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‘‘(3) IMPLEMENTATION.— 
‘‘(A) STATE REGULATORY AUTHORITIES.— 
If a State regulatory authority makes a deter-
mination under paragraph (2)(B), the State reg-
ulatory authority shall— 
‘‘(i) require each electric utility over 
which the State has ratemaking authority 
to implement an energy efficiency resource 
program; and 
‘‘(ii) allow such a utility to recover 
any expenditures incurred by the utility in 
implementing the energy efficiency resource 
program. 
‘‘(B) 
NONREGULATED
ELECTRIC
UTILI-
TIES.—If a nonregulated electric utility makes a 
determination under paragraph (2)(B), the util-
ity shall implement an energy efficiency resource 
program. 
‘‘(4) UPDATING
REGULATIONS.—A State regu-
latory authority or nonregulated utility may update 
periodically a determination under paragraph (2)(B) 
to determine whether an energy efficiency resource 
program should be— 
‘‘(A) continued;, 
‘‘(B) modified; or
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‘‘(C) terminated. 
‘‘(5) EXCEPTION.—Paragraph (2) shall not 
apply to a State regulatory authority (or any non-
regulated electric utility operating in the State) that 
demonstrates to the Secretary that an energy effi-
ciency resource program is in effect in the State.’’. 
(b) GAS UTILITIES.—Section 303 of the Public Utili-
ties Regulatory Policy Act of 1978 (15 U.S.C. 3203) is 
amended by adding at the end the following: 
‘‘(e) ENERGY EFFICIENCY RESOURCE PROGRAMS.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) DEMAND
BASELINE.—The term ‘de-
mand baseline’ means the baseline determined by 
the Secretary for an appropriate period pre-
ceding the implementation of an energy effi-
ciency resource program. 
‘‘(B) ENERGY EFFICIENCY RESOURCE PRO-
GRAMS.—The term ‘energy efficiency resource 
program’ means an energy efficiency or other de-
mand reduction program that is designed to re-
duce annual gas consumption or peak demand of 
consumers served by a gas utility by a percent-
age of the demand baseline of the utility that is 
equal to not less than 0.75 percent of the number 
of years during which the program is in effect.
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‘‘(2) PUBLIC HEARINGS; DETERMINATIONS.— 
‘‘(A) As soon as practicable after the date of 
enactment of this subsection, but not later than 
3 years after that date, each State regulatory au-
thority (with respect to each gas utility over 
which the State has ratemaking authority) and 
each nonregulated gas utility shall, after notice, 
conduct a public hearing on the benefits and fea-
sibility of implementing an energy efficiency re-
source program. 
‘‘(B) A State regulatory authority or non-
regulated utility shall implement an energy effi-
ciency resource program if, on the basis of a 
hearing under subparagraph (A), the State regu-
latory authority or nonregulated utility deter-
mines that the program would— 
‘‘(i) benefit end-use customers; 
‘‘(ii) be cost-effective based on total re-
source cost; 
‘‘(iii) serve the public welfare; and 
‘‘(iv) be feasible to implement. 
‘‘(3) IMPLEMENTATION.— 
‘‘(A) STATE REGULATORY AUTHORITIES.— 
If a State regulatory authority makes a deter-
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mination under paragraph (2)(B), the State reg-
ulatory authority shall— 
‘‘(i) require each gas utility over which 
the State has ratemaking authority to im-
plement an energy efficiency resource pro-
gram; and 
‘‘(ii) allow such a utility to recover 
any expenditures incurred by the utility in 
implementing the energy efficiency resource 
program. 
‘‘(B) NONREGULATED GAS UTILITIES.—If a 
nonregulated gas utility makes a determination 
under paragraph (2)(B), the utility shall imple-
ment an energy efficiency resource program. 
‘‘(4) UPDATING
REGULATIONS.—A State regu-
latory authority or nonregulated utility may update 
periodically a determination under paragraph (2)(B) 
to determine whether an energy efficiency resource 
program should be— 
‘‘(A) continued;, 
‘‘(B) modified; or 
‘‘(C) terminated. 
‘‘(5) EXCEPTION.—Paragraph (2) shall not 
apply to a State regulatory authority (or any non-
regulated gas utility operating in the State) that
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demonstrates to the Secretary that an energy effi-
ciency resource program is in effect in the State.’’. 
SEC. 142. FUEL EFFICIENT ENGINE TECHNOLOGY FOR AIR-
CRAFT. 
(a) IN GENERAL.—The Secretary and the Adminis-
trator of the National Aeronautics and Space Administra-
tion shall enter into a cooperative agreement to carry out 
a multi-year engine development program to advance tech-
nologies to enable more fuel efficient, turbine-based propul-
sion and power systems for aeronautical and industrial ap-
plications. 
(b) PERFORMANCE OBJECTIVE.—The fuel efficiency 
performance objective for the program shall be to achieve 
a fuel efficiency improvement of more than 10 percent by 
exploring— 
(1) advanced concepts, alternate propulsion, and 
power configurations, including hybrid fuel cell pow-
ered systems; and 
(2) the use of alternate fuel in conventional or 
nonconventional turbine-based systems. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to the Secretary to carry out 
this section $60,000,000 for each of fiscal years 2006 
through 2010.
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SEC. 143. MOTOR VEHICLE TIRES SUPPORTING MAXIMUM 
FUEL EFFICIENCY. 
(a) STANDARDS
FOR TIRES MANUFACTURED
FOR 
INTERSTATE
COMMERCE.—Section 30123 of title 49, 
United States Code, is amended— 
(1) in subsection (b), by inserting after the first 
sentence the following: ‘‘The grading system shall in-
clude standards for rating the fuel efficiency of tires 
designed for use on passenger cars and light trucks.’’; 
and 
(2) by adding at the end the following: 
‘‘(d) NATIONAL TIRE FUEL EFFICIENCY PROGRAM.— 
(1) The Secretary shall develop and carry out a national 
tire fuel efficiency program for tires designed for use on 
passenger cars and light trucks. 
‘‘(2) The program shall include the following: 
‘‘(A) Policies and procedures for testing and la-
beling tires for fuel economy to enable tire buyers to 
make informed purchasing decisions about the fuel 
economy of tires. 
‘‘(B) Policies and procedures to promote the pur-
chase of energy-efficient replacement tires, including 
purchase incentives, website listings on the Internet, 
printed fuel economy guide booklets, and mandatory 
requirements for tire retailers to provide tire buyers 
with fuel-efficiency information on tires.
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‘‘(C) Minimum fuel economy standards for tires, 
promulgated by the Secretary. 
‘‘(3) The minimum fuel economy standards for tires 
shall— 
‘‘(A) ensure that the average fuel economy of re-
placement tires is equal to or better than the average 
fuel economy of tires sold as original equipment; 
‘‘(B) secure the maximum technically feasible 
and cost-effective fuel savings; 
‘‘(C) not adversely affect tire safety; 
‘‘(D) not adversely affect the average tire life of 
replacement tires; 
‘‘(E) incorporate the results from— 
‘‘(i) laboratory testing; and 
‘‘(ii) to the extent appropriate and avail-
able, on-road fleet testing programs conducted by 
the manufacturers; and 
‘‘(F) not adversely affect efforts to manage scrap 
tires. 
‘‘(4) The policies, procedures, and standards developed 
under paragraph (2) shall apply to all types and models 
of tires that are covered by the uniform tire quality grading 
standards under section 575.104 of title 49, Code of Federal 
Regulations (or any successor regulation).
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‘‘(5) Not less often than every three years, the Secretary 
shall review the minimum fuel economy standards in effect 
for tires under this subsection and revise the standards as 
necessary to ensure compliance with requirements under 
paragraph (3). The Secretary may not, however, reduce the 
average fuel economy standards applicable to replacement 
tires. 
‘‘(6) Nothing in this chapter shall be construed to pre-
empt any provision of State law relating to higher fuel 
economy standards applicable to replacement tires designed 
for use on passenger cars and light trucks. 
‘‘(7) Nothing in this chapter shall apply to— 
‘‘(A) a tire or group of tires with the same SKU, 
plant, and year, for which the volume of tires pro-
duced or imported is less than 15,000 annually; 
‘‘(B) a deep tread, winter-type snow tire, space- 
saver tire, or temporary use spare tire; 
‘‘(C) a tire with a normal rim diameter of 12 
inches or less; 
‘‘(D) a motorcycle tire; or 
‘‘(E) a tire manufactured specifically for use in 
an off-road motorized recreational vehicle. 
‘‘(8) In this subsection, the term ‘fuel economy’, with 
respect to tires, means the extent to which the tires con-
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tribute to the fuel economy of the motor vehicles on which 
the tires are mounted. 
(b) CONFORMING AMENDMENT.—Section 30103(b) of 
title 49, United States Code, is amended in paragraph (1) 
by striking ‘‘When’’ and inserting ‘‘Except as provided in 
section 30123(d) of this title, when’’. 
(c) TIME FOR IMPLEMENTATION.—The Secretary of 
Transportation shall ensure that the national tire fuel effi-
ciency program required under subsection (d) of section 
30123 of title 49, United States Code (as added by sub-
section (a)(2)), is administered so as to apply the policies, 
procedures, and standards developed under paragraph (2) 
of such subsection (d) beginning not later than March 31, 
2008. 
Subtitle D—Measures to Conserve 
Petroleum 
SEC. 151. REDUCTION OF DEPENDENCE ON IMPORTED PE-
TROLEUM. 
(a) REPORT.— 
(1) IN GENERAL.—Not later than February 1, 
2006, and annually thereafter, the President shall 
submit to Congress a report, based on the most recent 
edition of the Annual Energy Outlook published by 
the Energy Information Administration, assessing the 
progress made by the United States toward the goal
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of reducing dependence on imported petroleum sources 
by 2015. 
(2) CONTENTS.—The report under paragraph (1) 
shall— 
(A) include a description of the implemen-
tation, during the previous fiscal year, of provi-
sions under this Act relating to domestic crude 
petroleum production; 
(B) assess the effectiveness of those provi-
sions in meeting the goal described in paragraph 
(1); and 
(C) describe the progress in developing and 
implementing measures under subsection (b). 
(b) MEASURES TO REDUCE IMPORT DEPENDENCE 
THROUGH INCREASED DOMESTIC PETROLEUM CONSERVA-
TION.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the President shall 
develop and implement measures to conserve petro-
leum in end-uses throughout the economy of the 
United States sufficient to reduce total demand for 
petroleum in the United States by 1,000,000 barrels 
per day from the amount projected for calendar year 
2015 in the reference case contained in the report of
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the Energy Information Administration entitled ‘‘An-
nual Energy Outlook 2005’’. 
(2) CONTENTS.—The measures under paragraph 
(1) shall be designed to ensure continued reliable and 
affordable energy for consumers. 
(3) IMPLEMENTATION.—The measures under 
paragraph (1) shall be implemented under existing 
authorities of appropriate Federal executive agencies 
identified by the President. 
Subtitle E—Energy Efficiency in 
Housing 
SEC. 161. PUBLIC HOUSING CAPITAL FUND. 
Section 9 of the United States Housing Act of 1937 
(42 U.S.C. 1437g) is amended— 
(1) in subsection (d)(1)— 
(A) in subparagraph (I), by striking ‘‘; 
and’’ and inserting a semicolon; 
(B) in subparagraph (J), by striking the 
period at the end and inserting a semicolon; and 
(C) by adding at the end the following: 
‘‘(K) improvement of energy and water-use 
efficiency by installing fixtures and fittings that 
conform to the American Society of Mechanical 
Engineers/American National Standards Insti-
tute standards A112.19.2–1998 and A112.18.1–
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2000, or any revision thereto, applicable at the 
time of installation, and by increasing energy ef-
ficiency and water conservation by such other 
means as the Secretary determines are appro-
priate; and 
‘‘(L) integrated utility management and 
capital planning to maximize energy conserva-
tion and efficiency measures.’’; and 
(2) in subsection (e)(2)(C)— 
(A) by striking ‘‘The treatment’’ and insert-
ing the following: 
‘‘(i) IN
GENERAL.—The treatment’’; 
and 
(B) by adding at the end the following: 
‘‘(ii) THIRD PARTY CONTRACTS.—Con-
tracts described in clause (i) may include 
contracts for— 
‘‘(I) equipment conversions to less 
costly utility sources; 
‘‘(II) projects with resident-paid 
utilities; and 
‘‘(III) adjustments to frozen base 
year consumption, including systems 
repaired to meet applicable building 
and safety codes and adjustments for