nologies that employ gas turbines and fuel cells 
integrated with biomass gasifiers; and 
(C) for biofuels, the program should accel-
erate research, development, and demonstration 
on advanced cellulosic conversion, including re-
calcitrance of biomass, feedstock development, 
and co-products development. 
(8) For hydropower, the program should pro-
vide for a new generation of turbine technologies 
that will increase generating capacity and will be 
less damaging to fish and aquatic ecosystems. 
(9) For electric energy systems and storage, the 
program should develop—
(A) technologies for generators and trans-
mission, distribution, and storage systems that 
combine high capacity with high efficiency (par-
ticularly for electric transmission facilities in 
rural and remote areas); 
(B) new transmission and distribution 
technologies, including flexible alternating cur-
rent transmission systems, composite conductor 
materials, advanced protection devices, and con-
trollers;
(C) technologies for interconnection of dis-
tributed energy resources with electric power 
systems; 
(D) technologies to sequester 90 percent or 
more of carbon dioxide emissions; 
(E) high-temperature superconducting ma-
terials for power delivery equipment such as 
transmission and distribution cables, trans-
formers, and generators; and 
(F) real-time transmission and distribution 
system control technologies that provide for 
continual exchange of information between gen-
eration, transmission, distribution, and end-user 
facilities. 
(10) For minimum emission coal, the program 
shall pursue research that develops and dem-
onstrates facilities generating electricity from coal, 
in a cost-competitive manner, that by 2020—
(A) remove 99 percent of total sulfur diox-
ide emissions; 
(B) emit no more than .05 lbs of NOx per 
million BTU; 
(C) achieve a 90 percent reduction in mer-
cury emissions;
(D) sequester 90 percent or more of car-
bon dioxide emissions; and 
(E) achieve a thermal efficiency of—
(i) 60 percent for coal of more than 
9,000 Btu; 
(ii) 59 percent for coal of 7,000 to 
9,000 Btu; and 
(iii) 57 percent for coal of less than 
7,000 Btu. 
(11) The Secretary shall work to maximize the 
production of hydrogen from clean energy sources. 
(12) The Secretary shall support under this 
section any other technology that may help achieve 
the goals stated in section 102. 
(b) TECHNICAL CRITERIA FOR GASIFICATION.—In 
allocating the funds made available for minimum emission 
coal, the Secretary shall ensure that at least 80 percent 
of the funds are used for coal-based gasification tech-
nologies or coal-based projects that include gasification 
combined cycle, gasification fuel cells, gasification co-pro-
duction, or hybrid gasification/combustion. The Secretary 
shall set technical milestones specifying emissions levels 
that coal gasification projects must be designed to, and 
can reasonably be expected to, achieve. The milestones 
shall get more restrictive through the life of the program.
(c) COORDINATION WITH OTHER BENEFITS.—The 
Secretary shall not provide assistance under this section 
to any person if such person has received assistance under 
section 642 or 731. 
Subtitle C—Energy Efficiency Re-
search, Development, and Dem-
onstration Program 
SEC. 221. ENHANCED ENERGY EFFICIENCY RESEARCH, DE-
VELOPMENT, AND DEMONSTRATION. 
(a) GOALS.—In order to achieve the goal stated in 
section 102 of this Act, the United States shall have an 
energy research, development, and demonstration program 
to enhance energy efficiency with the following goals: 
(1) For energy efficiency in housing, the pro-
gram should develop technologies, housing compo-
nents, designs, and production methods that will, by 
2010—
(A) reduce the time needed to move en-
ergy-efficient technologies to market by 50 per-
cent, compared to the time needed as of the 
date of the enactment of this Act; 
(B) reduce the monthly cost of new hous-
ing by 20 percent, compared to the cost as of 
the date of the enactment of this Act;
(C) cut the environmental impact and en-
ergy use of new housing by 50 percent, com-
pared to the impact and use as of the date of 
the enactment of this Act; 
(D) ensure that at least 15,000,000 homes 
existing as of the date of the enactment of this 
Act reduce their total energy consumption by 
30 percent, compared to the use as of the date 
of the enactment of this Act; and 
(E) improve the durability and reduce 
maintenance costs of housing technology com-
ponents by 50 percent compared to the dura-
bility and costs as of the date of the enactment 
of this Act. 
(2) For industrial energy efficiency, the pro-
gram should, in cooperation with the affected indus-
tries—
(A) develop a microturbine (40 to 300 kilo-
watt) that is greater than 40 percent more effi-
cient by 2008, compared to the efficiency as of 
the date of the enactment of this Act; 
(B) develop a microturbine that is greater 
than 50 percent more efficient by 2012, com-
pared to the efficiency as of the date of the en-
actment of this Act;
(C) develop advanced materials for com-
bustion systems that reduce emissions of nitro-
gen oxides by 30 to 50 percent while increasing 
efficiency 5 to 10 percent by 2010, compared to 
such emissions as of the date of the enactment 
of this Act; and 
(D) improve the energy intensity of the 
major energy-consuming industries by at least 
25 percent by 2012, compared to the energy in-
tensity as of the date of the enactment of this 
Act. 
(3) For transportation energy efficiency, the 
Secretary shall work with domestic automobile man-
ufacturers to encourage commercial production of 
cost-competitive, highly fuel-efficient vehicles. In de-
veloping these public-private partnerships, the Sec-
retary shall take into consideration the following: 
(A) Hybrid gas/electric vehicles. 
(B) Fuel cells. 
(C) Alternative fuel driven engines. 
(D) Maximizing the production of hydro-
gen from clean energy sources. 
(4) The Secretary shall support under this sec-
tion any other technology that may help achieve the 
goals stated in section 102.
(b) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘alternative fuel’’ has the meaning 
given that term in section 301(2) of the Energy Pol-
icy Act of 1992; and 
(2) the term ‘‘major energy-consuming indus-
tries’’ means—
(A) the forest product industry; 
(B) the steel industry; 
(C) the aluminum industry; 
(D) the metal casting industry; 
(E) the chemical industry; 
(F) the petroleum refining industry; and 
(G) the glass-making industry. 
(c) LIMITS ON USE OF FUNDS.—None of the funds 
authorized 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. 
SEC. 222. ENHANCED AERONAUTICAL SYSTEM ENERGY EF-
FICIENCY RESEARCH, DEVELOPMENT, AND 
PUBLIC-PRIVATE PARTNERSHIP. 
(a) GOALS.—For aeronautical system energy effi-
ciency, the Secretary of Energy, the Secretary of the 
Treasury, and the Secretary of Transportation shall de-
velop for commercial production by 2008 a superefficient, 
high-capacity commercial airplane. To carry out this sec-
tion, the Secretaries shall form a public-private partner-
ship research and development loan program such that—
(1) the Federal Government enters into an 
agreement with a domestic commercial airplane 
manufacturer in which the Federal Government pro-
vides loans for up to 49 percent of the research and 
development cost; and 
(2) the Federal Government receives repayment 
for loans under paragraph (1) from the commercial 
airplane manufacturer through a royalty system 
agreed upon by the Secretary of the Treasury. 
(b) DEFINITION.—For purposes of this section, the 
term ‘‘superefficient, high-capacity commercial airplane’’ 
means a commercial airplane with a passenger seating ca-
pacity of no less than 200 people with a range of at least 
7,200 nautical miles which consumes at least 15 percent 
less fuel than comparable airplanes. 
SEC. 223. 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, demonstra-
tion, and commercial application activities related to ad-
vanced solid-state lighting technologies based on white 
light emitting 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 
diodes that, compared to incandescent and fluores-
cent 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 sur-
faces; 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 
Generation Lighting Initiative through a private 
consortium (which may include private firms, trade 
associations and institutions of higher education), 
which the Secretary shall select through a competi-
tive process. Each proposed consortium shall submit 
to the Secretary such information as the Secretary 
may require, including a program plan agreed to by 
all participants 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 man-
ufacturing 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, 
including those who are not participants of the con-
sortium. 
(B) To receive a grant, the consortium must 
provide a description to the Secretary of the pro-
posed research and list the parties that will receive 
funding. 
(C) At least 20 percent of the cost of a research 
and development project for which a grant is made 
under this section shall be matched by the consor-
tium, and at least 50 percent of the cost of a dem-
onstration or commercial application project for 
which a grant is made under this section shall be 
matched by the consortium. 
(5) NATIONAL LABORATORIES.—National Lab-
oratories may participate in the research described 
in this section, and may receive funds from the con-
sortium. 
(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 COM-
MERCIAL APPLICATION.—The Secretary shall carry out 
the development, demonstration, and commercial applica-
tion activities of the Next Generation Lighting Initiative 
through awards to private firms, trade associations, and 
institutions of higher education. In selecting awardees, the 
Secretary may give preference to members of the consor-
tium 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 ap-
proval 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 
milestones, and plans for technology transfer established 
under paragraph (1) and evaluate the progress toward 
achieving them. The Secretary shall consider the results 
of such reviews 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-