATIC REMISSION.—Section 
234A b. (2) of the Atomic Energy Act of 1954 (42 U.S.C. 
2282a(b)(2)) is amended by striking the last sentence. 
(b) LIMITATION FOR NONPROFIT INSTITUTIONS.—
Subsection d. of section 234A of the Atomic Energy Act
130
of 1954 (42 U.S.C. 2282a(d)) is amended to read as fol-
lows: 
‘‘d. Notwithstanding subsection a., a civil penalty for 
a violation under subsection a. shall not exceed the amount 
of any discretionary fee paid under the contract under 
which such violation occurs for any nonprofit contractor, 
subcontractor, or supplier—
‘‘(1) described in section 501(c)(3) of the Inter-
nal Revenue Code of 1986 and exempt from tax 
under section 501(a) of such Code; or 
‘‘(2) identified by the Secretary by rule as ap-
propriate to be treated the same under this sub-
section as an entity described in paragraph (1), con-
sistent with the purposes of this section.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall not apply to any violation of the Atomic 
Energy Act of 1954 occurring under a contract entered 
into before the date of the enactment of this Act. 
(d) RULEMAKING.—Not later than 6 months after 
the date of the enactment of this Act, the Secretary of 
Energy shall issue a rule for the implementation of the 
amendment made by subsection (b).
131
Subtitle B—Miscellaneous Matters 
SEC. 4021. LICENSES. 
Section 103 c. of the Atomic Energy Act of 1954 (42 
U.S.C. 2133(c)) is amended by inserting ‘‘from the au-
thorization to commence operations’’ after ‘‘forty years’’. 
SEC. 4022. NUCLEAR REGULATORY COMMISSION MEET-
INGS. 
If a quorum of the Nuclear Regulatory Commission 
gathers to discuss official Commission business the discus-
sions shall be recorded, and the Commission shall notify 
the public of such discussions within 15 days after they 
occur. The Commission shall promptly make a transcript 
of the recording available to the public on request, except 
to the extent that public disclosure is exempted or prohib-
ited by law. This section shall not apply to a meeting, 
within the meaning of that term under section 552b(a)(2) 
of title 5, United States Code.
SEC. 4023. NRC TRAINING PROGRAM. 
(a) IN GENERAL.—In order to maintain the human 
resource investment and infrastructure of the United 
States in the nuclear sciences, health physics, and engi-
neering fields, in accordance with the statutory authorities 
of the Commission relating to the civilian nuclear energy 
program, the Nuclear Regulatory Commission shall carry 
out a training and fellowship program to address short-
132
ages of individuals with critical nuclear safety regulatory 
skills. 
(b) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There are authorized to be 
appropriated to carry out this section $1,000,000 for 
each of fiscal years 2004 through 2007. 
(2) 
AVAILABILITY.—Funds 
made 
available 
under paragraph (1) shall remain available until ex-
pended.
SEC. 4024. COST RECOVERY FROM GOVERNMENT AGEN-
CIES. 
Section 161 w. of the Atomic Energy Act of 1954 
(42 U.S.C. 2201(w)) is amended—
(1) by striking ‘‘for or is issued’’ and all that 
follows through ‘‘1702’’ and inserting ‘‘to the Com-
mission for, or is issued by the Commission, a li-
cense or certificate’’; 
(2) by striking ‘‘483a’’ and inserting ‘‘9701’’; 
and 
(3) by striking ‘‘, of applicants for, or holders 
of, such licenses or certificates’’.
SEC. 4025. ELIMINATION OF PENSION OFFSET. 
Section 161 of the Atomic Energy Act of 1954 (42 
U.S.C. 2201) is amended by adding at the end the fol-
lowing:
133
‘‘y. exempt from the application of sections 
8344 and 8468 of title 5, United States Code, an 
annuitant who was formerly an employee of the 
Commission who is hired by the Commission as a 
consultant, if the Commission finds that the annu-
itant has a skill that is critical to the performance 
of the duties of the Commission.’’.
SEC. 4026. CARRYING OF FIREARMS BY LICENSEE EMPLOY-
EES. 
Section 161k. of the Atomic Energy Act of 1954 (42 
U.S.C. 2201(k)) is amended to read as follows: 
‘‘k. authorize such of its members, officers, and 
employees as it deems necessary in the interest of 
the common defense and security to carry firearms 
while in the discharge of their official duties. The 
Commission may also authorize—
‘‘(1) such of those employees of its con-
tractors and subcontractors (at any tier) en-
gaged in the protection of property under the 
jurisdiction of the United States located at fa-
cilities owned by or contracted to the United 
States or being transported to or from such fa-
cilities as it deems necessary in the interests of 
the common defense and security; and
134
‘‘(2) such of those employees of persons li-
censed or certified by the Commission (includ-
ing employees of contractors of licensees or cer-
tificate holders) engaged in the protection of 
property of (A) facilities owned or operated by 
a Commission licensee or certificate holder that 
are designated by the Commission, or (B) prop-
erty of significance to the common defense and 
security located at facilities owned or operated 
by a Commission licensee or certificate holder 
or being transported to or from such facilities; 
to carry firearms while in the discharge of their offi-
cial duties. A person authorized to carry firearms 
under this subsection may, while in the performance 
of, and in connection with, official duties, make ar-
rests without warrant for any offense against the 
United States committed in that person’s presence 
or for any felony cognizable under the laws of the 
United States if that person has reasonable grounds 
to believe that the individual to be arrested has com-
mitted or is committing such felony. An employee of 
a contractor or subcontractor or of a Commission li-
censee or certificate holder (or a contractor of a li-
censee or certificate holder) authorized to carry fire-
arms under this subsection may make such arrests
135
only when the individual to be arrested is within, 
or in direct flight from, the area of such offense. 
A person granted authority to make arrests by this 
subsection may exercise that authority only in the 
enforcement of laws regarding the property of the 
United States in the custody of the Department of 
Energy, the Nuclear Regulatory Commission, or a 
contractor of the Department of Energy or Nuclear 
Regulatory Commission or of a licensee or certificate 
holder of the Commission, laws applicable to facili-
ties owned or operated by a Commission licensee or 
certificate holder that are designated by the Com-
mission pursuant to this subsection and property of 
significance to the common defense and security that 
is in the custody of a licensee or certificate holder 
or a contractor of a licensee or certificate holder of 
the Commission, or any provision of this Act that 
may subject an offender to a fine, imprisonment, or 
both. The arrest authority conferred by this sub-
section is in addition to any arrest authority under 
other laws. The Secretary and the Commission, with 
the approval of the Attorney General, shall issue 
guidelines to implement this subsection;’’.
136
SEC. 4027. UNAUTHORIZED INTRODUCTION OF DANGEROUS 
WEAPONS. 
Section 229a. of the Atomic Energy Act of 1954 (42 
U.S.C. 2278a(a)) is amended by adding after ‘‘custody of 
the Commission’’ the following: ‘‘or subject to its licensing 
authority or to certification by the Commission under this 
Act or any other Act’’. 
SEC. 4028. SABOTAGE OF NUCLEAR FACILITIES OR FUEL. 
Section 236a. of the Atomic Energy Act of 1954 (42 
U.S.C. 2284(a)) is amended to read as follows: 
‘‘a. Any person who intentionally and willfully de-
stroys or causes physical damage to, or who intentionally 
and willfully attempts to destroy or cause physical damage 
to—
‘‘(1) any production facility or utilization facil-
ity licensed under this Act; 
‘‘(2) any nuclear waste storage, treatment, or 
disposal facility licensed under this Act; 
‘‘(3) any nuclear fuel for a utilization facility li-
censed under this Act or any spent nuclear fuel from 
such a facility; 
‘‘(4) any uranium enrichment or nuclear fuel 
fabrication facility licensed or certified by the Nu-
clear Regulatory Commission; or 
‘‘(5) any production, utilization, waste storage, 
waste treatment, waste disposal, uranium enrich-
137
ment, or nuclear fuel fabrication facility subject to 
licensing or certification under this Act during its 
construction where the destruction or damage 
caused or attempted to be caused could affect public 
health and safety during the operation of the facil-
ity, 
shall be fined not more than $1,000,000 or imprisoned 
for up to life in prison without parole, or both.’’. 
SEC. 4029. COOPERATIVE RESEARCH AND DEVELOPMENT 
AND SPECIAL DEMONSTRATION PROJECTS 
FOR THE URANIUM MINING INDUSTRY. 
(a) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy $10,000,000 for each of fiscal years 2004, 2005, and 
2006 for—
(1) cooperative, cost-shared agreements between 
the Department of Energy and domestic uranium 
producers to identify, test, and develop improved in 
situ leaching mining technologies, including low-cost 
environmental restoration technologies that may be 
applied to sites after completion of in situ leaching 
operations; and 
(2) funding for competitively selected dem-
onstration projects with domestic uranium producers 
relating to—
138
(A) enhanced production with minimal en-
vironmental impacts; 
(B) restoration of well fields; and 
(C) decommissioning and decontamination 
activities. 
(b) DOMESTIC URANIUM PRODUCER.—For purposes 
of this section, the term ‘‘domestic uranium producer’’ has 
the meaning given that term in section 1018(4) of the En-
ergy Policy Act of 1992 (42 U.S.C. 2296b–7(4)), except 
that the term shall not include any producer that has not 
produced uranium from domestic reserves on or after July 
30, 1998, in Colorado, Nebraska, Texas, Utah, or Wyo-
ming. 
SEC. 4030. URANIUM SALES. 
(a) RESTRICTIONS ON INVENTORY SALES.—Section 
3112(d) of the USEC Privatization Act (42 U.S.C. 
2297h–10(d)) is amended to read as follows: 
‘‘(d) INVENTORY SALES.—(1) In addition to the 
transfers and sales authorized under subsections (b), (c), 
and (e), the Secretary of Energy or the Secretary of the 
Army may transfer or sell uranium subject to paragraph 
(2). 
‘‘(2) Except as provided in subsections (b), (c), and 
(e), no sale or transfer of uranium shall be made under
139
this subsection by the Secretary of Energy or the Sec-
retary of the Army unless—
‘‘(A) the President determines that the material 
is not necessary for national security needs; 
‘‘(B) the price paid to the appropriate Sec-
retary, if the transaction is a sale, will not be less 
that the fair market value of the material; and 
‘‘(C) the sale or transfer to end users is made 
pursuant to a contract of at least 3 years duration. 
‘‘(3) The Secretary of Energy shall not make any 
transfer or sale of uranium under this subsection that 
would cause the total amount of uranium transferred or 
sold pursuant to this subsection that is delivered for con-
sumption by end users to exceed—
‘‘(A) 3 million pounds of U3O8 equivalent in fis-
cal year 2004, 2005, 2006, 2007, 2008, or 2009; 
‘‘(B) 5 million pounds of U3O8 equivalent in 
fiscal year 2010 or 2011; 
‘‘(C) 7 million pounds of U3O8 equivalent in fis-
cal year 2012; and 
‘‘(D) 10 million pounds of U3O8 equivalent in 
fiscal year 2013 or any fiscal year thereafter. 
‘‘(4) For the purposes of this subsection, the recovery 
of uranium from uranium bearing materials transferred 
or sold by the Secretary of Energy or the Secretary of
140
the Army to the domestic uranium industry shall be the 
preferred method of making uranium available. The recov-
ered uranium shall be counted against the annual max-
imum deliveries set for in this section, when such uranium 
is sold to end users.’’. 
(b) TRANSFERS TO CORPORATION.—Section 3112 of 
the USEC Privatization Act (42 U.S.C. 2297h–10) is fur-
ther amended by adding at the end the following new sub-
section: 
‘‘(g) 
TRANSFERS
TO
CORPORATION.—Notwith-
standing subsection (b)(2) and subsection (d)(2), the Sec-
retary may transfer up to 9,550 metric tons of uranium 
to the Corporation to replace uranium that the Secretary 
transferred to the Corporation on or about June 30, 1993, 
April 20, 1998, and May 18, 1998, and that does not meet 
commercial specifications.’’.
(c) SERVICES.—Section 3112 of the USEC Privatiza-
tion Act (42 U.S.C. 2297h–10) is further amended by 
adding at the end the following new subsection: 
‘‘(h) SERVICES.—(1) Notwithstanding any other pro-
vision of this section, if the Secretary determines that if 
the Corporation has failed, or may fail, to perform any 
obligation under the Agreement between the Department 
of Energy and the Corporation dated June 17, 2002, and 
as amended thereafter, which failure could result in termi-
141
nation of the Agreement, the Secretary shall notify the 
Committee on Energy and Commerce of the House of 
Representatives and the Committee on Energy and Nat-
ural Resources of the Senate, in such a manner that af-
fords the Committees an opportunity to comment, prior 
to a determination by the Secretary whether termination, 
waiver, or modification of the Agreement is required. The 
Secretary is authorized to take such action as he deter-
mines necessary under the Agreement to terminate, waive, 
or modify provisions of the Agreement to achieve its pur-
poses. 
‘‘(2) Notwithstanding any other provision of this sec-
tion, if the Secretary determines in accordance with Arti-
cle 2D of the Agreement between the Department of En-
ergy and the Corporation dated June 17, 2002, and as 
amended thereafter, to transition operation of the Padu-
cah gaseous diffusion plant, the Secretary may provide 
uranium enrichment services in a manner consistent with 
Article 2D of such Agreement.’’. 
(d) REPORT.—Within 3 years after the date of enact-
ment of this Act, the Secretary shall report to the Con-
gress on the implementation of this section. The report 
shall include a discussion of available excess uranium in-
ventories, all sales or transfers made by the Secretary of 
Energy or the Secretary of the Army, the impact of such
142
sales or transfers on the domestic uranium industry, the 
spot market uranium price, and the national security in-
terests of the United States, and any steps taken to reme-
diate any adverse impacts of such sales or transfers. 
SEC. 4031. MEDICAL ISOTOPE PRODUCTION. 
Section 134 of the Atomic Energy Act of 1954 (42 
U.S.C. 2160d) is amended—
(1) by redesignating subsection b. as subsection 
f.; 
(2) by inserting after subsection a. the fol-
lowing: 
‘‘b. The Commission may issue a license authorizing 
the export (including shipment to and use at intermediate 
and ultimate consignees specified in the license) to a Re-
cipient Country of highly enriched uranium for medical 
isotope production if, in addition to any other require-
ments of this Act, the Commission determines that—
‘‘(1) a Recipient Country that supplies an as-
surance letter to the United States Government in 
connection with the Commission’s consideration of 
the export license application has informed the 
United States Government that any intermediate 
consignees and the ultimate consignee specified in 
the application are required to use such highly en-
143
riched uranium solely to produce medical isotopes; 
and 
‘‘(2) the highly enriched uranium for medical 
isotope production will be irradiated only in a reac-
tor in a Recipient Country that—
‘‘(A) uses an alternative nuclear reactor 
fuel; or 
‘‘(B) is the subject of an agreement with 
the United States Government to convert to an 
alternative nuclear reactor fuel when such fuel 
can be used in that reactor. 
‘‘c. Applications to the Commission for licenses au-
thorizing the export to a Recipient Country of highly en-
riched uranium for medical isotope production shall be 
subject to subsection b., and subsection a. shall not be ap-
plicable to such exports. 
‘‘d. The Commission is authorized to specify, by rule-
making or decision in connection with an export license 
application, that a country other than a Recipient Country 
may receive exports of highly enriched uranium for med-
ical isotope production in accordance with the same cri-
teria established by subsection b. for exports to a Recipi-
ent Country, upon the Commission’s finding that such ad-
ditional country is a party to the Treaty on the Non-
proliferation of Nuclear Weapons and the Convention on
144
the Physical Protection of Nuclear Material and will re-
ceive such highly enriched uranium pursuant to an agree-
ment with the United States concerning peaceful uses of 
nuclear energy. 
‘‘e. The Commission shall review the adequacy of 
physical protection requirements that are currently appli-
cable to the transportation of highly enriched uranium for 
medical isotope production. If it determines that addi-
tional physical protection measures are necessary, includ-
ing any limits that the Commission finds are necessary 
on the quantity of highly enriched uranium contained in 
a single shipment for medical isotope production, the Com-
mission shall impose such requirements, as license condi-
tions or through other appropriate means.’’; and 
(3) in subsection f., as so redesignated by para-
graph (1) of this section—
(A) by striking ‘‘and’’ at the end of para-
graph (2); 
(B) by striking the period at the end of 
paragraph (3)(B) and inserting a semicolon; 
and 
(C) by adding at the end the following: 
‘‘(4) the term ‘medical isotopes’ means radio-
active isotopes, including Molybdenum 99, Iodine 
131, and Xenon 133, that are used to produce radio-
145
pharmaceuticals for diagnostic or therapeutic proce-
dures on patients, or in connection with research 
and development of radiopharmaceuticals; 
‘‘(5) the term ‘highly enriched uranium for 
medical isotope production’ means highly enriched 
uranium contained in, or for use in, targets to be ir-
radiated for the sole purpose of producing medical 
isotopes; 
‘‘(6) the term ‘radiopharmaceuticals’ means ra-
dioactive isotopes containing byproduct material 
combined with chemical or biological material that 
are designed to accumulate temporarily in a part of 
the body, for therapeutic purposes or for enabling 
the production of a useful image of the appropriate 
body organ or function for use in diagnosis of med-
ical conditions; and 
‘‘(7) the term ‘Recipient Country’ means Can-
ada, Belgium, France, Germany, and the Nether-
lands.’’.
SEC. 
4032. 
HIGHLY 
ENRICHED 
URANIUM 
DIVERSION 
THREAT REPORT. 
Section 307 of the Energy Reorganization Act of 
1974 (42 U.S.C. 5877) is amended by adding at the end 
the following new subsection:
146
‘‘(d) Not later than 6 months after the date of the 
enactment of this Act, the Secretary of Energy shall trans-
mit to the Congress a report with recommendations on re-
ducing the threat resulting from the theft or diversion of 
highly enriched uranium. Such report shall address—
‘‘(1) monitoring of highly enriched uranium 
supplies at any commercial companies who have ac-
cess to substantial amounts of highly enriched ura-
nium; 
‘‘(2) assistance to companies described in para-
graph (1) with security and personnel checks; 
‘‘(3) acceleration of the process of blending 
down excess highly enriched uranium into low-en-
riched uranium; 
‘‘(4) purchasing highly enriched uranium (ex-
cept for production of medical isotopes); 
‘‘(5) paying the cost of shipping highly enriched 
uranium; 
‘‘(6) accelerating the conversion of commercial 
research reactors and energy reactors to the use of 
low-enriched uranium fuel where they now use high-
ly enriched uranium fuel; and 
‘‘(7) minimizing, and encouraging transparency 
in, the further enrichment of low-enriched uranium 
to highly enriched uranium.’’.
147
SEC. 4033. WHISTLEBLOWER PROTECTION. 
(a) DEFINITION OF EMPLOYER.—Section 211(a)(2) 
of the Energy Reorganization Act of 1974 (42 U.S.C. 
5851(a)(2)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (C); 
(2) in subparagraph (D), by striking ‘‘that is 
indemnified’’ and all that follows through ‘‘12344.’’ 
and inserting ‘‘or the Commission; and’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(E) the Department of Energy and the Com-
mission.’’. 
(b) DE NOVO REVIEW.—Subsection (b) of such sec-
tion 211 is amended by adding at the end the following 
new paragraph: 
‘‘(4) If the Secretary has not issued a final decision 
within 180 days after the filing of a complaint under para-
graph (1), and there is no showing that such delay is due 
to the bad faith of the claimant, the claimant may bring 
an action at law or equity for de novo review in the appro-
priate district court of the United States, which shall have 
jurisdiction over such an action without regard to the 
amount in controversy.’’.
148
TITLE V—VEHICLES AND FUELS 
Subtitle A—Energy Policy Act 
Amendments 
SEC. 5011. CREDIT FOR SUBSTANTIAL CONTRIBUTION TO-
WARD NONCOVERED FLEETS. 
Section 508 of the Energy Policy Act of 1992 (42 
U.S.C. 13258) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(e) CREDIT FOR SUBSTANTIAL CONTRIBUTION TO-
WARD USE OF DEDICATED VEHICLES IN NONCOVERED 
FLEETS.—
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) MEDIUM
OR
HEAVY
DUTY
VEHI-
CLE.—The term ‘medium or heavy duty vehicle’ 
means a dedicated vehicle that—
‘‘(i) in the case of a medium duty ve-
hicle, has a gross vehicle weight rating of 
more than 8,500 pounds but not more 
than 14,000 pounds; or 
‘‘(ii) in the case of a heavy duty vehi-
cle, has a gross vehicle weight rating of 
more than 14,000 pounds. 
‘‘(B) SUBSTANTIAL
CONTRIBUTION.—The 
term ‘substantial contribution’ means not less
149
than $15,000 in cash or in kind services, as de-
termined by the Secretary. 
‘‘(2) ALLOCATION OF CREDITS.—The Secretary 
shall allocate a credit to a fleet or covered person 
under this section if the fleet or person makes a sub-
stantial contribution toward the acquisition and use 
of dedicated vehicles or neighborhood electric vehi-
cles by a person that owns, operates, leases, or oth-
erwise controls a fleet that is not covered by this 
title. 
‘‘(3) MULTIPLE
CREDITS
FOR
MEDIUM
AND 
HEAVY DUTY VEHICLES.—The Secretary shall issue 
2 full credits to a fleet or covered person under this 
section if the fleet or person makes a substantial 
contribution toward the acquisition and use of a me-
dium or heavy duty vehicle. 
‘‘(4) USE OF CREDITS.—At the request of a 
fleet or covered person allocated a credit under this 
subsection, the Secretary shall, for the year in which 
the acquisition of the dedicated vehicle or neighbor-
hood electric vehicle is made, treat that credit as the 
acquisition of 1 alternative fueled vehicle that the 
fleet or covered person is required to acquire under 
this title.
150
‘‘(5) LIMITATION.—Except as provided in para-
graph (3), no more than 1 credit shall be allocated 
under this subsection for each vehicle.’’. 
SEC. 5012. CREDIT FOR ALTERNATIVE FUEL INFRASTRUC-
TURE. 
Section 508 of the Energy Policy Act of 1992 (42 
U.S.C. 13258), as amended by this Act, is further amend-
ed by adding at the end the following new subsection: 
‘‘(f) CREDIT
FOR INVESTMENT
IN ALTERNATIVE 
FUEL INFRASTRUCTURE.—
‘‘(1) DEFINITION.—In this subsection, the term 
‘qualifying infrastructure’ means—
‘‘(A) equipment required to refuel or re-
charge alternative fueled vehicles; 
‘‘(B) facilities or equipment required to 
maintain, repair, or operate alternative fueled 
vehicles; 
‘‘(C) training programs, educational mate-
rials, or other activities necessary to provide in-
formation regarding the operation, mainte-
nance, or benefits associated with alternative 
fueled vehicles; and 
‘‘(D) such other activities the Secretary 
considers to constitute an appropriate expendi-
ture in support of the operation, maintenance,
151
or further widespread adoption of or utilization 
of alternative fueled vehicles. 
‘‘(2) ALLOCATION OF CREDITS.—The Secretary 
shall allocate a credit to a fleet or covered person 
under this section for investment in qualifying infra-
structure if the qualifying infrastructure is open to 
the general public during regular business hours. 
‘‘(3) AMOUNT.—For the purposes of credits 
under this subsection—
‘‘(A) 1 credit shall be equal to a minimum 
investment of $25,000 in cash or in kind serv-
ices, as determined by the Secretary; and 
‘‘(B) except in the case of a Federal or 
State fleet, no part of the investment may be 
provided by Federal or State funds. 
‘‘(4) USE OF CREDITS.—At the request of a 
fleet or covered person allocated a credit under this 
subsection, the Secretary shall, for the year in which 
the investment is made, treat that credit as the ac-
quisition of 1 alternative fueled vehicle that the fleet 
or covered person is required to acquire under this 
title.’’. 
SEC. 5013. ALTERNATIVE FUELED VEHICLE REPORT.
(a) DEFINITIONS.—In this section:
152
(1) ALTERNATIVE
FUEL.—The term ‘‘alter-
native fuel’’ has the meaning given the term in sec-
tion 301 of the Energy Policy Act of 1992 (42 
U.S.C. 13211). 
(2) ALTERNATIVE
FUELED
VEHICLE.—The 
term ‘‘alternative fueled vehicle’’ has the meaning 
given the term in section 301 of the Energy Policy 
Act of 1992 (42 U.S.C. 13211). 
(3) LIGHT DUTY MOTOR VEHICLE.—The term 
‘‘light duty motor vehicle’’ has the meaning given 
the term in section 301 of the Energy Policy Act of 
1992 (42 U.S.C. 13211). 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(b) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Secretary shall submit to 
Congress a report on the effect that titles III, IV, and 
V of the Energy Policy Act of 1992 have had on the devel-
opment of alternative fueled vehicle technology, the avail-
ability of alternative fueled vehicles in the market, the cost 
of light duty motor vehicles that are alternative fueled ve-
hicles, and the availability, cost, and use of alternative 
fuels and biodiesel. Such report shall include any rec-
ommendations of the Secretary for legislation concerning 
the alternative fueled vehicle requirements under the En-
153
ergy Policy Act of 1992, and shall examine, discuss, and 
determine the following: 
(1) The number of alternative fueled vehicles 
acquired by fleets or covered persons required to ac-
quire alternative fueled vehicles. 
(2) The extent to which fleets subject to alter-
native fueled vehicle acquisition requirements have 
met those requirements through the use of fuel mix-
tures that contain at least 20 percent biodiesel pur-
suant to section 312 of the Energy Policy Act of 
1992 (42 U.S.C. 13220). 
(3) The amount of alternative fuel used in al-
ternative fueled vehicles acquired by fleets required 
to acquire alternative fueled vehicles under the En-
ergy Policy Act of 1992. 
(4) The amount of petroleum displaced by the 
use of alternative fueled vehicles acquired by fleets 
or covered persons. 
(5) The cost of compliance with vehicle acquisi-
tion requirements under the Energy Policy Act of 
1992, and the benefits of using such fuel and vehi-
cles. 
(6) Projections of the amount of biodiesel, the 
number of alternative fueled vehicles, and the 
amount of alternative fuel that will be used over the
154
next decade by fleets required to acquire alternative 
fueled vehicles under the Energy Policy Act of 1992. 
(7) The existence of any obstacles to increased 
use of alternative fuel and biodiesel in vehicles ac-
quired or maintained by fleets required to acquire al-
ternative fueled vehicles under the Energy Policy 
Act of 1992, and the benefits of using such fuel and 
vehicles. 
SEC. 5014. ALLOCATION OF INCREMENTAL COSTS. 
Section 303(c) of the Energy Policy Act of 1992 (42 
U.S.C. 13212(c)) is amended by striking ‘‘may’’ and in-
serting ‘‘shall’’.
Subtitle B—FreedomCAR and 
Hydrogen Fuel Program 
SEC. 5021. SHORT TITLE. 
This subtitle may be cited as the ‘‘FreedomCAR and 
Hydrogen Fuel Act of 2003’’ or ‘‘Freedom Act’’. 
SEC. 5022. FINDINGS, PURPOSE, AND DEFINITIONS. 
(a) FINDINGS.—Congress finds that—
(1) the United States is currently dependent on 
foreign sources for a majority of its petroleum sup-
ply; 
(2) the Nation’s dependence on foreign petro-
leum is expected to increase in the decades ahead;
155
(3) it is in the national interest to reduce de-
pendence on imported petroleum by accelerating 
Federal efforts to partner with the private sector by 
deploying hydrogen fuel cell vehicles and the refuel-
ing infrastructure to support those vehicles; 
(4) it is in the national interest to develop a 
light duty vehicle fleet that substantially reduces de-
pendence on foreign petroleum, assists the Nation in 
meeting its requirements under the Clean Air Act 
and reduces greenhouse gas emissions in a manner 
that maintains the freedom of consumers to pur-
chase the kinds of vehicles they wish to drive and 
the 
freedom 
to 
refuel 
those 
vehicles 
safely, 
affordably, and conveniently; 
(5) hydrogen fuel cell vehicles and supporting 
infrastructure have the potential to accelerate the 
parallel advancement of fuel cells for stationary 
power that will enhance the resiliency, reliability, 
and environmental performance of the Nation’s elec-
tricity infrastructure; 
(6) ancillary benefits for the Nation, including 
the acceleration of fuel cell technology for consumer 
electronics and portable power, are likely to result 
from the advancement of hydrogen fuel cell vehicles 
and supporting infrastructure;
156
(7) there is a need for deployment of bridging 
technologies including gasoline electric and diesel 
electric hybrid drive systems, advanced combustion 
engines including clean diesel, electric battery, and 
power electronics, and alternative fuels and other 
technology that can contribute to reducing petroleum 
demand and decreasing air emissions; 
(8) low-cost hydrogen production, storage, and 
delivery facilities are essential to the success of the 
FreedomCAR Vehicle Programs; and 
(9) work should be performed in a manner that 
is cognizant of consumer acceptance, passenger safe-
ty, and marketplace success. 
(b) PURPOSE.—The purpose of this subtitle is to re-
duce significantly the Nation’s dependence on imported 
petroleum, enhance the production and conservation of en-
ergy, and reduce air emissions through support of the fol-
lowing Department of Energy actions: 
(1) Programs and activities leading to—
(A) a commitment by automakers and hy-
drogen energy and energy infrastructure pro-
viders no later than year 2015 to offer safe, af-
fordable, and technically viable hydrogen fuel 
cell vehicles and refueling infrastructure in the 
mass consumer market; and
157
(B) a commitment by the automakers and 
hydrogen energy and energy infrastructure pro-
viders to the deployment of hydrogen fuel cell 
vehicles and affordable and convenient refueling 
infrastructure no later than year 2020. 
(2) A program to establish international codes, 
standards, and safety protocols for the use and man-
ufacture of domestic and foreign products. 
(3) Interagency, intergovernmental, and inter-
national programs and activities for education, infor-
mation exchange, and cooperation. 
(c) DEFINITIONS.—In this subtitle: 
(1) The term ‘‘Advisory Committee’’ means the 
Hydrogen Technical and Fuel Cell Advisory Com-
mittee established under section 5028 of this Act. 
(2) The term ‘‘Department’’ means the Depart-
ment of Energy. 
(3) The term ‘‘FreedomCAR’’ is the acronym 
for a Department initiative in automotive research 
and development entitled ‘‘Freedom Cooperative 
Automotive Research’’. 
(4) The term ‘‘fuel cell’’ means a device that di-
rectly converts the chemical energy of a fuel and an 
oxidant into electricity by an electrochemical process 
taking place at separate electrodes in the device.
158
(5) The term ‘‘infrastructure’’ means the equip-
ment, systems, or facilities used to produce, dis-
tribute, deliver, or store hydrogen and other ad-
vanced clean fuels. 
(6) The term ‘‘light duty vehicle’’ means a car 
or truck, classified by the Department of Transpor-
tation as a Class I or IIA vehicle. 
(7) The term ‘‘Secretary’’ means the Secretary 
of Energy. 
SEC. 5023. PLAN; REPORT. 
(a) PLAN.—The Secretary, in consultation with other 
appropriate Federal agencies, shall prepare a comprehen-
sive interagency coordination plan for activities under this 
subtitle. This plan may be provided as part of the Presi-
dent’s annual budget submission to Congress. 
(b) REPORT.—Not later than one year after the date 
of enactment of this subtitle, and biennially thereafter, the 
Secretary shall transmit to the Congress a report on the 
status of programs and activities under this subtitle. This 
report may be provided as part of the President’s annual 
budget submission to Congress. This report may include, 
in addition to any views and recommendations of the Sec-
retary— 
(1) an assessment of the effectiveness of the 
programs and activities under this subtitle and the
159
extent to which the purposes in section 5022(b) have 
been met; and 
(2) the potential for interagency, intergovern-
mental, international, or private sector collaboration 
opportunities and activities under this subtitle. 
SEC. 5024. PUBLIC-PRIVATE PARTNERSHIP. 
(a) PROGRAM.—In partnership with the private sec-
tor, the Secretary shall conduct a program designed to fa-
cilitate the production and conservation of energy and the 
deployment of energy infrastructure, including all of the 
following: 
(1) Hydrogen energy. 
(2) Fuel cells. 
(3) Advanced vehicle technologies. 
(4) Clean fuels in addition to hydrogen. 
(5) Codes, standards, and safety protocols. 
(b) PROGRAM GOALS.—
(1) AUTOMAKERS.—For automakers the goals 
of the program are—
(A) to enable a commitment by auto-
makers no later than year 2015 to offer safe, 
affordable, and technically viable hydrogen fuel 
cell vehicles into commerce; and 
(B) to enable production, delivery, and ac-
ceptance by consumers of model year 2020 hy-
160
drogen fuel cell and other vehicles that will 
have— 
(i) a range of at least three hundred 
miles; 
(ii) improved performance and ease of 
driving; 
(iii) met all light duty safety regula-
tions created under section 30111 of title 
49, United States Code; and 
(iv) when compared to light duty vehi-
cles in model year 2003—
(I) a fuel economy that is two 
and one half times the equivalent fuel 
economy of these vehicles as regulated 
under the Motor Vehicle Information 
and Cost Savings Act, or about 70 
miles per gallon, and 
(II) near zero emissions of air 
pollutants regulated under the Clean 
Air Act. 
(2) HYDROGEN ENERGY AND ENERGY INFRA-
STRUCTURE.—For hydrogen energy and energy in-
frastructure the goals of the program include, but 
are not limited to, a commitment not later than
161
2015 that will enable the deployment by 2020 of in-
frastructure to provide—
(A) safe and convenient refueling; 
(B) activities leading to widespread avail-
ability of hydrogen from domestic energy 
sources through—
(i) production, including consideration 
of cost-effective production from domestic 
energy sources; 
(ii) delivery, including transmission by 
pipeline and other distribution methods for 
hydrogen; and 
(iii) storage, including storage in sur-
face transportation vehicles; 
(C) hydrogen for fuel cells, internal com-
bustion engines, and other energy conversion 
devices for portable, stationary, and transpor-
tation applications; and 
(D) other technologies consistent with the 
Department’s plan. 
(3) FUEL CELLS.—The program for fuel cells 
and their portable, stationary, and transportation 
applications may include, but is not limited to—
(A) a safe, economical, and environ-
mentally sound hydrogen fuel cell;
162
(B) a fuel cell for light duty and other ve-
hicles; and 
(C) other technologies consistent with the 
Department’s plan. 
(4) ADVANCED VEHICLE TECHNOLOGIES.—The 
program for advanced vehicle technologies may in-
clude, but is not limited to—
(A) advanced combustion; 
(B) materials; 
(C) energy storage; 
(D) control systems; and 
(E) other technologies consistent with the 
Department’s plan. 
(5) CODES, STANDARDS, AND SAFETY PROTO-
COLS.—(A) The Department’s program for codes, 
standards, and safety protocols shall strive towards 
establishment of international codes, standards, and 
safety protocols for the use and manufacture of do-
mestic and foreign products. 
(B) The Secretary may represent the United 
States interests with respect to activities and pro-
grams under this subsection, collaborating with the 
Secretary of Transportation, and in consultation 
with other appropriate governments and nongovern-
mental organizations including the following:
163
(i) Other Federal, State, regional, and 
local governments and their representatives. 
(ii) Industry and its representatives, in-
cluding members of the energy and transpor-
tation industries. 
(iii) Foreign governments and their rep-
resentatives including international organiza-
tions. 
(c) FEDERAL FUNDING.—(1) The Secretary shall 
carry out the programs and activities under this section 
consistent with the generally applicable Federal laws and 
regulations governing awards of financial assistance, con-
tracts, or other agreements, and may include funding to 
nationally recognized university-based research centers. 
(2) The Secretary shall endeavor to avoid duplication 
or displacement of other research and development pro-
grams and activities. 
(d) COST SHARING.—(1) The Secretary shall require 
a commitment from non-Federal sources of at least 20 
percent of the cost of proposed programs under this sec-
tion. 
(2) The Secretary may reduce or eliminate the cost 
sharing requirement under paragraph (1)—
(A) if the Secretary determines that the activity 
is of a basic or fundamental nature which is vital to
164
the success of the program and unlikely to occur in 
a timely manner without reduction or elimination of 
the cost-sharing requirement; or 
(B) for technical analyses, outreach programs, 
and other activities including educational programs 
under section 5027 of this subtitle that the Sec-
retary does not expect to result in a marketable 
product. 
SEC. 5025. DEPLOYMENT. 
(a) DEPLOYMENT PROGRAM.—In partnership with 
the private sector, the Secretary shall conduct a program 
to facilitate the deployment of—
(1) hydrogen energy and energy infrastructure; 
(2) fuel cells; 
(3) advanced vehicle technologies; 
(4) clean fuels in addition to hydrogen; and 
(5) codes, standards, and safety protocols. 
(b) PROGRAM GOALS.—(1) For automakers, the 
goals of the program are— 
(A) to enable a decision by automakers no later 
than year 2015 to offer safe, affordable, and tech-
nically viable hydrogen fuel cell vehicles into com-
merce; and
165
(B) to enable production and delivery to, and 
acceptance by, consumers of model year 2020 hydro-
gen fuel cell and other vehicles that will have—
(i) a range of at least 300 miles; 
(ii) improved performance and ease of driv-
ing; 
(iii) met all light duty safety regulations 
created under section 30111 of title 49, United 
States Code; and 
(iv) when compared to light duty vehicles 
in model year 2003—
(I) a fuel economy that is two and one 
half times the equivalent fuel economy of 
these vehicles under the Motor Vehicle In-
formation and Cost Savings Act, or about 
70 miles per gallon; and 
(II) near zero emissions of air pollut-
ants regulated under the Clean Air Act. 
(2) For hydrogen energy and energy infrastructure 
the goals of the program include, but are not limited to, 
a commitment not later than 2015 that will enable the 
deployment by 2020 of infrastructure to provide—
(A) safe, convenient, and affordable refueling; 
(B) widespread availability of hydrogen from 
domestic energy sources through—
166
(i) production, including consideration of 
cost-effective production from domestic energy 
sources; 
(ii) delivery, including transmission by 
pipeline and other distribution methods, for hy-
drogen in its gaseous, liquid, and solid states; 
and 
(iii) storage, including storage in surface 
transportation vehicles; 
(C) hydrogen for fuel cells, internal combustion 
engines, and other energy conversion devices for 
portable, stationary, and transportation applications; 
and 
(D) other technologies consistent with the De-
partment’s plan. 
(c) FUEL CELLS.—The program for fuel cells and 
their portable, stationary, and transportation applications 
may include but is not limited to—
(1) a safe, economical, and environmentally 
sound hydrogen fuel cell; 
(2) a fuel cell for light duty and other vehicles; 
and 
(3) other technologies consistent with the De-
partment’s plan.
167
(d) ADVANCED VEHICLE TECHNOLOGIES.—The pro-
gram for advanced vehicle technologies may include, but 
is not limited to—
(1) advanced combustion; 
(2) materials; 
(3) energy storage; 
(4) control systems; and 
(5) other technologies consistent with the De-
partment’s plan. 
(e) FEDERAL FUNDING.—The Secretary shall carry 
out the program and activities under this section con-
sistent with laws and regulations governing awards of fi-
nancial assistance, contracts or other agreements, and 
may include funding to nationally recognized university-
based research centers. The Secretary shall endeavor to 
avoid duplication or displacement of other programs. 
(f) COST SHARING.—
(1) IN GENERAL.—The Secretary shall require 
a commitment from non-Federal sources of at least 
50 percent of the costs directly relating to a dem-
onstration under this section. 
(2) REDUCTION.—The Secretary may reduce 
the non-Federal requirement under paragraph (1) if 
the Secretary determines that—
168
(A) the reduction is appropriate consid-
ering the technological risks involved; and 
(B) the terms and conditions are con-
sistent with the Agreement on Subsidies and 
Countervailing Measures. 
(3) COOPERATIVE AGREEMENTS
WITH GOV-
ERNMENTS.—The Secretary may enter into coopera-
tive and cost sharing agreements with Federal, 
State, or local governments to deploy vehicles, vehi-
cle systems, and refueling infrastructure using hy-
drogen, fuel cells, or other advanced technologies in 
government facilities or fleet transportation systems. 
SEC. 5026. ASSESSMENT AND TRANSFER. 
(a) PROGRAM.—The Secretary may conduct a pro-
gram to transfer technology to the private sector under 
this subtitle. 
(b) DISCLOSURE.—The Secretary may protect from 
disclosure, for up to 5 years after the information was de-
veloped, any information developed pursuant to a cost 
shared transaction, or subagreement thereunder, entered 
into under this subtitle to advance the goals of the pro-
grams, which developed information is of a character that 
it would be protected from disclosure under section 
552(b)(4) of title 5, United States Code, if this developed
169
information had been obtained from a person other than 
a Federal agency. 
SEC. 5027. INTERAGENCY TASK FORCE. 
(a) ESTABLISHMENT.—Not later than 120 days after 
the date of enactment of this Act, the President shall es-
tablish an interagency task force chaired by the Secretary 
or his designee with representatives from each of the fol-
lowing: 
(1) The Office of Science and Technology Pol-
icy within the Executive Office of the President. 
(2) The Department of Transportation. 
(3) The Department of Defense. 
(4) The Department of Commerce (including 
the National Institute of Standards and Tech-
nology). 
(5) The Environmental Protection Agency. 
(6) The National Aeronautics and Space Ad-
ministration. 
(7) Other Federal agencies as the Secretary de-
termines appropriate. 
(b) DUTIES OF THE INTERAGENCY TASK FORCE.—
(1) PLANNING.—The task force shall coordinate 
the implementation of the interagency plan in sec-
tion 5023(a), and work towards deployment of—
170
(A) a safe, economical, and environ-
mentally sound fuel infrastructure, including an 
infrastructure that supports buses and other 
fleet transportation; 
(B) fuel cells in government and other ap-
plications, including portable, stationary, and 
transportation applications; and 
(C) distributed power generation, including 
the generation of combined heat, power, and 
clean fuels including hydrogen. 
(2) INFORMATION EXCHANGE.—(A) The inter-
agency task force shall coordinate interagency pro-
grams and activities including the exchange of infor-
mation. 
(B) The heads of all agencies, including those 
whose agencies are not represented on the inter-
agency task force, shall cooperate with and furnish 
information to the interagency task force, the Advi-
sory Committee, and the Department. 
(C) The information exchange may consist of 
workshops, publications, conferences, and a database 
for use by the public and private sectors. The inter-
agency task force is expected to—
171
(i) foster the exchange of generic, non-
proprietary information and technology among 
industry, academia, and government; 
(ii) update the inventory and assessment of 
hydrogen, fuel cells, and other advanced tech-
nologies, including their commercial capability 
for the economic and environmentally safe pro-
duction, distribution, delivery, storage, and use 
of clean fuels including hydrogen; 
(iii) integrate technical and other informa-
tion made available as a result of the programs 
and activities under this subtitle; 
(iv) promote the marketplace introduction 
of infrastructure for hydrogen and other clean 
fuel vehicles; and 
(v) conduct an education program to pro-
vide FreedomCAR and hydrogen fuel informa-
tion to potential end-users. 
SEC. 5028. ADVISORY COMMITTEE. 
(a) ESTABLISHMENT.—The Hydrogen Technical and 
Fuel Cell Advisory Committee is established to advise the 
Secretary on the programs and activities under this sub-
title. 
(b) MEMBERSHIP.—
172
(1) MEMBERS.—The Advisory Committee is 
comprised of not fewer than 12 nor more than 25 
members. These members shall be appointed by the 
Secretary to represent domestic industry, academia, 
professional societies, government agencies, and fi-
nancial, environmental, and other appropriate orga-
nizations based on the Department’s assessment of 
the technical and other qualifications of committee 
members and the needs of the Advisory Committee. 
(2) TERMS.—The term of a member of the Ad-
visory Committee shall not be more than 3 years. 
The Secretary may appoint members of the Advisory 
Committee in a manner that allows the terms of the 
members serving at any time to expire at spaced in-
tervals so as to ensure continuity in the functioning 
of the Advisory Committee. A member of the Advi-
sory Committee whose term is expiring may be re-
appointed. 
(3) CHAIRPERSON.—The Advisory Committee 
shall have a chairperson, who is elected by the mem-
bers from among their number. 
(c) REVIEW.—The Advisory Committee shall review 
and make recommendations to the Secretary on—
(1) the implementation of programs and activi-
ties under this subtitle;
173
(2) the safety, economical, and environmental 
consequences of technologies for the production, dis-
tribution, delivery, storage, or use of hydrogen en-
ergy and fuel cells; and 
(3) the interagency coordination plan under sec-
tion 5023(a) of this Act. 
(d) RESPONSE TO RECOMMENDATIONS.—The Sec-
retary shall consider, but need not adopt, any rec-
ommendations of the Advisory Committee under sub-
section (c). 
(e) ADVISORY
COMMITTEE
SUPPORT.—The Sec-
retary shall provide resources necessary in the judgment 
of the Secretary for the Advisory Committee to carry out 
its responsibilities under this subtitle. 
SEC. 5029. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to carry out 
the purposes of this subtitle including programs for light 
duty vehicles, in addition to any amounts made available 
for these purposes under other Acts—
(1) $273,500,000 for fiscal year 2004; 
(2) $325,000,000 for fiscal year 2005; 
(3) $375,000,000 for fiscal year 2006; 
(4) $400,000,000 for fiscal year 2007; and 
(5) $425,000,000 for fiscal year 2008.
174
SEC. 5030. FUEL CELL PROGRAM AT NATIONAL PARKS. 
The Secretary of Energy, in cooperation with the Sec-
retary of Interior and the National Park Service, is au-
thorized to establish a program to provide matching funds 
to assist in the deployment of fuel cells at one or more 
prominent National Parks. The Secretary of Energy shall 
transmit to Congress within 1 year, and annually there-
after, a report describing any activities taken pursuant to 
such program. The report shall address whether activities 
taken pursuant to such program reduce the environmental 
impacts of energy use at National Parks. There are au-
thorized to be appropriated $2,000,000 for each of fiscal 
years 2004 through 2010 to carry out the purposes of this 
section. 
SEC. 5030A. ADVANCED POWER SYSTEM TECHNOLOGY IN-
CENTIVE PROGRAM. 
(a) PROGRAM.—The Secretary of Energy is author-
ized to establish an Advanced Power System Technology 
Incentive Program to support the deployment of certain 
advanced power system technologies and to improve and 
protect certain critical governmental, industrial, and com-
mercial processes. Funds provided under this section shall 
be used by the Secretary to make incentive payments to 
eligible owners or operators of advanced power system 
technologies to increase power generation through en-
hanced operational, economic, and environmental perform-