426
4 of the Government Performance Results Act of 
1993, the Secretary shall transmit to the Congress, 
along with the President’s annual budget request for 
fiscal year 2007, a report containing outcome meas-
ures with explicitly stated cost and performance 
baselines. The measures shall specify renewable en-
ergy performance goals, with quantifiable 5-year cost 
and energy savings target levels, for wind power, 
photovoltaics, solar thermal systems (including con-
centrating and solar hot water), geothermal energy, 
biomass-based systems, biofuels, and hydropower, 
and any other such goals the Secretary considers ap-
propriate. 
(2) SUBSEQUENT
TRANSMITTALS.—The Sec-
retary shall transmit to the Congress, along with the 
President’s annual budget request for each fiscal 
year after 2007, a report containing—
(A) a description, including quantitative 
analysis, of progress in achieving performance 
goals transmitted under paragraph (1), as com-
pared to the baselines transmitted under para-
graph (1); and 
(B) any amendments to such goals. 
(c) PUBLIC INPUT.—The Secretary shall consider ad-
vice from industry, universities, and other interested par-
427
ties through seeking comments in the Federal Register 
and other means before transmitting each report under 
subsection (b). 
SEC. 938. SOLAR. 
(a) PROGRAM.—The Secretary shall conduct a pro-
gram of research, development, demonstration, and com-
mercial application for solar energy, including—
(1) photovoltaics; 
(2) solar hot water and solar space heating; and 
(3) concentrating solar power. 
(b) BUILDING
INTEGRATION.—For photovoltaics, 
solar hot water, and space heating, the Secretary shall 
conduct research, development, demonstration, and com-
mercial application to support the development of products 
that can be easily integrated into new and existing build-
ings. 
(c) MANUFACTURE.—The Secretary shall conduct re-
search, development, demonstration, and commercial ap-
plication of manufacturing techniques that can produce 
low-cost, high-quality solar systems. 
SEC. 939. BIOENERGY PROGRAMS. 
(a) PROGRAM.—The Secretary shall conduct a pro-
gram of research, development, demonstration, and com-
mercial application for cellulosic biomass, including—
(1) biomass conversion to heat and electricity;
428
(2) biomass conversion to liquid fuels; 
(3) biobased products; 
(4) integrated biorefineries that may produce 
heat, electricity, liquid fuels, and biobased products; 
(5) cross-cutting activities on feedstocks and 
enzymes; and 
(6) life-cycle economic analysis. 
(b) BIOFUELS AND BIOBASED PRODUCTS.—The ob-
jectives of the biofuels and biobased products programs 
under paragraphs (2), (3), and (4) of subsection (a), and 
of the biorefinery demonstration program under sub-
section (c), shall be to develop, in partnership with indus-
try—
(1) advanced biochemical and thermochemical 
conversion technologies capable of making high-value 
biobased chemical feedstocks and products, to sub-
stitute for petroleum-based feedstocks and products, 
biofuels that are price-competitive with gasoline or 
diesel in either internal combustion engines or fuel 
cell-powered vehicles, and biobased products from a 
variety of feedstocks, including grains, cellulosic bio-
mass, and agricultural byproducts; and 
(2) advanced biotechnology processes capable of 
making biofuels and biobased products, with empha-
429
sis on development of biorefinery technologies, in-
cluding enzyme-based processing technologies. 
(c) BIOMASS INTEGRATED REFINERY DEMONSTRA-
TION.—
(1) IN GENERAL.—The Secretary shall conduct 
a program to demonstrate the commercial applica-
tion of at least 5 integrated biorefineries. The Sec-
retary shall ensure geographical distribution of bio-
refinery demonstrations under this subsection. The 
Secretary shall not provide more than $100,000,000 
under this subsection for any single biorefinery dem-
onstration. The Secretary shall award the biorefinery 
demonstrations so as to encourage—
(A) the demonstration of a wide variety of 
cellulosic biomass feedstocks; 
(B) the commercial application of biomass 
technologies for a variety of uses, including—
(i) liquid transportation fuels; 
(ii) high-value biobased chemicals; 
(iii) substitutes for petroleum-based 
feedstocks and products; and 
(iv) energy in the form of electricity 
or useful heat; and 
(C) the demonstration of the collection and 
treatment of a variety of biomass feedstocks.
430
(2) PROPOSALS.—Not later than 6 months 
after the date of enactment of this Act, the Sec-
retary shall solicit proposals for demonstration of 
advanced biorefineries. The Secretary shall select 
only proposals that—
(A) demonstrate that the project will be 
able to operate profitably without direct Federal 
subsidy after initial construction costs are paid; 
and 
(B) enable the biorefinery to be easily rep-
licated. 
(d) UNIVERSITY BIODIESEL PROGRAM.—The Sec-
retary shall establish a demonstraton program to deter-
mine the feasibility of the operation of diesel electric power 
generators, using biodiesel fuels, with ratings as high as 
B100 at a university electric generation facility. The pro-
gram shall examine—
(1) heat rates of diesel fuels with large quan-
tities of cellulosic content; 
(2) the reliability of operation of various fuel 
blends; 
(3) performance in cold or freezing weather; 
(4) stability of fuel after extended storage; and 
(5) other criteria, as determined by the Sec-
retary.
431
(e) GRANTS.—Of the funds authorized to be appro-
priated for activities authorized under this section, not less 
than $5,000,000 for each fiscal year shall be made avail-
able for grants to Historically Black Colleges and Univer-
sities, Tribal Colleges, and Hispanic-Serving Institutions. 
SEC. 940. WIND. 
(a) PROGRAM.—The Secretary shall conduct a pro-
gram of research, development, demonstration, and com-
mercial application for wind energy, including—
(1) low speed wind energy; 
(2) offshore wind energy; 
(3) testing and verification; and 
(4) distributed wind energy generation. 
(b) FACILITY.—The Secretary shall construct and op-
erate a research and testing facility capable of testing the 
largest wind turbines that are expected to be manufac-
tured in the next 15 years. The Secretary shall consider 
the need for testing offshore turbine designs in siting the 
facility. All private users of the facility shall be required 
to pay the Department all costs associated with their use 
of the facility, including capital costs prorated at normal 
business amortization rates. 
(c) REGIONAL FIELD VERIFICATION PROGRAM.—Of 
the funds authorized to be appropriated for activities au-
thorized under this section, not less than $4,000,000 for
432
each fiscal year shall be made available for the Regional 
Field Verification Program of the Department. 
SEC. 941. GEOTHERMAL. 
The Secretary shall conduct a program of research, 
development, demonstration, and commercial application 
for geothermal energy. The program shall focus on devel-
oping improved technologies for reducing the costs of geo-
thermal energy installations, including technologies for—
(1) improving detection of geothermal re-
sources; 
(2) decreasing drilling costs; 
(3) decreasing maintenance costs through im-
proved materials; 
(4) increasing the potential for other revenue 
sources, such as mineral production; and 
(5) increasing the understanding of reservoir 
life cycle and management. 
SEC. 942. PHOTOVOLTAIC DEMONSTRATION PROGRAM. 
(a) IN GENERAL.—The Secretary shall establish a 
program of grants to States to demonstrate advanced pho-
tovoltaic technology. 
(b) REQUIREMENTS.—(1) To receive funding under 
the program under this section, a State must submit a 
proposal that demonstrates, to the satisfaction of the Sec-
433
retary, that the State will meet the requirements of sub-
section (f). 
(2) If a State has received funding under this section 
for the preceding year, the State must demonstrate, to the 
satisfaction of the Secretary, that it complied with the re-
quirements of subsection (f) in carrying out the program 
during that preceding year, and that it will do so in the 
future. 
(3) Except as provided in subsection (c), each State 
submitting a qualifying proposal shall receive funding 
under the program based on the proportion of United 
States population in the State according to the 2000 cen-
sus. In each fiscal year, the portion of funds attributable 
under this paragraph to States that have not submitted 
qualifying proposals in the time and manner specified by 
the Secretary shall be distributed pro rata to the States 
that have submitted qualifying proposals in the specified 
time and manner. 
(c) COMPETITION.—If more than $80,000,000 is 
available for the program under this section for any fiscal 
year, the Secretary shall allocate 75 percent of the funds 
available according to subsection (b), and shall award the 
remaining 25 percent on a competitive basis to the States 
with the proposals the Secretary considers most likely to
434
encourage the widespread adoption of photovoltaic tech-
nologies. 
(d) PROPOSALS.—Not later than 6 months after the 
date of enactment of this Act, and in each subsequent fis-
cal year for the life of the program, the Secretary shall 
solicit proposals from the States to participate in the pro-
gram under this section. 
(e) COMPETITIVE CRITERIA.—In awarding funds in 
a competitive allocation under subsection (c), the Sec-
retary shall consider—
(1) the likelihood of a proposal to encourage the 
demonstration of, or lower the costs of, advanced 
photovoltaic technologies; and 
(2) the extent to which a proposal is likely to—
(A) maximize the amount of photovoltaics 
demonstrated; 
(B) maximize the proportion of non-Fed-
eral cost share; and 
(C) limit State administrative costs. 
(f) STATE PROGRAM.—A program operated by a 
State with funding under this section shall provide com-
petitive awards for the demonstration of advanced photo-
voltaic technologies. Each State program shall—
(1) require a contribution of at least 60 percent 
per award from non-Federal sources, which may in-
435
clude any combination of State, local, and private 
funds, except that at least 10 percent of the funding 
must be supplied by the State; 
(2) limit awards for any single project to a 
maximum of $1,000,000; 
(3) prohibit any nongovernmental recipient 
from receiving more than $1,000,000 per year; 
(4) endeavor to fund recipients in the commer-
cial, industrial, institutional, governmental, and resi-
dential sectors; 
(5) limit State administrative costs to no more 
than 10 percent of the grant; 
(6) report annually to the Department on—
(A) the amount of funds disbursed; 
(B) the amount of photovoltaics purchased; 
and 
(C) the results of the monitoring under 
paragraph (7); 
(7) provide for measurement and verification of 
the output of a representative sample of the 
photovoltaics systems demonstrated throughout the 
average working life of the systems, or at least 20 
years; and 
(8) require that applicant buildings must have 
received an independent energy efficiency audit dur-
436
ing the 6-month period preceding the filing of the 
application. 
(g) UNEXPENDED FUNDS.—If a State fails to expend 
any funds received under subsection (b) or (c) within 3 
years of receipt, such remaining funds shall be returned 
to the Treasury. 
(h) REPORTS.—The Secretary shall report to Con-
gress 5 years after funds are first distributed to the States 
under this section—
(1) the amount of photovoltaics demonstrated; 
(2) the number of projects undertaken; 
(3) the administrative costs of the program; 
(4) the amount of funds that each State has 
not received because of a failure to submit a quali-
fying proposal, as described in subsection (b)(3); 
(5) the results of the monitoring under sub-
section (f)(7); and 
(6) the total amount of funds distributed, in-
cluding a breakdown by State. 
SEC. 943. ADDITIONAL PROGRAMS. 
(a) IN GENERAL.—The Secretary may conduct re-
search, development, demonstration, and commercial ap-
plication programs of—
(1) ocean energy, including wave energy; 
(2) kinetic hydro turbines; and
437
(3) the combined use of renewable energy tech-
nologies with one another and with other energy 
technologies. 
(b) MARINE RENEWABLE ENERGY STUDY.—
(1) STUDY.—The Secretary shall enter into an 
arrangement with the National Academy of Sciences 
to conduct a study on—
(A) the feasibility of various methods of re-
newable generation of energy from the ocean, 
including energy from waves, tides, currents, 
and thermal gradients; and 
(B) the research, development, demonstra-
tion, and commercial application activities re-
quired to make marine renewable energy gen-
eration competitive with other forms of elec-
tricity generation. 
(2) TRANSMITTAL.—Not later than 1 year after 
the date of enactment of this Act, the Secretary 
shall transmit the study to Congress along with the 
Secretary’s recommendations for implementing the 
results of the study. 
(c) RENEWABLE ENERGY IN PUBLIC BUILDINGS.—
(1) DEMONSTRATION AND TECHNOLOGY TRANS-
FER PROGRAM.—The Secretary shall establish a pro-
gram for the demonstration of innovative tech-
438
nologies for solar and other renewable energy 
sources in buildings owned or operated by a State or 
local government, and for the dissemination of infor-
mation resulting from such demonstration to inter-
ested parties. 
(2) LIMIT ON FEDERAL FUNDING.—The Sec-
retary shall provide under this subsection no more 
than 40 percent of the incremental costs of the solar 
or other renewable energy source project funded. 
(3) REQUIREMENT.—As part of the application 
for awards under this subsection, the Secretary shall 
require all applicants—
(A) to demonstrate a continuing commit-
ment to the use of solar and other renewable 
energy sources in buildings they own or operate; 
and 
(B) to state how they expect any award to 
further their transition to the significant use of 
renewable energy. 
SEC. 944. ANALYSIS AND EVALUATION. 
(a) IN GENERAL.—The Secretary shall conduct anal-
ysis and evaluation in support of the renewable energy 
programs under this subtitle. These activities shall be used 
to guide budget and program decisions, and shall in-
clude—
439
(1) economic and technical analysis of renew-
able energy potential, including resource assessment; 
(2) analysis of past program performance, both 
in terms of technical advances and in market intro-
duction of renewable energy; and 
(3) any other analysis or evaluation that the 
Secretary considers appropriate. 
(b) FUNDING.—The Secretary may designate up to 
1 percent of the funds appropriated for carrying out this 
subtitle for analysis and evaluation activities under this 
section. 
SEC. 945. AUTHORIZATION OF APPROPRIATIONS. 
The following sums are authorized to be appropriated 
to the Secretary for the purposes of carrying out this sub-
title: 
(1) For fiscal year 2006, $465,000,000, of 
which—
(A) $100,000,000 shall be for carrying out 
the solar program under section 938; 
(B) $200,000,000 shall be for carrying out 
the bioenergy program under section 939, in-
cluding $100,000,000 for the biorefinery dem-
onstration program under section 939(c); 
(C) $55,000,000 shall be for carrying out 
the wind program under section 940, including
440
$10,000,000 for the facility described in section 
940(b); 
(D) $30,000,000 shall be for carrying out 
the geothermal program under section 941; and 
(E) $50,000,000 shall be for carrying out 
the photovoltaic demonstration program under 
section 942. 
(2) For fiscal year 2007, $605,000,000, of 
which—
(A) $140,000,000 shall be for carrying out 
the solar program under section 938; 
(B) $245,000,000 shall be for carrying out 
the bioenergy program under section 939, in-
cluding $125,000,000 for the biorefinery dem-
onstration program under section 939(c); 
(C) $60,000,000 shall be for carrying out 
the wind program under section 940, including 
$15,000,000 for the facility described in section 
940(b); 
(D) $30,000,000 shall be for carrying out 
the geothermal program under section 941; and 
(E) $100,000,000 shall be for carrying out 
the photovoltaic demonstration program under 
section 942.