SEC. 3. GOALS. 
(a) IN GENERAL.—In order to achieve the purposes of 
this Act, the Secretary shall conduct a balanced set of pro-
grams of energy research, development, demonstration, and 
commercial application, guided by the following goals: 
(1) ENERGY EFFICIENCY.—
(A) BUILDINGS.—Develop, in partnership 
with industry, technologies, designs, and produc-
tion methods that will enable an average 25 per-
cent increase by 2010 in the energy efficiency of 
all new buildings, as compared to a new build-
ing in 1996. 
(B) INDUSTRY.—Develop, in partnership 
with industry, technologies, designs, and produc-
tion methods that will enable the energy inten-
sity of the major energy-consuming industries to 
improve by at least 25 percent by 2010 as com-
pared to 1991. 
(C) VEHICLES.—Develop, in partnership 
with industry, technologies that will enable—
(i) by 2010, mid-sized passenger auto-
mobiles with a fuel economy of 80 miles per 
gallon; 
(ii) by 2010, light trucks (classes 1 and 
2a) with a fuel economy of 60 miles per gal-
lon;
(iii) by 2010, medium trucks and buses 
(classes 2b through 6 and class 8 transit 
buses) with a fuel economy, in ton-miles per 
gallon for trucks and passenger miles per 
gallon for buses, that is 3 times that of year 
2000 equivalent vehicles; 
(iv) by 2010, heavy trucks (classes 7 
and 8) with a fuel economy, in ton-miles 
per gallon, that is 2 times that of year 2000 
equivalent vehicles; and 
(v) by 2020, meeting the goal described 
in section 103(a)(2) of the Spark M. Matsu-
naga Hydrogen Research, Development, and 
Demonstration Act of 1990. 
(2) DISTRIBUTED
ENERGY
AND
ELECTRIC
EN-
ERGY SYSTEMS.—
(A) DISTRIBUTED
GENERATION.—Develop, 
in partnership with industry, technologies based 
on natural gas that achieve electricity generating 
efficiencies greater than 40 percent by 2015 for 
on-site, or distributed, generation technologies. 
(B) ELECTRIC ENERGY SYSTEMS AND STOR-
AGE.—Develop, in partnership with industry—
(i) technologies for generators and 
transmission, distribution, and storage sys-
tems that combine high capacity with high 
efficiency (particularly for electric trans-
mission facilities in rural and remote 
areas); 
(ii) new transmission and distribution 
technologies, including flexible alternating 
current transmission systems, composite 
conductor materials, advanced protection 
devices, and controllers; 
(iii) technologies for interconnection of 
distributed energy resources with electric 
power systems; 
(iv) high-temperature superconducting 
materials for power delivery equipment such 
as transmission and distribution cables, 
transformers, and generators; and
(v) real-time transmission and dis-
tribution system control technologies that 
provide for continual exchange of informa-
tion between generation, transmission, dis-
tribution, and end-user facilities. 
(3) RENEWABLE ENERGY.—
(A) WIND POWER.—Develop, in partnership 
with industry, technologies and designs that 
will—
(i) reduce the cost of wind power by 40 
percent by 2012 as compared to 2000; and 
(ii) expand utilization of class 3 and 4 
winds. 
(B) PHOTOVOLTAICS.—Develop, in partner-
ship with industry, total photovoltaic systems 
with installed costs of $5,000 per peak kilowatt 
by 2005 and $2000 per peak kilowatt by 2015. 
(C) SOLAR
THERMAL
SYSTEMS.—Develop, 
in partnership with industry, solar power tech-
nologies (including baseload solar power) that 
combine high-efficiency and high-temperature re-
ceivers with advanced thermal storage and power 
cycles to accommodate peak loads and reduce 
lifecycle costs. 
(D) GEOTHERMAL
ENERGY.—Develop, in 
partnership with industry, technologies and 
processes based on advanced hydrothermal sys-
tems and advanced heat and power systems, in-
cluding geothermal or ground source heat pump 
technology, with a specific focus on—
(i) improving exploration and charac-
terization technology to increase the prob-
ability of drilling successful wells from 20 
percent to 40 percent by 2010;
(ii) reducing the cost of drilling by 
2008 to an average cost of $225 per foot; 
(iii) developing enhanced geothermal 
systems technology with the potential to
double the usable geothermal resource base, 
as compared to the date of enactment of this 
Act; and 
(iv) reducing the cost of installing the 
ground loop of ground-source heat pumps 
by 30 percent by 2007 compared to the cost 
in 2000. 
(E) BIOMASS-BASED POWER SYSTEMS.—De-
velop, in partnership with industry, integrated 
power generating systems, advanced conversion, 
and feedstock technologies capable of producing 
electric power that is cost-competitive with fossil-
fuel generated electricity by 2010, through co-
production of fuels, chemicals, and other prod-
ucts under subparagraph (F). 
(F) BIOFUELS.—Develop, in partnership 
with industry, new and emerging technologies 
and biotechnology processes capable of making—
(i) gaseous and liquid biofuels that are 
price-competitive, by 2010, with gasoline or
diesel in either internal combustion engines 
or fuel cells; and 
(ii) biofuels, biobased polymers, and 
chemicals, including those derived from 
lignocellulosic feedstock, with particular em-
phasis on developing biorefineries that use 
enzyme-based processing systems. 
(G) HYDROPOWER.—Develop, in partner-
ship with industry, a new generation of turbine 
technologies that will increase generating capac-
ity and be less damaging to fish and aquatic eco-
systems. 
(4) FOSSIL ENERGY.— 
(A) 
POWER
GENERATION.—Develop, 
in 
partnership with industry, technologies, includ-
ing precombustion technologies, by 2015 with the 
capability of realizing—
(i) electricity generating efficiencies of 
75 percent (lower heating value) for natural 
gas; and 
(ii) widespread commercial applica-
tion of combined heat and power with ther-
mal efficiencies of more than 85 percent 
(higher heating value).
(B) OFFSHORE OIL AND GAS RESOURCES.—
Develop, in partnership with industry, tech-
nologies to—
(i) extract methane hydrates in coastal 
waters of the United States; and 
(ii) develop natural gas and oil re-
serves in the ultra-deepwater of the Central 
and Western Gulf of Mexico, with a focus on 
improving, while lowering costs and reduc-
ing environmental impacts, the safety and 
efficiency of—
(I) the recovery of ultra-deepwater 
resources; and 
(II) sub-sea production technology 
used for such recovery. 
(C) ONSHORE OIL AND GAS RESOURCES.—
Advance the science and technology available to 
domestic onshore petroleum producers, particu-
larly independent producers of oil or gas, 
through—
(i) advances in technology for explo-
ration and production of domestic petro-
leum resources, particularly those not acces-
sible with current technology;
(ii) improvement in the ability to ex-
tract hydrocarbons (including heavy oil) 
from known reservoirs and classes of res-
ervoirs; and 
(iii) development of technologies and 
practices that reduce the impact on the en-
vironment from petroleum exploration and 
production. 
(D) TRANSPORTATION FUELS.—Increase the 
availability of transportation fuels by focusing 
research on—
(i) reducing the cost of producing 
transportation fuels from coal and natural 
gas; and 
(ii) indirect liquefaction of coal and 
biomass. 
(5) NUCLEAR ENERGY.—
(A) EXISTING
REACTORS.—Support re-
search to extend the lifetimes of existing United 
States nuclear power reactors, and increase their 
reliability while optimizing their current oper-
ations for greater efficiencies. 
(B) ADVANCED
REACTORS.—Develop, in 
partnership with industry—
(i) advanced, efficient, lower cost, and 
passively safe reactor designs; 
(ii) proliferation-resistant and high-
burn-up nuclear fuels; and 
(iii) technologies to minimize genera-
tion of radioactive materials and improve 
the management of nuclear waste. 
(C) 
NUCLEAR
SCIENTISTS
AND
ENGI-
NEERS.—Attract new students and faculty to the 
nuclear sciences, nuclear engineering, and re-
lated fields (including health physics, nuclear 
medicine, 
nuclear 
chemistry, 
and 
radiochemistry). 
(6) HYDROGEN.—Carry out the Spark M. Mat-
sunaga Hydrogen Research, Development, and Dem-
onstration Act of 1990. 
(b) REVIEW AND ASSESSMENT OF GOALS.—
(1) EVALUATION AND MODIFICATION.—Based on 
amounts appropriated and developments in science 
and technology, the Secretary shall evaluate the goals 
set forth in subsection (a) at least once every 5 years, 
and shall report to the Congress any proposed modi-
fications to the goals.
(2) CONSULTATION.—In evaluating and pro-
posing modifications to the goals as provided in para-
graph (1), the Secretary shall solicit public input. 
(3) PUBLIC COMMENT.—(A) After consultation 
under paragraph (2), the Secretary shall publish in 
the Federal Register a set of draft modifications to the 
goals for public comment. 
(B) Not later than 60 days after the date of pub-
lication of draft modifications under subparagraph 
(A), and after consideration of any public comments 
received, the Secretary shall publish the final modi-
fications, including a summary of the public com-
ments received, in the Federal Register. 
(4) EFFECTIVE DATE.—No modification to goals 
under this section shall take effect before the date 
which is 5 years after the date of enactment of this 
Act. 
(c) EFFECT OF GOALS.—(1) Nothing in paragraphs 
(1) through (6) of subsection (a), or any subsequent modi-
fication to the goals therein pursuant to subsection (b), 
shall—
(A) create any new—
(i) authority for any Federal agency; or 
(ii) requirement for any other person;
(B) be used by a Federal agency to support the 
establishment of regulatory standards or regulatory 
requirements; or 
(C) alter the authority of the Secretary to make 
grants or other awards. 
(2) Nothing in this subsection shall be construed to 
limit the authority of the Secretary to impose conditions 
on grants or other awards based on the goals in subsection 
(a) or any subsequent modification thereto.
SEC. 4. DEFINITIONS. 
For purposes of this Act: 
(1) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Energy. 
(2) DEPARTMENTAL
MISSION.—The term ‘‘de-
partmental mission’’ means any of the functions vest-
ed in the Secretary of Energy by the Department of 
Energy Organization Act (42 U.S.C. 7101 et seq.) or 
other law. 
(3) INDEPENDENT PRODUCER OF OIL OR GAS.—
(A) IN GENERAL.—The term ‘‘independent 
producer of oil or gas’’ means any person who 
produces oil or gas other than a person to whom 
subsection (c) of section 613A of the Internal 
Revenue Code of 1986 does not apply by reason 
of paragraph (2) (relating to certain retailers) or
paragraph (4) (relating to certain refiners) of 
section 613A(d) of such Code. 
(B) RULES FOR APPLYING PARAGRAPHS (2) 
AND (4) OF SECTION 613A(d).—For purposes of 
subparagraph (A), paragraphs (2) and (4) of 
section 613A(d) of the Internal Revenue Code of 
1986 shall be applied by substituting ‘‘calendar 
year’’ for ‘‘taxable year’’ each place it appears in 
such paragraphs. 
(4) INSTITUTION OF HIGHER EDUCATION.—The 
term ‘‘institution of higher education’’ has the mean-
ing given that term in section 101(a) of the Higher 
Education Act of 1965 (20 U.S.C. 1001(a)). 
(5) JOINT VENTURE.—The term ‘‘joint venture’’ 
has the meaning given that term under section 2 of 
the National Cooperative Research and Production 
Act of 1993 (15 U.S.C. 4301). 
(6) NATIONAL
LABORATORY.—The term ‘‘Na-
tional Laboratory’’ means any of the following lab-
oratories owned by the Department: 
(A) Ames National Laboratory. 
(B) Argonne National Laboratory. 
(C) Brookhaven National Laboratory. 
(D) Fermi National Laboratory.
(E) Idaho National Engineering and Envi-
ronmental Laboratory. 
(F) Lawrence Berkeley National Labora-
tory. 
(G) Lawrence Livermore National Labora-
tory. 
(H) Los Alamos National Laboratory. 
(I) National Energy Technology Labora-
tory. 
(J) National Renewable Energy Laboratory. 
(K) Oak Ridge National Laboratory. 
(L) Pacific Northwest National Laboratory. 
(M) Princeton Plasma Physics Laboratory. 
(N) Sandia National Laboratories.
(O) Thomas Jefferson National Accelerator 
Facility. 
(7) NONMILITARY
ENERGY
LABORATORY.—The 
term ‘‘nonmilitary energy laboratory’’ means any of 
the following laboratories of the Department: 
(A) Ames National Laboratory. 
(B) Argonne National Laboratory. 
(C) Brookhaven National Laboratory. 
(D) Fermi National Laboratory. 
(E) Lawrence Berkeley National Labora-
tory.
(F) Oak Ridge National Laboratory. 
(G) Pacific Northwest National Laboratory. 
(H) Princeton Plasma Physics Laboratory. 
(I) Stanford Linear Accelerator Center. 
(J) Thomas Jefferson National Accelerator 
Facility. 
(8) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(9) SINGLE-PURPOSE RESEARCH FACILITY.—The 
term ‘‘single-purpose research facility’’ means any of 
the following primarily single-purpose entities owned 
by the Department: 
(A) East Tennessee Technology Park. 
(B) Fernald Environmental Management 
Project. 
(C) Kansas City Plant. 
(D) Nevada Test Site. 
(E) New Brunswick Laboratory. 
(F) Pantex Weapons Facility. 
(G) Savannah River Technology Center. 
(H) Stanford Linear Accelerator Center. 
(I) Y–12 facility at Oak Ridge National 
Laboratory. 
(J) Waste Isolation Pilot Plant.
(K) Any other similar organization of the 
Department designated by the Secretary that en-
gages in technology transfer, partnering, or li-
censing activities. 
TITLE I—RESEARCH AND 
DEVELOPMENT 
Subtitle A—Energy Efficiency 
PART 1—AUTHORIZATION OF APPROPRIATIONS 
SEC. 104. ENERGY EFFICIENCY. 
(a) IN GENERAL.—The following sums are authorized 
to be appropriated to the Secretary for energy efficiency and 
conservation research, development, demonstration, and 
commercial application activities, including activities au-
thorized under this subtitle: 
(1) For fiscal year 2004, $616,000,000. 
(2) For fiscal year 2005, $695,000,000. 
(3) For fiscal year 2006, $772,000,000. 
(4) For fiscal year 2007, $865,000,000. 
(b) ALLOCATIONS.—From amounts authorized under 
subsection (a), the following sums are authorized: 
(1) LIGHTING
SYSTEMS.—For activities under 
section 105, $50,000,000 for each of fiscal years 2004 
through 2007.
(2) ELECTRIC MOTOR CONTROL TECHNOLOGY.—
For activities under section 106A, $2,000,000 for each 
of fiscal years 2004 through 2007. 
(3) SECONDARY
ELECTRIC
VEHICLE
BATTERY 
USE PROGRAM.—For activities under section 108—
(A) for fiscal year 2004, $4,000,000; 
(B) for fiscal year 2005, $7,000,000; 
(C) for fiscal year 2006, $7,000,000; and 
(D) for fiscal year 2007, $7,000,000. 
(4) ENERGY EFFICIENCY SCIENCE INITIATIVE.—
For activities under section 110—
(A) for fiscal year 2004, $20,000,000; 
(B) for fiscal year 2005, $25,000,000;
(C) for fiscal year 2006, $30,000,000; and 
(D) for fiscal year 2007, $35,000,000. 
(c) EXTENDED AUTHORIZATION.—There are author-
ized to be appropriated to the Secretary for activities under 
section 105, $50,000,000 for each of fiscal years 2008 
through 2012. 
(d) LIMITS ON USE OF FUNDS.—None of the funds au-
thorized to be appropriated under this section may be used 
for—
(1) the promulgation and implementation of en-
ergy efficiency regulations;
(2) the Weatherization Assistance Program 
under part A of title IV of the Energy Conservation 
and Production Act; 
(3) the State Energy Program under part D of 
title III of the Energy Policy and Conservation Act; 
or 
(4) the Federal Energy Management Program 
under part 3 of title V of the National Energy Con-
servation Policy Act. 
PART 2—LIGHTING SYSTEMS
SEC. 105. NEXT GENERATION LIGHTING INITIATIVE. 
(a) IN GENERAL.—The Secretary shall carry out a 
Next Generation Lighting Initiative in accordance with this 
section to support research, development, demonstration, 
and commercial application activities related to advanced 
solid-state lighting technologies based on white light emit-
ting diodes. 
(b) OBJECTIVES.—The objectives of the initiative shall 
be—
(1) to develop, by 2012, advanced solid-state 
lighting technologies based on white light emitting di-
odes that, compared to incandescent and fluorescent 
lighting technologies, are—
(A) longer lasting; 
(B) more energy-efficient; and
(C) cost-competitive; 
(2) to develop an inorganic white light emitting 
diode that has an efficiency of 160 lumens per watt 
and a 10-year lifetime; and 
(3) to develop an organic white light emitting 
diode with an efficiency of 100 lumens per watt with 
a 5-year lifetime that—
(A) illuminates over a full color spectrum; 
(B) covers large areas over flexible surfaces; 
and 
(C) does not contain harmful pollutants, 
such as mercury, typical of fluorescent lamps. 
(c) FUNDAMENTAL RESEARCH.—
(1) CONSORTIUM.—The Secretary shall carry out 
the fundamental research activities of the Next Gen-
eration Lighting Initiative through a private consor-
tium (which may include private firms, trade asso-
ciations and institutions of higher education), which 
the Secretary shall select through a competitive proc-
ess. Each proposed consortium shall submit to the 
Secretary such information as the Secretary may re-
quire, including a program plan agreed to by all par-
ticipants of the consortium. 
(2) JOINT VENTURE.—The consortium shall be 
structured as a joint venture among the participants
of the consortium. The Secretary shall serve on the 
governing council of the consortium. 
(3) ELIGIBILITY.—To be eligible to be selected as 
the consortium under paragraph (1), an applicant 
must be broadly representative of United States solid-
state lighting research, development, and manufac-
turing expertise as a whole. 
(4) GRANTS.—(A) The Secretary shall award 
grants for fundamental research to the consortium, 
which the consortium may disburse to researchers, in-
cluding those who are not participants of the consor-
tium. 
(B) To receive a grant, the consortium must pro-
vide a description to the Secretary of the proposed re-
search and list the parties that will receive funding. 
(C) Grants shall be matched by the consortium 
pursuant to section 185. 
(5) NATIONAL
LABORATORIES.—National Lab-
oratories may participate in the research described in 
this section, and may receive funds from the consor-
tium. 
(6) INTELLECTUAL PROPERTY.—Participants in 
the consortium and the Federal Government shall 
have royalty-free nonexclusive rights to use intellec-
tual property derived from research funded pursuant 
to this subsection. 
(d) DEVELOPMENT, DEMONSTRATION, AND COMMER-
CIAL APPLICATION.—The Secretary shall carry out the de-
velopment, demonstration, and commercial application ac-
tivities of the Next Generation Lighting Initiative through 
awards to private firms, trade associations, and institu-
tions of higher education. In selecting awardees, the Sec-
retary may give preference to members of the consortium 
selected pursuant to subsection (c). 
(e) PLANS AND ASSESSMENTS.—(1) The consortium 
shall formulate an annual operating plan which shall in-
clude research priorities, technical milestones, and plans for 
technology transfer, and which shall be subject to approval 
by the Secretary. 
(2) The Secretary shall enter into an arrangement 
with the National Academy of Sciences to conduct periodic 
reviews of the Next Generation Lighting Initiative. The 
Academy shall review the research priorities, technical mile-
stones, and plans for technology transfer established under 
paragraph (1) and evaluate the progress toward achieving 
them. The Secretary shall consider the results of such re-
views in evaluating the plans submitted under paragraph 
(1).
(f) AUDIT.—The Secretary shall retain an inde-
pendent, commercial auditor to perform an audit of the 
consortium to determine the extent to which the funds au-
thorized by this section have been expended in a manner 
consistent with the purposes of this section. The auditor 
shall transmit a report annually to the Secretary, who shall 
transmit the report to the Congress, along with a plan to 
remedy any deficiencies cited in the report. 
(g) SUNSET.—The Next Generation Lighting Initia-
tive shall terminate no later than September 30, 2013. 
(h) DEFINITIONS.—As used in this section: 
(1) ADVANCED
SOLID-STATE
LIGHTING.—The 
term 
‘‘advanced 
solid-state 
lighting’’ 
means 
a 
semiconducting device package and delivery system
that produces white light using externally applied 
voltage. 
(2) FUNDAMENTAL RESEARCH.—The term ‘‘fun-
damental research’’ includes basic research on both 
solid-state materials and manufacturing processes. 
(3) INORGANIC WHITE LIGHT EMITTING DIODE.—
The term ‘‘inorganic white light emitting diode’’ 
means an inorganic semiconducting package that pro-
duces white light using externally applied voltage. 
(4) ORGANIC WHITE LIGHT EMITTING DIODE.—
The term ‘‘organic white light emitting diode’’ means
an organic semiconducting compound that produces 
white light using externally applied voltage. 
PART 3—BUILDINGS
SEC. 106. NATIONAL BUILDING PERFORMANCE INITIATIVE. 
(a) INTERAGENCY GROUP.—Not later than 3 months 
after the date of enactment of this Act, the Director of the 
Office of Science and Technology Policy shall establish an 
interagency group to develop, in coordination with the ad-
visory committee established under subsection (e), a Na-
tional Building Performance Initiative (in this section re-
ferred to as the ‘‘Initiative’’). The interagency group shall 
be cochaired by appropriate officials of the Department and 
the Department of Commerce, who shall jointly arrange for 
the provision of necessary administrative support to the 
group. 
(b) INTEGRATION OF EFFORTS.—The Initiative, work-
ing with the National Institute of Building Sciences, shall 
integrate Federal, State, and voluntary private sector ef-
forts to reduce the costs of construction, operation, mainte-
nance, and renovation of commercial, industrial, institu-
tional, and residential buildings. 
(c) PLAN.—Not later than 1 year after the date of en-
actment of this Act, the interagency group shall submit to 
Congress a plan for carrying out the appropriate Federal
role in the Initiative. The plan shall be based on whole 
building principles and shall include—
(1) research, development, demonstration, and 
commercial application of systems and materials for 
new construction and retrofit relating to the building 
envelope and building system components; and 
(2) the collection, analysis, and dissemination of 
research results and other pertinent information on 
enhancing building performance to industry, govern-
ment entities, and the public. 
(d) DEPARTMENT OF ENERGY ROLE.—Within the Fed-
eral portion of the Initiative, the Department shall be the 
lead agency for all aspects of building performance related 
to use and conservation of energy. 
(e) ADVISORY COMMITTEE.—
(1) ESTABLISHMENT.—The Director of the Office 
of Science and Technology Policy shall establish an 
advisory committee to—
(A) analyze and provide recommendations 
on potential private sector roles and participa-
tion in the Initiative; and 
(B) review and provide recommendations on 
the plan described in subsection (c). 
(2) MEMBERSHIP.—Membership of the advisory 
committee shall include representatives with a broad
range of appropriate expertise, including expertise 
in—
(A) building research and technology; 
(B) architecture, engineering, and building 
materials and systems; and 
(C) the residential, commercial, and indus-
trial sectors of the construction industry. 
(f) CONSTRUCTION.—Nothing in this section provides 
any Federal agency with new authority to regulate building 
performance. 
SEC. 106A. ELECTRIC MOTOR CONTROL TECHNOLOGY. 
The Secretary shall conduct a research, development, 
demonstration, and commercial application program on 
advanced control devices to improve the energy efficiency 
of electric motors used in heating, ventilation, air condi-
tioning, and comparable systems. 
PART 4—VEHICLES 
SEC. 107. DEFINITIONS. 
For purposes of this part, the term—
(1) ‘‘battery’’ means an energy storage device 
that previously has been used to provide motive power 
in a vehicle powered in whole or in part by elec-
tricity; and
(2) ‘‘associated equipment’’ means equipment lo-
cated where the batteries will be used that is necessary 
to enable the use of the energy stored in the batteries. 
SEC. 108. ESTABLISHMENT OF SECONDARY ELECTRIC VEHI-
CLE BATTERY USE PROGRAM. 
(a) PROGRAM.—The Secretary shall establish and con-
duct a research, development, demonstration, and commer-
cial application program for the secondary use of batteries. 
Such program shall be—
(1) designed to demonstrate the use of batteries 
in secondary application, including utility and com-
mercial power storage and power quality; 
(2) structured to evaluate the performance, in-
cluding useful service life and costs, of such batteries 
in field operations, and evaluate the necessary sup-
porting infrastructure, including reuse and disposal 
of batteries; and 
(3) coordinated with ongoing secondary battery 
use programs at the National Laboratories and in in-
dustry. 
(b) SOLICITATION.—(1) Not later than 6 months after 
the date of the enactment of this Act, the Secretary shall 
solicit proposals to demonstrate the secondary use of bat-
teries and associated equipment and supporting infrastruc-
ture in geographic locations throughout the United States.
The Secretary may make additional solicitations for pro-
posals if the Secretary determines that such solicitations are 
necessary to carry out this section. 
(2)(A) Proposals submitted in response to a solicita-
tion under this section shall include—
(i) a description of the project, including the bat-
teries to be used in the project, the proposed locations 
and applications for the batteries, the number of bat-
teries to be demonstrated, and the type, characteris-
tics, and estimated life-cycle costs of the batteries com-
pared to other energy storage devices currently used; 
(ii) the contribution, if any, of State or local 
governments and other persons to the demonstration 
project;
(iii) the type of associated equipment and sup-
porting infrastructure to be demonstrated; and 
(iv) any other information the Secretary con-
siders appropriate. 
(B) If the proposal includes a lease arrangement, the 
proposal shall indicate the terms of such lease arrangement 
for the batteries and associated equipment. 
(c) SELECTION OF PROPOSALS.—(1)(A) The Secretary 
shall, not later than 3 months after the closing date estab-
lished by the Secretary for receipt of proposals under sub-
section (b), select at least 5 proposals to receive financial 
assistance under this section. 
(B) No one project selected under this section shall re-
ceive more than 25 percent of the funds authorized under 
this section. No more than 3 projects selected under this sec-
tion shall demonstrate the same battery type. 
(2) In selecting a proposal under this section, the Sec-
retary shall consider—
(A) the ability of the proposer to acquire the bat-
teries and associated equipment and to successfully 
manage and conduct the demonstration project, in-
cluding satisfying the reporting requirements set forth 
in paragraph (3)(B); 
(B) the geographic and climatic diversity of the 
projects selected; 
(C) the long-term technical and competitive via-
bility of the batteries to be used in the project and of 
the original manufacturer of such batteries; 
(D) the suitability of the batteries for their in-
tended uses; 
(E) the technical performance of the batteries, 
including the expected additional useful life and the 
batteries’ ability to retain energy;
(F) the environmental effects of the use of and 
disposal of the batteries proposed to be used in the 
project selected; 
(G) the extent of involvement of State or local 
government and other persons in the demonstration 
project and whether such involvement will—
(i) permit a reduction of the Federal cost 
share per project; or 
(ii) otherwise be used to allow the Federal 
contribution to be provided to demonstrate a 
greater number of batteries; and 
(H) such other criteria as the Secretary considers 
appropriate. 
(3) CONDITIONS.—The Secretary shall require that—
(A) as a part of a demonstration project, the 
users of the batteries provide to the proposer informa-
tion regarding the operation, maintenance, perform-
ance, and use of the batteries, and the proposer pro-
vide such information to the battery manufacturer, 
for 3 years after the beginning of the demonstration 
project;
(B) the proposer provide to the Secretary such 
information regarding the operation, maintenance, 
performance, and use of the batteries as the Secretary 
may request;
(C) the proposer provide to the Secretary such 
information regarding the disposal of the batteries as 
the Secretary may require to ensure that the proposer 
disposes of the batteries in accordance with applicable 
law; and 
(D) the proposer provide at least 50 percent of 
the costs associated with the proposal. 
PART 5—ENERGY EFFICIENCY SCIENCE 
INITIATIVE 
SEC. 110. ENERGY EFFICIENCY SCIENCE INITIATIVE. 
(a) ESTABLISHMENT.—The Secretary shall establish 
an Energy Efficiency Science Initiative to be managed by 
the Assistant Secretary in the Department with responsi-
bility for energy conservation under section 203(a)(9) of the 
Department of Energy Organization Act (42 U.S.C. 
7133(a)(9)), in consultation with the Director of the Office 
of Science, for grants to be competitively awarded and sub-
ject to peer review for research relating to energy efficiency. 
(b) REPORT.—The Secretary shall submit to the Con-
gress, along with the President’s annual budget request 
under section 1105(a) of title 31, United States Code, a re-
port on the activities of the Energy Efficiency Science Ini-
tiative, including a description of the process used to award 
the funds and an explanation of how the research relates 
to energy efficiency.
PART 6—ADVANCED ENERGY TECHNOLOGY 
TRANSFER CENTERS 
SEC. 110A. ADVANCED ENERGY TECHNOLOGY TRANSFER 
CENTERS. 
(a) GRANTS.—Not later than 18 months after the date 
of the enactment of this Act, the Secretary shall make grants 
to nonprofit institutions, State and local governments, or 
universities (or consortia thereof), to establish a nationwide 
network of at least 10 Advanced Energy Technology Trans-
fer Centers, to be located in areas the Secretary determines 
have the greatest need of the services of such Centers. 
(b) ACTIVITIES.—(1) Each Center shall operate a pro-
gram to encourage demonstration and commercial applica-
tion of advanced energy methods and technologies through 
education and outreach to building and industrial profes-
sionals, and to other individuals and organizations with 
an interest in efficient energy use. 
(2) Each Center shall establish an advisory panel to 
advise the Center on how best to accomplish the activities 
under paragraph (1). 
(c) APPLICATION.—A person seeking a grant under 
this section shall submit to the Secretary an application 
in such form and containing such information as the Sec-
retary may require. The Secretary may award a grant 
under this section to an entity already in existence if the 
entity is otherwise eligible under this section.
(d) SELECTION CRITERIA.—The Secretary shall award 
grants under this section on the basis of the following cri-
teria, at a minimum: 
(1) The ability of the applicant to carry out the 
activities in subsection (b). 
(2) The extent to which the applicant will co-
ordinate the activities of the Center with other enti-
ties, such as State and local governments, utilities, 
and educational and research institutions. 
(e) MATCHING FUNDS.—The Secretary shall require a 
non-Federal matching requirement of at least 50 percent 
of the costs of establishing and operating each Center. 
(f) ADVISORY COMMITTEE.—The Secretary shall estab-
lish an advisory committee to advise the Secretary on the
establishment of Centers under this section. The advisory 
committee shall be composed of individuals with expertise 
in the area of advanced energy methods and technologies, 
including at least 1 representative from—
(1) State or local energy offices; 
(2) energy professionals; 
(3) trade or professional associations; 
(4) architects, engineers, or construction profes-
sionals; 
(5) manufacturers; 
(6) the research community; and
(7) nonprofit energy or environmental organiza-
tions. 
(g) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘advanced energy methods and tech-
nologies’’ means all methods and technologies that 
promote energy efficiency and conservation, including 
distributed generation technologies, and life-cycle 
analysis of energy use; 
(2) the term ‘‘Center’’ means an Advanced En-
ergy Technology Transfer Center established pursuant 
to this section; and 
(3) the term ‘‘distributed generation’’ means an 
electric power generation facility that is designed to 
serve retail electric consumers at or near the facility 
site. 
Subtitle B—Distributed Energy and 
Electric Energy Systems 
PART 1—AUTHORIZATION OF APPROPRIATIONS 
SEC. 111. DISTRIBUTED ENERGY AND ELECTRIC ENERGY 
SYSTEMS. 
(a) IN GENERAL.—The following sums are authorized 
to be appropriated to the Secretary for distributed energy 
and electric energy systems activities, including activities 
authorized under this subtitle: 
(1) For fiscal year 2004, $190,000,000.