452 
paragraph (A) or (B) of paragraph (1) for a fiscal 
year, effective beginning on August 1 of the fiscal 
year, the Administrator shall make the remaining 
funds available to other qualified grant applicants 
under this section. 
(j) REDUCTION
OF SCHOOL BUS IDLING.—Each 
local educational agency (as defined in section 9101 of the 
Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7801)) that receives Federal funds under the Ele-
mentary and Secondary Education Act of 1965 (20 U.S.C. 
6301 et seq.) is encouraged to develop a policy, consistent 
with the health, safety, and welfare of students and the 
proper operation and maintenance of school buses, to re-
duce the incidence of unnecessary school bus idling at 
schools when picking up and unloading students. 
(k) ANNUAL REPORT.— 
(1) IN GENERAL.—Not later than January 31 
of each year, the Administrator shall transmit to 
Congress a report evaluating implementation of the 
programs under this section and section 743. 
(2) COMPONENTS.—The reports shall include a 
description of— 
(A) the total number of grant applications 
received;
453 
(B) the number and types of alternative 
fuel school buses, ultra-low sulfur diesel fuel 
school buses, and retrofitted buses requested in 
grant applications; 
(C) grants awarded and the criteria used 
to select the grant recipients; 
(D) certified engine emission levels of all 
buses purchased or retrofitted under the pro-
grams under this section and section 743; 
(E) an evaluation of the in-use emission 
level of buses purchased or retrofitted under the 
programs under this section and section 743; 
and 
(F) any other information the Adminis-
trator considers appropriate. 
(l) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Administrator to 
carry out this section, to remain available until ex-
pended— 
(1) $45,000,000 for fiscal year 2005; 
(2) $65,000,000 for fiscal year 2006; 
(3) $90,000,000 for fiscal year 2007; and 
(4) such sums as are necessary for each of fis-
cal years 2008 and 2009.
454 
SEC. 743. DIESEL RETROFIT PROGRAM. 
(a) ESTABLISHMENT.—The Administrator, in con-
sultation with the Secretary, shall establish a program for 
awarding grants on a competitive basis to entities for the 
installation of retrofit technologies for diesel school buses. 
(b) ELIGIBLE RECIPIENTS.—A grant shall be award-
ed under this section only— 
(1) to a local or State governmental entity re-
sponsible for providing school bus service to 1 or 
more public school systems; 
(2) to 1 or more contracting entities that pro-
vide school bus service to 1 or more public school 
systems, if the grant application is submitted jointly 
with the 1 or more school systems that the buses 
will serve, except that the application may provide 
that buses purchased using funds awarded shall be 
owned, operated, and maintained exclusively by the 
1 or more contracting entities; or 
(3) to a nonprofit school transportation associa-
tion representing private contracting entities, if the 
association has notified and received approval from 
the 1 or more school systems to be served by the 
buses. 
(c) AWARDS.— 
(1) IN
GENERAL.—The Administrator shall 
seek, to the maximum extent practicable, to ensure
455 
a broad geographic distribution of grants under this 
section. 
(2) PREFERENCES.—In making awards of 
grants under this section, the Administrator shall 
give preference to proposals that— 
(A) will achieve the greatest reductions in 
emissions of nonmethane hydrocarbons, oxides 
of nitrogen, or particulate matter per proposal 
or per bus; or 
(B) involve the use of emissions control 
retrofit technology on diesel school buses that 
operate solely on ultra-low sulfur diesel fuel. 
(d) CONDITIONS OF GRANT.—A grant shall be pro-
vided under this section on the conditions that— 
(1) buses on which retrofit emissions-control 
technology are to be demonstrated— 
(A) will operate on ultra-low sulfur diesel 
fuel where such fuel is reasonably available or 
required for sale by State or local law or regula-
tion; 
(B) were manufactured in model year 1991 
or later; and 
(C) will be used for the transportation of 
school children to and from school for a min-
imum of 5 years;
456 
(2) grant funds will be used for the purchase of 
emission control retrofit technology, including State 
taxes and contract fees; and 
(3) grant recipients will provide at least 15 per-
cent of the total cost of the retrofit, including the 
purchase of emission control retrofit technology and 
all necessary labor for installation of the retrofit. 
(e) VERIFICATION.—Not later than 90 days after the 
date of enactment of this Act, the Administrator shall 
publish in the Federal Register procedures to verify— 
(1) the retrofit emissions-control technology to 
be demonstrated; 
(2) that buses powered by ultra-low sulfur die-
sel fuel on which retrofit emissions-control tech-
nology are to be demonstrated will operate on diesel 
fuel containing not more than 15 parts per million 
of sulfur; and 
(3) that grants are administered in accordance 
with this section. 
(f) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Administrator to 
carry out this section, to remain available until ex-
pended— 
(1) $20,000,000 for fiscal year 2005; 
(2) $35,000,000 for fiscal year 2006;
457 
(3) $45,000,000 for fiscal year 2007; and 
(4) such sums as are necessary for each of fis-
cal years 2008 and 2009. 
SEC. 744. FUEL CELL SCHOOL BUSES. 
(a) ESTABLISHMENT.—The Secretary shall establish 
a program for entering into cooperative agreements— 
(1) with private sector fuel cell bus developers 
for the development of fuel cell-powered school 
buses; and 
(2) subsequently, with not less than 2 units of 
local government using natural gas-powered school 
buses and such private sector fuel cell bus developers 
to demonstrate the use of fuel cell-powered school 
buses. 
(b) COST SHARING.—The non-Federal contribution 
for activities funded under this section shall be not less 
than— 
(1) 20 percent for fuel infrastructure develop-
ment activities; and 
(2) 50 percent for demonstration activities and 
for development activities not described in paragraph 
(1). 
(c) REPORTS TO CONGRESS.—Not later than 3 years 
after the date of enactment of this Act, the Secretary shall 
transmit to Congress a report that—
458 
(1) evaluates the process of converting natural 
gas infrastructure to accommodate fuel cell-powered 
school buses; and 
(2) assesses the results of the development and 
demonstration program under this section. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary to carry 
out this section $25,000,000 for the period of fiscal years 
2004 through 2006. 
Subtitle D—Miscellaneous 
SEC. 751. RAILROAD EFFICIENCY. 
(a) ESTABLISHMENT.—The Secretary of Energy 
shall, in cooperation with the Secretary of Transportation 
and the Administrator of the Environmental Protection 
Agency, establish a cost-shared, public-private research 
partnership involving the Federal Government, railroad 
carriers, locomotive manufacturers and equipment sup-
pliers, and the Association of American Railroads, to de-
velop and demonstrate railroad locomotive technologies 
that increase fuel economy, reduce emissions, and lower 
costs of operation. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy to carry out this section— 
(1) $25,000,000 for fiscal year 2005;
459 
(2) $35,000,000 for fiscal year 2006; and 
(3) $50,000,000 for fiscal year 2007. 
SEC. 752. MOBILE EMISSION REDUCTIONS TRADING AND 
CREDITING. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this Act, the Administrator of the 
Environmental Protection Agency shall submit to Con-
gress a report on the experience of the Administrator with 
the trading of mobile source emission reduction credits for 
use by owners and operators of stationary source emission 
sources to meet emission offset requirements within a non-
attainment area. 
(b) CONTENTS.—The report shall describe— 
(1) projects approved by the Administrator that 
include the trading of mobile source emission reduc-
tion credits for use by stationary sources in com-
plying with offset requirements, including a descrip-
tion of— 
(A) project and stationary sources location; 
(B) volumes of emissions offset and trad-
ed; 
(C) the sources of mobile emission reduc-
tion credits; and 
(D) if available, the cost of the credits;
460 
(2) the significant issues identified by the Ad-
ministrator in consideration and approval of trading 
in the projects; 
(3) the requirements for monitoring and assess-
ing the air quality benefits of any approved project; 
(4) the statutory authority on which the Admin-
istrator has based approval of the projects; 
(5) an evaluation of how the resolution of issues 
in approved projects could be used in other projects; 
and 
(6) any other issues that the Administrator con-
siders relevant to the trading and generation of mo-
bile source emission reduction credits for use by sta-
tionary sources or for other purposes. 
SEC. 753. AVIATION FUEL CONSERVATION AND EMISSIONS. 
(a) IN GENERAL.—Not later than 60 days after the 
date of enactment of this Act, the Administrator of the 
Federal Aviation Administration and the Administrator of 
the Environmental Protection Agency shall jointly initiate 
a study to identify— 
(1) the impact of aircraft emissions on air qual-
ity in nonattainment areas; and 
(2) ways to promote fuel conservation measures 
for aviation to— 
(A) enhance fuel efficiency; and
461 
(B) reduce emissions. 
(b) FOCUS.—The study under subsection (a) shall 
focus on how air traffic management inefficiencies, such 
as aircraft idling at airports, result in unnecessary fuel 
burn and air emissions. 
(c) REPORT.—Not later than 1 year after the date 
of the initiation of the study under subsection (a), the Ad-
ministrator of the Federal Aviation Administration and 
the Administrator of the Environmental Protection Agen-
cy shall jointly submit to the Committee on Energy and 
Commerce and the Committee on Transportation and In-
frastructure of the House of Representatives and the Com-
mittee on Environment and Public Works and the Com-
mittee on Commerce, Science, and Transportation of the 
Senate a report that— 
(1) describes the results of the study; and 
(2) includes any recommendations on ways in 
which unnecessary fuel use and emissions affecting 
air quality may be reduced— 
(A) without adversely affecting safety and 
security and increasing individual aircraft noise; 
and 
(B) while taking into account all aircraft 
emissions and the impact of the emissions on 
human health.
462 
SEC. 754. DIESEL FUELED VEHICLES. 
(a) DEFINITION OF TIER 2 EMISSION STANDARDS.— 
In this section, the term ‘‘tier 2 emission standards’’ 
means the motor vehicle emission standards that apply to 
passenger cars, light trucks, and larger passenger vehicles 
manufactured after the 2003 model year, as issued on 
February 10, 2000, by the Administrator of the Environ-
mental Protection Agency under sections 202 and 211 of 
the Clean Air Act (42 U.S.C. 7521, 7545). 
(b) DIESEL COMBUSTION AND AFTER-TREATMENT 
TECHNOLOGIES.—The Secretary of Energy shall accel-
erate efforts to improve diesel combustion and after-treat-
ment technologies for use in diesel fueled motor vehicles. 
(c) GOALS.—The Secretary shall carry out subsection 
(b) with a view toward achieving the following goals: 
(1) Developing and demonstrating diesel tech-
nologies that, not later than 2010, meet the fol-
lowing standards: 
(A) Tier 2 emission standards. 
(B) The heavy-duty emissions standards of 
2007 that are applicable to heavy-duty vehicles 
under regulations issued by the Administrator 
of the Environmental Protection Agency as of 
the date of enactment of this Act. 
(2) Developing the next generation of low-emis-
sion, high efficiency diesel engine technologies, in-
463 
cluding homogeneous charge compression ignition 
technology. 
SEC. 755. CONSERVE BY BICYCLING PROGRAM. 
(a) DEFINITIONS.—In this section: 
(1) PROGRAM.—The term ‘‘program’’ means 
the Conserve by Bicycling Program established by 
subsection (b). 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Transportation. 
(b) ESTABLISHMENT.—There is established within 
the Department of Transportation a program to be known 
as the ‘‘Conserve by Bicycling Program’’. 
(c) PROJECTS.— 
(1) IN GENERAL.—In carrying out the program, 
the Secretary shall establish not more than 10 pilot 
projects that are— 
(A) dispersed geographically throughout 
the United States; and 
(B) designed to conserve energy resources 
by encouraging the use of bicycles in place of 
motor vehicles. 
(2) REQUIREMENTS.—A pilot project described 
in paragraph (1) shall— 
(A) use education and marketing to con-
vert motor vehicle trips to bicycle trips;
465 
port on, a study on the feasibility of converting 
motor vehicle trips to bicycle trips. 
(2) COMPONENTS.—The study shall— 
(A) document the results or progress of 
the pilot projects under subsection (c); 
(B) determine the type and duration of 
motor vehicle trips that people in the United 
States may feasibly make by bicycle, taking into 
consideration factors such as— 
(i) weather; 
(ii) land use and traffic patterns; 
(iii) the carrying capacity of bicycles; 
and 
(iv) bicycle infrastructure; 
(C) determine any energy savings that 
would result from the conversion of motor vehi-
cle trips to bicycle trips; 
(D) include a cost-benefit analysis of bicy-
cle infrastructure investments; and 
(E) include a description of any factors 
that would encourage more motor vehicle trips 
to be replaced with bicycle trips. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary to carry
466 
out this section $6,200,000, to remain available until ex-
pended, of which— 
(1) $5,150,000 shall be used to carry out pilot 
projects described in subsection (c); 
(2) $300,000 shall be used by the Secretary to 
coordinate, publicize, and disseminate the results of 
the program; and 
(3) $750,000 shall be used to carry out sub-
section (d). 
SEC. 756. REDUCTION OF ENGINE IDLING OF HEAVY-DUTY 
VEHICLES. 
(a) DEFINITIONS.—In this section: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency. 
(2) ADVANCED TRUCK STOP ELECTRIFICATION 
SYSTEM.—The term ‘‘advanced truck stop elec-
trification system’’ means a stationary system that 
delivers heat, air conditioning, electricity, and com-
munications, and is capable of providing verifiable 
and auditable evidence of use of those services, to a 
heavy-duty vehicle and any occupants of the heavy- 
duty vehicle without relying on components mounted 
onboard the heavy-duty vehicle for delivery of those 
services.
467 
(3) AUXILIARY POWER UNIT.—The term ‘‘auxil-
iary power unit’’ means an integrated system that— 
(A) provides heat, air conditioning, engine 
warming, and electricity to the factory-installed 
components on a heavy-duty vehicle as if the 
main drive engine of the heavy-duty vehicle 
were running; and 
(B) is certified by the Administrator under 
part 89 of title 40, Code of Federal Regulations 
(or any successor regulation), as meeting appli-
cable emission standards. 
(4) HEAVY-DUTY VEHICLE.—The term ‘‘heavy- 
duty vehicle’’ means a vehicle that— 
(A) has a gross vehicle weight rating great-
er than 12,500 pounds; and 
(B) is powered by a diesel engine. 
(5) IDLE REDUCTION TECHNOLOGY.—The term 
‘‘idle reduction technology’’ means an advanced 
truck stop electrification system, auxiliary power 
unit, or other device or system of devices that— 
(A) is used to reduce long-duration idling 
of a heavy-duty vehicle; and 
(B) allows for the main drive engine or 
auxiliary refrigeration engine of a heavy-duty 
vehicle to be shut down.
468 
(6) LONG-DURATION IDLING.— 
(A) IN GENERAL.—The term ‘‘long-dura-
tion idling’’ means the operation of a main 
drive engine or auxiliary refrigeration engine of 
a heavy-duty vehicle, for a period greater than 
15 consecutive minutes, at a time at which the 
main drive engine is not engaged in gear. 
(B) EXCLUSIONS.—The term ‘‘long-dura-
tion idling’’ does not include the operation of a 
main drive engine or auxiliary refrigeration en-
gine of a heavy-duty vehicle during a routine 
stoppage associated with traffic movement or 
congestion. 
(b) IDLE REDUCTION TECHNOLOGY BENEFITS, PRO-
GRAMS, AND STUDIES.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of enactment of this Act, the Administrator 
shall— 
(A)(i) commence a review of the mobile 
source air emission models of the Environ-
mental Protection Agency used under the Clean 
Air Act (42 U.S.C. 7401 et seq.) to determine 
whether the models accurately reflect the emis-
sions resulting from long-duration idling of
469 
heavy-duty vehicles and other vehicles and en-
gines; and 
(ii) update those models as the Adminis-
trator determines to be appropriate; and 
(B)(i) commence a review of the emission 
reductions achieved by the use of idle reduction 
technology; and 
(ii) complete such revisions of the regula-
tions and guidance of the Environmental Pro-
tection Agency as the Administrator determines 
to be appropriate. 
(2) DEADLINE
FOR
COMPLETION.—Not later 
than 180 days after the date of enactment of this 
Act, the Administrator shall— 
(A) complete the reviews under subpara-
graphs (A)(i) and (B)(i) of paragraph (1); and 
(B) prepare and make publicly available 1 
or more reports on the results of the reviews. 
(3) DISCRETIONARY INCLUSIONS.—The reviews 
under subparagraphs (A)(i) and (B)(i) of paragraph 
(1) and the reports under paragraph (2)(B) may ad-
dress the potential fuel savings resulting from use of 
idle reduction technology. 
(4) 
IDLE
REDUCTION
DEPLOYMENT
PRO-
GRAM.—
470 
(A) ESTABLISHMENT.— 
(i) IN GENERAL.—Not later than 90 
days after the date of enactment of this 
Act, the Administrator, in consultation 
with the Secretary of Transportation, shall 
establish a program to support deployment 
of idle reduction technology. 
(ii) 
PRIORITY.—The 
Administrator 
shall give priority to the deployment of idle 
reduction technology based on beneficial ef-
fects on air quality and ability to lessen 
the emission of criteria air pollutants. 
(B) FUNDING.— 
(i) AUTHORIZATION
OF
APPROPRIA-
TIONS.—There are authorized to be appro-
priated to the Administrator to carry out 
subparagraph (A) $19,500,000 for fiscal 
year 2004, $30,000,000 for fiscal year 
2005, and $45,000,000 for fiscal year 
2006. 
(ii) COST SHARING.—Subject to clause 
(iii), the Administrator shall require at 
least 50 percent of the costs directly and 
specifically related to any project under
471 
this section to be provided from non-Fed-
eral sources. 
(iii) NECESSARY
AND
APPROPRIATE 
REDUCTIONS.—The Administrator may re-
duce the non-Federal requirement under 
clause (ii) if the Administrator determines 
that the reduction is necessary and appro-
priate to meet the objectives of this sec-
tion. 
(5) IDLING LOCATION STUDY.— 
(A) IN GENERAL.—Not later than 90 days 
after the date of enactment of this Act, the Ad-
ministrator, in consultation with the Secretary 
of Transportation, shall commence a study to 
analyze all locations at which heavy-duty vehi-
cles stop for long-duration idling, including— 
(i) truck stops; 
(ii) rest areas; 
(iii) border crossings; 
(iv) ports; 
(v) transfer facilities; and 
(vi) private terminals. 
(B) DEADLINE
FOR
COMPLETION.—Not 
later than 180 days after the date of enactment 
of this Act, the Administrator shall—
472 
(i) complete the study under subpara-
graph (A); and 
(ii) prepare and make publicly avail-
able 1 or more reports of the results of the 
study. 
(c) VEHICLE WEIGHT EXEMPTION.—Section 127(a) 
of title 23, United States Code, is amended— 
(1) by designating the first through eleventh 
sentences as paragraphs (1) through (11), respec-
tively; and 
(2) by adding at the end the following: 
‘‘(12) HEAVY DUTY VEHICLES.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), in order to promote reduc-
tion of fuel use and emissions because of engine 
idling, the maximum gross vehicle weight limit 
and the axle weight limit for any heavy-duty ve-
hicle equipped with an idle reduction technology 
shall be increased by a quantity necessary to 
compensate for the additional weight of the idle 
reduction system. 
‘‘(B) MAXIMUM WEIGHT INCREASE.—The 
weight increase under subparagraph (A) shall 
be not greater than 250 pounds.
473 
‘‘(C) PROOF.—On request by a regulatory 
agency or law enforcement agency, the vehicle 
operator shall provide proof (through dem-
onstration or certification) that— 
‘‘(i) the idle reduction technology is 
fully functional at all times; and 
‘‘(ii) the 250-pound gross weight in-
crease is not used for any purpose other 
than the use of idle reduction technology 
described in subparagraph (A).’’. 
SEC. 757. BIODIESEL ENGINE TESTING PROGRAM. 
(a) IN GENERAL.—Not later that 180 days after the 
date of enactment of this Act, the Secretary shall initiate 
a partnership with diesel engine, diesel fuel injection sys-
tem, and diesel vehicle manufacturers and diesel and bio-
diesel fuel providers, to include biodiesel testing in ad-
vanced diesel engine and fuel system technology. 
(b) SCOPE.—The program shall provide for testing 
to determine the impact of biodiesel from different sources 
on current and future emission control technologies, with 
emphasis on— 
(1) the impact of biodiesel on emissions war-
ranty, in-use liability, and antitampering provisions; 
(2) the impact of long-term use of biodiesel on 
engine operations;
474 
(3) the options for optimizing these technologies 
for both emissions and performance when switching 
between biodiesel and diesel fuel; and 
(4) the impact of using biodiesel in these fuel-
ing systems and engines when used as a blend with 
2006 Environmental Protection Agency-mandated 
diesel fuel containing a maximum of 15-parts-per- 
million sulfur content. 
(c) REPORT.—Not later than 2 years after the date 
of enactment of this Act, the Secretary shall provide an 
interim report to Congress on the findings of the program, 
including a comprehensive analysis of impacts from bio-
diesel on engine operation for both existing and expected 
future diesel technologies, and recommendations for en-
suring optimal emissions reductions and engine perform-
ance with biodiesel. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated $5,000,000 for each of 
fiscal years 2004 through 2008 to carry out this section. 
(e) DEFINITION.—For purposes of this section, the 
term ‘‘biodiesel’’ means a diesel fuel substitute produced 
from nonpetroleum renewable resources that meets the 
registration requirements for fuels and fuel additives es-
tablished by the Environmental Protection Agency under 
section 211 of the Clean Air Act (42 U.S.C. 7545) and
475 
that meets the American Society for Testing and Materials 
D6751–02a Standard Specification for Biodiesel Fuel 
(B100) Blend Stock for Distillate Fuels. 
SEC. 758. HIGH OCCUPANCY VEHICLE EXCEPTION. 
Notwithstanding section 102(a) of title 23, United 
States Code, a State may permit a vehicle with fewer than 
2 occupants to operate in high occupancy vehicle lanes if 
the vehicle— 
(1) is a dedicated vehicle (as defined in section 
301 of the Energy Policy Act of 1992 (42 U.S. 
13211)); or 
(2) is a hybrid vehicle (as defined by the State 
for the purpose of this section). 
Subtitle E—Automobile Efficiency 
SEC. 771. AUTHORIZATION OF APPROPRIATIONS FOR IM-
PLEMENTATION 
AND 
ENFORCEMENT 
OF 
FUEL ECONOMY STANDARDS. 
In addition to any other funds authorized by law, 
there are authorized to be appropriated to the National 
Highway Traffic Safety Administration to carry out its ob-
ligations with respect to average fuel economy standards 
$2,000,000 for each of fiscal years 2004 through 2008.
476 
SEC. 772. REVISED CONSIDERATIONS FOR DECISIONS ON 
MAXIMUM FEASIBLE AVERAGE FUEL ECON-
OMY. 
Section 32902(f) of title 49, United States Code, is 
amended to read as follows: 
‘‘(f) CONSIDERATIONS FOR DECISIONS ON MAXIMUM 
FEASIBLE AVERAGE FUEL ECONOMY.—When deciding 
maximum feasible average fuel economy under this sec-
tion, the Secretary of Transportation shall consider the 
following matters: 
‘‘(1) Technological feasibility. 
‘‘(2) Economic practicability. 
‘‘(3) The effect of other motor vehicle standards 
of the Government on fuel economy. 
‘‘(4) The need of the United States to conserve 
energy. 
‘‘(5) The effects of fuel economy standards on 
passenger automobiles, nonpassenger automobiles, 
and occupant safety. 
‘‘(6) The effects of compliance with average fuel 
economy standards on levels of automobile industry 
employment in the United States.’’.
477 
SEC. 773. EXTENSION OF MAXIMUM FUEL ECONOMY IN-
CREASE FOR ALTERNATIVE FUELED VEHI-
CLES. 
(a) MANUFACTURING INCENTIVES.—Section 32905 
of title 49, United States Code, is amended— 
(1) in each of subsections (b) and (d), by strik-
ing ‘‘1993–2004’’ and inserting ‘‘1993–2008’’; 
(2) in subsection (f), by striking ‘‘2001’’ and 
inserting ‘‘2005’’; and 
(3) in subsection (f)(1), by striking ‘‘2004’’ and 
inserting ‘‘2008’’. 
(b) MAXIMUM FUEL ECONOMY INCREASE.—Sub-
section (a)(1) of section 32906 of title 49, United States 
Code, is amended— 
(1) in subparagraph (A), by striking ‘‘the model 
years 1993–2004’’ and inserting ‘‘model years 
1993–2008’’; and 
(2) in subparagraph (B), by striking ‘‘the model 
years 2005–2008’’ and inserting ‘‘model years 
2009–2012’’. 
SEC. 774. STUDY OF FEASIBILITY AND EFFECTS OF REDUC-
ING USE OF FUEL FOR AUTOMOBILES. 
(a) IN GENERAL.—Not later than 30 days after the 
date of the enactment of this Act, the Administrator of 
the National Highway Traffic Safety Administration shall 
initiate a study of the feasibility and effects of reducing
478 
by model year 2012, by a significant percentage, the 
amount of fuel consumed by automobiles. 
(b) SUBJECTS OF STUDY.—The study under this sec-
tion shall include— 
(1) examination of, and recommendation of al-
ternatives to, the policy under current Federal law 
of establishing average fuel economy standards for 
automobiles and requiring each automobile manufac-
turer to comply with average fuel economy standards 
that apply to the automobiles it manufactures; 
(2) examination of how automobile manufactur-
ers could contribute toward achieving the reduction 
referred to in subsection (a); 
(3) examination of the potential of fuel cell 
technology in motor vehicles in order to determine 
the extent to which such technology may contribute 
to achieving the reduction referred to in subsection 
(a); and 
(4) examination of the effects of the reduction 
referred to in subsection (a) on— 
(A) gasoline supplies; 
(B) the automobile industry, including 
sales of automobiles manufactured in the 
United States; 
(C) motor vehicle safety; and
479 
(D) air quality. 
(c) REPORT.—The Administrator shall submit to 
Congress a report on the findings, conclusion, and rec-
ommendations of the study under this section by not later 
than 1 year after the date of the enactment of this Act. 
TITLE VIII—HYDROGEN 
SEC. 801. DEFINITIONS. 
In this title: 
(1) ADVISORY COMMITTEE.—The term ‘‘Advi-
sory Committee’’ means the Hydrogen Technical and 
Fuel Cell Advisory Committee established under sec-
tion 805. 
(2) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Energy. 
(3) FUEL CELL.—The term ‘‘fuel cell’’ means a 
device that directly converts the chemical energy of 
a fuel and an oxidant into electricity by an electro-
chemical process taking place at separate electrodes 
in the device. 
(4) INFRASTRUCTURE.—The term ‘‘infrastruc-
ture’’ means the equipment, systems, or facilities 
used to produce, distribute, deliver, or store hydro-
gen. 
(5) LIGHT DUTY VEHICLE.—The term ‘‘light 
duty vehicle’’ means a car or truck classified by the
480 
Department of Transportation as a Class I or IIA 
vehicle. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
SEC. 802. PLAN. 
Not later than 6 months after the date of enactment 
of this Act, the Secretary shall transmit to Congress a 
coordinated plan for the programs described in this title 
and any other programs of the Department that are di-
rectly related to fuel cells or hydrogen. The plan shall de-
scribe, at a minimum— 
(1) the agenda for the next 5 years for the pro-
grams authorized under this title, including the 
agenda for each activity enumerated in section 
803(a); 
(2) the types of entities that will carry out the 
activities under this title and what role each entity 
is expected to play; 
(3) the milestones that will be used to evaluate 
the programs for the next 5 years; 
(4) the most significant technical and nontech-
nical hurdles that stand in the way of achieving the 
goals described in section 803(b), and how the pro-
grams will address those hurdles; and
481 
(5) the policy assumptions that are implicit in 
the plan, including any assumptions that would af-
fect the sources of hydrogen or the marketability of 
hydrogen-related products. 
SEC. 803. PROGRAMS. 
(a) ACTIVITIES.—The Secretary, in partnership with 
the private sector, shall conduct programs to address— 
(1) production of hydrogen from diverse energy 
sources, including— 
(A) fossil fuels, which may include carbon 
capture and sequestration; 
(B) hydrogen-carrier fuels (including eth-
anol and methanol); 
(C) renewable energy resources, including 
biomass; and 
(D) nuclear energy; 
(2) use of hydrogen for commercial, industrial, 
and residential electric power generation; 
(3) safe delivery of hydrogen or hydrogen-car-
rier fuels, including— 
(A) transmission by pipeline and other dis-
tribution methods; and 
(B) convenient and economic refueling of 
vehicles either at central refueling stations or 
through distributed on-site generation;
482 
(4) advanced vehicle technologies, including— 
(A) engine and emission control systems; 
(B) energy storage, electric propulsion, and 
hybrid systems; 
(C) automotive materials; and 
(D) other advanced vehicle technologies; 
(5) storage of hydrogen or hydrogen-carrier 
fuels, including development of materials for safe 
and economic storage in gaseous, liquid, or solid 
form at refueling facilities and onboard vehicles; 
(6) development of safe, durable, affordable, 
and efficient fuel cells, including fuel-flexible fuel cell 
power systems, improved manufacturing processes, 
high-temperature membranes, cost-effective fuel 
processing for natural gas, fuel cell stack and system 
reliability, low temperature operation, and cold start 
capability; 
(7) development, after consultation with the pri-
vate sector, of necessary codes and standards (in-
cluding international codes and standards and vol-
untary consensus standards adopted in accordance 
with OMB Circular A–119) and safety practices for 
the production, distribution, storage, and use of hy-
drogen, hydrogen-carrier fuels, and related products; 
and
483 
(8) a public education program to develop im-
proved knowledge and acceptability of hydrogen- 
based systems. 
(b) PROGRAM GOALS.— 
(1) VEHICLES.—For vehicles, the goals of the 
program are— 
(A) to enable a commitment by auto-
makers no later than year 2015 to offer safe, 
affordable, and technically viable hydrogen fuel 
cell vehicles in the mass consumer market; and 
(B) to enable production, delivery, and ac-
ceptance by consumers of model year 2020 hy-
drogen fuel cell and other hydrogen-powered ve-
hicles that will have— 
(i) a range of at least 300 miles; 
(ii) improved performance and ease of 
driving; 
(iii) safety and performance com-
parable to vehicle technologies in the mar-
ket; and 
(iv) when compared to light duty vehi-
cles in model year 2003— 
(I) fuel economy that is substan-
tially higher;
484 
(II) substantially lower emissions 
of air pollutants; and 
(III) equivalent or improved vehi-
cle fuel system crash integrity and oc-
cupant protection. 
(2) HYDROGEN ENERGY AND ENERGY INFRA-
STRUCTURE.—For hydrogen energy and energy in-
frastructure, the goals of the program are to enable 
a commitment not later than 2015 that will lead to 
infrastructure by 2020 that will provide— 
(A) safe and convenient refueling; 
(B) improved overall efficiency; 
(C) widespread availability of hydrogen 
from domestic energy sources through— 
(i) production, with consideration of 
emissions levels; 
(ii) delivery, including transmission by 
pipeline and other distribution methods for 
hydrogen; and 
(iii) storage, including storage in sur-
face transportation vehicles; 
(D) hydrogen for fuel cells, internal com-
bustion engines, and other energy conversion 
devices for portable, stationary, and transpor-
tation applications; and
485 
(E) other technologies consistent with the 
Department’s plan. 
(3) FUEL CELLS.—The goals for fuel cells and 
their portable, stationary, and transportation appli-
cations are to enable— 
(A) safe, economical, and environmentally 
sound hydrogen fuel cells; 
(B) fuel cells for light duty and other vehi-
cles; and 
(C) other technologies consistent with the 
Department’s plan. 
(c) DEMONSTRATION.—In carrying out the programs 
under this section, the Secretary shall fund a limited num-
ber of demonstration projects, consistent with a deter-
mination of the maturity, cost-effectiveness, and environ-
mental impacts of technologies supporting each project. In 
selecting projects under this subsection, the Secretary 
shall, to the extent practicable and in the public interest, 
select projects that— 
(1) involve using hydrogen and related products 
at existing facilities or installations, such as existing 
office buildings, military bases, vehicle fleet centers, 
transit bus authorities, or units of the National Park 
System;
486 
(2) depend on reliable power from hydrogen to 
carry out essential activities; 
(3) lead to the replication of hydrogen tech-
nologies and draw such technologies into the market-
place; 
(4) include vehicle, portable, and stationary 
demonstrations of fuel cell and hydrogen-based en-
ergy technologies; 
(5) address the interdependency of demand for 
hydrogen fuel cell applications and hydrogen fuel in-
frastructure; 
(6) raise awareness of hydrogen technology 
among the public; 
(7) facilitate identification of an optimum tech-
nology among competing alternatives; 
(8) address distributed generation using renew-
able sources; and 
(9) address applications specific to rural or re-
mote locations, including isolated villages and is-
lands, the National Park System, and tribal entities. 
The Secretary shall give preference to projects which ad-
dress multiple elements contained in paragraphs (1) 
through (9). 
(d) DEPLOYMENT.—In carrying out the programs 
under this section, the Secretary shall, in partnership with
487 
the private sector, conduct activities to facilitate the de-
ployment of hydrogen energy and energy infrastructure, 
fuel cells, and advanced vehicle technologies. 
(e) FUNDING.— 
(1) IN
GENERAL.—The Secretary shall carry 
out the programs under this section using a competi-
tive, merit-based review process and consistent with 
the generally applicable Federal laws and regulations 
governing awards of financial assistance, contracts, 
or other agreements. 
(2) RESEARCH CENTERS.—Activities under this 
section may be carried out by funding nationally rec-
ognized university-based or Federal laboratory re-
search centers. 
(f) COST SHARING.— 
(1) RESEARCH AND DEVELOPMENT.—Except as 
otherwise provided in this title, for research and de-
velopment programs carried out under this title the 
Secretary shall require a commitment from non-Fed-
eral sources of at least 20 percent of the cost of the 
project. The Secretary may reduce or eliminate the 
non-Federal requirement under this paragraph if the 
Secretary determines that the research and develop-
ment is of a basic or fundamental nature or involves 
technical analyses or educational activities.
488 
(2) DEMONSTRATION AND COMMERCIAL APPLI-
CATION.—Except as otherwise provided in this title, 
the Secretary shall require at least 50 percent of the 
costs directly and specifically related to any dem-
onstration or commercial application project under 
this title to be provided from non-Federal sources. 
The Secretary may reduce the non-Federal require-
ment under this paragraph if the Secretary deter-
mines that the reduction is necessary and appro-
priate considering the technological risks involved in 
the project and is necessary to meet the objectives 
of this title. 
(3) CALCULATION OF AMOUNT.—In calculating 
the amount of the non-Federal commitment under 
paragraph (1) or (2), the Secretary may include per-
sonnel, services, equipment, and other resources. 
(4) SIZE OF NON-FEDERAL SHARE.—The Sec-
retary may consider the size of the non-Federal 
share in selecting projects. 
(g) DISCLOSURE.—Section 623 of the Energy Policy 
Act of 1992 (42 U.S.C. 13293) relating to the protection 
of information shall apply to projects carried out through 
grants, cooperative agreements, or contracts under this 
title.
489 
SEC. 804. INTERAGENCY TASK FORCE. 
(a) ESTABLISHMENT.—Not later than 120 days after 
the date of enactment of this Act, the President shall es-
tablish an interagency task force chaired by the Secretary 
with representatives from each of the following: 
(1) The Office of Science and Technology Pol-
icy within the Executive Office of the President. 
(2) The Department of Transportation. 
(3) The Department of Defense. 
(4) The Department of Commerce (including 
the National Institute of Standards and Tech-
nology). 
(5) The Department of State. 
(6) The Environmental Protection Agency. 
(7) The National Aeronautics and Space Ad-
ministration. 
(8) Other Federal agencies as the Secretary de-
termines appropriate. 
(b) DUTIES.— 
(1) PLANNING.—The interagency task force 
shall work toward— 
(A) a safe, economical, and environ-
mentally sound fuel infrastructure for hydrogen 
and hydrogen-carrier fuels, including an infra-
structure that supports buses and other fleet 
transportation;
490 
(B) fuel cells in government and other ap-
plications, including portable, stationary, and 
transportation applications; 
(C) distributed power generation, including 
the generation of combined heat, power, and 
clean fuels including hydrogen; 
(D) uniform hydrogen codes, standards, 
and safety protocols; and 
(E) vehicle hydrogen fuel system integrity 
safety performance. 
(2) ACTIVITIES.—The interagency task force 
may organize workshops and conferences, may issue 
publications, and may create databases to carry out 
its duties. The interagency task force shall— 
(A) foster the exchange of generic, non-
proprietary information and technology among 
industry, academia, and government; 
(B) develop and maintain an inventory and 
assessment of hydrogen, fuel cells, and other 
advanced technologies, including the commercial 
capability of each technology for the economic 
and environmentally safe production, distribu-
tion, delivery, storage, and use of hydrogen;
491 
(C) integrate technical and other informa-
tion made available as a result of the programs 
and activities under this title; 
(D) promote the marketplace introduction 
of infrastructure for hydrogen fuel vehicles; and 
(E) conduct an education program to pro-
vide hydrogen and fuel cell information to po-
tential end-users. 
(c) AGENCY COOPERATION.—The heads of all agen-
cies, including those whose agencies are not represented 
on the interagency task force, shall cooperate with and 
furnish information to the interagency task force, the Ad-
visory Committee, and the Department. 
SEC. 805. ADVISORY COMMITTEE. 
(a) ESTABLISHMENT.—The Hydrogen Technical and 
Fuel Cell Advisory Committee is established to advise the 
Secretary on the programs and activities under this title. 
(b) MEMBERSHIP.— 
(1) MEMBERS.—The Advisory Committee shall 
be comprised of not fewer than 12 nor more than 25 
members. The members shall be appointed by the 
Secretary to represent domestic industry, academia, 
professional societies, government agencies, Federal 
laboratories, previous advisory panels, and financial, 
environmental, and other appropriate organizations
492 
based on the Department’s assessment of the tech-
nical and other qualifications of committee members 
and the needs of the Advisory Committee. 
(2) TERMS.—The term of a member of the Ad-
visory Committee shall not be more than 3 years. 
The Secretary may appoint members of the Advisory 
Committee in a manner that allows the terms of the 
members serving at any time to expire at spaced in-
tervals so as to ensure continuity in the functioning 
of the Advisory Committee. A member of the Advi-
sory Committee whose term is expiring may be re-
appointed. 
(3) CHAIRPERSON.—The Advisory Committee 
shall have a chairperson, who is elected by the mem-
bers from among their number. 
(c) REVIEW.—The Advisory Committee shall review 
and make recommendations to the Secretary on— 
(1) the implementation of programs and activi-
ties under this title; 
(2) the safety, economical, and environmental 
consequences of technologies for the production, dis-
tribution, delivery, storage, or use of hydrogen en-
ergy and fuel cells; and 
(3) the plan under section 802. 
(d) RESPONSE.—
493 
(1) CONSIDERATION OF RECOMMENDATIONS.— 
The Secretary shall consider, but need not adopt, 
any recommendations of the Advisory Committee 
under subsection (c). 
(2) BIENNIAL
REPORT.—The Secretary shall 
transmit a biennial report to Congress describing 
any recommendations made by the Advisory Com-
mittee since the previous report. The report shall in-
clude a description of how the Secretary has imple-
mented or plans to implement the recommendations, 
or an explanation of the reasons that a recommenda-
tion will not be implemented. The report shall be 
transmitted along with the President’s budget pro-
posal. 
(e) SUPPORT.—The Secretary shall provide resources 
necessary in the judgment of the Secretary for the Advi-
sory Committee to carry out its responsibilities under this 
title. 
SEC. 806. EXTERNAL REVIEW. 
(a) PLAN.—The Secretary shall enter into an ar-
rangement with the National Academy of Sciences to re-
view the plan prepared under section 802, which shall be 
completed not later than 6 months after the Academy re-
ceives the plan. Not later than 45 days after receiving the 
review, the Secretary shall transmit the review to Congress
494 
along with a plan to implement the review’s recommenda-
tions or an explanation of the reasons that a recommenda-
tion will not be implemented. 
(b) ADDITIONAL REVIEW.—The Secretary shall enter 
into an arrangement with the National Academy of 
Sciences under which the Academy will review the pro-
grams under section 803 during the fourth year following 
the date of enactment of this Act. The Academy’s review 
shall include the research priorities and technical mile-
stones, and evaluate the progress toward achieving them. 
The review shall be completed not later than 5 years after 
the date of enactment of this Act. Not later than 45 days 
after receiving the review, the Secretary shall transmit the 
review to Congress along with a plan to implement the 
review’s recommendations or an explanation for the rea-
sons that a recommendation will not be implemented. 
SEC. 807. MISCELLANEOUS PROVISIONS. 
(a) REPRESENTATION.—The Secretary may rep-
resent the United States interests with respect to activities 
and programs under this title, in coordination with the 
Department of Transportation, the National Institute of 
Standards and Technology, and other relevant Federal 
agencies, before governments and nongovernmental orga-
nizations including—
495 
(1) other Federal, State, regional, and local 
governments and their representatives; 
(2) industry and its representatives, including 
members of the energy and transportation indus-
tries; and 
(3) in consultation with the Department of 
State, foreign governments and their representatives 
including international organizations. 
(b) REGULATORY AUTHORITY.—Nothing in this title 
shall be construed to alter the regulatory authority of the 
Department. 
SEC. 808. SAVINGS CLAUSE. 
Nothing in this title shall be construed to affect the 
authority of the Secretary of Transportation that may 
exist prior to the date of enactment of this Act with re-
spect to— 
(1) research into, and regulation of, hydrogen- 
powered vehicles fuel systems integrity, standards, 
and safety under subtitle VI of title 49, United 
States Code; 
(2) regulation of hazardous materials transpor-
tation under chapter 51 of title 49, United States 
Code; 
(3) regulation of pipeline safety under chapter 
601 of title 49, United States Code;
496 
(4) encouragement and promotion of research, 
development, and deployment activities relating to 
advanced vehicle technologies under section 5506 of 
title 49, United States Code; 
(5) regulation of motor vehicle safety under 
chapter 301 of title 49, United States Code; 
(6) automobile fuel economy under chapter 329 
of title 49, United States Code; or 
(7) representation of the interests of the United 
States with respect to the activities and programs 
under the authority of title 49, United States Code. 
SEC. 809. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Sec-
retary to carry out this title, in addition to any amounts 
made available for these purposes under other Acts— 
(1) $273,500,000 for fiscal year 2004; 
(2) $375,000,000 for fiscal year 2005; 
(3) $450,000,000 for fiscal year 2006; 
(4) $500,000,000 for fiscal year 2007; and 
(5) $550,000,000 for fiscal year 2008. 
TITLE IX—RESEARCH AND 
DEVELOPMENT 
SEC. 901. GOALS. 
(a) IN GENERAL.—The Secretary shall conduct a bal-
anced set of programs of energy research, development,
497 
demonstration, and commercial application to support 
Federal energy policy and programs by the Department. 
Such programs shall be focused on— 
(1) increasing the efficiency of all energy inten-
sive sectors through conservation and improved tech-
nologies; 
(2) promoting diversity of energy supply; 
(3) decreasing the Nation’s dependence on for-
eign energy supplies; 
(4) improving United States energy security; 
and 
(5) decreasing the environmental impact of en-
ergy-related activities. 
(b) GOALS.—The Secretary shall publish measurable 
5-year cost and performance-based goals with each annual 
budget submission in at least the following areas: 
(1) Energy efficiency for buildings, energy-con-
suming industries, and vehicles. 
(2) Electric energy generation (including dis-
tributed generation), transmission, and storage. 
(3) Renewable energy technologies including 
wind power, photovoltaics, solar thermal systems, 
geothermal energy, hydrogen-fueled systems, bio-
mass-based systems, biofuels, and hydropower.
498 
(4) Fossil energy including power generation, 
onshore and offshore oil and gas resource recovery, 
and transportation. 
(5) Nuclear energy including programs for ex-
isting and advanced reactors and education of future 
specialists. 
(c) PUBLIC COMMENT.—The Secretary shall provide 
mechanisms for input on the annually published goals 
from industry, university, and other public sources. 
(d) EFFECT OF GOALS.— 
(1) NO NEW AUTHORITY OR REQUIREMENT.— 
Nothing in subsection (a) or the annually published 
goals 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 sup-
port the establishment of regulatory standards 
or regulatory requirements; or 
(C) alter the authority of the Secretary to 
make grants or other awards. 
(2) NO
LIMITATION.—Nothing in this sub-
section shall be construed to limit the authority of 
the Secretary to impose conditions on grants or
500 
(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 Labora-
tory. 
(K) Oak Ridge National Laboratory. 
(L) Pacific Northwest National Labora-
tory. 
(M) Princeton Plasma Physics Laboratory. 
(N) Sandia National Laboratories. 
(O) Stanford Linear Accelerator Center. 
(P) Thomas Jefferson National Accelerator 
Facility. 
(5) NONMILITARY ENERGY LABORATORY.—The 
term ‘‘nonmilitary energy laboratory’’ means the lab-
oratories listed in paragraph (4), except for those 
listed in subparagraphs (G), (H), and (N). 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(7) SINGLE-PURPOSE
RESEARCH
FACILITY.— 
The term ‘‘single-purpose research facility’’ means
501 
any of the primarily single-purpose entities owned by 
the Department or any other organization of the De-
partment designated by the Secretary. 
Subtitle A—Energy Efficiency 
SEC. 904. ENERGY EFFICIENCY. 
(a) IN GENERAL.—The following sums are author-
ized to be appropriated to the Secretary for energy effi-
ciency and conservation research, development, dem-
onstration, and commercial application activities, includ-
ing activities authorized 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. 
(5) For fiscal year 2008, $920,000,000. 
(b) ALLOCATIONS.—From amounts authorized under 
subsection (a), the following sums are authorized: 
(1) For activities under section 905— 
(A) for fiscal year 2004, $20,000,000; 
(B) for fiscal year 2005, $30,000,000; 
(C) for fiscal year 2006, $50,000,000; 
(D) for fiscal year 2007, $50,000,000; and 
(E) for fiscal year 2008, $50,000,000. 
(2) For activities under section 907— 
(A) for fiscal year 2004, $4,000,000; and
502 
(B) for each of fiscal years 2005 through 
2008, $7,000,000. 
(3) For activities under section 908— 
(A) for fiscal year 2004, $20,000,000; 
(B) for fiscal year 2005, $25,000,000; 
(C) for fiscal year 2006, $30,000,000; 
(D) for fiscal year 2007, $35,000,000; and 
(E) for fiscal year 2008, $40,000,000. 
(4) 
For 
activities 
under 
section 
909, 
$2,000,000 for each of fiscal years 2005 through 
2008. 
(c) EXTENDED AUTHORIZATION.—There are author-
ized to be appropriated to the Secretary for activities 
under section 905, $50,000,000 for each of fiscal years 
2009 through 2013. 
(d) LIMITATION ON USE OF FUNDS.—None of the 
funds authorized to be appropriated under this section 
may be used for— 
(1) the issuance and implementation of energy 
efficiency regulations; 
(2) the Weatherization Assistance Program 
under part A of title IV of the Energy Conservation 
and Production Act (42 U.S.C. 6861 et seq.);
503 
(3) the State Energy Program under part D of 
title III of the Energy Policy and Conservation Act 
(42 U.S.C. 6321 et seq.); or 
(4) the Federal Energy Management Program 
under part 3 of title V of the National Energy Con-
servation Policy Act (42 U.S.C. 8251 et seq.). 
SEC. 905. 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 to develop advanced solid-state organic and inor-
ganic lighting technologies based on white light emitting 
diodes that, compared to incandescent and fluorescent 
lighting technologies, are longer lasting; more energy-effi-
cient; and cost-competitive, and have less environmental 
impact. 
(c) INDUSTRY ALLIANCE.—The Secretary shall, not 
later than 3 months after the date of enactment of this 
section, competitively select an Industry Alliance to rep-
resent participants that are private, for-profit firms which, 
as a group, are broadly representative of United States
504 
solid state lighting research, development, infrastructure, 
and manufacturing expertise as a whole. 
(d) RESEARCH.— 
(1) IN
GENERAL.—The Secretary shall carry 
out the research activities of the Next Generation 
Lighting Initiative through competitively awarded 
grants to researchers, including Industry Alliance 
participants, National Laboratories, and institutions 
of higher education. 
(2) ASSISTANCE
FROM
THE
INDUSTRY
ALLI-
ANCE.—The Secretary shall annually solicit from the 
Industry Alliance— 
(A) comments to identify solid-state light-
ing technology needs; 
(B) assessment of the progress of the Ini-
tiative’s research activities; and 
(C) assistance in annually updating solid- 
state lighting technology roadmaps. 
(3) AVAILABILITY OF INFORMATION AND ROAD-
MAPS.—The information and roadmaps under para-
graph (2) shall be available to the public and public 
response shall be solicited by the Secretary. 
(e) DEVELOPMENT, DEMONSTRATION, AND COMMER-
CIAL APPLICATION.—The Secretary shall carry out a de-
velopment, demonstration, and commercial application
559 
tium the information necessary for the program 
consortium to carry out its responsibilities 
under this paragraph. 
(g) ADMINISTRATIVE COSTS.— 
(1) IN GENERAL.—To compensate the program 
consortium for carrying out its activities under this 
section, the Secretary shall provide to the program 
consortium funds sufficient to administer the pro-
gram. This compensation may include a manage-
ment fee consistent with Department of Energy con-
tracting practices and procedures. 
(2) ADVANCE.—The Secretary shall advance 
funds to the program consortium upon selection of 
the consortium, which shall be deducted from 
amounts to be provided under paragraph (1). 
(h) AUDIT.—The Secretary shall retain an inde-
pendent, commercial auditor to determine the extent to 
which funds provided to the program consortium, and 
funds provided under awards made under subsection (f), 
have been expended in a manner consistent with the pur-
poses and requirements of this part. The auditor shall 
transmit a report annually to the Secretary, who shall 
transmit the report to Congress, along with a plan to rem-
edy any deficiencies cited in the report.