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SEC. 965. TRANSPORTATION FUELS.
The Secretary shall conduct a program of transpor-
tation fuels research, development, demonstration, and
commercial application, whose objective shall be to in-
crease the price elasticity of oil supply and demand by fo-
cusing research on—
(1) reducing the cost of producing transpor-
tation fuels from coal and natural gas; and
(2) indirect liquefaction of coal and biomass.
SEC. 966. FUEL CELLS.
(a) PROGRAM.—The Secretary shall conduct a pro-
gram of research, development, demonstration, and com-
mercial application of fuel cells for low-cost, high-effi-
ciency, fuel-flexible, modular power systems.
(b) DEMONSTRATION.—The program under this sec-
tion shall include demonstration of fuel cell proton ex-
change membrane technology for commercial, residential,
and transportation applications, and distributed genera-
tion systems, utilizing improved manufacturing production
and processes.
SEC. 967. CARBON DIOXIDE CAPTURE RESEARCH AND DE-
VELOPMENT.
(a) PROGRAM.—The Secretary of Energy shall sup-
port a 10-year program of research and development
aimed at developing carbon dioxide capture technologies
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for pulverized coal combustion units. The program shall
focus on—
(1) developing add-on carbon dioxide capture
technologies, such as adsorption and absorption
techniques and chemical processes, to remove carbon
dioxide from flue gas, producing concentrated
streams of carbon dioxide potentially amenable to se-
questration;
(2) combustion technologies that would directly
produce concentrated streams of carbon dioxide po-
tentially amenable to sequestration; and
(3) increasing the efficiency of the overall com-
bustion system in order to reduce the amount of car-
bon dioxide emissions released from the system per
megawatt generated.
(b) CARBON SEQUESTRATION.—In conjunction with
the program under subsection (a), the Secretary shall con-
tinue pursuing a robust carbon sequestration program
with the private sector, through regional carbon sequestra-
tion partnerships.
SEC. 968. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—The following sums are author-
ized to be appropriated to the Secretary for the purposes
of carrying out this chapter:
(1) For fiscal year 2006, $583,000,000.
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(2) For fiscal year 2007, $611,000,000.
(3) For fiscal year 2008, $626,000,000.
(4) For fiscal year 2009, $641,000,000.
(5) For fiscal year 2010, $657,000,000.
(b) ALLOCATION.—From amounts authorized under
subsection (a), there are authorized to be appropriated for
carrying out the program under section 967—
(1) $20,000,000 for fiscal year 2006;
(2) $25,000,000 for fiscal year 2007;
(3) $30,000,000 for fiscal year 2008;
(4) $35,000,000 for fiscal year 2009; and
(5) $40,000,000 for fiscal year 2010.
SEC. 
968A. 
WESTERN 
MICHIGAN 
DEMONSTRATION
PROJECT.
The Administrator of the Environmental Protection
Agency, in consultation with the State of Michigan and
affected local officials, shall conduct a demonstration
project to address the effect of transported ozone and
ozone precursors in Southwestern Michigan. The dem-
onstration program shall address projected nonattainment
areas in Southwestern Michigan that include counties with
design values for ozone of less than .095 based on years
2000 to 2002 or the most current 3-year period of air
quality data. The Administrator shall assess any difficul-
ties such areas may experience in meeting the 8 hour na-