356
gust 1, 2002’’ each place it appears and inserting ‘‘Decem-
ber 31, 2023’’.
SEC. 603. MAXIMUM ASSESSMENT.
Section 170 of the Atomic Energy Act of 1954 (42
U.S.C. 2210) is amended—
(1) in the second proviso of the third sentence
of subsection b.(1)—
(A) by striking ‘‘$63,000,000’’ and insert-
ing ‘‘$95,800,000’’; and
(B) by striking ‘‘$10,000,000 in any 1
year’’ and inserting ‘‘$15,000,000 in any 1 year
(subject to adjustment for inflation under sub-
section t.)’’; and
(2) in subsection t.(1)—
(A) by inserting ‘‘total and annual’’ after
‘‘amount of the maximum’’;
(B) by striking ‘‘the date of the enactment
of the Price-Anderson Amendments Act of
1988’’ and inserting ‘‘August 20, 2003’’; and
(C) in subparagraph (A), by striking ‘‘such
date of enactment’’ and inserting ‘‘August 20,
2003’’.
SEC. 604. DEPARTMENT OF ENERGY LIABILITY LIMIT.
(a) INDEMNIFICATION OF DEPARTMENT OF ENERGY
CONTRACTORS.—Section 170 d. of the Atomic Energy Act
357
of 1954 (42 U.S.C. 2210(d)) is amended by striking para-
graph (2) and inserting the following:
‘‘(2) In an agreement of indemnification entered into
under paragraph (1), the Secretary—
‘‘(A) may require the contractor to provide and
maintain financial protection of such a type and in
such amounts as the Secretary shall determine to be
appropriate to cover public liability arising out of or
in connection with the contractual activity; and
‘‘(B) shall indemnify the persons indemnified
against such liability above the amount of the finan-
cial 
protection 
required, 
in 
the 
amount 
of
$10,000,000,000 (subject to adjustment for inflation
under subsection t.), in the aggregate, for all per-
sons indemnified in connection with the contract and
for each nuclear incident, including such legal costs
of the contractor as are approved by the Secretary.’’.
(b) CONTRACT AMENDMENTS.—Section 170 d. of the
Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is further
amended by striking paragraph (3) and inserting the
following—
‘‘(3) All agreements of indemnification under which
the Department of Energy (or its predecessor agencies)
may be required to indemnify any person under this sec-
tion shall be deemed to be amended, on the date of enact-
358
ment of the Price-Anderson Amendments Act of 2003, to
reflect the amount of indemnity for public liability and any
applicable financial protection required of the contractor
under this subsection.’’.
(c) LIABILITY LIMIT.—Section 170 e.(1)(B) of the
Atomic Energy Act of 1954 (42 U.S.C. 2210(e)(1)(B)) is
amended—
(1) by striking ‘‘the maximum amount of finan-
cial protection required under subsection b. or’’; and
(2) by striking ‘‘paragraph (3) of subsection d.,
whichever amount is more’’ and inserting ‘‘para-
graph (2) of subsection d.’’.
SEC. 605. INCIDENTS OUTSIDE THE UNITED STATES.
(a) AMOUNT
OF INDEMNIFICATION.—Section 170
d.(5) of the Atomic Energy Act of 1954 (42 U.S.C.
2210(d)(5)) is amended by striking ‘‘$100,000,000’’ and
inserting ‘‘$500,000,000’’.
(b) LIABILITY LIMIT.—Section 170 e.(4) of the
Atomic Energy Act of 1954 (42 U.S.C. 2210(e)(4)) is
amended by striking ‘‘$100,000,000’’ and inserting
‘‘$500,000,000’’.
SEC. 606. REPORTS.
Section 170 p. of the Atomic Energy Act of 1954 (42
U.S.C. 2210(p)) is amended by striking ‘‘August 1, 1998’’
and inserting ‘‘December 31, 2019’’.
359
SEC. 607. INFLATION ADJUSTMENT.
Section 170 t. of the Atomic Energy Act of 1954 (42
U.S.C. 2210(t)) is amended—
(1) by redesignating paragraph (2) as para-
graph (3); and
(2) by inserting after paragraph (1) the fol-
lowing:
‘‘(2) The Secretary shall adjust the amount of indem-
nification provided under an agreement of indemnification
under subsection d. not less than once during each 5-year
period following July 1, 2003, in accordance with the ag-
gregate percentage change in the Consumer Price Index
since—
‘‘(A) that date, in the case of the first adjust-
ment under this paragraph; or
‘‘(B) the previous adjustment under this para-
graph.’’.
SEC. 608. TREATMENT OF MODULAR REACTORS.
Section 170 b. of the Atomic Energy Act of 1954 (42
U.S.C. 2210(b)) is amended by adding at the end the fol-
lowing:
‘‘(5)(A) For purposes of this section only, the Com-
mission shall consider a combination of facilities described
in subparagraph (B) to be a single facility having a rated
capacity of 100,000 electrical kilowatts or more.
360
‘‘(B) A combination of facilities referred to in sub-
paragraph (A) is 2 or more facilities located at a single
site, each of which has a rated capacity of 100,000 elec-
trical kilowatts or more but not more than 300,000 elec-
trical kilowatts, with a combined rated capacity of not
more than 1,300,000 electrical kilowatts.’’.
SEC. 609. APPLICABILITY.
The amendments made by sections 603, 604, and 605
do not apply to a nuclear incident that occurs before the
date of the enactment of this Act.
SEC. 610. PROHIBITION ON ASSUMPTION BY UNITED
STATES GOVERNMENT OF LIABILITY FOR
CERTAIN FOREIGN INCIDENTS.
Section 170 of the Atomic Energy Act of 1954 (42
U.S.C. 2210) is amended by adding at the end the fol-
lowing new subsection:
‘‘u. PROHIBITION ON ASSUMPTION OF LIABILITY FOR
CERTAIN FOREIGN INCIDENTS.—Notwithstanding this
section or any other provision of law, no officer of the
United States or of any department, agency, or instrumen-
tality of the United States Government may enter into any
contract or other arrangement, or into any amendment or
modification of a contract or other arrangement, the pur-
pose or effect of which would be to directly or indirectly
impose liability on the United States Government, or any
361
department, agency, or instrumentality of the United
States Government, or to otherwise directly or indirectly
require an indemnity by the United States Government,
for nuclear incidents occurring in connection with the de-
sign, construction, or operation of a production facility or
utilization facility in any country whose government has
been identified by the Secretary of State as engaged in
state sponsorship of terrorist activities (specifically includ-
ing any country the government of which, as of September
11, 2001, had been determined by the Secretary of State
under section 620A(a) of the Foreign Assistance Act of
1961 (22 U.S.C. 2371(a)), section 6(j)(1) of the Export
Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)),
or section 40(d) of the Arms Export Control Act (22
U.S.C. 2780(d)) to have repeatedly provided support for
acts of international terrorism). This subsection shall not
apply to nuclear incidents occurring as a result of mis-
sions, carried out under the direction of the Secretary of
Energy, the Secretary of Defense, or the Secretary of
State, that are necessary to safely secure, store, transport,
or remove nuclear materials for nuclear safety or non-
proliferation purposes.’’.
362
SEC. 611. CIVIL PENALTIES.
(a) REPEAL
OF AUTOMATIC REMISSION.—Section
234A b.(2) of the Atomic Energy Act of 1954 (42 U.S.C.
2282a(b)(2)) is amended by striking the last sentence.
(b) LIMITATION
FOR NOT-FOR-PROFIT INSTITU-
TIONS.—Subsection d. of section 234A of the Atomic En-
ergy Act of 1954 (42 U.S.C. 2282a(d)) is amended to read
as follows:
‘‘d.(1) Notwithstanding subsection a., in the case of
any not-for-profit contractor, subcontractor, or supplier,
the total amount of civil penalties paid under subsection
a. may not exceed the total amount of fees paid within
any 1-year period (as determined by the Secretary) under
the contract under which the violation occurs.
‘‘(2) For purposes of this section, the term ‘not-for-
profit’ means that no part of the net earnings of the con-
tractor, subcontractor, or supplier inures to the benefit of
any natural person or for-profit artificial person.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall not apply to any violation of the Atomic
Energy Act of 1954 (42 U.S.C. 2011 et seq.) occurring
under a contract entered into before the date of enactment
of this section.
363
Subtitle B—General Nuclear
Matters
SEC. 621. LICENSES.
Section 103 c. of the Atomic Energy Act of 1954 (42
U.S.C. 2133(c)) is amended by inserting ‘‘from the au-
thorization to commence operations’’ after ‘‘forty years’’.
SEC. 622. NRC TRAINING PROGRAM.
(a) IN GENERAL.—In order to maintain the human
resource investment and infrastructure of the United
States in the nuclear sciences, health physics, and engi-
neering fields, in accordance with the statutory authorities
of the Nuclear Regulatory Commission relating to the ci-
vilian nuclear energy program, the Nuclear Regulatory
Commission shall carry out a training and fellowship pro-
gram to address shortages of individuals with critical nu-
clear safety regulatory skills.
(b) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There are authorized to be
appropriated to the Nuclear Regulatory Commission
to carry out this section $1,000,000 for each of fis-
cal years 2004 through 2008.
(2) 
AVAILABILITY.—Funds 
made 
available
under paragraph (1) shall remain available until ex-
pended.
364
SEC. 623. COST RECOVERY FROM GOVERNMENT AGENCIES.
Section 161 w. of the Atomic Energy Act of 1954
(42 U.S.C. 2201(w)) is amended—
(1) by striking ‘‘for or is issued’’ and all that
follows through ‘‘1702’’ and inserting ‘‘to the Com-
mission for, or is issued by the Commission, a li-
cense or certificate’’;
(2) by striking ‘‘483a’’ and inserting ‘‘9701’’;
and
(3) by striking ‘‘, of applicants for, or holders
of, such licenses or certificates’’.
SEC. 624. ELIMINATION OF PENSION OFFSET.
Section 161 of the Atomic Energy Act of 1954 (42
U.S.C. 2201) is amended by adding at the end the fol-
lowing:
‘‘y. Exempt from the application of sections 8344 and
8468 of title 5, United States Code, an annuitant who was
formerly an employee of the Commission who is hired by
the Commission as a consultant, if the Commission finds
that the annuitant has a skill that is critical to the per-
formance of the duties of the Commission.’’.
SEC. 625. ANTITRUST REVIEW.
Section 105 c. of the Atomic Energy Act of 1954 (42
U.S.C. 2135(c)) is amended by adding at the end the fol-
lowing:
365
‘‘(9) APPLICABILITY.—This subsection does not
apply to an application for a license to construct or oper-
ate a utilization facility or production facility under sec-
tion 103 or 104 b. that is filed on or after the date of
enactment of this paragraph.’’.
SEC. 626. DECOMMISSIONING.
Section 161 i. of the Atomic Energy Act of 1954 (42
U.S.C. 2201(i)) is amended—
(1) by striking ‘‘and (3)’’ and inserting ‘‘(3)’’;
and
(2) by inserting before the semicolon at the end
the following: ‘‘, and (4) to ensure that sufficient
funds will be available for the decommissioning of
any production or utilization facility licensed under
section 103 or 104 b., including standards and re-
strictions governing the control, maintenance, use,
and disbursement by any former licensee under this
Act that has control over any fund for the decom-
missioning of the facility’’.
SEC. 627. LIMITATION ON LEGAL FEE REIMBURSEMENT.
The Department of Energy shall not, except as re-
quired under a contract entered into before the date of
enactment of this Act, reimburse any contractor or sub-
contractor of the Department for any legal fees or ex-
366
penses incurred with respect to a complaint subsequent
to—
(1) an adverse determination on the merits with
respect to such complaint against the contractor or
subcontractor by the Director of the Department of
Energy’s Office of Hearings and Appeals pursuant
to part 708 of title 10, Code of Federal Regulations,
or by a Department of Labor Administrative Law
Judge pursuant to section 211 of the Energy Reor-
ganization Act of 1974 (42 U.S.C. 5851); or
(2) an adverse final judgment by any State or
Federal court with respect to such complaint against
the contractor or subcontractor for wrongful termi-
nation or retaliation due to the making of disclo-
sures protected under chapter 12 of title 5, United
States Code, section 211 of the Energy Reorganiza-
tion Act of 1974 (42 U.S.C. 5851), or any com-
parable State law,
unless the adverse determination or final judgment is re-
versed upon further administrative or judicial review.
SEC. 628. DECOMMISSIONING PILOT PROGRAM.
(a) PILOT PROGRAM.—The Secretary of Energy shall
establish a decommissioning pilot program to decommis-
sion and decontaminate the sodium-cooled fast breeder ex-
perimental test-site reactor located in northwest Arkansas
367
in accordance with the decommissioning activities con-
tained in the August 31, 1998, Department of Energy re-
port on the reactor.
(b) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Secretary of En-
ergy to carry out this section $16,000,000.
SEC. 629. REPORT ON FEASIBILITY OF DEVELOPING COM-
MERCIAL NUCLEAR ENERGY GENERATION
FACILITIES AT EXISTING DEPARTMENT OF
ENERGY SITES.
Not later than 1 year after the date of the enactment
of this Act, the Secretary of Energy shall submit to Con-
gress a report on the feasibility of developing commercial
nuclear energy generation facilities at Department of En-
ergy sites in existence on the date of enactment of this
Act.
SEC. 630. URANIUM SALES.
(a) SALES, TRANSFERS, AND SERVICES.—Section
3112 of the USEC Privatization Act (42 U.S.C. 2297h–
10) is amended by striking subsections (d), (e), and (f)
and inserting the following:
‘‘(3) The Secretary may transfer to the Corporation,
notwithstanding subsections (b)(2) and (d), natural ura-
nium in amounts sufficient to fulfill the Department of
Energy’s commitments under Article 4(B) of the Agree-
368
ment between the Department and the Corporation dated
June 17, 2002.
‘‘(d) INVENTORY SALES.—(1) In addition to the
transfers and sales authorized under subsections (b) and
(c) and under paragraph (5) of this subsection, the United
States Government may transfer or sell uranium in any
form subject to paragraphs (2), (3), and (4).
‘‘(2) Except as provided in subsections (b) and (c)
and paragraph (5) of this subsection, no sale or transfer
of uranium shall be made under this subsection by the
United States Government unless—
‘‘(A) the President determines that the material
is not necessary for national security needs and the
sale or transfer has no adverse impact on implemen-
tation of existing government-to-government agree-
ments;
‘‘(B) the price paid to the appropriate Federal
agency, if the transaction is a sale, will not be less
than the fair market value of the material; and
‘‘(C) the sale or transfer to commercial nuclear
power end users is made pursuant to a contract of
at least 3 years’ duration.
‘‘(3) Except as provided in paragraph (5), the United
States Government shall not make any transfer or sale
of uranium in any form under this subsection that would
369
cause the total amount of uranium transferred or sold pur-
suant to this subsection that is delivered for consumption
by commercial nuclear power end users to exceed—
‘‘(A) 3,000,000 pounds of U3 O8 equivalent in
fiscal year 2004, 2005, 2006, 2007, 2008, or 2009;
‘‘(B) 5,000,000 pounds of U3O8 equivalent in
fiscal year 2010 or 2011;
‘‘(C) 7,000,000 pounds of U3O8 equivalent in
fiscal year 2012; and
‘‘(D) 10,000,000 pounds of U3O8 equivalent in
fiscal year 2013 or any fiscal year thereafter.
‘‘(4) Except for sales or transfers under paragraph
(5), for the purposes of this subsection, the recovery of
uranium from uranium bearing materials transferred or
sold by the United States Government to the domestic
uranium industry shall be the preferred method of making
uranium available. The recovered uranium shall be count-
ed against the annual maximum deliveries set forth in this
section, when such uranium is sold to end users.
‘‘(5) The United States Government may make the
following sales and transfers:
‘‘(A) Sales or transfers to a Federal agency if
the material is transferred for the use of the receiv-
ing agency without any resale or transfer to another
370
entity and the material does not meet commercial
specifications.
‘‘(B) Sales or transfers to any person for na-
tional security purposes, as determined by the Sec-
retary.
‘‘(C) Sales or transfers to any State or local
agency or nonprofit, charitable, or educational insti-
tution for use other than the generation of electricity
for commercial use.
‘‘(D) Sales or transfers to the Department of
Energy research reactor sales program.
‘‘(E) Sales or transfers, at fair market value,
for emergency purposes in the event of a disruption
in supply to commercial nuclear power end users in
the United States.
‘‘(F) Sales or transfers, at fair market value,
for use in a commercial reactor in the United States
with nonstandard fuel requirements.
‘‘(G) Sales or transfers provided for under law
for use by the Tennessee Valley Authority in relation
to the Department of Energy’s highly enriched ura-
nium or tritium programs.
‘‘(6) For purposes of this subsection, the term
‘United States Government’ does not include the Ten-
nessee Valley Authority.
371
‘‘(e) SAVINGS PROVISION.—Nothing in this sub-
chapter modifies the terms of the Russian HEU Agree-
ment.
‘‘(f) SERVICES.—Notwithstanding any other provi-
sion of this section, if the Secretary determines that the
Corporation has failed, or may fail, to perform any obliga-
tion under the Agreement between the Department of En-
ergy and the Corporation dated June 17, 2002, and as
amended thereafter, which failure could result in termi-
nation of the Agreement, the Secretary shall notify Con-
gress, in such a manner that affords Congress an oppor-
tunity to comment, prior to a determination by the Sec-
retary whether termination, waiver, or modification of the
Agreement is required. The Secretary is authorized to take
such action as he determines necessary under the Agree-
ment to terminate, waive, or modify provisions of the
Agreement to achieve its purposes.’’.
(b) REPORT.—Not later than 3 years after the date
of enactment of this Act, the Secretary of Energy shall
report to Congress on the implementation of this section.
The report shall include a discussion of available excess
uranium inventories; all sales or transfers made by the
United States Government; the impact of such sales or
transfers on the domestic uranium industry, the spot mar-
ket uranium price, and the national security interests of
372
the United States; and any steps taken to remediate any
adverse impacts of such sales or transfers.
SEC. 631. COOPERATIVE RESEARCH AND DEVELOPMENT
AND SPECIAL DEMONSTRATION PROJECTS
FOR THE URANIUM MINING INDUSTRY.
(a) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Secretary of En-
ergy $10,000,000 for each of fiscal years 2004, 2005, and
2006 for—
(1) cooperative, cost-shared agreements between
the Department of Energy and domestic uranium
producers to identify, test, and develop improved in
situ leaching mining technologies, including low-cost
environmental restoration technologies that may be
applied to sites after completion of in situ leaching
operations; and
(2) funding for competitively selected dem-
onstration projects with domestic uranium producers
relating to—
(A) enhanced production with minimal en-
vironmental impacts;
(B) restoration of well fields; and
(C) decommissioning and decontamination
activities.
373
(b) DOMESTIC URANIUM PRODUCER.—For purposes
of this section, the term ‘‘domestic uranium producer’’ has
the meaning given that term in section 1018(4) of the En-
ergy Policy Act of 1992 (42 U.S.C. 2296b–7(4)), except
that the term shall not include any producer that has not
produced uranium from domestic reserves on or after July
30, 1998.
(c) LIMITATION.—No activities funded under this
section may be carried out in the State of New Mexico.
SEC. 632. WHISTLEBLOWER PROTECTION.
(a) DEFINITION OF EMPLOYER.—Section 211(a)(2)
of the Energy Reorganization Act of 1974 (42 U.S.C.
5851(a)(2)) is amended—
(1) in subparagraph (C), by striking ‘‘and’’ at
the end;
(2) in subparagraph (D), by striking the period
at the end and inserting ‘‘; and’’ and
(3) by adding at the end the following:
‘‘(E) a contractor or subcontractor of the
Commission.’’.
(b) DE NOVO REVIEW.—Subsection (b) of such sec-
tion 211 is amended by adding at the end the following
new paragraph:
‘‘(4) If the Secretary has not issued a final de-
cision within 540 days after the filing of a complaint
374
under paragraph (1), and there is no showing that
such delay is due to the bad faith of the person
seeking relief under this paragraph, such person
may bring an action at law or equity for de novo re-
view in the appropriate district court of the United
States, which shall have jurisdiction over such an ac-
tion without regard to the amount in controversy.’’.
SEC. 633. MEDICAL ISOTOPE PRODUCTION.
Section 134 of the Atomic Energy Act of 1954 (42
U.S.C. 2160d) is amended—
(1) in subsection a., by striking ‘‘a. The Com-
mission’’ and inserting ‘‘a. IN GENERAL.—Except as
provided in subsection b., the Commission’’;
(2) by redesignating subsection b. as subsection
c.; and
(3) by inserting after subsection a. the fol-
lowing:
‘‘b. MEDICAL ISOTOPE PRODUCTION.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) HIGHLY ENRICHED URANIUM.—The
term ‘highly enriched uranium’ means uranium
enriched to include concentration of U–235
above 20 percent.
‘‘(B) MEDICAL ISOTOPE.—The term ‘med-
ical isotope’ includes Molybdenum 99, Iodine
375
131, Xenon 133, and other radioactive mate-
rials used to produce a radiopharmaceutical for
diagnostic, therapeutic procedures or for re-
search and development.
‘‘(C) RADIOPHARMACEUTICAL.—The term
‘radiopharmaceutical’ means a radioactive iso-
tope that—
‘‘(i) contains byproduct material com-
bined with chemical or biological material;
and
‘‘(ii) is designed to accumulate tempo-
rarily in a part of the body for therapeutic
purposes or for enabling the production of
a useful image for use in a diagnosis of a
medical condition.
‘‘(D) RECIPIENT COUNTRY.—The term ‘re-
cipient 
country’ 
means 
Canada, 
Belgium,
France, Germany, and the Netherlands.
‘‘(2) LICENSES.—The Commission may issue a
license authorizing the export (including shipment to
and use at intermediate and ultimate consignees
specified in the license) to a recipient country of
highly enriched uranium for medical isotope produc-
tion if, in addition to any other requirements of this
376
Act (except subsection a.), the Commission deter-
mines that—
‘‘(A) a recipient country that supplies an
assurance letter to the United States Govern-
ment in connection with the consideration by
the Commission of the export license applica-
tion has informed the United States Govern-
ment that any intermediate consignees and the
ultimate consignee specified in the application
are required to use the highly enriched uranium
solely to produce medical isotopes; and
‘‘(B) the highly enriched uranium for med-
ical isotope production will be irradiated only in
a reactor in a recipient country that—
‘‘(i) uses an alternative nuclear reac-
tor fuel; or
‘‘(ii) is the subject of an agreement
with the United States Government to con-
vert to an alternative nuclear reactor fuel
when alternative nuclear reactor fuel can
be used in the reactor.
‘‘(3) REVIEW
OF
PHYSICAL
PROTECTION
RE-
QUIREMENTS.—
‘‘(A) IN GENERAL.—The Commission shall
review the adequacy of physical protection re-
377
quirements that, as of the date of an applica-
tion under paragraph (2), are applicable to the
transportation and storage of highly enriched
uranium for medical isotope production or con-
trol of residual material after irradiation and
extraction of medical isotopes.
‘‘(B) IMPOSITION
OF
ADDITIONAL
RE-
QUIREMENTS.—If the Commission determines
that additional physical protection requirements
are necessary (including a limit on the quantity
of highly enriched uranium that may be con-
tained in a single shipment), the Commission
shall impose such requirements as license condi-
tions or through other appropriate means.
‘‘(4) FIRST REPORT TO CONGRESS.—
‘‘(A) NAS STUDY.—The Secretary shall
enter into an arrangement with the National
Academy of Sciences to conduct a study to
determine—
‘‘(i) the feasibility of procuring sup-
plies of medical isotopes from commercial
sources that do not use highly enriched
uranium;
378
‘‘(ii) the current and projected de-
mand and availability of medical isotopes
in regular current domestic use;
‘‘(iii) the progress that is being made
by the Department of Energy and others
to eliminate all use of highly enriched ura-
nium in reactor fuel, reactor targets, and
medical isotope production facilities; and
‘‘(iv) the potential cost differential in
medical isotope production in the reactors
and target processing facilities if the prod-
ucts were derived from production systems
that do not involve fuels and targets with
highly enriched uranium.
‘‘(B) FEASIBILITY.—For the purpose of
this subsection, the use of low enriched uranium
to produce medical isotopes shall be determined
to be feasible if—
‘‘(i) low enriched uranium targets
have been developed and demonstrated for
use in the reactors and target processing
facilities that produce significant quantities
of medical isotopes to serve United States
needs for such isotopes;
379
‘‘(ii) sufficient quantities of medical
isotopes are available from low enriched
uranium targets and fuel to meet United
States domestic needs; and
‘‘(iii) the average anticipated total
cost increase from production of medical
isotopes in such facilities without use of
highly enriched uranium is less than 10
percent.
‘‘(C) REPORT BY THE SECRETARY.—Not
later than 5 years after the date of enactment
of the Energy Policy Act of 2003, the Secretary
shall submit to Congress a report that—
‘‘(i) contains the findings of the Na-
tional Academy of Sciences made in the
study under subparagraph (A); and
‘‘(ii) discloses the existence of any
commitments from commercial producers
to provide domestic requirements for med-
ical isotopes without use of highly enriched
uranium consistent with the feasibility cri-
teria described in subparagraph (B) not
later than the date that is 4 years after
the date of submission of the report.
380
‘‘(5) SECOND REPORT TO CONGRESS.—If the
study of the National Academy of Sciences deter-
mines under paragraph (4)(A)(i) that the procure-
ment of supplies of medical isotopes from commer-
cial sources that do not use highly enriched uranium
is feasible, but the Secretary is unable to report the
existence 
of 
commitments 
under 
paragraph
(4)(C)(ii), not later than the date that is 6 years
after the date of enactment of the Energy Policy Act
of 2003, the Secretary shall submit to Congress a
report that describes options for developing domestic
supplies of medical isotopes in quantities that are
adequate to meet domestic demand without the use
of highly enriched uranium consistent with the cost
increase described in paragraph (4)(B)(iii).
‘‘(6) CERTIFICATION.—At such time as com-
mercial facilities that do not use highly enriched
uranium are capable of meeting domestic require-
ments for medical isotopes, within the cost increase
described in paragraph (4)(B)(iii) and without im-
pairing the reliable supply of medical isotopes for
domestic utilization, the Secretary shall submit to
Congress a certification to that effect.
‘‘(7) SUNSET PROVISION.—After the Secretary
submits a certification under paragraph (6), the
381
Commission shall, by rule, terminate its review of
export license applications under this subsection.’’.
SEC. 634. FERNALD BYPRODUCT MATERIAL.
Notwithstanding any other law, the material in the
concrete silos at the Fernald uranium processing facility
managed on the date of enactment of this Act by the De-
partment of Energy shall be considered byproduct mate-
rial (as defined by section 11 e.(2) of the Atomic Energy
Act of 1954 (42 U.S.C. 2014(e)(2))). The Department of
Energy may dispose of the material in a facility regulated
by the Nuclear Regulatory Commission or by an Agree-
ment State. If the Department of Energy disposes of the
material in such a facility, the Nuclear Regulatory Com-
mission or the Agreement State shall regulate the material
as byproduct material under that Act. This material shall
remain subject to the jurisdiction of the Department of
Energy until it is received at a commercial, Nuclear Regu-
latory Commission-licensed, or Agreement State-licensed
facility, at which time the material shall be subject to the
health and safety requirements of the Nuclear Regulatory
Commission or the Agreement State with jurisdiction over
the disposal site.
382
SEC. 635. SAFE DISPOSAL OF GREATER-THAN-CLASS C RA-
DIOACTIVE WASTE.
(a) DESIGNATION OF RESPONSIBILITY.—The Sec-
retary of Energy shall designate an Office within the De-
partment of Energy to have the responsibility for activities
needed to develop a new, or use an existing, facility for
safely disposing of all low-level radioactive waste with con-
centrations of radionuclides that exceed the limits estab-
lished by the Nuclear Regulatory Commission for Class
C radioactive waste (referred to in this section as ‘‘GTCC
waste’’).
(b) COMPREHENSIVE PLAN.—The Secretary of En-
ergy shall develop a comprehensive plan for permanent
disposal of GTCC waste which includes plans for a dis-
posal facility. This plan shall be transmitted to Congress
in a series of reports, including the following:
(1) REPORT ON SHORT-TERM PLAN.—Not later
than 180 days after the date of enactment of this
Act, the Secretary of Energy shall submit to Con-
gress a plan describing the Secretary’s operational
strategy for continued recovery and storage of
GTCC waste until a permanent disposal facility is
available.
(2) UPDATE OF 1987 REPORT.—
(A) IN GENERAL.—Not later than 1 year
after the date of enactment of this Act, the Sec-
383
retary of Energy shall submit to Congress an
update of the Secretary’s February 1987 report
submitted to Congress that made comprehen-
sive recommendations for the disposal of GTCC
waste.
(B) CONTENTS.—The update under this
paragraph shall contain—
(i) a detailed description and identi-
fication of the GTCC waste that is to be
disposed;
(ii) a description of current domestic
and international programs, both Federal
and commercial, for management and dis-
position of GTCC waste;
(iii) an identification of the Federal
and private options and costs for the safe
disposal of GTCC waste;
(iv) an identification of the options for
ensuring that, wherever possible, genera-
tors and users of GTCC waste bear all rea-
sonable costs of waste disposal;
(v) an identification of any new statu-
tory authority required for disposal of
GTCC waste; and
384
(vi) in coordination with the Environ-
mental Protection Agency and the Nuclear
Regulatory Commission, an identification
of any new regulatory guidance needed for
the disposal of GTCC waste.
(3) REPORT
ON
COST
AND
SCHEDULE
FOR
COMPLETION
OF
ENVIRONMENTAL
IMPACT
STATE-
MENT AND RECORD OF DECISION.—Not later than
180 days after the date of submission of the update
required under paragraph (2), the Secretary of En-
ergy shall submit to Congress a report containing an
estimate of the cost and schedule to complete a draft
and final environmental impact statement and to
issue a record of decision for a permanent disposal
facility, utilizing either a new or existing facility, for
GTCC waste.
SEC. 636. PROHIBITION ON NUCLEAR EXPORTS TO COUN-
TRIES THAT SPONSOR TERRORISM.
(a) IN GENERAL.—Section 129 of the Atomic Energy
Act of 1954 (42 U.S.C. 2158) is amended—
(1) by inserting ‘‘a.’’ before ‘‘No nuclear mate-
rials and equipment’’; and
(2) by adding at the end the following new sub-
section:
385
‘‘b.(1) Notwithstanding any other provision of law,
including specifically section 121 of this Act, and except
as provided in paragraphs (2) and (3), no nuclear mate-
rials and equipment or sensitive nuclear technology, in-
cluding items and assistance authorized by section 57 b.
of this Act and regulated under part 810 of title 10, Code
of Federal Regulations, and nuclear-related items on the
Commerce Control List maintained under part 774 of title
15 of the Code of Federal Regulations, shall be exported
or reexported, or transferred or retransferred whether di-
rectly or indirectly, and no Federal agency shall issue any
license, approval, or authorization for the export or reex-
port, or transfer, or retransfer, whether directly or indi-
rectly, of these items or assistance (as defined in this para-
graph) to any country whose government has been identi-
fied by the Secretary of State as engaged in state sponsor-
ship of terrorist activities (specifically including any coun-
try the government of which has been determined by the
Secretary of State under section 620A(a) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2371(a)), section
6(j)(1) of the Export Administration Act of 1979 (50
U.S.C. App. 2405(j)(1)), or section 40(d) of the Arms Ex-
port Control Act (22 U.S.C. 2780(d)) to have repeatedly
provided support for acts of international terrorism).
386
‘‘(2) This subsection shall not apply to exports, reex-
ports, transfers, or retransfers of radiation monitoring
technologies, surveillance equipment, seals, cameras, tam-
per-indication devices, nuclear detectors, monitoring sys-
tems, or equipment necessary to safely store, transport,
or remove hazardous materials, whether such items, serv-
ices, or information are regulated by the Department of
Energy, the Department of Commerce, or the Nuclear
Regulatory Commission, except to the extent that such
technologies, equipment, seals, cameras, devices, detectors,
or systems are available for use in the design or construc-
tion of nuclear reactors or nuclear weapons.
‘‘(3) The President may waive the application of
paragraph (1) to a country if the President determines
and certifies to Congress that the waiver will not result
in any increased risk that the country receiving the waiver
will acquire nuclear weapons, nuclear reactors, or any ma-
terials or components of nuclear weapons and—
‘‘(A) the government of such country has not
within the preceding 12-month period willfully aided
or abetted the international proliferation of nuclear
explosive devices to individuals or groups or willfully
aided and abetted an individual or groups in acquir-
ing unsafeguarded nuclear materials;
387
‘‘(B) in the judgment of the President, the gov-
ernment of such country has provided adequate,
verifiable assurances that it will cease its support for
acts of international terrorism;
‘‘(C) the waiver of that paragraph is in the vital
national security interest of the United States; or
‘‘(D) such a waiver is essential to prevent or re-
spond to a serious radiological hazard in the country
receiving the waiver that may or does threaten pub-
lic health and safety.’’.
(b) APPLICABILITY
TO EXPORTS APPROVED
FOR
TRANSFER BUT NOT TRANSFERRED.—Subsection b. of
section 129 of Atomic Energy Act of 1954, as added by
subsection (a) of this section, shall apply with respect to
exports that have been approved for transfer as of the date
of the enactment of this Act but have not yet been trans-
ferred as of that date.
SEC. 637. URANIUM ENRICHMENT FACILITIES.
(a) NUCLEAR REGULATORY COMMISSION REVIEW OF
APPLICATIONS.—
(1) IN GENERAL.—In order to facilitate a time-
ly review and approval of an application in a pro-
ceeding for a license for the construction and oper-
ation of a uranium enrichment facility under sec-
tions 53 and 63 of the Atomic Energy Act of 1954
388
(42 U.S.C. 2073, 2093) (referred to in this sub-
section as a ‘‘covered proceeding’’), the Nuclear Reg-
ulatory Commission shall, not later than 30 days
after the receipt of the application, establish, by
order, the schedule for the conduct of any hearing
that may be requested by any person whose interest
may be affected by the covered proceeding.
(2) FINAL
AGENCY
DECISION.—The schedule
shall provide that a final decision by the Commission
on the application shall be made not later than the
date that is 2 years after the date of submission of
the application by the applicant.
(3) COMPLIANCE WITH SCHEDULE.—
(A) IN GENERAL.—The Commission shall
establish a process to assess compliance with
the schedule established under paragraph (1)
on an ongoing basis during the course of the re-
view of the application, including ensuring com-
pliance with schedules and milestones that are
established for the conduct of any covered pro-
ceeding by the Atomic Safety and Licensing
Board.
(B) REPORT.—The Commission shall sub-
mit to Congress on a bimonthly basis a report
describing the status of compliance with the
389
schedule established under paragraph (1), in-
cluding a description of the status of actions re-
quired to be completed pursuant to the schedule
by officers and employees of—
(i) the Commission in undertaking the
safety and environmental review of applica-
tions; and
(ii) the Atomic Safety and Licensing
Board in the conduct of any covered pro-
ceeding.
(4) ENVIRONMENTAL REVIEW.—
(A) IN GENERAL.—In evaluating an appli-
cation under the National Environmental Policy
Act of 1969 (42 U.S.C. 4321 et seq.) for licens-
ing of a facility in a covered proceeding, the
Commission shall limit the consideration of
need to whether the licensing of the facility
would advance the national interest of encour-
aging in the United States—
(i) additional secure, reliable uranium
enrichment capacity;
(ii) diverse supplies and suppliers of
uranium enrichment capacity; and
(iii) the deployment of advanced cen-
trifuge enrichment technology.
390
(B) COMMENT.—In carrying out subpara-
graph (A), the Commission shall consider and
solicit the views of other affected Federal agen-
cies.
(C) ATOMIC
SAFETY
AND
LICENSING
BOARD.—
(i) IN GENERAL.—Except as provided
in clause (ii), in any covered proceeding,
the Commission shall allow the litigation
and resolution by the Atomic Safety and
Licensing Board of issues arising under
the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.), on the
basis of information submitted by the ap-
plicant in its environmental report, prior to
publication of any required environmental
impact statement.
(ii) EXCEPTIONS.—On the publication
of any required environmental impact
statement, issues may be proffered for res-
olution by the Atomic Safety and Licensing
Board only if information or conclusions in
the environmental impact statement differ
significantly from the information or con-
391
clusions in the environmental report sub-
mitted by the applicant.
(D) ENVIRONMENTAL JUSTICE.—In a cov-
ered proceeding, the Commission shall apply the
criteria in Appendix C of the final report enti-
tled ‘‘Environmental Review Guidance for Li-
censing Actions Associated with NMSS Pro-
grams’’ (NUREG–1748), published in August
2003, in any required review of environmental
justice.
(5) LOW-LEVEL WASTE.—In any covered pro-
ceeding, the Commission shall—
(A) deem the obligation of the Secretary of
Energy pursuant to section 3113 of the USEC
Privitization Act (42 U.S.C. 2297 h-11) to con-
stitute a plausible strategy with regard to the
disposition of depleted uranium generated by
such facility; and
(B) treat any residual material that re-
mains following the extraction of any usable re-
source value from depleted uranium as low-level
radioactive waste under part 61 of title 10,
Code of Federal Regulations.
(6) ADJUDICATORY HEARING ON LICENSING OF
URANIUM ENRICHMENT FACILITIES.—Section 193(b)
392
of the Atomic Energy Act of 1954 (42 U.S.C.
2243(b)) is amended by striking paragraph (2) and
inserting the following:
‘‘(2) TIMING.—On the issuance of a final deci-
sion on the application by the Atomic Safety and Li-
censing Board, the Commission shall issue and make
immediately effective any license for the construction
and operation of a uranium enrichment facility
under sections 53 and 63, on a determination by the
Commission that the issuance of the license would
not cause irreparable injury to the public health and
safety or the common defense and security, notwith-
standing the pendency before the Commission of any
appeal or petition for review of any decision of the
Atomic Safety and Licensing Board.’’.
(b) DEPARTMENT OF ENERGY RESPONSIBILITIES.—
(1) IN
GENERAL.—Not later than 180 days
after a request is made to the Secretary of Energy
by an applicant for or recipient of a license for a
uranium enrichment facility under section 53, 63, or
193 of the Atomic Energy Act of 1954 ((42 U.S.C.
2073, 2093, 2243), the Secretary shall enter into a
memorandum of agreement with the applicant or li-
censee that provides a schedule for the transfer to
the Secretary, not later than 5 years after the gen-
393
eration of any depleted uranium hexafluoride, of title
and possession of the depleted uranium hexafluoride
to be generated by the applicant or licensee.
(2) COST.—
(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), the memorandum of agree-
ment shall specify the cost to be assessed by the
Secretary for the transfer to the Secretary of
the depleted uranium hexafluoride.
(B) 
NONDISCRIMINATORY
BASIS.—The
cost shall be determined by the Secretary on a
nondiscriminatory basis.
(C) COST.—Taking into account the phys-
ical and chemical characteristics of such de-
pleted uranium hexafluoride, the cost shall not
exceed the cost assessed by the Secretary for
the acceptance of depleted uranium hexafluoride
under—
(i) the memorandum of agreement be-
tween the United States Department of
Energy and the United States Enrichment
Corporation Relating to Depleted Ura-
nium, dated June 30, 1998; and
394
(ii) the Agreement Between the U.S.
Department of Energy and USEC Inc.,
dated June 17, 2002.
SEC. 638. NATIONAL URANIUM STOCKPILE.
(a) STOCKPILE CREATION.—The Secretary of En-
ergy may create a national low-enriched uranium stockpile
with the goals to—
(1) enhance national energy security; and
(2) reduce global proliferation threats.
(b) SOURCE OF MATERIAL.—The Secretary shall ob-
tain material for the stockpile from—
(1) material derived from blend-down of Rus-
sian highly enriched uranium derived from weapons
materials; and
(2) domestically mined and enriched uranium.
(c) LIMITATION ON SALES OR TRANSFERS.—Sales or
transfer of materials in the stockpile shall occur pursuant
to section 3112 of the USEC Privitization Act (42 U.S.C.
2297h–10), as amended by section 630 of this Act.
Subtitle C—Advanced Reactor
Hydrogen Cogeneration Project
SEC. 651. PROJECT ESTABLISHMENT.
The Secretary of Energy (in this subtitle referred to
as the ‘‘Secretary’’) is directed to establish an Advanced
Reactor Hydrogen Cogeneration Project.
395
SEC. 652. PROJECT DEFINITION.
The project shall consist of the research, develop-
ment, design, construction, and operation of a hydrogen
production cogeneration research facility that, relative to
the current commercial reactors, enhances safety features,
reduces waste production, enhances thermal efficiencies,
increases proliferation resistance, and has the potential for
improved economics and physical security in reactor siting.
This facility shall be constructed so as to enable research
and development on advanced reactors of the type selected
and on alternative approaches for reactor-based produc-
tion of hydrogen.
SEC. 653. PROJECT MANAGEMENT.
(a) MANAGEMENT.—The project shall be managed
within the Department by the Office of Nuclear Energy,
Science, and Technology.
(b) LEAD LABORATORY.—The lead laboratory for the
project, providing the site for the reactor construction,
shall be the Idaho National Engineering and Environ-
mental Laboratory (in this subtitle referred to as
‘‘INEEL’’).
(c) STEERING COMMITTEE.—The Secretary shall es-
tablish a national steering committee with membership
from the national laboratories, universities, and industry
to provide advice to the Secretary and the Director of the
396
Office of Nuclear Energy, Science, and Technology on
technical and program management aspects of the project.
(d) COLLABORATION.—Project activities shall be con-
ducted at INEEL, other national laboratories, univer-
sities, domestic industry, and international partners.
SEC. 654. PROJECT REQUIREMENTS.
(a) RESEARCH AND DEVELOPMENT.—
(1) IN
GENERAL.—The project shall include
planning, research and development, design, and
construction of an advanced, next-generation, nu-
clear energy system suitable for enabling further re-
search and development on advanced reactor tech-
nologies and alternative approaches for reactor-based
generation of hydrogen.
(2) REACTOR TEST CAPABILITIES AT INEEL.—
The project shall utilize, where appropriate, exten-
sive reactor test capabilities resident at INEEL.
(3) ALTERNATIVES.—The project shall be de-
signed to explore technical, environmental, and eco-
nomic feasibility of alternative approaches for reac-
tor-based hydrogen production.
(4) INDUSTRIAL LEAD.—The industrial lead for
the project shall be a company incorporated in the
United States.
(b) INTERNATIONAL COLLABORATION.—
397
(1) IN
GENERAL.—The Secretary shall seek
international cooperation, participation, and finan-
cial contribution in this project.
(2) ASSISTANCE FROM INTERNATIONAL PART-
NERS.—The Secretary may contract for assistance
from specialists or facilities from member countries
of the Generation IV International Forum, the Rus-
sian Federation, or other international partners
where such specialists or facilities provide access to
cost-effective and relevant skills or test capabilities.
(3) GENERATION IV INTERNATIONAL FORUM.—
International activities shall be coordinated with the
Generation IV International Forum.
(4) GENERATION
IV
NUCLEAR
ENERGY
SYS-
TEMS PROGRAM.—The Secretary may combine this
project with the Generation IV Nuclear Energy Sys-
tems Program.
(c) DEMONSTRATION.—The overall project, which
may involve demonstration of selected project objectives
in a partner nation, must demonstrate both electricity and
hydrogen production and may provide flexibility, where
technically and economically feasible in the design and
construction, to enable tests of alternative reactor core
and cooling configurations.
398
(d) PARTNERSHIPS.—The Secretary shall establish
cost-shared partnerships with domestic industry or inter-
national participants for the research, development, de-
sign, construction, and operation of the research facility,
and preference in determining the final project structure
shall be given to an overall project which retains United
States leadership while maximizing cost sharing opportu-
nities and minimizing Federal funding responsibilities.
(e) TARGET DATE.—The Secretary shall select tech-
nologies and develop the project to provide initial testing
of either hydrogen production or electricity generation by
2010, or provide a report to Congress explaining why this
date is not feasible.
(f) WAIVER
OF CONSTRUCTION TIMELINES.—The
Secretary is authorized to conduct the Advanced Reactor
Hydrogen Cogeneration Project without the constraints of
DOE Order 413.3, relating to program and project man-
agement for the acquisition of capital assets, as necessary
to meet the specified operational date.
(g) COMPETITION.—The Secretary may fund up to
2 teams for up to 1 year to develop detailed proposals for
competitive evaluation and selection of a single proposal
and concept for further progress. The Secretary shall de-
fine the format of the competitive evaluation of proposals.
399
(h) USE OF FACILITIES.—Research facilities in in-
dustry, national laboratories, or universities either within
the United States or with cooperating international part-
ners may be used to develop the enabling technologies for
the research facility. Utilization of domestic university-
based facilities shall be encouraged to provide educational
opportunities for student development.
(i) ROLE OF NUCLEAR REGULATORY COMMISSION.—
(1) IN
GENERAL.—The Nuclear Regulatory
Commission shall have licensing and regulatory au-
thority for any reactor authorized under this sub-
title, pursuant to section 202 of the Energy Reorga-
nization Act of 1974 (42 U.S.C. 5842).
(2) RISK-BASED
CRITERIA.—The Secretary
shall seek active participation of the Nuclear Regu-
latory Commission throughout the project to develop
risk-based criteria for any future commercial devel-
opment of a similar reactor architecture.
(j) REPORT.—The Secretary shall develop and trans-
mit to Congress a comprehensive project plan not later
than April 30, 2004. The project plan shall be updated
annually with each annual budget submission.
SEC. 655. AUTHORIZATION OF APPROPRIATIONS.
(a) RESEARCH, DEVELOPMENT, AND DESIGN PRO-
GRAMS.—The following sums are authorized to be appro-
400
priated to the Secretary for all activities under this sub-
title except for construction activities described in sub-
section (b):
(1) For fiscal year 2004, $35,000,000.
(2) For each of fiscal years 2005 through 2008,
$150,000,000.
(3) For fiscal years beyond 2008, such sums as
are necessary.
(b) CONSTRUCTION.—There are authorized to be ap-
propriated to the Secretary for all project-related con-
struction activities, to be available until expended,
$500,000,000.
Subtitle D—Nuclear Security
SEC. 661. NUCLEAR FACILITY THREATS.
(a) STUDY.—The President, in consultation with the
Nuclear Regulatory Commission (referred to in this sub-
title as the ‘‘Commission’’) and other appropriate Federal,
State, and local agencies and private entities, shall con-
duct a study to identify the types of threats that pose an
appreciable risk to the security of the various classes of
facilities licensed by the Commission under the Atomic
Energy Act of 1954 (42 U.S.C. 2011 et seq.). Such study
shall take into account, but not be limited to—
(1) the events of September 11, 2001;
401
(2) an assessment of physical, cyber, bio-
chemical, and other terrorist threats;
(3) the potential for attack on facilities by mul-
tiple coordinated teams of a large number of individ-
uals;
(4) the potential for assistance in an attack
from several persons employed at the facility;
(5) the potential for suicide attacks;
(6) the potential for water-based and air-based
threats;
(7) the potential use of explosive devices of con-
siderable size and other modern weaponry;
(8) the potential for attacks by persons with a
sophisticated knowledge of facility operations;
(9) the potential for fires, especially fires of
long duration;
(10) the potential for attacks on spent fuel
shipments by multiple coordinated teams of a large
number of individuals;
(11) the adequacy of planning to protect the
public health and safety at and around nuclear fa-
cilities, as appropriate, in the event of a terrorist at-
tack against a nuclear facility; and
(12) the potential for theft and diversion of nu-
clear materials from such facilities.
402
(b) SUMMARY AND CLASSIFICATION REPORT.—Not
later than 180 days after the date of the enactment of
this Act, the President shall transmit to Congress and the
Commission a report—
(1) summarizing the types of threats identified
under subsection (a); and
(2) classifying each type of threat identified
under subsection (a), in accordance with existing
laws and regulations, as either—
(A) involving attacks and destructive acts,
including sabotage, directed against the facility
by an enemy of the United States, whether a
foreign government or other person, or other-
wise falling under the responsibilities of the
Federal Government; or
(B) involving the type of risks that Com-
mission licensees should be responsible for
guarding against.
(c) FEDERAL ACTION REPORT.—Not later than 90
days after the date on which a report is transmitted under
subsection (b), the President shall transmit to Congress
a report on actions taken, or to be taken, to address the
types of threats identified under subsection (b)(2)(A), in-
cluding identification of the Federal, State, and local
agencies responsible for carrying out the obligations and
403
authorities of the United States. Such report may include
a classified annex, as appropriate.
(d) REGULATIONS.—Not later than 180 days after
the date on which a report is transmitted under subsection
(b), the Commission may revise, by rule, the design basis
threats issued before the date of enactment of this section
as the Commission considers appropriate based on the
summary and classification report.
(e) PHYSICAL SECURITY PROGRAM.—The Commis-
sion shall establish an operational safeguards response
evaluation program that ensures that the physical protec-
tion capability and operational safeguards response for
sensitive nuclear facilities, as determined by the Commis-
sion consistent with the protection of public health and
the common defense and security, shall be tested periodi-
cally through Commission approved or designed, observed,
and evaluated force-on-force exercises to determine wheth-
er the ability to defeat the design basis threat is being
maintained. For purposes of this subsection, the term
‘‘sensitive nuclear facilities’’ includes at a minimum com-
mercial nuclear power plants and category I fuel cycle fa-
cilities.
(f) CONTROL
OF INFORMATION.—Notwithstanding
any other provision of law, the Commission may undertake
any rulemaking under this subtitle in a manner that will
404
fully protect safeguards and classified national security in-
formation.
(g) FEDERAL SECURITY COORDINATORS.—
(1) REGIONAL
OFFICES.—Not later than 18
months after the date of enactment of this Act, the
Commission shall assign a Federal security coordi-
nator, under the employment of the Commission, to
each region of the Commission.
(2) RESPONSIBILITIES.—The Federal security
coordinator shall be responsible for—
(A) communicating with the Commission
and other Federal, State, and local authorities
concerning threats, including threats against
such classes of facilities as the Commission de-
termines to be appropriate;
(B) ensuring that such classes of facilities
as the Commission determines to be appropriate
maintain security consistent with the security
plan in accordance with the appropriate threat
level; and
(C) assisting in the coordination of secu-
rity measures among the private security forces
at such classes of facilities as the Commission
determines to be appropriate and Federal,
State, and local authorities, as appropriate.
405
(h) TRAINING PROGRAM.—The President shall estab-
lish a program to provide technical assistance and training
to Federal agencies, the National Guard, and State and
local law enforcement and emergency response agencies in
responding to threats against a designated nuclear facility.
SEC. 
662. 
FINGERPRINTING 
FOR 
CRIMINAL 
HISTORY
RECORD CHECKS.
(a) IN GENERAL.—Subsection a. of section 149 of
the Atomic Energy Act of 1954 (42 U.S.C. 2169(a)) is
amended—
(1) by striking ‘‘a. The Nuclear’’ and all that
follows through ‘‘section 147.’’ and inserting the fol-
lowing:
‘‘a. IN GENERAL.—
‘‘(1) REQUIREMENTS.—
‘‘(A) IN GENERAL.—The Commission shall
require each individual or entity—
‘‘(i) that is licensed or certified to en-
gage in an activity subject to regulation by
the Commission;
‘‘(ii) that has filed an application for
a license or certificate to engage in an ac-
tivity subject to regulation by the Commis-
sion; or
406
‘‘(iii) that has notified the Commis-
sion, in writing, of an intent to file an ap-
plication for licensing, certification, permit-
ting, or approval of a product or activity
subject to regulation by the Commission,
to fingerprint each individual described in sub-
paragraph (B) before the individual is per-
mitted unescorted access or access, whichever is
applicable, as described in subparagraph (B).
‘‘(B) INDIVIDUALS
REQUIRED
TO
BE
FINGERPRINTED.—The Commission shall re-
quire to be fingerprinted each individual who—
‘‘(i) is permitted unescorted access
to—
‘‘(I) a utilization facility; or
‘‘(II) 
radioactive 
material 
or
other property subject to regulation
by the Commission that the Commis-
sion determines to be of such signifi-
cance to the public health and safety
or the common defense and security
as to warrant fingerprinting and
background checks; or
‘‘(ii) is permitted access to safeguards
information under section 147.’’;
407
(2) by striking ‘‘All fingerprints obtained by a
licensee or applicant as required in the preceding
sentence’’ and inserting the following:
‘‘(2) SUBMISSION
TO
THE
ATTORNEY
GEN-
ERAL.—All fingerprints obtained by an individual or
entity as required in paragraph (1)’’;
(3) by striking ‘‘The costs of any identification
and records check conducted pursuant to the pre-
ceding sentence shall be paid by the licensee or ap-
plicant.’’ and inserting the following:
‘‘(3) COSTS.—The costs of any identification
and records check conducted pursuant to paragraph
(1) shall be paid by the individual or entity required
to conduct the fingerprinting under paragraph
(1)(A).’’; and
(4) by striking ‘‘Notwithstanding any other pro-
vision of law, the Attorney General may provide all
the results of the search to the Commission, and, in
accordance with regulations prescribed under this
section, the Commission may provide such results to
licensee or applicant submitting such fingerprints.’’
and inserting the following:
‘‘(4) PROVISION TO INDIVIDUAL OR ENTITY RE-
QUIRED
TO
CONDUCT
FINGERPRINTING.—Notwith-
standing any other provision of law, the Attorney
408
General may provide all the results of the search to
the Commission, and, in accordance with regulations
prescribed under this section, the Commission may
provide such results to the individual or entity re-
quired to conduct the fingerprinting under para-
graph (1)(A).’’.
(b) ADMINISTRATION.—Subsection c. of section 149
of the Atomic Energy Act of 1954 (42 U.S.C. 2169(c))
is amended—
(1) by striking ‘‘, subject to public notice and
comment, regulations—’’ and inserting ‘‘require-
ments—’’; and
(2) 
by 
striking, 
in 
paragraph 
(2)(B),
‘‘unescorted access to the facility of a licensee or ap-
plicant’’ and inserting ‘‘unescorted access to a utili-
zation facility, radioactive material, or other prop-
erty described in subsection a.(1)(B)’’.
(c) BIOMETRIC METHODS.—Subsection d. of section
149 of the Atomic Energy Act of 1954 (42 U.S.C.
2169(d)) is redesignated as subsection e., and the fol-
lowing is inserted after subsection c.:
‘‘d. USE
OF OTHER BIOMETRIC METHODS.—The
Commission may satisfy any requirement for a person to
conduct fingerprinting under this section using any other
biometric method for identification approved for use by
409
the Attorney General, after the Commission has approved
the alternative method by rule.’’.
SEC. 663. USE OF FIREARMS BY SECURITY PERSONNEL OF
LICENSEES AND CERTIFICATE HOLDERS OF
THE COMMISSION.
Section 161 of the Atomic Energy Act of 1954 (42
U.S.C. 2201) is amended by adding at the end the fol-
lowing subsection:
‘‘(z)(1) notwithstanding section 922(o), (v), and
(w) of title 18, United States Code, or any similar
provision of any State law or any similar rule or reg-
ulation of a State or any political subdivision of a
State prohibiting the transfer or possession of a
handgun, a rifle or shotgun, a short-barreled shot-
gun, a short-barreled rifle, a machinegun, a semi-
automatic assault weapon, ammunition for the fore-
going, or a large capacity ammunition feeding de-
vice, authorize security personnel of licensees and
certificate holders of the Commission (including em-
ployees of contractors of licensees and certificate
holders) to receive, possess, transport, import, and
use 1 or more of those weapons, ammunition, or de-
vices, if the Commission determines that—
410
‘‘(A) such authorization is necessary to the
discharge of the security personnel’s official du-
ties; and
‘‘(B) the security personnel—
‘‘(i) are not otherwise prohibited from
possessing or receiving a firearm under
Federal or State laws pertaining to posses-
sion of firearms by certain categories of
persons;
‘‘(ii) have successfully completed re-
quirements established through guidelines
implementing this subsection for training
in use of firearms and tactical maneuvers;
‘‘(iii) are engaged in the protection
of—
‘‘(I) facilities owned or operated
by a Commission licensee or certifi-
cate holder that are designated by the
Commission; or
‘‘(II) 
radioactive 
material 
or
other property owned or possessed by
a person that is a licensee or certifi-
cate holder of the Commission, or that
is being transported to or from a fa-
cility owned or operated by such a li-
411
censee or certificate holder, and that
has been determined by the Commis-
sion to be of significance to the com-
mon defense and security or public
health and safety; and
‘‘(iv) are discharging their official du-
ties.
‘‘(2) Such receipt, possession, transportation,
importation, or use shall be subject to—
‘‘(A) chapter 44 of title 18, United States
Code, except for section 922(a)(4), (o), (v), and
(w);
‘‘(B) chapter 53 of title 26, United States
Code, except for section 5844; and
‘‘(C) a background check by the Attorney
General, based on fingerprints and including a
check of the system established under section
103(b) of the Brady Handgun Violence Preven-
tion Act (18 U.S.C. 922 note) to determine
whether the person applying for the authority is
prohibited from possessing or receiving a fire-
arm under Federal or State law.
‘‘(3) This subsection shall become effective
upon the issuance of guidelines by the Commission,
412
with the approval of the Attorney General, to govern
the implementation of this subsection.
‘‘(4) In this subsection, the terms ‘handgun’,
‘rifle’, ‘shotgun’, ‘firearm’, ‘ammunition’, ‘machine-
gun’, ‘semiautomatic assault weapon’, ‘large capacity
ammunition feeding device’, ‘short-barreled shotgun’,
and ‘short-barreled rifle’ shall have the meanings
given those terms in section 921(a) of title 18,
United States Code.’’.
SEC. 664. UNAUTHORIZED INTRODUCTION OF DANGEROUS
WEAPONS.
Section 229 a. of the Atomic Energy Act of 1954 (42
U.S.C. 2278a(a)) is amended in the first sentence by in-
serting ‘‘or subject to the licensing authority of the Com-
mission or to certification by the Commission under this
Act or any other Act’’ before the period at the end.
SEC. 665. SABOTAGE OF NUCLEAR FACILITIES OR FUEL.
(a) IN GENERAL.—Section 236 a. of the Atomic En-
ergy Act of 1954 (42 U.S.C. 2284(a)) is amended—
(1) in paragraph (2), by striking ‘‘storage facil-
ity’’ and inserting ‘‘storage, treatment, or disposal
facility’’;
(2) in paragraph (3)—
413
(A) by striking ‘‘such a utilization facility’’
and inserting ‘‘a utilization facility licensed
under this Act’’; and
(B) by striking ‘‘or’’ at the end;
(3) in paragraph (4)—
(A) by striking ‘‘facility licensed’’ and in-
serting ‘‘, uranium conversion, or nuclear fuel
fabrication facility licensed or certified’’; and
(B) by striking the comma at the end and
inserting a semicolon; and
(4) by inserting after paragraph (4) the fol-
lowing:
‘‘(5) any production, utilization, waste storage,
waste treatment, waste disposal, uranium enrich-
ment, uranium conversion, or nuclear fuel fabrica-
tion facility subject to licensing or certification
under this Act during construction of the facility, if
the destruction or damage caused or attempted to be
caused could adversely affect public health and safe-
ty during the operation of the facility;
‘‘(6) any primary facility or backup facility
from which a radiological emergency preparedness
alert and warning system is activated; or
‘‘(7) any radioactive material or other property
subject to regulation by the Nuclear Regulatory
414
Commission that, before the date of the offense, the
Nuclear Regulatory Commission determines, by
order or regulation published in the Federal Reg-
ister, is of significance to the public health and safe-
ty or to common defense and security,’’.
(b) PENALTIES.—Section 236 of the Atomic Energy
Act of 1954 (42 U.S.C. 2284) is amended by striking
‘‘$10,000 or imprisoned for not more than 20 years, or
both, and, if death results to any person, shall be impris-
oned for any term of years or for life’’ both places it ap-
pears and inserting ‘‘$1,000,000 or imprisoned for up to
life without parole’’.
SEC. 666. SECURE TRANSFER OF NUCLEAR MATERIALS.
(a) AMENDMENT.—Chapter 14 of the Atomic Energy
Act of 1954 (42 U.S.C. 2201–2210b) is amended by add-
ing at the end the following new section:
‘‘SEC. 170C. SECURE TRANSFER OF NUCLEAR MATERIALS.
‘‘a. The Nuclear Regulatory Commission shall estab-
lish a system to ensure that materials described in sub-
section b., when transferred or received in the United
States by any party pursuant to an import or export li-
cense issued pursuant to this Act, are accompanied by a
manifest describing the type and amount of materials
being transferred or received. Each individual receiving or
accompanying the transfer of such materials shall be sub-
415
ject to a security background check conducted by appro-
priate Federal entities.
‘‘b. Except as otherwise provided by the Commission
by regulation, the materials referred to in subsection a.
are byproduct materials, source materials, special nuclear
materials, high-level radioactive waste, spent nuclear fuel,
transuranic waste, and low-level radioactive waste (as de-
fined in section 2(16) of the Nuclear Waste Policy Act
of 1982 (42 U.S.C. 10101(16))).’’.
(b) REGULATIONS.—Not later than 1 year after the
date of the enactment of this Act, and from time to time
thereafter as it considers necessary, the Nuclear Regu-
latory Commission shall issue regulations identifying ra-
dioactive materials or classes of individuals that, con-
sistent with the protection of public health and safety and
the common defense and security, are appropriate excep-
tions to the requirements of section 170C of the Atomic
Energy Act of 1954, as added by subsection (a) of this
section.
(c) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect upon the issuance of regu-
lations under subsection (b), except that the background
check requirement shall become effective on a date estab-
lished by the Commission.
416
(d) EFFECT ON OTHER LAW.—Nothing in this sec-
tion or the amendment made by this section shall waive,
modify, or affect the application of chapter 51 of title 49,
United States Code, part A of subtitle V of title 49,
United States Code, part B of subtitle VI of title 49,
United States Code, and title 23, United States Code.
(e) TABLE OF SECTIONS AMENDMENT.—The table of
sections for chapter 14 of the Atomic Energy Act of 1954
is amended by adding at the end the following new item:
‘‘Sec. 170C. Secure transfer of nuclear materials.’’.
SEC. 667. DEPARTMENT OF HOMELAND SECURITY CON-
SULTATION.
Before issuing a license for a utilization facility, the
Nuclear Regulatory Commission shall consult with the De-
partment of Homeland Security concerning the potential
vulnerabilities of the location of the proposed facility to
terrorist attack.
SEC. 668. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated such sums as are necessary to carry out this sub-
title and the amendments made by this subtitle.
(b) AGGREGATE AMOUNT
OF CHARGES.—Section
6101(c)(2)(A) of the Omnibus Budget Reconciliation Act
of 1990 (42 U.S.C. 2214(c)(2)(A)) is amended—
(1) in clause (i), by striking ‘‘and’’ at the end;
417
(2) in clause (ii), by striking the period at the
end and inserting ‘‘; and’’ and
(3) by adding at the end the following:
‘‘(iii) amounts appropriated to the
Commission for homeland security activi-
ties of the Commission for the fiscal year,
except for the costs of fingerprinting and
background checks required by section 149
of the Atomic Energy Act of 1954 (42
U.S.C. 2169) and the costs of conducting
security inspections.’’.
TITLE VII—VEHICLES AND
FUELS
Subtitle A—Existing Programs
SEC. 701. USE OF ALTERNATIVE FUELS BY DUAL-FUELED
VEHICLES.
Section 400AA(a)(3)(E) of the Energy Policy and
Conservation Act (42 U.S.C. 6374(a)(3)(E)) is amended
to read as follows:
‘‘(E)(i) Dual fueled vehicles acquired pursuant to this
section shall be operated on alternative fuels unless the
Secretary determines that an agency qualifies for a waiver
of such requirement for vehicles operated by the agency
in a particular geographic area in which—
418
‘‘(I) the alternative fuel otherwise required to
be used in the vehicle is not reasonably available to
retail purchasers of the fuel, as certified to the Sec-
retary by the head of the agency; or
‘‘(II) the cost of the alternative fuel otherwise
required to be used in the vehicle is unreasonably
more expensive compared to gasoline, as certified to
the Secretary by the head of the agency.
‘‘(ii) The Secretary shall monitor compliance with
this subparagraph by all such fleets and shall report annu-
ally to Congress on the extent to which the requirements
of this subparagraph are being achieved. The report shall
include information on annual reductions achieved from
the use of petroleum-based fuels and the problems, if any,
encountered in acquiring alternative fuels.’’.
SEC. 702. NEIGHBORHOOD ELECTRIC VEHICLES.
(a) AMENDMENTS.—Section 301 of the Energy Pol-
icy Act of 1992 (42 U.S.C. 13211) is amended—
(1) in paragraph (3), by striking ‘‘or a dual
fueled vehicle’’ and inserting ‘‘, a dual fueled vehicle,
or a neighborhood electric vehicle’’;
(2) in paragraph (13), by striking ‘‘and’’ at the
end;
(3) in paragraph (14), by striking the period at
the end and inserting ‘‘; and’’; and
419
(4) by adding at the end the following:
‘‘(15) the term ‘neighborhood electric vehicle’
means a motor vehicle that—
‘‘(A) meets the definition of a low-speed
vehicle (as defined in part 571 of title 49, Code
of Federal Regulations);
‘‘(B) meets the definition of a zero-emis-
sion vehicle (as defined in section 86.1702–99
of title 40, Code of Federal Regulations);
‘‘(C) meets the requirements of Federal
Motor Vehicle Safety Standard No. 500; and
‘‘(D) has a maximum speed of not greater
than 25 miles per hour.’’.
(b) CREDITS.—Notwithstanding section 508 of the
Energy Policy Act of 1992 (42 U.S.C. 13258) or any other
provision of law, a neighborhood electric vehicle shall not
be allocated credit as more than 1 vehicle for purposes
of determining compliance with any requirement under
title III or title V of such Act.
SEC. 703. CREDITS FOR MEDIUM AND HEAVY DUTY DEDI-
CATED VEHICLES.
Section 508 of the Energy Policy Act of 1992 (42
U.S.C. 13258) is amended by adding at the end the fol-
lowing:
420
‘‘(e) CREDIT
FOR PURCHASE
OF MEDIUM
AND
HEAVY DUTY DEDICATED VEHICLES.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) HEAVY
DUTY
DEDICATED
VEHI-
CLE.—The term ‘heavy duty dedicated vehicle’
means a dedicated vehicle that has a gross vehi-
cle weight rating of more than 14,000 pounds.
‘‘(B) MEDIUM
DUTY
DEDICATED
VEHI-
CLE.—The term ‘medium duty dedicated vehi-
cle’ means a dedicated vehicle that has a gross
vehicle weight rating of more than 8,500
pounds but not more than 14,000 pounds.
‘‘(2) CREDITS FOR MEDIUM DUTY VEHICLES.—
The Secretary shall issue 2 full credits to a fleet or
covered person under this title, if the fleet or covered
person acquires a medium duty dedicated vehicle.
‘‘(3) CREDITS FOR HEAVY DUTY VEHICLES.—
The Secretary shall issue 3 full credits to a fleet or
covered person under this title, if the fleet or covered
person acquires a heavy duty dedicated vehicle.
‘‘(4) USE OF CREDITS.—At the request of a
fleet or covered person allocated a credit under this
subsection, the Secretary shall, for the year in which
the acquisition of the dedicated vehicle is made,
treat that credit as the acquisition of 1 alternative
421
fueled vehicle that the fleet or covered person is re-
quired to acquire under this title.’’.
SEC. 704. INCREMENTAL COST ALLOCATION.
Section 303(c) of the Energy Policy Act of 1992 (42
U.S.C. 13212(c)) is amended by striking ‘‘may’’ and in-
serting ‘‘shall’’.
SEC. 705. ALTERNATIVE COMPLIANCE AND FLEXIBILITY.
(a) ALTERNATIVE COMPLIANCE.—
(1) IN GENERAL.—Title V of the Energy Policy
Act of 1992 (42 U.S.C. 13251 et seq.) is amended—
(A) by redesignating section 514 as section
515; and
(B) by inserting after section 513 the fol-
lowing:
‘‘SEC. 514. ALTERNATIVE COMPLIANCE.
‘‘(a) APPLICATION FOR WAIVER.—Any covered per-
son subject to section 501 and any State subject to section
507(o) may petition the Secretary for a waiver of the ap-
plicable requirements of section 501 or 507(o).
‘‘(b) GRANT OF WAIVER.—The Secretary may grant
a waiver of the requirements of section 501 or 507(o)
upon a showing that the fleet owned, operated, leased, or
otherwise controlled by the State or covered person—
‘‘(1) will achieve a reduction in its annual con-
sumption of petroleum fuels equal to the reduction
422
in consumption of petroleum that would result from
100 percent compliance with fuel use requirements
in section 501, or, for entities covered under section
507(o), a reduction equal to the covered State enti-
ty’s consumption of alternative fuels if all its alter-
native fuel vehicles given credit under section 508
were to use alternative fuel 100 percent of the time;
and
‘‘(2) is in compliance with all applicable vehicle
emission standards established by the Administrator
under the Clean Air Act (42 U.S.C. 7401 et seq.).
‘‘(c) REVOCATION OF WAIVER.—The Secretary shall
revoke any waiver granted under this section if the State
or covered person fails to comply with subsection (b).’’.
(2) TABLE OF CONTENTS AMENDMENT.—The
table of contents of the Energy Policy Act of 1992
(42 U.S.C. prec. 13201) is amended by striking the
item relating to section 514 and inserting the fol-
lowing:
‘‘Sec. 514. Alternative compliance.
‘‘Sec. 515. Authorization of appropriations.’’.
(b) CREDITS.—Section 508 of the Energy Policy Act
of 1992 (42 U.S.C. 13258) (as amended by section 703)
is amended—
(1) by redesignating subsections (b) through (e)
as subsections (c) through (f), respectively;
423
(2) by striking subsection (a) and inserting the
following:
‘‘(a) IN GENERAL.—The Secretary shall allocate a
credit to a fleet or covered person that is required to ac-
quire an alternative fueled vehicle under this title, if that
fleet or person acquires an alternative fueled vehicle—
‘‘(1) in excess of the number that fleet or per-
son is required to acquire under this title;
‘‘(2) before the date on which that fleet or per-
son is required to acquire an alternative fueled vehi-
cle under this title; or
‘‘(3) that is eligible to receive credit under sub-
section (b).
‘‘(b) MAXIMUM AVAILABLE POWER.—The Secretary
shall allocate credit to a fleet under subsection (a)(3) for
the acquisition by the fleet of a hybrid vehicle as follows:
‘‘(1) For a hybrid vehicle with at least 4 per-
cent but less than 10 percent maximum available
power, the Secretary shall allocate 25 percent of 1
credit.
‘‘(2) For a hybrid vehicle with at least 10 per-
cent but less than 20 percent maximum available
power, the Secretary shall allocate 50 percent of 1
credit.
424
‘‘(3) For a hybrid vehicle with at least 20 per-
cent but less than 30 percent maximum available
power, the Secretary shall allocate 75 percent of 1
credit.
‘‘(4) For a hybrid vehicle with 30 percent or
more maximum available power, the Secretary shall
allocate 1 credit.’’; and
(3) by adding at the end the following:
‘‘(g) CREDIT
FOR INVESTMENT
IN ALTERNATIVE
FUEL INFRASTRUCTURE.—
‘‘(1) DEFINITION OF QUALIFYING INFRASTRUC-
TURE.—In this subsection, the term ‘qualifying in-
frastructure’ means—
‘‘(A) equipment required to refuel or re-
charge alternative fueled vehicles;
‘‘(B) facilities or equipment required to
maintain, repair, or operate alternative fueled
vehicles; and
‘‘(C) such other activities as the Secretary
considers to constitute an appropriate expendi-
ture in support of the operation, maintenance,
or further widespread adoption of or utilization
of alternative fueled vehicles.
‘‘(2) ISSUANCE
OF
CREDITS.—The Secretary
shall issue a credit to a fleet or covered person under
425
this title for investment in qualifying infrastructure
if the qualifying infrastructure is open to the general
public during regular business hours.
‘‘(3) AMOUNT.—For the purpose of credits
under this subsection—
‘‘(A) 1 credit shall be equal to a minimum
investment of $25,000 in cash or equivalent ex-
penditure, as determined by the Secretary; and
‘‘(B) except in the case of a Federal or
State fleet, no part of the investment may be
provided by Federal or State funds.
‘‘(4) USE OF CREDITS.—At the request of a
fleet or covered person allocated a credit under this
subsection, the Secretary shall, for the year in which
the investment is made, treat that credit as the ac-
quisition of 1 alternative fueled vehicle that the fleet
or covered person is required to acquire under this
title.
‘‘(h) 
DEFINITION
OF
MAXIMUM
AVAILABLE
POWER.—In this section, the term ‘maximum available
power’ means the quotient obtained by dividing—
‘‘(1) the maximum power available from the en-
ergy storage device of a hybrid vehicle, during a
standard 10-second pulse power or equivalent test;
by
426
‘‘(2) the sum of—
‘‘(A) the maximum power described in sub-
paragraph (A); and
‘‘(B) the net power of the internal combus-
tion or heat engine, as determined in accord-
ance with standards established by the Society
of Automobile Engineers.’’.
(c) LEASE CONDENSATE FUELS.—Section 301 of the
Energy Policy Act of 1992 (42 U.S.C. 13211) (as amend-
ed by section 702) is amended—
(1) in paragraph (2), by inserting ‘‘mixtures
containing 50 percent or more by volume of lease
condensate or fuels extracted from lease conden-
sate;’’ after ‘‘liquefied petroleum gas;’’;
(2) in paragraph (14)—
(A) by inserting ‘‘mixtures containing 50
percent or more by volume of lease condensate
or fuels extracted from lease condensate,’’ after
‘‘liquefied petroleum gas,’’; and
(B) by striking ‘‘and’’ at the end;
(3) in paragraph (15), by striking the period at
the end and inserting ‘‘; and’’; and
(4) by adding at the end the following:
‘‘(16) the term ‘lease condensate’ means a mix-
ture, primarily of pentanes and heavier hydro-
427
carbons, that is recovered as a liquid from natural
gas in lease separation facilities.’’.
(d) LEASE CONDENSATE USE CREDITS.—
(1) IN GENERAL.—Title III of the Energy Pol-
icy Act of 1992 (42 U.S.C. 13211 et seq.) is amend-
ed by adding at the end the following:
‘‘SEC. 313. LEASE CONDENSATE USE CREDITS.
‘‘(a) IN GENERAL.—Subject to subsection (d), the
Secretary shall allocate 1 credit under this section to a
fleet or covered person for each qualifying volume of the
lease condensate component of fuel containing at least 50
percent lease condensate, or fuels extracted from lease
condensate, after the date of enactment of this section for
use by the fleet or covered person in vehicles owned or
operated by the fleet or covered person that weigh more
than 8,500 pounds gross vehicle weight rating.
‘‘(b) REQUIREMENTS.—A credit allocated under this
section—
‘‘(1) shall be subject to the same exceptions,
authority, documentation, and use of credits that are
specified for qualifying volumes of biodiesel in sec-
tion 312; and
‘‘(2) shall not be considered a credit under sec-
tion 508.
‘‘(c) REGULATION.—
428
‘‘(1) IN GENERAL.—Subject to subsection (d),
not later than January 1, 2004, after the collection
of appropriate information and data that consider
usage options, uses in other industries, products, or
processes, potential volume capacities, costs, air
emissions, and fuel efficiencies, the Secretary shall
issue a regulation establishing requirements and pro-
cedures for the implementation of this section.
‘‘(2) QUALIFYING
VOLUME.—The regulation
shall include a determination of an appropriate
qualifying volume for lease condensate, except that
in no case shall the Secretary determine that the
qualifying volume for lease condensate is less than
1,125 gallons.
‘‘(d) APPLICABILITY.—This section applies unless the
Secretary finds that the use of lease condensate as an al-
ternative fuel would adversely affect public health or safe-
ty or ambient air quality or the environment.’’.
(2) TABLE OF CONTENTS AMENDMENT.—The
table of contents of the Energy Policy Act of 1992
(42 U.S.C. prec. 13201) is amended by adding at
the end of the items relating to title III the fol-
lowing:
‘‘Sec. 313. Lease condensate use credits.’’.
(e) EMERGENCY EXEMPTION.—Section 301 of the
Energy Policy Act of 1992 (42 U.S.C. 13211) (as amend-
429
ed by section 702 and this section) is amended in para-
graph (9)(E) by inserting before the semicolon at the end
‘‘, including vehicles directly used in the emergency repair
of transmission lines and in the restoration of electricity
service following power outages, as determined by the Sec-
retary’’.
SEC. 706. REVIEW OF ENERGY POLICY ACT OF 1992 PRO-
GRAMS.
(a) IN GENERAL.—Not later than 180 days after the
date of enactment of this section, the Secretary of Energy
shall complete a study to determine the effect that titles
III, IV, and V of the Energy Policy Act of 1992 (42
U.S.C. 13211 et seq.) have had on—
(1) the development of alternative fueled vehicle
technology;
(2) the availability of that technology in the
market; and
(3) the cost of alternative fueled vehicles.
(b) TOPICS.—As part of the study under subsection
(a), the Secretary shall specifically identify—
(1) the number of alternative fueled vehicles ac-
quired by fleets or covered persons required to ac-
quire alternative fueled vehicles;
430
(2) the quantity, by type, of alternative fuel ac-
tually used in alternative fueled vehicles acquired by
fleets or covered persons;
(3) the quantity of petroleum displaced by the
use of alternative fuels in alternative fueled vehicles
acquired by fleets or covered persons;
(4) the direct and indirect costs of compliance
with requirements under titles III, IV, and V of the
Energy Policy Act of 1992 (42 U.S.C. 13211 et
seq.), including—
(A) vehicle acquisition requirements im-
posed on fleets or covered persons;
(B) administrative and recordkeeping ex-
penses;
(C) fuel and fuel infrastructure costs;
(D) associated training and employee ex-
penses; and
(E) any other factors or expenses the Sec-
retary determines to be necessary to compile re-
liable estimates of the overall costs and benefits
of complying with programs under those titles
for fleets, covered persons, and the national
economy;
(5) the existence of obstacles preventing compli-
ance with vehicle acquisition requirements and in-
431
creased use of alternative fuel in alternative fueled
vehicles acquired by fleets or covered persons; and
(6) the projected impact of amendments to the
Energy Policy Act of 1992 made by this title.
(c) REPORT.—Upon completion of the study under
this section, the Secretary shall submit to Congress a re-
port that describes the results of the study and includes
any recommendations of the Secretary for legislative or
administrative changes concerning the alternative fueled
vehicle requirements under titles III, IV and V of the En-
ergy Policy Act of 1992 (42 U.S.C. 13211 et seq.).
SEC. 707. REPORT CONCERNING COMPLIANCE WITH AL-
TERNATIVE FUELED VEHICLE PURCHASING
REQUIREMENTS.
Section 310(b)(1) of the Energy Policy Act of 1992
(42 U.S.C. 13218(b)(1)) is amended by striking ‘‘1 year
after the date of enactment of this subsection’’ and insert-
ing ‘‘February 15, 2004’’.
Subtitle B—Hybrid Vehicles, Ad-
vanced Vehicles, and Fuel Cell
Buses
PART I—HYBRID VEHICLES
SEC. 711. HYBRID VEHICLES.
The Secretary of Energy shall accelerate efforts di-
rected toward the improvement of batteries and other re-
432
chargeable energy storage systems, power electronics, hy-
brid systems integration, and other technologies for use
in hybrid vehicles.
PART II—ADVANCED VEHICLES
SEC. 721. DEFINITIONS.
In this part:
(1) ALTERNATIVE FUELED VEHICLE.—
(A) IN GENERAL.—The term ‘‘alternative
fueled vehicle’’ means a vehicle propelled solely
on an alternative fuel (as defined in section 301
of the Energy Policy Act of 1992 (42 U.S.C.
13211)).
(B) EXCLUSION.—The term ‘‘alternative
fueled vehicle’’ does not include a vehicle that
the Secretary determines, by regulation, does
not yield substantial environmental benefits
over a vehicle operating solely on gasoline or
diesel derived from fossil fuels.
(2) FUEL CELL VEHICLE.—The term ‘‘fuel cell
vehicle’’ means a vehicle propelled by an electric
motor powered by a fuel cell system that converts
chemical energy into electricity by combining oxygen
(from air) with hydrogen fuel that is stored on the
vehicle or is produced onboard by reformation of a
hydrocarbon fuel. Such fuel cell system may or may
433
not include the use of auxiliary energy storage sys-
tems to enhance vehicle performance.
(3) HYBRID VEHICLE.—The term ‘‘hybrid vehi-
cle’’ means a medium or heavy duty vehicle propelled
by an internal combustion engine or heat engine
using any combustible fuel and an onboard recharge-
able energy storage device.
(4) NEIGHBORHOOD ELECTRIC VEHICLE.—The
term ‘‘neighborhood electric vehicle’’ means a motor
vehicle that—
(A) meets the definition of a low-speed ve-
hicle (as defined in part 571 of title 49, Code
of Federal Regulations);
(B) meets the definition of a zero-emission
vehicle (as defined in section 86.1702–99 of
title 40, Code of Federal Regulations);
(C) meets the requirements of Federal
Motor Vehicle Safety Standard No. 500; and
(D) has a maximum speed of not greater
than 25 miles per hour.
(5) PILOT
PROGRAM.—The term ‘‘pilot pro-
gram’’ means the competitive grant program estab-
lished under section 722.
(6) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Energy.
434
(7) ULTRA-LOW
SULFUR
DIESEL
VEHICLE.—
The term ‘‘ultra-low sulfur diesel vehicle’’ means a
vehicle manufactured in any of model years 2003
through 2006 powered by a heavy-duty diesel engine
that—
(A) is fueled by diesel fuel that contains
sulfur at not more than 15 parts per million;
and
(B) emits not more than the lesser of—
(i) for vehicles manufactured in—
(I) model year 2003, 3.0 grams
per brake horsepower-hour of oxides
of nitrogen and .01 grams per brake
horsepower-hour of particulate matter;
and
(II) model years 2004 through
2006, 2.5 grams per brake horse-
power-hour of nonmethane hydro-
carbons and oxides of nitrogen and
.01 grams per brake horsepower-hour
of particulate matter; or
(ii) the quantity of emissions of non-
methane hydrocarbons, oxides of nitrogen,
and particulate matter of the best-per-
forming technology of ultra-low sulfur die-
435
sel vehicles of the same class and applica-
tion that are commercially available.
SEC. 722. PILOT PROGRAM.
(a) ESTABLISHMENT.—The Secretary, in consulta-
tion with the Secretary of Transportation, shall establish
a competitive grant pilot program, to be administered
through the Clean Cities Program of the Department of
Energy, to provide not more than 15 geographically dis-
persed project grants to State governments, local govern-
ments, or metropolitan transportation authorities to carry
out a project or projects for the purposes described in sub-
section (b).
(b) GRANT PURPOSES.—A grant under this section
may be used for the following purposes:
(1) The acquisition of alternative fueled vehicles
or fuel cell vehicles, including—
(A) passenger vehicles (including neighbor-
hood electric vehicles); and
(B) motorized 2-wheel bicycles, scooters, or
other vehicles for use by law enforcement per-
sonnel or other State or local government or
metropolitan transportation authority employ-
ees.
(2) The acquisition of alternative fueled vehi-
cles, hybrid vehicles, or fuel cell vehicles, including—
436
(A) buses used for public transportation or
transportation to and from schools;
(B) delivery vehicles for goods or services;
and
(C) ground support vehicles at public air-
ports (including vehicles to carry baggage or
push or pull airplanes toward or away from ter-
minal gates).
(3) The acquisition of ultra-low sulfur diesel ve-
hicles.
(4) Installation or acquisition of infrastructure
necessary to directly support an alternative fueled
vehicle, fuel cell vehicle, or hybrid vehicle project
funded by the grant, including fueling and other
support equipment.
(5) Operation and maintenance of vehicles, in-
frastructure, and equipment acquired as part of a
project funded by the grant.
(c) APPLICATIONS.—
(1) REQUIREMENTS.—
(A) IN
GENERAL.—The Secretary shall
issue requirements for applying for grants
under the pilot program.
437
(B) MINIMUM REQUIREMENTS.—At a min-
imum, the Secretary shall require that an appli-
cation for a grant—
(i) be submitted by the head of a
State or local government or a metropoli-
tan transportation authority, or any com-
bination thereof, and a registered partici-
pant in the Clean Cities Program of the
Department of Energy; and
(ii) include—
(I) a description of the project
proposed in the application, including
how the project meets the require-
ments of this part;
(II) an estimate of the ridership
or degree of use of the project;
(III) an estimate of the air pollu-
tion emissions reduced and fossil fuel
displaced as a result of the project,
and a plan to collect and disseminate
environmental data, related to the
project to be funded under the grant,
over the life of the project;
(IV) a description of how the
project will be sustainable without
438
Federal assistance after the comple-
tion of the term of the grant;
(V) a complete description of the
costs of the project, including acquisi-
tion, 
construction, 
operation, 
and
maintenance costs over the expected
life of the project;
(VI) a description of which costs
of the project will be supported by
Federal assistance under this part;
and
(VII) documentation to the satis-
faction of the Secretary that diesel
fuel containing sulfur at not more
than 15 parts per million is available
for carrying out the project, and a
commitment by the applicant to use
such fuel in carrying out the project.
(2) PARTNERS.—An applicant under paragraph
(1) may carry out a project under the pilot program
in partnership with public and private entities.
(d) SELECTION CRITERIA.—In evaluating applica-
tions under the pilot program, the Secretary shall—
(1) consider each applicant’s previous experi-
ence with similar projects; and
439
(2) give priority consideration to applications
that—
(A) are most likely to maximize protection
of the environment;
(B) demonstrate the greatest commitment
on the part of the applicant to ensure funding
for the proposed project and the greatest likeli-
hood that the project will be maintained or ex-
panded after Federal assistance under this part
is completed; and
(C) exceed the minimum requirements of
subsection (c)(1)(B)(ii).
(e) PILOT PROJECT REQUIREMENTS.—
(1) MAXIMUM
AMOUNT.—The Secretary shall
not provide more than $20,000,000 in Federal as-
sistance under the pilot program to any applicant.
(2) COST SHARING.—The Secretary shall not
provide more than 50 percent of the cost, incurred
during the period of the grant, of any project under
the pilot program.
(3) MAXIMUM PERIOD OF GRANTS.—The Sec-
retary shall not fund any applicant under the pilot
program for more than 5 years.
(4) DEPLOYMENT
AND
DISTRIBUTION.—The
Secretary shall seek to the maximum extent prac-
440
ticable to ensure a broad geographic distribution of
project sites.
(5) TRANSFER OF INFORMATION AND KNOWL-
EDGE.—The Secretary shall establish mechanisms to
ensure that the information and knowledge gained
by participants in the pilot program are transferred
among the pilot program participants and to other
interested parties, including other applicants that
submitted applications.
(f) SCHEDULE.—
(1) PUBLICATION.—Not later than 90 days
after the date of enactment of this Act, the Sec-
retary shall publish in the Federal Register, Com-
merce Business Daily, and elsewhere as appropriate,
a request for applications to undertake projects
under the pilot program. Applications shall be due
not later than 180 days after the date of publication
of the notice.
(2) SELECTION.—Not later than 180 days after
the date by which applications for grants are due,
the Secretary shall select by competitive, peer re-
viewed proposal, all applications for projects to be
awarded a grant under the pilot program.
(g) LIMIT ON FUNDING.—The Secretary shall pro-
vide not less than 20 nor more than 25 percent of the
441
grant funding made available under this section for the
acquisition of ultra-low sulfur diesel vehicles.
SEC. 723. REPORTS TO CONGRESS.
(a) INITIAL REPORT.—Not later than 60 days after
the date on which grants are awarded under this part,
the Secretary shall submit to Congress a report
containing—
(1) an identification of the grant recipients and
a description of the projects to be funded;
(2) an identification of other applicants that
submitted applications for the pilot program; and
(3) a description of the mechanisms used by the
Secretary to ensure that the information and knowl-
edge gained by participants in the pilot program are
transferred among the pilot program participants
and to other interested parties, including other ap-
plicants that submitted applications.
(b) EVALUATION.—Not later than 3 years after the
date of enactment of this Act, and annually thereafter
until the pilot program ends, the Secretary shall submit
to Congress a report containing an evaluation of the effec-
tiveness of the pilot program, including—
(1) an assessment of the benefits to the envi-
ronment derived from the projects included in the
pilot program; and
442
(2) an estimate of the potential benefits to the
environment to be derived from widespread applica-
tion of alternative fueled vehicles and ultra-low sul-
fur diesel vehicles.
SEC. 724. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Sec-
retary to carry out this part $200,000,000, to remain
available until expended.
PART III—FUEL CELL BUSES
SEC. 731. FUEL CELL TRANSIT BUS DEMONSTRATION.
(a) IN GENERAL.—The Secretary of Energy, in con-
sultation with the Secretary of Transportation, shall es-
tablish a transit bus demonstration program to make com-
petitive, merit-based awards for 5-year projects to dem-
onstrate not more than 25 fuel cell transit buses (and nec-
essary infrastructure) in 5 geographically dispersed local-
ities.
(b) PREFERENCE.—In selecting projects under this
section, the Secretary of Energy shall give preference to
projects that are most likely to mitigate congestion and
improve air quality.
(c) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Secretary of En-
ergy to carry out this section $10,000,000 for each of fis-
cal years 2004 through 2008.
443
Subtitle C—Clean School Buses
SEC. 741. DEFINITIONS.
In this subtitle:
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency.
(2) ALTERNATIVE
FUEL.—The term ‘‘alter-
native fuel’’ means liquefied natural gas, compressed
natural gas, liquefied petroleum gas, hydrogen, pro-
pane, or methanol or ethanol at no less than 85 per-
cent by volume.
(3) ALTERNATIVE
FUEL
SCHOOL
BUS.—The
term ‘‘alternative fuel school bus’’ means a school
bus that meets all of the requirements of this sub-
title and is operated solely on an alternative fuel.
(4) EMISSIONS
CONTROL
RETROFIT
TECH-
NOLOGY.—The term ‘‘emissions control retrofit tech-
nology’’ means a particulate filter or other emissions
control equipment that is verified or certified by the
Administrator or the California Air Resources Board
as an effective emission reduction technology when
installed on an existing school bus.
(5) IDLING.—The term ‘‘idling’’ means oper-
ating an engine while remaining stationary for more
than approximately 15 minutes, except that the term
444
does not apply to routine stoppages associated with
traffic movement or congestion.
(6) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Energy.
(7) ULTRA-LOW SULFUR DIESEL FUEL.—The
term ‘‘ultra-low sulfur diesel fuel’’ means diesel fuel
that contains sulfur at not more than 15 parts per
million.
(8) ULTRA-LOW SULFUR DIESEL FUEL SCHOOL
BUS.—The term ‘‘ultra-low sulfur diesel fuel school
bus’’ means a school bus that meets all of the re-
quirements of this subtitle and is operated solely on
ultra-low sulfur diesel fuel.
SEC. 742. PROGRAM FOR REPLACEMENT OF CERTAIN
SCHOOL BUSES WITH CLEAN SCHOOL BUSES.
(a) ESTABLISHMENT.—The Administrator, in con-
sultation with the Secretary and other appropriate Federal
departments and agencies, shall establish a program for
awarding grants on a competitive basis to eligible entities
for the replacement of existing school buses manufactured
before model year 1991 with alternative fuel school buses
and ultra-low sulfur diesel fuel school buses.
(b) REQUIREMENTS.—
(1) IN GENERAL.—Not later than 90 days after
the date of enactment of this Act, the Administrator
445
shall establish and publish in the Federal Register
grant requirements on eligibility for assistance, and
on implementation of the program established under
subsection (a), including instructions for the submis-
sion of grant applications and certification require-
ments to ensure compliance with this subtitle.
(2) APPLICATION
DEADLINES.—The require-
ments established under paragraph (1) shall require
submission of grant applications not later than—
(A) in the case of the first year of program
implementation, the date that is 180 days after
the publication of the requirements in the Fed-
eral Register; and
(B) in the case of each subsequent year,
June 1 of the year.
(c) ELIGIBLE RECIPIENTS.—A grant shall be award-
ed under this section only—
(1) to 1 or more local or State governmental
entities responsible for providing school bus service
to 1 or more public school systems or responsible for
the purchase of school buses;
(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 to be served by
446
the buses, 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.
(d) AWARD DEADLINES.—
(1) IN GENERAL.—Subject to paragraph (2),
the Administrator shall award a grant made to a
qualified applicant for a fiscal year—
(A) in the case of the first fiscal year of
program implementation, not later than the
date that is 90 days after the application dead-
line established under subsection (b)(2); and
(B) in the case of each subsequent fiscal
year, not later than August 1 of the fiscal year.
(2) INSUFFICIENT
NUMBER
OF
QUALIFIED
GRANT
APPLICATIONS.—If the Administrator does
not receive a sufficient number of qualified grant ap-
plications to meet the requirements of subsection
(i)(1) for a fiscal year, the Administrator shall
award a grant made to a qualified applicant under
447
subsection (i)(2) not later than September 30 of the
fiscal year.
(e) TYPES OF GRANTS.—
(1) IN GENERAL.—A grant under this section
shall be used for the replacement of school buses
manufactured before model year 1991 with alter-
native fuel school buses and ultra-low sulfur diesel
fuel school buses.
(2) NO ECONOMIC BENEFIT.—Other than the
receipt of the grant, a recipient of a grant under this
section may not receive any economic benefit in con-
nection with the receipt of the grant.
(3) PRIORITY OF GRANT APPLICATIONS.—The
Administrator shall give priority to applicants that
propose to replace school buses manufactured before
model year 1977.
(f) CONDITIONS OF GRANT.—A grant provided under
this section shall include the following conditions:
(1) SCHOOL BUS FLEET.—All buses acquired
with funds provided under the grant shall be oper-
ated as part of the school bus fleet for which the
grant was made for a minimum of 5 years.
(2) USE OF FUNDS.—Funds provided under the
grant may only be used—
448
(A) to pay the cost, except as provided in
paragraph (3), of new alternative fuel school
buses or ultra-low sulfur diesel fuel school
buses, including State taxes and contract fees
associated with the acquisition of such buses;
and
(B) to provide—
(i) up to 20 percent of the price of the
alternative fuel school buses acquired, for
necessary alternative fuel infrastructure if
the infrastructure will only be available to
the grant recipient; and
(ii) up to 25 percent of the price of
the alternative fuel school buses acquired,
for necessary alternative fuel infrastructure
if the infrastructure will be available to the
grant recipient and to other bus fleets.
(3) GRANT RECIPIENT FUNDS.—The grant re-
cipient shall be required to provide at least—
(A) in the case of a grant recipient de-
scribed in paragraph (1) or (3) of subsection
(c), the lesser of—
(i) an amount equal to 15 percent of
the total cost of each bus received; or
(ii) $15,000 per bus; and
449
(B) in the case of a grant recipient de-
scribed in subsection (c)(2), the lesser of—
(i) an amount equal to 20 percent of
the total cost of each bus received; or
(ii) $20,000 per bus.
(4) ULTRA-LOW SULFUR DIESEL FUEL.—In the
case of a grant recipient receiving a grant for ultra-
low sulfur diesel fuel school buses, the grant recipi-
ent shall be required to provide documentation to
the satisfaction of the Administrator that diesel fuel
containing sulfur at not more than 15 parts per mil-
lion is available for carrying out the purposes of the
grant, and a commitment by the applicant to use
such fuel in carrying out the purposes of the grant.
(5) TIMING.—All alternative fuel school buses,
ultra-low sulfur diesel fuel school buses, or alter-
native fuel infrastructure acquired under a grant
awarded under this section shall be purchased and
placed in service as soon as practicable.
(g) BUSES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), funding under a grant made under this
section for the acquisition of new alternative fuel
school buses or ultra-low sulfur diesel fuel school
buses shall only be used to acquire school buses—
450
(A) with a gross vehicle weight of greater
than 14,000 pounds;
(B) that are powered by a heavy duty en-
gine;
(C) in the case of alternative fuel school
buses manufactured in model years 2004
through 2006, that emit not more than 1.8
grams per brake horsepower-hour of non-
methane hydrocarbons and oxides of nitrogen
and .01 grams per brake horsepower-hour of
particulate matter; and
(D) in the case of ultra-low sulfur diesel
fuel school buses manufactured in model years
2004 through 2006, that emit not more than
2.5 grams per brake horsepower-hour of non-
methane hydrocarbons and oxides of nitrogen
and .01 grams per brake horsepower-hour of
particulate matter.
(2) LIMITATIONS.—A bus shall not be acquired
under this section that emits nonmethane hydro-
carbons, oxides of nitrogen, or particulate matter at
a rate greater than the best performing technology
of the same class of ultra-low sulfur diesel fuel
school buses commercially available at the time the
grant is made.
451
(h) DEPLOYMENT AND DISTRIBUTION.—The Admin-
istrator shall—
(1) seek, to the maximum extent practicable, to
achieve nationwide deployment of alternative fuel
school buses and ultra-low sulfur diesel fuel school
buses through the program under this section; and
(2) ensure a broad geographic distribution of
grant awards, with a goal of no State receiving more
than 10 percent of the grant funding made available
under this section for a fiscal year.
(i) ALLOCATION OF FUNDS.—
(1) IN GENERAL.—Subject to paragraph (2), of
the amount of grant funding made available to carry
out this section for any fiscal year, the Adminis-
trator shall use—
(A) 70 percent for the acquisition of alter-
native fuel school buses or supporting infra-
structure; and
(B) 30 percent for the acquisition of ultra-
low sulfur diesel fuel school buses.
(2) INSUFFICIENT
NUMBER
OF
QUALIFIED
GRANT APPLICATIONS.—After the first fiscal year in
which this program is in effect, if the Administrator
does not receive a sufficient number of qualified
grant applications to meet the requirements of sub-
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
expended—
(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
expended—
(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;
464
(B) document project results and energy
savings (in estimated units of energy con-
served);
(C) facilitate partnerships among inter-
ested parties in at least 2 of the fields of—
(i) transportation;
(ii) law enforcement;
(iii) education;
(iv) public health;
(v) environment; and
(vi) energy;
(D) maximize bicycle facility investments;
(E) demonstrate methods that may be
used in other regions of the United States; and
(F) facilitate the continuation of ongoing
programs that are sustained by local resources.
(3) COST SHARING.—At least 20 percent of the
cost of each pilot project described in paragraph (1)
shall be provided from State or local sources.
(d) ENERGY AND BICYCLING RESEARCH STUDY.—
(1) IN GENERAL.—Not later than 2 years after
the date of enactment of this Act, the Secretary
shall enter into a contract with the National Acad-
emy of Sciences for, and the National Academy of
Sciences shall conduct and submit to Congress a re-
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
balanced 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
505
program for the Next Generation Lighting Initiative
through competitively selected awards. The Secretary may
give preference to participants of the Industry Alliance se-
lected pursuant to subsection (c).
(f) INTELLECTUAL PROPERTY.—The Secretary may
require, in accordance with the authorities provided in sec-
tion 202(a)(ii) of title 35, United States Code, section 152
of the Atomic Energy Act of 1954 (42 U.S.C. 2182), and
section 9 of the Federal Nonnuclear Energy Research and
Development Act of 1974 (42 U.S.C. 5908), that—
(1) for any new invention resulting from activi-
ties under subsection (d)—
(A) the Industry Alliance members that
are active participants in research, development,
and demonstration activities related to the ad-
vanced solid-state lighting technologies that are
the subject of this section shall be granted first
option to negotiate with the invention owner
nonexclusive licenses and royalties for uses of
the invention related to solid-state lighting on
terms that are reasonable under the cir-
cumstances; and
(B)(i) for 1 year after a United States pat-
ent is issued for the invention, the patent hold-
er shall not negotiate any license or royalty
506
with any entity that is not a participant in the
Industry Alliance described in subparagraph
(A); and
(ii) during the year described in clause (i),
the invention owner shall negotiate nonexclusive
licenses and royalties in good faith with any in-
terested participant in the Industry Alliance de-
scribed in subparagraph (A); and
(2) such other terms as the Secretary deter-
mines are required to promote accelerated commer-
cialization of inventions made under the Initiative.
(g) NATIONAL ACADEMY REVIEW.—The Secretary
shall enter into an arrangement with the National Acad-
emy 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 and progress towards achieving them.
The Secretary shall consider the results of such reviews
in evaluating the information obtained under subsection
(d)(2).
(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
507
that produces white light using externally applied
voltage.
(2) RESEARCH.—The term ‘‘research’’ includes
research on the technologies, materials, and manu-
facturing processes required for white light emitting
diodes.
(3) INDUSTRY ALLIANCE.—The term ‘‘Industry
Alliance’’ means an entity selected by the Secretary
under subsection (c).
(4) WHITE LIGHT EMITTING DIODE.—The term
‘‘white 
light 
emitting 
diode’’ 
means 
a
semiconducting package, utilizing either organic or
inorganic materials, that produces white light using
externally applied voltage.
SEC. 906. NATIONAL BUILDING PERFORMANCE INITIATIVE.
(a) INTERAGENCY GROUP.—Not later than 90 days
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
advisory committee established under subsection (e), a
National Building Performance Initiative (in this section
referred to as the ‘‘Initiative’’). The interagency group
shall be co-chaired by appropriate officials of the Depart-
ment and the Department of Commerce, who shall jointly
508
arrange for the provision of necessary administrative sup-
port to the group.
(b) INTEGRATION
OF
EFFORTS.—The Initiative,
working with the National Institute of Building Sciences,
shall integrate Federal, State, and voluntary private sector
efforts to reduce the costs of construction, operation,
maintenance, and renovation of commercial, industrial, in-
stitutional, and residential buildings.
(c) PLAN.—Not later than 1 year after the date of
enactment of this Act, the interagency group shall submit
to Congress a plan for carrying out the appropriate Fed-
eral role in the Initiative. The plan 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
Federal portion of the Initiative, the Department shall be
the lead agency for all aspects of building performance re-
lated to use and conservation of energy.
(e) ADVISORY COMMITTEE.—
509
(1) ESTABLISHMENT.—The Secretary, in con-
sultation with the Secretary of Commerce and 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 build-
ing performance.
SEC. 907. SECONDARY ELECTRIC VEHICLE BATTERY USE
PROGRAM.
(a) DEFINITIONS.—For purposes of this section:
510
(1) ASSOCIATED EQUIPMENT.—The term ‘‘asso-
ciated equipment’’ means equipment located where
the batteries will be used that is necessary to enable
the use of the energy stored in the batteries.
(2) BATTERY.—The term ‘‘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 electricity.
(b) PROGRAM.—The Secretary shall establish and
conduct a research, development, demonstration, and com-
mercial application program for the secondary use of bat-
teries if the Secretary finds that there are sufficient num-
bers of such batteries to support the program. The pro-
gram shall be—
(1) designed to demonstrate the use of batteries
in secondary applications, 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 bat-
teries in field operations, and 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
industry.
511
(c) SOLICITATION.—Not later than 180 days after
the date of enactment of this Act, if the Secretary finds
under subsection (b) that there are sufficient numbers of
batteries to support the program, the Secretary shall so-
licit proposals to demonstrate the secondary use of bat-
teries and associated equipment and supporting infra-
structure in geographic locations throughout the United
States. The Secretary may make additional solicitations
for proposals if the Secretary determines that such solici-
tations are necessary to carry out this section.
(d) SELECTION OF PROPOSALS.—
(1) IN
GENERAL.—The Secretary shall, not
later than 90 days after the closing date established
by the Secretary for receipt of proposals under sub-
section (c), select up to 5 proposals which may re-
ceive financial assistance under this section, subject
to the availability of appropriations.
(2) DIVERSITY; ENVIRONMENTAL EFFECT.—In
selecting proposals, the Secretary shall consider di-
versity of battery type, geographic and climatic di-
versity, and life-cycle environmental effects of the
approaches.
(3) LIMITATION.—No 1 project selected under
this section shall receive more than 25 percent of the
funds authorized for the program under this section.
512
(4) OPTIMIZATION OF FEDERAL RESOURCES.—
The Secretary shall consider the extent of involve-
ment of State or local government and other persons
in each demonstration project to optimize use of
Federal resources.
(5) OTHER CRITERIA.—The Secretary may con-
sider such other criteria as the Secretary considers
appropriate.
(e) CONDITIONS.—The Secretary shall require that—
(1) relevant information be provided to the De-
partment, the users of the batteries, the proposers,
and the battery manufacturers;
(2) the proposer provide at least 50 percent of
the costs associated with the proposal; and
(3) the proposer provide to the Secretary such
information regarding the disposal of the batteries
as the Secretary may require to ensure that the pro-
poser disposes of the batteries in accordance with
applicable law.
SEC. 908. 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.
513
7133(a)(9)), in consultation with the Director of the Of-
fice of Science, for grants to be competitively awarded and
subject to peer review for research relating to energy effi-
ciency.
(b) REPORT.—The Secretary shall submit to Con-
gress, along with the President’s annual budget request
under section 1105(a) of title 31, United States Code, a
report on the activities of the Energy Efficiency Science
Initiative, including a description of the process used to
award the funds and an explanation of how the research
relates to energy efficiency.
SEC. 909. 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.
SEC. 910. ADVANCED ENERGY TECHNOLOGY TRANSFER
CENTERS.
(a) GRANTS.—Not later than 18 months after the
date of enactment of this Act, the Secretary shall make
grants to nonprofit institutions, State and local govern-
ments, or universities (or consortia thereof), to establish
a geographically dispersed network of Advanced Energy
Technology Transfer Centers, to be located in areas the
514
Secretary determines have the greatest need of the serv-
ices of such Centers.
(b) ACTIVITIES.—
(1) IN GENERAL.—Each Center shall operate a
program to encourage demonstration and commer-
cial application of advanced energy methods and
technologies through education and outreach to
building and industrial professionals, and to other
individuals and organizations with an interest in ef-
ficient energy use.
(2) ADVISORY PANEL.—Each Center shall es-
tablish an advisory panel to advise the Center on
how best to accomplish the activities under para-
graph (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 fol-
lowing criteria, at a minimum:
(1) The ability of the applicant to carry out the
activities in subsection (b).
515
(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 es-
tablish an advisory committee to advise the Secretary on
the establishment of Centers under this section. The advi-
sory committee shall be composed of individuals with ex-
pertise in the area of advanced energy methods and tech-
nologies, 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) ADVANCED ENERGY METHODS AND TECH-
NOLOGIES.—The term ‘‘advanced energy methods
516
and technologies’’ means all methods and tech-
nologies that promote energy efficiency and con-
servation, including distributed generation tech-
nologies, and life-cycle analysis of energy use.
(2) CENTER.—The term ‘‘Center’’ means an
Advanced Energy Technology Transfer Center estab-
lished pursuant to this section.
(3) DISTRIBUTED
GENERATION.—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
SEC. 911. DISTRIBUTED ENERGY AND ELECTRIC ENERGY
SYSTEMS.
(a) IN GENERAL.—The following sums are author-
ized to be appropriated to the Secretary for distributed
energy and electric energy systems activities, including ac-
tivities authorized under this subtitle:
(1) For fiscal year 2004, $190,000,000.
(2) For fiscal year 2005, $200,000,000.
(3) For fiscal year 2006, $220,000,000.
(4) For fiscal year 2007, $240,000,000.
(5) For fiscal year 2008, $260,000,000.
517
(b) 
MICRO-COGENERATION
ENERGY
TECH-
NOLOGY.—From amounts authorized under subsection
(a), $20,000,000 for each of fiscal years 2004 and 2005
is authorized for activities under section 914.
SEC. 912. HYBRID DISTRIBUTED POWER SYSTEMS.
(a) REQUIREMENT.—Not later than 1 year after the
date of enactment of this Act, the Secretary shall develop
and transmit to Congress a strategy for a comprehensive
research, development, demonstration, and commercial ap-
plication program to develop hybrid distributed power sys-
tems that combine—
(1) 1 or more renewable electric power genera-
tion technologies of 10 megawatts or less located
near the site of electric energy use; and
(2) nonintermittent electric power generation
technologies suitable for use in a distributed power
system.
(b) CONTENTS.—The strategy shall—
(1) identify the needs best met with such hybrid
distributed power systems and the technological bar-
riers to the use of such systems;
(2) provide for the development of methods to
design, test, integrate into systems, and operate
such hybrid distributed power systems;
518
(3) include, as appropriate, research, develop-
ment, demonstration, and commercial application on
related technologies needed for the adoption of such
hybrid distributed power systems, including energy
storage devices and environmental control tech-
nologies;
(4) include research, development, demonstra-
tion, and commercial application of interconnection
technologies for communications and controls of dis-
tributed generation architectures, particularly tech-
nologies promoting real-time response to power mar-
ket information and physical conditions on the elec-
trical grid; and
(5) describe how activities under the strategy
will be integrated with other research, development,
demonstration, and commercial application activities
supported by the Department related to electric
power technologies.
SEC. 913. HIGH POWER DENSITY INDUSTRY PROGRAM.
The Secretary shall establish a comprehensive re-
search, development, demonstration, and commercial ap-
plication program to improve energy efficiency of high
power density facilities, including data centers, server
farms, and telecommunications facilities. Such program
shall consider technologies that provide significant im-
519
provement in thermal controls, metering, load manage-
ment, peak load reduction, or the efficient cooling of elec-
tronics.
SEC. 914. MICRO-COGENERATION ENERGY TECHNOLOGY.
The Secretary shall make competitive, merit-based
grants to consortia for the development of micro-cogenera-
tion energy technology. The consortia shall explore—
(1) the use of small-scale combined heat and
power in residential heating appliances; and
(2) the use of excess power to operate other ap-
pliances within the residence and supply excess gen-
erated power to the power grid.
SEC. 
915. 
DISTRIBUTED 
ENERGY 
TECHNOLOGY 
DEM-
ONSTRATION PROGRAM.
The Secretary, within the sums authorized under sec-
tion 911(a), may provide financial assistance to coordi-
nating consortia of interdisciplinary participants for dem-
onstrations designed to accelerate the utilization of dis-
tributed energy technologies, such as fuel cells, microtur-
bines, reciprocating engines, thermally activated tech-
nologies, and combined heat and power systems, in highly
energy intensive commercial applications.
SEC. 916. RECIPROCATING POWER.
The Secretary shall conduct a research, development,
and demonstration program regarding fuel system optimi-
520
zation and emissions reduction after-treatment tech-
nologies for industrial reciprocating engines. Such after-
treatment technologies shall use processes that reduce
emissions by recirculating exhaust gases and shall be de-
signed to be retrofitted to any new or existing diesel or
natural gas engine used for power generation, peaking
power generation, combined heat and power, or compres-
sion.
Subtitle C—Renewable Energy
SEC. 918. RENEWABLE ENERGY.
(a) IN GENERAL.—The following sums are author-
ized to be appropriated to the Secretary for renewable en-
ergy research, development, demonstration, and commer-
cial application activities, including activities authorized
under this subtitle:
(1) For fiscal year 2004, $480,000,000.
(2) For fiscal year 2005, $550,000,000.
(3) For fiscal year 2006, $610,000,000.
(4) For fiscal year 2007, $659,000,000.
(5) For fiscal year 2008, $710,000,000.
(b) BIOENERGY.—From the amounts authorized
under subsection (a), the following sums are authorized
to be appropriated to carry out section 919:
(1) For fiscal year 2004, $135,425,000.
(2) For fiscal year 2005, $155,600,000.
521
(3) For fiscal year 2006, $167,650,000.
(4) For fiscal year 2007, $180,000,000.
(5) For fiscal year 2008, $192,000,000.
(c) 
CONCENTRATING
SOLAR
POWER.—From
amounts authorized under subsection (a), the following
sums are authorized to be appropriated to carry out sec-
tion 920:
(1) For fiscal year 2004, $20,000,000.
(2) For fiscal year 2005, $40,000,000.
(3) For each of fiscal years 2006, 2007 and
2008, $50,000,000.
(d) PUBLIC BUILDINGS.—From the amounts author-
ized under subsection (a), $30,000,000 for each of the fis-
cal years 2004 through 2008 are authorized to be appro-
priated to carry out section 922.
(e) LIMITS ON USE OF FUNDS.—
(1) NO FUNDS FOR RENEWABLE SUPPORT AND
IMPLEMENTATION.—None of the funds authorized to
be appropriated under this section may be used for
Renewable Support and Implementation.
(2) GRANTS.—Of the funds authorized under
subsection (b), not less than $5,000,000 for each fis-
cal year shall be made available for grants to His-
torically Black Colleges and Universities, Tribal Col-
leges, and Hispanic-Serving Institutions.
522
(3) REGIONAL
FIELD
VERIFICATION
PRO-
GRAM.—Of the funds authorized under subsection
(a), not less than $4,000,000 for each fiscal year
shall be made available for the Regional Field
Verification Program of the Department.
(4) OFF-STREAM
PUMPED
STORAGE
HYDRO-
POWER.—Of the funds authorized under subsection
(a), such sums as may be necessary shall be made
available for demonstration projects of off-stream
pumped storage hydropower.
(f) CONSULTATION.—In carrying out this subtitle,
the Secretary, in consultation with the Secretary of Agri-
culture, shall demonstrate the use of advanced wind power
technology, including combined use with coal gasification;
biomass; geothermal energy systems; and other renewable
energy technologies to assist in delivering electricity to
rural and remote locations.
SEC. 919. BIOENERGY PROGRAMS.
(a) DEFINITIONS.—For the purposes of this section:
(1) The term ‘‘agricultural byproducts’’ in-
cludes waste products, including poultry fat and
poultry waste.
(2) The term ‘‘cellulosic biomass’’ means any
portion of a crop containing lignocellulose or hemi-
cellulose, including barley grain, grapeseed, forest
523
thinnings, rice bran, rice hulls, rice straw, soybean
matter, and sugarcane bagasse, or any crop grown
specifically for the purpose of producing cellulosic
feedstocks.
(b) PROGRAM.—The Secretary shall conduct a pro-
gram of research, development, demonstration, and com-
mercial application for bioenergy, including—
(1) biopower energy systems;
(2) biofuels;
(3) bio-based products;
(4) integrated biorefineries that may produce
biopower, biofuels, and bio-based products;
(5) cross-cutting research and development in
feedstocks and enzymes; and
(6) economic analysis.
(c) BIOFUELS
AND BIO-BASED PRODUCTS.—The
goals of the biofuels and bio-based products programs
shall be to develop, in partnership with industry—
(1) advanced biochemical and thermochemical
conversion technologies capable of making biofuels
that are price-competitive with gasoline or diesel in
either internal combustion engines or fuel cell-pow-
ered vehicles, and bio-based products from a variety
of feedstocks, including grains, cellulosic biomass,
and other agricultural byproducts; and
524
(2) advanced biotechnology processes capable of
making biofuels and bio-based products with empha-
sis on development of biorefinery technologies using
enzyme-based processing systems.
SEC. 920. CONCENTRATING SOLAR POWER RESEARCH AND
DEVELOPMENT PROGRAM.
(a) IN GENERAL.—The Secretary shall conduct a
program of research and development to evaluate the po-
tential of concentrating solar power for hydrogen produc-
tion, including cogeneration approaches for both hydrogen
and electricity. Such program shall take advantage of ex-
isting facilities to the extent possible and shall include—
(1) development of optimized technologies that
are common to both electricity and hydrogen produc-
tion;
(2) evaluation of thermochemical cycles for hy-
drogen production at the temperatures attainable
with concentrating solar power;
(3) evaluation of materials issues for the
thermochemical cycles described in paragraph (2);
(4) system architectures and economics studies;
and
(5) coordination with activities in the Advanced
Reactor Hydrogen Cogeneration Project on high
525
temperature materials, thermochemical cycles, and
economic issues.
(b) ASSESSMENT.—In carrying out the program
under this section, the Secretary shall—
(1) assess conflicting guidance on the economic
potential of concentrating solar power for electricity
production received from the National Research
Council report entitled ‘‘Renewable Power Pathways:
A Review of the U.S. Department of Energy’s Re-
newable Energy Programs’’ in 2000 and subsequent
Department-funded reviews of that report; and
(2) provide an assessment of the potential im-
pact of the technology before, or concurrent with,
submission of the fiscal year 2006 budget.
(c) REPORT.—Not later than 5 years after the date
of enactment of this Act, the Secretary shall provide a re-
port to Congress on the economic and technical potential
for electricity or hydrogen production, with or without co-
generation, with concentrating solar power, including the
economic and technical feasibility of potential construction
of a pilot demonstration facility suitable for commercial
production of electricity or hydrogen from concentrating
solar power.
526
SEC. 921. MISCELLANEOUS PROJECTS.
The Secretary may conduct research, development,
demonstration, and commercial application programs
for—
(1) ocean energy, including wave energy; and
(2) the combined use of renewable energy tech-
nologies with one another and with other energy
technologies, including the combined use of wind
power and coal gasification technologies.
SEC. 922. RENEWABLE ENERGY IN PUBLIC BUILDINGS.
(a) DEMONSTRATION AND TECHNOLOGY TRANSFER
PROGRAM.—The Secretary shall establish a program for
the demonstration of innovative technologies for solar and
other renewable energy sources in buildings owned or op-
erated by a State or local government, and for the dissemi-
nation of information resulting from such demonstration
to interested parties.
(b) LIMIT ON FEDERAL FUNDING.—The Secretary
shall provide under this section no more than 40 percent
of the incremental costs of the solar or other renewable
energy source project funded.
(c) REQUIREMENT.—As part of the application for
awards under this section, the Secretary shall require all
applicants—
527
(1) to demonstrate a continuing commitment to
the use of solar and other renewable energy sources
in buildings they own or operate; and
(2) to state how they expect any award to fur-
ther their transition to the significant use of renew-
able energy.
SEC. 923. STUDY OF MARINE RENEWABLE ENERGY OP-
TIONS.
(a) IN GENERAL.—The Secretary shall enter into an
arrangement with the National Academy of Sciences to
conduct a study on—
(1) the feasibility of various methods of renew-
able generation of energy from the ocean, including
energy from waves, tides, currents, and thermal gra-
dients; and
(2) the research, development, demonstration,
and commercial application activities required to
make marine renewable energy generation competi-
tive with other forms of electricity generation.
(b) TRANSMITTAL.—Not later than 1 year after the
date of enactment of this Act, the Secretary shall transmit
the study to Congress along with the Secretary’s rec-
ommendations for implementing the results of the study.
528
Subtitle D—Nuclear Energy
SEC. 924. NUCLEAR ENERGY.
(a) CORE PROGRAMS.—The following sums are au-
thorized to be appropriated to the Secretary for nuclear
energy research, development, demonstration, and com-
mercial application activities, including activities author-
ized under this subtitle, other than those described in sub-
section (b):
(1) For fiscal year 2004, $273,000,000.
(2) For fiscal year 2005, $355,000,000.
(3) For fiscal year 2006, $430,000,000.
(4) For fiscal year 2007, $455,000,000.
(5) For fiscal year 2008, $545,000,000.
(b) NUCLEAR INFRASTRUCTURE SUPPORT.—The fol-
lowing sums are authorized to be appropriated to the Sec-
retary for activities under section 925(e):
(1) For fiscal year 2004, $125,000,000.
(2) For fiscal year 2005, $130,000,000.
(3) For fiscal year 2006, $135,000,000.
(4) For fiscal year 2007, $140,000,000.
(5) For fiscal year 2008, $145,000,000.
(c) ALLOCATIONS.—From amounts authorized under
subsection (a), the following sums are authorized:
(1) For activities under section 926—
(A) for fiscal year 2004, $140,000,000;
529
(B) for fiscal year 2005, $145,000,000;
(C) for fiscal year 2006, $150,000,000;
(D) for fiscal year 2007, $155,000,000;
and
(E) for fiscal year 2008, $275,000,000.
(2) For activities under section 927—
(A) for fiscal year 2004, $35,200,000;
(B) for fiscal year 2005, $44,350,000;
(C) for fiscal year 2006, $49,200,000;
(D) for fiscal year 2007, $54,950,000; and
(E) for fiscal year 2008, $60,000,000.
(3) For activities under section 929, for each of
fiscal years 2004 through 2008, $6,000,000.
(d) LIMITATION ON USE OF FUNDS.—None of the
funds authorized under this section may be used for de-
commissioning the Fast Flux Test Facility.
SEC. 925. NUCLEAR ENERGY RESEARCH AND DEVELOP-
MENT PROGRAMS.
(a) NUCLEAR ENERGY RESEARCH INITIATIVE.—The
Secretary shall carry out a Nuclear Energy Research Ini-
tiative for research and development related to nuclear en-
ergy.
(b) NUCLEAR ENERGY PLANT OPTIMIZATION PRO-
GRAM.—The Secretary shall carry out a Nuclear Energy
Plant Optimization Program to support research and de-
530
velopment activities addressing reliability, availability, pro-
ductivity, component aging, safety, and security of existing
nuclear power plants.
(c) NUCLEAR POWER 2010 PROGRAM.—The Sec-
retary shall carry out a Nuclear Power 2010 Program,
consistent with recommendations in the October 2001 re-
port entitled ‘‘A Roadmap to Deploy New Nuclear Power
Plants in the United States by 2010’’ issued by the Nu-
clear Energy Research Advisory Committee of the Depart-
ment. Whatever type of reactor is chosen for the hydrogen
cogeneration project under subtitle C of title VI, that type
shall not be addressed in the Program under this section.
The Program shall include—
(1) support for first-of-a-kind engineering de-
sign and certification expenses of advanced nuclear
power plant designs, which offer improved safety
and economics over current conventional plants and
the promise of near-term to medium-term commer-
cial deployment;
(2) action by the Secretary to encourage domes-
tic power companies to install new nuclear plant ca-
pacity as soon as possible;
(3) utilization of the expertise and capabilities
of industry, universities, and National Laboratories
531
in evaluation of advanced nuclear fuel cycles and
fuels testing;
(4) consideration of proliferation-resistant pas-
sively-safe, small reactors suitable for long-term elec-
tricity production without refueling and suitable for
use in remote installations;
(5) participation of international collaborators
in research, development, design, and deployment ef-
forts as appropriate and consistent with United
States interests in nonproliferation of nuclear weap-
ons;
(6) encouragement for university and industry
participation; and
(7) selection of projects such as to strengthen
the competitive position of the domestic nuclear
power industrial infrastructure.
(d) GENERATION IV NUCLEAR ENERGY SYSTEMS
INITIATIVE.—The Secretary shall carry out a Generation
IV Nuclear Energy Systems Initiative to develop an over-
all technology plan and to support research and develop-
ment necessary to make an informed technical decision
about the most promising candidates for eventual commer-
cial application. The Initiative shall examine advanced
proliferation-resistant and passively safe reactor designs,
including designs that—
532
(1) are economically competitive with other elec-
tric power generation plants;
(2) have higher efficiency, lower cost, and im-
proved safety compared to reactors in operation on
the date of enactment of this Act;
(3) use fuels that are proliferation-resistant and
have substantially reduced production of high-level
waste per unit of output; and
(4) use improved instrumentation.
(e) NUCLEAR
INFRASTRUCTURE
SUPPORT.—The
Secretary shall develop and implement a strategy for the
facilities of the Office of Nuclear Energy, Science, and
Technology and shall transmit a report containing the
strategy along with the President’s budget request to Con-
gress for fiscal year 2006.
SEC. 926. ADVANCED FUEL CYCLE INITIATIVE.
(a) IN GENERAL.—The Secretary, through the Direc-
tor of the Office of Nuclear Energy, Science, and Tech-
nology, shall conduct an advanced fuel recycling tech-
nology research and development program to evaluate pro-
liferation-resistant fuel recycling and transmutation tech-
nologies that minimize environmental or public health and
safety impacts as an alternative to aqueous reprocessing
technologies deployed as of the date of enactment of this
Act in support of evaluation of alternative national strate-
533
gies for spent nuclear fuel and the Generation IV ad-
vanced reactor concepts, subject to annual review by the
Secretary’s Nuclear Energy Research Advisory Committee
or other independent entity, as appropriate. Opportunities
to enhance progress of the program through international
cooperation should be sought.
(b) REPORTS.—The Secretary shall report on the ac-
tivities of the advanced fuel recycling technology research
and development program as part of the Department’s an-
nual budget submission.
SEC. 927. UNIVERSITY NUCLEAR SCIENCE AND ENGINEER-
ING SUPPORT.
(a) ESTABLISHMENT.—The Secretary shall support
a program to invest in human resources and infrastructure
in the nuclear sciences and engineering and related fields
(including health physics and nuclear and radiochemistry),
consistent with departmental missions related to civilian
nuclear research and development.
(b) DUTIES.—In carrying out the program under this
section, the Secretary shall establish fellowship and faculty
assistance programs, as well as provide support for funda-
mental research and encourage collaborative research
among industry, National Laboratories, and universities
through the Nuclear Energy Research Initiative. The Sec-
retary is encouraged to support activities addressing the
534
entire fuel cycle through involvement of both the Office
of Nuclear Energy, Science, and Technology and the Of-
fice of Civilian Radioactive Waste Management. The Sec-
retary shall support communication and outreach related
to nuclear science, engineering, and nuclear waste man-
agement, consistent with interests of the United States in
nonproliferation of nuclear weapons capabilities.
(c) STRENGTHENING UNIVERSITY RESEARCH AND
TRAINING REACTORS
AND ASSOCIATED INFRASTRUC-
TURE.—Activities under this section may include—
(1) converting research and training reactors
currently using high-enrichment fuels to low-enrich-
ment fuels, upgrading operational instrumentation,
and sharing of reactors among institutions of higher
education;
(2) providing technical assistance, in collabora-
tion with the United States nuclear industry, in reli-
censing and upgrading research and training reac-
tors as part of a student training program; and
(3) providing funding, through the Innovations
in Nuclear Infrastructure and Education Program,
for reactor improvements as part of a focused effort
that emphasizes research, training, and education.
(d) UNIVERSITY NATIONAL LABORATORY INTER-
ACTIONS.—The Secretary shall develop sabbatical fellow-
535
ship and visiting scientist programs to encourage sharing
of personnel between National Laboratories and univer-
sities.
(e) OPERATING AND MAINTENANCE COSTS.—Fund-
ing for a research project provided under this section may
be used to offset a portion of the operating and mainte-
nance costs of a research and training reactor at an insti-
tution of higher education used in the research project.
SEC. 928. SECURITY OF REACTOR DESIGNS.
The Secretary, through the Director of the Office of
Nuclear Energy, Science, and Technology, shall conduct
a research and development program on cost-effective
technologies for increasing the safety of reactor designs
from natural phenomena and the security of reactor de-
signs from deliberate attacks.
SEC. 929. ALTERNATIVES TO INDUSTRIAL RADIOACTIVE
SOURCES.
(a) STUDY.—The Secretary shall conduct a study and
provide a report to Congress not later than August 1,
2004. The study shall—
(1) survey industrial applications of large radio-
active sources, including well-logging sources;
(2) review current domestic and international
Department, Department of Defense, Department of
536
State, and commercial programs to manage and dis-
pose of radioactive sources;
(3) discuss disposal options and practices for
currently deployed or future sources and, if defi-
ciencies are noted in existing disposal options or
practices for either deployed or future sources, rec-
ommend options to remedy deficiencies; and
(4) develop a program plan for research and de-
velopment to develop alternatives to large industrial
sources that reduce safety, environmental, or pro-
liferation risks to either workers using the sources or
the public.
(b) PROGRAM.—The Secretary shall establish a re-
search and development program to implement the pro-
gram plan developed under subsection (a)(4). The pro-
gram shall include miniaturized particle accelerators for
well-logging or other industrial applications and portable
accelerators for production of short-lived radioactive mate-
rials at an industrial site.
SEC. 930. GEOLOGICAL ISOLATION OF SPENT FUEL.
The Secretary shall conduct a study to determine the
feasibility of deep borehole disposal of spent nuclear fuel
and high-level radioactive waste. The study shall empha-
size geological, chemical, and hydrological characterization
of, and design of engineered structures for, deep borehole
537
environments. Not later than 1 year after the date of en-
actment of this Act, the Secretary shall transmit the study
to Congress.
Subtitle E—Fossil Energy
PART I—RESEARCH PROGRAMS
SEC. 931. FOSSIL ENERGY.
(a) IN GENERAL.—The following sums are author-
ized to be appropriated to the Secretary for fossil energy
research, development, demonstration, and commercial ap-
plication activities, including activities authorized under
this part:
(1) For fiscal year 2004, $530,000,000.
(2) For fiscal year 2005, $556,000,000.
(3) For fiscal year 2006, $583,000,000.
(4) For fiscal year 2007, $611,000,000.
(5) For fiscal year 2008, $626,000,000.
(b) ALLOCATIONS.—From amounts authorized under
subsection (a), the following sums are authorized:
(1) For activities under section 932(b)(2),
$28,000,000 for each of the fiscal years 2004
through 2008.
(2) For activities under section 934—
(A) for fiscal year 2004, $12,000,000;
(B) for fiscal year 2005, $15,000,000; and
538
(C) for each of fiscal years 2006 through
2008, $20,000,000.
(3) For activities under section 935—
(A) for fiscal year 2004, $259,000,000;
(B) for fiscal year 2005, $272,000,000;
(C) for fiscal year 2006, $285,000,000;
(D) for fiscal year 2007, $298,000,000;
and
(E) for fiscal year 2008, $308,000,000.
(4) For the Office of Arctic Energy under sec-
tion 3197 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (42 U.S.C.
7144d), $25,000,000 for each of fiscal years 2004
through 2008.
(5) 
For 
activities 
under 
section 
933,
$4,000,000 for fiscal year 2004 and $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 the Office of
Arctic Energy under section 3197 of the Floyd D. Spence
National Defense Authorization Act for Fiscal Year 2001
(42 U.S.C. 7144d), $25,000,000 for each of fiscal years
2009 through 2012.
(d) LIMITS ON USE OF FUNDS.—
539
(1) NO FUNDS FOR CERTAIN PROGRAMS.—None
of the funds authorized under this section may be
used for Fossil Energy Environmental Restoration
or Import/Export Authorization.
(2) INSTITUTIONS OF HIGHER EDUCATION.—Of
the funds authorized under subsection (b)(2), not
less than 20 percent of the funds appropriated for
each fiscal year shall be dedicated to research and
development carried out at institutions of higher
education.
SEC. 932. OIL AND GAS RESEARCH PROGRAMS.
(a) OIL AND GAS RESEARCH.—The Secretary shall
conduct a program of research, development, demonstra-
tion, and commercial application on oil and gas,
including—
(1) exploration and production;
(2) gas hydrates;
(3) reservoir life and extension;
(4) transportation and distribution infrastruc-
ture;
(5) ultraclean fuels;
(6) heavy oil and oil shale;
(7) related environmental research; and
(8) compressed natural gas marine transport.
(b) FUEL CELLS.—
540
(1) IN GENERAL.—The Secretary shall conduct
a program of research, development, demonstration,
and commercial application on fuel cells for low-cost,
high-efficiency, fuel-flexible, modular power systems.
(2) IMPROVED
MANUFACTURING
PRODUCTION
AND PROCESSES.—The demonstrations under para-
graph (1) shall include fuel cell technology for com-
mercial, residential, and transportation applications,
and distributed generation systems, utilizing im-
proved manufacturing production and processes.
(c) NATURAL GAS AND OIL DEPOSITS REPORT.—
Not later than 2 years after the date of enactment of this
Act, and every 2 years thereafter, the Secretary of the In-
terior, in consultation with other appropriate Federal
agencies, shall transmit a report to Congress of the latest
estimates of natural gas and oil reserves, reserves growth,
and undiscovered resources in Federal and State waters
off the coast of Louisiana and Texas.
(d) INTEGRATED CLEAN POWER AND ENERGY RE-
SEARCH.—
(1) NATIONAL CENTER OR CONSORTIUM OF EX-
CELLENCE.—The Secretary shall establish a na-
tional center or consortium of excellence in clean en-
ergy and power generation, utilizing the resources of
the existing Clean Power and Energy Research Con-
541
sortium, to address the Nation’s critical dependence
on energy and the need to reduce emissions.
(2) PROGRAM.—The center or consortium shall
conduct a program of research, development, dem-
onstration, and commercial application on inte-
grating the following focus areas:
(A) Efficiency and reliability of gas tur-
bines for power generation.
(B) Reduction in emissions from power
generation.
(C) Promotion of energy conservation
issues.
(D) Effectively utilizing alternative fuels
and renewable energy.
(E) Development of advanced materials
technology for oil and gas exploration and utili-
zation in harsh environments.
(F) Education on energy and power gen-
eration issues.
SEC. 933. TECHNOLOGY TRANSFER.
The Secretary shall establish a competitive program
to award a contract to a nonprofit entity for the purpose
of transferring technologies developed with public funds.
The entity selected under this section shall have experi-
ence in offshore oil and gas technology research manage-