(3) by adding at the end the following new para-
graphs: 
‘‘(4) The expenditure of financial assistance provided 
under this part for labor, weatherization materials, and re-
lated matters for a renewable energy system shall not exceed 
an average of $3,000 per dwelling unit. 
‘‘(5)(A) The Secretary shall by regulations— 
‘‘(i) establish the criteria which are to be used in 
prescribing performance and quality standards under 
paragraph (6)(A)(ii) or in specifying any form of re-
newable energy under paragraph (6)(A)(i)(I); and 
‘‘(ii) establish a procedure under which a manu-
facturer of an item may request the Secretary to cer-
tify that the item will be treated, for purposes of this 
paragraph, as a renewable energy system. 
‘‘(B) The Secretary shall make a final determination 
with respect to any request filed under subparagraph 
(A)(ii) within 1 year after the filing of the request, together 
with any information required to be filed with such request 
under subparagraph (A)(ii). 
‘‘(C) Each month the Secretary shall publish a report 
of any request under subparagraph (A)(ii) which has been 
denied during the preceding month and the reasons for the 
denial.
‘‘(D) The Secretary shall not specify any form of re-
newable energy under paragraph (6)(A)(i)(I) unless the 
Secretary determines that— 
‘‘(i) there will be a reduction in oil or natural 
gas consumption as a result of such specification; 
‘‘(ii) such specification will not result in an in-
creased use of any item which is known to be, or rea-
sonably suspected to be, environmentally hazardous or 
a threat to public health or safety; and 
‘‘(iii) available Federal subsidies do not make 
such specification unnecessary or inappropriate (in 
the light of the most advantageous allocation of eco-
nomic resources). 
‘‘(6) In this subsection— 
‘‘(A) the term ‘renewable energy system’ means a 
system which— 
‘‘(i) when installed in connection with a 
dwelling, transmits or uses— 
‘‘(I) solar energy, energy derived from 
the geothermal deposits, energy derived from 
biomass, or any other form of renewable en-
ergy which the Secretary specifies by regu-
lations, for the purpose of heating or cooling 
such dwelling or providing hot water or 
electricity for use within such dwelling; or
‘‘(II) wind energy for nonbusiness resi-
dential purposes; 
‘‘(ii) meets the performance and quality 
standards (if any) which have been prescribed by 
the Secretary by regulations; 
‘‘(iii) in the case of a combustion rated sys-
tem, has a thermal efficiency rating of at least 
75 percent; and 
‘‘(iv) in the case of a solar system, has a 
thermal efficiency rating of at least 15 percent; 
and 
‘‘(B) the term ‘biomass’ means any organic mat-
ter that is available on a renewable or recurring 
basis, including agricultural crops and trees, wood 
and wood wastes and residues, plants (including 
aquatic plants), grasses, residues, fibers, and animal 
wastes, municipal wastes, and other waste mate-
rials.’’. 
(b) DISTRICT HEATING AND COOLING PROGRAMS.— 
Section 172 of the Energy Policy Act of 1992 (42 U.S.C. 
13451 note) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘and’’ at the end of para-
graph (3);
(B) by striking the period at the end of 
paragraph (4) and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(5) evaluate the use of renewable energy systems 
(as such term is defined in section 415(c) of the En-
ergy Conservation and Production Act (42 U.S.C. 
6865(c))) in residential buildings.’’; and 
(2) in subsection (b), by striking ‘‘this Act’’ and 
inserting ‘‘the Energy Policy Act of 2005’’. 
(c) DEFINITION OF BIOMASS.—Section 203(2) of the 
Biomass Energy and Alcohol Fuels Act of 1980 (42 U.S.C. 
8802(2)) is amended to read as follows: 
‘‘(2) The term ‘biomass’ means any organic mat-
ter that is available on a renewable or recurring 
basis, including agricultural crops and trees, wood 
and wood wastes and residues, plants (including 
aquatic plants), grasses, residues, fibers, and animal 
wastes, municipal wastes, and other waste mate-
rials.’’. 
(d) REBATE PROGRAM.— 
(1) ESTABLISHMENT.—The Secretary of Energy 
shall establish a program providing rebates for con-
sumers for expenditures made for the installation of
a renewable energy system in connection with a 
dwelling unit or small business. 
(2) AMOUNT
OF
REBATE.—Rebates provided 
under the program established under paragraph (1) 
shall be in an amount not to exceed the lesser of— 
(A) 25 percent of the expenditures described 
in paragraph (1) made by the consumer; or 
(B) $3,000. 
(3) DEFINITION.—For purposes of this sub-
section, the term ‘‘renewable energy system’’ has the 
meaning given that term in section 415(c)(6)(A) of 
the Energy Conservation and Production Act (42 
U.S.C. 6865(c)(6)(A)), as added by subsection (a)(3) 
of this section. 
(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to the Sec-
retary of Energy for carrying out this subsection, to 
remain available until expended— 
(A) $150,000,000 for fiscal year 2006; 
(B) $150,000,000 for fiscal year 2007; 
(C) $200,000,000 for fiscal year 2008; 
(D) $250,000,000 for fiscal year 2009; and 
(E) $250,000,000 for fiscal year 2010. 
(e) RENEWABLE FUEL INVENTORY.—Not later than 
180 days after the date of enactment of this Act, the Sec-
retary of Energy shall transmit to Congress a report con-
taining— 
(1) an inventory of renewable fuels available for 
consumers; and 
(2) a projection of future inventories of renew-
able fuels based on the incentives provided in this sec-
tion 
Subtitle C—Hydroelectric 
PART I—ALTERNATIVE CONDITIONS 
SEC. 231. ALTERNATIVE CONDITIONS AND FISHWAYS. 
(a) FEDERAL RESERVATIONS.—Section 4(e) of the 
Federal Power Act (16 U.S.C. 797(e)) is amended by insert-
ing after ‘‘adequate protection and utilization of such res-
ervation.’’ at the end of the first proviso the following: ‘‘The 
license applicant shall be entitled to a determination on the 
record, after opportunity for an expedited agency trial-type 
hearing of any disputed issues of material fact, with respect 
to such conditions. Such hearing may be conducted in ac-
cordance with procedures established by agency regulation 
in consultation with the Federal Energy Regulatory Com-
mission.’’. 
(b) FISHWAYS.—Section 18 of the Federal Power Act 
(16 U.S.C. 811) is amended by inserting after ‘‘and such 
fishways as may be prescribed by the Secretary of Com-
merce.’’ the following: ‘‘The license applicant shall be enti-
tled to a determination on the record, after opportunity for 
an expedited agency trial-type hearing of any disputed 
issues of material fact, with respect to such fishways. Such 
hearing may be conducted in accordance with procedures 
established by agency regulation in consultation with the 
Federal Energy Regulatory Commission.’’. 
(c) ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.— 
Part I of the Federal Power Act (16 U.S.C. 791a et seq.) 
is amended by adding the following new section at the end 
thereof: 
‘‘SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS. 
‘‘(a) ALTERNATIVE CONDITIONS.—(1) Whenever any 
person applies for a license for any project works within 
any reservation of the United States, and the Secretary of 
the department under whose supervision such reservation 
falls (referred to in this subsection as ‘the Secretary’) deems 
a condition to such license to be necessary under the first 
proviso of section 4(e), the license applicant may propose 
an alternative condition. 
‘‘(2) Notwithstanding the first proviso of section 4(e), 
the Secretary shall accept the proposed alternative condi-
tion referred to in paragraph (1), and the Commission shall 
include in the license such alternative condition, if the Sec-
retary determines, based on substantial evidence provided
by the license applicant or otherwise available to the Sec-
retary, that such alternative condition— 
‘‘(A) provides for the adequate protection and 
utilization of the reservation; and 
‘‘(B) will either— 
‘‘(i) cost less to implement; or 
‘‘(ii) result in improved operation of the 
project works for electricity production, 
as compared to the condition initially deemed nec-
essary by the Secretary. 
‘‘(3) The Secretary shall submit into the public record 
of the Commission proceeding with any condition under 
section 4(e) or alternative condition it accepts under this 
section, a written statement explaining the basis for such 
condition, and reason for not accepting any alternative con-
dition under this section. The written statement must dem-
onstrate that the Secretary gave equal consideration to the 
effects of the condition adopted and alternatives not accept-
ed on energy supply, distribution, cost, and use; flood con-
trol; navigation; water supply; and air quality (in addition 
to the preservation of other aspects of environmental qual-
ity); based on such information as may be available to the 
Secretary, including information voluntarily provided in 
a timely manner by the applicant and others. The Secretary 
shall also submit, together with the aforementioned written
statement, all studies, data, and other factual information 
available to the Secretary and relevant to the Secretary’s 
decision. 
‘‘(4) Nothing in this section shall prohibit other inter-
ested parties from proposing alternative conditions. 
‘‘(5) If the Secretary does not accept an applicant’s 
alternative condition under this section, and the Commis-
sion finds that the Secretary’s condition would be incon-
sistent with the purposes of this part, or other applicable 
law, the Commission may refer the dispute to the Commis-
sion’s Dispute Resolution Service. The Dispute Resolution 
Service shall consult with the Secretary and the Commis-
sion and issue a non-binding advisory within 90 days. The 
Secretary may accept the Dispute Resolution Service advi-
sory unless the Secretary finds that the recommendation 
will not provide for the adequate protection and utilization 
of the reservation. The Secretary shall submit the advisory 
and the Secretary’s final written determination into the 
record of the Commission’s proceeding. 
‘‘(b) ALTERNATIVE PRESCRIPTIONS.—(1) Whenever 
the Secretary of the Interior or the Secretary of Commerce 
prescribes a fishway under section 18, the license applicant 
or licensee may propose an alternative to such prescription 
to construct, maintain, or operate a fishway.
‘‘(2) Notwithstanding section 18, the Secretary of the 
Interior or the Secretary of Commerce, as appropriate, shall 
accept and prescribe, and the Commission shall require, the 
proposed alternative referred to in paragraph (1), if the 
Secretary of the appropriate department determines, based 
on substantial evidence provided by the licensee or otherwise 
available to the Secretary, that such alternative— 
‘‘(A) will be no less protective than the fishway 
initially prescribed by the Secretary; and 
‘‘(B) will either— 
‘‘(i) cost less to implement; or 
‘‘(ii) result in improved operation of the 
project works for electricity production, 
as compared to the fishway initially deemed necessary 
by the Secretary. 
‘‘(3) The Secretary concerned shall submit into the 
public record of the Commission proceeding with any pre-
scription under section 18 or alternative prescription it ac-
cepts under this section, a written statement explaining the 
basis for such prescription, and reason for not accepting 
any alternative prescription under this section. The written 
statement must demonstrate that the Secretary gave equal 
consideration to the effects of the condition adopted and al-
ternatives not accepted on energy supply, distribution, cost, 
and use; flood control; navigation; water supply; and air
quality (in addition to the preservation of other aspects of 
environmental quality); based on such information as may 
be available to the Secretary, including information volun-
tarily provided in a timely manner by the applicant and 
others. The Secretary shall also submit, together with the 
aforementioned written statement, all studies, data, and 
other factual information available to the Secretary and rel-
evant to the Secretary’s decision. 
‘‘(4) Nothing in this section shall prohibit other inter-
ested parties from proposing alternative prescriptions. 
‘‘(5) If the Secretary concerned does not accept an ap-
plicant’s alternative prescription under this section, and 
the Commission finds that the Secretary’s prescription 
would be inconsistent with the purposes of this part, or 
other applicable law, the Commission may refer the dispute 
to the Commission’s Dispute Resolution Service. The Dis-
pute Resolution Service shall consult with the Secretary and 
the Commission and issue a non-binding advisory within 
90 days. The Secretary may accept the Dispute Resolution 
Service advisory unless the Secretary finds that the rec-
ommendation will be less protective than the fishway ini-
tially prescribed by the Secretary. The Secretary shall sub-
mit the advisory and the Secretary’s final written deter-
mination into the record of the Commission’s proceeding.’’.
PART II—ADDITIONAL HYDROPOWER 
SEC. 241. HYDROELECTRIC PRODUCTION INCENTIVES. 
(a) INCENTIVE PAYMENTS.—For electric energy gen-
erated and sold by a qualified hydroelectric facility during 
the incentive period, the Secretary of Energy (referred to 
in this section as the ‘‘Secretary’’) shall make, subject to 
the availability of appropriations, incentive payments to 
the owner or operator of such facility. The amount of such 
payment made to any such owner or operator shall be as 
determined under subsection (e) of this section. Payments 
under this section may only be made upon receipt by the 
Secretary of an incentive payment application which estab-
lishes that the applicant is eligible to receive such payment 
and which satisfies such other requirements as the Secretary 
deems necessary. Such application shall be in such form, 
and shall be submitted at such time, as the Secretary shall 
establish. 
(b) DEFINITIONS.—For purposes of this section: 
(1) QUALIFIED HYDROELECTRIC FACILITY.—The 
term ‘‘qualified hydroelectric facility’’ means a tur-
bine or other generating device owned or solely oper-
ated by a non-Federal entity which generates hydro-
electric energy for sale and which is added to an ex-
isting dam or conduit. 
(2) EXISTING DAM OR CONDUIT.—The term ‘‘ex-
isting dam or conduit’’ means any dam or conduit
the construction of which was completed before the 
date of the enactment of this section and which does 
not require any construction or enlargement of im-
poundment or diversion structures (other than repair 
or reconstruction) in connection with the installation 
of a turbine or other generating device. 
(3) CONDUIT.—The term ‘‘conduit’’ has the same 
meaning as when used in section 30(a)(2) of the Fed-
eral Power Act (16 U.S.C. 823a(a)(2)). 
The terms defined in this subsection shall apply without 
regard to the hydroelectric kilowatt capacity of the facility 
concerned, without regard to whether the facility uses a dam 
owned by a governmental or nongovernmental entity, and 
without regard to whether the facility begins operation on 
or after the date of the enactment of this section. 
(c) ELIGIBILITY WINDOW.—Payments may be made 
under this section only for electric energy generated from 
a qualified hydroelectric facility which begins operation 
during the period of 10 fiscal years beginning with the first 
full fiscal year occurring after the date of enactment of this 
subtitle. 
(d) INCENTIVE PERIOD.—A qualified hydroelectric fa-
cility may receive payments under this section for a period 
of 10 fiscal years (referred to in this section as the ‘‘incen-
tive period’’). Such period shall begin with the fiscal year
in which electric energy generated from the facility is first 
eligible for such payments. 
(e) AMOUNT OF PAYMENT.— 
(1) IN GENERAL.—Payments made by the Sec-
retary under this section to the owner or operator of 
a qualified hydroelectric facility shall be based on the 
number of kilowatt hours of hydroelectric energy gen-
erated by the facility during the incentive period. For 
any such facility, the amount of such payment shall 
be 1.8 cents per kilowatt hour (adjusted as provided 
in paragraph (2)), subject to the availability of ap-
propriations under subsection (g), except that no fa-
cility may receive more than $750,000 in 1 calendar 
year. 
(2) ADJUSTMENTS.—The amount of the payment 
made to any person under this section as provided in 
paragraph (1) shall be adjusted for inflation for each 
fiscal year beginning after calendar year 2005 in the 
same manner as provided in the provisions of section 
29(d)(2)(B) of the Internal Revenue Code of 1986, ex-
cept that in applying such provisions the calendar 
year 2005 shall be substituted for calendar year 1979. 
(f) SUNSET.—No payment may be made under this 
section to any qualified hydroelectric facility after the expi-
ration of the period of 20 fiscal years beginning with the
100 
first full fiscal year occurring after the date of enactment 
of this subtitle, and no payment may be made under this 
section to any such facility after a payment has been made 
with respect to such facility for a period of 10 fiscal years. 
(g) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to the Secretary to carry out 
the purposes of this section $10,000,000 for each of the fiscal 
years 2006 through 2015. 
SEC. 242. HYDROELECTRIC EFFICIENCY IMPROVEMENT. 
(a) INCENTIVE PAYMENTS.—The Secretary of Energy 
shall make incentive payments to the owners or operators 
of hydroelectric facilities at existing dams to be used to 
make capital improvements in the facilities that are di-
rectly related to improving the efficiency of such facilities 
by at least 3 percent. 
(b) LIMITATIONS.—Incentive payments under this sec-
tion shall not exceed 10 percent of the costs of the capital 
improvement concerned and not more than 1 payment may 
be made with respect to improvements at a single facility. 
No payment in excess of $750,000 may be made with respect 
to improvements at a single facility. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to carry out this section not 
more than $10,000,000 for each of the fiscal years 2006 
through 2015.
101 
SEC. 243. SMALL HYDROELECTRIC POWER PROJECTS. 
Section 408(a)(6) of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 2708(a)(6)) is amended by 
striking ‘‘April 20, 1977’’ and inserting ‘‘March 4, 2003’’. 
SEC. 244. INCREASED HYDROELECTRIC GENERATION AT EX-
ISTING FEDERAL FACILITIES. 
(a) IN GENERAL.—The Secretary of the Interior and 
the Secretary of Energy, in consultation with the Secretary 
of the Army, shall jointly conduct a study of the potential 
for increasing electric power production capability at feder-
ally owned or operated water regulation, storage, and con-
veyance facilities. 
(b) CONTENT.—The study under this section shall in-
clude identification and description in detail of each facil-
ity that is capable, with or without modification, of pro-
ducing additional hydroelectric power, including esti-
mation of the existing potential for the facility to generate 
hydroelectric power. 
(c) REPORT.—The Secretaries shall submit to the Com-
mittees on Energy and Commerce, Resources, and Trans-
portation and Infrastructure of the House of Representa-
tives and the Committee on Energy and Natural Resources 
of the Senate a report on the findings, conclusions, and rec-
ommendations of the study under this section by not later 
than 18 months after the date of the enactment of this Act. 
The report shall include each of the following:
102 
(1) The identifications, descriptions, and esti-
mations referred to in subsection (b). 
(2) A description of activities currently con-
ducted or considered, or that could be considered, to 
produce additional hydroelectric power from each 
identified facility. 
(3) A summary of prior actions taken by the 
Secretaries to produce additional hydroelectric power 
from each identified facility. 
(4) The costs to install, upgrade, or modify 
equipment or take other actions to produce additional 
hydroelectric power from each identified facility and 
the level of Federal power customer involvement in the 
determination of such costs. 
(5) The benefits that would be achieved by such 
installation, upgrade, modification, or other action, 
including quantified estimates of any additional en-
ergy or capacity from each facility identified under 
subsection (b). 
(6) A description of actions that are planned, 
underway, or might reasonably be considered to in-
crease hydroelectric power production by replacing 
turbine runners, by performing generator upgrades or 
rewinds, or construction of pumped storage facilities.
103 
(7) The impact of increased hydroelectric power 
production on irrigation, fish, wildlife, Indian tribes, 
river health, water quality, navigation, recreation, 
fishing, and flood control. 
(8) Any additional recommendations to increase 
hydroelectric power production from, and reduce costs 
and improve efficiency at, federally owned or oper-
ated water regulation, storage, and conveyance facili-
ties. 
SEC. 245. SHIFT OF PROJECT LOADS TO OFF-PEAK PERI-
ODS. 
(a) IN GENERAL.—The Secretary of the Interior 
shall— 
(1) review electric power consumption by Bureau 
of Reclamation facilities for water pumping purposes; 
and 
(2) make such adjustments in such pumping as 
possible to minimize the amount of electric power 
consumed for such pumping during periods of peak 
electric power consumption, including by performing 
as much of such pumping as possible during off-peak 
hours at night. 
(b) CONSENT OF AFFECTED IRRIGATION CUSTOMERS 
REQUIRED.—The Secretary may not under this section 
make any adjustment in pumping at a facility without the
104 
consent of each person that has contracted with the United 
States for delivery of water from the facility for use for irri-
gation and that would be affected by such adjustment. 
(c) EXISTING OBLIGATIONS NOT AFFECTED.—This sec-
tion shall not be construed to affect any existing obligation 
of the Secretary to provide electric power, water, or other 
benefits from Bureau of Reclamation facilities, including 
recreational releases. 
TITLE III—OIL AND GAS 
Subtitle A—Petroleum Reserve and 
Home Heating Oil 
SEC. 301. PERMANENT AUTHORITY TO OPERATE THE STRA-
TEGIC PETROLEUM RESERVE AND OTHER EN-
ERGY PROGRAMS. 
(a) AMENDMENT TO TITLE I OF THE ENERGY POLICY 
AND CONSERVATION ACT.—Title I of the Energy Policy and 
Conservation Act (42 U.S.C. 6211 et seq.) is amended— 
(1) by striking section 166 (42 U.S.C. 6246) and 
inserting the following: 
‘‘AUTHORIZATION OF APPROPRIATIONS 
‘‘SEC. 166. There are authorized to be appropriated 
to the Secretary such sums as may be necessary to carry 
out this part and part D, to remain available until ex-
pended.’’; 
(2) by striking section 186 (42 U.S.C. 6250e); 
and
105 
(3) by striking part E (42 U.S.C. 6251; relating 
to the expiration of title I of the Act). 
(b) AMENDMENT TO TITLE II OF THE ENERGY POLICY 
AND CONSERVATION ACT.—Title II of the Energy Policy 
and Conservation Act (42 U.S.C. 6271 et seq.) is amend-
ed— 
(1) by inserting before section 273 (42 U.S.C. 
6283) the following: 
‘‘PART C—SUMMER FILL AND FUEL BUDGETING 
PROGRAMS’’; 
(2) by striking section 273(e) (42 U.S.C. 6283(e); 
relating to the expiration of summer fill and fuel 
budgeting programs); and 
(3) by striking part D (42 U.S.C. 6285; relating 
to the expiration of title II of the Act). 
(c) TECHNICAL AMENDMENTS.—The table of contents 
for the Energy Policy and Conservation Act is amended— 
(1) by amending part D of title I to read as fol-
lows: 
‘‘PART D—NORTHEAST HOME HEATING OIL RESERVE 
‘‘Sec. 181. Establishment. 
‘‘Sec. 182. Authority. 
‘‘Sec. 183. Conditions for release; plan. 
‘‘Sec. 184. Northeast Home Heating Oil Reserve Account. 
‘‘Sec. 185. Exemptions.’’; 
(2) by amending the items relating to part C of 
title II to read as follows:
106 
‘‘PART C—SUMMER FILL AND FUEL BUDGETING PROGRAMS 
‘‘Sec. 273. Summer fill and fuel budgeting programs.’’ 
(3) by striking the items relating to part D of 
title II. 
(d) AMENDMENT TO THE ENERGY POLICY AND CON-
SERVATION ACT.—Section 183(b)(1) of the Energy Policy 
and Conservation Act (42 U.S.C. 6250(b)(1)) is amended 
by striking all after ‘‘increases’’ through ‘‘mid-October 
through March’’ and inserting ‘‘by more than 60 percent 
over its 5-year rolling average for the months of mid-Octo-
ber through March (considered as a heating season aver-
age)’’. 
(e) FILL STRATEGIC PETROLEUM RESERVE TO CAPAC-
ITY.—The Secretary of Energy shall, as expeditiously as 
practicable, acquire petroleum in amounts sufficient to fill 
the Strategic Petroleum Reserve to the 1,000,000,000 barrel 
capacity authorized under section 154(a) of the Energy Pol-
icy and Conservation Act (42 U.S.C. 6234(a)), consistent 
with the provisions of sections 159 and 160 of such Act (42 
U.S.C. 6239, 6240). 
SEC. 302. NATIONAL OILHEAT RESEARCH ALLIANCE. 
Section 713 of the Energy Act of 2000 (42 U.S.C. 6201 
note) is amended by striking ‘‘4’’ and inserting ‘‘9’’. 
SEC. 303. SITE SELECTION. 
Not later than 1 year after the date of enactment of 
this Act, the Secretary of Energy shall complete a pro-
107 
ceeding to select, from sites that the Secretary has pre-
viously studied, sites necessary to enable acquisition by the 
Secretary of the full authorized volume of the Strategic Pe-
troleum Reserve. 
SEC. 304. SUSPENSION OF STRATEGIC PETROLEUM RE-
SERVE DELIVERIES. 
The Secretary of Energy shall suspend deliveries of 
royalty-in-kind oil to the Strategic Petroleum Reserve until 
the price of oil falls below $40 per barrel for 2 consecutive 
weeks on the New York Mercantile Exchange. 
Subtitle B—Production Incentives 
SEC. 320. LIQUEFACTION OR GASIFICATION NATURAL GAS 
TERMINALS. 
(a) SCOPE OF NATURAL GAS ACT.—Section 1(b) of the 
Natural Gas Act (15 U.S.C. 717(b)) is amended by insert-
ing ‘‘and to the importation or exportation of natural gas 
in foreign commerce and to persons engaged in such impor-
tation or exportation,’’ after ‘‘such transportation or sale,’’. 
(b) DEFINITION.—Section 2 of the Natural Gas Act (15 
U.S.C. 717a) is amended by adding at the end the following 
new paragraph: 
‘‘(11) ‘Liquefaction or gasification natural gas 
terminal’ includes all facilities located onshore or in 
State waters that are used to receive, unload, load, 
store, transport, gasify, liquefy, or process natural gas
108 
that is imported to the United States from a foreign 
country, exported to a foreign country from the 
United States, or transported in interstate commerce 
by waterborne tanker, but does not include— 
‘‘(A) waterborne tankers used to deliver nat-
ural gas to or from any such facility; or 
‘‘(B) any pipeline or storage facility subject 
to the jurisdiction of the Commission under sec-
tion 7.’’. 
(c) AUTHORIZATION FOR CONSTRUCTION, EXPANSION, 
OR OPERATION OF LIQUEFACTION OR GASIFICATION NAT-
URAL GAS TERMINALS.—(1) The title for section 3 of the 
Natural Gas Act (15 U.S.C. 717b) is amended by inserting 
‘‘; LIQUEFACTION OR GASIFICATION NATURAL GAS TERMI-
NALS’’ after ‘‘EXPORTATION OR IMPORTATION OF NATURAL 
GAS’’. 
(2) Section 3 of the Natural Gas Act (15 U.S.C. 717b) 
is amended by adding at the end the following: 
‘‘(d) AUTHORIZATION
FOR CONSTRUCTION, EXPAN-
SION, OR OPERATION OF LIQUEFACTION OR GASIFICATION 
NATURAL GAS TERMINALS.— 
‘‘(1) COMMISSION AUTHORIZATION REQUIRED.— 
No person shall construct, expand, or operate a lique-
faction or gasification natural gas terminal without
109 
an order from the Commission authorizing such per-
son to do so. 
‘‘(2) AUTHORIZATION PROCEDURES.— 
‘‘(A) NOTICE AND HEARING.—Upon the fil-
ing of any application to construct, expand, or 
operate a liquefaction or gasification natural gas 
terminal, the Commission shall— 
‘‘(i) set the matter for hearing; 
‘‘(ii) give reasonable notice of the hear-
ing to all interested persons, including the 
State commission of the State in which the 
liquefaction or gasification natural gas ter-
minal is located; 
‘‘(iii) decide the matter in accordance 
with this subsection; and 
‘‘(iv) issue or deny the appropriate 
order accordingly. 
‘‘(B) DESIGNATION AS LEAD AGENCY.— 
‘‘(i) IN
GENERAL.—The Commission 
shall act as the lead agency for the purposes 
of coordinating all applicable Federal au-
thorizations and for the purposes of com-
plying with the National Environmental 
Policy Act of 1969 (42 U.S.C. 4312 et seq.)
110 
for a liquefaction or gasification natural 
gas terminal. 
‘‘(ii) OTHER AGENCIES.—Each Federal 
agency considering an aspect of the con-
struction, expansion, or operation of a liq-
uefaction or gasification natural gas ter-
minal shall cooperate with the Commission 
and comply with the deadlines established 
by the Commission. 
‘‘(C) SCHEDULE.— 
‘‘(i) COMMISSION AUTHORITY TO SET 
SCHEDULE.—The Commission shall estab-
lish a schedule for all Federal and State ad-
ministrative proceedings required under au-
thority of Federal law to construct, expand, 
or operate a liquefaction or gasification 
natural gas terminal. In establishing the 
schedule, the Commission shall— 
‘‘(I) ensure expeditious completion 
of all such proceedings; and 
‘‘(II) accommodate the applicable 
schedules established by Federal law for 
such proceedings. 
‘‘(ii) FAILURE TO MEET SCHEDULE.— 
If a Federal or State administrative agency
111 
does not complete a proceeding for an ap-
proval that is required before a person may 
construct, expand, or operate the lique-
faction or gasification natural gas terminal, 
in accordance with the schedule established 
by the Commission under this subpara-
graph, and if— 
‘‘(I) a determination has been 
made by the Court pursuant to section 
19(d) that such delay is unreasonable; 
and 
‘‘(II) the agency has failed to act 
on any remand by the Court within 
the deadline set by the Court, 
that approval may be conclusively presumed 
by the Commission. 
‘‘(D) EXCLUSIVE
RECORD.—The Commis-
sion shall, with the cooperation of Federal and 
State administrative agencies and officials, 
maintain a complete consolidated record of all 
decisions made or actions taken by the Commis-
sion or by a Federal administrative agency or 
officer (or State administrative agency or officer 
acting under delegated Federal authority) with 
respect to the construction, expansion, or oper-
112 
ation of a liquefaction or gasification natural 
gas terminal. Such record shall be the exclusive 
record for any Federal administrative proceeding 
that is an appeal or review of any such decision 
made or action taken. 
‘‘(E) STATE AND LOCAL SAFETY CONSIDER-
ATIONS.— 
‘‘(i) IN
GENERAL.—The Commission 
shall consult with the State commission of 
the State in which the liquefaction or gasifi-
cation natural gas terminal is located re-
garding State and local safety consider-
ations prior to issuing an order pursuant to 
this subsection and consistent with the 
schedule established under subparagraph 
(C). 
‘‘(ii) STATE
SAFETY
INSPECTIONS.— 
The State commission of the State in which 
a liquefaction or gasification natural gas 
terminal is located may, after the terminal 
is operational, conduct safety inspections 
with respect to the liquefaction or gasifi-
cation natural gas terminal if—
113 
‘‘(I) the State commission pro-
vides written notice to the Commission 
of its intention to do so; and 
‘‘(II) the inspections will be car-
ried out in conformance with Federal 
regulations and guidelines. 
Enforcement of any safety violation discov-
ered by a State commission pursuant to this 
clause shall be carried out by Federal offi-
cials. The Commission shall take appro-
priate action in response to a report of a 
violation not later that 90 days after receiv-
ing such report. 
‘‘(iii) STATE AND LOCAL SAFETY CON-
SIDERATIONS.—For the purposes of this 
subparagraph, State and local safety con-
siderations include— 
‘‘(I) the kind and use of the facil-
ity; 
‘‘(II) the existing and projected 
population and demographic charac-
teristics of the location; 
‘‘(III) the existing and proposed 
land use near the location;
114 
‘‘(IV) the natural and physical 
aspects of the location; 
‘‘(V) the medical, law enforce-
ment, and fire prevention capabilities 
near the location that can respond at 
the facility; and 
‘‘(VI) the feasibility of remote 
siting. 
‘‘(3) ISSUANCE OF COMMISSION ORDER.— 
‘‘(A) IN GENERAL.—The Commission shall 
issue an order authorizing, in whole or in part, 
the construction, expansion, or operation covered 
by the application to any qualified applicant— 
‘‘(i) unless the Commission finds such 
actions or operations will not be consistent 
with the public interest; and 
‘‘(ii) if the Commission has found that 
the applicant is— 
‘‘(I) able and willing to carry out 
the actions and operations proposed; 
and 
‘‘(II) willing to conform to the 
provisions of this Act and any require-
ments, rules, and regulations of the 
Commission set forth under this Act.
115 
‘‘(B) TERMS AND CONDITIONS.—The Com-
mission may by its order grant an application, 
in whole or in part, with such modification and 
upon such terms and conditions as the Commis-
sion may find necessary or appropriate. 
‘‘(C) LIMITATIONS ON TERMS AND CONDI-
TIONS TO COMMISSION ORDER.— 
‘‘(i) IN
GENERAL.—Any Commission 
order issued pursuant to this subsection be-
fore January 1, 2011, shall not be condi-
tioned on— 
‘‘(I) a requirement that the lique-
faction or gasification natural gas ter-
minal offer service to persons other 
than the person, or any affiliate there-
of, securing the order; or 
‘‘(II) any regulation of the lique-
faction or gasification natural gas ter-
minal’s rates, charges, terms, or condi-
tions of service. 
‘‘(ii) INAPPLICABLE TO TERMINAL EXIT 
PIPELINE.—Clause (i) shall not apply to 
any pipeline subject to the jurisdiction of 
the Commission under section 7 exiting a
116 
liquefaction or gasification natural gas ter-
minal. 
‘‘(iii) EXPANSION OF REGULATED TER-
MINAL.—An order issued under this para-
graph that relates to an expansion of an ex-
isting liquefaction or gasification natural 
gas terminal, where any portion of the ex-
isting terminal continues to be subject to 
Commission regulation of rates, charges, 
terms, or conditions of service, may not re-
sult in— 
‘‘(I) subsidization of the expan-
sion by regulated terminal users; 
‘‘(II) degradation of service to the 
regulated terminal users; or 
‘‘(III) 
undue 
discrimination 
against the regulated terminal users. 
‘‘(iv) 
EXPIRATION.—This 
subpara-
graph shall cease to have effect on January 
1, 2021. 
‘‘(4) DEFINITION.—For the purposes of this sub-
section, the term ‘Federal authorization’ means any 
authorization required under Federal law in order to 
construct, expand, or operate a liquefaction or gasifi-
cation natural gas terminal, including such permits,
117 
special use authorizations, certifications, opinions, or 
other approvals as may be required, whether issued by 
a Federal or State agency.’’. 
(d) JUDICIAL REVIEW.—Section 19 of the Natural Gas 
Act (15 U.S.C. 717r) is amended by adding at the end the 
following: 
‘‘(d) JUDICIAL REVIEW.— 
‘‘(1) IN GENERAL.—The United States Court of 
Appeals for the District of Columbia Circuit shall 
have original and exclusive jurisdiction over any civil 
action— 
‘‘(A) for review of any order, action, or fail-
ure to act of any Federal or State administrative 
agency to issue, condition, or deny any permit, 
license, concurrence, or approval required under 
Federal law for the construction, expansion, or 
operation of a liquefaction or gasification nat-
ural gas terminal; 
‘‘(B) alleging unreasonable delay, in meet-
ing 
a 
schedule 
established 
under 
section 
3(d)(2)(C) or otherwise, by any Federal or State 
administrative agency in entering an order or 
taking other action described in subparagraph 
(A); or
118 
‘‘(C) challenging any decision made or ac-
tion taken by the Commission under section 3(d). 
‘‘(2) COMMISSION ACTION.—For any action de-
scribed in this subsection, the Commission shall file 
with the Court the consolidated record maintained 
under section 3(d)(2)(D). 
‘‘(3) COURT ACTION.—If the Court finds under 
paragraph (1)(A) or (B) that an order, action, failure 
to act, or delay is inconsistent with applicable Fed-
eral law, and would prevent the construction, expan-
sion, or operation of a liquefaction or gasification 
natural gas terminal, the order or action shall be 
deemed to have been issued or taken, subject to any 
conditions established by the Federal or State admin-
istrative agency upon remand from the Court, such 
conditions to be consistent with the order of the Court. 
If the Court remands the order or action to the Fed-
eral or State agency, the Court shall set a reasonable 
deadline for the agency to act on remand. 
‘‘(4) UNREASONABLE DELAY.—For the purposes 
of paragraph (1)(B), the failure of an agency to issue 
a permit, license, concurrence, or approval within the 
later of—
119 
‘‘(A) 1 year after the date of filing of an ap-
plication for the permit, license, concurrence, or 
approval; or 
‘‘(B) 60 days after the date of issuance of 
the order under section 3(d), 
shall be considered unreasonable delay unless the 
Court, for good cause shown, determines otherwise. 
‘‘(5) EXPEDITED REVIEW.—The Court shall set 
any action brought under this subsection for expedited 
consideration.’’. 
SEC. 327. HYDRAULIC FRACTURING. 
Paragraph (1) of section 1421(d) of the Safe Drinking 
Water Act (42 U.S.C. 300h(d)) is amended to read as fol-
lows: 
‘‘(1) UNDERGROUND INJECTION.—The term ‘un-
derground injection’— 
‘‘(A) means the subsurface emplacement of 
fluids by well injection; and 
‘‘(B) excludes— 
‘‘(i) the underground injection of nat-
ural gas for purposes of storage; and 
‘‘(ii) the underground injection of 
fluids or propping agents pursuant to hy-
draulic fracturing operations related to oil 
or gas production activities.’’.
120 
SEC. 330. APPEALS RELATING TO PIPELINE CONSTRUCTION 
OR 
OFFSHORE 
MINERAL 
DEVELOPMENT 
PROJECTS. 
(a) AGENCY OF RECORD, PIPELINE CONSTRUCTION 
PROJECTS.—Any Federal administrative agency pro-
ceeding that is an appeal or review under section 319 of 
the Coastal Zone Management Act of 1972 (16 U.S.C. 
1465), as amended by this Act, related to Federal authority 
for an interstate natural gas pipeline construction project, 
including construction of natural gas storage and liquefied 
natural gas facilities, shall use as its exclusive record for 
all purposes the record compiled by the Federal Energy Reg-
ulatory Commission pursuant to the Commission’s pro-
ceeding under sections 3 and 7 of the Natural Gas Act (15 
U.S.C. 717b, 717f). 
(b) SENSE OF CONGRESS.—It is the sense of Congress 
that all Federal and State agencies with jurisdiction over 
interstate natural gas pipeline construction activities 
should coordinate their proceedings within the timeframes 
established by the Federal Energy Regulatory Commission 
when the Commission is acting under sections 3 and 7 of 
the Natural Gas Act (15 U.S.C. 717b, 717f) to determine 
whether a certificate of public convenience and necessity 
should be issued for a proposed interstate natural gas pipe-
line.
121 
(c) AGENCY OF RECORD, OFFSHORE MINERAL DEVEL-
OPMENT PROJECTS.—Any Federal administrative agency 
proceeding that is an appeal or review under section 319 
of the Coastal Zone Management Act of 1972 (16 U.S.C. 
1465), as amended by this Act, related to Federal authority 
for the permitting, approval, or other authorization of en-
ergy projects, including projects to explore, develop, or 
produce mineral resources in or underlying the outer Conti-
nental Shelf shall use as its exclusive record for all purposes 
(except for the filing of pleadings) the record compiled by 
the relevant Federal permitting agency. 
SEC. 333. NATURAL GAS MARKET TRANSPARENCY. 
The Natural Gas Act (15 U.S.C 717 et seq.) is amend-
ed— 
(1) by redesignating section 24 as section 25; 
and 
(2) by inserting after section 23 the following: 
‘‘SEC. 24. NATURAL GAS MARKET TRANSPARENCY. 
‘‘(a) AUTHORIZATION.—(1) Not later than 180 days 
after the date of enactment of the Energy Policy Act of 
2005, the Federal Energy Regulatory Commission shall 
issue rules directing all entities subject to the Commission’s 
jurisdiction as provided under this Act to timely report in-
formation about the availability and prices of natural gas
122 
sold at wholesale in interstate commerce to the Commission 
and price publishers. 
‘‘(2) The Commission shall evaluate the data for ade-
quate price transparency and accuracy. 
‘‘(3) Rules issued under this subsection requiring the 
reporting of information to the Commission that may be-
come publicly available shall be limited to aggregate data 
and transaction-specific data that are otherwise required 
by the Commission to be made public. 
‘‘(4) In exercising its authority under this section, the 
Commission shall not— 
‘‘(A) compete with, or displace from the market 
place, any price publisher; or 
‘‘(B) regulate price publishers or impose any re-
quirements on the publication of information. 
‘‘(b) TIMELY ENFORCEMENT.—No person shall be sub-
ject to any penalty under this section with respect to a vio-
lation occurring more than 3 years before the date on which 
the Federal Energy Regulatory Commission seeks to assess 
a penalty. 
‘‘(c) LIMITATION ON COMMISSION AUTHORITY.—(1) 
The Commission shall not condition access to interstate 
pipeline transportation upon the reporting requirements 
authorized under this section.
123 
‘‘(2) Natural gas sales by a producer that are attrib-
utable to volumes of natural gas produced by such producer 
shall not be subject to the rules issued pursuant to this sec-
tion. 
‘‘(3) The Commission shall not require natural gas 
producers, processors, or users who have a de minimis mar-
ket presence to participate in the reporting requirements 
provided in this section.’’. 
Subtitle C—Access to Federal Land 
SEC. 344. CONSULTATION REGARDING OIL AND GAS LEAS-
ING ON PUBLIC LAND. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this Act, the Secretary of the Interior 
and the Secretary of Agriculture shall enter into a memo-
randum of understanding regarding oil and gas leasing 
on— 
(1) public lands under the jurisdiction of the 
Secretary of the Interior; and 
(2) National Forest System lands under the ju-
risdiction of the Secretary of Agriculture. 
(b) CONTENTS.—The memorandum of understanding 
shall include provisions that— 
(1) establish administrative procedures and lines 
of authority that ensure timely processing of oil and 
gas lease applications, surface use plans of operation,
124 
and applications for permits to drill, including steps 
for processing surface use plans and applications for 
permits to drill consistent with the timelines estab-
lished by the amendment made by section 348; 
(2) eliminate duplication of effort by providing 
for coordination of planning and environmental com-
pliance efforts; and 
(3) ensure that lease stipulations are— 
(A) applied consistently; 
(B) coordinated between agencies; and 
(C) only as restrictive as necessary to pro-
tect the resource for which the stipulations are 
applied. 
(c) DATA RETRIEVAL SYSTEM.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the Secretary of the 
Interior and the Secretary of Agriculture shall estab-
lish a joint data retrieval system that is capable of— 
(A) tracking applications and formal re-
quests made in accordance with procedures of the 
Federal onshore oil and gas leasing program; 
and 
(B) providing information regarding the 
status of the applications and requests within the