thorized by this section have been expended in a manner 
consistent with the purposes of this section. The auditor 
shall transmit a report annually to the Secretary, who 
shall transmit the report to the Congress, along with a 
plan to remedy any deficiencies cited in the report. 
(g) SUNSET.—The Next Generation Lighting Initia-
tive shall terminate no later than September 30, 2013. 
(h) DEFINITIONS.—As used in this section: 
(1) ADVANCED
SOLID-STATE
LIGHTING.—The 
term ‘‘advanced solid-state lighting’’ means a 
semiconducting device package and delivery system 
that produces white light using externally applied 
voltage. 
(2) 
FUNDAMENTAL
RESEARCH.—The 
term 
‘‘fundamental research’’ includes basic research on 
both solid-state materials and manufacturing proc-
esses. 
(3) 
INORGANIC
WHITE
LIGHT
EMITTING 
DIODE.—The term ‘‘inorganic white light emitting 
diode’’ means an inorganic semiconducting package 
that produces white light using externally applied 
voltage. 
(4) ORGANIC WHITE LIGHT EMITTING DIODE.—
The term ‘‘organic white light emitting diode’’
means an organic semiconducting compound that 
produces white light using externally applied voltage. 
SEC. 224. NATIONAL BUILDING PERFORMANCE INITIATIVE. 
(a) INTERAGENCY GROUP.—Not later than 3 months 
after the date of enactment of this Act, the Director of 
the Office of Science and Technology Policy shall establish 
an interagency group to develop, in coordination with the 
advisory committee established under subsection (e), a 
National Building Performance Initiative (in this section 
referred to as the ‘‘Initiative’’). The interagency group 
shall be cochaired by appropriate officials of the Depart-
ment and the Department of Commerce, who shall jointly 
arrange for the provision of necessary administrative sup-
port to the group. 
(b) INTEGRATION OF EFFORTS.—The Initiative shall 
integrate Federal, State, and voluntary private sector ef-
forts to reduce the costs of construction, operation, main-
tenance, and renovation of commercial, industrial, institu-
tional, and residential buildings. 
(c) PLAN.—Not later than 1 year after the date of 
enactment of this Act, the interagency group shall submit 
to Congress a plan for carrying out the appropriate Fed-
eral role in the Initiative. The plan shall include—
(1) research, development, demonstration, and 
commercial application of systems and materials for
new construction and retrofit relating to the building 
envelope and building system components; and 
(2) the collection, analysis, and dissemination of 
research results and other pertinent information on 
enhancing building performance to industry, govern-
ment entities, and the public. 
(d) DEPARTMENT OF ENERGY ROLE.—Within the 
Federal portion of the Initiative, the Department shall be 
the lead agency for all aspects of building performance re-
lated to use and conservation of energy. 
(e) ADVISORY COMMITTEE.—
(1) ESTABLISHMENT.—The Director of the Of-
fice of Science and Technology Policy shall establish 
an advisory committee to—
(A) analyze and provide recommendations 
on potential private sector roles and participa-
tion in the Initiative; and 
(B) review and provide recommendations 
on the plan described in subsection (c). 
(2) MEMBERSHIP.—Membership of the advisory 
committee shall include representatives with a broad 
range of appropriate expertise, including expertise 
in—
(A) building research and technology;
(B) architecture, engineering, and building 
materials and systems; and 
(C) the residential, commercial, and indus-
trial sectors of the construction industry. 
(f) CONSTRUCTION.—Nothing in this section provides 
any Federal agency with new authority to regulate build-
ing performance. 
Subtitle D—Additional Research 
Programs 
PART 1—FUSION 
SEC. 231. PLAN FOR FUSION EXPERIMENT. 
(a) IN GENERAL.—
(1) PRIORITY
FOR
INTERNATIONAL
BURNING 
PLASMA
PROJECT.—The Secretary of Energy (in 
this part referred to as ‘‘the Secretary’’) is author-
ized to undertake full scientific and technological co-
operation in the international burning plasma 
project known as ITER. 
(2) ALTERNATIVE
PROJECT.—If at any time 
during the negotiations on the ITER project, the 
Secretary determines that construction and oper-
ation of the ITER project is unlikely or infeasible, 
the Secretary shall send to Congress, as part of the 
budget request for the following year, a plan for im-
plementing an alternative plan, such as the domestic
burning plasma experiment known as FIRE, includ-
ing costs and schedules for such a plan. The Sec-
retary shall refine such plan in full consultation with 
the Fusion Energy Sciences Advisory Committee 
and shall also transmit such plan to the National 
Research Council for review. 
(b) UNITED STATES POLICY WITH RESPECT TO FU-
SION ENERGY SCIENCE.—
(1) DECLARATION OF POLICY.—It shall be the 
policy of the United States to develop the scientific, 
engineering, and commercial infrastructure nec-
essary to ensure that the United States is competi-
tive with other nations in providing fusion energy for 
its own needs and the needs of other nations, includ-
ing demonstrating electric hydrogen power produc-
tion for national power grid utilizing fusion energy 
by the earliest date possible. 
(2) FUSION ENERGY PLAN.—
(A) REQUIREMENT.—Within 6 months of 
the date of enactment of this Act, the Secretary 
shall transmit to Congress a plan for carrying 
out the policy set forth in paragraph (1), in-
cluding cost estimates, proposed budgets, poten-
tial international partners, and specific pro-
grams for implementing such policy.
(B) REQUIREMENTS OF PLAN.—Such plan 
shall also ensure that—
(i) existing fusion research facilities 
are more fully utilized; 
(ii) fusion science, technology, theory, 
advanced computation, modeling, and sim-
ulation are strengthened; 
(iii) new magnetic and inertial fusion 
research facilities are selected based on sci-
entific innovation, cost effectiveness, and 
their potential to advance the goal of prac-
tical fusion energy at the earliest date pos-
sible; 
(iv) such facilities that are selected 
are funded at a cost-effective rate; 
(v) communication of scientific results 
and methods between the fusion energy 
science community and the broader sci-
entific and technology communities is im-
proved; 
(vi) inertial confinement fusion facili-
ties are utilized to the extent practicable 
for the purpose of inertial fusion energy re-
search and development; and
(vii) attractive alternative inertial and 
magnetic fusion energy approaches are 
more fully explored. 
(C) REPORT ON FUSION MATERIALS AND 
TECHNOLOGY PROJECT.—In addition, the plan 
required by this section shall also address the 
status of, and to the degree possible, the costs 
and schedules for—
(i) the design and implementation of 
international or national facilities for the 
testing of fusion materials; and 
(ii) the design and implementation of 
international or national facilities for the 
testing and development of key fusion tech-
nologies. 
SEC. 232. DEFINITIONS. 
As used in this part, the following definitions apply: 
(1) The term ‘‘ITER’’ refers to the inter-
national fusion research project whose design is 
complete and whose location and financing is cur-
rently being negotiated between Japan, Europe, the 
Russian Federation, Canada, China, and the United 
States. 
(2) The term ‘‘FIRE’’ refers to the Fusion Ig-
nition Research Experiment, the fusion research ex-
periment for which design work has been supported 
by the Department of Energy as a possible alter-
native burning plasma experiment in the event that 
the ITER project fails to move forward. 
PART 
2—ULTRA-DEEPWATER 
AND 
EXTENDED 
REACH DRILLING AND CARBON SEQUESTRA-
TION TECHNOLOGIES 
SEC. 241. PROGRAM AUTHORITY. 
(a) IN GENERAL.—The Secretary shall carry out a 
program under this part of research, development, dem-
onstration, and commercial application of technologies for 
ultra-deepwater and extended reach drilling and carbon 
sequestration. 
(b) PROGRAM.—The program under this part shall 
address the following areas, including improving safety 
and minimizing environmental impacts of activities within 
each area: 
(1) Ultra-deepwater technology. 
(2) Ultra-deepwater architecture. 
(3) Extended reach drilling. 
(4) Sequestration of carbon. 
(c) LIMITATION ON LOCATION OF FIELD ACTIVI-
TIES.—Field activities under the program under this part 
shall be carried out only—
(1) in—
(A) areas in the territorial waters of the 
United States not under any Outer Continental 
Shelf moratorium as of September 30, 2002; 
(B) areas onshore in the United States on 
public land administered by the Secretary of the 
Interior available for oil and gas leasing, where 
consistent with applicable law and land use 
plans; and 
(C) areas onshore in the United States on 
State or private land, subject to applicable law; 
and 
(2) with the approval of the appropriate Fed-
eral or State land management agency or private 
land owner. 
(d) RESEARCH AT NATIONAL ENERGY TECHNOLOGY 
LABORATORY.—The Secretary, through the National En-
ergy Technology Laboratory, shall carry out research com-
plementary to research under subsection (b). 
(e) CONSULTATION WITH SECRETARY OF THE INTE-
RIOR.—In carrying out this part, the Secretary shall con-
sult regularly with the Secretary of the Interior.
SEC. 242. ULTRA-DEEPWATER AND EXTENDED REACH 
DRILLING 
AND 
CARBON 
SEQUESTRATION 
AND UNCONVENTIONAL TECHNOLOGIES PRO-
GRAM. 
(a) IN GENERAL.—The Secretary shall carry out the 
activities under section 241(b), to—
(1) maximize the value of the ultra-deepwater 
natural gas and other petroleum resources of the 
United States by increasing the supply of such re-
sources and by reducing the cost and increasing the 
efficiency of exploration for and production of such 
resources, while improving safety and minimizing en-
vironmental impacts; 
(2) maximize the value of existing natural gas 
and petroleum production on existing lease sites by 
utilizing long range extended reach drilling tech-
nology; 
(3) maximize the value of the onshore uncon-
ventional natural gas resources of the United States 
by increasing supply of such resources and improv-
ing efficiencies; and 
(4) develop commercial carbon sequestration 
and carbon recapture methods with the goal of—
(A) sequestering 20 percent of the total 
quantity of direct greenhouse gas emissions 
from stationary sources in the United States
per year, expressed in units of carbon dioxide 
equivalence, by 2010; 
(B) sequestering 40 percent of the total 
quantity of direct greenhouse gas emissions 
from stationary sources in the United States 
per year, expressed in units of carbon dioxide 
equivalence, by 2015; and 
(C) sequestering 60 percent of the total 
quantity of direct greenhouse gas emissions 
from stationary sources in the United States 
per year, expressed in units of carbon dioxide 
equivalence, by 2020. 
(b) ROLE OF THE SECRETARY.—The Secretary shall 
have ultimate responsibility for, and oversight of, all as-
pects of the program under this section. 
(c) ROLE OF THE PROGRAM CONSORTIUM.—
(1) IN GENERAL.—The Secretary shall contract 
with a consortium to—
(A) manage awards pursuant to subsection 
(f)(4); 
(B) make recommendations to the Sec-
retary for project solicitations; 
(C) disburse funds awarded under sub-
section (f) as directed by the Secretary in ac-
cordance with the annual plan under subsection 
(e); and 
(D) carry out other activities assigned to 
the program consortium by this section. 
(2) LIMITATION.—The Secretary may not as-
sign any activities to the program consortium except 
as specifically authorized under this section. 
(3) CONFLICT OF INTEREST.—
(A) The Secretary shall establish proce-
dures—
(i) to ensure that each board member, 
officer, or employee of the program consor-
tium who is in a decisionmaking capacity 
under subsection (f)(3) or (4) shall disclose 
to the Secretary any financial interests in, 
or financial relationships with, applicants 
for or recipients of awards under this sec-
tion, including those of his or her spouse 
or minor child, unless such relationships or 
interests would be considered to be remote 
or inconsequential; and 
(ii) to require any board member, offi-
cer, or employee with a financial relation-
ship or interest disclosed under clause (i) 
to recuse himself or herself from any re-
view under subsection (f)(3) or oversight 
under subsection (f)(4) with respect to 
such applicant or recipient. 
(B) The Secretary may disqualify an appli-
cation or revoke an award under this section if 
a board member, officer, or employee has failed 
to comply with procedures required under sub-
paragraph (A)(ii). 
(d) SELECTION OF THE PROGRAM CONSORTIUM.—
(1) IN GENERAL.—The Secretary shall select 
the program consortium through an open, competi-
tive process. 
(2) MEMBERS.—The program consortium may 
include corporations, institutions of higher edu-
cation, National Laboratories, or other research in-
stitutions. After submitting a proposal under para-
graph (4), the program consortium may not add 
members without the consent of the Secretary. 
(3) TAX
STATUS.—The program consortium 
shall be an entity that is exempt from tax under sec-
tion 501(c)(3) of the Internal Revenue Code of 
1986. 
(4) SCHEDULE.—Not later than 90 days after 
the date of enactment of this Act, the Secretary 
shall solicit proposals for the creation of the pro-
gram consortium, which must be submitted not less 
than 180 days after the date of enactment of this 
Act. The Secretary shall select the program consor-
tium not later than 240 days after such date of en-
actment. 
(5) APPLICATION.—Applicants shall submit a 
proposal including such information as the Secretary 
may require. At a minimum, each proposal shall—
(A) list all members of the consortium; 
(B) fully describe the structure of the con-
sortium, including any provisions relating to in-
tellectual property; and 
(C) describe how the applicant would carry 
out the activities of the program consortium 
under this section. 
(6) ELIGIBILITY.—To be eligible to be selected 
as the program consortium, an applicant must be an 
entity whose members collectively have demonstrated 
capabilities in planning and managing research, de-
velopment, demonstration, and commercial applica-
tion programs in natural gas or other petroleum ex-
ploration or production. 
(7) CRITERION.—The Secretary may consider 
the amount of the fee an applicant proposes to re-
ceive under subsection (g) in selecting a consortium 
under this section. 
(e) ANNUAL PLAN.—
(1) IN GENERAL.—The program under this sec-
tion shall be carried out pursuant to an annual plan 
prepared by the Secretary in accordance with para-
graph (2). 
(2) DEVELOPMENT.—(A) Before drafting an 
annual plan under this subsection, the Secretary 
shall solicit specific written recommendations from 
the program consortium for each element to be ad-
dressed in the plan, including those described in 
paragraph (4). The Secretary may request that the 
program consortium submit its recommendations in 
the form of a draft annual plan. 
(B) The Secretary shall consult regularly with 
the program consortium throughout the preparation 
of the annual plan. The Secretary may also solicit 
comments from any other experts. 
(3) PUBLICATION.—The Secretary shall trans-
mit to the Congress and publish in the Federal Reg-
ister the annual plan, along with any written com-
ments received under paragraph (2). The annual 
plan shall be transmitted and published not later 
than 60 days after the date of enactment of an Act
making appropriations for a fiscal year for the pro-
gram under this section. 
(4) CONTENTS.—The annual plan shall describe 
the ongoing and prospective activities of the pro-
gram under this section and shall include—
(A) a list of any solicitations for awards 
that the Secretary plans to issue to carry out 
research, development, demonstration, or com-
mercial application activities, including the top-
ics for such work, who would be eligible to 
apply, selection criteria, and the duration of 
awards; and 
(B) a description of the activities expected 
of the program consortium to carry out sub-
section (f)(4). 
(f) AWARDS.—
(1) IN GENERAL.—The Secretary shall make 
awards to carry out research, development, dem-
onstration, and commercial application activities 
under the program under this section. The program 
consortium shall not be eligible to receive such 
awards, but members of the program consortium 
may receive such awards. 
(2) PROPOSALS.—The Secretary shall solicit 
proposals for awards under this subsection in such
manner and at such time as the Secretary may pre-
scribe, in consultation with the program consortium. 
(3) REVIEW.—The Secretary shall make awards 
under this subsection through a competitive process, 
which shall include a review by individuals selected 
by the Secretary. Such individuals shall include, for 
each application, Federal officials, the program con-
sortium, and non-Federal experts who are not board 
members, officers, or employees of the program con-
sortium or of a member of the program consortium. 
(4) OVERSIGHT.—(A) The program consortium 
shall oversee the implementation of awards under 
this subsection, consistent with the annual plan 
under subsection (e), including disbursing funds and 
monitoring activities carried out under such awards 
for compliance with the terms and conditions of the 
awards. 
(B) Nothing in subparagraph (A) shall limit the 
authority or responsibility of the Secretary to over-
see awards, or limit the authority of the Secretary 
to review or revoke awards. 
(C) The Secretary shall provide to the program 
consortium the information necessary for the pro-
gram consortium to carry out its responsibilities 
under this paragraph.
(g) FEE.—
(1) IN GENERAL.—To compensate the program 
consortium for carrying out its activities under this 
section, the Secretary shall provide to the program 
consortium a fee in an amount not to exceed 7.5 
percent of the amounts awarded under subsection (f) 
for each fiscal year. 
(2) ADVANCE.—The Secretary shall advance 
funds to the program consortium upon selection of 
the consortium, which shall be deducted from 
amounts to be provided under paragraph (1). 
(h) AUDIT.—The Secretary shall retain an inde-
pendent, commercial auditor to determine the extent to 
which funds provided to the program consortium, and 
funds provided under awards made under subsection (f), 
have been expended in a manner consistent with the pur-
poses and requirements of this part. The auditor shall 
transmit a report annually to the Secretary, who shall 
transmit the report to Congress, along with a plan to rem-
edy any deficiencies cited in the report. 
SEC. 243. SUNSET. 
The authority provided by this part shall terminate 
on September 30, 2010. 
SEC. 244. DEFINITIONS. 
In this part:
(1) CARBON SEQUESTRATION.—The term ‘‘car-
bon sequestration’’ means the capture and secure 
storage of carbon dioxide emitted from the combus-
tion of fossil fuels or other organic matter. 
(2) EXTENDED
REACH
DRILLING.—The term 
‘‘extended reach drilling’’ means technology designed 
to achieve a range up to 50,000 feet, so that more 
energy resources can be realized with fewer drilling 
facilities. 
(3) PROGRAM CONSORTIUM.—The term ‘‘pro-
gram consortium’’ means the consortium selected 
under section 242(d). 
(4) REMOTE OR INCONSEQUENTIAL.—The term 
‘‘remote or inconsequential’’ has the meaning given 
that term in regulations issued by the Office of Gov-
ernment Ethics under section 208(b)(2) of title 18, 
United States Code. 
(5) ULTRA-DEEPWATER.—The term ‘‘ultra-
deepwater’’ means a water depth that is equal to or 
greater than 1,500 meters. 
(6) ULTRA-DEEPWATER
ARCHITECTURE.—The 
term ‘‘ultra-deepwater architecture’’ means the inte-
gration of technologies for the exploration for, or 
production of, natural gas or other petroleum re-
sources located at ultra-deepwater depths.
(7) ULTRA-DEEPWATER
TECHNOLOGY.—The 
term ‘‘ultra-deepwater technology’’ means a discrete 
technology that is specially suited to address one or 
more challenges associated with the exploration for, 
or production of, natural gas or other petroleum re-
sources located at ultra-deepwater depths. 
(8) UNCONVENTIONAL
NATURAL
GAS
AND 
OTHER PETROLEUM RESOURCE.—The term ‘‘uncon-
ventional natural gas and other petroleum resource’’ 
means natural gas and other petroleum resource lo-
cated onshore in an economically inaccessible geo-
logical formation. 
TITLE III—TAX INCENTIVES FOR 
NEW TECHNOLOGIES 
SEC. 301. REFERENCES. 
Except as otherwise expressly provided, whenever in 
this title an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a 
section or other provision of the Internal Revenue Code 
of 1986. 
SEC. 302. ADMINISTRATION OF TITLE. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the Secretary of the Treasury shall allocate 
the tax incentives provided in subtitles A and B among
taxpayers in accordance with regulations promulgated by 
the Secretary. 
(b) LIMITATION ON TOTAL ALLOCATED.—The total 
amount of incentives allocated under subsection (a) shall 
not exceed—
(1) $14,000,000,000 in the case of the tax in-
centives provided in subtitle A for the 10-year period 
beginning with taxable years beginning after the 
date of the enactment of this Act, and 
(2) $22,000,000,000 in the case of the tax in-
centives provided in subtitle B for the 10-year period 
beginning with taxable years beginning after the 
date of the enactment of this Act. 
Subtitle A—Near Term Tax 
Incentives 
SEC. 311. EXTENSION THROUGH 2015 FOR PLACING QUALI-
FIED FACILITIES IN SERVICE FOR PRO-
DUCING RENEWABLE ELECTRIC ENERGY. 
(a) IN GENERAL.—Subsection (d) of section 45 is 
amended by striking ‘‘January 1, 2006’’ each place it ap-
pears and inserting ‘‘January 1, 2015’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property originally placed in 
service on or after January 1, 2006.
SEC. 312. EXPANSION AND MODIFICATION OF RENEWABLE 
RESOURCE CREDIT. 
(a) ADDITIONAL QUALIFIED ENERGY RESOURCES.—
(1) IN GENERAL.—Section 45(c)(1) is amended 
by striking ‘‘and’’ at the end of subparagraph (F), 
by striking the period at the end of subparagraph 
(G), and by adding at the end the following new sub-
paragraphs: 
‘‘(H) incremental hydropower, 
‘‘(I) incremental geothermal, and 
‘‘(J) ocean (tidal, wave, current, or ther-
mal).’’. 
(2) DEFINITION OF RESOURCES.—Section 45(c) 
is amended by adding at the end the following new 
paragraphs: 
‘‘(8) INCREMENTAL HYDROPOWER.—The term 
‘incremental hydropower’ means additional gener-
ating capacity achieved at a qualified facility before 
January 1, 2015, from increased efficiency . 
‘‘(9) INCREMENTAL GEOTHERMAL.—The term 
‘incremental geothermal’ means additional gener-
ating capacity achieved at a qualified facility before 
January 1, 2015, from—
‘‘(A) increased efficiency, or 
‘‘(B) additions of new capacity.’’.
(3) DEFINITION OF FACILITIES.—Section 45(d) 
is amended by adding at the end the following new 
paragraphs: 
‘‘(9) INCREMENTAL HYDOPOWER FACILITIES.—
In the case of a facility producing electricity from 
incremental hydropower, the term ‘qualified facility’ 
means any facility which is—
‘‘(A) owned by the taxpayer, 
‘‘(B) originally placed in service before the 
date of the enactment of this paragraph, and 
‘‘(C) licensed by the Federal Energy Regu-
latory Commission. 
‘‘(10) INCREMENTAL
GEOTHERMAL
FACILI-
TIES.—In the case of a facility producing electricity 
from incremental geothermal, the term ‘qualified fa-
cility’ means any facility owned by the taxpayer 
which is originally placed in service before the date 
of the enactment of this paragraph. 
‘‘(11) OCEAN FACILITIES.—In the case of a fa-
cility producing electricity from the ocean, the term 
‘qualified facility’ means any facility owned by the 
taxpayer which is originally placed in service after 
the date of the enactment of this paragraph and be-
fore January 1, 2015.’’.