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(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 
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SEC. 208. INSTALLATION OF PHOTOVOLTAIC SYSTEM. 
There is authorized to be appropriated to the General 
Services Administration to install a photovoltaic system, 
as set forth in the Sun Wall Design Project, for the head-
quarters building of the Department of Energy located at 
1000 Independence Avenue Southwest in the District of 
Columbia, commonly know as the Forrestal Building, 
$20,000,000 for fiscal year 2006. Such sums shall remain 
available until expended. 
SEC. 209. SUGAR CANE ETHANOL PILOT PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) PROGRAM.—The term ‘‘program’’ means 
the Sugar Cane Ethanol Pilot Program established 
by subsection (b). 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(b) ESTABLISHMENT.—There is established within 
the Department of Energy a program to be known as the 
‘‘Sugar Cane Ethanol Pilot Program’’. 
(c) PROJECT.— 
(1) IN GENERAL.—In carrying out the program, 
the Secretary shall establish a pilot project that is— 
(A) located in the State of Hawaii; and 
(B) designed to study the creation of eth-
anol from cane sugar.
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(2) REQUIREMENTS.—A pilot project described 
in paragraph (1) shall— 
(A) be limited to the production of ethanol 
in Hawaii in a way similar to the existing pro-
gram for the processing of corn for ethanol to 
show that the process can be applicable to cane 
sugar; 
(B) include information on how the scale 
of projection can be replicated once the sugar 
cane industry has site located and constructed 
ethanol production facilities; and 
(C) not last more than 3 years. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$8,000,000, to remain available until expended. 
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 in-
serting after ‘‘adequate protection and utilization of such 
reservation.’’ 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,
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with respect to such conditions. Such hearing may be con-
ducted in accordance with procedures established by agen-
cy regulation in consultation with the Federal Energy 
Regulatory Commission.’’. 
(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
PRESCRIP-
TIONS.—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 reserva-
tion falls (referred to in this subsection as ‘the Secretary’) 
deems a condition to such license to be necessary under
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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 Secretary determines, based on substantial evidence 
provided by the license applicant or otherwise available to 
the Secretary, 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 alter-
native condition under this section. The written statement 
must demonstrate that the Secretary gave equal consider-
ation to the effects of the condition adopted and alter-
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natives 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 
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
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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 appli-
cant or licensee may propose an alternative to such pre-
scription 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 re-
quire, the proposed alternative referred to in paragraph 
(1), if the Secretary of the appropriate department deter-
mines, based on substantial evidence provided by the li-
censee 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 nec-
essary by the Secretary. 
‘‘(3) The Secretary concerned shall submit into the 
public record of the Commission proceeding with any pre-
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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 accept-
ing 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 alternatives 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 in-
formation 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, to-
gether 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 prescriptions. 
‘‘(5) If the Secretary concerned does not accept an 
applicant’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 dis-
pute to the Commission’s Dispute Resolution Service. The 
Dispute Resolution Service shall consult with the Sec-
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retary and the Commission and issue a non-binding advi-
sory within 90 days. The Secretary may accept the Dis-
pute Resolution Service advisory unless the Secretary 
finds that the recommendation will be less protective than 
the fishway initially prescribed by the Secretary. The Sec-
retary shall submit the advisory and the Secretary’s final 
written determination 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 Sec-
retary deems necessary. Such application shall be in such 
form, and shall be submitted at such time, as the Sec-
retary shall establish.
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(b) DEFINITIONS.—For purposes of this section: 
(1) QUALIFIED
HYDROELECTRIC
FACILITY.— 
The term ‘‘qualified hydroelectric facility’’ means a 
turbine or other generating device owned or solely 
operated by a non-Federal entity which generates 
hydroelectric energy for sale and which is added to 
an existing dam or conduit. 
(2) EXISTING
DAM
OR
CONDUIT.—The term 
‘‘existing dam or conduit’’ means any dam or con-
duit 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 
impoundment or diversion structures (other than re-
pair or reconstruction) in connection with the instal-
lation 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 Federal 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 oper-
ation on or after the date of the enactment of this section.
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(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 
facility may receive payments under this section for a pe-
riod of 10 fiscal years (referred to in this section as the 
‘‘incentive 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 
generated 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 avail-
ability of appropriations under subsection (g), except 
that no facility may receive more than $750,000 in 
1 calendar year.
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(2) ADJUSTMENTS.—The amount of the pay-
ment made to any person under this section as pro-
vided 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 provi-
sions of section 29(d)(2)(B) of the Internal Revenue 
Code of 1986, except that in applying such provi-
sions 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 ex-
piration of the period of 20 fiscal years beginning with 
the first full fiscal year occurring after the date of enact-
ment 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 En-
ergy shall make incentive payments to the owners or oper-
ators of hydroelectric facilities at existing dams to be used
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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 
section shall not exceed 10 percent of the costs of the cap-
ital 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. 
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’’.
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TITLE III—OIL AND GAS— 
COMMERCE 
Subtitle A—Petroleum Reserve and 
Home Heating Oil 
SEC. 301. PERMANENT AUTHORITY TO OPERATE THE STRA-
TEGIC PETROLEUM RESERVE AND OTHER 
ENERGY PROGRAMS. 
(a) AMENDMENT TO TITLE I OF THE ENERGY POL-
ICY AND CONSERVATION ACT.—Title I of the Energy Pol-
icy 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 
(3) by striking part E (42 U.S.C. 6251; relat-
ing to the expiration of title I of the Act). 
(b) AMENDMENT TO TITLE II OF THE ENERGY POL-
ICY AND CONSERVATION ACT.—Title II of the Energy
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Policy and Conservation Act (42 U.S.C. 6271 et seq.) is 
amended— 
(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; relat-
ing to the expiration of title II of the Act). 
(c) TECHNICAL AMENDMENTS.—The table of con-
tents for the Energy Policy and Conservation Act is 
amended— 
(1) by inserting after the items relating to part 
C of title I the following: 
‘‘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: 
‘‘PART C—SUMMER FILL AND FUEL BUDGETING PROGRAMS 
‘‘Sec. 273. Summer fill and fuel budgeting programs.’’; 
and
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(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 to ‘‘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 CA-
PACITY.—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 En-
ergy Policy 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-
ceeding to select, from sites that the Secretary has pre-
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viously studied, sites necessary to enable acquisition by the 
Secretary of the full authorized volume of the Strategic 
Petroleum 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 con-
secutive 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 
inserting ‘‘and to the importation or exportation of natural 
gas in foreign commerce and to persons engaged in such 
importation 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
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gas that is imported to the United States from a 
foreign country, exported to a foreign country from 
the United States, or transported in interstate com-
merce by waterborne tanker, but does not include— 
‘‘(A) waterborne tankers used to deliver 
natural gas to or from any such facility; or 
‘‘(B) any pipeline or storage facility sub-
ject to the jurisdiction of the Commission under 
section 7.’’. 
(c) AUTHORIZATION FOR CONSTRUCTION, EXPAN-
SION, OR OPERATION
OF LIQUEFACTION
OR GASIFI-
CATION NATURAL GAS TERMINALS.—(1) The title for sec-
tion 3 of the Natural Gas Act (15 U.S.C. 717b) is amend-
ed by inserting ‘‘; LIQUEFACTION OR GASIFICATION NAT-
URAL GAS TERMINALS’’ after ‘‘EXPORTATION OR IMPORTA-
TION 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 GASIFI-
CATION NATURAL GAS TERMINALS.— 
‘‘(1) 
COMMISSION
AUTHORIZATION
RE-
QUIRED.—No person shall construct, expand, or op-
erate a liquefaction or gasification natural gas ter-
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minal without an order from the Commission au-
thorizing such person to do so. 
‘‘(2) AUTHORIZATION PROCEDURES.— 
‘‘(A) NOTICE
AND
HEARING.—Upon the 
filing 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 
hearing to all interested persons, including 
the State commission of the State in which 
the liquefaction or gasification natural gas 
terminal 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 pur-
poses of coordinating all applicable Federal 
authorizations and for the purposes of 
complying with the National Environ-
mental Policy Act of 1969 (42 U.S.C.
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4312 et seq.) for a liquefaction or gasifi-
cation natural gas terminal. 
‘‘(ii) OTHER
AGENCIES.—Each Fed-
eral agency considering an aspect of the 
construction, expansion, or operation of a 
liquefaction 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 
administrative proceedings required under 
authority of Federal law to construct, ex-
pand, or operate a liquefaction or gasifi-
cation natural gas terminal. In establishing 
the schedule, the Commission shall— 
‘‘(I) ensure expeditious comple-
tion 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
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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 ter-
minal, in accordance with the schedule es-
tablished by the Commission under this 
subparagraph, and if— 
‘‘(I) a determination has been 
made by the Court pursuant to sec-
tion 19(d) that such delay is unrea-
sonable; 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 pre-
sumed 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 offi-
cer acting under delegated Federal authority) 
with respect to the construction, expansion, or