IB
Union Calendar No. 97
107TH CONGRESS
1ST SESSION
H. R. 2587
[Report No. 107–162, Part I]
To enhance energy conservation, provide for security and diversity in the
energy supply for the American people, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 23, 2001
Mr. TAUZIN (for himself and 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 Ways and Means, Science, Transpor-
tation and Infrastructure, the Budget, and Education and the Workforce,
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
JULY 25, 2001
Reported from the Committee on Energy and Commerce with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
JULY 25, 2001
Referral to the Committees on Ways and Means, Science, Transportation and
Infrastructure, the Budget, and Education and the Workforce extended
for a period ending not later than July 25, 2001
JULY 25, 2001
The Committees on Ways and Means, Science, Transportation and Infrastruc-
ture, the Budget, and Education and the Workforce discharged; com-
mitted to the Committee of the Whole House on the State of the Union
and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on July 23, 2001]
A BILL
To enhance energy conservation, 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 AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘En-
ergy Advancement and Conservation Act of 2001’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title and table of contents.
TITLE I—ENERGY CONSERVATION
Subtitle A—Reauthorization of Federal Energy Conservation Programs
Sec. 101. Authorization of appropriations.
Subtitle B—Federal Leadership in Energy Conservation
Sec. 121. Federal facilities and national energy security.
Sec. 122. Enhancement and extension of authority relating to Federal energy sav-
ings performance contracts.
Sec. 123. Clarification and enhancement of authority to enter utility incentive
programs for energy savings.
Sec. 124. Federal central air conditioner and heat pump efficiency.
Sec. 125. Federal Energy Bank.
Sec. 126. Advanced building efficiency testbed.
Sec. 127. Use of interval data in Federal buildings.
Sec. 128. Review of Energy Savings Performance Contract Program.
Sec. 129. Capitol complex.
Subtitle C—State Programs
Sec. 131. Amendments to State energy programs.
Sec. 132. Reauthorization of energy conservation program for schools and hos-
pitals.
Sec. 133. Amendments to Weatherization Assistance Program.
Sec. 134. LIHEAP.
Sec. 135. High performance public buildings.
Subtitle D—Energy Efficiency for Consumer Products
Sec. 141. Energy Star program.
Sec. 142. Labeling of energy efficient appliances.
Sec. 143. Appliance standards.
Subtitle E—Energy Efficient Vehicles
Sec. 151. High occupancy vehicle exception.
Sec. 152. Railroad efficiency.
Sec. 153. Biodiesel fuel use credits.
Sec. 154. Mobile to stationary source trading.
Subtitle F—Other Provisions
Sec. 161. Review of regulations to eliminate barriers to emerging energy tech-
nology.
Sec. 162. Advanced idle elimination systems.
Sec. 163. Study of benefits and feasibility of oil bypass filtration technology.
Sec. 164. Gas flare study.
Sec. 165. Telecommuting study.
TITLE II—AUTOMOBILE FUEL ECONOMY
Sec. 201. Average fuel economy standards for nonpassenger automobiles.
Sec. 202. Consideration of prescribing different average fuel economy standards
for nonpassenger automobiles.
Sec. 203. Dual fueled automobiles.
Sec. 204. Fuel economy of the Federal fleet of automobiles.
Sec. 205. Hybrid vehicles and alternative vehicles.
Sec. 206. Federal fleet petroleum-based nonalternative fuels.
Sec. 207. Study of feasibility and effects of reducing use of fuel for automobiles.
TITLE III—NUCLEAR ENERGY
Subtitle A—General Provisions
Sec. 301. Budget status of Nuclear Waste Fund.
Sec. 302. License period.
Sec. 303. Cost recovery from Government agencies.
Sec. 304. Depleted uranium hexafluoride.
Sec. 305. Nuclear Regulatory Commission meetings.
Subtitle B—Domestic Uranium Fuel Cycle
Sec. 311. Portsmouth cold standby.
Sec. 312. Paducah funding.
Sec. 313. Research and development.
Sec. 314. Short-term reliability of domestic uranium enrichment capacity.
Sec. 315. Cooperative research and development and special demonstration
projects for the uranium mining industry.
Sec. 316. Maintenance of a viable domestic uranium conversion industry.
Sec. 317. Prohibition of commercial sales of uranium by the United States until
2009.
Sec. 318. Paducah decontamination and decommissioning plan.
TITLE IV—HYDROELECTRIC ENERGY
Sec. 401. Alternative conditions and fishways.
Sec. 402. FERC data on hydroelectric licensing.
TITLE V—CLEAN COAL
Sec. 501. Short title.
Sec. 502. Findings.
Subtitle A—Accelerated Clean Coal Power Production Program
Sec. 511. Definitions.
Sec. 512. Cost and performance goals.
Sec. 513. Study.
Sec. 514. Production and generation of coal-based power.
Sec. 515. Authorization of appropriations.
Sec. 516. Clean coal power initiative.
Sec. 517. Financial assistance.
Subtitle B—Credit for Emission Reductions and Efficiency Improvements in
Existing Coal-Based Electricity Generation Facilities
Sec. 521. Credit for investment in qualifying clean coal technology.
Sec. 522. Credit for production from a qualifying clean coal technology unit.
Subtitle C—Incentives for Early Commercial Applications of Advanced Clean
Coal Technologies
Sec. 531. Credit for investment in qualifying advanced clean coal technology.
Sec. 532. Credit for production from qualifying advanced clean coal technology.
Sec. 533. Risk pool for qualifying advanced clean coal technology.
Subtitle D—Treatment of Certain Governmental and Other Entities
Sec. 541. Credits for certain organizations and governmental units.
TITLE VI—FUELS
Sec. 601. Tank draining during transition to summertime RFG.
Sec. 602. Gasoline blendstock requirements.
Sec. 603. Boutique fuels.
Sec. 604. Funding for MTBE contamination.
TITLE VII—RENEWABLE ENERGY
Sec. 701. Assessment of renewable energy resources.
Sec. 702. Renewable energy production incentive.
TITLE VIII—PIPELINE INTEGRITY
Subtitle A—Pipeline Integrity
Sec. 801. Program for pipeline integrity research, development, and demonstra-
tion.
Sec. 802. Pipeline Integrity Technical Advisory Committee.
Sec. 803. Authorization of appropriations.
Subtitle B-Other Pipeline Provisions
Sec. 811. Prohibition on certain pipeline route.
Sec. 812. Historic pipelines.
TITLE IX—MISCELLANEOUS PROVISIONS
Sec. 901. Waste reduction and use of alternatives.
Sec. 902. Annual report on United States energy independence.
Sec. 903. Study of aircraft emissions.
TITLE I—ENERGY
CONSERVATION
Subtitle A—Reauthorization of Fed-
eral Energy Conservation Pro-
grams
SEC. 101. AUTHORIZATION OF APPROPRIATIONS.
Section 660 of the Department of Energy Organization
Act (42 U.S.C. 7270) is amended as follows:
(1) By inserting ‘‘(a)’’ before ‘‘Appropriations’’.
(2) By inserting at the end the following new
subsection:
‘‘(b) There are hereby authorized to be appropriated
to the Department of Energy for fiscal year 2002,
$950,000,000; for fiscal year 2003, $1,000,000,000; for fis-
cal year 2004, $1,050,000,000; for fiscal year 2005,
$1,100,000,000; and for fiscal year 2006, $1,150,000,000,
to carry out energy efficiency activities under the following
laws, such sums to remain available until expended:
‘‘(1) Energy Policy and Conservation Act, in-
cluding section 256(d)(42 U.S.C. 6276(d)) (promote
export of energy efficient products), sections 321
through 346 (42 U.S.C. 6291–6317) (appliances pro-
gram).
‘‘(2) Energy Conservation and Production Act,
including sections 301 through 308 (42 U.S.C. 6831–
6837) (energy conservation standards for new build-
ings).
‘‘(3) National Energy Conservation Policy Act,
including sections 541–551 (42 U.S.C. 8251–8259)
(Federal Energy Management Program).
‘‘(4) Energy Policy Act of 1992, including sec-
tions 103 (42 U.S.C. 13458) (energy efficient lighting
and building centers), 121 (42 U.S.C. 6292 note) (en-
ergy efficiency labeling for windows and window sys-
tems), 125 (42 U.S.C. 6292 note) (energy efficiency
information for commercial office equipment), 126
(42 U.S.C. 6292 note) (energy efficiency information
for luminaires), 131 (42 U.S.C. 6348) (energy effi-
ciency in industrial facilities), and 132 (42 U.S.C.
6349) (process-oriented industrial energy efficiency).’’.
Subtitle B—Federal Leadership in
Energy Conservation
SEC. 121. FEDERAL FACILITIES AND NATIONAL ENERGY SE-
CURITY.
(a) PURPOSE.—Section 542 of the National Energy
Conservation Policy Act (42 U.S.C. 8252) is amended by
inserting ‘‘, and generally to promote the production, sup-
ply, and marketing of energy efficiency products and serv-
ices and the production, supply, and marketing of uncon-
ventional and renewable energy resources’’ after ‘‘by the
Federal Government’’.
(b) ENERGY MANAGEMENT REQUIREMENTS.—Section
543 of the National Energy Conservation Policy Act (42
U.S.C. 8253) is amended as follows:
(1) In subsection (a)(1), by striking ‘‘during the
fiscal year 1995’’ and all that follows through the end
and inserting ‘‘during—
‘‘(1) fiscal year 1995 is at least 10 percent;
‘‘(2) fiscal year 2000 is at least 20 percent;
‘‘(3) fiscal year 2005 is at least 30 percent;
‘‘(4) fiscal year 2010 is at least 35 percent;
‘‘(5) fiscal year 2015 is at least 40 percent; and
‘‘(6) fiscal year 2020 is at least 45 percent,
less than the energy consumption per gross square foot of
its Federal buildings in use during fiscal year 1985. To
achieve the reductions required by this paragraph, an agen-
cy shall make maximum practicable use of energy efficiency
products and services and unconventional and renewable
energy resources, using guidelines issued by the Secretary
under subsection (d) of this section.’’.
(2) In subsection (d), by inserting ‘‘Such guide-
lines shall include appropriate model technical stand-
ards for energy efficiency and unconventional and re-
newable energy resources products and services. Such
standards shall reflect, to the extent practicable, eval-
uation of both currently marketed and potentially
marketable products and services that could be used
by agencies to improve energy efficiency and increase
unconventional and renewable energy resources.’’ after
‘‘implementation of this part.’’.
(3) By adding at the end the following new sub-
section:
‘‘(e) STUDIES.—To assist in developing the guidelines
issued by the Secretary under subsection (d) and in further-
ance of the purposes of this section, the Secretary shall con-
duct studies to identify and encourage the production and
marketing of energy efficiency products and services and
unconventional and renewable energy resources. To conduct
such studies, there are authorized to be appropriated to the
Secretary $20,000,000 for each of the fiscal years 2003
through 2010.’’.
(c) DEFINITION.—Section 551 of the National Energy
Conservation Policy Act (42 U.S.C. 8259) is amended as
follows:
(1) By striking ‘‘and’’ at the end of paragraph
(8).
(2) By striking the period at the end of para-
graph (9) and inserting ‘‘; and’’.
(3) By adding at the end the following new
paragraph:
‘‘(10) the term ‘unconventional and renewable
energy resources’ includes renewable energy sources,
hydrogen, fuel cells, cogeneration, combined heat and
power, heat recovery (including by use of a Stirling
heat engine), and distributed generation.’’.
(d) EXCLUSIONS FROM REQUIREMENT.—The National
Energy Conservation Policy Act (42 U.S.C. 7201 and fol-
lowing) is amended as follows:
(1) In section 543(a)—
(A) by striking ‘‘(1) Subject to paragraph
(2)’’ and inserting ‘‘Subject to subsection (c)’’;
and
(B) by striking ‘‘(2) An agency’’ and all
that follows through ‘‘such exclusion.’’.
(2) By amending subsection (c) of such section
543 to read as follows:
‘‘(c) EXCLUSIONS.—(1) A Federal building may be ex-
cluded from the requirements of subsections (a) and (b) only
if—
‘‘(A) the President declares the building to re-
quire exclusion for national security reasons; and
‘‘(B) the agency responsible for the building
has—
‘‘(i) completed and submitted all federally
required energy management reports; and
‘‘(ii) achieved compliance with the energy
efficiency requirements of this Act, the Energy
Policy Act of 1992, Executive Orders, and other
Federal law;
‘‘(iii) implemented all practical, life cycle
cost-effective projects in the excluded building.
‘‘(2) The President shall only declare buildings de-
scribed in paragraph (1)(A) to be excluded, not ancillary
or nearby facilities that are not in themselves national secu-
rity facilities.’’.
(3) In section 548(b)(1)(A)—
(A) by striking ‘‘copy of the’’; and
(B) by striking ‘‘sections 543(a)(2) and
543(c)(3)’’ and inserting ‘‘section 543(c)’’.
(e) ACQUISITION REQUIREMENT.—Section 543(b) of
such Act is amended—
(1) in paragraph (1), by striking ‘‘(1) Not’’ and
inserting ‘‘(1) Except as provided in paragraph (5),
not’’; and
(2) by adding at the end the following new para-
graph:
‘‘(5)(A)(i) Agencies shall select only Energy Star prod-
ucts when available when acquiring energy-using products.
For product groups where Energy Star labels are not yet
available, agencies shall select products that are in the
upper 25 percent of energy efficiency as designated by
FEMP. The Secretary of Energy shall develop guidelines
within 180 days after the enactment of this paragraph for
exemptions to this section when equivalent products do not
exist, are impractical, or do not meet the agency mission
requirements.
‘‘(ii) The Administrator of the General Services Ad-
ministration and the Secretary of Defense (acting through
the Defense Logistics Agency), with assistance from the Ad-
ministrator of the Environmental Protection Agency and
the Secretary of Energy, shall create clear catalogue listings
that designate Energy Star products in both print and elec-
tronic formats. After any existing federal inventories are
exhausted, Administrator of the General Services Adminis-
tration and the Secretary of Defense (acting through the
Defense Logistics Agency) shall only replace inventories
with energy-using products that are Energy Star, products
that are rated in the top 25 percent of energy efficiency,
or products that are exempted as designated by FEMP and
defined in clause (i).
‘‘(iii) Agencies shall incorporate energy-efficient cri-
teria consistent with Energy Star and other FEMP des-
ignated energy efficiency levels into all guide specifications
and project specifications developed for new construction
and renovation, as well as into product specification lan-
guage developed for Basic Ordering Agreements, Blanket
Purchasing Agreements, Government Wide Acquisition
Contracts, and all other purchasing procedures.
‘‘(iv) The legislative branch shall be subject to this sub-
paragraph to the same extent and in the same manner as
are the Federal agencies referred to in section 521(1).
‘‘(B) Not later than 6 months after the date of the en-
actment of this paragraph, the Secretary of Energy shall
establish guidelines defining the circumstances under which
an agency shall not be required to comply with subpara-
graph (A). Such circumstances may include the absence of
Energy Star products, systems, or designs that serve the
purpose of the agency, issues relating to the compatibility
of a product, system, or design with existing buildings or
equipment, and excessive cost compared to other available
and appropriate products, systems, or designs.
‘‘(C) Subparagraph (A) shall apply to agency acquisi-
tions occurring on or after October 1, 2002.’’.
(f) METERING.—Section 543 of such Act (42 U.S.C.
8254) is amended by adding at the end the following new
subsection:
‘‘(f) METERING.—(1) By October 1, 2004, all Federal
buildings including buildings owned by the legislative
branch and the Federal court system and other energy-using
structures shall be metered or submetered in accordance
with guidelines established by the Secretary under para-
graph (2).
‘‘(2) Not later than 6 months after the date of the en-
actment of this subsection, the Secretary, in consultation
with representatives from the metering industry, energy
services industry, national laboratories, colleges of higher
education, and federal facilities energy managers, shall es-
tablish guidelines for agencies to carry out paragraph (1).
Such guidelines shall take into consideration each of the fol-
lowing:
‘‘(A) Cost.
‘‘(B) Resources, including personnel, required to
maintain, interpret, and report on data so that the
meters are continually reviewed.
‘‘(C) Energy management potential.
‘‘(D) Energy savings.
‘‘(E) Utility contract aggregation.
‘‘(F) Savings from operations and maintenance.
‘‘(3) Any building excluded under subsection (c) shall
be individually metered or submetered as the Secretary de-
termines necessary.’’.
(g) RETENTION OF ENERGY SAVINGS.—Section 546 of
such Act (42 U.S.C. 8256) is amended by adding at the
end the following 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 en-
ergy savings. Such funds may be used only for energy effi-
ciency or unconventional and renewable energy resources
projects.’’.
(h) REPORTS.—Section 548 of such Act (42 U.S.C.
8258) is amended as follows:
(1) In subsection (a)—
(A) by inserting ‘‘in accordance with guide-
lines established by and’’ after ‘‘to the Sec-
retary,’’;
(B) by striking ‘‘and’’ at the end of para-
graph (1);
(C) by striking the period at the end of
paragraph (2) and inserting a semicolon; and
(D) by adding at the end the following new
paragraphs:
‘‘(3) an energy emergency response plan devel-
oped by the agency;
‘‘(4) the quantity, and a description of, products,
systems, and designs acquired by the agency that are
not acquired as provided in section 543(b)(5)(A); and
‘‘(5) the percentage of the Agency’s capital ex-
penditures that are used for energy efficiency and un-
conventional and renewable energy resources capital
improvements.’’.
(2) In subsection (b)—
(A) by striking ‘‘and’’ at the end of para-
graph (3);
(B) by striking the period at the end of
paragraph (4) and inserting ‘‘; and’’; and
(C) by adding at the end the following new
paragraph:
‘‘(5) all information transmitted to the Secretary
under subsection (a).’’.
(3) By amending subsection (c) to read as fol-
lows:
‘‘(c) AGENCY REPORTS TO CONGRESS.—Each agency
shall annually report to the Congress, as part of the agen-
cy’s annual budget request, on all of the agency’s activities
implementing any Federal energy management require-
ment.’’.
(i) INSPECTOR GENERAL ENERGY AUDITS.—Section
160(c) of the Energy Policy Act of 1992 (42 U.S.C.
8262f(c)) is amended by striking ‘‘is encouraged to conduct
periodic’’ and inserting ‘‘shall conduct periodic’’.
(j) FEDERAL ENERGY MANAGEMENT REVIEWS.—Sec-
tion 543 of the National Energy Conservation Policy Act
(42 U.S.C. 8253) is amended by adding at the end the fol-
lowing:
‘‘(g) PRIORITY RESPONSE REVIEWS.—Each agency
shall—
‘‘(1) not later than 9 months after the date of the
enactment of this subsection, undertake a comprehen-
sive review of all practicable measures for—
‘‘(A) increasing energy and water conserva-
tion, and
‘‘(B) using renewable energy sources; and
‘‘(2) not later than 180 days after completing the
review, implement measures to achieve not less than
50 percent of the potential efficiency and renewable
savings identified in the review.’’.
SEC. 122. ENHANCEMENT AND EXTENSION OF AUTHORITY
RELATING TO FEDERAL ENERGY SAVINGS
PERFORMANCE CONTRACTS.
(a) COST SAVINGS FROM OPERATION AND MAINTE-
NANCE EFFICIENCIES IN REPLACEMENT FACILITIES.—Sec-
tion 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 contract or
energy savings performance contract providing 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 re-
sulting from reduced costs of operation and maintenance
at such replacement buildings or facilities when compared
with costs of operation and maintenance at the buildings
or facilities being replaced, established through a method-
ology set forth in the contract.
‘‘(B) Notwithstanding paragraph (2)(B), aggregate
annual payments by an agency under an energy savings
contract or energy savings performance contract referred to
in subparagraph (A) may take into account (through the
procedures developed pursuant to this section) savings re-
sulting from reduced costs of operation and maintenance
as described in that subparagraph.’’.
(b) EXPANSION OF DEFINITION OF ENERGY SAVINGS
TO INCLUDE WATER AND REPLACEMENT FACILITIES.—
(1) 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)(A) The term ‘energy savings’ means a re-
duction 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 buildings or other federally owned facilities as a
result of—
‘‘(i) the lease or purchase of operating
equipment, improvements, altered operation and
maintenance, or technical services;
‘‘(ii) the increased efficient use of existing
energy sources by solar and ground source geo-
thermal resources, cogeneration or heat recovery
(including by the use of a Stirling heat engine),
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 existing
water sources.
‘‘(B) The term ‘energy savings’ also means, in
the case of a replacement building or facility de-
scribed in section 801(a)(3), a reduction in the cost
of energy, from a base cost established through a
methodology set forth in the contract, that would oth-
erwise be utilized in one or more existing federally
owned buildings or other federally owned facilities by
reason of the construction and operation of the re-
placement building or facility.’’.
(2) 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 ‘en-
ergy savings performance contract’ mean a contract
which provides for—
‘‘(A) the performance of services for the de-
sign, acquisition, installation, testing, operation,
and, where appropriate, maintenance and re-
pair, of an identified energy or water conserva-
tion 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.’’.
(3) ENERGY
OR
WATER
CONSERVATION
MEAS-
URE.—Section 804(4) of the National Energy Con-
servation Policy Act (42 U.S.C. 8287c(4)) is amended
to read as follows:
‘‘(4) The term ‘energy or water conservation
measure’ means—
‘‘(A) an energy conservation measure, as de-
fined in section 551(4) (42 U.S.C. 8259(4)); or
‘‘(B) a water conservation measure that im-
proves water efficiency, is life cycle cost effective,
and involves water conservation, water recycling
or reuse, improvements in operation or mainte-
nance efficiencies, retrofit activities, or other re-
lated activities, not at a Federal hydroelectric fa-
cility.’’.
(4) 
CONFORMING
AMENDMENT.—Section
801(a)(2)(C) of the National Energy Conservation
Policy Act (42 U.S.C. 8287(a)(2)(C)) is amended by
inserting ‘‘or water’’ after ‘‘financing energy’’.
(c) EXTENSION OF AUTHORITY.—Section 801(c) of the
National Energy Conservation Policy Act (42 U.S.C.
8287(c)) is repealed.
(d) CONTRACTING AND AUDITING.—Section 801(a)(2)
of the National Energy Conservation Policy Act (42 U.S.C.
8287(a)(2)) is amended by adding at the end the following
new subparagraph:
‘‘(E) A Federal agency shall engage in contracting and
auditing to implement energy savings performance con-
tracts as necessary and appropriate to ensure compliance
with the requirements of this Act, particularly the energy
efficiency requirements of section 543.’’.
SEC. 123. CLARIFICATION AND ENHANCEMENT OF AUTHOR-
ITY TO ENTER UTILITY INCENTIVE PRO-
GRAMS FOR ENERGY SAVINGS.
Section 546(c) of the National Energy Conservation
Policy Act (42 U.S.C. 8256(c)) is amended as follows:
(1) In paragraph (3) by adding at the end the
following: ‘‘Such a utility incentive program may in-
clude a contract or contract term designed to provide
for cost-effective electricity demand management, en-
ergy efficiency, or water conservation.’’.
(2) By adding at the end of the following new
paragraphs:
‘‘(6) A utility incentive program may include a con-
tract or contract term for a reduction in the energy, from
a base cost established through a methodology set forth in
such a contract, that would otherwise be utilized in one or
more federally owned buildings or other federally owned fa-
cilities by reason of the construction or operation of one
or more replacement buildings or facilities, as well as bene-
fits ancillary to the purpose of such contract or contract
term, including savings resulting from reduced costs of op-
eration and maintenance at new or additional buildings
or facilities when compared with the costs of operation and
maintenance at existing buildings or facilities.
‘‘(7) Federal agencies are encouraged to participate in
State or regional demand side reduction programs, includ-
ing those operated by wholesale market institutions such as
independent system operators, regional transmission orga-
nizations and other entities. The availability of such pro-
grams, and the savings resulting from such participation,
should be included in the evaluation of energy options for
Federal facilities.’’.
SEC. 124. FEDERAL CENTRAL AIR CONDITIONER AND HEAT
PUMP EFFICIENCY.
(a) REQUIREMENT.—Federal agencies shall be re-
quired to acquire central air conditioners and heat pumps
that meet or exceed the standards established under sub-
section (b) or (c) in the case of all central air conditioners
and heat pumps acquired after the date of enactment of this
Act.
(b) STANDARDS.—The standards referred to in sub-
section (a) are the following:
(1) For air-cooled air conditioners with cooling
capacities of less than 65,000 Btu/hour, a Seasonal
Energy Efficiency Ratio of 12.0.
(2) For air-source heat pumps with cooling ca-
pacities less than 65,000 Btu/hour, a Seasonal En-
ergy Efficiency Ratio of 12 SEER, and a Heating
Seasonal Performance Factor of 7.4.
(c) MODIFIED STANDARDS.—The Secretary of Energy
may establish, after appropriate notice and comment, re-
vised standards providing for reduced energy consumption
or increased energy efficiency of central air conditioners
and heat pumps acquired by the Federal Government, but
may not establish standards less rigorous than those estab-
lished by subsection (b).
(d) DEFINITIONS.—For purposes of this section, the
terms ‘‘Energy Efficiency Ratio’’, ‘‘Seasonal Energy Effi-
ciency Ratio’’, ‘‘Heating Seasonal Performance Factor’’,
and ‘‘Coefficient of Performance’’ have the meanings used
for those terms in Appendix M to Subpart B of Part 430
of title 10 of the Code of Federal Regulations, as in effect
on May 24, 2001.
(e) EXEMPTIONS.—An agency shall be exempt from the
requirements of this section with respect to air conditioner
or heat pump purchases for particular uses where the agen-
cy head determines that purchase of a air conditioner or
heat pump for such use would be impractical. A finding
of impracticability shall be based on whether—
(1) the energy savings pay-back period for such
purchase would be less than 10 years;
(2) space constraints or other technical factors
would make compliance with this section cost-prohibi-
tive; or
(3) in the case of the Departments of Defense and
Energy, compliance with this section would be incon-
sistent with the proper discharge of national security
functions.
SEC. 125. FEDERAL ENERGY BANK.
(a) DEFINITIONS.—In this section:
(1) AGENCY.—The term ‘‘agency’’ means each of
the following:
(A) An Executive agency (as defined in sec-
tion 105 of title 5, United States Code, except
that the term also includes the United States
Postal Service and the United States Patent and
Trademark Office).
(B) Congress and any other entity in the
legislative branch.
(C) A court and any other entity in the ju-
dicial branch.
(2) BANK.—The term ‘‘Bank’’ means the Federal
Energy Bank established by subsection (b).
(3) ENERGY
EFFICIENCY
PROJECT.—The term
‘‘energy efficiency project’’ means a project that as-
sists an agency in meeting or exceeding the energy ef-
ficiency requirements of—
(A) part 3 of title V of the National Energy
Conservation Policy Act (42 U.S.C. 8251 et seq.);
(B) subtitle F of title I of the Energy Policy
Act of 1992 and the amendments made by that
subtitle (106 Stat. 2843); and
(C) applicable Executive orders, including
Executive Order Nos. 12759 and 13123.
Such term shall include water conservation and re-
newable energy projects.
(4) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Energy.
(5) TOTAL UTILITY PAYMENTS.—The term ‘‘total
utility payments’’ means payments made to supply
electricity, natural gas, water, and any other form of
energy to provide the heating, ventilation, air condi-
tioning, lighting, and other energy needs of an agency
facility.
(b) ESTABLISHMENT OF BANK.—
(1) IN GENERAL.—There is established in the
Treasury of the United States a trust fund to be
known as the ‘‘Federal Energy Bank’’, consisting of—
(A) such amounts as are appropriated to
the Bank under subsection (f);
(B) such amounts as are transferred to the
Bank under paragraph (2);
(C) such amounts as are repaid to the Bank
under subsection (c)(2)(D); and
(D) any interest earned on investment of
amounts in the Bank under paragraph (3).
(2) TRANSFERS TO BANK.—
(A) IN GENERAL.—At the beginning of each
of fiscal years 2002, 2003, and 2004, each agen-
cy shall transfer to the Secretary of the Treas-
ury, for deposit in the Bank, an amount equal
to 5 percent of the total utility payments paid
by the agency in the preceding fiscal year.
(B) UTILITIES PAID FOR AS PART OF RENT-
AL PAYMENTS.—The Secretary shall by regula-
tion establish a formula by which the appro-
priate portion of a rental payment that covers
the cost of utilities shall be considered to be a
utility payment for the purposes of subpara-
graph (A).
(3) INVESTMENT OF FUNDS.—The Secretary of
the Treasury shall invest such portion of funds in the
Bank as is not, in the Secretary’s judgment, required
to meet current withdrawals. Investments may be
made only in interest-bearing obligations of the
United States.
(c) LOANS FROM THE BANK.—
(1) IN GENERAL.—The Secretary of the Treasury
shall transfer from the Bank to the Secretary such
amounts as are appropriated to carry out the loan
program under paragraph (2).
(2) LOAN PROGRAM.—
(A) IN GENERAL.—In accordance with sub-
section (d), the Secretary, in consultation with
the Secretary of Defense, Administrator of the
General Services Administration and the Office
of Administration and Budget within the Execu-
tive Office of the President, shall establish a pro-
gram to loan amounts from the Bank to any
agency that submits an application satisfactory
to the Secretary in order to finance an energy ef-
ficiency project. The Bank is authorized to begin
operation in fiscal year 2003 and receive and
approve funding for energy efficiency projects
subject to funding availability in fiscal year
2003.
(B) PERFORMANCE
CONTRACTING
FUND-
ING.—The Secretary shall not make a loan under
this section for a project for which funding is
available and is acceptable to the requesting
agency under title VIII of the National Energy
Conservation Policy Act (42 U.S.C. 8287 et seq.).
(C) PURPOSES OF LOAN.—
(i) IN GENERAL.—A loan under this
section may be made to pay the costs of—
(I) an energy efficiency project
identification and design of an energy
efficiency project, and energy metering
plans and equipment for purposes of
new and existing building energy sys-
tems and verifications of energy sav-
ings of an energy savings performance
contract; or
(II) development and administra-
tion of an energy savings performance
contract or utility energy service agree-
ment.
(ii) LIMITATION.—An agency may use
not more than 15 percent of the amount of
a loan under clause (i)(I) to pay the costs
of administration and proposal development
(including data collection and energy sur-
veys).
(D) REPAYMENTS.—
(i) IN
GENERAL.—An agency shall
repay to the Bank the principal amount of
the energy efficiency project loan plus inter-
est at a rate determined by the President, in
consultation with the Secretary and the Sec-
retary of the Treasury. The repayment pe-
riod shall be 10 years in the case of water
conservation and renewable energy projects.
(ii) 
WAIVER.—The 
Secretary 
may
waive the requirement of clause (i) if the
Secretary determines that payment of inter-
est by an agency is not required to sustain
the needs of the Bank in making energy effi-
ciency project loans.
(E) AGENCY
ENERGY
BUDGETS.—Until a
loan is repaid, an agency budget submitted to
Congress for a fiscal year shall not be reduced
by the value of energy savings accrued as a re-
sult of the energy conservation measure imple-
mented with funds from the Bank.
(F) AVAILABILITY OF FUNDS.—An agency
shall not rescind or reprogram funds made avail-
able by this section. Funds loaned to an agency
shall be retained by the agency until expended,
without regard to fiscal year limitation.
(d) SELECTION CRITERIA.—
(1) IN GENERAL.—The Secretary shall establish
criteria for the selection of energy efficiency projects
to be awarded loans in accordance with paragraph
(2).
(2) SELECTION CRITERIA.—The Secretary may
make loans only for energy efficiency projects that—
(A) are technically feasible;
(B) are determined to be cost-effective using
life cycle cost methods established by the Sec-
retary by regulation;
(C) include a measurement and manage-
ment component to—
(i) commission energy savings for new
Federal facilities; and
(ii) monitor and improve energy effi-
ciency management at existing Federal fa-
cilities;
(D) have a project payback period of 10
years or less; and
(E) gives funding priority to projects with
the quickest payback and least total cost.
(e) REPORTS AND AUDITS.—
(1) REPORTS
TO
THE
SECRETARY.—Not later
than 1 year after the installation of an energy effi-
ciency project that has a total cost of more than
$1,000,000, and each year thereafter, an agency shall
submit to the Secretary a report that—
(A) states whether the project meets or fails
to meet the energy savings projections for the
project; and
(B) for each project that fails to meet the
energy savings projections, states the reasons for
the failure and describes proposed remedies.
(2) AUDITS.—The Secretary may audit any en-
ergy efficiency project financed with funding from the
Bank to assess the project’s performance.
(3) REPORTS TO CONGRESS.—At the end of each
fiscal year, the Secretary shall submit to the Com-
mittee on Energy and Commerce of the House of Rep-
resentatives and the Committee on Energy and Nat-
ural Resources of the Senate a report on the oper-
ations of the Bank, including a statement of the total
receipts into the Bank, and the total expenditures
from the Bank to each agency.
(f) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as may be nec-
essary for each of the fiscal years 2002 through 2008 to
carry out this section.
SEC. 126. ADVANCED BUILDING EFFICIENCY TESTBED.
(a) ESTABLISHMENT.—The Secretary of Energy shall
establish an Advanced Building Efficiency Testbed program
for the development, testing, and demonstration of advanced
engineering systems, components, and materials to enable
innovations in building technologies. The program shall
evaluate government and industry building efficiency con-
cepts, and demonstrate the ability of next generation build-
ings to support individual and organizational productivity
and health as well as flexibility and technological change
to improve environmental sustainability.
(b) PARTICIPANTS.—The program established under
subsection (a) shall be led by a university having dem-
onstrated experience with the application of intelligent
workplaces and advanced building systems in improving
the quality of built environments. Such university shall also
have the ability to combine the expertise from more than
12 academic fields, including electrical and computer engi-
neering, computer science, architecture, urban design, and
environmental and mechanical engineering. Such univer-
sity shall partner with other universities and entities who
have established programs and the capability of advancing
innovative building efficiency technologies.
(c) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary of Energy
to carry out this section $18,000,000 for fiscal year 2002,
to remain available until expended, of which $6,000,000
shall be provided to the lead university described in sub-
section (b), and the remainder shall be provided equally to
each of the other participants referred to in subsection (b).
SEC. 127. USE OF INTERVAL DATA IN FEDERAL BUILDINGS.
Section 543 of the National Energy Conservation Pol-
icy Act (42 U.S.C. 8253) is amended by adding at the end
the following new subsection:
‘‘(h) USE OF INTERVAL DATA IN FEDERAL BUILD-
INGS.—Not later than January 1, 2003, each agency shall
utilize, to the maximum extent practicable, for the purposes
of efficient use of energy and reduction in the cost of elec-
tricity consumed in its Federal buildings, interval con-
sumption data that measure on a real time or daily basis
consumption of electricity in its Federal buildings. To meet
the requirements of this subsection each agency shall pre-
pare and submit at the earliest opportunity pursuant to
section 548(a) to the Secretary, a plan describing how the
agency intends to meet such requirements, including how
it will designate personnel primarily responsible for achiev-
ing such requirements, and otherwise implement this sub-
section.’’.
SEC. 128. REVIEW OF ENERGY SAVINGS PERFORMANCE
CONTRACT PROGRAM.
Within 180 days after the date of the enactment of this
Act, 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 increas-
ing program flexibility and effectiveness, including audit
and measurement verification requirements, accounting for
energy use in determining savings, contracting require-
ments, 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 Com-
mittee 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 statutory
authority.
SEC. 129. CAPITOL COMPLEX.
(a) 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 re-
sources, in a way that would enable the Complex to have
reliable utility service in the event of power fluctuations,
shortages, or outages.
(b) AUTHORIZATION.—There is authorized to be ap-
propriated to the Architect of the Capitol to carry out this
section, not more than $2,000,000 for fiscal years after the
enactment of this Act.
Subtitle C—State Programs
SEC. 131. AMENDMENTS TO 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 three
years, invite the Governor of each State to review and, if
necessary, 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 with-
in the region, and identify opportunities and actions car-
ried 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 by inserting ‘‘Each State energy con-
servation plan with respect to which assistance is made
available under this part on or after the date of the enact-
ment of Energy Advancement and Conservation Act of
2001, shall contain a goal, consisting of an improvement
of 25 percent or more in the efficiency of use of energy in
the State concerned in the calendar year 2010 as compared
to the calendar year 1990, and may contain interim goals.’’
after ‘‘contain interim 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 ‘‘$75,000,000 for fiscal year 2002, $100,000,000
for fiscal years 2003 and 2004, $125,000,000 for fiscal year
2005’’.
SEC. 132. REAUTHORIZATION OF ENERGY CONSERVATION
PROGRAM FOR SCHOOLS AND HOSPITALS.
Section 397 of the Energy Policy and Conservation Act
(42 U.S.C. 6371f) is amended by striking ‘‘2003’’ and in-
serting ‘‘2010’’.
SEC. 133. AMENDMENTS TO WEATHERIZATION ASSISTANCE
PROGRAM.
Section 422 of the Energy Conservation and Produc-
tion Act (42 U.S.C. 6872) is amended by striking ‘‘for fiscal
years 1999 through 2003 such sums as may be necessary’’
and inserting ‘‘$250,000,000 for fiscal year 2002,
$325,000,000 for fiscal year 2003, $400,000,000 for fiscal
year 2004, and $500,000,000 for fiscal year 2005’’.
SEC. 134. LIHEAP.
(a) AUTHORIZATION
OF APPROPRIATIONS.—Section
2602(b) of the Low-Income Home Energy Assistance Act of
1981 (42 U.S.C. 8621(b)) is amended by striking the first
sentence and inserting the following: ‘‘There are authorized
to be appropriated to carry out the provisions of this title
(other than section 2607A), $3,400,000,000 for each of fiscal
years 2001 through 2005.’’.
(b) GAO STUDY.—The Comptroller General of the
United States shall conduct a study to determine—
(1) the extent to which Low-Income Home En-
ergy Assistance (LIHEAP) and other government en-
ergy subsidies paid to consumers discourage energy
conservation and energy efficiency investments; and
(2) the extent to which the goals of conservation
and assistance for low income households could be si-
multaneously achieved through cash income supple-
ments that do not specifically target energy, thereby
maintaining incentives for wise use of expensive
forms of energy, or through other means.
SEC. 135. HIGH PERFORMANCE PUBLIC BUILDINGS.
(a) PROGRAM ESTABLISHMENT
AND ADMINISTRA-
TION.—
(1) ESTABLISHMENT.—There is established in
the Department of Energy the High Performance
Public Buildings Program (in this section referred to
as the ‘‘Program’’).
(2) IN GENERAL.—The Secretary of Energy may,
through the Program, make grants—
(A) to assist units of local government in
the production, through construction or renova-
tion of buildings and facilities they own and op-
erate, of high performance public buildings and
facilities that are healthful, productive, energy
efficient, and environmentally sound;
(B) to State energy offices to administer the
program of assistance to units of local govern-
ment pursuant to this section; and
(C) to State energy offices to promote par-
ticipation by units of local government in the
Program.
(3) GRANTS TO ASSIST UNITS OF LOCAL GOVERN-
MENT.—Grants under paragraph (2)(A) for new pub-
lic buildings shall be used to achieve energy efficiency
performance that reduces energy use at least 30 per-
cent below that of a 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 results. Grants under paragraph (2)(A) for
existing public buildings shall be used to achieve en-
ergy efficiency performance that reduces energy use
below the public building baseline consumption, as-
suming a 3-year, weather-normalized average for cal-
culating such baseline. Grants under paragraph
(2)(A) shall be made to units of local government that
have—
(A) demonstrated a need for such grants in
order to respond appropriately to increasing
population or to make major investments in ren-
ovation of public buildings; and
(B) made a commitment to use the grant
funds to develop high performance public build-
ings in accordance with a plan developed and
approved pursuant to paragraph (5)(A).
(4) OTHER GRANTS.—
(A) GRANTS FOR ADMINISTRATION.—Grants
under paragraph (2)(B) shall be used to evaluate
compliance by units of local government with the
requirements of this section, and in addition
may be used for—
(i) distributing information and mate-
rials to clearly define and promote the de-
velopment of high performance public build-
ings for both new and existing facilities;
(ii) organizing and conducting pro-
grams for local government personnel, ar-
chitects, engineers, and others to advance
the concepts of high performance public
buildings;
(iii) obtaining technical services and
assistance in planning and designing high
performance public buildings; and
(iv) collecting and monitoring data
and information pertaining to the high per-
formance public building projects.
(B) GRANTS
TO
PROMOTE
PARTICIPA-
TION.—Grants under paragraph (2)(C) may be
used for promotional and marketing activities,
including facilitating private and public financ-
ing, promoting the use of energy service compa-
nies, working with public building users, and
communities, and coordinating public benefit
programs.
(5) IMPLEMENTATION.—
(A) PLANS.—A grant under paragraph
(2)(A) shall be provided only to a unit of local
government that, in consultation with its State
office of energy, has developed a plan that the
State energy office determines to be feasible and
appropriate in order to achieve the purposes for
which such grants are made.
(B) SUPPLEMENTING GRANT FUNDS.—State
energy offices shall encourage qualifying units of
local government to supplement their grant funds
with funds from other sources in the implemen-
tation of their plans.
(b) ALLOCATION OF FUNDS.—
(1) IN GENERAL.—Except as provided in para-
graph (3), funds appropriated to carry out this sec-
tion shall be provided to State energy offices.
(2) PURPOSES.—Except as provided in para-
graph (3), funds appropriated to carry out this sec-
tion shall be allocated as follows:
(A) Seventy percent shall be used to make
grants under subsection (a)(2)(A).
(B) Fifteen percent shall be used to make
grants under subsection (a)(2)(B).
(C) Fifteen percent shall be used to make
grants under subsection (a)(2)(C).
(3) OTHER
FUNDS.—The Secretary of Energy
may retain not to exceed $300,000 per year from
amounts appropriated under subsection (c) to assist
State energy offices in coordinating and imple-
menting the Program. Such funds may be used to de-
velop reference materials to further define the prin-
ciples and criteria to achieve high performance public
buildings.
(c) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary of Energy
to carry out this section such sums as may be necessary
for each of the fiscal years 2002 through 2010.
(d) REPORT TO CONGRESS.—The Secretary of Energy
shall conduct a biennial review of State actions imple-
menting this section, and the Secretary shall report to Con-
gress on the results of such reviews. In conducting such re-
views, the Secretary shall assess the effectiveness of the cal-
culation procedures used by the States in establishing eligi-
bility of units of local government for funding under this
section, and may assess other aspects of the State program
to determine whether they have been effectively imple-
mented.
(e) DEFINITIONS.—For purposes of this section:
(1) HIGH
PERFORMANCE
PUBLIC
BUILDING.—
The term ‘‘high performance public building’’ means
a public building which, in its design, construction,
operation, and maintenance, maximizes use of uncon-
ventional and renewable energy resources and energy
efficiency practices, is cost-effective on a life cycle
basis, uses affordable, environmentally preferable, du-
rable materials, enhances indoor environmental qual-
ity, protects and conserves water, and optimizes site
potential.
(2) RENEWABLE ENERGY.—The term ‘‘renewable
energy’’ means energy produced by solar, wind, geo-
thermal, hydroelectric, or biomass power.
(3) UNCONVENTIONAL AND RENEWABLE ENERGY
RESOURCES.—The term ‘‘unconventional and renew-
able energy resources’’ means renewable energy, hy-
drogen, fuel cells, cogeneration, combined heat and
power, heat recovery (including by use of a Stirling
heat engine), and distributed generation.
Subtitle D—Energy Efficiency for
Consumer Products
SEC. 141. ENERGY STAR PROGRAM.
(a) AMENDMENT.—The Energy Policy and Conserva-
tion Act (42 U.S.C. 6201 and following) is amended by in-
serting the following after section 324:
‘‘SEC. 324A. ENERGY STAR PROGRAM.
‘‘(a) IN GENERAL.—There is established at the Depart-
ment of Energy and the Environmental Protection Agency
a program to identify and promote energy-efficient prod-
ucts and buildings in order to reduce energy consumption,
improve energy security, and reduce pollution through la-
beling of products and buildings that meet the highest en-
ergy efficiency standards. Responsibilities under the pro-
gram shall be divided between the Department of Energy
and the Environmental Protection Agency consistent with
the terms of agreements between the two agencies. The Ad-
ministrator and the Secretary shall—
‘‘(1) promote Energy Star compliant technologies
as the preferred technologies in the marketplace for
achieving energy efficiency and to reduce pollution;
‘‘(2) work to enhance public awareness of the
Energy Star label; and
‘‘(3) preserve the integrity of the Energy Star
label.
For the purposes of carrying out this section, there is au-
thorized to be appropriated for fiscal years 2002 through
2006 such sums as may be necessary, to remain available
until expended.
‘‘(b) STUDY
OF CERTAIN PRODUCTS
AND BUILD-
INGS.—Within 180 days after the date of enactment of this
section, the Secretary and the Administrator, consistent
with the terms of agreements between the two agencies, shall
determine whether the Energy Star label should be extended
to additional products and buildings, including the fol-
lowing:
‘‘(1) Air cleaners.
‘‘(2) Ceiling fans.
‘‘(3) Light commercial heating and cooling prod-
ucts.
‘‘(4) Reach-in refrigerators and freezers.
‘‘(5) Telephony.
‘‘(6) Vending machines.
‘‘(7) Residential water heaters.
‘‘(8) Refrigerated beverage merchandisers.
‘‘(9) Commercial ice makers.
‘‘(10) School buildings.
‘‘(11) Retail buildings.
‘‘(12) Health care facilities.
‘‘(13) Homes.
‘‘(14) Hotels and other commercial lodging fa-
cilities.
‘‘(15) Restaurants and other food service facili-
ties.
‘‘(16) Solar water heaters.
‘‘(17) Building-integrated photovoltaic systems.
‘‘(18) Reflective pigment coatings.
‘‘(19) Windows.
‘‘(20) Boilers.
‘‘(21) Devices to extend the life of motor vehicle
oil.
‘‘(c) COOL ROOFING.—In determining whether the En-
ergy Star label should be extended to roofing products, the
Secretary and the Administrator shall work with the roof-
ing products industry to determine the appropriate solar
reflective index of roofing products.’’.
(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. 142. LABELING OF ENERGY EFFICIENT APPLIANCES.
(a) STUDY.—Section 324(e) of the Energy Policy and
Conservation Act (42 U.S.C. 6294(e)) is amended as fol-
lows:
(1) By inserting ‘‘(1)’’ before ‘‘The Secretary,
in consultation’’.
(2) By redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively.
(3) By adding the following new paragraph at
the end:
‘‘(2) The Secretary shall make recommendations to
the Commission within 180 days of the date of enactment
of this paragraph regarding labeling of consumer products
that are not covered products in accordance with this sec-
tion, where such labeling is likely to assist consumers in
making purchasing decisions and is technologically and
economically feasible.’’.
(b) NONCOVERED PRODUCTS.—Section 324(a)(2) of
the Energy Policy and Conservation Act (42 U.S.C.
6294(a)(2)) is amended by adding the following at the
end:
‘‘(F) Not later than one year after the date of enact-
ment of this subparagraph, the Commission shall initiate
a rulemaking to prescribe labeling rules under this section
applicable to consumer products that are not covered prod-
ucts if it determines that labeling of such products is likely
to assist consumers in making purchasing decisions and
is technologically and economically feasible.
‘‘(G) Not later than three months after the date of
enactment of this subparagraph, the Commission shall ini-
tiate a rulemaking to consider the effectiveness of the cur-
rent consumer products labeling program in assisting con-
sumers in making purchasing decisions and improving en-
ergy efficiency and to consider changes to the label that
would improve the effectiveness of the label. Such rule-
making shall be completed within 15 months of the date
of enactment of this subparagraph.’’.
SEC. 143. APPLIANCE STANDARDS.
(a) STANDARDS FOR HOUSEHOLD APPLIANCES IN
STANDBY MODE.—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
BY HOUSEHOLD APPLIANCES.—(1) In this sub-
section:
‘‘(A) The term ‘household appliance’ means any
device that uses household electric current and oper-
ates in a standby mode except digital televisions, dig-
ital set top boxes, and digital video recorders.
‘‘(B) The term ‘standby mode’ means a mode in
which a household appliance consumes the least
amount of electric energy that the household appli-
ance is capable of consuming without being com-
pletely switched off.
‘‘(2)(A) Except as provided in subparagraph (B), a
household appliance that is manufactured in, or imported
for sale in, the United States on or after the date that is
2 years after the date of enactment of this subsection shall
not consume in standby mode more than 1 watt.
‘‘(B)(i) A household appliance model that, as of the
date of enactment of this subsection, is recognized under the
Energy Star program administered by the Administrator
of the Environmental Protection Agency and the Secretary
shall have until January 1, 2005, to meet the standard
under subparagraph (A).
‘‘(ii) In the case of analog televisions, the Secretary
shall prescribe, on or after the date that is 2 years after
the date of enactment of this subsection, in accordance with
subsections (o) and (p) of section 325, an energy conserva-
tion standard that is technologically feasible and economi-
cally justified under section 325(o)(2)(A) (in lieu of the 1
watt standard under subparagraph (A)).
‘‘(3)(A) A manufacturer or importer of a household ap-
pliance may submit to the Secretary an application for an
exemption of the household appliance from the standard
under paragraph (2).
‘‘(B) The Secretary shall grant an exemption for a
household appliance for which an application is made
under subparagraph (A) if the applicant provides evidence
showing that, and the Secretary determines that—
‘‘(i) it is not technically feasible to modify the
household appliance to enable the household appliance
to meet the standard;
‘‘(ii) the standard is incompatible with an en-
ergy efficiency standard applicable to the household
appliance under another subsection; or
‘‘(iii) the cost of electricity that a typical con-
sumer would save in operating the household appli-
ance meeting the standard would not equal the in-
crease in the price of the household appliance that
would be attributable to the modifications that would
be necessary to enable the household appliance to meet
the standard by the earlier of—
‘‘(I) the date that is 7 years after the date
of purchase of the household appliance; or
‘‘(II) the end of the useful life of the house-
hold appliance.
‘‘(C) If the Secretary determines that it is not tech-
nically feasible to modify a household appliance to meet the
standard under paragraph (2), the Secretary shall establish
a different standard for the household appliance in accord-
ance with the criteria under subsection (l).
‘‘(4)(A) Not later than 1 year after the date of enact-
ment of this subsection, the Secretary shall establish a test
procedure for determining the amount of consumption of
power by a household appliance operating in standby mode.
‘‘(B) In establishing the test procedure, the Secretary
shall consider—
‘‘(i) international test procedures under develop-
ment;
‘‘(ii) test procedures used in connection with the
Energy Star program; and
‘‘(iii) test procedures used for measuring power
consumption in standby mode in other countries.
‘‘(5) FURTHER REDUCTION OF STANDBY POWER CON-
SUMPTION.—The Secretary shall provide technical assist-
ance to manufacturers in achieving further reductions in
standby mode electric energy consumption by household ap-
pliances.
‘‘(v) STANDBY MODE ELECTRIC ENERGY CONSUMP-
TION BY DIGITAL TELEVISIONS, DIGITAL SET TOP BOXES,
AND DIGITAL VIDEO RECORDERS.—The Secretary shall ini-
tiate on January 1, 2007 a rulemaking to prescribe, in ac-
cordance with subsections (o) and (p), an energy conserva-
tion standard of standby mode electric energy consumption
by digital television sets, digital set top boxes, and digital
video recorders. The Secretary shall issue a final rule pre-
scribing such standards not later than 18 months thereafter.
In determining whether a standard under this section is
technologically feasible and economically justified under
section 325(o)(2)(A), the Secretary shall consider the poten-
tial effects on market penetration by digital products cov-
ered under this section, and shall consider any rec-
ommendations by the FCC regarding such effects.’’.
(2) Section 325(n)(1) of the Energy Policy and Con-
servation Act (42 U.S.C. 6295(n)(1)) is amended by strik-
ing ‘‘(11), and in paragraphs (13) and’’.
(b) STANDARDS FOR NONCOVERED PRODUCTS.—Sec-
tion 325(m) of the Energy Policy and Conservation Act (42
U.S.C. 6295(m)) is amended as follows:
(1) Inserting ‘‘(1)’’ before ‘‘After’’.
(2) Inserting the following at the end:
(2) ‘‘Not later than one year after the date of enact-
ment of the Energy Advancement and Conservation Act of
2001, the Secretary shall conduct a rulemaking to deter-
mine whether consumer products not classified as a covered
product under section 322(a)(1) through (18) meet the cri-
teria of section 322(b)(1). If the Secretary finds that a con-
sumer product not classified as a covered product meets the
criteria of section 322(b)(1), he shall prescribe, in accord-
ance with subsections (o) and (p), an energy conservation
standard for such consumer product, if such standard is
reasonably probable to be technologically feasible and eco-
nomically justified within the meaning of subsection
(o)(2)(A).’’.
(c) CONSUMER EDUCATION ON ENERGY EFFICIENCY
BENEFITS OF AIR CONDITIONING, HEATING AND VENTILA-
TION MAINTENANCE.—Section 337 of the Energy Policy
and Conservation Act (42 U.S.C. 6307) is amended by add-
ing the following new subsection after subsection (b):
‘‘(c) HVAC MAINTENANCE.—For the purpose of ensur-
ing that installed air conditioning and heating systems op-
erate at their maximum rated efficiency levels, the Sec-
retary shall, within 180 days of the date of enactment of
this subsection, develop and implement a public education
campaign to educate homeowners and small business own-
ers concerning the energy savings resulting from regularly
scheduled maintenance of air conditioning, heating, and
ventilating systems. In developing and implementing this
campaign, the Secretary shall consider support by the De-
partment of public education programs sponsored by trade
and professional or energy efficiency organizations. The
public service information shall provide sufficient informa-
tion to allow consumers to make informed choices from
among professional, licensed (where State or local licensing
is required) contractors. There are authorized to be appro-
priated to carry out this subsection $5,000,000 for fiscal
years 2002 and 2003 in addition to amounts otherwise ap-
propriated in this part.’’.
(d) EFFICIENCY STANDARDS
FOR FURNACE FANS,
CEILING FANS, AND COLD DRINK VENDING MACHINES.—
(1) DEFINITIONS.—Section 321 of the Energy
Policy and Conservation Act (42 U.S.C. 6291) is
amended by adding the following at the end thereof:
‘‘(32) The term ‘residential furnace fan’ means
an electric fan installed as part of a furnace for pur-
poses of circulating air through the system air filters,
the heat exchangers or heating elements of the furnace,
and the duct work.
‘‘(33) The terms ‘residential central air condi-
tioner fan’ and ‘heat pump circulation fan’ mean an
electric fan installed as part of a central air condi-
tioner or heat pump for purposes of circulating air
through the system air filters, the heat exchangers of
the air conditioner or heat pump, and the duct work.
‘‘(34) The term ‘suspended ceiling fan’ means a
fan intended to be mounted to a ceiling outlet box,
ceiling building structure, or to a vertical rod sus-
pended from the ceiling, and which as blades which
rotate below the ceiling and consists of an electric
motor, fan blades (which rotate in a direction parallel
to the floor), an optional lighting kit, and one or
more electrical controls (integral or remote) governing
fan speed and lighting operation.
‘‘(35) The term ‘refrigerated bottled or canned
beverage vending machine’ means a machine that
cools bottled or canned beverages and dispenses them
upon payment.’’.
(2) TESTING
REQUIREMENTS.—Section 323 of
the Energy Policy and Conservation Act (42 U.S.C.
6293) is amended by adding the following at the end
thereof:
‘‘(f) ADDITIONAL CONSUMER PRODUCTS.—The Sec-
retary shall within 18 months after the date of enactment
of this subsection prescribe testing requirements for residen-
tial furnace fans, residential central air conditioner fans,
heat pump circulation fans, suspended ceiling fans, and re-
frigerated bottled or canned beverage vending machines.
Such testing requirements shall be based on existing test
procedures used in industry to the extent practical and rea-
sonable. In the case of residential furnace fans, residential
central air conditioner fans, heat pump circulation fans,
and suspended ceiling fans, such test procedures shall in-
clude efficiency at both maximum output and at an output
no more than 50 percent of the maximum output.’’.
(3) STANDARDS
FOR
ADDITIONAL
CONSUMER
PRODUCTS.—Section 325 of the Energy Policy and
Conservation Act (42 U.S.C. 6295) is amended by
adding the following at the end thereof:
‘‘(w) RESIDENTIAL FURNACE FANS, CENTRAL AIR AND
HEAT PUMP CIRCULATION FANS, SUSPENDED CEILING
FANS, AND VENDING MACHINES.—(1) The Secretary shall,
within 18 months after the date of enactment of this sub-
section, assess the current and projected future market for
residential furnace fans, residential central air conditioner
and heat pump circulation fans, suspended ceiling fans,
and refrigerated bottled or canned beverage vending ma-
chines. This assessment shall include an examination of the
types of products sold, the number of products in use, an-
nual sales of these products, energy used by these products
sold, the number of products in use, annual sales of these
products, energy used by these products, estimates of the po-
tential energy savings from specific technical improvements
to these products, and an examination of the cost-effective-
ness of these improvements. Prior to the end of this time
period, the Secretary shall hold an initial scoping workshop
to discuss and receive input to plans for developing min-
imum efficiency standards for these products.
‘‘(2) The Secretary shall within 24 months after the
date on which testing requirements are prescribed by the
Secretary pursuant to section 323(f), prescribe, by rule, en-
ergy conservation standards for residential furnace fans,
residential central air conditioner and heat pump circula-
tion fans, suspended ceiling fans, and refrigerated bottled
or canned beverage vending machines. In establishing these
standards, the Secretary shall use the criteria and proce-
dures contained in subsections (l) and (m). Any standard
prescribed under this section shall apply to products manu-
factured 36 months after the date such rule is published.’’.
(4) LABELING.—Section 324(a) of the Energy
Policy and Conservation Act (42 U.S.C. 6294(a)) is
amended by adding the following at the end thereof:
‘‘(5) The Secretary shall within 6 months after the date
on which energy conservation standards are prescribed by
the Secretary for covered products referred to in section
325(w), prescribe, by rule, labeling requirements for such
products. These requirements shall take effect on the same
date as the standards prescribed pursuant to section
325(w).’’.
(5) COVERED PRODUCTS.—Section 322(a) of the
Energy Policy and Conservation Act (42 U.S.C.
6292(a)) is amended by redesignating paragraph (19)
as paragraph (20) and by inserting after paragraph
(18) the following:
‘‘(19) Beginning on the effective date for stand-
ards established pursuant to subsection (v) of section
325, each product referred to in such subsection (v).’’.
Subtitle E—Energy Efficient
Vehicles
SEC. 151. HIGH OCCUPANCY VEHICLE EXCEPTION.
(a) IN GENERAL.—Notwithstanding section 102(a)(1)
of title 23, United States Code, a State may, for the purpose
of promoting energy conservation, permit a vehicle with
fewer than 2 occupants to operate in high occupancy vehicle
lanes if such vehicle is a hybrid vehicle or is fueled by an
alternative fuel.
(b) HYBRID VEHICLE DEFINED.—In this section, the
term ‘‘hybrid vehicle’’ means a motor vehicle—
(1) which draws propulsion energy from onboard
sources of stored energy which are both—
(A) an internal combustion or heat engine
using combustible fuel; and
(B) a rechargeable energy storage system;
(2) which, in the case of a passenger automobile
or light truck—
(A) for 2002 and later model vehicles, has
received a certificate of conformity under section
206 of the Clean Air Act (42 U.S.C. 7525) and
meets or exceeds the equivalent qualifying Cali-
fornia low emission vehicle standard under sec-
tion 243(e)(2) of the Clean Air Act (42 U.S.C.
7583(e)(2)) for that make and model year; and
(B) for 2004 and later model vehicles, has
received a certificate that such vehicle meets the
Tier II emission level established in regulations
prescribed by the Administrator of the Environ-
mental Protection Agency under section 202(i) of
the Clean Air Act (42 U.S.C. 7521(i)) for that
make and model year vehicle; and
(3) which is made by a manufacturer.
(c) ALTERNATIVE FUEL DEFINED.—In this section, the
term ‘‘alternative fuel’’ has the meaning such term has
under section 301(2) of the Energy Policy Act of 1992 (42
U.S.C. 13211(2)).
SEC. 152. RAILROAD EFFICIENCY.
(a) LOCOMOTIVE TECHNOLOGY DEMONSTRATION.—
The Secretary of Energy shall establish a public-private re-
search partnership with railroad carriers, locomotive man-
ufacturers, and a world-class research and test center dedi-
cated to the advancement of railroad technology, efficiency,
and safety that is owned by the Federal Railroad Adminis-
tration and operated in the private sector, for the develop-
ment and demonstration of locomotive technologies that in-
crease fuel economy, reduce emissions, improve safety, and
lower costs.
(b) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary of Energy
$25,000,000 for fiscal year 2002, $30,000,000 for fiscal year
2003, and $35,000,000 for fiscal year 2004 for carrying out
this section.
SEC. 153. BIODIESEL FUEL USE CREDITS.
Section 312(c) of the Energy Policy Act of 1992 (42
U.S.C. 13220(c)) is amended—
(1) by striking ‘‘NOT’’ in the subsection heading;
and
(2) by striking ‘‘not’’.
SEC. 154. MOBILE TO STATIONARY SOURCE TRADING.
Within 90 days after the enactment of this section, the
Administrator of the Environmental Protection Agency is
directed to commence a review of the Agency’s policies re-
garding the use of mobile to stationary source trading of
emission credits under the Clean Air Act to determine
whether such trading can provide both nonattainment and
attainment areas with additional flexibility in achieving
and maintaining healthy air quality and increasing use
of alternative fuel and advanced technology vehicles, thereby
reducing United States dependence on foreign oil.
Subtitle F—Other Provisions
SEC. 161. REVIEW OF REGULATIONS TO ELIMINATE BAR-
RIERS TO EMERGING ENERGY TECHNOLOGY.
(a) IN GENERAL.—Each Federal agency shall carry
out a review of its regulations and standards to determine
those that act as a barrier to market entry for emerging
energy-efficient technologies, including, but not limited to,
fuel cells, combined heat and power, and distributed genera-
tion (including small-scale renewable energy).
(b) REPORT TO CONGRESS.—No later than 18 months
after the date of enactment of this section, each agency shall
provide a report to Congress and the President detailing
all regulatory barriers to emerging energy-efficient tech-
nologies, along with actions the agency intends to take, or
has taken, to remove such barriers.
(c) PERIODIC REVIEW.—Each agency shall subse-
quently review its regulations and standards in the manner
specified in this section no less frequently than every 5
years, and report their findings to Congress and the Presi-
dent. Such reviews shall include a detailed analysis of all
agency actions taken to remove existing barriers to emerg-
ing energy technologies.
SEC. 162. ADVANCED IDLE ELIMINATION SYSTEMS.
(a) DEFINITIONS.—
(1) ADVANCED IDLE ELIMINATION SYSTEM.—The
term ‘‘advanced idle elimination system’’ means a de-
vice or system of devices that is installed at a truck
stop or other location (for example, a loading, unload-
ing, or transfer facility) where vehicles (such as
trucks, trains, buses, boats, automobiles, and rec-
reational vehicles) are parked and that is designed to
provide to the vehicle the services (such as heat, air
conditioning, and electricity) that would otherwise re-
quire the operation of the auxiliary or drive train
engine or both while the vehicle is stationary and
parked.
(2) EXTENDED
IDLING.—The term ‘‘extended
idling’’ means the idling of a motor vehicle for a pe-
riod greater than 60 minutes.
(b) RECOGNITION OF BENEFITS OF ADVANCED IDLE
ELIMINATION SYSTEMS.—Within 90 days after the date of
enactment of this subsection, the Administrator of the Envi-
ronmental Protection Agency is directed to commence a re-
view of the Agency’s mobile source air emissions models
used under the Clean Air Act to determine whether such
models accurately reflect the emissions resulting from ex-
tended idling of heavy-duty trucks and other vehicles and
engines, and shall update those models as the Administrator
deems appropriate. Additionally, within 90-days after the
date of enactment of this subsection, the Administrator shall
commence a review as to the appropriate emissions reduc-
tions credit that should be allotted under the Clean Air Act
for the use of advanced idle elimination systems, and wheth-
er such credits should be subject to an emissions trading
system, and shall revise Agency regulations and guidance
as the Administrator deems appropriate.
SEC. 163. STUDY OF BENEFITS AND FEASIBILITY OF OIL BY-
PASS FILTRATION TECHNOLOGY.
(a) STUDY.—The Secretary of Energy and the Admin-
istrator of the Environmental Protection Agency shall joint-
ly conduct a study of oil bypass filtration technology in
motor vehicle engines. The study shall analyze and quantify
the potential benefits of such technology in terms of reduced
demand for oil and the potential environmental benefits of
the technology in terms of reduced waste and air pollution.
The Secretary and the Administrator shall also examine the
feasibility of using such technology in the Federal motor
vehicle fleet.
(b) REPORT.—Not later than 6 months after the enact-
ment of this Act, the Secretary of Energy and the Adminis-
trator of the Environmental Protection Agency shall jointly
submit a report containing the results of the study con-
ducted under subsection (a) to the Committee on Energy
and Commerce of the United States House of Representa-
tives and to the Committee on Energy and Natural Re-
sources of the United States Senate.
SEC. 164. GAS FLARE STUDY.
(a) STUDY.—The Secretary of Energy shall conduct a
study of the economic feasibility of installing small cogen-
eration facilities utilizing excess gas flares at petrochemical
facilities to provide reduced electricity costs to customers
living within 3 miles of the petrochemical facilities. The
Secretary shall solicit public comment to assist in pre-
paring the report required under subsection (b).
(b) REPORT.—Not later than 18 months after the date
of the enactment of this Act, the Secretary of Energy shall
transmit a report to the Congress on the results of the study
conducted under subsection (a).
SEC. 165. TELECOMMUTING STUDY.
(a) STUDY REQUIRED.—The Secretary, in consulta-
tion with Commission, and the NTIA, shall conduct a study
of the energy conservation implications of the widespread
adoption of telecommuting in the United States.
(b) REQUIRED SUBJECTS OF STUDY.—The study re-
quired by subsection (a) shall analyze the following subjects
in relation to the energy saving potential of telecommuting:
(1) Reductions of energy use and energy costs in
commuting and regular office heating, cooling, and
other operations.
(2) Other energy reductions accomplished by tele-
commuting.
(3) Existing regulatory barriers that hamper
telecommuting, including barriers to broadband tele-
communications services deployment.
(4) Collateral benefits to the environment, family
life, and other values.
(c) REPORT REQUIRED.—The Secretary shall submit
to the President and the Congress a report on the study
required by this section not later than 6 months after the
date of enactment of this Act. Such report shall include a
description of the results of the analysis of each of the sub-
ject described in subsection (b).
(d) DEFINITIONS.—As used in this section:
(1) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Energy.
(2) 
COMMISSION.—The 
term 
‘‘Commission’’
means the Federal Communications Commission.
(3) NTIA.—The term ‘‘NTIA’’ means the Na-
tional Telecommunications and Information Admin-
istration of the Department of Commerce.
(4) 
TELECOMMUTING.—The 
term 
‘‘telecom-
muting’’ means the performance of work functions
using communications technologies, thereby elimi-
nating or substantially reducing the need to commute
to and from traditional worksites.
TITLE II—AUTOMOBILE FUEL
ECONOMY
SEC. 201. AVERAGE FUEL ECONOMY STANDARDS FOR NON-
PASSENGER AUTOMOBILES.
Section 32902(a) of title 49, United States Code, is
amended—
(1) by inserting ‘‘(1)’’ after ‘‘NONPASSENGER
AUTOMOBILES.—’’; and
(2) by adding at the end the following:
‘‘(2) The Secretary shall prescribe under paragraph
(1) average fuel economy standards for automobiles (except
passenger automobiles) manufactured in model years 2004
through 2010 that are calculated to ensure that the aggre-
gate amount of gasoline projected to be used in those model
years by automobiles to which the standards apply is at
least 5 billion gallons less than the aggregate amount of gas-
oline that would be used in those model years by such auto-
mobiles if they achieved only the fuel economy required
under the average fuel economy standard that applies under
this subsection to automobiles (except passenger auto-
mobiles) manufactured in model year 2002.’’.
SEC. 202. CONSIDERATION OF PRESCRIBING DIFFERENT
AVERAGE FUEL ECONOMY STANDARDS FOR
NONPASSENGER AUTOMOBILES.
(a) IN GENERAL.—The Secretary of Transportation
shall, in prescribing average fuel economy standards under
section 32902(a) of title 49, United States Code, for auto-
mobiles (except passenger automobiles) manufactured in
model year 2004, consider the potential benefits of—
(1) establishing a weight-based system for auto-
mobiles, that is based on the inertia weight, curb
weight, gross vehicle weight rating, or another appro-
priate measure of such automobiles; and
(2) prescribing different fuel economy standards
for automobiles that are subject to the weight-based
system.
(b) SPECIFIC
CONSIDERATIONS.—In implementing
this section the Secretary—
(1) shall consider any recommendations made in
the National Academy of Sciences study completed
pursuant to the Department of Transportation and
Related Agencies Appropriations Act, 2000 (Public
Law 106–346; 114 Stat. 2763 et seq.); and
(2) shall evaluate the merits of any weight-based
system in terms of motor vehicle safety, energy con-
servation, and competitiveness of and employment in
the United States automotive sector, and if a weight-
based system is established by the Secretary a manu-
facturer may trade credits between or among the
automobiles (except passenger automobiles) manufac-
tured by the manufacturer.
SEC. 203. DUAL FUELED AUTOMOBILES.
(a) PURPOSES.—The purposes of this section are—
(1) to extend the manufacturing incentives for
dual fueled automobiles, as set forth in subsections (b)
and (d) of section 32905 of title 49, United States
Code, through the 2008 model year; and
(2) to similarly extend the limitation on the
maximum average fuel economy increase for such
automobiles, as set forth in subsection (a)(1) of sec-
tion 32906 of title 49, United States Code.
(b) AMENDMENTS.—
(1) 
MANUFACTURING
INCENTIVES.—Section
32905 of title 49, United States Code, is amended as
follows:
(A) Subsections (b) and (d) are each
amended by striking ‘‘model years 1993–2004’’
and inserting ‘‘model years 1993–2008’’.
(B) Subsection (f) is amended by striking
‘‘Not later than December 31, 2001, the Sec-
retary’’ and inserting ‘‘Not later than December
31, 2005, the Secretary’’.
(C) Subsection (f)(1) is amended by striking
‘‘model year 2004’’ and inserting ‘‘model year
2008’’.
(D) Subsection (g) is amended by striking
‘‘Not later than September 30, 2000’’ and insert-
ing ‘‘Not later than September 30, 2004’’.
(2) MAXIMUM FUEL ECONOMY INCREASE.—Sub-
section (a)(1) of section 32906 of title 49, United
States Code, is amended as follows:
(A) Subparagraph (A) is amended by strik-
ing ‘‘the model years 1993–2004’’ and inserting
‘‘model years 1993–2008’’.
(B) Subparagraph (B) is amended by strik-
ing ‘‘the model years 2005–2008’’ and inserting
‘‘model years 2009–2012’’.
SEC. 204. FUEL ECONOMY OF THE FEDERAL FLEET OF
AUTOMOBILES.
Section 32917 of title 49, United States Code, is
amended to read as follows:
‘‘§ 32917. Standards for executive agency automobiles
‘‘(a) BASELINE AVERAGE FUEL ECONOMY.—The head
of each executive agency shall determine, for all automobiles
in the agency’s fleet of automobiles that were leased or
bought as a new vehicle in fiscal year 1999, the average
fuel economy for such automobiles. For the purposes of this
section, the average fuel economy so determined shall be the
baseline average fuel economy for the agency’s fleet of auto-
mobiles.
‘‘(b) INCREASE OF AVERAGE FUEL ECONOMY.—The
head of an executive agency shall manage the procurement
of automobiles for that agency in such a manner that—
‘‘(1) not later than September 30, 2003, the aver-
age fuel economy of the new automobiles in the agen-
cy’s fleet of automobiles is not less than 1 mile per
gallon higher than the baseline average fuel economy
determined under subsection (a) for that fleet; and
‘‘(2) not later than September 30, 2005, the aver-
age fuel economy of the new automobiles in the agen-
cy’s fleet of automobiles is not less than 3 miles per
gallon higher than the baseline average fuel economy
determined under subsection (a) for that fleet.
‘‘(c) CALCULATION OF AVERAGE FUEL ECONOMY.—
Average fuel economy shall be calculated for the purposes
of this section in accordance with guidance which the Sec-
retary of Transportation shall prescribe for the implementa-
tion of this section.
‘‘(d) DEFINITIONS.—In this section:
‘‘(1) The term ‘automobile’ does not include any
vehicle designed for combat-related missions, law en-
forcement work, or emergency rescue work.
‘‘(2) The term ‘executive agency’ has the mean-
ing given that term in section 105 of title 5.
‘‘(3) The term ‘new automobile’, with respect to
the fleet of automobiles of an executive agency, means
an automobile that is leased for at least 60 consecu-
tive days or bought, by or for the agency, after Sep-
tember 30, 1999.’’.
SEC. 205. HYBRID VEHICLES AND ALTERNATIVE VEHICLES.
(a) IN GENERAL.—Section 303(b)(1) of the Energy
Policy Act of 1992 is amended by adding the following at
the end: ‘‘Of the total number of vehicles acquired by a Fed-
eral fleet in fiscal years 2004 and 2005, at least 5 percent
of the vehicles in addition to those covered by the preceding
sentence shall be alternative fueled vehicles or hybrid vehi-
cles and in fiscal year 2006 and thereafter at least 10 per-
cent of the vehicles in addition to those covered by the pre-
ceding sentence shall be alternative fueled vehicles or hybrid
vehicles.’’.
(b) DEFINITION.—Section 301 of such Act is amended
by striking ‘‘and’’ at the end of paragraph (13), by striking
the period at the end of paragraph (14) and inserting ‘‘;
and’’ and by adding at the end the following:
‘‘(15) The term ‘hybrid vehicle’ means a motor vehicle
which draws propulsion energy from onboard sources of
stored energy which are both—
‘‘(A) an internal combustion or heat engine
using combustible fuel; and
‘‘(B) a rechargeable energy storage system.’’.
SEC. 206. FEDERAL FLEET PETROLEUM-BASED NONALTER-
NATIVE FUELS.
(a) IN GENERAL.—Title III of the Energy Policy Act
of 1992 (42 U.S.C. 13212 et seq.) is amended as follows:
(1) By adding at the end thereof the following:
‘‘SEC. 313. CONSERVATION OF PETROLEUM-BASED FUELS
BY THE FEDERAL GOVERNMENT FOR LIGHT-
DUTY MOTOR VEHICLES.
‘‘(a) PURPOSES.—The purposes of this section are to
complement and supplement the requirements of section 303
of this Act that Federal fleets, as that term is defined in
section 303(b)(3), acquire in the aggregate a minimum per-
centage of alternative fuel vehicles, to encourage the manu-
facture and sale or lease of such vehicles nationwide, and
to achieve, in the aggregate, a reduction in the amount of
the petroleum-based fuels (other than the alternative fuels
defined in this title) used by new light-duty motor vehicles
acquired by the Federal Government in model years 2004
through 2010 and thereafter.
‘‘(b) IMPLEMENTATION.—In furtherance of such pur-
poses, such Federal fleets in the aggregate shall reduce the
purchase of petroleum-based nonalternative fuels for such
fleets beginning October 1, 2003, through September 30,
2009, from the amount purchased for such fleets over a com-
parable period since enactment of this Act, as determined
by the Secretary, through the annual purchase, in accord-
ance with section 304, and the use of alternative fuels for
the light-duty motor vehicles of such Federal fleets, so as
to achieve levels which reflect total reliance by such fleets
on the consumptive use of alternative fuels consistent with
the provisions of section 303(b) of this Act. The Secretary
shall, within 120 days after the enactment of this section,
promulgate, in consultation with the Administrator of the
General Services Administration and the Director of the Of-
fice of Management and Budget and such other heads of
entities referenced in section 303 within the executive
branch as such Director may designate, standards for the
full and prompt implementation of this section by such en-
tities. The Secretary shall monitor compliance with this sec-
tion and such standards by all such fleets and shall report
annually to the Congress, based on reports by the heads of
such fleets, on the extent to which the requirements of this
section and such standards are being achieved. The report
shall include information on annual reductions achieved of
petroleum-based fuels and the problems, if any, encountered
in acquiring alternative fuels and in requiring their use.’’.
(2) By amending section 304(b) of such Act to
read as follows:
‘‘(b) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Secretary or, as
appropriate, the head of each Federal fleet subject to the
provisions of this section and section 313 of this Act, such
sums as may be necessary to achieve the purposes of section
313(a) and the provisions of this section. Such sums shall
remain available until expended.’’.
(b) CLERICAL AMENDMENT.—The table of contents in
section 1(b) of such Act is amended by adding at the end
of the items relating to title III the following:
‘‘Sec. 313. Conservation of petroleum-based fuels by the Federal Government for
light-duty motor vehicles.’’.
SEC. 207. STUDY OF FEASIBILITY AND EFFECTS OF REDUC-
ING USE OF FUEL FOR AUTOMOBILES.
(a) IN GENERAL.—Not later than 30 days after the
date of the enactment of this Act, the Secretary of Trans-
portation shall enter into an arrangement with the Na-
tional Academy of Sciences under which the Academy
shall study the feasibility and effects of reducing by model
year 2010, by a significant percentage, the use of fuel for
automobiles.
(b) SUBJECTS OF STUDY.—The study under this sec-
tion shall include—
(1) examination of, and recommendation of al-
ternatives to, the policy under current Federal law
of establishing average fuel economy standards for
automobiles and requiring each automobile manufac-
turer to comply with average fuel economy standards
that apply to the automobiles it manufactures;
(2) examination of how automobile manufactur-
ers could contribute toward achieving the reduction
referred to in subsection (a);
(3) examination of the potential of fuel cell
technology in motor vehicles in order to determine
the extent to which such technology may contribute
to achieving the reduction referred to in subsection
(a); and
(4) examination of the effects of the reduction
referred to in subsection (a) on—
(A) gasoline supplies;
(B) the automobile industry, including
sales of automobiles manufactured in the
United States;
(C) motor vehicle safety; and
(D) air quality.
(c) REPORT.—The Secretary shall require the Na-
tional Academy of Sciences to submit to the Secretary and
the Congress a report on the findings, conclusion, and rec-
ommendations of the study under this section by not later
than 1 year after the date of the enactment of this Act.
TITLE III—NUCLEAR ENERGY
Subtitle A—General Provisions
SEC. 301. BUDGET STATUS OF NUCLEAR WASTE FUND.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the receipts and disbursements of the Nuclear
Waste Fund established under section 302 of the Nuclear
Waste Policy Act of 1982 (42 U.S.C. 10222) shall not
be counted as new budget authority, outlays, receipts, or
deficit or surplus for purposes of—
(1) the budget of the United States Govern-
ment as submitted by the President;
(2) the congressional budget; or
(3) the Balanced Budget and Emergency Def-
icit Control Act of 1985.
(b) EFFECT ON PAYGO SCORECARD.—Upon the en-
actment of this Act, the Director of the Office of Manage-
ment and Budget shall not make any estimates of changes
in direct spending outlays and receipts under section
252(d) of the Balanced Budget and Emergency Deficit
Control Act of 1985 resulting from the enactment of sub-
section (a) of this section.
SEC. 302. LICENSE PERIOD.
Section 103 c. of the Atomic Energy Act of 1954 (42
U.S.C. 2133(c)) is amended—
(1) by striking ‘‘c. Each such’’ and inserting the
following:
‘‘c. LICENSE PERIOD.—
‘‘(1) IN GENERAL.—Each such’’; and
(2) by adding at the end the following:
‘‘(2) COMBINED
LICENSES.—In the case of a
combined construction and operating license issued
under section 185 b., the initial duration of the li-
cense may not exceed 40 years from the date on which
the Commission finds, before operation of the facility,
that the acceptance criteria required by section 185 b.
are met.’’.
SEC. 303. COST RECOVERY FROM GOVERNMENT AGENCIES.
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 fol-
lows through ‘‘1702’’ and inserting ‘‘to the Commis-
sion for, or is issued by the Commission, a license or
certificate’’;
(2) by striking ‘‘483a’’ and inserting ‘‘9701’’;
and
(3) by striking ‘‘, of applicants for, or holders of,
such licenses or certificates’’.
SEC. 304. DEPLETED URANIUM HEXAFLUORIDE.
Section 1(b) of Public Law 105–204 is amended by
striking ‘‘fiscal year 2002’’ and inserting ‘‘fiscal year
2005’’.
SEC. 305. NUCLEAR REGULATORY COMMISSION MEETINGS.
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 prohibited 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.
Subtitle B—Domestic Uranium Fuel
Cycle
SEC. 311. PORTSMOUTH COLD STANDBY.
The Secretary of Energy (in this subtitle referred to
as the ‘‘Secretary’’) may use, without need for further ap-
propriations, funds from the United States Enrichment
Corporation Fund established under section 1308 of the
Atomic Energy Act of 1954 (other than amounts reserved
under Public Law 105–204) for the implementation of cold
standby status at the Portsmouth Gaseous Diffusion Plant,
consistent with the plan required under section 314(b), in
the following amounts:
(1) $36,000,000 for fiscal year 2002.
(2) $43,000,000 for fiscal year 2003.
(3) $43,000,000 for fiscal year 2004.
(4) $47,000,000 for fiscal year 2005.
SEC. 312. PADUCAH FUNDING.
The Secretary may use, without need for further ap-
propriations, funds from the United States Enrichment
Corporation Fund established under section 1308 of the
Atomic Energy Act of 1954 (other than amounts reserved
under Public Law 105–204) for the Paducah Gaseous Diffu-
sion Plant for activities that do not duplicate the transfer
and storage operations at the Portsmouth Gaseous Diffusion
Plant, $169,000,000 for the period encompassing fiscal
years 2002 through 2005.
SEC. 313. RESEARCH AND DEVELOPMENT.
(a) PLAN.—Not later than 5 months after the date of
the enactment of this Act, the Secretary shall transmit to
the Congress a detailed research and development plan with
respect to advanced gas centrifuge technology for uranium
enrichment.
(b) ELEMENTS.—The plan required under subsection
(a) shall—
(1) identify the technical obstacles to the deploy-
ment of an advanced gas centrifuge technology that
will be cost competitive with advanced gas centrifuge
technologies deployed in other nations, and propose a
strategy to overcome those obstacles;
(2) include plans for the construction of a pilot
facility at a Department of Energy-owned Gaseous
Diffusion Plant, and for full-scale deployment of ad-
vanced gas centrifuge technology, as necessary to move
gas centrifuge technology for uranium enrichment
from the laboratory to the marketplace, taking into
consideration—
(A) confirmation of technical performance;
and
(B) initiation of preliminary plant design
and engineering that validates economic projec-
tions and considers cost effectiveness, accessi-
bility to infrastructure, turnover activities,
schedule, financing mechanisms, and risks of
construction;
(3) provide a process to validate and dem-
onstrate commercial feasibility, if the pilot facility
described in paragraph (2) is not constructed;
(4) set forth a schedule to ensure full-scale de-
ployment, and a strategy to provide a reliable and ec-
onomical domestic source of uranium enrichment
services until such full-scale deployment is completed;
(5) evaluate the relative merits of full-scale de-
ployment by—
(A) private sector companies;
(B) a government-owned corporation;
(C) a partnership between the private and
public sectors; and
(D) the Department of Energy,
using facilities and property at the Portsmouth Gas-
eous Diffusion Plant or the Paducah Gaseous Diffu-
sion Plant; and
(6) provide for a competitive process for deploy-
ment of the full-scale technology, and assignment of
rights to use Department of Energy patents if the De-
partment of Energy does not deploy the technology.
(c) PUBLIC COMMENT.—Not later than 3 months after
the date of the enactment of this Act, the Secretary shall
make available a draft version of the plan for a public com-
ment period of 30 days.
(d) IMPLEMENTATION.—One month after the plan is
transmitted to the Congress under subsection (a), the Sec-
retary shall begin to implement the plan.
(e) FUNDING.—
(1) AUTHORIZATION OF APPROPRIATIONS.—For
the purposes of implementing the plan developed
under this section, the Secretary may use, without
need 
for 
further 
appropriations, 
the 
following
amounts from the United States Enrichment Cor-
poration Fund established under section 1308 of the
Atomic Energy Act of 1954 (other than amounts re-
served under Public Law 105–204):
(A) $27,000,000 for fiscal year 2002.
(B) $40,000,000 for fiscal year 2003.
(C) $58,000,000 for fiscal year 2004.
(D) $67,000,000 for fiscal year 2005.
(E) $62,000,000 for fiscal year 2006.
(2) PLAN.—The Secretary may use, without need
for further appropriations, funds from the United
States Enrichment Corporation Fund established
under section 1308 of the Atomic Energy Act of 1954
(other than amounts reserved under Public Law 105–
204) to pay the costs of developing the plan under
this section.
SEC. 314. SHORT-TERM RELIABILITY OF DOMESTIC URA-
NIUM ENRICHMENT CAPACITY.
(a) CRITERIA.—Not later than 4 months after the date
of the enactment of this Act, the Secretary shall prepare,
and make available for a 30-day period of public comment,
draft criteria for determining when the hot restart of facili-
ties at the Portsmouth Gaseous Diffusion Plant may be nec-
essary, if supplies of nuclear fuel are disrupted or antici-
pated to be disrupted, to mitigate the impacts on—
(1) the supply of nuclear fuel to power plants in
the United States; and
(2) uranium enrichment supply contracts with
foreign utilities for which the United States Govern-
ment is liable for performance in the event of non-
performance by the United States Enrichment Cor-
poration or its successors, or where the United States
has obligations under Federal law or treaty.
(b) PLAN.—Not later than 6 months after the date of
the enactment of this Act, the Secretary shall prepare, and
make available for a 30-day period of public comment, a
plan for the hot restart of facilities at the Portsmouth Gas-
eous Diffusion Plant. Such plan shall—
(1) incorporate the criteria developed under sub-
section (a);
(2) provide for uranium enrichment capabilities
of up to 3,000,000 separative work units per year;
(3) ensure the capability of producing both high-
er assay (up to 10 percent U 235) and lower assay
(0.7 percent to 4.95 percent U 235) fuels;
(4) include options for the use of the Department
of Energy’s inventory of natural uranium;
(5) provide for the retention of sufficient R–114
refrigerant to operate the Portsmouth Gaseous Diffu-
sion Plant for 15 years or until there is equivalent re-
placement uranium enrichment capacity deployed in
the United States; and
(6) include cost estimates for hot restart and an-
nual operating costs of the facility.
(c) TRANSMITTAL TO CONGRESS.—Not later than 8
months after the date of the enactment of this Act, the Sec-
retary shall transmit to the Congress the plan described in
subsection (b), including the criteria developed under sub-
section (a).
(d) FUNDING.—The Secretary may use, without need
for further appropriations, funds from the United States
Enrichment Corporation Fund established under section
1308 of the Atomic Energy Act of 1954 (other than amounts
reserved under Public Law 105–204) to pay the costs of de-
veloping the criteria and plan under this section.
SEC. 315. 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 $10,000,000
for each of fiscal years 2002, 2003, and 2004 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 demonstra-
tion projects with domestic uranium producers relat-
ing to—
(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 Energy
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.
SEC. 316. MAINTENANCE OF A VIABLE DOMESTIC URANIUM
CONVERSION INDUSTRY.
There are authorized to be appropriated to the Sec-
retary $800,000 for contracting with the Nation’s sole re-
maining uranium converter for the purpose of performing
research and development to improve the environmental
and economic performance of United States uranium con-
version operations.
SEC. 317. PROHIBITION OF COMMERCIAL SALES OF URA-
NIUM BY THE UNITED STATES UNTIL 2009.
Section 3112 of the USEC Privatization Act (42
U.S.C. 2297h–10) is amended by adding at the end the fol-
lowing new subsection:
‘‘(g) PROHIBITION ON SALES.—Notwithstanding any
other provision of law, the United States Government shall
not sell or transfer any uranium (including natural ura-
nium concentrates, natural uranium hexafluoride, enriched
uranium, depleted uranium, or uranium in any other
form) through March 23, 2009 (except sales or transfers for
use by the Tennessee Valley Authority in relation to the De-
partment of Energy’s HEU or Tritium programs, or the
Department of Energy research reactor sales program, or
any depleted uranium hexaflouride to be transferred to a
designated Department of Energy contractor in conjunction
with the planned construction of the Depleted Uranium
Hexaflouride conversion plants in Portsmouth, Ohio, and
Paducah, Kentucky, or for emergency purposes in the event
of a disruption in supply to end users in the United States).
The aggregate of sales or transfers of uranium by the United
States Government after March 23, 2009, shall not exceed
3,000,000 pounds U3O8 per calendar year.’’.
SEC. 318. PADUCAH DECONTAMINATION AND DECOMMIS-
SIONING PLAN.
The Secretary of Energy shall prepare and submit a
plan to Congress within 180 days after the date of the enact-
ment of this Act that establishes scope, cost, schedule, se-
quence of activities, and contracting strategy for—
(1) the decontamination and decommissioning of
the Department of Energy’s surplus buildings and fa-
cilities at the Paducah Gaseous Diffusion Plant that
have no future anticipated reuse; and
(2) the remediation of Department of Energy
Material Storage Areas at the Paducah Gaseous Dif-
fusion Plant.
Such plan shall inventory all surplus facilities and build-
ings, and identify and rank health and safety risks associ-
ated with such facilities and buildings. Such plan shall in-
ventory all Department of Energy Material Storage Areas,
and identify and rank health and safety risks associated
with such Department of Energy Material Storage Areas.
The Department of Energy shall incorporate these risk fac-
tors in designing the sequence and schedule for the plan.
Such plan shall identify funding requirements that are in
addition to the expected outlays included in the Department
of Energy’s Environmental Management Plan for the Padu-
cah Gaseous Diffusion Plan.
TITLE IV—HYDROELECTRIC
ENERGY
SEC. 401. ALTERNATIVE CONDITIONS AND FISHWAYS.
(a) ALTERNATIVE MANDATORY CONDITIONS.—Section
4 of the Federal Power Act (16 U.S.C. 797) is amended
by adding at the end the following:
‘‘(h)(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 reservation falls deems a condition to such
license to be necessary under the first proviso of subsection
(e), the license applicant or any other party to the licensing
proceeding may propose an alternative condition.
‘‘(2) Notwithstanding the first proviso of subsection
(e), the Secretary of the department under whose super-
vision the reservation falls shall accept the proposed alter-
native condition referred to in paragraph (1), and the Com-
mission shall include in the license such alternative condi-
tion, if the Secretary of the appropriate department deter-
mines, based on substantial evidence provided by the party
proposing such alternative condition, that the alternative
condition—
‘‘(A) provides no less protection for the reserva-
tion than provided by the condition deemed necessary
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 condition deemed necessary by the
Secretary.
‘‘(3) Within one year after the enactment of this sub-
section, each Secretary concerned shall, by rule, establish
a process to expeditiously resolve conflicts arising under
this subsection.’’.
(b) ALTERNATIVE FISHWAYS.—Section 18 of the Fed-
eral Power Act (16 U.S.C. 811) is amended by—
(1) inserting ‘‘(a)’’ before the first sentence; and
(2) adding at the end the following:
‘‘(b)(1) Whenever the Commission shall require a li-
censee to construct, maintain, or operate a fishway pre-
scribed by the Secretary of the Interior or the Secretary of
Commerce under this section, the licensee or any other
party to the proceeding may propose an alternative to such
prescription to construct, maintain, or operate a fishway.
‘‘(2) Notwithstanding subsection (a), 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 (1),
if the Secretary of the appropriate department determines,
based on substantial evidence provided by the party pro-
posing such alternative, that the alternative—
‘‘(A) will be no less effective 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 prescribed by the
Secretary.
‘‘(3) Within one year after the enactment of this sub-
section, the Secretary of the Interior and the Secretary of
Commerce shall each, by rule, establish a process to expedi-
tiously resolve conflicts arising under this subsection.’’
SEC. 402. FERC DATA ON HYDROELECTRIC LICENSING.
(a) DATA COLLECTION PROCEDURES.—The Federal
Energy Regulatory Commission shall revise its procedures
regarding the collection of data in connection with the Com-
mission’s consideration of hydroelectric licenses under the
Federal Power Act. Such revised data collection procedures
shall be designed to provide the Commission with complete
and accurate information concerning the time and costs to
parties involved in the licensing process. Such data shall
be available for each significant stage in the licensing proc-
ess and shall be designed to identify projects with similar
characteristics so that analyses can be made of the time and
costs involved in licensing proceedings based upon the dif-
ferent characteristics of those proceedings.
(b) REPORTS.—Within 6 months after the date of en-
actment of this Act, the Commission shall notify the Com-
mittee on Energy and Commerce of the United States House
of Representatives and the Committee on Energy and Nat-
ural Resources of the United States Senate of the progress
made by the Commission under subsection (a), and within
one year after such date of enactment, the Commission shall
submit a report to such Committees specifying the measures
taken by the Commission pursuant to subsection (a).
TITLE V—CLEAN COAL
SEC. 501. SHORT TITLE.
This title may be cited as the ‘‘National Electricity
and Environmental Improvement Act’’.
SEC. 502. FINDINGS.
Congress finds that—
(1) reliable, affordable, increasingly clean elec-
tricity will continue to power the growing United
States economy;
(2) an increasing use of electrotechnologies, the
desire for continuous environmental improvement, a
more competitive electricity market, and concerns
about rising energy prices add importance to the need
for reliable, affordable, increasingly clean electricity;
(3) coal, which, as of the date of enactment of
this Act, accounts for more than 1⁄2 of all electricity
generated in the United States, is the most abundant
fossil energy resource of the United States;
(4) coal comprises more than 85 percent of all
fossil resources in the United States and exists in
quantities sufficient to supply the United States for
250 years at current usage rates;
(5) investments in electricity generating facility
emissions control technology over the past 30 years
have reduced the aggregate emissions of pollutants
from coal-based generating facilities by 21 percent,
even as coal use for electricity generation has nearly
tripled;
(6) continuous improvement in efficiency and
environmental performance from electricity gener-
ating facilities would allow continued use of coal and
preserve less abundant energy resources for other en-
ergy uses;
(7) new methods and equipment for converting
coal into electricity can effectively eliminate health-
threatening emissions and improve efficiency by as
much as 50 percent, but initial deployment of new
coal generation methods and equipment entails sig-
nificant risk that generators may be unable to accept
in a newly competitive electricity market; and
(8) continued environmental improvement in
coal-based generation and increasing the production
and supply of power generation facilities with less air
emissions, with the ultimate goal of near-zero emis-
sions, is important and desirable.
Subtitle A—Accelerated Clean Coal
Power Production Program
SEC. 511. DEFINITIONS.
In this subtitle:
(1) COST AND PERFORMANCE GOALS.—The term
‘‘cost and performance goals’’ means the cost and per-
formance goals established under section 512.
(2) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Energy.
SEC. 512. COST AND PERFORMANCE GOALS.
(a) IN GENERAL.—The Secretary shall perform an as-
sessment that establishes cost and performance goals with
respect to various coal-based electric generation facilities,
power production strategies, and other efforts that would
permit the continued cost-competitive use of coal for elec-
tricity generation, as chemical feedstocks, and as transpor-
tation fuel in 2007, 2015, and 2020.
(b) CONSULTATION.—In establishing the cost and per-
formance goals, the Secretary shall consult with representa-
tives of—
(1) the United States coal industry;
(2) State coal development agencies;
(3) the electric utility industry;
(4) railroads and other transportation indus-
tries;
(5) manufacturers of advanced coal-based equip-
ment;
(6) organizations representing workers;
(7) organizations formed to—
(A) promote the use of coal;
(B) further the goals of environmental pro-
tection; and
(C) promote the production and generation
of coal-based power from advanced facilities; and
(8) other appropriate Federal and State agen-
cies.
(c) TIMING.—The Secretary shall—
(1) not later than 120 days after the date of en-
actment of this Act, issue a set of draft cost and per-
formance goals for public comment; and
(2) not later than 180 days after the date of en-
actment of this Act, after taking into consideration
any public comments received, submit to Congress the
final cost and performance goals.
SEC. 513. STUDY.
(a) IN GENERAL.—Not later than 1 year after the date
of enactment of this Act, and once every 2 years thereafter
through 2016, the Secretary, in cooperation with the Sec-
retary of the Interior and the Administrator of the Environ-
mental Protection Agency, shall transmit to the Congress
a report containing the results of a study to—
(1) identify methods and equipment that, by
themselves or in combination with other efforts, may
be capable of achieving the cost and performance
goals;
(2) assess the costs that would be incurred by,
and the period of time that would be required for, the
production of power generation methods and equip-
ment that, by themselves or in combination with other
methods and equipment, contribute to the achievement
of the cost and performance goals;
(3) develop recommendations for the Department
of Energy, in cooperation with industry, to develop
and implement methods and equipment that, by
themselves or in combination with other efforts,
achieve the production and generation of coal-based
power meeting the cost and performance goals; and
(4) develop recommendations for additional au-
thorities required to achieve the cost and performance
goals.
(b) EXPERT ADVICE.—In carrying out this section, the
Secretary shall give due weight to the expert advice of rep-
resentatives of the entities described in section 512(b).
SEC. 514. PRODUCTION AND GENERATION OF COAL-BASED
POWER.
(a) IN GENERAL.—The Secretary shall carry out a
program to facilitate production and generation of coal-
based power through methods and equipment under—
(1) this subtitle;
(2) the Federal Nonnuclear Energy Research and
Development Act of 1974 (42 U.S.C. 5901 et seq.);
(3) the Energy Reorganization Act of 1974 (42
U.S.C. 5801 et seq.); and
(4) title XIII of the Energy Policy Act of 1992
(42 U.S.C. 13331 et seq.).
(b) CONDITIONS.—The program described in sub-
section (a) shall be designed to achieve the cost and perform-
ance goals.
SEC. 515. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated to the Secretary to carry out sections 512, 513, and
514, $100,000,000 for each of the fiscal years 2002 through
2012, to remain available until expended.
(b) CONDITIONS OF AUTHORIZATION.—The authoriza-
tion of appropriations under subsection (a)—
(1) shall be in addition to authorizations of ap-
propriations in effect on the date of enactment of this
Act; and
(2) shall not be a cap on Department of Energy
fossil energy research and development and clean coal
technology appropriations.
SEC. 516. CLEAN COAL POWER INITIATIVE.
(a) IN GENERAL.—The Secretary shall establish a
clean coal power initiative to facilitate the production and
generation of power from advanced coal-based methods and
equipment applicable to new or existing power plants, in-
cluding coproduction plants.
(b) REQUIREMENTS.—The methods and equipment to
be addressed under the initiative—
(1) shall be methods and equipment that, by
themselves or in combination with other methods and
equipment, advance efficiency and environmental per-
formance, and increase the supply of power and pro-
mote cost competitiveness, well beyond that which is
in operation or has been demonstrated as of the date
of enactment of this Act; and
(2) may include methods and equipment that
have not previously been envisioned for the production
and generation of coal-based power.
(c) PLAN.—Not later than 120 days after the date of
enactment of this Act, the Secretary shall transmit to Con-
gress a plan to carry out subsection (a) that includes a de-
scription of—
(1) the program elements and management
structure to be used;
(2) milestones to be achieved with respect to the
production and generation of coal-based power meth-
ods and equipment; and
(3) the activities proposed to be conducted at fa-
cilities that serve or are located at new or existing
coal-based electric generation units having at least 50
megawatts nameplate rating, including improvements
to allow the units to achieve 1 or more of the fol-
lowing:
(A) An overall design efficiency improve-
ment of not less than 3 percent as compared with
the efficiency of the unit as operated as of the
date of enactment of this Act and before any ret-
rofit, repowering, replacement, or installation.
(B) A significant improvement in, or new
alternative method or equipment to enhance, the
environmental performance related to the control
of sulfur dioxide, nitrogen oxide, or mercury in
a manner that is different and well below the
cost of activities at facilities that are in oper-
ation or have been in operation as of the date of
enactment of this Act.
(C) A means of recycling or reusing a sig-
nificant portion of coal combustion or gasifi-
cation wastes or byproducts produced by coal-
based generating units, excluding practices that
are generally available as of the date of enact-
ment of this Act.
(D) A means to capture, separate, and reuse
or dispose of carbon dioxide that is different and
well below the cost of methods and equipment
that are in operation or have been in operation
as of the date of enactment of this Act.
SEC. 517. FINANCIAL ASSISTANCE.
(a) IN GENERAL.—Not later than 180 days after the
date on which the Secretary transmits to Congress the plan
under section 516(c), the Secretary shall solicit proposals
for projects that serve or are located at new or existing fa-
cilities designed to achieve 1 or more of the levels of per-
formance set forth in section 516(c)(3).
(b) PROJECT CRITERIA.—A solicitation under sub-
section (a) may include solicitation of a proposal for a
project to demonstrate—
(1) an overall design efficiency improvement of
not less 3 percentage points as compared with the effi-
ciency of the unit as operated as of the date of enact-
ment of this Act and with no increase in the potential
100
to emit sulfur dioxide, nitrogen oxide, particulate
matter, mercury, or carbon monoxide;
(2) a reduction of emissions to a level of not
more than—
(A)(i) in the case of sulfur dioxide—
(I) in the case of coal with a potential
combustion concentration sulfur emission of
1.2 or more pounds per million British
thermal units of heat input, 5 percent of the
potential combustion concentration sulfur
dioxide emissions; or
(II) in the case of a coal with a poten-
tial combustion concentration of less than
1.2 pounds of per million British thermal
units of heat input, 15 percent of the poten-
tial combustion concentration of sulfur di-
oxide emissions;
(ii) in the case of nitrogen oxide—
(I) in the case of a boiler other than a
cyclone-fired boiler, emissions of 0.1 pound
per million British thermal units of heat; or
(II) in the case of a cyclone-fired boil-
er, 15 percent of the uncontrolled nitrogen
oxide emissions from the boiler; or
101
(iii) in the case of particulate matter, emis-
sions of 0.02 pound per million British thermal
units of heat input; or
(B) the emission levels for the pollutants
identified in subparagraph (A) that are specified
in the new source performance standards of the
Clean Air Act (42 U.S.C. 7411) in effect at the
time of construction, installation, or retrofitting
of the advanced coal-based method or equipment
for the category of source if they are lower than
the levels specified in subparagraph (A); or
(3) the production of coal combustion byproducts
that are capable of obtaining economic values signifi-
cantly greater than byproducts produced as of the
date of enactment of this Act with no increase in the
potential to emit sulfur dioxide, nitrogen oxide, par-
ticulate matter, mercury, or carbon monoxide.
(c) FINANCIAL ASSISTANCE.—The Secretary shall pro-
vide financial assistance to projects that are likely to—
(1) achieve overall cost reductions in the utiliza-
tion of coal to generate useful forms of energy;
(2) improve the competitiveness of coal among
various forms of energy in order to maintain a diver-
sity of fuel choices in the United States to meet elec-
tricity generation requirements;
102
(3) achieve, in a cost-effective manner, 1 or more
of the criteria described in the solicitation; and
(4) demonstrate methods and equipment that are
applicable to 25 percent of the electricity generating
facilities that use coal as the primary feedstock as of
the date of enactment of this Act.
(d) FEDERAL SHARE.—The Federal share of the cost
of a project funded under this section shall not exceed 50
percent.
(e) FUNDING.—To carry out this section, the Secretary
may use any unobligated funds available to the Secretary
and any funds obligated to any project selected under the
clean coal technology program that become unobligated.
Subtitle B—Credit for Emission Re-
ductions and Efficiency Improve-
ments in Existing Coal-Based
Electricity Generation Facilities
SEC. 521. CREDIT FOR INVESTMENT IN QUALIFYING CLEAN
COAL TECHNOLOGY.
(a) ALLOWANCE OF QUALIFYING CLEAN COAL TECH-
NOLOGY UNIT CREDIT.—Section 46 of the Internal Revenue
Code of 1986 (relating to amount of credit) is amended by
striking ‘‘and’’ at the end of paragraph (2), by striking the
period at the end of paragraph (3) and inserting ‘‘, and’’,
and by adding at the end the following:
103
‘‘(4) the qualifying clean coal technology unit
credit.’’.
(b) AMOUNT
OF QUALIFYING CLEAN COAL TECH-
NOLOGY UNIT CREDIT.—Subpart E of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 1986
(relating to rules for computing investment credit) is
amended by inserting after section 48 the following:
‘‘SEC. 48A. QUALIFYING CLEAN COAL TECHNOLOGY UNIT
CREDIT.
‘‘(a) IN GENERAL.—For purposes of section 46, the
qualifying clean coal technology unit credit for any taxable
year is an amount equal to 10 percent of the qualified in-
vestment in a qualifying system of continuous emission con-
trol for such taxable year.
‘‘(b) QUALIFYING SYSTEM OF CONTINUOUS EMISSION
CONTROL.—
‘‘(1) IN GENERAL.—For purposes of subsection
(a), the term ‘qualifying system of continuous emis-
sion control’ means a system of the taxpayer which—
‘‘(A) serves, is added to, or retrofits an ex-
isting coal-based electricity generation unit, the
construction, installation, or retrofitting of
which is completed by the taxpayer (but only
with respect to that portion of the basis which is
104
properly attributable to such construction, in-
stallation, or retrofitting),
‘‘(B) reduces the discharge into the atmos-
phere of 1 or more of the following pollutants to
not more than—
‘‘(i) 5 percent of the potential combus-
tion concentration sulfur dioxide emissions
for a coal with a potential combustion con-
centration sulfur emission of 1.2 lb/million
btu of heat input or greater,
‘‘(ii) 15 percent of the potential com-
bustion concentration sulfur dioxide emis-
sions for a coal with a potential combustion
concentration sulfur emission of less than
1.2 lb/million Btu of heat input,
‘‘(iii) nitrogen oxide emissions of 0.l lb
per million Btu of heat input from other
than cyclone-fired boilers,
‘‘(iv) 15 percent of the uncontrolled ni-
trogen oxide emissions from cyclone-fired
boilers,
‘‘(v) particulate emission of 0.02 lb per
million Btu of heat input, and
‘‘(vi) the emission levels specified in
the new source performance standards of the
105
Clean Air Act (42 U.S.C. 7411) in force at
the time of construction, installation or ret-
rofitting of the qualifying system of contin-
uous emission control for the category of
source if such level is lower than the levels
specified in clause (i), (ii), (iii), (iv), or (v),
‘‘(C) is depreciable under section 167,
‘‘(D) has a useful life of not less than 4
years, and
‘‘(E) is located in the United States.
‘‘(2) SPECIAL RULE FOR SALE-LEASEBACKS.—
For purposes of subparagraph (A) of paragraph (1),
in the case of a unit which—
‘‘(A) is originally placed in service by a
person, and
‘‘(B) is sold and leased back by such person,
or is leased to such person, within 3 months after
the date such unit was originally placed in serv-
ice, for a period of not less than 12 years,
such unit shall be treated as originally placed in serv-
ice not earlier than the date on which such property
is used under the leaseback (or lease) referred to in
subparagraph (B). The preceding sentence shall not
apply to any property if the lessee and lessor of such
property make an election under this sentence. Such
106
an election, once made, may be revoked only with the
consent of the Secretary.
‘‘(c) EXISTING COAL-BASED ELECTRICITY GENERA-
TION UNIT.—For purposes of subsection (a), the term ‘exist-
ing coal-based electricity generating unit’ means, with re-
spect to any taxable year, a steam generator-turbine unit
which uses coal to produce 75 percent or more of its output
as electricity and was operated commercially before the ef-
fective date of this section.
‘‘(d) LIMIT ON QUALIFYING CLEAN COAL TECHNOLOGY
UNIT CREDIT.—For purposes of subsection (a), the credit
shall be applicable to not more than the first $100,000,000
of qualifying investment in a qualifying system of contin-
uous emission control at any 1 existing coal-based elec-
tricity generating unit.
‘‘(e) QUALIFIED INVESTMENT.—For purposes of sub-
section (a), the term ‘qualified investment’ means, with re-
spect to any taxable year, the basis of a qualifying system
of continuous emission control placed in service by the tax-
payer during such taxable year.
‘‘(f) QUALIFIED PROGRESS EXPENDITURES.—
‘‘(1) INCREASE IN QUALIFIED INVESTMENT.—In
the case of a taxpayer who has made an election
under paragraph (5), the amount of the qualified in-
vestment of such taxpayer for the taxable year (deter-
107
mined under subsection (e) without regard to this
subsection) shall be increased by an amount equal to
the aggregate of each qualified progress expenditure
for the taxable year with respect to progress expendi-
ture property.
‘‘(2) PROGRESS
EXPENDITURE
PROPERTY
DE-
FINED.—For purposes of this subsection, the term
‘progress expenditure property’ means any property
being constructed by or for the taxpayer and which it
is reasonable to believe will qualify as a qualifying
system of continuous emission control which is being
constructed by or for the taxpayer when it is placed
in service.
‘‘(3) QUALIFIED PROGRESS EXPENDITURES DE-
FINED.—For purposes of this subsection—
‘‘(A) SELF-CONSTRUCTED
PROPERTY.—In
the case of any self-constructed property, the
term ‘qualified progress expenditures’ means the
amount which, for purposes of this subpart, is
properly chargeable (during such taxable year)
to capital account with respect to such property.
‘‘(B) NONSELF-CONSTRUCTED PROPERTY.—
In the case of nonself-constructed property, the
term ‘qualified progress expenditures’ means the
108
amount paid during the taxable year to another
person for the construction of such property.
‘‘(4) OTHER DEFINITIONS.—For purposes of this
subsection—
‘‘(A) SELF-CONSTRUCTED PROPERTY.—The
term ‘self-constructed property’ means property
for which it is reasonable to believe that more
than half of the construction expenditures will be
made directly by the taxpayer.
‘‘(B) NONSELF-CONSTRUCTED PROPERTY.—
The term ‘nonself-constructed property’ means
property which is not self-constructed property.
‘‘(C) CONSTRUCTION, ETC.—The term ‘con-
struction’ includes reconstruction and erection,
and the term ‘constructed’ includes reconstructed
and erected.
‘‘(D) ONLY CONSTRUCTION OF QUALIFYING
SYSTEM OF CONTINUOUS EMISSION CONTROL TO
BE TAKEN INTO ACCOUNT.—Construction shall be
taken into account only if, for purposes of this
subpart, expenditures therefor are properly
chargeable to capital account with respect to the
property.
‘‘(5) ELECTION.—An election under this sub-
section may be made at such time and in such man-
109
ner as the Secretary may by regulations prescribe.
Such an election shall apply to the taxable year for
which made and to all subsequent taxable years. Such
an election, once made, may not be revoked except
with the consent of the Secretary.
‘‘(g) COORDINATION WITH OTHER CREDITS.—This
section shall not apply to any property with respect to
which the rehabilitation credit under section 47 or the en-
ergy credit under section 48 is allowed unless the taxpayer
elects to waive the application of such credit to such prop-
erty.
‘‘(h) TERMINATION.—This section shall not apply with
respect to any qualified investment made more than 10
years after the effective date of this section.’’.
(c) RECAPTURE.—Section 50(a) of the Internal Rev-
enue Code of 1986 (relating to other special rules) is amend-
ed by adding at the end the following:
‘‘(6) SPECIAL RULES RELATING TO QUALIFYING
SYSTEM
OF
CONTINUOUS
EMISSION
CONTROL.—For
purposes of applying this subsection in the case of
any credit allowable by reason of section 48A, the fol-
lowing shall apply:
‘‘(A) GENERAL
RULE.—In lieu of the
amount of the increase in tax under paragraph
(1), the increase in tax shall be an amount equal
110
to the investment tax credit allowed under sec-
tion 38 for all prior taxable years with respect
to a qualifying system of continuous emission
control (as defined by section 48A(b)(1)) multi-
plied by a fraction whose numerator is the num-
ber of years remaining to fully depreciate under
this title the qualifying system of continuous
emission control disposed of, and whose denomi-
nator is the total number of years over which
such unit would otherwise have been subject to
depreciation. For purposes of the preceding sen-
tence, the year of disposition of the qualifying
system of continuous emission control property
shall be treated as a year of remaining deprecia-
tion.
‘‘(B) PROPERTY CEASES TO QUALIFY FOR
PROGRESS EXPENDITURES.—Rules similar to the
rules of paragraph (2) shall apply in the case of
qualified progress expenditures for a qualifying
system of continuous emission control under sec-
tion 48A, except that the amount of the increase
in tax under subparagraph (A) of this para-
graph shall be substituted in lieu of the amount
described in such paragraph (2).
111
‘‘(C) APPLICATION
OF
PARAGRAPH.—This
paragraph shall be applied separately with re-
spect to the credit allowed under section 38 re-
garding a qualifying system of continuous emis-
sion control.’’.
(d) TRANSITIONAL RULE.—Section 39(d) of the Inter-
nal Revenue Code of 1986 (relating to transitional rules)
is amended by adding at the end the following:
‘‘(11) NO CARRYBACK OF SECTION 48A CREDIT
BEFORE EFFECTIVE DATE.—No portion of the unused
business credit for any taxable year which is attrib-
utable to the qualifying clean coal technology unit
credit determined under section 48A may be carried
back to a taxable year ending before the date of enact-
ment of section 48A.’’.
(e) TECHNICAL AMENDMENTS.—
(1) Section 49(a)(1)(C) of the Internal Revenue
Code of 1986 is amended by striking ‘‘and’’ at the end
of clause (ii), by striking the period at the end of
clause (iii) and inserting ‘‘, and’’, and by adding at
the end the following:
‘‘(iv) the portion of the basis of any
qualifying system of continuous emission
control attributable to any qualified invest-
ment (as defined by section 48A(e)).’’.
112
(2) Section 50(a)(4) of such Code is amended by
striking ‘‘and (2)’’ and inserting ‘‘, (2), and (6)’’.
(3) Section 50(c) of such Code is amended by
adding at the end the following:
‘‘(6) NONAPPLICATION.—Paragraphs (1) and (2)
shall not apply to any qualifying clean coal tech-
nology unit credit under section 48A.’’.
(4) The table of sections for subpart E of part IV
of subchapter A of chapter 1 of such Code is amended
by inserting after the item relating to section 48 the
following:
‘‘Sec. 48A. Qualifying clean coal technology unit credit.’’.
(f) EFFECTIVE DATE.—The amendments made by
this section shall apply to periods after December 31,
2001, under rules similar to the rules of section 48(m)
of the Internal Revenue Code of 1986 (as in effect on the
day before the date of enactment of the Revenue Reconcili-
ation Act of 1990).
SEC. 522. CREDIT FOR PRODUCTION FROM A QUALIFYING
CLEAN COAL TECHNOLOGY UNIT.
(a) CREDIT FOR PRODUCTION FROM A QUALIFYING
CLEAN COAL TECHNOLOGY UNIT.—Subpart D of part IV
of subchapter A of chapter 1 of the Internal Revenue Code
of 1986 (relating to business related credits) is amended
by adding at the end the following:
113
‘‘SEC. 45G. CREDIT FOR PRODUCTION FROM A QUALIFYING
CLEAN COAL TECHNOLOGY UNIT.
‘‘(a) GENERAL RULE.—For purposes of section 38,
the qualifying clean coal technology production credit of
any taxpayer for any taxable year is equal to the product
of—
‘‘(1) the applicable amount of clean coal tech-
nology production credit, multiplied by
‘‘(2) the kilowatt hours of electricity produced
by the taxpayer during such taxable year at a quali-
fying clean coal technology unit during the 10-year
period beginning on the date the unit was returned
to service after retrofit, repowering, or replacement.
‘‘(b) APPLICABLE AMOUNT.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the applicable amount of clean coal technology
production credit is equal to $0.0034.
‘‘(2) INFLATION
ADJUSTMENT
FACTOR.—For
calendar years after 2001, the applicable amount of
clean coal technology production credit shall be ad-
justed by multiplying such amount by the inflation
adjustment factor for the calendar year in which the
amount is applied. If any amount as increased under
the preceding sentence is not a multiple of 0.01 cent,
such amount shall be rounded to the nearest mul-
tiple of 0.01 cent.
114
‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section—
‘‘(1) QUALIFYING
CLEAN
COAL
TECHNOLOGY
UNIT.—The term ‘qualifying clean coal technology
unit’ means a unit of the taxpayer which—
‘‘(A) is an existing coal-based electricity
generating steam generator-turbine unit,
‘‘(B) has a nameplate capacity rating of
not more than 300,000 kilowatts, and
‘‘(C) has been retrofitted, repowered, or re-
placed with a clean coal technology within 10
years after the effective date of this section.
‘‘(2) CLEAN
COAL
TECHNOLOGY.—The term
‘clean coal technology’ means technology which—
‘‘(A) uses coal to produce 50 percent or
more of its thermal output as electricity, includ-
ing advanced pulverized coal or atmospheric flu-
idized bed combustion, pressurized fluidized bed
combustion, integrated gasification combined
cycle, or any other technology for the produc-
tion of electricity,
‘‘(B) has a design heat rate not less than
500 Btu/kWh below that of the existing unit be-
fore it is retrofit, repowered, or replaced with
the qualifying clean coal technology,
115
‘‘(C) has a maximum design heat rate of
not more than 9,500 Btu/kWh when the design
coal has a heat content of more than 9,000 Btu
per pound,
‘‘(D) has a maximum design heat rate of
not more than 10,500 Btu/kWh when the de-
sign coal has a heat content of 9,000 Btu per
pound or less, and
‘‘(E) reduces the discharge into the atmos-
phere of 1 or more of the following pollutants
to not more than—
‘‘(i) 5 percent of the potential com-
bustion concentration sulfur dioxide emis-
sions for a coal with a potential combus-
tion concentration sulfur emission of 1.2
lb/million btu of heat input or greater,
‘‘(ii) 15 percent of the potential com-
bustion concentration sulfur dioxide emis-
sions for a coal with a potential combus-
tion concentration sulfur emission of less
than 1.2 lb/million Btu of heat input,
‘‘(iii) nitrogen oxide emissions of 0.1
lb per million Btu of heat input from other
than cyclone-fired boilers,
116
‘‘(iv) 15 percent of the uncontrolled
nitrogen oxide emissions from cyclone-fired
boilers,
‘‘(v) particulate emissions of 0.02 lb
per million Btu of heat input, and
‘‘(vi) the emission levels specified in
the new source performance standards of
the Clean Air Act (42 U.S.C. 7411) in ef-
fect at the time of construction, installa-
tion or retrofitting of the qualifying clean
coal technology unit for the category of
source if such level is lower than the levels
specified in clause (i), (ii), (iii), (iv), or (v).
‘‘(3) APPLICATION OF CERTAIN RULES.—The
rules of paragraphs (3), (4), and (5) of section 45
shall apply.
‘‘(4) INFLATION
ADJUSTMENT
FACTOR.—The
term ‘inflation adjustment factor’ means, with re-
spect to a calendar year, a fraction the numerator
of which is the GDP implicit price deflator for the
preceding calendar year and the denominator of
which is the GDP implicit price deflator for the cal-
endar year 2001.
‘‘(5) GDP IMPLICIT
PRICE
DEFLATOR.—The
term ‘GDP implicit price deflator’ means the most
117
recent revision of the implicit price deflator for the
gross domestic product as computed by the Depart-
ment of Commerce before March 15 of the calendar
year.
‘‘(d) COORDINATION WITH OTHER CREDITS.—This
section shall not apply to any property with respect to
which the qualifying clean coal technology unit credit under
section 48A is allowed unless the taxpayer elects to waive
the application of such credit to such property.’’.
(b) CREDIT TREATED AS BUSINESS CREDIT.—Section
38(b) of the Internal Revenue Code of 1986 is amended by
striking ‘‘plus’’ at the end of paragraph (14), by striking
the period at the end of paragraph (15) and inserting ‘‘,
plus’’, and by adding at the end the following:
‘‘(16) the qualifying clean coal technology pro-
duction credit determined under section 45G(a).’’.
(c) TRANSITIONAL RULE.—Section 39(d) of the Inter-
nal Revenue Code of 1986 (relating to transitional rules),
as amended by section 201(d), is amended by adding at
the end the following:
‘‘(12) NO CARRYBACK OF SECTION 45G CREDIT
BEFORE EFFECTIVE DATE.—No portion of the unused
business credit for any taxable year which is attrib-
utable to the qualifying clean coal technology produc-
tion credit determined under section 45G may be car-
118
ried back to a taxable year ending before the date of
enactment of section 45G.’’.
(d) CLERICAL AMENDMENT.—The table of sections for
subpart D of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 is amended by adding at
the end the following:
‘‘Sec. 45G. Credit for production from a qualifying clean coal
technology unit.’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to production after the date of en-
actment of this Act.
Subtitle C—Incentives for Early
Commercial Applications of Ad-
vanced Clean Coal Technologies
SEC. 531. CREDIT FOR INVESTMENT IN QUALIFYING AD-
VANCED CLEAN COAL TECHNOLOGY.
(a) ALLOWANCE OF QUALIFYING ADVANCED CLEAN
COAL TECHNOLOGY FACILITY CREDIT.—Section 46 of
the Internal Revenue Code of 1986 (relating to amount
of credit), as amended by section 201(a), is amended by
striking ‘‘and’’ at the end of paragraph (3), by striking
the period at the end of paragraph (4) and inserting ‘‘,
and’’, and by adding at the end the following:
‘‘(5) the qualifying advanced clean coal tech-
nology facility credit.’’.
119
(b) AMOUNT
OF QUALIFYING ADVANCED CLEAN
COAL TECHNOLOGY FACILITY CREDIT.—Subpart E of
part IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 (relating to rules for computing invest-
ment credit), as amended by section 521(b), is amended
by inserting after section 48A the following:
‘‘SEC. 48B. QUALIFYING ADVANCED CLEAN COAL TECH-
NOLOGY FACILITY CREDIT.
‘‘(a) IN GENERAL.—For purposes of section 46, the
qualifying advanced clean coal technology facility credit
for any taxable year is an amount equal to 10 percent
of the qualified investment in a qualifying advanced clean
coal technology facility for such taxable year.
‘‘(b) QUALIFYING ADVANCED CLEAN COAL TECH-
NOLOGY FACILITY.—
‘‘(1) IN GENERAL.—For purposes of subsection
(a), the term ‘qualifying advanced clean coal tech-
nology facility’ means a facility of the taxpayer
which—
‘‘(A)(i)(I) original use of which commences
with the taxpayer, or
‘‘(II) is a retrofitted or repowered conven-
tional technology facility, the retrofitting or
repowering of which is completed by the tax-
payer (but only with respect to that portion of
120
the basis which is properly attributable to such
retrofitting or repowering), or
‘‘(ii) is acquired through purchase (as de-
fined by section 179(d)(2)),
‘‘(B) is depreciable under section 167,
‘‘(C) has a useful life of not less than 4
years,
‘‘(D) is located in the United States, and
‘‘(E) uses qualifying advanced clean coal
technology.
‘‘(2) SPECIAL RULE FOR SALE-LEASEBACKS.—
For purposes of subparagraph (A) of paragraph (1),
in the case of a facility which—
‘‘(A) is originally placed in service by a
person, and
‘‘(B) is sold and leased back by such per-
son, or is leased to such person, within 3
months after the date such facility was origi-
nally placed in service, for a period of not less
than 12 years,
such facility shall be treated as originally placed in
service not earlier than the date on which such prop-
erty is used under the leaseback (or lease) referred
to in subparagraph (B). The preceding sentence
shall not apply to any property if the lessee and les-
121
sor of such property make an election under this
sentence. Such an election, once made, may be re-
voked only with the consent of the Secretary.
‘‘(c) QUALIFYING ADVANCED CLEAN COAL TECH-
NOLOGY.—For purposes of paragraph (1)—
‘‘(1) IN GENERAL.—The term ‘qualifying ad-
vanced clean coal technology’ means, with respect to
clean coal technology—
‘‘(A) which has—
‘‘(i) multiple applications, with a com-
bined capacity of not more than 5,000
megawatts (4,000 megawatts before 2009),
of advanced pulverized coal or atmospheric
fluidized bed combustion technology—
‘‘(I) installed as a new, retrofit,
or repowering application,
‘‘(II) operated between 2000 and
2012, and
‘‘(III) having a design net heat
rate of not more than 9,500 Btu per
kilowatt hour when the design coal
has a heat content of more than 9,000
Btu per pound, or a design net heat
rate of not more than 9,900 Btu per
kilowatt hour when the design coal
122
has a heat content of 9,000 Btu per
pound or less,
‘‘(ii) multiple applications, with a
combined capacity of not more than 1,000
megawatts (500 megawatts before 2009 and
750 megawatts before 2013), of pressurized
fluidized bed combustion technology—
‘‘(I) installed as a new, retrofit,
or repowering application,
‘‘(II) operated between 2000 and
2016, and
‘‘(III) having a design net heat
rate of not more than 8,400 Btu per
kilowatt hour when the design coal has
a heat content of more than 9,000 Btu
per pound, or a design net heat rate of
not more than 9,900 Btu’s per kilowatt
hour when the design coal has a heat
content of 9,000 Btu per pound or less,
and
‘‘(iii) multiple applications, with a
combined capacity of not more than 2,000
megawatts (1,000 megawatts before 2009
and 1,500 megawatts before 2013), of inte-
grated gasification combined cycle tech-
123
nology, with or without fuel or chemical co-
production—
‘‘(I) installed as a new, retrofit,
or repowering application,
‘‘(II) operated between 2000 and
2016,
‘‘(III) having a design net heat
rate of not more than 8,550 Btu per
kilowatt hour when the design coal has
a heat content of more than 9,000 Btu
per pound, or a design net heat rate of
not more than 9,900 Btu per kilowatt
hour when the design coal has a heat
content of 9,000 Btu per pound or less,
and
‘‘(IV) having a net thermal effi-
ciency on any fuel or chemical co-pro-
duction of not less than 39 percent
(higher heating value), or
‘‘(iv) multiple applications, with a
combined capacity of not more than 2,000
megawatts (1,000 megawatts before 2009
and 1,500 megawatts before 2013) of tech-
nology for the production of electricity—
124
‘‘(I) installed as a new, retrofit,
or repowering application,
‘‘(II) operated between 2000 and
2016, and
‘‘(III) having a carbon emission
rate which is not more than 85 percent
of conventional technology, and
‘‘(B) which reduces the discharge into the
atmosphere of 1 or more of the following pollut-
ants to not more than—
‘‘(i) 5 percent of the potential combus-
tion concentration sulfur dioxide emissions
for a coal with a potential combustion con-
centration sulfur emission of 1.2 lb/million
btu of heat input or greater,
‘‘(ii) 15 percent of the potential com-
bustion concentration sulfur dioxide emis-
sions for a coal with a potential combustion
concentration sulfur emission of less than
1.2 lb/million Btu of heat input,
‘‘(iii) nitrogen oxide emissions of 0.1 lb
per million Btu of heat input from other
than cyclone-fired boilers,
125
‘‘(iv) 15 percent of the uncontrolled ni-
trogen oxide emissions from cyclone-fired
boilers,
‘‘(v) particulate emissions of 0.02 lb
per million Btu of heat input, and
‘‘(vi) the emission levels specified in
the new source performance standards of the
Clean Air Act (42 U.S.C. 7411) in effect at
the time of retrofitting, repowering, or re-
placement of the qualifying clean coal tech-
nology unit for the category of source if
such level is lower than the levels specified
in clause (i), (ii), (iii), (iv), or (v).
‘‘(2) EXCEPTIONS.—Such term shall not include
any projects receiving or scheduled to receive funding
under the Clean Coal Technology Program, or the
Power Plant Improvement administered by the Sec-
retary of the Department of Energy or a Qualifying
Clean Coal Technology Unit as defined in section
45G(c)(1).
‘‘(d) CLEAN COAL TECHNOLOGY.—The term ‘clean coal
technology’ means advanced technology which uses coal to
produce 75 percent or more of its thermal output as elec-
tricity including advanced pulverized coal or atmospheric
fluidized bed combustion, pressurized fluidized bed combus-
126
tion, integrated gasification combined cycle with or without
fuel or chemical co-production, and any other technology
for the production of electricity which exceeds the perform-
ance of conventional technology.
‘‘(e) CONVENTIONAL TECHNOLOGY.—The term ‘conven-
tional technology’ means—
‘‘(1) coal-fired combustion technology with a de-
sign net heat rate of not less than 9,500 Btu per kilo-
watt hour (HHV) and a carbon equivalents emission
rate of not more than 0.54 pounds of carbon per kilo-
watt hour when the design coal has a heat content of
more than 9,000 Btu per pound,
‘‘(2) coal-fired combustion technology with a de-
sign net heat rate of not less than 10,500 Btu per kil-
owatt hour (HHV) and a carbon equivalents emission
rate of not more than 0.60 pounds of carbon per kilo-
watt hour when the design coal has a heat content of
9,000 Btu per pound or less, or
‘‘(3) natural gas-fired combustion technology
with a design net heat rate of not less than 7,500 Btu
per kilowatt hour (HHV) and a carbon equivalents
emission rate of not more than 0.24 pounds of carbon
per kilowatt hour.
‘‘(f) DESIGN NET HEAT RATE.—The design net heat
rate shall be based on the design annual heat input to and
127
the design annual net electrical output from the qualifying
advanced clean coal technology (determined without regard
to such technology’s co-generation of steam).
‘‘(g) SELECTION CRITERIA.—Selection criteria for
qualifying advanced clean coal technology facilities—
‘‘(1) shall be established by the Secretary of En-
ergy as part of a competitive solicitation,
‘‘(2) shall include primary criteria of minimum
design net heat rate, maximum design thermal effi-
ciency, environmental performance, and lowest cost to
the government, and
‘‘(3) shall include supplemental criteria as deter-
mined appropriate by the Secretary of Energy.
‘‘(h) QUALIFIED INVESTMENT.—For purposes of sub-
section (a), the term ‘qualified investment’ means, with re-
spect to any taxable year, the basis of a qualifying advanced
clean coal technology facility placed in service by the tax-
payer during such taxable year.
‘‘(i) QUALIFIED PROGRESS EXPENDITURES.—
‘‘(1) INCREASE IN QUALIFIED INVESTMENT.—In
the case of a taxpayer who has made an election
under paragraph (5), the amount of the qualified in-
vestment of such taxpayer for the taxable year (deter-
mined under subsection (c) without regard to this sec-
tion) shall be increased by an amount equal to the ag-
128
gregate of each qualified progress expenditure for the
taxable year with respect to progress expenditure
property.
‘‘(2) PROGRESS
EXPENDITURE
PROPERTY
DE-
FINED.—For purposes of this subsection, the term
‘progress expenditure property’ means any property
being constructed by or for the taxpayer and which it
is reasonable to believe will qualify as a qualifying
advanced clean coal technology facility which is being
constructed by or for the taxpayer when it is placed
in service.
‘‘(3) QUALIFIED PROGRESS EXPENDITURES DE-
FINED.—For purposes of this subsection—
‘‘(A) SELF-CONSTRUCTED
PROPERTY.—In
the case of any self-constructed property, the
term ‘qualified progress expenditures’ means the
amount which, for purposes of this subpart, is
properly chargeable (during such taxable year)
to capital account with respect to such property.
‘‘(B) NONSELF-CONSTRUCTED PROPERTY.—
In the case of nonself-constructed property, the
term ‘qualified progress expenditures’ means the
amount paid during the taxable year to another
person for the construction of such property.
129
‘‘(4) OTHER DEFINITIONS.—For purposes of this
subsection—
‘‘(A) SELF-CONSTRUCTED PROPERTY.—The
term ‘self-constructed property’ means property
for which it is reasonable to believe that more
than half of the construction expenditures will be
made directly by the taxpayer.
‘‘(B) NONSELF-CONSTRUCTED PROPERTY.—
The term ‘nonself-constructed property’ means
property which is not self-constructed property.
‘‘(C) CONSTRUCTION, ETC.—The term ‘con-
struction’ includes reconstruction and erection,
and the term ‘constructed’ includes reconstructed
and erected.
‘‘(D) ONLY CONSTRUCTION OF QUALIFYING
ADVANCED CLEAN COAL TECHNOLOGY FACILITY
TO
BE
TAKEN
INTO
ACCOUNT.—Construction
shall be taken into account only if, for purposes
of this subpart, expenditures therefor are prop-
erly chargeable to capital account with respect to
the property.
‘‘(5) ELECTION.—An election under this sub-
section may be made at such time and in such man-
ner as the Secretary may by regulations prescribe.
Such an election shall apply to the taxable year for
130
which made and to all subsequent taxable years. Such
an election, once made, may not be revoked except
with the consent of the Secretary.
‘‘(j) COORDINATION WITH OTHER CREDITS.—This sec-
tion shall not apply to any property with respect to which
the rehabilitation credit under section 47 or the energy cred-
it under section 48 is allowed unless the taxpayer elects to
waive the application of such credit to such property.
‘‘(k) TERMINATION.—This section shall not apply with
respect to any qualified investment made more than 10
years after the effective date of this section.’’.
(c) RECAPTURE.—Section 50(a) of the Internal Rev-
enue Code of 1986 (relating to other special rules), as
amended by section 201(c), is amended by adding at the
end the following:
‘‘(7) SPECIAL RULES RELATING TO QUALIFYING
ADVANCED CLEAN COAL TECHNOLOGY FACILITY.—For
purposes of applying this subsection in the case of
any credit allowable by reason of section 48B, the fol-
lowing shall apply:
‘‘(A) GENERAL
RULE.—In lieu of the
amount of the increase in tax under paragraph
(1), the increase in tax shall be an amount equal
to the investment tax credit allowed under sec-
tion 38 for all prior taxable years with respect
131
to a qualifying advanced clean coal technology
facility (as defined by section 48B(b)(1)) multi-
plied by a fraction whose numerator is the num-
ber of years remaining to fully depreciate under
this title the qualifying advanced clean coal tech-
nology facility disposed of, and whose denomi-
nator is the total number of years over which
such facility would otherwise have been subject to
depreciation. For purposes of the preceding sen-
tence, the year of disposition of the qualifying
advanced clean coal technology facility property
shall be treated as a year of remaining deprecia-
tion.
‘‘(B) PROPERTY CEASES TO QUALIFY FOR
PROGRESS EXPENDITURES.—Rules similar to the
rules of paragraph (2) shall apply in the case of
qualified progress expenditures for a qualifying
advanced clean coal technology facility under
section 48B, except that the amount of the in-
crease in tax under subparagraph (A) of this
paragraph shall be substituted in lieu of the
amount described in such paragraph (2).
‘‘(C) APPLICATION
OF
PARAGRAPH.—This
paragraph shall be applied separately with re-
spect to the credit allowed under section 38 re-
133
(2) Section 50(a)(4) of such Code, is amended by
striking ‘‘and (6)’’ and inserting ‘‘(6), and (7)’’.
(3) Section 50(c)(6) of such Code, is amended by
inserting ‘‘or any advanced clean coal technology fa-
cility credit under section 48B’’ after ‘‘section 48A’’.
(4) The table of sections for subpart E of part IV
of subchapter A of chapter 1 of such Code, is amended
by inserting after the item relating to section 48A the
following:
‘‘Sec. 48B. Qualifying advanced clean coal technology facility
credit.’’.
(f) EFFECTIVE DATE.—The amendments made by
this section shall apply to periods after December 31,
2001, under rules similar to the rules of section 48(m)
of the Internal Revenue Code of 1986 (as in effect on the
day before the date of enactment of the Revenue Reconcili-
ation Act of 1990).
SEC. 532. CREDIT FOR PRODUCTION FROM QUALIFYING
ADVANCED CLEAN COAL TECHNOLOGY.
(a) CREDIT FOR PRODUCTION FROM QUALIFYING
ADVANCED CLEAN COAL TECHNOLOGY.—Subpart D of
part IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 (relating to business related credits),
as amended by section 522(a), is amended by adding at
the end the following:
134
‘‘SEC. 45H. CREDIT FOR PRODUCTION FROM QUALIFYING
ADVANCED CLEAN COAL TECHNOLOGY.
‘‘(a) GENERAL RULE.—For purposes of section 38,
the qualifying advanced clean coal technology production
credit of any taxpayer for any taxable year is equal to—
‘‘(1) the applicable amount of advanced clean
coal technology production credit, multiplied by
‘‘(2) the sum of—
‘‘(A) the kilowatt hours of electricity, plus
‘‘(B) each 3,413 Btu of fuels or chemicals,
produced by the taxpayer during such taxable year
at a qualifying advanced clean coal technology facil-
ity during the 10-year period beginning on the date
the facility was originally placed in service.
‘‘(b) APPLICABLE AMOUNT.—For purposes of this
section, the applicable amount of advanced clean coal tech-
nology production credit with respect to production from
a qualifying advanced clean coal technology facility shall
be determined as follows:
‘‘(1) Where the design coal has a heat content
of more than 9,000 Btu per pound:
‘‘(A) In the case of a facility originally
placed in service before 2009, if—
‘‘The facility design net heat rate, Btu/kWh (HHV) is
equal to:
The applicable amount is:
For 1st 5 years
of such service
For 2d 5 years of
such service
Not more than 8,400 ............................................................
$.0060
$.0038
More than 8,400 but not more than 8,550 ..........................
$.0025
$.0010
135
‘‘The facility design net heat rate, Btu/kWh (HHV) is
equal to:
The applicable amount is:
For 1st 5 years
of such service
For 2d 5 years of
such service
More than 8,550 but not more than 8,750 ..........................
$.0010
$.0010.
‘‘(B) In the case of a facility originally
placed in service after 2008 and before 2013,
if—
‘‘The facility design net heat rate, Btu/kWh (HHV) is
equal to:
The applicable amount is:
For 1st 5 years
of such service
For 2d 5 years of
such service
Not more than 7,770 ............................................................
$.0105
$.0090
More than 7,770 but not more than 8,125 ..........................
$.0085
$.0068
More than 8,125 but not more than 8,350 ..........................
$.0075
$.0055.
‘‘(C) In the case of a facility originally
placed in service after 2012 and before 2017,
if—
‘‘The facility design net heat rate, Btu/kWh (HHV) is
equal to:
The applicable amount is:
For 1st 5 years
of such service
For 2d 5 years of
such service
Not more than 7,380 ............................................................
$.0140
$.01
More than 7,380 but not more than 7,720 ..........................
$.0120
$.0090.
‘‘(2) Where the design coal has a heat content
of not more than 9,000 Btu per pound:
‘‘(A) In the case of a facility originally
placed in service before 2009, if—
‘‘The facility design net heat rate, Btu/kWh (HHV) is
equal to:
The applicable amount is:
For 1st 5 years
of such service
For 2d 5 years of
such service
Not more than 8,500 ............................................................
$.0060
$.0038
More than 8,500 but not more than 8,650 ..........................
$.0025
$.0010
More than 8,650 but not more than 8,750 ..........................
$.0010
$.0010.
136
‘‘(B) In the case of a facility originally
placed in service after 2008 and before 2013,
if—
‘‘The facility design net heat rate, Btu/kWh (HHV) is
equal to:
The applicable amount is:
For 1st 5 years
of such service
For 2d 5 years of
such service
Not more than 8,000 ............................................................
$.0105
$.009
More than 8,000 but not more than 8,250 ..........................
$.0085
$.0068
More than 8,250 but not more than 8,400 ..........................
$.0075
$.0055.
‘‘(C) In the case of a facility originally
placed in service after 2012 and before 2017,
if—
‘‘The facility design net heat rate, Btu/kWh (HHV) is
equal to:
The applicable amount is:
For 1st 5 years
of such service
For 2d 5 years of
such service
Not more than 7,800 ............................................................
$.0140
$.0115
More than 7,800 but not more than 7,950 ..........................
$.0120
$.0090.
‘‘(3) Where the clean coal technology facility is
producing fuel or chemicals:
‘‘(A) In the case of a facility originally
placed in service before 2009, if—
‘‘The facility design net thermal efficiency (HHV) is equal
to:
The applicable amount is:
For 1st 5 years
of such service
For 2d 5 years of
such service
Not less than 40.6 percent ...................................................
$.0060
$.0038
Less than 40.6 but not less than 40 percent .......................
$.0025
$.0010
Less than 40 but not less than 39 percent ..........................
$.0010
$.0010.
‘‘(B) In the case of a facility originally
placed in service after 2008 and before 2013,
if—
‘‘The facility design net thermal efficiency (HHV) is equal
to:
The applicable amount is:
For 1st 5 years
of such service
For 2d 5 years of
such service
Not less than 43.9 percent ...................................................
$.0105
$.009
137
‘‘The facility design net thermal efficiency (HHV) is equal
to:
The applicable amount is:
For 1st 5 years
of such service
For 2d 5 years of
such service
Less than 43.9 but not less than 42 percent .......................
$.0085
$.0068
Less than 42 but not less than 40.9 percent .......................
$.0075
$.0055.
‘‘(C) In the case of a facility originally
placed in service after 2012 and before 2017,
if—
‘‘The facility design net thermal efficiency (HHV) is equal
to:
The applicable amount is:
For 1st 5 years
of such service
For 2d 5 years of
such service
Not less than 44.2 percent ...................................................
$.0140
$.0115
Less than 44.2 but not less than 43.6 percent ....................
$.0120
$.0090.
‘‘(c) INFLATION ADJUSTMENT FACTOR.—For cal-
endar years after 2001, each amount in paragraphs (1),
(2), and (3) shall be adjusted by multiplying such amount
by the inflation adjustment factor for the calendar year
in which the amount is applied. If any amount as in-
creased under the preceding sentence is not a multiple of
0.01 cent, such amount shall be rounded to the nearest
multiple of 0.01 cent.
‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section—
‘‘(1) IN GENERAL.—Any term used in this sec-
tion which is also used in section 48B shall have the
meaning given such term in section 48B.
‘‘(2) APPLICABLE RULES.—The rules of para-
graphs (3), (4), and (5) of section 45 shall apply.
138
‘‘(3) INFLATION
ADJUSTMENT
FACTOR.—The
term ‘inflation adjustment factor’ means, with re-
spect to a calendar year, a fraction the numerator
of which is the GDP implicit price deflator for the
preceding calendar year and the denominator of
which is the GDP implicit price deflator for the cal-
endar year 2001.
‘‘(4) GDP IMPLICIT
PRICE
DEFLATOR.—The
term ‘GDP implicit price deflator’ means the most
recent revision of the implicit price deflator for the
gross domestic product as computed by the Depart-
ment of Commerce before March 15 of the calendar
year.’’.
(b) CREDIT TREATED AS BUSINESS CREDIT.—Sec-
tion 38(b) of the Internal Revenue Code of 1986, as
amended by section 202(b), is amended by striking ‘‘plus’’
at the end of paragraph (15), by striking the period at
the end of paragraph (16) and inserting ‘‘, plus’’, and by
adding at the end the following:
‘‘(17) the qualifying advanced clean coal tech-
nology production credit determined under section
45H(a).’’.
(c) TRANSITIONAL RULE.—Section 39(d) of the In-
ternal Revenue Code of 1986 (relating to transitional
139
rules), as amended by section 301(d), is amended by add-
ing at the end the following:
‘‘(14) NO CARRYBACK OF SECTION 45H CREDIT
BEFORE EFFECTIVE DATE.—No portion of the un-
used business credit for any taxable year which is
attributable to the qualifying advanced clean coal
technology production credit determined under sec-
tion 45H may be carried back to a taxable year end-
ing before the date of enactment of section 45H.’’.
(d) CLERICAL AMENDMENT.—The table of sections
for subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986, as amended by sec-
tion 202(d), is amended by adding at the end the fol-
lowing:
‘‘Sec. 45H. Credit for production from qualifying advanced clean
coal technology.’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to production after the date of en-
actment of this Act.
SEC. 533. RISK POOL FOR QUALIFYING ADVANCED CLEAN
COAL TECHNOLOGY.
(a) ESTABLISHMENT.—The Secretary of the Treas-
ury shall establish a financial risk pool which shall be
available to any United States owner of a qualifying ad-
vanced clean coal technology which has qualified for an
advanced clean coal technology production credit (as de-
140
fined in section 45H of the Internal Revenue Code of
1986, as added by section 302) to offset for the first 3
years of the operation of such technology the costs (not
to exceed 5 percent of the total cost of installation) for
modifications resulting from the technology’s failure to
achieve its design performance.
(b) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated such sums as are necessary
to carry out the purposes of this section.
Subtitle D—Treatment of Certain
Governmental and Other Entities
SEC. 541. CREDITS FOR CERTAIN ORGANIZATIONS AND
GOVERNMENTAL UNITS.
Section 6401(b) of the Internal Revenue Code of
1986 (relating to excessive credits) is amended by adding
at the end the following:
‘‘(3) CREDITS
FOR
CERTAIN
ORGANIZATIONS
AND GOVERNMENTAL UNITS.—
‘‘(A) ALLOWANCE OF CREDITS.—Any cred-
it which would be allowable under section 45G,
45H, 48A, or 48B with respect to a facility of
an entity whether or not such entity is exempt
from tax, shall be treated as a credit allowable
under subpart C of part IV of subchapter A of
141
chapter 1 of subtitle A to such entity if such en-
tity is—
‘‘(i) an organization described in sec-
tion 501(c)(12)(C) and exempt from tax
under section 501(a),
‘‘(ii) an organization described in sec-
tion 1381(a)(2)(C),
‘‘(iii) a public utility (as defined in
section 136(c)(2)(B)),
‘‘(iv) a State, the District of Columbia,
or a possession of the United States, or any
political subdivision thereof, or
‘‘(v) the Tennessee Valley Authority.
‘‘(B) USE OF CREDIT.—
‘‘(i) TRANSFER OF CREDIT.—An entity
described in clause (i), (ii), (iii), or (iv) of
subparagraph (A) may assign, trade, sell, or
otherwise transfer any credit allowable to
such entity under subparagraph (A) to any
other person or entity.
‘‘(ii) USE OF CREDIT AS AN OFFSET.—
Notwithstanding any other provision of law,
in the case of any entity described in clause
(i) or (ii) of subparagraph (A), any credit
allowable to such entity under subpara-
142
graph (A) may be applied by such entity,
without penalty, as a prepayment of any
loan, debt or other obligation the entity has
made, incurred or guaranteed under the
Rural Electrification Act of 1936 (7 U.S.C.
901 et seq.).
‘‘(iii) USE BY TVA.—
‘‘(I) 
IN
GENERAL.—Notwith-
standing any other provision of law, in
the case of an entity described in sub-
paragraph (A)(v), any credit allowable
under subparagraph (A) to such entity
may be applied as a credit against the
payments required to be made in any
fiscal year under section 15d(e) of the
Tennessee Valley Authority Act of 1933
(16 U.S.C. 83ln–4(e)) as an annual re-
turn on the appropriations investment
and an annual repayment sum.
‘‘(II) TREATMENT OF CREDITS.—
The aggregate amount of credits de-
scribed in subparagraph (A) shall be
treated in the same manner and to the
same extent as if such credits were a
payment in cash and shall be applied
143
first against the annual return on the
appropriations investment.
‘‘(III) CREDIT CARRYOVER.—With
respect to any fiscal year, if the aggre-
gate amount of the credits described in
subparagraph (A) exceeds the aggregate
amount of payment obligations de-
scribed in subclause (I), the excess
amount shall remain available for ap-
plication 
as 
credits 
against 
the
amounts of such payment obligations
in succeeding fiscal years in the same
manner as described in this clause.
‘‘(C) CREDIT
NOT
INCOME.—Neither a
transfer under clause (i) nor a use under clause
(ii) of subparagraph (B) of any credit allowable
under subparagraph (A) shall result in income
for purposes of section 501(c)(12).
‘‘(D) TRANSFER
PROCEEDS
TREATED
AS
ARISING FROM ESSENTIAL GOVERNMENT FUNC-
TION.—Any proceeds derived by an entity de-
scribed in clause (iii) or (iv) of subparagraph
(A) from the transfer of any such credit under
subparagraph (B)(I) shall be treated as arising
from an essential government function.
144
‘‘(E) TREATMENT
OF
UNRELATED
PER-
SONS.—For purposes of this title, sales among
and between entities described in clauses (i), (ii),
(iii), and (iv) of subparagraph (A) shall be treat-
ed as sales between unrelated parties.’’.
TITLE VI—FUELS
SEC. 601. TANK DRAINING DURING TRANSITION TO SUM-
MERTIME RFG.
Not later than 60 days after the enactment of the Act,
the Administrator of the Environmental Protection Agency
shall commence a rulemaking to determine whether modi-
fications to the regulations set forth in 40 C.F.R. Section
80.78 and any associated regulations regarding the transi-
tion to high ozone season reformulated gasoline are nec-
essary to ensure that the transition to high ozone season
reformulated gasoline is conducted in a manner that mini-
mizes disruptions to the general availability and afford-
ability of gasoline, and maximizes flexibility with regard
to the draining and inventory management of gasoline stor-
age tanks located at refineries, terminals, wholesale and re-
tail outlets, consistent with the goals of the Clean Air Act.
The Administrator shall propose and take final action in
such rulemaking to ensure that any modifications are effec-
tive and implemented at least 60 days prior to the begin-
ning of the high ozone season for the year 2002.
145
SEC. 602. GASOLINE BLENDSTOCK REQUIREMENTS.
Not later than 60 days after the enactment of this Act,
the Administrator of the Environmental Protection Agency
shall commence a rulemaking to determine whether modi-
fications to product transfer documentation, accounting,
compliance calculation, and other requirements contained
in the regulations of the Administrator set forth in section
80.102 of title 40 of the Code of Federal Regulations relat-
ing to gasoline blendstocks are necessary to facilitate the
movement of gasoline and gasoline feedstocks among dif-
ferent regions throughout the country and to improve the
ability of petroleum refiners and importers to respond to
regional gasoline shortages and prevent unreasonable short-
term price increases. The Administrator shall take into con-
sideration the extent to which such requirements have been,
or will be, rendered unnecessary or inefficient by reason of
subsequent environmental safeguards that were not in effect
at the time the regulations in section 80.102 of title 40 of
the Code of Federal Regulations were promulgated. The Ad-
ministrator shall propose and take final action in such
rulemaking to ensure that any modifications are effective
and implemented at least 60 days prior to the beginning
of the high ozone season for the year 2002.
SEC. 603. BOUTIQUE FUELS.
(a) JOINT STUDY.—The Administrator of the Environ-
mental Protection Agency and the Secretary of Energy shall
146
jointly conduct a study of all Federal, State, and local re-
quirements regarding motor vehicle fuels, including require-
ments relating to reformulated gasoline, volatility (Reid
Vapor Pressure), oxygenated fuel, diesel fuel and other re-
quirements that vary from State to State, region to region,
or locality to locality. The study shall analyze—
(1) the effect of the variety of such requirements
on the price of motor vehicle fuels to the consumer;
(2) the availability and affordability of motor
vehicle fuels in different States and localities;
(3) the effect of Federal, State, and local regula-
tions, including multiple fuel requirements, on domes-
tic refineries and the fuel distribution system;
(4) the effect of such requirements on local, re-
gional, and national air quality requirements and
goals;
(5) the effect of such requirements on vehicle
emissions;
(6) the feasibility of developing national or re-
gional fuel specifications for the contiguous United
States that would—
(A) enhance flexibility in the fuel distribu-
tion infrastructure and improve fuel fungibility;
(B) reduce price volatility and costs to con-
sumers and producers;
147
(C) meet local, regional, and national air
quality requirements and goals; and
(D) provide increased gasoline market li-
quidity; and
(7) the extent to which the Environmental Pro-
tection Agency’s Tier II requirements for conventional
gasoline may achieve in future years the same or
similar air quality results as State reformulated gaso-
line programs and State programs regarding gasoline
volatility (RVP).
(b) REPORT.—By December 31, 2001, the Adminis-
trator of the Environmental Protection Agency and the Sec-
retary of Energy shall submit a report to the Congress con-
taining the results of the study conducted under subsection
(a). Such report shall contain recommendations for legisla-
tive and administrative actions that may be taken to sim-
plify the national distribution system for motor vehicle fuel,
make such system more cost-effective, and reduce the costs
and increase the availability of motor vehicle fuel to the
end user while meeting the requirements of the Clean Air
Act. Such recommendations shall take into account the need
to provide lead time for refinery and fuel distribution sys-
tem modifications necessary to assure adequate fuel supply
for all States.
148
SEC. 604. FUNDING FOR MTBE CONTAMINATION.
Notwithstanding any other provision of law, there is
authorized to be appropriated to the Administrator of the
Environmental Protection Agency from the Leaking Under-
ground Storage Trust Fund not more than $200,000,000
to be used for taking such action, limited to assessment, cor-
rective action, inspection of underground storage tank sys-
tems, and groundwater monitoring in connection with
MTBE contamination, as the Administrator deems nec-
essary to protect human health and the environment from
releases of methyl tertiary butyl ether (MTBE) from under-
ground storage tanks.
TITLE VII—RENEWABLE ENERGY
SEC. 
701. 
ASSESSMENT 
OF 
RENEWABLE 
ENERGY 
RE-
SOURCES.
(a) RESOURCE ASSESSMENT.—Not later than one year
after the date of enactment of this Act, and each year there-
after, the Secretary of Energy shall publish an assessment
by the National Laboratories of all renewable energy re-
sources available within the United States.
(b) CONTENTS
OF REPORT.—The report published
under subsection (a) shall contain each of the following:
(1) A detailed inventory describing the available
amount and characteristics of solar, wind, biomass,
geothermal, hydroelectric and other renewable energy
sources.
149
(2) Such other information as the Secretary of
Energy believes would be useful in developing such re-
newable energy resources, including descriptions of
surrounding terrain, population and load centers,
nearby energy infrastructure, location of energy and
water resources, and available estimates of the costs
needed to develop each resource.
SEC. 702. RENEWABLE ENERGY PRODUCTION INCENTIVE.
Section 1212 of the Energy Policy Act of 1992 (42
U.S.C. 13317) is amended as follows:
(1) In subsection (a) by striking ‘‘and which sat-
isfies’’ and all that follows through ‘‘Secretary shall
establish.’’ and inserting ‘‘. The Secretary shall estab-
lish other procedures necessary for efficient adminis-
tration of the program. The Secretary shall not estab-
lish any criteria or procedures that have the effect of
assigning to proposals a higher or lower priority for
eligibility or allocation of appropriated funds on the
basis of the energy source proposed.’’.
(2) In subsection (b)—
(A) by striking ‘‘a State or any political’’
and all that follows through ‘‘nonprofit electrical
cooperative’’ and inserting ‘‘an electricity-gener-
ating cooperative exempt from taxation under
section 501(c)(12) or section 1381(a)(2)(C) of the
150
Internal Revenue Code of 1986, a public utility
described in section 115 of such Code, a State,
Commonwealth, territory, or possession of the
United States or the District of Columbia, or a
political subdivision thereof, or an Indian tribal
government or subdivision thereof,’’; and
(B) By inserting ‘‘landfill gas,’’ after
‘‘wind, biomass,’’.
(3) In subsection (c) by striking ‘‘during the 10-
fiscal year period beginning with the first full fiscal
year occurring after the enactment of this section’’
and inserting ‘‘before October 1, 2013’’.
(4) In subsection (d) by inserting ‘‘or in which
the Secretary finds that all necessary Federal and
State authorizations have been obtained to begin con-
struction of the facility’’ after ‘‘eligible for such pay-
ments’’.
(5) In subsection (e)(1) by inserting ‘‘landfill
gas,’’ after ‘‘wind, biomass,’’.
(6) In subsection (f) by striking ‘‘the expiration
of’’ and all that follows through ‘‘of this section’’ and
inserting ‘‘September 30, 2023’’.
(7) In subsection (g)—
(A) by striking ‘‘1993, 1994, and 1995’’ and
inserting ‘‘2003 through 2023’’; and
151
(B) by inserting ‘‘Funds may be appro-
priated pursuant to this subsection to remain
available until expended.’’ after ‘‘purposes of this
section.’’.
TITLE VIII—PIPELINE
INTEGRITY
Subtitle A—Pipeline Integrity
SEC. 801. PROGRAM FOR PIPELINE INTEGRITY RESEARCH,
DEVELOPMENT, AND DEMONSTRATION.
(a) IN GENERAL.—The Secretary of Transportation,
in coordination with the Secretary of Energy, and in con-
sultation with the Federal Energy Regulatory Commission,
shall develop and implement an accelerated cooperative pro-
gram of research, development, and demonstration to ensure
the integrity of natural gas and hazardous liquid pipelines.
This program shall include materials inspection techniques,
risk assessment methodology, and information systems sur-
ety.
(b) PURPOSE.—The purpose of the cooperative research
program shall be to promote research, development, and
demonstration to—
(1) ensure long-term safety, reliability, and serv-
ice life for existing pipelines;
152
(2) expand capabilities of internal inspection de-
vices to identify and accurately measure defects and
anomalies;
(3) develop inspection techniques for pipelines
that cannot accommodate the internal inspection de-
vices;
(4) develop innovative techniques to measure the
structural integrity of pipelines to prevent pipeline
failures;
(5) develop improved materials and coatings for
use in pipelines;
(6) improve the capability, reliability, and prac-
ticality of external leak detection devices;
(7) identify underground environments that
might lead to shortened service life;
(8) enhance safety in pipeline siting and land
use;
(9) minimize the environmental impact of pipe-
lines;
(10) demonstrate technologies that improve pipe-
line safety, reliability, and integrity;
(11) provide risk assessment tools for optimizing
risk mitigation strategies; and
(12) provide highly secure information systems
for controlling the operation of pipelines.
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(c) AREAS.—In carrying out this subtitle, the Sec-
retary of Transportation, in coordination with the Sec-
retary of Energy, shall consider research, development, and
demonstration on natural gas, crude oil, and petroleum
product pipelines for—
(1) early crack, defect, and damage detection, in-
cluding real-time damage monitoring;
(2) automated internal pipeline inspection sen-
sor systems;
(3) land use guidance and set back management
along pipeline rights-of-way for communities;
(4) internal corrosion control;
(5) corrosion-resistant coatings;
(6) improved cathodic protection;
(7) inspection techniques where internal inspec-
tion is not feasible, including measurement of struc-
tural integrity;
(8) external leak detection, including portable
real-time video imaging technology, and the advance-
ment of computerized control center leak detection
systems utilizing real-time remote field data input;
(9) longer life, high strength, noncorrosive pipe-
line materials;
(10) assessing the remaining strength of existing
pipes;
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(11) risk and reliability analysis models, to be
used to identify safety improvements that could be re-
alized in the near term resulting from analysis of
data obtained from a pipeline performance tracking
initiative;
(12) identification, monitoring, and prevention
of outside force damage, including satellite surveil-
lance; and
(13) any other areas necessary to ensuring the
public safety and protecting the environment.
(d) RESEARCH, DEVELOPMENT, AND DEMONSTRATION
PROGRAM PLAN.—Within 240 days after the date of enact-
ment of this Act, the Secretary of Transportation, in coordi-
nation with the Secretary of Energy, the Federal Energy
Regulatory Commission, and the Pipeline Integrity Tech-
nical Advisory Committee, shall prepare and submit to the
Congress a 5-year program plan to guide activities under
this subtitle. In preparing the program plan, the Secretary
shall consult with appropriate representatives of the nat-
ural gas, crude oil, and petroleum product pipeline indus-
tries to select and prioritize appropriate project proposals.
The Secretary may also seek the advice of utilities, manu-
facturers, institutions of higher learning, Federal agencies,
the pipeline research institutions, national laboratories,
State pipeline safety officials, environmental organizations,
155
pipeline safety advocates, and professional and technical so-
cieties.
(e) IMPLEMENTATION.—The Secretary of Transpor-
tation shall have primary responsibility for ensuring the
five-year plan provided for in subsection (d) is implemented
as intended by this subtitle.
(f) REPORTS TO CONGRESS.—The Secretary of Trans-
portation shall report to the Committee on Energy and
Commerce and the Committee on Transportation and In-
frastructure of the House of Representatives, and to the
Committee on Energy and Natural Resources and the Com-
mittee on Commerce, Science, and Transportation of the
Senate, annually as to the status and results to date of the
implementation of the program plan. The report shall in-
clude the activities of the Departments of Transportation
and Energy, the national laboratories, universities, and
any other research organizations, including industry re-
search organizations.
SEC. 802. PIPELINE INTEGRITY TECHNICAL ADVISORY COM-
MITTEE.
(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall enter into appropriate arrangements with the
National Academy of Sciences to establish and manage the
Pipeline Integrity Technical Advisory Committee for the
purpose of advising the Secretary of Transportation and
156
the Secretary of Energy on the development and implemen-
tation of the five-year research, development, and dem-
onstration program plan under section 801(d). The Advi-
sory Committee shall have an ongoing role in evaluating
the progress and results of the research, development, and
demonstration carried out under this subtitle.
(b) MEMBERSHIP.—The National Academy of Sciences
shall appoint the members of the Pipeline Integrity Tech-
nical Advisory Committee after consultation with the Sec-
retary of Transportation and the Secretary of Energy. The
Advisory Committee shall also have 1 member from the Fed-
eral Energy Regulatory Commission. Members appointed to
the Advisory Committee should have the necessary quali-
fications to provide technical contributions to the purposes
of the Advisory Committee.
SEC. 803. AUTHORIZATION OF APPROPRIATIONS.
(a) AUTHORIZATION FROM USER FEES.—There are
authorized to be appropriated to the Secretary of Transpor-
tation for carrying out this subtitle $3,000,000, which is
to be derived from user fees under section 60125 of title 49,
United States Code, for each of the fiscal years 2002 through
2006.
(b) DETECTION, PREVENTION, AND MITIGATION.—
There are authorized to be appropriated to the Secretary
of Transportation from the Oil Spill Liability Trust Fund
157
(26 U.S.C. 9509), $3,000,000 to carry out programs for de-
tection, prevention, and mitigation of oil spills authorized
in this subtitle for each of the fiscal years 2002 through
2006.
(c) GENERAL AUTHORIZATION.—There are authorized
to be appropriated to the Secretary of Energy for carrying
out this subtitle such sums as may be necessary for each
of the fiscal years 2002 through 2006.
Subtitle B—Other Pipeline
Provisions
SEC. 811. 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
traverses—
(1) the submerged lands (as defined by the Sub-
merged 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.
SEC. 812. HISTORIC PIPELINES.
Section 7 of the Natural Gas Act (15 U.S.C. 717f) is
amended by adding at the end the following new subsection:
158
‘‘(i) Notwithstanding the National Historic Preserva-
tion Act, a transportation facility shall not be eligible for
inclusion on the National Register of Historic Places until
the Commission has permitted the abandonment of the
transportation facility pursuant to subsection (b) of this
section.’’.
TITLE IX—MISCELLANEOUS
PROVISIONS
SEC. 901. WASTE REDUCTION AND USE OF ALTERNATIVES.
(a) GRANT AUTHORITY.—The Secretary of Energy is
authorized to make a single grant to a qualified institution
to examine and develop the feasibility of burning post-con-
sumer carpet in cement kilns as an alternative energy
source. 
The 
purposes 
of 
the 
grant 
shall 
include
determining—
(1) how post-consumer carpet can be burned
without disrupting kiln operations;
(2) the extent to which overall kiln emissions
may be reduced; and
(3) how this process provides benefits to both ce-
ment kiln operations and carpet suppliers.
(b) QUALIFIED INSTITUTION.—For the purposes of
subsection (a), a qualified institution is a research-intensive
institution of higher learning with demonstrated expertise
159
in the fields of fiber recycling and logistical modeling of
carpet waste collection and preparation.
(c) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary of Energy
for carrying out this section $275,000 for fiscal year 2002,
to remain available until expended.
SEC. 902. ANNUAL REPORT ON UNITED STATES ENERGY
INDEPENDENCE.
(a) REPORT.—The Secretary of Energy, in consulta-
tion with the heads of other relevant Federal agencies, shall
include in each report under section 801(c) of the Depart-
ment of Energy Organization Act a section which evaluates
the progress the United States has made toward obtaining
the goal of not more than 50 percent dependence on foreign
oil sources by 2010.
(b) ALTERNATIVES.—The information required under
this section to be included in the reports under section
801(c) of the Department of Energy Organization Act shall
include a specification of what legislative or administrative
actions must be implemented to meet this goal and set forth
a range of options and alternatives with a cost/benefit anal-
ysis for each option or alternative together with an estimate
of the contribution each option or alternative could make
to reduce foreign oil imports. The Secretary shall solicit in-
formation from the public and request information from the
160
Energy Information Agency and other agencies to develop
the information required under this section. The informa-
tion shall indicate, in detail, options and alternatives to—
(1) increase the use of renewable domestic energy
sources, including conventional and nonconventional
sources;
(2) conserve energy resources, including improv-
ing efficiencies and decreasing consumption; and
(3) increase domestic production and use of oil,
natural gas, nuclear, and coal, including any actions
necessary to provide access to, and transportation of,
these energy resources.
SEC. 903. STUDY OF AIRCRAFT EMISSIONS.
The Administrator of the Environmental Protection
Agency, in consultation with the Secretary of Transpor-
tation shall commence a study within 60 days after the en-
actment of this Act to investigate the impact of aircraft
emissions at all airports located within areas that are con-
sidered to be in nonattainment for the national ambient
air quality standard for ozone. As part of such study, the
Administrator should investigate all significant factors
which may serve to increase air emission levels from air-
ports and use the most recent data available. Within 180
days of the enactment of this Act, the Administrator shall
submit a report to the Committee on Energy and Commerce
161
of the United States House of Representatives and to the
Committee on Energy and Natural Resources of the United
States Senate containing the results of the study and rec-
ommendations with respect to a plan to maintain com-
prehensive data on aircraft emissions and methods by
which such emissions may be reduced in order to assist in
the attainment of the national ambient air quality stand-
ard for ozone.
Union Calendar No. 97
107TH CONGRESS
1ST SESSION
H. R. 2587
[Report No. 107–162, Part I]
A BILL
To enhance energy conservation, provide for secu-
rity and diversity in the energy supply for the
American people, and for other purposes.
JULY 25, 2001
Reported from the Committee on Energy and Commerce
with an amendment
JULY 25, 2001
Referral to the Committees on Ways and Means, Science,
Transportation and Infrastructure, the Budget, and
Education and the Workforce extended for a period
ending not later than July 25, 2001
JULY 25, 2001
The Committees on Ways and Means, Science, Transpor-
tation and Infrastructure, the Budget, and Education
and the Workforce discharged; committed to the Com-
mittee of the Whole House on the State of the Union
and ordered to be printed