429
(2) For fiscal year 2007, $140,000,000.
(3) For fiscal year 2008, $150,000,000.
(4) For fiscal year 2009, $160,000,000.
(5) For fiscal year 2010, $165,000,000.
Subtitle D—Renewable Energy
SEC. 935. FINDINGS.
Congress makes the following findings:
(1) Renewable energy is a growth industry
around the world. However, the United States has
not been investing as heavily as other countries, and
is losing market share.
(2) Since 1996, the United States has lost sig-
nificant market share in the solar industry, dropping
from 44 percent of the world market to 13 percent
in 2003.
(3) 
In 
2003, 
Japan 
spent 
more 
than
$200,000,000 on solar research, development, dem-
onstration, and commercial application and other in-
centives, 
and 
Germany 
provided 
more 
than
$750,000,000 in low cost financing for solar photo-
voltaic projects. This compares to United States
Government spending of $139,000,000 in 2003 for
research, development, demonstration, and commer-
cial application and other incentives.
430
(4) Germany and Japan each had domestic
photovoltaic industries that employed more than
10,000 people in 2003, while in the same year the
United States photovoltaics industry employed only
2,000 people.
(5) The United States is becoming increasingly
dependent on imported energy.
(6) The high cost of fossil fuels is hurting the
United States economy.
(7) Small reductions in peak demand can result
in very large reductions in price, according to energy
market experts.
(8) Although the United States has only 2 per-
cent of the world’s oil reserves and 3 percent of the
world’s natural gas reserves, our Nation’s renewable
energy resources are vast and largely untapped.
(9) Renewable energy can reduce the demand
for imported energy, reducing costs and decreasing
the variability of energy prices.
(10) By using domestic renewable energy re-
sources, the United States can reduce the amount of
money sent into unstable regions of the world and
keep it in the United States.
(11) By supporting renewable energy research
and development, and funding demonstration and
431
commercial application programs for renewable en-
ergy, the United States can create an export indus-
try and improve the balance of trade.
(12) Renewable energy can significantly reduce
the environmental impacts of energy production.
SEC. 936. DEFINITIONS.
For purposes of this subtitle:
(1) BIOBASED PRODUCT.—The term ‘‘biobased
product’’ means a product determined by the Sec-
retary to be a commercial or industrial product
(other than food or feed) that is—
(A) composed, in whole or in significant
part, of—
(i) biological products;
(ii) renewable domestic agricultural
materials (including plant, animal, and
marine materials); or
(iii) forestry materials; and
(B) produced in connection with the con-
version of biomass to energy or fuel.
(2) CELLULOSIC
BIOMASS.—The term ‘‘cel-
lulosic 
biomass’’ 
means 
a 
crop 
containing
lignocellulose or hemicellulose, including barley
grain, grapeseed, forest thinnings, rice bran, rice
hulls, rice straw, soybean matter, sugarcane bagasse,
432
and any crop grown specifically for the purpose of
producing cellulosic feedstocks.
SEC. 937. PROGRAMS.
(a) IN GENERAL.—The Secretary shall conduct pro-
grams of renewable energy research, development, dem-
onstration, and commercial application, including activi-
ties described in this subtitle. Such programs shall be fo-
cused on the following objectives:
(1) Increasing the conversion efficiency of all
forms of renewable energy through improved tech-
nologies.
(2) Decreasing the cost of renewable energy
generation and delivery.
(3) Promoting the diversity of the energy sup-
ply.
(4) Decreasing the Nation’s dependence on for-
eign energy supplies.
(5) Improving United States energy security.
(6) Decreasing the environmental impact of en-
ergy-related activities.
(7) Increasing the export of renewable genera-
tion equipment from the United States.
(b) GOALS.—
(1) INITIAL
GOALS.—In accordance with the
performance plan and report requirements in section
433
4 of the Government Performance Results Act of
1993, the Secretary shall transmit to the Congress,
along with the President’s annual budget request for
fiscal year 2007, a report containing outcome meas-
ures with explicitly stated cost and performance
baselines. The measures shall specify renewable en-
ergy performance goals, with quantifiable 5-year cost
and energy savings target levels, for wind power,
photovoltaics, solar thermal systems (including con-
centrating and solar hot water), geothermal energy,
biomass-based systems, biofuels, and hydropower,
and any other such goals the Secretary considers ap-
propriate.
(2) SUBSEQUENT
TRANSMITTALS.—The Sec-
retary shall transmit to the Congress, along with the
President’s annual budget request for each fiscal
year after 2007, a report containing—
(A) a description, including quantitative
analysis, of progress in achieving performance
goals transmitted under paragraph (1), as com-
pared to the baselines transmitted under para-
graph (1); and
(B) any amendments to such goals.
(c) PUBLIC INPUT.—The Secretary shall consider ad-
vice from industry, universities, and other interested par-
434
ties through seeking comments in the Federal Register
and other means before transmitting each report under
subsection (b).
SEC. 938. SOLAR.
(a) PROGRAM.—The Secretary shall conduct a pro-
gram of research, development, demonstration, and com-
mercial application for solar energy, including—
(1) photovoltaics;
(2) solar hot water and solar space heating; and
(3) concentrating solar power.
(b) BUILDING
INTEGRATION.—For photovoltaics,
solar hot water, and space heating, the Secretary shall
conduct research, development, demonstration, and com-
mercial application to support the development of products
that can be easily integrated into new and existing build-
ings.
(c) MANUFACTURE.—The Secretary shall conduct re-
search, development, demonstration, and commercial ap-
plication of manufacturing techniques that can produce
low-cost, high-quality solar systems.
SEC. 939. BIOENERGY PROGRAMS.
(a) PROGRAM.—The Secretary shall conduct a pro-
gram of research, development, demonstration, and com-
mercial application for cellulosic biomass, including—
(1) biomass conversion to heat and electricity;
435
(2) biomass conversion to liquid fuels;
(3) biobased products;
(4) integrated biorefineries that may produce
heat, electricity, liquid fuels, and biobased products;
(5) cross-cutting activities on feedstocks and
enzymes; and
(6) life-cycle economic analysis.
(b) BIOFUELS AND BIOBASED PRODUCTS.—The ob-
jectives of the biofuels and biobased products programs
under paragraphs (2), (3), and (4) of subsection (a), and
of the biorefinery demonstration program under sub-
section (c), shall be to develop, in partnership with
industry—
(1) advanced biochemical and thermochemical
conversion technologies capable of making high-value
biobased chemical feedstocks and products, to sub-
stitute for petroleum-based feedstocks and products,
biofuels that are price-competitive with gasoline or
diesel in either internal combustion engines or fuel
cell-powered vehicles, and biobased products from a
variety of feedstocks, including grains, cellulosic bio-
mass, and agricultural byproducts; and
(2) advanced biotechnology processes capable of
making biofuels and biobased products, with empha-
436
sis on development of biorefinery technologies, in-
cluding enzyme-based processing technologies.
(c) BIOMASS INTEGRATED REFINERY DEMONSTRA-
TION.—
(1) IN GENERAL.—The Secretary shall conduct
a program to demonstrate the commercial applica-
tion of at least 5 integrated biorefineries. The Sec-
retary shall ensure geographical distribution of bio-
refinery demonstrations under this subsection. The
Secretary shall not provide more than $100,000,000
under this subsection for any single biorefinery dem-
onstration. The Secretary shall award the biorefinery
demonstrations so as to encourage—
(A) the demonstration of a wide variety of
cellulosic biomass feedstocks;
(B) the commercial application of biomass
technologies for a variety of uses, including—
(i) liquid transportation fuels;
(ii) high-value biobased chemicals;
(iii) substitutes for petroleum-based
feedstocks and products; and
(iv) energy in the form of electricity
or useful heat; and
(C) the demonstration of the collection and
treatment of a variety of biomass feedstocks.
437
(2) PROPOSALS.—Not later than 6 months
after the date of enactment of this Act, the Sec-
retary shall solicit proposals for demonstration of
advanced biorefineries. The Secretary shall select
only proposals that—
(A) demonstrate that the project will be
able to operate profitably without direct Federal
subsidy after initial construction costs are paid;
and
(B) enable the biorefinery to be easily rep-
licated.
(d) UNIVERSITY BIODIESEL PROGRAM.—The Sec-
retary shall establish a demonstraton program to deter-
mine the feasibility of the operation of diesel electric power
generators, using biodiesel fuels, with ratings as high as
B100 at a university electric generation facility. The pro-
gram shall examine—
(1) heat rates of diesel fuels with large quan-
tities of cellulosic content;
(2) the reliability of operation of various fuel
blends;
(3) performance in cold or freezing weather;
(4) stability of fuel after extended storage; and
(5) other criteria, as determined by the Sec-
retary.
438
(e) GRANTS.—Of the funds authorized to be appro-
priated for activities authorized under this section, not less
than $5,000,000 for each fiscal year shall be made avail-
able for grants to Historically Black Colleges and Univer-
sities, Tribal Colleges, and Hispanic-Serving Institutions.
SEC. 940. WIND.
(a) PROGRAM.—The Secretary shall conduct a pro-
gram of research, development, demonstration, and com-
mercial application for wind energy, including—
(1) low speed wind energy;
(2) offshore wind energy;
(3) testing and verification; and
(4) distributed wind energy generation.
(b) FACILITY.—The Secretary shall construct and op-
erate a research and testing facility capable of testing the
largest wind turbines that are expected to be manufac-
tured in the next 15 years. The Secretary shall consider
the need for testing offshore turbine designs in siting the
facility. All private users of the facility shall be required
to pay the Department all costs associated with their use
of the facility, including capital costs prorated at normal
business amortization rates.
(c) REGIONAL FIELD VERIFICATION PROGRAM.—Of
the funds authorized to be appropriated for activities au-
thorized under this section, not less than $4,000,000 for
439
each fiscal year shall be made available for the Regional
Field Verification Program of the Department.
SEC. 941. GEOTHERMAL.
The Secretary shall conduct a program of research,
development, demonstration, and commercial application
for geothermal energy. The program shall focus on devel-
oping improved technologies for reducing the costs of geo-
thermal energy installations, including technologies for—
(1) improving detection of geothermal re-
sources;
(2) decreasing drilling costs;
(3) decreasing maintenance costs through im-
proved materials;
(4) increasing the potential for other revenue
sources, such as mineral production; and
(5) increasing the understanding of reservoir
life cycle and management.
SEC. 942. PHOTOVOLTAIC DEMONSTRATION PROGRAM.
(a) IN GENERAL.—The Secretary shall establish a
program of grants to States to demonstrate advanced pho-
tovoltaic technology.
(b) REQUIREMENTS.—(1) To receive funding under
the program under this section, a State must submit a
proposal that demonstrates, to the satisfaction of the Sec-
440
retary, that the State will meet the requirements of sub-
section (f).
(2) If a State has received funding under this section
for the preceding year, the State must demonstrate, to the
satisfaction of the Secretary, that it complied with the re-
quirements of subsection (f) in carrying out the program
during that preceding year, and that it will do so in the
future.
(3) Except as provided in subsection (c), each State
submitting a qualifying proposal shall receive funding
under the program based on the proportion of United
States population in the State according to the 2000 cen-
sus. In each fiscal year, the portion of funds attributable
under this paragraph to States that have not submitted
qualifying proposals in the time and manner specified by
the Secretary shall be distributed pro rata to the States
that have submitted qualifying proposals in the specified
time and manner.
(c) COMPETITION.—If more than $80,000,000 is
available for the program under this section for any fiscal
year, the Secretary shall allocate 75 percent of the funds
available according to subsection (b), and shall award the
remaining 25 percent on a competitive basis to the States
with the proposals the Secretary considers most likely to