able housing and residential energy conservation 
measures that benefit low-income families’’. 
SEC. 142. INCREASE OF CDBG PUBLIC SERVICES CAP FOR 
ENERGY CONSERVATION AND EFFICIENCY 
ACTIVITIES. 
Section 105(a)(8) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5305(a)(8)) is 
amended— 
(1) by inserting ‘‘or efficiency’’ after ‘‘energy 
conservation’’; 
(2) by striking ‘‘, and except that’’ and insert-
ing ‘‘; except that’’; and 
(3) by inserting before the semicolon at the end 
the following: ‘‘; and except that each percentage 
limitation under this paragraph on the amount of 
assistance provided under this title that may be used 
for the provision of public services is hereby in-
creased by 10 percent, but such percentage increase 
may be used only for the provision of public services 
concerning energy conservation or efficiency’’. 
SEC. 143. FHA MORTGAGE INSURANCE INCENTIVES FOR 
ENERGY EFFICIENT HOUSING. 
(a) SINGLE FAMILY HOUSING MORTGAGE INSUR-
ANCE.—Section 203(b)(2) of the National Housing Act 
(12 U.S.C. 1709(b)(2)) is amended, in the first undesig-
nated paragraph beginning after subparagraph (B)(ii)(IV) 
(relating to solar energy systems), by striking ‘‘20 per-
cent’’ and inserting ‘‘30 percent’’. 
(b) MULTIFAMILY
HOUSING
MORTGAGE
INSUR-
ANCE.—Section 207(c) of the National Housing Act (12 
U.S.C. 1713(c)) is amended, in the last undesignated 
paragraph beginning after paragraph (3) (relating to solar 
energy systems and residential energy conservation meas-
ures), by striking ‘‘20 percent’’ and inserting ‘‘30 per-
cent’’. 
(c) COOPERATIVE
HOUSING
MORTGAGE
INSUR-
ANCE.—Section 213(p) of the National Housing Act (12 
U.S.C. 1715e(p)) is amended by striking ‘‘20 per centum’’ 
and inserting ‘‘30 percent’’. 
(d) REHABILITATION
AND NEIGHBORHOOD CON-
SERVATION HOUSING MORTGAGE INSURANCE.—Section 
220(d)(3)(B)(iii)(IV) of the National Housing Act (12 
U.S.C. 1715k(d)(3)(B)(iii)(IV)) is amended— 
(1) by striking ‘‘with respect to rehabilitation 
projects involving not more than five family units,’’; 
and 
(2) by striking ‘‘20 per centum’’ and inserting 
‘‘30 percent’’. 
(e) LOW-INCOME MULTIFAMILY HOUSING MORT-
GAGE INSURANCE.—Section 221(k) of the National Hous-
ing Act (12 U.S.C. 1715l(k)) is amended by striking ‘‘20 
per centum’’ and inserting ‘‘30 percent’’. 
(f) ELDERLY HOUSING MORTGAGE INSURANCE.— 
Section 231(c)(2)(C) of the National Housing Act (12 
U.S.C. 1715v(c)(2)(C)) is amended by striking ‘‘20 per 
centum’’ and inserting ‘‘30 percent’’. 
(g) CONDOMINIUM
HOUSING
MORTGAGE
INSUR-
ANCE.—Section 234(j) of the National Housing Act (12 
U.S.C. 1715y(j)) is amended by striking ‘‘20 per centum’’ 
and inserting ‘‘30 percent’’. 
SEC. 144. PUBLIC HOUSING CAPITAL FUND. 
Section 9 of the United States Housing Act of 1937 
(42 U.S.C. 1437g) is amended— 
(1) in subsection (d)(1)— 
(A) in subparagraph (I), by striking ‘‘and’’ 
at the end; 
(B) in subparagraph (J), by striking the 
period at the end and inserting a semicolon; 
and 
(C) by adding at the end the following new 
subparagraphs: 
‘‘(K) improvement of energy and water-use 
efficiency by installing fixtures and fittings that 
conform to the American Society of Mechanical 
Engineers/American National Standards Insti-
tute 
standards 
A112.19.2–1998 
and 
A112.18.1–2000, or any revision thereto, appli-
cable at the time of installation, and by increas-
ing energy efficiency and water conservation by 
such other means as the Secretary determines 
are appropriate; and 
‘‘(L) integrated utility management and 
capital planning to maximize energy conserva-
tion and efficiency measures.’’; and 
(2) in subsection (e)(2)(C)— 
(A) by striking ‘‘The’’ and inserting the 
following: 
‘‘(i) IN GENERAL.—The’’; and 
(B) by adding at the end the following: 
‘‘(ii) THIRD
PARTY
CONTRACTS.— 
Contracts described in clause (i) may in-
clude contracts for equipment conversions 
to less costly utility sources, projects with 
resident-paid utilities, and adjustments to 
frozen base year consumption, including 
systems repaired to meet applicable build-
ing and safety codes and adjustments for 
occupancy rates increased by rehabilita-
tion.
‘‘(iii) TERM OF CONTRACT.—The total 
term of a contract described in clause (i) 
shall not exceed 20 years to allow longer 
payback periods for retrofits, including 
windows, heating system replacements, 
wall insulation, site-based generation, ad-
vanced energy savings technologies, includ-
ing renewable energy generation, and other 
such retrofits.’’. 
SEC. 145. GRANTS FOR ENERGY-CONSERVING IMPROVE-
MENTS FOR ASSISTED HOUSING. 
Section 251(b)(1) of the National Energy Conserva-
tion Policy Act (42 U.S.C. 8231(1)) is amended— 
(1) by striking ‘‘financed with loans’’ and in-
serting ‘‘assisted’’; 
(2) by inserting after ‘‘1959,’’ the following: 
‘‘which are eligible multifamily housing projects (as 
such term is defined in section 512 of the Multi-
family Assisted Housing Reform and Affordability 
Act of 1997 (42 U.S.C. 1437f note)) and are subject 
to mortgage restructuring and rental assistance suf-
ficiency plans under such Act,’’; and 
(3) by inserting after the period at the end of 
the first sentence the following new sentence: ‘‘Such 
improvements may also include the installation of
energy and water conserving fixtures and fittings 
that conform to the American Society of Mechanical 
Engineers/American National Standards Institute 
standards A112.19.2–1998 and A112.18.1–2000, or 
any revision thereto, applicable at the time of instal-
lation.’’. 
SEC. 146. NORTH AMERICAN DEVELOPMENT BANK. 
Part 2 of subtitle D of title V of the North American 
Free Trade Agreement Implementation Act (22 U.S.C. 
290m–290m-3) is amended by adding at the end the fol-
lowing: 
‘‘SEC. 545. SUPPORT FOR CERTAIN ENERGY POLICIES. 
‘‘Consistent with the focus of the Bank’s Charter on 
environmental infrastructure projects, the Board members 
representing the United States should use their voice and 
vote to encourage the Bank to finance projects related to 
clean and efficient energy, including energy conservation, 
that prevent, control, or reduce environmental pollutants 
or contaminants.’’. 
SEC. 147. ENERGY-EFFICIENT APPLIANCES. 
In purchasing appliances, a public housing agency 
shall purchase energy-efficient appliances that are Energy 
Star products or FEMP-designated products, as such 
terms are defined in section 553 of the National Energy 
Conservation Policy Act (as amended by this title), unless
the purchase of energy-efficient appliances is not cost-ef-
fective to the agency. 
SEC. 148. ENERGY EFFICIENCY STANDARDS. 
Section 109 of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 12709) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)— 
(i) by striking ‘‘1 year after the date 
of the enactment of the Energy Policy Act 
of 1992’’ and inserting ‘‘September 30, 
2004’’; 
(ii) in subparagraph (A), by striking 
‘‘and’’ at the end; 
(iii) in subparagraph (B), by striking 
the period at the end and inserting ‘‘; 
and’’; and 
(iv) by adding at the end the fol-
lowing: 
‘‘(C) rehabilitation and new construction of 
public and assisted housing funded by HOPE 
VI revitalization grants under section 24 of the 
United States Housing Act of 1937 (42 U.S.C. 
1437v), where such standards are determined 
to be cost effective by the Secretary of Housing 
and Urban Development.’’; and
(B) in paragraph (2), by striking ‘‘Council 
of American’’ and all that follows through 
‘‘90.1–1989’)’’ and inserting ‘‘2003 Inter-
national Energy Conservation Code’’; 
(2) in subsection (b)— 
(A) by striking ‘‘within 1 year after the 
date of the enactment of the Energy Policy Act 
of 1992’’ and inserting ‘‘by September 30, 
2004’’; and 
(B) by striking ‘‘CABO’’ and all that fol-
lows through ‘‘1989’’ and inserting ‘‘the 2003 
International Energy Conservation Code’’; and 
(3) in subsection (c)— 
(A) in the heading, by striking ‘‘MODEL 
ENERGY CODE’’ and inserting ‘‘THE INTER-
NATIONAL
ENERGY
CONSERVATION
CODE’’; 
and 
(B) by striking ‘‘CABO’’ and all that fol-
lows through ‘‘1989’’ and inserting ‘‘the 2003 
International Energy Conservation Code’’. 
SEC. 149. ENERGY STRATEGY FOR HUD. 
The Secretary of Housing and Urban Development 
shall develop and implement an integrated strategy to re-
duce utility expenses through cost-effective energy con-
servation and efficiency measures and energy efficient de-
sign and construction of public and assisted housing. The 
energy strategy shall include the development of energy 
reduction goals and incentives for public housing agencies. 
The Secretary shall submit a report to Congress, not later 
than 1 year after the date of the enactment of this Act, 
on the energy strategy and the actions taken by the De-
partment of Housing and Urban Development to monitor 
the energy usage of public housing agencies and shall sub-
mit an update every 2 years thereafter on progress in im-
plementing the strategy. 
TITLE II—RENEWABLE ENERGY 
Subtitle A—General Provisions 
SEC. 201. ASSESSMENT OF RENEWABLE ENERGY RE-
SOURCES. 
(a) RESOURCE ASSESSMENT.—Not later than 6 
months after the date of enactment of this Act, and each 
year thereafter, the Secretary of Energy shall review the 
available assessments of renewable energy resources with-
in the United States, including solar, wind, biomass, ocean 
(tidal, wave, current, and thermal), geothermal, and hy-
droelectric energy resources, and undertake new assess-
ments as necessary, taking into account changes in market 
conditions, available technologies, and other relevant fac-
tors.
(b) CONTENTS OF REPORTS.—Not later than 1 year 
after the date of enactment of this Act, and each year 
thereafter, the Secretary shall publish a report based on 
the assessment under subsection (a). The report shall con-
tain— 
(1) a detailed inventory describing the available 
amount and characteristics of the renewable energy 
resources; and 
(2) such other information as the Secretary be-
lieves would be useful in developing such renewable 
energy resources, including descriptions of sur-
rounding terrain, population and load centers, near-
by energy infrastructure, location of energy and 
water resources, and available estimates of the costs 
needed to develop each resource, together with an 
identification of any barriers to providing adequate 
transmission for remote sources of renewable energy 
resources to current and emerging markets, rec-
ommendations for removing or addressing such bar-
riers, and ways to provide access to the grid that do 
not unfairly disadvantage renewable or other energy 
producers. 
(c) AUTHORIZATION OF APPROPRIATIONS.—For the 
purposes of this section, there are authorized to be appro-
priated to the Secretary of Energy $10,000,000 for each 
of fiscal years 2004 through 2008. 
SEC. 202. RENEWABLE ENERGY PRODUCTION INCENTIVE. 
(a) INCENTIVE PAYMENTS.—Section 1212(a) of the 
Energy Policy Act of 1992 (42 U.S.C. 13317(a)) is 
amended by striking ‘‘and which satisfies’’ and all that 
follows through ‘‘Secretary shall establish.’’ and inserting 
‘‘. If there are insufficient appropriations to make full pay-
ments for electric production from all qualified renewable 
energy facilities in any given year, the Secretary shall as-
sign 60 percent of appropriated funds for that year to fa-
cilities that use solar, wind, geothermal, or closed-loop 
(dedicated energy crops) biomass technologies to generate 
electricity, and assign the remaining 40 percent to other 
projects. The Secretary may, after transmitting to Con-
gress an explanation of the reasons therefor, alter the per-
centage requirements of the preceding sentence.’’. 
(b) QUALIFIED RENEWABLE ENERGY FACILITY.— 
Section 1212(b) of the Energy Policy Act of 1992 (42 
U.S.C. 13317(b)) is amended— 
(1) by striking ‘‘a State or any political’’ and 
all that follows through ‘‘nonprofit electrical cooper-
ative’’ and inserting ‘‘a not-for-profit electric cooper-
ative, a public utility described in section 115 of the 
Internal Revenue Code of 1986, a State, Common-
wealth, territory, or possession of the United States 
or the District of Columbia, or a political subdivision 
thereof, or an Indian tribal government or subdivi-
sion thereof,’’; and 
(2) by inserting ‘‘landfill gas,’’ after ‘‘wind, bio-
mass,’’. 
(c) ELIGIBILITY WINDOW.—Section 1212(c) of the 
Energy Policy Act of 1992 (42 U.S.C. 13317(c)) is 
amended by striking ‘‘during the 10-fiscal year period be-
ginning with the first full fiscal year occurring after the 
enactment of this section’’ and inserting ‘‘after October 
1, 2003, and before October 1, 2013’’. 
(d) AMOUNT OF PAYMENT.—Section 1212(e)(1) of 
the Energy Policy Act of 1992 (42 U.S.C. 13317(e)(1)) 
is amended by inserting ‘‘landfill gas,’’ after ‘‘wind, bio-
mass,’’. 
(e) SUNSET.—Section 1212(f) of the Energy Policy 
Act of 1992 (42 U.S.C. 13317(f)) is amended by striking 
‘‘the expiration of’’ and all that follows through ‘‘of this 
section’’ and inserting ‘‘September 30, 2023’’. 
(f) AUTHORIZATION OF APPROPRIATIONS.—Section 
1212(g) of the Energy Policy Act of 1992 (42 U.S.C. 
13317(g)) is amended to read as follows: 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
there are authorized to be appropriated such sums 
as may be necessary to carry out this section for fis-
cal years 2003 through 2023. 
‘‘(2) AVAILABILITY OF FUNDS.—Funds made 
available under paragraph (1) shall remain available 
until expended.’’. 
SEC. 203. FEDERAL PURCHASE REQUIREMENT. 
(a) REQUIREMENT.—The President, acting through 
the Secretary of Energy, shall seek to ensure that, to the 
extent economically feasible and technically practicable, of 
the total amount of electric energy the Federal Govern-
ment consumes during any fiscal year, the following 
amounts shall be renewable energy: 
(1) Not less than 3 percent in fiscal years 2005 
through 2007. 
(2) Not less than 5 percent in fiscal years 2008 
through 2010. 
(3) Not less than 7.5 percent in fiscal year 
2011 and each fiscal year thereafter. 
(b) DEFINITIONS.—In this section: 
(1) BIOMASS.—The term ‘‘biomass’’ means any 
solid, nonhazardous, cellulosic material that is de-
rived from—
(A) any of the following forest-related re-
sources: mill residues, precommercial thinnings, 
slash, and brush, or nonmerchantable material; 
(B) solid wood waste materials, including 
waste pallets, crates, dunnage, manufacturing 
and construction wood wastes (other than pres-
sure-treated, 
chemically-treated, 
or 
painted 
wood wastes), and landscape or right-of-way 
tree trimmings, but not including municipal 
solid waste (garbage), gas derived from the bio-
degradation of solid waste, or paper that is 
commonly recycled; 
(C) agriculture wastes, including orchard 
tree crops, vineyard, grain, legumes, sugar, and 
other crop by-products or residues, and live-
stock waste nutrients; or 
(D) a plant that is grown exclusively as a 
fuel for the production of electricity. 
(2) RENEWABLE ENERGY.—The term ‘‘renew-
able energy’’ means electric energy generated from 
solar, wind, biomass, landfill gas, geothermal, munic-
ipal solid waste, or new hydroelectric generation ca-
pacity achieved from increased efficiency or addi-
tions of new capacity at an existing hydroelectric 
project.
(c) CALCULATION.—For purposes of determining 
compliance with the requirement of this section, the 
amount of renewable energy shall be doubled if— 
(1) the renewable energy is produced and used 
on-site at a Federal facility; 
(2) the renewable energy is produced on Fed-
eral lands and used at a Federal facility; or 
(3) the renewable energy is produced on Indian 
land as defined in title XXVI of the Energy Policy 
Act of 1992 (25 U.S.C. 3501 et. seq.) and used at 
a Federal facility. 
(d) REPORT.—Not later than April 15, 2005, and 
every 2 years thereafter, the Secretary of Energy shall 
provide a report to Congress on the progress of the Fed-
eral Government in meeting the goals established by this 
section. 
SEC. 204. INSULAR AREAS ENERGY SECURITY. 
Section 604 of the Act entitled ‘‘An Act to authorize 
appropriations for certain insular areas of the United 
States, and for other purposes’’, approved December 24, 
1980 (48 U.S.C. 1492), is amended— 
(1) in subsection (a)(4) by striking the period 
and inserting a semicolon; 
(2) by adding at the end of subsection (a) the 
following new paragraphs:
‘‘(5) electric power transmission and distribu-
tion lines in insular areas are inadequate to with-
stand damage caused by the hurricanes and ty-
phoons which frequently occur in insular areas and 
such damage often costs millions of dollars to repair; 
and 
‘‘(6) the refinement of renewable energy tech-
nologies since the publication of the 1982 Territorial 
Energy Assessment prepared pursuant to subsection 
(c) reveals the need to reassess the state of energy 
production, consumption, infrastructure, reliance on 
imported energy, opportunities for energy conserva-
tion and increased energy efficiency, and indigenous 
sources in regard to the insular areas.’’; 
(3) by amending subsection (e) to read as fol-
lows: 
‘‘(e)(1) The Secretary of the Interior, in consultation 
with the Secretary of Energy and the head of government 
of each insular area, shall update the plans required under 
subsection (c) by— 
‘‘(A) updating the contents required by sub-
section (c); 
‘‘(B) drafting long-term energy plans for such 
insular areas with the objective of reducing, to the 
extent feasible, their reliance on energy imports by
the year 2010, increasing energy conservation and 
energy efficiency, and maximizing, to the extent fea-
sible, use of indigenous energy sources; and 
‘‘(C) drafting long-term energy transmission 
line plans for such insular areas with the objective 
that the maximum percentage feasible of electric 
power transmission and distribution lines in each in-
sular area be protected from damage caused by hur-
ricanes and typhoons. 
‘‘(2) Not later than December 31, 2005, the Sec-
retary of the Interior shall submit to Congress the updated 
plans for each insular area required by this subsection.’’; 
and 
(4) by amending subsection (g)(4) to read as 
follows: 
‘‘(4) POWER
LINE
GRANTS
FOR
INSULAR 
AREAS.— 
‘‘(A) IN GENERAL.—The Secretary of the 
Interior is authorized to make grants to govern-
ments of insular areas of the United States to 
carry out eligible projects to protect electric 
power transmission and distribution lines in 
such insular areas from damage caused by hur-
ricanes and typhoons.
‘‘(B) ELIGIBLE PROJECTS.—The Secretary 
may award grants under subparagraph (A) only 
to governments of insular areas of the United 
States that submit written project plans to the 
Secretary for projects that meet the following 
criteria: 
‘‘(i) The project is designed to protect 
electric power transmission and distribu-
tion lines located in 1 or more of the insu-
lar areas of the United States from dam-
age caused by hurricanes and typhoons. 
‘‘(ii) The project is likely to substan-
tially reduce the risk of future damage, 
hardship, loss, or suffering. 
‘‘(iii) The project addresses 1 or more 
problems that have been repetitive or that 
pose a significant risk to public health and 
safety. 
‘‘(iv) The project is not likely to cost 
more than the value of the reduction in di-
rect damage and other negative impacts 
that the project is designed to prevent or 
mitigate. The cost benefit analysis required 
by this criterion shall be computed on a 
net present value basis.
‘‘(v) The project design has taken into 
consideration long-term changes to the 
areas and persons it is designed to protect 
and has manageable future maintenance 
and modification requirements. 
‘‘(vi) The project plan includes an 
analysis of a range of options to address 
the problem it is designed to prevent or 
mitigate and a justification for the selec-
tion of the project in light of that analysis. 
‘‘(vii) The applicant has demonstrated 
to the Secretary that the matching funds 
required by subparagraph (D) are avail-
able. 
‘‘(C) PRIORITY.—When making grants 
under this paragraph, the Secretary shall give 
priority to grants for projects which are likely 
to— 
‘‘(i) have the greatest impact on re-
ducing future disaster losses; and 
‘‘(ii) best conform with plans that 
have been approved by the Federal Govern-
ment or the government of the insular area 
where the project is to be carried out for
development or hazard mitigation for that 
insular area. 
‘‘(D) 
MATCHING
REQUIREMENT.—The 
Federal share of the cost for a project for which 
a grant is provided under this paragraph shall 
not exceed 75 percent of the total cost of that 
project. The non-Federal share of the cost may 
be provided in the form of cash or services. 
‘‘(E) TREATMENT OF FUNDS FOR CERTAIN 
PURPOSES.—Grants provided under this para-
graph shall not be considered as income, a re-
source, or a duplicative program when deter-
mining eligibility or benefit levels for Federal 
major disaster and emergency assistance. 
‘‘(F) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appro-
priated to carry out this paragraph $5,000,000 
for each fiscal year beginning after the date of 
the enactment of this paragraph.’’. 
SEC. 205. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC 
BUILDINGS. 
(a) IN GENERAL.—Subchapter VI of chapter 31 of 
title 40, United States Code, is amended by adding at the 
end the following:
‘‘§ 3177. Use of photovoltaic energy in public build-
ings 
‘‘(a) PHOTOVOLTAIC ENERGY COMMERCIALIZATION 
PROGRAM.— 
‘‘(1) IN GENERAL.—The Administrator of Gen-
eral Services may establish a photovoltaic energy 
commercialization program for the procurement and 
installation of photovoltaic solar electric systems for 
electric production in new and existing public build-
ings. 
‘‘(2) PURPOSES.—The purposes of the program 
shall be to accomplish the following: 
‘‘(A) To accelerate the growth of a com-
mercially viable photovoltaic industry to make 
this energy system available to the general pub-
lic as an option which can reduce the national 
consumption of fossil fuel. 
‘‘(B) To reduce the fossil fuel consumption 
and costs of the Federal Government. 
‘‘(C) To attain the goal of installing solar 
energy systems in 20,000 Federal buildings by 
2010, as contained in the Federal Government’s 
Million Solar Roof Initiative of 1997. 
‘‘(D) To stimulate the general use within 
the Federal Government of life-cycle costing 
and innovative procurement methods.
‘‘(E) To develop program performance 
data to support policy decisions on future incen-
tive programs with respect to energy. 
‘‘(3) ACQUISITION
OF
PHOTOVOLTAIC
SOLAR 
ELECTRIC SYSTEMS.— 
‘‘(A) IN
GENERAL.—The program shall 
provide for the acquisition of photovoltaic solar 
electric systems and associated storage capa-
bility for use in public buildings. 
‘‘(B) ACQUISITION LEVELS.—The acquisi-
tion of photovoltaic electric systems shall be at 
a level substantial enough to allow use of low- 
cost production techniques with at least 150 
megawatts (peak) cumulative acquired during 
the 5 years of the program. 
‘‘(4) 
ADMINISTRATION.—The 
Administrator 
shall administer the program and shall— 
‘‘(A) issue such rules and regulations as 
may be appropriate to monitor and assess the 
performance and operation of photovoltaic solar 
electric systems installed pursuant to this sub-
section; 
‘‘(B) develop innovative procurement strat-
egies for the acquisition of such systems; and
‘‘(C) transmit to Congress an annual re-
port on the results of the program. 
‘‘(b) PHOTOVOLTAIC SYSTEMS EVALUATION PRO-
GRAM.— 
‘‘(1) IN
GENERAL.—Not later than 60 days 
after the date of enactment of this section, the Ad-
ministrator, in consultation with the Secretary of 
Energy, shall establish a photovoltaic solar energy 
systems evaluation program to evaluate such photo-
voltaic solar energy systems as are required in public 
buildings. 
‘‘(2) PROGRAM REQUIREMENT.—In evaluating 
photovoltaic solar energy systems under the pro-
gram, the Administrator shall ensure that such sys-
tems reflect the most advanced technology. 
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(1) PHOTOVOLTAIC ENERGY COMMERCIALIZA-
TION PROGRAM.—There are authorized to be appro-
priated to carry out subsection (a) $50,000,000 for 
each of fiscal years 2004 through 2008. Such sums 
shall remain available until expended. 
‘‘(2) PHOTOVOLTAIC
SYSTEMS
EVALUATION 
PROGRAM.—There are authorized to be appropriated 
to carry out subsection (b) $10,000,000 for each of
fiscal years 2004 through 2008. Such sums shall re-
main available until expended.’’. 
(b) CONFORMING AMENDMENT.—The section anal-
ysis for such chapter is amended by inserting after the 
item relating to section 3176 the following: 
‘‘3177. Use of photovoltaic energy in public buildings.’’. 
SEC. 206. GRANTS TO IMPROVE THE COMMERCIAL VALUE 
OF FOREST BIOMASS FOR ELECTRIC ENERGY, 
USEFUL HEAT, TRANSPORTATION FUELS, PE-
TROLEUM-BASED 
PRODUCT 
SUBSTITUTES, 
AND OTHER COMMERCIAL PURPOSES. 
(a) FINDINGS.—Congress finds the following: 
(1) Thousands of communities in the United 
States, many located near Federal lands, are at risk 
to wildfire. Approximately 190,000,000 acres of land 
managed by the Secretary of Agriculture and the 
Secretary of the Interior are at risk of catastrophic 
fire in the near future. The accumulation of heavy 
forest fuel loads continues to increase as a result of 
disease, insect infestations, and drought, further 
raising the risk of fire each year. 
(2) In addition, more than 70,000,000 acres 
across all land ownerships are at risk to higher than 
normal mortality over the next 15 years from insect 
infestation and disease. High levels of tree mortality 
from insects and disease result in increased fire risk,
loss of old growth, degraded watershed conditions, 
and changes in species diversity and productivity, as 
well as diminished fish and wildlife habitat and de-
creased timber values. 
(3) Preventive treatments such as removing fuel 
loading, ladder fuels, and hazard trees, planting 
proper species mix and restoring and protecting 
early successional habitat, and other specific restora-
tion treatments designed to reduce the susceptibility 
of forest land, woodland, and rangeland to insect 
outbreaks, disease, and catastrophic fire present the 
greatest opportunity for long-term forest health by 
creating a mosaic of species-mix and age distribu-
tion. Such prevention treatments are widely acknowl-
edged to be more successful and cost effective than 
suppression treatments in the case of insects, dis-
ease, and fire. 
(4) The byproducts of preventive treatment 
(wood, brush, thinnings, chips, slash, and other haz-
ardous fuels) removed from forest lands, woodlands 
and rangelands represent an abundant supply of bio-
mass for biomass-to-energy facilities and raw mate-
rial for business. There are currently few markets 
for the extraordinary volumes of byproducts being
generated as a result of the necessary large-scale 
preventive treatment activities. 
(5) The United States should— 
(A) promote economic and entrepreneurial 
opportunities in using byproducts removed 
through preventive treatment activities related 
to hazardous fuels reduction, disease, and insect 
infestation; and 
(B) develop and expand markets for tradi-
tionally underused wood and biomass as an out-
let for byproducts of preventive treatment ac-
tivities. 
(b) DEFINITIONS.—In this section: 
(1) BIOMASS.—The term ‘‘biomass’’ means 
trees and woody plants, including limbs, tops, nee-
dles, and other woody parts, and byproducts of pre-
ventive treatment, such as wood, brush, thinnings, 
chips, and slash, that are removed— 
(A) to reduce hazardous fuels; or 
(B) to reduce the risk of or to contain dis-
ease or insect infestation. 
(2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given the term in section 4(e) of 
the Indian Self-Determination and Education Assist-
ance Act (25 U.S.C. 450b(e)).
(3) PERSON.—The term ‘‘person’’ includes— 
(A) an individual; 
(B) a community (as determined by the 
Secretary concerned); 
(C) an Indian tribe; 
(D) a small business, micro-business, or a 
corporation that is incorporated in the United 
States; and 
(E) a nonprofit organization. 
(4) PREFERRED COMMUNITY.—The term ‘‘pre-
ferred community’’ means— 
(A) any town, township, municipality, or 
other similar unit of local government (as deter-
mined by the Secretary concerned) that— 
(i) has a population of not more than 
50,000 individuals; and 
(ii) the Secretary concerned, in the 
sole discretion of the Secretary concerned, 
determines contains or is located near 
land, the condition of which is at signifi-
cant risk of catastrophic wildfire, disease, 
or insect infestation or which suffers from 
disease or insect infestation; or 
(B) any county that—
(i) is not contained within a metro-
politan statistical area; and 
(ii) the Secretary concerned, in the 
sole discretion of the Secretary concerned, 
determines contains or is located near 
land, the condition of which is at signifi-
cant risk of catastrophic wildfire, disease, 
or insect infestation or which suffers from 
disease or insect infestation. 
(5) SECRETARY CONCERNED.—The term ‘‘Sec-
retary concerned’’ means— 
(A) the Secretary of Agriculture with re-
spect to National Forest System lands; and 
(B) the Secretary of the Interior with re-
spect to Federal lands under the jurisdiction of 
the Secretary of the Interior and Indian lands. 
(c) BIOMASS COMMERCIAL USE GRANT PROGRAM.— 
(1) IN
GENERAL.—The Secretary concerned 
may make grants to any person that owns or oper-
ates a facility that uses biomass as a raw material 
to produce electric energy, sensible heat, transpor-
tation fuels, or substitutes for petroleum-based prod-
ucts to offset the costs incurred to purchase biomass 
for use by such facility.
100 
(2) GRANT AMOUNTS.—A grant under this sub-
section may not exceed $20 per green ton of biomass 
delivered. 
(3) MONITORING OF GRANT RECIPIENT ACTIVI-
TIES.—As a condition of a grant under this sub-
section, the grant recipient shall keep such records 
as the Secretary concerned may require to fully and 
correctly disclose the use of the grant funds and all 
transactions involved in the purchase of biomass. 
Upon notice by a representative of the Secretary 
concerned, the grant recipient shall afford the rep-
resentative reasonable access to the facility that pur-
chases or uses biomass and an opportunity to exam-
ine the inventory and records of the facility. 
(d) IMPROVED BIOMASS USE GRANT PROGRAM.— 
(1) IN
GENERAL.—The Secretary concerned 
may make grants to persons to offset the cost of 
projects to develop or research opportunities to im-
prove the use of, or add value to, biomass. In mak-
ing such grants, the Secretary concerned shall give 
preference to persons in preferred communities. 
(2) SELECTION.—The Secretary concerned shall 
select a grant recipient under paragraph (1) after 
giving consideration to the anticipated public bene-
fits of the project, including the potential to develop
101 
thermal or electric energy resources or affordable en-
ergy, opportunities for the creation or expansion of 
small businesses and micro-businesses, and the po-
tential for new job creation. 
(3) GRANT AMOUNT.—A grant under this sub-
section may not exceed $500,000. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated $50,000,000 for each 
of the fiscal years 2004 through 2014 to carry out this 
section. 
(f) REPORT.—Not later than October 1, 2010, the 
Secretary of Agriculture, in consultation with the Sec-
retary of the Interior, shall submit to the Committee on 
Energy and Natural Resources and the Committee on Ag-
riculture, Nutrition, and Forestry of the Senate and the 
Committee on Resources, the Committee on Energy and 
Commerce, and the Committee on Agriculture of the 
House of Representatives a report describing the results 
of the grant programs authorized by this section. The re-
port shall include the following: 
(1) An identification of the size, type, and the 
use of biomass by persons that receive grants under 
this section.
102 
(2) The distance between the land from which 
the biomass was removed and the facility that used 
the biomass. 
(3) The economic impacts, particularly new job 
creation, resulting from the grants to and operation 
of the eligible operations. 
SEC. 207. BIOBASED PRODUCTS. 
Section 9002(c)(1) of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8102(c)(1)) is amended 
by inserting ‘‘or such items that comply with the regula-
tions issued under section 103 of Public Law 100–556 (42 
U.S.C. 6914b–1)’’ after ‘‘practicable’’. 
Subtitle B—Geothermal Energy 
SEC. 211. SHORT TITLE. 
This subtitle may be cited as the ‘‘John Rishel Geo-
thermal Steam Act Amendments of 2004’’. 
SEC. 212. COMPETITIVE LEASE SALE REQUIREMENTS. 
Section 4 of the Geothermal Steam Act of 1970 (30 
U.S.C. 1003) is amended to read as follows: 
‘‘SEC. 4. LEASING PROCEDURES. 
‘‘(a) NOMINATIONS.—The Secretary shall accept 
nominations of lands to be leased at any time from quali-
fied companies and individuals under this Act. 
‘‘(b) COMPETITIVE LEASE SALE REQUIRED.—The 
Secretary shall hold a competitive lease sale at least once
103 
every 2 years for lands in a State which has nominations 
pending under subsection (a) if such lands are otherwise 
available for leasing. 
‘‘(c) NONCOMPETITIVE
LEASING.—The Secretary 
shall make available for a period of 2 years for non-
competitive leasing any tract for which a competitive lease 
sale is held, but for which the Secretary does not receive 
any bids in a competitive lease sale. 
‘‘(d) LEASES SOLD AS A BLOCK.—If information is 
available to the Secretary indicating a geothermal resource 
that could be produced as 1 unit can reasonably be ex-
pected to underlie more than 1 parcel to be offered in a 
competitive lease sale, the parcels for such a resource may 
be offered for bidding as a block in the competitive lease 
sale. 
‘‘(e) PENDING LEASE APPLICATIONS ON APRIL 1, 
2003.—It shall be a priority for the Secretary of the Inte-
rior, and for the Secretary of Agriculture with respect to 
National Forest Systems lands, to ensure timely comple-
tion of administrative actions necessary to process applica-
tions for geothermal leasing pending on April 1, 2003. 
Such an application, and any lease issued pursuant to 
such an application—
104 
‘‘(1) except as provided in paragraph (2), shall 
be subject to this section as in effect on April 1, 
2003; or 
‘‘(2) at the election of the applicant, shall be 
subject to this section as in effect on the effective 
date of this paragraph.’’. 
SEC. 213. DIRECT USE. 
(a) FEES FOR DIRECT USE.—Section 5 of the Geo-
thermal Steam Act of 1970 (30 U.S.C. 1004) is amend-
ed— 
(1) in paragraph (c) by redesignating subpara-
graphs (1) and (2) as subparagraphs (A) and (B); 
(2) by redesignating paragraphs (a) through (d) 
in order as paragraphs (1) through (4); 
(3) by inserting ‘‘(a) IN GENERAL.—’’ after 
‘‘SEC. 5.’’; and 
(4) by adding at the end the following: 
‘‘(b) DIRECT
USE.—Notwithstanding subsection 
(a)(1), with respect to the direct use of geothermal re-
sources for purposes other than the commercial generation 
of electricity, the Secretary of the Interior shall establish 
a schedule of fees and collect fees pursuant to such a 
schedule in lieu of royalties based upon the total amount 
of the geothermal resources used. The schedule of fees 
shall ensure that there is a fair return to the public for
105 
the use of a geothermal resource based upon comparable 
fees charged for direct use of geothermal resources by 
States or private persons. For direct use by a State or 
local government for public purposes there shall be no roy-
alty and the fee charged shall be nominal. Leases in exist-
ence on the date of enactment of the Energy Policy Act 
of 2003 shall be modified in order to reflect the provisions 
of this subsection.’’. 
(b) LEASING FOR DIRECT USE.—Section 4 of the 
Geothermal Steam Act of 1970 (30 U.S.C. 1003) is fur-
ther amended by adding at the end the following: 
‘‘(f) LEASING FOR DIRECT USE OF GEOTHERMAL 
RESOURCES.—Lands leased under this Act exclusively for 
direct use of geothermal resources shall be leased to any 
qualified applicant who first applies for such a lease under 
regulations issued by the Secretary, if— 
‘‘(1) the Secretary publishes a notice of the 
lands proposed for leasing 60 days before the date 
of the issuance of the lease; and 
‘‘(2) the Secretary does not receive in the 60- 
day period beginning on the date of such publication 
any nomination to include the lands concerned in the 
next competitive lease sale. 
‘‘(g) AREA SUBJECT TO LEASE FOR DIRECT USE.— 
A geothermal lease for the direct use of geothermal re-
106 
sources shall embrace not more than the amount of acre-
age determined by the Secretary to be reasonably nec-
essary for such proposed utilization.’’. 
(c) EXISTING LEASES WITH A DIRECT USE FACIL-
ITY.— 
(1) APPLICATION
TO
CONVERT.—Any lessee 
under a lease under the Geothermal Steam Act of 
1970 that was issued before the date of the enact-
ment of this Act may apply to the Secretary of the 
Interior, by not later than 18 months after the date 
of the enactment of this Act, to convert such lease 
to a lease for direct utilization of geothermal re-
sources in accordance with the amendments made by 
this section. 
(2) CONVERSION.—The Secretary shall approve 
such an application and convert such a lease to a 
lease in accordance with the amendments by not 
later than 180 days after receipt of such application, 
unless the Secretary determines that the applicant is 
not a qualified applicant with respect to the lease. 
(3) APPLICATION OF NEW LEASE TERMS.—The 
amendment made by subsection (a)(4) shall apply 
with respect to payments under a lease converted 
under this subsection that are due and owing to the 
United States on or after July 16, 2003.
107 
SEC. 214. ROYALTIES AND NEAR-TERM PRODUCTION IN-
CENTIVES. 
(a) ROYALTY.—Section 5 of the Geothermal Steam 
Act of 1970 (30 U.S.C. 1004) is further amended— 
(1) in subsection (a) by striking paragraph (1) 
and inserting the following: 
‘‘(1) a royalty on electricity produced using geo-
thermal steam and associated geothermal resources, 
other than direct use of geothermal resources, that 
shall be— 
‘‘(A) not less than 1 percent and not more 
than 2.5 percent of the gross proceeds from the 
sale of electricity produced from such resources 
during the first 10 years of production under 
the lease; and 
‘‘(B) not less than 2 and not more than 5 
percent of the gross proceeds from the sale of 
electricity produced from such resources during 
each year after such 10-year period;’’; and 
(2) by adding at the end the following: 
‘‘(c) FINAL REGULATION ESTABLISHING ROYALTY 
RATES.—In issuing any final regulation establishing roy-
alty rates under this section, the Secretary shall seek— 
‘‘(1) to provide lessees a simplified administra-
tive system; 
‘‘(2) to encourage new development; and
108 
‘‘(3) to achieve the same long-term level of roy-
alty revenues to States and counties as the regula-
tion in effect on the date of enactment of this sub-
section. 
‘‘(d) CREDITS FOR IN-KIND PAYMENTS OF ELEC-
TRICITY.—The Secretary may provide to a lessee a credit 
against royalties owed under this Act, in an amount equal 
to the value of electricity provided under contract to a 
State or county government that is entitled to a portion 
of such royalties under section 20 of this Act, section 35 
of the Mineral Leasing Act (30 U.S.C. 191), or section 
6 of the Mineral Leasing Act for Acquired Lands (30 
U.S.C. 355), if— 
‘‘(1) the Secretary has approved in advance the 
contract between the lessee and the State or county 
government for such in-kind payments; 
‘‘(2) the contract establishes a specific method-
ology to determine the value of such credits; and 
‘‘(3) the maximum credit will be equal to the 
royalty value owed to the State or county that is a 
party to the contract and the electricity received will 
serve as the royalty payment from the Federal Gov-
ernment to that entity.’’. 
(b) DISPOSAL OF MONEYS FROM SALES, BONUSES, 
ROYALTIES, AND RENTALS.—Section 20 of the Geo-
110 
alty required to be paid shall be 50 percent of the 
amount of the royalty otherwise required, on any 
lease issued before the date of enactment of this Act 
that does not convert to new royalty terms under 
subsection (e)— 
(A) with respect to commercial production 
of energy from a facility that begins such pro-
duction in the 6-year period beginning on the 
date of the enactment of this Act; or 
(B) on qualified expansion geothermal en-
ergy. 
(2) 4-YEAR APPLICATION.—Paragraph (1) ap-
plies only to new commercial production of energy 
from a facility in the first 4 years of such produc-
tion. 
(d) DEFINITION OF QUALIFIED EXPANSION GEO-
THERMAL ENERGY.—In this section, the term ‘‘qualified 
expansion geothermal energy’’ means geothermal energy 
produced from a generation facility for which— 
(1) the production is increased by more than 10 
percent as a result of expansion of the facility car-
ried out in the 6-year period beginning on the date 
of the enactment of this Act; and 
(2) such production increase is greater than 10 
percent of the average production by the facility dur-
111 
ing the 5-year period preceding the expansion of the 
facility. 
(e) ROYALTY UNDER EXISTING LEASES.— 
(1) IN
GENERAL.—Any lessee under a lease 
issued under the Geothermal Steam Act of 1970 be-
fore the date of the enactment of this Act may mod-
ify the terms of the lease relating to payment of roy-
alties to comply with the amendment made by sub-
section (a), by applying to the Secretary of the Inte-
rior by not later than 18 months after the date of 
the enactment of this Act. 
(2) APPLICATION
OF
MODIFICATION.—Such 
modification shall apply to any use of geothermal 
steam and any associated geothermal resources to 
which the amendment applies that occurs after the 
date of that application. 
(3) CONSULTATION.—The Secretary— 
(A) shall consult with the State and local 
governments affected by any proposed changes 
in lease royalty terms under this subsection; 
and 
(B) may establish a gross proceeds per-
centage within the range specified in the 
amendment made by subsection (a)(1) and with 
the concurrence of the lessee and the State.
112 
SEC. 215. GEOTHERMAL LEASING AND PERMITTING ON 
FEDERAL LANDS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this section, the Secretary of the 
Interior and the Secretary of Agriculture shall enter into 
and submit to Congress a memorandum of understanding 
in accordance with this section regarding leasing and per-
mitting for geothermal development of public lands and 
National Forest System lands under their respective juris-
dictions. 
(b) LEASE AND PERMIT APPLICATIONS.—The memo-
randum of understanding shall— 
(1) identify areas with geothermal potential on 
lands included in the National Forest System and, 
when necessary, require review of management plans 
to consider leasing under the Geothermal Steam Act 
of 1970 (30 U.S.C. 1001 et seq.) as a land use; and 
(2) establish an administrative procedure for 
processing geothermal lease applications, including 
lines of authority, steps in application processing, 
and time limits for application procession. 
(c) DATA RETRIEVAL SYSTEM.—The memorandum 
of understanding shall establish a joint data retrieval sys-
tem that is capable of tracking lease and permit applica-
tions and providing to the applicant information as to 
their status within the Departments of the Interior and
113 
Agriculture, including an estimate of the time required for 
administrative action. 
SEC. 216. REVIEW AND REPORT TO CONGRESS. 
The Secretary of the Interior shall promptly review 
and report to Congress not later than 3 years after the 
date of the enactment of this Act regarding the status of 
all withdrawals from leasing under the Geothermal Steam 
Act of 1970 (30 U.S.C. 1001 et seq.) of Federal lands, 
specifying for each such area whether the basis for such 
withdrawal still applies. 
SEC. 217. REIMBURSEMENT FOR COSTS OF NEPA ANAL-
YSES, DOCUMENTATION, AND STUDIES. 
(a) IN GENERAL.—The Geothermal Steam Act of 
1970 (30 U.S.C. 1001 et seq.) is amended by adding at 
the end the following: 
‘‘SEC. 30. REIMBURSEMENT FOR COSTS OF CERTAIN ANAL-
YSES, DOCUMENTATION, AND STUDIES. 
‘‘(a) IN GENERAL.—The Secretary of the Interior 
may reimburse a person that is a lessee, operator, oper-
ating rights owner, or applicant for any lease under this 
Act for reasonable amounts paid by the person for prepa-
ration for the Secretary by a contractor or other person 
selected by the Secretary of any project-level analysis, doc-
umentation, or related study required pursuant to the Na-
114 
tional Environmental Policy Act of 1969 (42 U.S.C. 4321 
et seq.) with respect to the lease. 
‘‘(b) CONDITIONS.—The Secretary may provide reim-
bursement under subsection (a) only if— 
‘‘(1) adequate funding to enable the Secretary 
to timely prepare the analysis, documentation, or re-
lated study is not appropriated; 
‘‘(2) the person paid the costs voluntarily; 
‘‘(3) the person maintains records of its costs 
in accordance with regulations issued by the Sec-
retary; 
‘‘(4) the reimbursement is in the form of a re-
duction in the Federal share of the royalty required 
to be paid for the lease for which the analysis, docu-
mentation, or related study is conducted, and is 
agreed to by the Secretary and the person reim-
bursed prior to commencing the analysis, docu-
mentation, or related study; and 
‘‘(5) the agreement required under paragraph 
(4) contains provisions— 
‘‘(A) reducing royalties owed on lease pro-
duction based on market prices; 
‘‘(B) stipulating an automatic termination 
of the royalty reduction upon recovery of docu-
mented costs; and
115 
‘‘(C) providing a process by which the les-
see may seek reimbursement for circumstances 
in which production from the specified lease is 
not possible.’’. 
(b) APPLICATION.—The amendment made by this 
section shall apply with respect to an analysis, documenta-
tion, or a related study conducted on or after the date 
of enactment of this Act for any lease entered into before, 
on, or after the date of enactment of this Act. 
(c) DEADLINE FOR REGULATIONS.—The Secretary 
shall issue regulations implementing the amendment made 
by this section by not later than 1 year after the date 
of enactment of this Act. 
SEC. 218. ASSESSMENT OF GEOTHERMAL ENERGY POTEN-
TIAL. 
The Secretary of Interior, acting through the Direc-
tor of the United States Geological Survey and in coopera-
tion with the States, shall update the 1978 Assessment 
of Geothermal Resources, and submit that updated assess-
ment to Congress— 
(1) not later than 3 years after the date of en-
actment of this Act; and 
(2) thereafter as the availability of data and de-
velopments in technology warrant.
116 
SEC. 219. COOPERATIVE OR UNIT PLANS. 
Section 18 of the Geothermal Steam Act of 1970 (30 
U.S.C. 1017) is amended to read as follows: 
‘‘SEC. 18. UNIT AND COMMUNITIZATION AGREEMENTS. 
‘‘(a) ADOPTION OF UNITS BY LESSEES.— 
‘‘(1) IN GENERAL.—For the purpose of more 
properly conserving the natural resources of any 
geothermal reservoir, field, or like area, or any part 
thereof (whether or not any part of the geothermal 
field, or like area, is then subject to any Unit Agree-
ment (cooperative plan of development or oper-
ation)), lessees thereof and their representatives may 
unite with each other, or jointly or separately with 
others, in collectively adopting and operating under 
a Unit Agreement for such field, or like area, or any 
part thereof including direct use resources, if deter-
mined and certified by the Secretary to be necessary 
or advisable in the public interest. A majority inter-
est of owners of any single lease shall have the au-
thority to commit that lease to a Unit Agreement. 
The Secretary of the Interior may also initiate the 
formation of a Unit Agreement if in the public inter-
est. 
‘‘(2) MODIFICATION OF LEASE REQUIREMENTS 
BY SECRETARY.—The Secretary may, in the discre-
tion of the Secretary, and with the consent of the
117 
holders of leases involved, establish, alter, change, or 
revoke rates of operations (including drilling, oper-
ations, production, and other requirements) of such 
leases and make conditions with reference to such 
leases, with the consent of the lessees, in connection 
with the creation and operation of any such Unit 
Agreement as the Secretary may deem necessary or 
proper to secure the proper protection of the public 
interest. Leases with unlike lease terms or royalty 
rates do not need to be modified to be in the same 
unit. 
‘‘(b) REQUIREMENT
OF
PLANS
UNDER
NEW 
LEASES.—The Secretary— 
‘‘(1) may provide that geothermal leases issued 
under this Act shall contain a provision requiring 
the lessee to operate under such a reasonable Unit 
Agreement; and 
‘‘(2) may prescribe such an Agreement under 
which such lessee shall operate, which shall ade-
quately protect the rights of all parties in interest, 
including the United States. 
‘‘(c) MODIFICATION OF RATE OF PROSPECTING, DE-
VELOPMENT, AND PRODUCTION.—The Secretary may re-
quire that any Agreement authorized by this section that 
applies to lands owned by the United States contain a pro-
118 
vision under which authority is vested in the Secretary, 
or any person, committee, or State or Federal officer or 
agency as may be designated in the Agreement to alter 
or modify from time to time the rate of prospecting and 
development and the quantity and rate of production 
under such an Agreement. 
‘‘(d) EXCLUSION FROM DETERMINATION OF HOLD-
ING OR CONTROL.—Any lands that are subject to any 
Agreement approved or prescribed by the Secretary under 
this section shall not be considered in determining hold-
ings or control under any provision of this Act. 
‘‘(e) POOLING
OF CERTAIN LANDS.—If separate 
tracts of lands cannot be independently developed and op-
erated to use geothermal steam and associated geothermal 
resources pursuant to any section of this Act— 
‘‘(1) such lands, or a portion thereof, may be 
pooled with other lands, whether or not owned by 
the United States, for purposes of development and 
operation under a Communitization Agreement pro-
viding for an apportionment of production or royal-
ties among the separate tracts of land comprising 
the production unit, if such pooling is determined by 
the Secretary to be in the public interest; and 
‘‘(2) operation or production pursuant to such 
an Agreement shall be treated as operation or pro-
119 
duction with respect to each tract of land that is 
subject to the agreement. 
‘‘(f) UNIT AGREEMENT REVIEW.—No more than 5 
years after approval of any cooperative or Unit Agreement 
and at least every 5 years thereafter, the Secretary shall 
review each such Agreement and, after notice and oppor-
tunity for comment, eliminate from inclusion in such 
Agreement any lands that the Secretary determines are 
not reasonably necessary for Unit operations under the 
Agreement. Such elimination shall be based on scientific 
evidence, and shall occur only if it is determined by the 
Secretary to be for the purpose of conserving and properly 
managing the geothermal resource. Any land so eliminated 
shall be eligible for an extension under subsection (g) of 
section 6 if it meets the requirements for such an exten-
sion. 
‘‘(g) DRILLING
OR DEVELOPMENT CONTRACTS.— 
The Secretary may, on such conditions as the Secretary 
may prescribe, approve drilling or development contracts 
made by 1 or more lessees of geothermal leases, with 1 
or more persons, associations, or corporations if, in the 
discretion of the Secretary, the conservation of natural re-
sources or the public convenience or necessity may require 
or the interests of the United States may be best served 
thereby. All leases operated under such approved drilling
120 
or development contracts, and interests thereunder, shall 
be excepted in determining holdings or control under sec-
tion 7. 
‘‘(h) COORDINATION WITH STATE GOVERNMENTS.— 
The Secretary shall coordinate unitization and pooling ac-
tivities with the appropriate State agencies and shall en-
sure that State leases included in any unitization or pool-
ing arrangement are treated equally with Federal leases.’’. 
SEC. 220. ROYALTY ON BYPRODUCTS. 
Section 5 of the Geothermal Steam Act of 1970 (30 
U.S.C. 1004) is further amended in subsection (a) by 
striking paragraph (2) and inserting the following: 
‘‘(2) a royalty on any byproduct that is a min-
eral named in the first section of the Mineral Leas-
ing Act (30 U.S.C. 181), and that is derived from 
production under the lease, at the rate of the royalty 
that applies under that Act to production of such 
mineral under a lease under that Act;’’. 
SEC. 221. REPEAL OF AUTHORITIES OF SECRETARY TO RE-
ADJUST TERMS, CONDITIONS, RENTALS, AND 
ROYALTIES. 
Section 8 of the Geothermal Steam Act of 1970 (30 
U.S.C. 1007) is amended by repealing subsection (b), and 
by redesignating subsection (c) as subsection (b).
121 
SEC. 222. CREDITING OF RENTAL TOWARD ROYALTY. 
Section 5 of the Geothermal Steam Act of 1970 (30 
U.S.C. 1004) is further amended— 
(1) in subsection (a)(2) by inserting ‘‘and’’ 
after the semicolon at the end; 
(2) in subsection (a)(3) by striking ‘‘; and’’ and 
inserting a period; 
(3) by striking paragraph (4) of subsection (a); 
and 
(4) by adding at the end the following: 
‘‘(e) CREDITING OF RENTAL TOWARD ROYALTY.— 
Any annual rental under this section that is paid with re-
spect to a lease before the first day of the year for which 
the annual rental is owed shall be credited to the amount 
of royalty that is required to be paid under the lease for 
that year.’’. 
SEC. 223. LEASE DURATION AND WORK COMMITMENT RE-
QUIREMENTS. 
Section 6 of the Geothermal Steam Act of 1970 (30 
U.S.C. 1005) is amended— 
(1) by striking so much as precedes subsection 
(c), and striking subsections (e), (g), (h), (i), and 
(j); 
(2) by redesignating subsections (c), (d), and 
(f) in order as subsections (g), (h), and (i); and
128 
commercial production under a lease is achieved, 
production ceases for any cause the lease shall re-
main in full force and effect— 
‘‘(A) during the 1-year period beginning on 
the date production ceases; and 
‘‘(B) after such period if, and so long as, 
the lessee commences and continues diligently 
and in good faith until such production is re-
sumed the steps, operations, or procedures nec-
essary to cause a resumption of such produc-
tion. 
‘‘(2) If production of heat or energy under a 
geothermal lease is suspended after the date of any 
such production for which royalty is required under 
subsection (a) and the terms of paragraph (1) are 
not met, the Secretary shall require the lessee, until 
the end of such suspension, to pay royalty in ad-
vance at the monthly pro-rata rate of the average 
annual rate at which such royalty was paid each 
year in the 5-year-period preceding the date of sus-
pension. 
‘‘(3) Paragraph (2) shall not apply if the sus-
pension is required or otherwise caused by the Sec-
retary, the Secretary of a military department, a 
State or local government, or a force majeure.’’.
731 
conducted a proceeding to consider implementation 
of the standard concerned (or a comparable stand-
ard) for such utility within the previous 3 years; or 
‘‘(3) the State legislature has voted on the im-
plementation of such standard (or a comparable 
standard) for such utility within the previous 3 
years.’’. 
(2) CROSS REFERENCE.—Section 124 of such 
Act (16 U.S.C. 2634) is amended by adding the fol-
lowing at the end thereof: ‘‘In the case of the stand-
ard established by paragraph (14) of section 111(d), 
the reference contained in this subsection to the date 
of enactment of this Act shall be deemed to be a ref-
erence to the date of enactment of such paragraph 
(14).’’. 
SEC. 1253. COGENERATION AND SMALL POWER PRODUC-
TION PURCHASE AND SALE REQUIREMENTS. 
(a) TERMINATION OF MANDATORY PURCHASE AND 
SALE REQUIREMENTS.—Section 210 of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 824a–3) is 
amended by adding at the end the following: 
‘‘(m) TERMINATION OF MANDATORY PURCHASE AND 
SALE REQUIREMENTS.— 
‘‘(1) OBLIGATION
TO
PURCHASE.—After the 
date of enactment of this subsection, no electric util-