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teristics of components, equipment, systems, or struc-
tures associated with the prototype nuclear reactor;
(3) other research or development activities that
may be required on the part of the Nuclear Regu-
latory Commission in order to review a license appli-
cation for the prototype nuclear reactor; and
(4) an estimate of the budgetary requirements as-
sociated with the licensing strategy.
(c) ONGOING INTERACTION.—The Secretary shall seek
the active participation of the Nuclear Regulatory Commis-
sion throughout the duration of the Project to—
(1) avoid design decisions that will compromise
adequate safety margins in the design of the reactor
or impair the accessibility of nuclear safety-related
components of the prototype reactor for inspection
and maintenance;
(2) develop tools to facilitate inspection and
maintenance needed for safety purposes; and
(3) develop risk-based criteria for any future
commercial development of a similar reactor architec-
tures.
SEC. 635. PROJECT TIMELINES AND AUTHORIZATION OF
APPROPRIATIONS.
(a) TARGET DATE TO COMPLETE THE FIRST PROJECT
PHASE.—Not later than September 30, 2011—
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(1) the Secretary shall select the technology to be
used by the Project for high-temperature hydrogen
production and the initial design parameters for the
prototype nuclear plant; or
(2) submit to Congress a report establishing an
alternative date for making the selection.
(b) DESIGN COMPETITION
FOR SECOND PROJECT
PHASE.—
(1) IN GENERAL.—The Secretary, acting through
the Idaho National Laboratory, shall fund not more
than 4 teams for not more than 2 years to develop de-
tailed proposals for competitive evaluation and selec-
tion of a single proposal for a final design of the pro-
totype nuclear reactor.
(2) SYSTEMS INTEGRATION.—The Secretary may
structure Project activities in the second project phase
to use the lead industrial partner of the competitively
selected design under paragraph (1) in a systems in-
tegration role for final design and construction of the
Project.
(c) TARGET DATE TO COMPLETE PROJECT CONSTRUC-
TION.—Not later than September 30, 2021—
(1) the Secretary shall complete construction and
begin operations of the prototype nuclear reactor and
associated energy or hydrogen facilities; or
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(2) submit to Congress a report establishing an
alternative date for completion.
(d) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Secretary for research
and construction activities under this subtitle (including for
transfer to the Nuclear Regulatory Commission for activi-
ties under section 634 as appropriate)—
(1) $1,250,000,000 for the period of fiscal years
2006 through 2015; and
(2) such sums as are necessary for each of fiscal
years 2016 through 2021.
TITLE VII—VEHICLES AND
FUELS
Subtitle A—Existing Programs
SEC. 701. USE OF ALTERNATIVE FUELS BY DUAL-FUELED
VEHICLES.
Section 400AA(a)(3) of the Energy Policy and Con-
servation Act (42 U.S.C. 6374(a)(3)) is amended by strik-
ing subparagraph (E) and inserting the following:
‘‘(E)(i) Dual fueled vehicles acquired pursuant to this
section shall be operated on alternative fuels unless the Sec-
retary determines that an agency qualifies for a waiver of
the requirements of this section for vehicles operated by the
agency in a particular geographic area in which—
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‘‘(I) the alternative fuel otherwise required to be
used in the vehicle is not reasonably available to re-
tail purchasers of the fuel, as certified to the Sec-
retary by the head of the agency; or
‘‘(II) the cost of the alternative fuel otherwise re-
quired to be used in the vehicle is unreasonably more
expensive compared to gasoline, as certified to the
Secretary by the head of the agency.
‘‘(ii) The Secretary shall monitor compliance with this
subparagraph by all fleets receiving a waiver.
‘‘(iii) The Secretary shall report annually to Congress
on the extent to which the requirements of this subpara-
graph are being achieved, including information on annual
reductions achieved from the use of petroleum-based fuels
and the problems, if any, encountered in acquiring alter-
native fuels.’’.
SEC. 702. FUEL USE CREDITS.
(a) IN GENERAL.—Section 312 of the Energy Policy
Act of 1992 (42 U.S.C. 13220) is amended to read as fol-
lows:
‘‘SEC. 312. FUEL USE CREDITS.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) BIODIESEL.—The term ‘biodiesel’ means a
diesel fuel substitute produced from nonpetroleum re-
newable resources that meets the registration require-
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ments for fuels and fuel additives established by the
Environmental Protection Agency under section 211
of the Clean Air Act (42 U.S.C. 7545).
‘‘(2) QUALIFYING
VOLUME.—The term ‘quali-
fying volume’ means—
‘‘(A) in the case of biodiesel, when used as
a component of fuel containing at least 20 per-
cent biodiesel by volume—
‘‘(i) 450 gallons; or
‘‘(ii) if the Secretary determines by
rule that the average annual alternative fuel
use in light duty vehicles by fleets and cov-
ered persons exceeds 450 gallons or gallon
equivalents, the amount of the average an-
nual alternative fuel use; and
‘‘(B) in the case of an alternative fuel, the
amount of the fuel determined by the Secretary
to have an equivalent energy content to the
amount of biodiesel defined as a qualifying vol-
ume under subparagraph (A).
‘‘(b) ALLOCATION.—
‘‘(1) IN GENERAL.—The Secretary shall allocate
1 credit under this section to a fleet or covered person
for each qualifying volume of alternative fuel or bio-
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diesel purchased for use in a vehicle operated by the
fleet.
‘‘(2) LIMITATION.—The Secretary may not allo-
cate a credit under this section for the purchase of an
alternative fuel or biodiesel that is required by Fed-
eral or State law.
‘‘(3) DOCUMENTATION.—A fleet or covered person
seeking a credit under paragraph (1) shall provide
written documentation to the Secretary supporting
the allocation of the credit to the fleet or covered per-
son.
‘‘(c) USE.—At the request of a fleet or covered person
allocated a credit under subsection (b), the Secretary shall,
for the year in which the purchase of a qualifying volume
is made, consider the purchase to be the acquisition of 1
alternative fueled vehicle that the fleet or covered person is
required to acquire under this title, title IV, or title V.
‘‘(d) TREATMENT.—A credit provided to a fleet or cov-
ered person under this section shall be considered to be a
credit under section 508.
‘‘(e) ISSUANCE OF RULE.—Not later than 180 days
after the date of enactment of the Energy Policy Act of
2005, the Secretary shall issue a rule establishing proce-
dures for the implementation of this section.’’.
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(b) TABLE OF CONTENTS AMENDMENT.—The table of
contents of the Energy Policy Act of 1992 is amended by
striking the item relating to section 312 and inserting the
following:
‘‘Sec. 312. Fuel use credits.’’.
SEC. 703. INCREMENTAL COST ALLOCATION.
Section 303(c) of the Energy Policy Act of 1992 (42
U.S.C. 13212(c)) is amended by striking ‘‘may’’ and insert-
ing ‘‘shall’’.
SEC. 704. ALTERNATIVE COMPLIANCE AND FLEXIBILITY.
(a) ALTERNATIVE COMPLIANCE.—Title V of the En-
ergy Policy Act of 1992 (42 U.S.C. 13251 et seq.) is
amended—
(1) by redesignating section 514 (42 U.S.C.
13264) as section 515; and
(2) by inserting after section 513 (42 U.S.C.
13263) the following:
‘‘SEC. 514. ALTERNATIVE COMPLIANCE.
‘‘(a) APPLICATION FOR WAIVER.—Any covered person
subject to section 501 and any State subject to section
507(o) may petition the Secretary for a waiver of the appli-
cable requirements of section 501 or 507(o).
‘‘(b) GRANT OF WAIVER.—The Secretary shall grant
a waiver of the requirements of section 501 or 507(o) on
a showing that the fleet owned, operated, leased, or other-
wise controlled by the State or covered person—
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‘‘(1) will achieve a reduction in the annual con-
sumption of petroleum fuels by the fleet equal to—
‘‘(A) the reduction in consumption of petro-
leum that would result from 100 percent cumu-
lative compliance with the fuel use requirements
of section 501; or
‘‘(B) in the case of an entity covered under
section 507(o), a reduction equal to the annual
consumption by the State entity of alternative
fuels if all of the cumulative alternative fuel ve-
hicles of the State entity given credit under sec-
tion 508 were to use alternative fuel 100 percent
of the time; and
‘‘(2) is in compliance with all applicable vehicle
emission standards established by the Administrator
of the Environmental Protection Agency under the
Clean Air Act (42 U.S.C. 7401 et seq.).
‘‘(c) REVOCATION OF WAIVER.—The Secretary shall
revoke any waiver granted under this section if the State
or covered person fails to comply with subsection (b).’’.
(b) CREDITS.—Section 508(a) of the Energy Policy
Act of 1992 (42 U.S.C. 13258(a)) is amended—
(1) by striking ‘‘The Secretary’’ and inserting
the following:
‘‘(1) The Secretary’’; and
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(2) by adding at the end the following:
‘‘(2) Not later than January 31, 2007, the Sec-
retary shall—
‘‘(A) allocate credit in an amount to be de-
termined by the Secretary for—
‘‘(i) acquisition of—
‘‘(I) a light-duty hybrid electric
vehicle;
‘‘(II) a plug-in hybrid electric ve-
hicle;
‘‘(III) a fuel cell electric vehicle;
‘‘(IV) a medium- or heavy-duty
hybrid electric vehicle;
‘‘(V) a neighborhood electric vehi-
cle; or
‘‘(VI) a medium- or heavy-duty
dedicated vehicle; and
‘‘(ii) investment in qualified alter-
native fuel infrastructure or nonroad equip-
ment, as determined by the Secretary; and
‘‘(B) allocate more than 1, but not to exceed
5, credits for investment in an emerging tech-
nology relating to any vehicle described in sub-
paragraph (A) to encourage—
‘‘(i) a reduction in petroleum demand;