IB 
Union Calendar No. 42
108TH CONGRESS 
1ST SESSION H. R. 1644
[Report No. 108–65, Part I] 
To enhance energy conservation and research and development, to provide 
for security and diversity in the energy supply for the American people, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 7, 2003
Mr. BARTON of Texas introduced the following bill; which was referred to the 
Committee on Energy and Commerce, and in addition to the Committees 
on Science, Resources, Education and the Workforce, and Transportation 
and Infrastructure, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
APRIL 8, 2003 
Reported from the Committee on Energy and Commerce with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
APRIL 8, 2003
Referred to the Committee on the Judiciary for a period ending not later than 
April 9, 2003, for consideration of such provisions of the bill and amend-
ment as fall within the jurisdiction of that committee pursuant to clause 
1(k), rule X 
APRIL 8, 2003
Referral to the Committees on Science, Resources, Education and the Work-
force, and Transportation and Infrastructure extended for a period end-
ing not later than April 9, 2003
APRIL 9, 2003
Referred to the Committee on Government Reform for a period ending not 
later than April 9, 2003, for consideration of such provisions of the bill 
and amendment as fall within the jurisdiction of that committee pursuant 
to clause 1(h), rule X
APRIL 9, 2003
The Committees on Science, Resources, Education and the Workforce, Trans-
portation and Infrastructure, the Judiciary, and Government Reform dis-
charged; referred to the Committee of the Whole House on the State of 
the Union and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on April 7, 2003] 
A BILL 
To enhance energy conservation and research and develop-
ment, to provide for security and diversity in the energy 
supply for the American people, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘En-
ergy Policy Act of 2003’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title; table of contents. 
TITLE I—ENERGY CONSERVATION 
Subtitle A—Federal Leadership in Energy Conservation 
Sec. 1001. Energy and water saving measures in congressional buildings. 
Sec. 1002. Energy management requirements. 
Sec. 1003. Energy use measurement and accountability. 
Sec. 1004. Federal building performance standards. 
Sec. 1005. Procurement of energy efficient products. 
Sec. 1006. Energy savings performance contracts. 
Sec. 1007. Voluntary commitments to reduce industrial energy intensity. 
Sec. 1008. Federal agency participation in demand reduction programs. 
Sec. 1009. Advanced Building Efficiency Testbed. 
Sec. 1010. Increased use of recovered mineral component in federally funded 
projects involving procurement of cement or concrete. 
Subtitle B—Energy Assistance and State Programs 
Sec. 1021. LIHEAP and weatherization assistance.
Sec. 1022. State energy programs. 
Sec. 1023. Energy efficient appliance rebate programs. 
Sec. 1024. Energy efficient public buildings. 
Sec. 1025. Low income community energy efficiency pilot program. 
Subtitle C—Energy Efficient Products 
Sec. 1041. Energy Star program. 
Sec. 1042. Consumer education on energy efficiency benefits of air conditioning, 
heating, and ventilation maintenance. 
Sec. 1043. Additional definitions. 
Sec. 1044. Additional test procedures. 
Sec. 1045. Energy conservation standards for additional consumer and commer-
cial products. 
Sec. 1046. Energy labeling. 
Sec. 1047. Study of energy efficiency standards. 
TITLE II—OIL AND GAS 
Subtitle A—Alaska Natural Gas Pipeline 
Sec. 2001. Short title. 
Sec. 2002. Findings and purposes. 
Sec. 2003. Definitions. 
Sec. 2004. Issuance of certificate of public convenience and necessity. 
Sec. 2005. Environmental reviews. 
Sec. 2006. Pipeline expansion. 
Sec. 2007. Federal Coordinator. 
Sec. 2008. Judicial review. 
Sec. 2009. State jurisdiction over in-State delivery of natural gas. 
Sec. 2010. Study of alternative means of construction. 
Sec. 2011. Clarification of ANGTA status and authorities. 
Sec. 2012. Sense of Congress. 
Sec. 2013. Participation of small business concerns. 
Sec. 2014. Alaska pipeline construction training program. 
Subtitle B—Strategic Petroleum Reserve 
Sec. 2101. Full capacity of Strategic Petroleum Reserve. 
Sec. 2102. Strategic Petroleum Reserve expansion. 
Sec. 2103. Permanent authority to operate the Strategic Petroleum Reserve and 
other energy programs. 
Subtitle C—Hydraulic Fracturing 
Sec. 2201. Hydraulic fracturing. 
Subtitle D—Unproven Oil and Natural Gas Reserves Recovery Program 
Sec. 2301. Program. 
Sec. 2302. Eligible reservoirs. 
Sec. 2303. Focus areas. 
Sec. 2304. Limitation on location of activities. 
Sec. 2305. Program administration. 
Sec. 2306. Advisory Committee. 
Sec. 2307. Limits on participation. 
Sec. 2308. Payments to Federal Government. 
Sec. 2309. Authorization of appropriations.
Sec. 2310. Public availability of project results and methodologies. 
Sec. 2311. Sunset. 
Sec. 2312. Definitions. 
Subtitle E—Miscellaneous 
Sec. 2401. Appeals relating to pipeline construction projects. 
Sec. 2402. Natural gas market data transparency. 
Sec. 2403. Oil and gas exploration and production defined. 
TITLE III—HYDROELECTRIC RELICENSING 
Subtitle A—Alternative Conditions 
Sec. 3001. Alternative conditions and fishways. 
Subtitle B—Additional Hydropower 
Sec. 3201. Hydroelectric production incentives. 
Sec. 3202. Hydroelectric efficiency improvement. 
Sec. 3203. Small hydroelectric power projects. 
Sec. 3204. Increased hydroelectric generation at existing Federal facilities. 
TITLE IV—NUCLEAR MATTERS 
Subtitle A—Price-Anderson Act Amendments 
Sec. 4001. Short title. 
Sec. 4002. Extension of indemnification authority. 
Sec. 4003. Maximum assessment. 
Sec. 4004. Department of Energy liability limit. 
Sec. 4005. Incidents outside the United States. 
Sec. 4006. Reports. 
Sec. 4007. Inflation adjustment. 
Sec. 4008. Price-Anderson treatment of modular reactors. 
Sec. 4009. Applicability. 
Sec. 4010. Prohibition on assumption by United States Government of liability 
for certain foreign accidents. 
Sec. 4011. Secure transfer of nuclear materials. 
Sec. 4012. Nuclear facility threats. 
Sec. 4013. Unreasonable risk consultation. 
Sec. 4014. Financial accountability. 
Sec. 4015. Civil penalties. 
Subtitle B—Miscellaneous Matters 
Sec. 4021. Licenses. 
Sec. 4022. Nuclear Regulatory Commission meetings. 
Sec. 4023. NRC training program. 
Sec. 4024. Cost recovery from Government agencies. 
Sec. 4025. Elimination of pension offset. 
Sec. 4026. Carrying of firearms by licensee employees. 
Sec. 4027. Unauthorized introduction of dangerous weapons. 
Sec. 4028. Sabotage of nuclear facilities or fuel. 
Sec. 4029. Cooperative research and development and special demonstration 
projects for the uranium mining industry. 
Sec. 4030. Uranium sales. 
Sec. 4031. Medical isotope production.
Sec. 4032. Highly enriched uranium diversion threat report. 
Sec. 4033. Whistleblower protection. 
TITLE V—VEHICLES AND FUELS 
Subtitle A—Energy Policy Act Amendments 
Sec. 5011. Credit for substantial contribution toward noncovered fleets. 
Sec. 5012. Credit for alternative fuel infrastructure. 
Sec. 5013. Alternative fueled vehicle report. 
Sec. 5014. Allocation of incremental costs. 
Subtitle B—FreedomCAR and Hydrogen Fuel Program 
Sec. 5021. Short title. 
Sec. 5022. Findings, purpose, and definitions. 
Sec. 5023. Plan; report. 
Sec. 5024. Public-private partnership. 
Sec. 5025. Deployment. 
Sec. 5026. Assessment and transfer. 
Sec. 5027. Interagency task force. 
Sec. 5028. Advisory Committee. 
Sec. 5029. Authorization of appropriations. 
Sec. 5030. Fuel cell program at National Parks. 
Sec. 5030A. Advanced power system technology incentive program. 
Subtitle C—Clean School Buses 
Sec. 5031. Establishment of pilot program. 
Sec. 5032. Fuel cell bus development and demonstration program. 
Sec. 5033. Authorization of appropriations. 
Subtitle D—Advanced Vehicles 
Sec. 5041. Definitions. 
Sec. 5042. Pilot program. 
Sec. 5043. Reports to Congress. 
Sec. 5044. Authorization of appropriations. 
Subtitle E—Hydrogen Fuel Cell Heavy-Duty Vehicles 
Sec. 5051. Definition. 
Sec. 5052. Findings. 
Sec. 5053. Hydrogen fuel cell buses. 
Sec. 5054. Authorization of appropriations. 
Subtitle F—Miscellaneous 
Sec. 5061. Railroad efficiency. 
Sec. 5062. Mobile emission reductions trading and crediting. 
Sec. 5063. Idle reduction technologies. 
Sec. 5064. Study of aviation fuel conservation and emissions. 
Sec. 5065. Diesel fueled vehicles. 
Sec. 5066. Hybrid vehicles. 
Sec. 5067. Waivers of alternative fueled vehicle fueling requirement. 
TITLE VI—DOE PROGRAMS 
Sec. 6001. Purposes.
Sec. 6002. Definitions. 
Subtitle A—Energy Efficiency 
PART 1—AUTHORIZATION OF APPROPRIATIONS 
Sec. 6011. Energy efficiency. 
PART 2—LIGHTING SYSTEMS 
Sec. 6021. Next Generation Lighting Initiative. 
PART 3—VEHICLES 
Sec. 6031. Definitions. 
Sec. 6032. Establishment of secondary electric vehicle battery use program. 
Subtitle B—Distributed Energy and Electric Energy Systems 
PART 1—AUTHORIZATION OF APPROPRIATIONS 
Sec. 6201. Distributed energy and electric energy systems. 
PART 2—DISTRIBUTED POWER
Sec. 6221. Strategy. 
Sec. 6222. High power density industry program. 
Sec. 6223. Micro-cogeneration energy technology. 
PART 3—TRANSMISSION SYSTEMS 
Sec. 6231. Transmission infrastructure systems. 
Subtitle C—Renewable Energy 
PART 1—AUTHORIZATION OF APPROPRIATIONS 
Sec. 6301. Renewable energy. 
PART 2—BIOENERGY 
Sec. 6321. Bioenergy programs. 
Subtitle D—Nuclear Energy 
PART 1—AUTHORIZATION OF APPROPRIATIONS 
Sec. 6411. Nuclear energy. 
PART 2—NUCLEAR ENERGY RESEARCH PROGRAMS 
Sec. 6421. Nuclear energy research programs. 
PART 3—ADVANCED FUEL RECYCLING 
Sec. 6431. Advanced fuel recycling program. 
PART 4—UNIVERSITY PROGRAMS 
Sec. 6441. University nuclear science and engineering support.
Subtitle E—Fossil Energy 
PART 1—AUTHORIZATION OF APPROPRIATIONS 
Sec. 6501. Fossil energy. 
PART 2—ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND OTHER 
PETROLEUM RESOURCES 
Sec. 6521. Program authority. 
Sec. 6522. Ultra-deepwater program. 
Sec. 6523. Unconventional natural gas and other petroleum resources program. 
Sec. 6524. Additional requirements for awards. 
Sec. 6525. Advisory committees. 
Sec. 6526. Limits on participation. 
Sec. 6527. Fund. 
Sec. 6528. Sunset. 
Sec. 6529. Definitions. 
Subtitle F—Miscellaneous 
Sec. 6601. Waste reduction and use of alternatives. 
Sec. 6602. Coal gasification. 
Sec. 6603. Petroleum coke gasification. 
Sec. 6604. Other biopower and bioenergy. 
Sec. 6605. Technology transfer. 
Sec. 6606. Limitation on legal fee reimbursement. 
Sec. 6607. Complex well technology testing facility. 
Sec. 6608. Total integrated thermal systems. 
Sec. 6609. Oil bypass filtration technology. 
TITLE VII—ELECTRICITY 
Subtitle A—Transmission Capacity 
Sec. 7011. Transmission infrastructure improvement rulemaking. 
Sec. 7012. Siting of interstate electrical transmission facilities. 
Subtitle B—Transmission Operation 
Sec. 7021. Open access transmission by certain utilities. 
Sec. 7022. Regional transmission organizations. 
Sec. 7023. Native load. 
Subtitle C—Reliability 
Sec. 7031. Electric reliability standards. 
Subtitle D—PUHCA Amendments 
Sec. 7041. Short title. 
Sec. 7042. Definitions. 
Sec. 7043. Repeal of the Public Utility Holding Company Act of 1935. 
Sec. 7044. Federal access to books and records. 
Sec. 7045. State access to books and records. 
Sec. 7046. Exemption authority. 
Sec. 7047. Affiliate transactions. 
Sec. 7048. Applicability. 
Sec. 7049. Effect on other regulations.
Sec. 7050. Enforcement. 
Sec. 7051. Savings provisions. 
Sec. 7052. Implementation. 
Sec. 7053. Transfer of resources. 
Sec. 7054. Effective date. 
Sec. 7055. Authorization of appropriations. 
Sec. 7056. Conforming amendments to the Federal Power Act. 
Subtitle E—PURPA Amendments 
Sec. 7061. Real-time pricing and time-of-use metering standards. 
Sec. 7062. Cogeneration and small power production purchase and sale require-
ments. 
Sec. 7063. Smart metering. 
Subtitle F—Renewable Energy 
Sec. 7071. Net metering. 
Sec. 7072. Renewable energy production incentive. 
Sec. 7073. Renewable energy on Federal lands. 
Sec. 7074. Assessment of renewable energy resources. 
Subtitle G—Market Transparency, Round Trip Trading Prohibition, and 
Enforcement 
Sec. 7081. Market transparency rules. 
Sec. 7082. Prohibition on round trip trading. 
Sec. 7083. Conforming changes. 
Sec. 7084. Enforcement. 
Subtitle H—Consumer Protections 
Sec. 7091. Refund effective date. 
Sec. 7092. Jurisdiction over interstate sales. 
Sec. 7093. Consumer privacy. 
Sec. 7094. Unfair trade practices. 
Subtitle I—Merger Review Reform and Accountability 
Sec. 7101. Merger review reform and accountability. 
Subtitle J—Study of Economic Dispatch 
Sec. 7111. Study on the benefits of economic dispatch. 
TITLE VIII—COAL 
Sec. 8001. Authorization of appropriations. 
Sec. 8002. Project criteria. 
Sec. 8003. Report. 
Sec. 8004. Clean coal centers of excellence. 
TITLE IX—MOTOR FUELS 
Subtitle A—General Provisions 
Sec. 9101. Renewable content of motor vehicle fuel. 
Sec. 9102. Fuels safe harbor. 
Sec. 9103. Findings and MTBE transition assistance.
Sec. 9104. Elimination of oxygen content requirement for reformulated gasoline. 
Sec. 9105. Analyses of motor vehicle fuel changes. 
Sec. 9106. Data collection. 
Sec. 9107. Fuel system requirements harmonization study. 
Subtitle B—MTBE Cleanup 
Sec. 9201. Funding for MTBE contamination. 
TITLE X—AUTOMOBILE EFFICIENCY 
Sec. 10001. Authorization of appropriations for implementation and enforcement 
of fuel economy standards. 
Sec. 10002. Study of feasibility and effects of reducing use of fuel for automobiles. 
TITLE XI—PREVENTING THE MISUSE OF NUCLEAR MATERIALS 
AND TECHNOLOGY 
Sec. 11001. Preventing the misuse of nuclear materials and technology. 
TITLE XII—ADDITIONAL PROVISIONS 
Sec. 12001. Transmission technologies.
TITLE I—ENERGY 
CONSERVATION 
Subtitle A—Federal Leadership in 
Energy Conservation 
SEC. 1001. ENERGY AND WATER SAVING MEASURES IN CON-
GRESSIONAL BUILDINGS. 
(a) IN GENERAL.—Part 3 of title V of the National 
Energy Conservation Policy Act is amended by adding at 
the end: 
‘‘SEC. 552. ENERGY AND WATER SAVINGS MEASURES IN 
CONGRESSIONAL BUILDINGS. 
‘‘(a) IN GENERAL.—The Architect of the Capitol— 
‘‘(1) shall develop, update, and implement a cost-
effective energy conservation and management plan 
(referred to in this section as the ‘plan’) for all facili-
ties administered by the Congress (referred to in this 
section as ‘congressional buildings’) to meet the en-
ergy performance requirements for Federal buildings 
established under section 543(a)(1); and 
‘‘(2) shall submit the plan to Congress, not later 
than 180 days after the date of enactment of this sec-
tion. 
‘‘(b) PLAN REQUIREMENTS.—The plan shall include— 
‘‘(1) a description of the life cycle cost analysis 
used to determine the cost-effectiveness of proposed en-
ergy efficiency projects; 
‘‘(2) a schedule of energy surveys to ensure com-
plete surveys of all congressional buildings every 5 
years to determine the cost and payback period of en-
ergy and water conservation measures; 
‘‘(3) a strategy for installation of life cycle cost-
effective energy and water conservation measures; 
‘‘(4) the results of a study of the costs and bene-
fits of installation of submetering in congressional 
buildings; and 
‘‘(5) information packages and ‘how-to’ guides 
for each Member and employing authority of Congress 
that detail simple, cost-effective methods to save en-
ergy and taxpayer dollars in the workplace.
‘‘(c) ANNUAL REPORT.—The Architect shall submit to 
Congress annually a report on congressional energy man-
agement and conservation programs required under this 
section that describes in detail— 
‘‘(1) energy expenditures and savings estimates 
for each facility; 
‘‘(2) energy management and conservation 
projects; and
‘‘(3) future priorities to ensure compliance with 
this section.’’. 
(b) TABLE OF CONTENTS AMENDMENT.—The table of 
contents of the National Energy Conservation Policy Act 
is amended by adding at the end of the items relating to 
part 3 of title V the following new item:
‘‘Sec. 552. Energy and water savings measures in congressional buildings.’’.
(c) REPEAL.—Section 310 of the Legislative Branch 
Appropriations Act, 1999 (40 U.S.C. 166i), is repealed. 
(d) ENERGY INFRASTRUCTURE.—The Architect of the 
Capitol, building on the Master Plan Study completed in 
July 2000, shall commission a study to evaluate the energy 
infrastructure of the Capital Complex to determine how the 
infrastructure could be augmented to become more energy 
efficient, using unconventional and renewable energy re-
sources, in a way that would enable the Complex to have 
reliable utility service in the event of power fluctuations, 
shortages, or outages.
(e) AUTHORIZATION.—There are authorized to be ap-
propriated to the Architect of the Capitol to carry out sub-
section (d), not more than $2,000,000 for fiscal years after 
the enactment of this Act. 
SEC. 1002. ENERGY MANAGEMENT REQUIREMENTS. 
(a) ENERGY REDUCTION GOALS.—
(1) AMENDMENT.—Section 543(a)(1) of the Na-
tional Energy Conservation Policy Act (42 U.S.C. 
8253(a)(1)) is amended by striking ‘‘its Federal 
buildings so that’’ and all that follows through the 
end and inserting ‘‘the Federal buildings of the agen-
cy (including each industrial or laboratory facility) 
so that the energy consumption per gross square foot 
of the Federal buildings of the agency in fiscal years 
2004 through 2013 is reduced, as compared with the 
energy consumption per gross square foot of the Fed-
eral buildings of the agency in fiscal year 2001, by 
the percentage specified in the following table:
‘‘Fiscal Year 
Percentage reduction 
2004 ............................................................................................
2005 ............................................................................................
2006 ............................................................................................
2007 ............................................................................................
2008 ............................................................................................
2009 ............................................................................................
2010 ............................................................................................
2011 ............................................................................................
2012 ............................................................................................
2013 ............................................................................................
20.’’.
(2) REPORTING BASELINE.—The energy reduc-
tion goals and baseline established in paragraph (1)
of section 543(a) of the National Energy Conservation 
Policy Act, as amended by paragraph (1) of this sub-
section, supersede all previous goals and baselines 
under such paragraph, and related reporting require-
ments. 
(b) REVIEW AND REVISION OF ENERGY PERFORMANCE 
REQUIREMENT.—Section 543(a) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(a)) is further 
amended by adding at the end the following: 
‘‘(3) Not later than December 31, 2012, the Secretary 
shall review the results of the implementation of the energy 
performance requirement established under paragraph (1) 
and submit to Congress recommendations concerning en-
ergy performance requirements for fiscal years 2014 
through 2023.’’. 
(c) EXCLUSIONS.—Section 543(c)(1) of the National 
Energy Conservation Policy Act (42 U.S.C. 8253(c)(1)) is 
amended by striking ‘‘An agency may exclude’’ and all that 
follows through the end and inserting ‘‘(A) An agency may 
exclude, from the energy performance requirement for a fis-
cal year established under subsection (a) and the energy 
management requirement established under subsection (b), 
any Federal building or collection of Federal buildings, if 
the head of the agency finds that—
‘‘(i) compliance with those requirements would 
be impracticable; 
‘‘(ii) the agency has completed and submitted all 
federally required energy management reports; 
‘‘(iii) the agency has achieved compliance with 
the energy efficiency requirements of this Act, the En-
ergy Policy Act of 1992, Executive Orders, and other 
Federal law; and 
‘‘(iv) the agency has implemented all practicable, 
life cycle cost-effective projects with respect to the Fed-
eral building or collection of Federal buildings to be 
excluded. 
‘‘(B) A finding of impracticability under subpara-
graph (A)(i) shall be based on— 
‘‘(i) the energy intensiveness of activities carried 
out in the Federal building or collection of Federal 
buildings; or 
‘‘(ii) the fact that the Federal building or collec-
tion of Federal buildings is used in the performance 
of a national security function.’’. 
(d) REVIEW BY SECRETARY.—Section 543(c)(2) of the 
National Energy Conservation Policy Act (42 U.S.C. 
8253(c)(2)) is amended— 
(1) by striking ‘‘impracticability standards’’ and 
inserting ‘‘standards for exclusion’’; and
(2) by striking ‘‘a finding of impracticability’’ 
and inserting ‘‘the exclusion’’. 
(e) CRITERIA.—Section 543(c) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(c)) is further 
amended by adding at the end the following: 
‘‘(3) Not later than 180 days after the date of enact-
ment of this paragraph, the Secretary shall issue guidelines 
that establish criteria for exclusions under paragraph (1).’’. 
(f) RETENTION OF ENERGY SAVINGS.—Section 546 of 
the National Energy Conservation Policy Act (42 U.S.C. 
8256) is amended by adding at the end the following new 
subsection: 
‘‘(e) RETENTION OF ENERGY SAVINGS.—An agency 
may retain any funds appropriated to that agency for en-
ergy expenditures, at buildings subject to the requirements 
of section 543(a) and (b), that are not made because of en-
ergy savings. Except as otherwise provided by law, such 
funds may be used only for energy efficiency or unconven-
tional and renewable energy resources projects.’’. 
(g) REPORTS.—Section 548(b) of the National Energy 
Conservation Policy Act (42 U.S.C. 8258(b)) is amended—
(1) in the subsection heading, by inserting ‘‘THE 
PRESIDENT AND’’ before ‘‘CONGRESS’’; and 
(2) by inserting ‘‘President and’’ before ‘‘Con-
gress’’.
(h) CONFORMING AMENDMENT.—Section 550(d) of the 
National Energy Conservation Policy Act (42 U.S.C. 
8258b(d)) is amended in the second sentence by striking 
‘‘the 20 percent reduction goal established under section 
543(a) of the National Energy Conservation Policy Act (42 
U.S.C. 8253(a)).’’ and inserting ‘‘each of the energy reduc-
tion goals established under section 543(a).’’.
SEC. 1003. ENERGY USE MEASUREMENT AND ACCOUNT-
ABILITY. 
Section 543 of the National Energy Conservation Pol-
icy Act (42 U.S.C. 8253) is further amended by adding at 
the end the following: 
‘‘(e) METERING OF ENERGY USE.—
‘‘(1) DEADLINE.—By October 1, 2010, in accord-
ance with guidelines established by the Secretary 
under paragraph (2), all Federal buildings shall, for 
the purposes of efficient use of energy and reduction 
in the cost of electricity used in such buildings, be me-
tered or submetered. Each agency shall use, to the 
maximum extent practicable, advanced meters or ad-
vanced metering devices that provide data at least 
daily and that measure at least hourly consumption 
of electricity in the Federal buildings of the agency. 
Such data shall be incorporated into existing Federal
ment, and cost and energy savings due 
to utility contract aggregation; and 
‘‘(III) 
the 
measurement 
and 
verification protocols of the Depart-
ment of Energy; 
‘‘(ii) include recommendations con-
cerning the amount of funds and the num-
ber of trained personnel necessary to gather 
and use the metering information to track 
and reduce energy use; 
‘‘(iii) establish priorities for types and 
locations of buildings to be metered and 
submetered based on cost-effectiveness and a 
schedule of one or more dates, not later than 
1 year after the date of issuance of the 
guidelines, on which the requirements speci-
fied in paragraph (1) shall take effect; and 
‘‘(iv) establish exclusions from the re-
quirements specified in paragraph (1) based 
on the de minimis quantity of energy use of 
a Federal building, industrial process, or 
structure. 
‘‘(3) PLAN.—No later than 6 months after the 
date guidelines are established under paragraph (2), 
in a report submitted by the agency under section
548(a), each agency shall submit to the Secretary a 
plan describing how the agency will implement the 
requirements of paragraph (1), including (A) how the 
agency will designate personnel primarily responsible 
for achieving the requirements and (B) demonstration 
by the agency, complete with documentation, of any 
finding that advanced meters or advanced metering 
devices, as defined in paragraph (1), are not prac-
ticable.’’.
SEC. 1004. FEDERAL BUILDING PERFORMANCE STANDARDS. 
Section 305(a) of the Energy Conservation and Pro-
duction Act (42 U.S.C. 6834(a)) is amended— 
(1) in paragraph (2)(A), by striking ‘‘CABO 
Model Energy Code, 1992’’ and inserting ‘‘the 2000 
International Energy Conservation Code’’; and 
(2) by adding at the end the following: 
‘‘(3) REVISED
FEDERAL
BUILDING
ENERGY
EFFI-
CIENCY PERFORMANCE STANDARDS.—
‘‘(A) IN GENERAL.—Not later than 1 year after 
the date of enactment of this paragraph, the Secretary 
of Energy shall establish, by rule, revised Federal 
building energy efficiency performance standards that 
require that, if cost-effective, for new Federal build-
ings—
‘‘(i) such buildings be designed so as to 
achieve energy consumption levels at least 30 
percent below those of the most recent ASHRAE 
Standard 90.1 or the most recent version of the 
International Energy Conservation Code, as ap-
propriate; and 
‘‘(ii) sustainable design principles are ap-
plied to the siting, design, and construction of 
all new and replacement buildings. 
‘‘(B) ADDITIONAL REVISIONS.—Not later than 1 
year after the date of approval of amendments to 
ASHRAE Standard 90.1 or the 2000 International 
Energy Conservation Code, the Secretary of Energy 
shall determine, based on the cost-effectiveness of the 
requirements under the amendments, whether the re-
vised standards established under this paragraph 
should be updated to reflect the amendments. 
‘‘(C) STATEMENT
ON
COMPLIANCE
OF
NEW 
BUILDINGS.—In the budget request of the Federal 
agency for each fiscal year and each report submitted 
by the Federal agency under section 548(a) of the Na-
tional Energy Conservation Policy Act (42 U.S.C. 
8258(a)), the head of each Federal agency shall in-
clude—
‘‘(i) a list of all new Federal buildings 
owned, operated, or controlled by the Federal 
agency; and 
‘‘(ii) a statement concerning whether the 
Federal buildings meet or exceed the revised 
standards established under this paragraph.’’.
SEC. 1005. PROCUREMENT OF ENERGY EFFICIENT PROD-
UCTS. 
(a) REQUIREMENTS.—Part 3 of title V of the National 
Energy Conservation Policy Act is amended by adding at 
the end the following: 
‘‘SEC. 553. FEDERAL PROCUREMENT OF ENERGY EFFICIENT 
PRODUCTS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ENERGY STAR PRODUCT.—The term ‘En-
ergy Star product’ means a product that is rated for 
energy efficiency under an Energy Star program. 
‘‘(2) ENERGY STAR PROGRAM.—The term ‘En-
ergy Star program’ means the program established by 
section 324A of the Energy Policy and Conservation 
Act. 
‘‘(3) EXECUTIVE AGENCY.—The term ‘executive 
agency’ has the meaning given the term in section 4 
of the Office of Federal Procurement Policy Act (41 
U.S.C. 403).
‘‘(4) FEMP DESIGNATED PRODUCT.—The term 
‘FEMP designated product’ means a product that is 
designated under the Federal Energy Management 
Program of the Department of Energy as being 
among the highest 25 percent of equivalent products 
for energy efficiency. 
‘‘(b) PROCUREMENT OF ENERGY EFFICIENT PROD-
UCTS.— 
‘‘(1) REQUIREMENT.—To meet the requirements 
of an executive agency for an energy consuming prod-
uct, the head of the executive agency shall, except as 
provided in paragraph (2), procure—
‘‘(A) an Energy Star product; or 
‘‘(B) a FEMP designated product. 
‘‘(2) EXCEPTIONS.—The head of an executive 
agency is not required to procure an Energy Star 
product or FEMP designated product under para-
graph (1) if the head of the executive agency finds in 
writing that— 
‘‘(A) an Energy Star product or FEMP des-
ignated product is not cost-effective over the life 
of the product taking energy cost savings into ac-
count; or 
‘‘(B) no Energy Star product or FEMP des-
ignated product is reasonably available that
meets the functional requirements of the executive 
agency. 
‘‘(3) PROCUREMENT PLANNING.—The head of an 
executive agency shall incorporate into the specifica-
tions for all procurements involving energy con-
suming products and systems, including guide speci-
fications, project specifications, and construction, ren-
ovation, and services contracts that include provision 
of energy consuming products and systems, and into 
the factors for the evaluation of offers received for the 
procurement, criteria for energy efficiency that are 
consistent with the criteria used for rating Energy 
Star products and for rating FEMP designated prod-
ucts. 
‘‘(c) LISTING OF ENERGY EFFICIENT PRODUCTS IN 
FEDERAL CATALOGS.—Energy Star products and FEMP 
designated products shall be clearly identified and promi-
nently displayed in any inventory or listing of products 
by the General Services Administration or the Defense Lo-
gistics Agency. The General Services Administration or the 
Defense Logistics Agency shall supply only Energy Star 
products or FEMP designated products for all product cat-
egories covered by the Energy Star program or the Federal 
Energy Management Program, except in cases where the 
agency ordering a product specifies in writing that no En-
ergy Star product or FEMP designated product is available 
to meet the buyer’s functional requirements, or that no En-
ergy Star product or FEMP designated product is cost-effec-
tive for the intended application over the life of the product, 
taking energy cost savings into account. 
‘‘(d) DESIGNATION OF ELECTRIC MOTORS.—In the 
case of electric motors of 1 to 500 horsepower, agencies shall 
select only premium efficient motors that meet a standard 
designated by the Secretary. The Secretary shall designate 
such a standard within 120 days after the date of the enact-
ment of this section, after considering the recommendations 
of associated electric motor manufacturers and energy effi-
ciency groups. 
‘‘(e) REGULATIONS.—Not later than 180 days after the 
date of the enactment of this section, the Secretary shall 
issue guidelines to carry out this section.’’. 
(b) CONFORMING AMENDMENT.—The table of contents 
in section 101(b) of the National Energy Conservation Pol-
icy Act (42 U.S.C. 8201 note), as amended by section 
1001(b) of this Act, is further amended by inserting after 
the item relating to section 552 the following:
‘‘Sec. 553. Federal procurement of energy efficient products.’’.
SEC. 1006. ENERGY SAVINGS PERFORMANCE CONTRACTS. 
(a) PERMANENT EXTENSION.—Section 801(c) of the 
National Energy Conservation Policy Act (42 U.S.C. 
8287(c)) is repealed.
(b) REPLACEMENT FACILITIES.—Section 801(a) of the 
National Energy Conservation Policy Act (42 U.S.C. 
8287(a)) is amended by adding at the end the following 
new paragraph: 
‘‘(3)(A) In the case of an energy savings contract 
or energy savings performance contract providing for 
energy savings through the construction and oper-
ation of one or more buildings or facilities to replace 
one or more existing buildings or facilities, benefits 
ancillary to the purpose of such contract under para-
graph (1) may include savings resulting from reduced 
costs of operation and maintenance at such replace-
ment buildings or facilities when compared with costs 
of operation and maintenance at the buildings or fa-
cilities being replaced, established through a method-
ology set forth in the contract. 
‘‘(B) Notwithstanding paragraph (2)(B), aggre-
gate annual payments by an agency under an energy 
savings contract or energy savings performance con-
tract referred to in subparagraph (A) may take into 
account (through the procedures developed pursuant 
to this section) savings resulting from reduced costs of 
operation and maintenance as described in that sub-
paragraph.’’.
(c) ENERGY SAVINGS.—Section 804(2) of the National 
Energy Conservation Policy Act (42 U.S.C. 8287c(2)) is 
amended to read as follows: 
‘‘(2) The term ‘energy savings’ means—
‘‘(A) a reduction in the cost of energy or 
water, from a base cost established through a 
methodology set forth in the contract, used in an 
existing federally owned building or buildings or 
other federally owned facilities as a result of—
‘‘(i) the lease or purchase of operating 
equipment, improvements, altered operation 
and maintenance, or technical services; 
‘‘(ii) the increased efficient use of exist-
ing energy sources by cogeneration or heat 
recovery, excluding any cogeneration process 
for other than a federally owned building or 
buildings or other federally owned facilities; 
or 
‘‘(iii) the increased efficient use of ex-
isting water sources; or 
‘‘(B) in the case of a replacement building 
or facility described in section 801(a)(3), a re-
duction in the cost of energy, from a base cost es-
tablished through a methodology set forth in the 
contract, that would otherwise be utilized in one
or more existing federally owned buildings or 
other federally owned facilities by reason of the 
construction and operation of the replacement 
building or facility.’’. 
(d) ENERGY SAVINGS CONTRACT.—Section 804(3) of 
the National Energy Conservation Policy Act (42 U.S.C. 
8287c(3)) is amended to read as follows: 
‘‘(3) The terms ‘energy savings contract’ and ‘en-
ergy savings performance contract’ mean a contract 
which provides for—
‘‘(A) the performance of services for the de-
sign, acquisition, installation, testing, operation, 
and, where appropriate, maintenance and re-
pair, of an identified energy or water conserva-
tion measure or series of measures at one or 
more locations; or 
‘‘(B) energy savings through the construc-
tion and operation of one or more buildings or 
facilities to replace one or more existing build-
ings or facilities. 
Such contracts shall, with respect to an agency facil-
ity that is a public building as such term is defined 
in section 13(1) of the Public Buildings Act of 1959 
(40 U.S.C. 3301), be in compliance with the pro-
spectus requirements and procedures of section 7 of 
the Public Buildings Act of 1959 (40 U.S.C. 3307).’’. 
(e) ENERGY OR WATER CONSERVATION MEASURE.—
Section 804(4) of the National Energy Conservation Policy 
Act (42 U.S.C. 8287c(4)) is amended to read as follows: 
‘‘(4) The term ‘energy or water conservation 
measure’ means—
‘‘(A) an energy conservation measure, as de-
fined in section 551(4) (42 U.S.C. 8259(4)); or 
‘‘(B) a water conservation measure that im-
proves water efficiency, is life cycle cost-effective, 
and involves water conservation, water recycling 
or reuse, more efficient treatment of wastewater 
or stormwater, improvements in operation or 
maintenance efficiencies, retrofit activities, or 
other related activities, not at a Federal hydro-
electric facility.’’. 
(f) REVIEW.—Within 180 days after the date of the 
enactment of this section, the Secretary of Energy shall 
complete a review of the Energy Savings Performance Con-
tract program to identify statutory, regulatory, and admin-
istrative obstacles that prevent Federal agencies from fully 
utilizing the program. In addition, this review shall iden-
tify all areas for increasing program flexibility and effec-
tiveness, including audit and measurement verification re-
quirements, accounting for energy use in determining sav-
ings, contracting requirements, and energy efficiency serv-
ices covered. The Secretary shall report these findings to the 
Committee on Energy and Commerce of the House of Rep-
resentatives and the Committee on Energy and Natural Re-
sources of the Senate, and shall implement identified ad-
ministrative and regulatory changes to increase program 
flexibility and effectiveness to the extent that such changes 
are consistent with statutory authority.
SEC. 1007. VOLUNTARY COMMITMENTS TO REDUCE INDUS-
TRIAL ENERGY INTENSITY. 
(a) VOLUNTARY AGREEMENTS.—The Secretary of En-
ergy shall enter into voluntary agreements with one or more 
persons in industrial sectors that consume significant 
amounts of primary energy per unit of physical output to 
reduce the energy intensity of their production activities. 
(b) GOAL.—Voluntary agreements under this section 
shall have a goal of reducing energy intensity by not less 
than 2.5 percent each year from 2004 through 2014. 
(c) RECOGNITION.—The Secretary of Energy, in co-
operation with the Administrator of the Environmental 
Protection Agency and other appropriate Federal agencies, 
shall develop mechanisms to recognize and publicize the 
achievements of participants in voluntary agreements 
under this section.
(d) DEFINITION.—In this section, the term ‘‘energy in-
tensity’’ means the primary energy consumed per unit of 
physical output in an industrial process. 
(e) TECHNICAL ASSISTANCE.—An entity that enters 
into an agreement under this section and continues to make 
a good faith effort to achieve the energy efficiency goals 
specified in the agreement shall be eligible to receive from 
the Secretary a grant or technical assistance as appropriate 
to assist in the achievement of those goals. 
(f) REPORT.—Not later than June 30, 2010 and June 
30, 2014, the Secretary shall submit to Congress a report 
that evaluates the success of the voluntary agreements, with 
independent verification of a sample of the energy savings 
estimates provided by participating firms. 
SEC. 1008. FEDERAL AGENCY PARTICIPATION IN DEMAND 
REDUCTION PROGRAMS. 
Section 546(c) of the National Energy Conservation 
Policy Act (42 U.S.C. 8256(c)) is amended by adding at 
the end of the following new paragraph: 
‘‘(6) Federal agencies are encouraged to participate in 
State or regional demand side reduction programs. The 
availability of such programs, including measures employ-
ing onsite generation, and the savings resulting from such 
participation, should be included in the evaluation of en-
ergy options for Federal facilities.’’.
SEC. 1009. ADVANCED BUILDING EFFICIENCY TESTBED. 
(a) ESTABLISHMENT.—The Secretary of Energy, in 
consultation with the Administrator of the General Services 
Administration, shall establish an Advanced Building Effi-
ciency Testbed program for the development, testing, and
demonstration of advanced engineering systems, compo-
nents, and materials to enable innovations in building tech-
nologies. The program shall evaluate efficiency concepts for 
government and industry buildings, and demonstrate the 
ability of next generation buildings to support individual 
and organizational productivity and health as well as flexi-
bility and technological change to improve environmental 
sustainability. Such program shall complement and not du-
plicate existing national programs. 
(b) PARTICIPANTS.—The program established under 
subsection (a) shall be led by a university with the ability 
to combine the expertise from numerous academic fields in-
cluding, at a minimum, intelligent workplaces and ad-
vanced building systems and engineering, electrical and 
computer engineering, computer science, architecture, 
urban design, and environmental and mechanical engineer-
ing. Such university shall partner with other universities 
and entities who have established programs and the capa-
bility of advancing innovative building efficiency tech-
nologies.
(c) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to the Secretary of Energy 
to carry out this section $6,000,000 for each of the fiscal 
years 2004 through 2006, to remain available until ex-
pended. For any fiscal year in which funds are expended 
under this section, the Secretary shall provide one-third of 
the total amount to the lead university described in sub-
section (b), and provide the remaining two-thirds to the 
other participants referred to in subsection (b) on an equal 
basis.
SEC. 1010. INCREASED USE OF RECOVERED MINERAL COM-
PONENT IN FEDERALLY FUNDED PROJECTS 
INVOLVING PROCUREMENT OF CEMENT OR 
CONCRETE. 
(a) AMENDMENT.—Subtitle F of the Solid Waste Dis-
posal Act (42 U.S.C. 6961 et seq.) is amended by adding 
at the end the following new section: 
‘‘INCREASED USE OF RECOVERED MINERAL COMPONENT IN 
FEDERALLY FUNDED PROJECTS INVOLVING PROCURE-
MENT OF CEMENT OR CONCRETE 
‘‘SEC. 6005. (a) DEFINITIONS.—In this section: 
‘‘(1) AGENCY
HEAD.—The term ‘agency head’ 
means—
‘‘(A) the Secretary of Transportation; and 
‘‘(B) the head of each other Federal agency 
that on a regular basis procures, or provides
Federal funds to pay or assist in paying the cost 
of procuring, material for cement or concrete 
projects. 
‘‘(2) CEMENT
OR
CONCRETE
PROJECT.—The 
term ‘cement or concrete project’ means a project for 
the construction or maintenance of a highway or 
other transportation facility or a Federal, State, or 
local government building or other public facility 
that—
‘‘(A) involves the procurement of cement or 
concrete; and 
‘‘(B) is carried out in whole or in part 
using Federal funds. 
‘‘(3) RECOVERED
MINERAL
COMPONENT.—The 
term ‘recovered mineral component’ means—
‘‘(A) ground granulated blast furnace slag; 
‘‘(B) coal combustion fly ash; and 
‘‘(C) any other waste material or byproduct 
recovered or diverted from solid waste that the 
Administrator, in consultation with an agency 
head, determines should be treated as recovered 
mineral component under this section for use in 
cement or concrete projects paid for, in whole or 
in part, by the agency head. 
‘‘(b) IMPLEMENTATION OF REQUIREMENTS.—
‘‘(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this section, the Adminis-
trator and each agency head shall take such actions 
as are necessary to implement fully all procurement 
requirements and incentives in effect as of the date of 
enactment of this section (including guidelines under 
section 6002) that provide for the use of cement and 
concrete incorporating recovered mineral component 
in cement or concrete projects. 
‘‘(2) PRIORITY.—In carrying out paragraph (1) 
an agency head shall give priority to achieving great-
er use of recovered mineral component in cement or 
concrete projects for which recovered mineral compo-
nents historically have not been used or have been 
used only minimally. 
‘‘(3) CONFORMANCE.—The Administrator and 
each agency head shall carry out this subsection in 
accordance with section 6002. 
‘‘(c) FULL IMPLEMENTATION STUDY.—
‘‘(1) IN GENERAL.—The Administrator, in co-
operation with the Secretary of Transportation and 
the Secretary of Energy, shall conduct a study to de-
termine the extent to which current procurement re-
quirements, when fully implemented in accordance 
with subsection (b), may realize energy savings and
environmental benefits attainable with substitution of 
recovered mineral component in cement used in ce-
ment or concrete projects. 
‘‘(2) MATTERS TO BE ADDRESSED.—The study 
shall—
‘‘(A) quantify the extent to which recovered 
mineral components are being substituted for 
Portland cement, particularly as a result of cur-
rent procurement requirements, and the energy 
savings and environmental benefits associated 
with that substitution; 
‘‘(B) identify all barriers in procurement 
requirements to fuller realization of energy sav-
ings and environmental benefits, including bar-
riers resulting from exceptions from current law; 
and 
‘‘(C)(i) identify potential mechanisms to 
achieve greater substitution of recovered mineral 
component in types of cement or concrete projects 
for which recovered mineral components histori-
cally have not been used or have been used only 
minimally; 
‘‘(ii) evaluate the feasibility of establishing 
guidelines or standards for optimized substi-
tution rates of recovered mineral component in 
those cement or concrete projects; and 
‘‘(iii) identify any potential environmental 
or economic effects that may result from greater 
substitution of recovered mineral component in 
those cement or concrete projects.
‘‘(3) REPORT.—Not later than 30 months after 
the date of enactment of this section, the Adminis-
trator shall submit to the Committee on Appropria-
tions and Committee on Environment and Public 
Works of the Senate and the Committee on Appro-
priations, Committee on Energy and Commerce, and 
Committee on Transportation and Infrastructure of 
the House of Representatives a report on the study. 
‘‘(d) ADDITIONAL PROCUREMENT REQUIREMENTS.—
Unless the study conducted under subsection (c) identifies 
any effects or other problems described in subsection 
(c)(2)(C)(iii) that warrant further review or delay, the Ad-
ministrator and each agency head shall, within 1 year of 
the release of the report in accordance with subsection 
(c)(3), take additional actions authorized under this Act to 
establish procurement requirements and incentives that pro-
vide for the use of cement and concrete with increased sub-
stitution of recovered mineral component in the construc-
tion and maintenance of cement or concrete projects, so as 
to—
‘‘(1) realize more fully the energy savings and 
environmental benefits associated with increased sub-
stitution; and 
‘‘(2) eliminate barriers identified under sub-
section (c). 
‘‘(e) EFFECT OF SECTION.—Nothing in this section af-
fects the requirements of section 6002 (including the guide-
lines and specifications for implementing those require-
ments).’’. 
(b) TABLE OF CONTENTS AMENDMENT.—The table of 
contents of the Solid Waste Disposal Act is amended by 
adding after the item relating to section 6004 the following 
new item:
‘‘Sec. 6005. Increased use of recovered mineral component in federally funded 
projects involving procurement of cement or concrete.’’.
Subtitle B—Energy Assistance and 
State Programs 
SEC. 1021. LIHEAP AND WEATHERIZATION ASSISTANCE. 
(a) LOW-INCOME HOME ENERGY ASSISTANCE PRO-
GRAM.—Section 2602(b) of the Low-Income Home Energy 
Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended by 
striking ‘‘each of fiscal years 2002 through 2004’’ and in-
serting ‘‘each of fiscal years 2002 and 2003, and 
$3,400,000,000 for each of fiscal years 2004 through 2006’’.
(b) WEATHERIZATION.—Section 422 of the Energy 
Conservation and Production Act (42 U.S.C. 6872) is 
amended by striking ‘‘for fiscal years 1999 through 2003 
such 
sums 
as 
may 
be 
necessary’’ 
and 
inserting 
‘‘$325,000,000 for fiscal year 2004, $400,000,000 for fiscal 
year 2005, and $500,000,000 for fiscal year 2006’’. 
(c) REPORT TO CONGRESS.—Not later than 1 year 
after the date of enactment of this Act, the Secretary of 
Health and Human Services shall transmit to the Congress 
a report on how the Low-Income Home Energy Assistance 
Program could be used more effectively to prevent loss of 
life from extreme temperatures. In preparing such report, 
the Secretary shall consult with appropriate officials in all 
50 States and the District of Columbia. 
SEC. 1022. STATE ENERGY PROGRAMS. 
(a) STATE ENERGY CONSERVATION PLANS.—Section 
362 of the Energy Policy and Conservation Act (42 U.S.C. 
6322) is amended by inserting at the end the following new 
subsection: 
‘‘(g) The Secretary shall, at least once every 3 years, 
invite the Governor of each State to review and, if nec-
essary, revise the energy conservation plan of such State 
submitted under subsection (b) or (e). Such reviews should 
consider the energy conservation plans of other States with-
in the region, and identify opportunities and actions car-
ried out in pursuit of common energy conservation goals.’’. 
(b) STATE ENERGY EFFICIENCY GOALS.—Section 364 
of the Energy Policy and Conservation Act (42 U.S.C. 
6324) is amended to read as follows: 
‘‘STATE ENERGY EFFICIENCY GOALS 
‘‘SEC. 364. Each State energy conservation plan with 
respect to which assistance is made available under this 
part on or after the date of enactment of the Energy Policy 
Act of 2003 shall contain a goal, consisting of an improve-
ment of 25 percent or more in the efficiency of use of energy 
in the State concerned in calendar year 2010 as compared 
to calendar year 1990, and may contain interim goals.’’. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—Section 
365(f) of the Energy Policy and Conservation Act (42 
U.S.C. 6325(f)) is amended by striking ‘‘for fiscal years 
1999 through 2003 such sums as may be necessary’’ and 
inserting ‘‘$100,000,000 for each of the fiscal years 2004 
and 2005 and $125,000,000 for fiscal year 2006’’.
SEC. 1023. ENERGY EFFICIENT APPLIANCE REBATE PRO-
GRAMS. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE STATE.—The term ‘‘eligible State’’ 
means a State that meets the requirements of sub-
section (b).
(2) ENERGY STAR PROGRAM.—The term ‘‘Energy 
Star program’’ means the program established by sec-
tion 324A of the Energy Policy and Conservation Act. 
(3) RESIDENTIAL ENERGY STAR PRODUCT.—The 
term ‘‘residential Energy Star product’’ means a 
product for a residence that is rated for energy effi-
ciency under the Energy Star program. 
(4) STATE ENERGY OFFICE.—The term ‘‘State 
energy office’’ means the State agency responsible for 
developing State energy conservation plans under sec-
tion 362 of the Energy Policy and Conservation Act 
(42 U.S.C. 6322). 
(5) STATE
PROGRAM.—The term ‘‘State pro-
gram’’ means a State energy efficient appliance re-
bate program described in subsection (b)(1). 
(b) ELIGIBLE STATES.—A State shall be eligible to re-
ceive an allocation under subsection (c) if the State—
(1) establishes (or has established) a State energy 
efficient appliance rebate program to provide rebates 
to residential consumers for the purchase of residen-
tial Energy Star products to replace used appliances 
of the same type; 
(2) submits an application for the allocation at 
such time, in such form, and containing such infor-
mation as the Secretary may require; and
(3) provides assurances satisfactory to the Sec-
retary that the State will use the allocation to supple-
ment, but not supplant, funds made available to 
carry out the State program. 
(c) AMOUNT OF ALLOCATIONS.—
(1) IN GENERAL.—Subject to paragraph (2), for 
each fiscal year, the Secretary shall allocate to the
State energy office of each eligible State to carry out 
subsection (d) an amount equal to the product ob-
tained by multiplying the amount made available 
under subsection (f) for the fiscal year by the ratio 
that the population of the State in the most recent 
calendar year for which data are available bears to 
the total population of all eligible States in that cal-
endar year. 
(2) MINIMUM
ALLOCATIONS.—For each fiscal 
year, the amounts allocated under this subsection 
shall be adjusted proportionately so that no eligible 
State is allocated a sum that is less than an amount 
determined by the Secretary. 
(d) USE OF ALLOCATED FUNDS.—The allocation to a 
State energy office under subsection (c) may be used to pay 
up to 50 percent of the cost of establishing and carrying 
out a State program.
(e) ISSUANCE OF REBATES.—Rebates may be provided 
to residential consumers that meet the requirements of the 
State program. The amount of a rebate shall be determined 
by the State energy office, taking into consideration—
(1) the amount of the allocation to the State en-
ergy office under subsection (c); 
(2) the amount of any Federal or State tax in-
centive available for the purchase of the residential 
Energy Star product; and 
(3) the difference between the cost of the residen-
tial Energy Star product and the cost of an appliance 
that is not a residential Energy Star product, but is 
of the same type as, and is the nearest capacity, per-
formance, and other relevant characteristics (as deter-
mined by the State energy office) to the residential 
Energy Star product. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to carry out this section 
$50,000,000 for each of the fiscal years 2004 through 2008.
SEC. 1024. ENERGY EFFICIENT PUBLIC BUILDINGS. 
(a) GRANTS.—The Secretary of Energy may make 
grants to the State agency responsible for developing State 
energy conservation plans under section 362 of the Energy 
Policy and Conservation Act (42 U.S.C. 6322), or, if no 
such agency exists, a State agency designated by the Gov-
ernor of the State, to assist units of local government in 
the State in improving the energy efficiency of public build-
ings and facilities—
(1) through construction of new energy efficient 
public buildings that use at least 30 percent less en-
ergy than a comparable public building constructed 
in compliance with standards prescribed in chapter 8 
of the 2000 International Energy Conservation Code, 
or a similar State code intended to achieve substan-
tially equivalent efficiency levels; or 
(2) through renovation of existing public build-
ings to achieve reductions in energy use of at least 30 
percent as compared to the baseline energy use in 
such buildings prior to renovation, assuming a 3-
year, weather-normalized average for calculating such 
baseline. 
(b) ADMINISTRATION.—State energy offices receiving 
grants under this section shall—
(1) maintain such records and evidence of com-
pliance as the Secretary may require; and 
(2) develop and distribute information and ma-
terials and conduct programs to provide technical 
services and assistance to encourage planning, financ-
ing, and design of energy efficient public buildings by 
units of local government.
(c) AUTHORIZATION OF APPROPRIATIONS.—For the 
purposes of this section, there are authorized to be appro-
priated to the Secretary of Energy such sums as may be 
necessary for each of fiscal years 2004 through 2013. Not 
more than 30 percent of appropriated funds shall be used 
for administration.
SEC. 1025. LOW INCOME COMMUNITY ENERGY EFFICIENCY 
PILOT PROGRAM. 
(a) GRANTS.—The Secretary of Energy is authorized 
to make grants to units of local government, private, non-
profit community development organizations, and Indian 
tribe economic development entities to improve energy effi-
ciency, identify and develop alternative renewable and dis-
tributed energy supplies, and increase energy conservation 
in low income rural and urban communities. 
(b) PURPOSE OF GRANTS.—The Secretary may make 
grants on a competitive basis for—
(1) investments that develop alternative renew-
able and distributed energy supplies; 
(2) energy efficiency projects and energy con-
servation programs; 
(3) studies and other activities that improve en-
ergy efficiency in low income rural and urban com-
munities;
(4) planning and development assistance for in-
creasing the energy efficiency of buildings and facili-
ties; and 
(5) technical and financial assistance to local 
government and private entities on developing new 
renewable and distributed sources of power or com-
bined heat and power generation.
(c) DEFINITION.—For purposes of this section, the 
term ‘‘Indian tribe’’ means any Indian tribe, band, nation, 
or other organized group or community, including any 
Alaskan Native village or regional or village corporation 
as defined in or established pursuant to the Alaska Native 
Claims Settlement Act (43 U.S.C. 1601 et seq.), which is 
recognized as eligible for the special programs and services 
provided by the United States to Indians because of their 
status as Indians. 
(d) AUTHORIZATION OF APPROPRIATIONS.—For the 
purposes of this section there are authorized to be appro-
priated to the Secretary of Energy $20,000,000 for fiscal 
year 2004 and each fiscal year thereafter through fiscal year 
2006.
Subtitle C—Energy Efficient 
Products 
SEC. 1041. ENERGY STAR PROGRAM. 
(a) AMENDMENT.—The Energy Policy and Conserva-
tion Act (42 U.S.C. 6201 and following) is amended by in-
serting the following after section 324: 
‘‘SEC. 324A. ENERGY STAR PROGRAM. 
‘‘There is established at the Department of Energy and 
the Environmental Protection Agency a program to identify 
and promote energy-efficient products and buildings in 
order to reduce energy consumption, improve energy secu-
rity, and reduce pollution through labeling of and other 
forms of communication about products and buildings that 
meet the highest energy efficiency standards. Responsibil-
ities under the program shall be divided between the De-
partment of Energy and the Environmental Protection 
Agency consistent with the terms of agreements between the 
two agencies. The Administrator and the Secretary shall—
‘‘(1) promote Energy Star compliant technologies 
as the preferred technologies in the marketplace for 
achieving energy efficiency and to reduce pollution; 
‘‘(2) work to enhance public awareness of the 
Energy Star label, including special outreach to small 
businesses;
‘‘(3) preserve the integrity of the Energy Star 
label; and 
‘‘(4) solicit the comments of interested parties in 
establishing a new Energy Star product category or 
in revising a product category, and upon adoption of 
a new or revised product category provide an expla-
nation of the decision that responds to significant 
public comments.’’. 
(b) TABLE OF CONTENTS AMENDMENT.—The table of 
contents of the Energy Policy and Conservation Act is 
amended by inserting after the item relating to section 324 
the following new item:
‘‘Sec. 324A. Energy Star program.’’.
SEC. 1042. CONSUMER EDUCATION ON ENERGY EFFICIENCY 
BENEFITS OF AIR CONDITIONING, HEATING, 
AND VENTILATION MAINTENANCE. 
Section 337 of the Energy Policy and Conservation Act 
(42 U.S.C. 6307) is amended by adding at the end the fol-
lowing: 
‘‘(c) HVAC MAINTENANCE.—(1) For the purpose of en-
suring that installed air conditioning and heating systems 
operate at their maximum rated efficiency levels, the Sec-
retary shall, within 180 days of the date of enactment of 
this subsection, carry out a program to educate homeowners 
and small business owners concerning the energy savings
resulting from properly conducted maintenance of air con-
ditioning, heating, and ventilating systems. 
‘‘(2) The Secretary shall carry out the program in co-
operation with the Administrator of the Environmental 
Protection Agency and such other entities as the Secretary 
considers appropriate, including industry trade associa-
tions, industry members, and energy efficiency organiza-
tions. 
‘‘(d) SMALL
BUSINESS
EDUCATION
AND
ASSIST-
ANCE.—The Administrator of the Small Business Adminis-
tration, in consultation with the Secretary of Energy and 
the Administrator of the Environmental Protection Agency, 
shall develop and coordinate a Government-wide program, 
building on the existing Energy Star for Small Business 
Program, to assist small business to become more energy 
efficient, understand the cost savings obtainable through ef-
ficiencies, and identify financing options for energy effi-
ciency upgrades. The Secretary and the Administrator shall 
make the program information available directly to small 
businesses and through other Federal agencies, including the 
Federal Emergency Management Agency, and the Depart-
ment of Agriculture.’’.
SEC. 1043. ADDITIONAL DEFINITIONS. 
Section 321 of the Energy Policy and Conservation Act 
(42 U.S.C. 6291) is amended by adding at the end the fol-
lowing: 
‘‘(32) The term ‘battery charger’ means a device 
that charges batteries for consumer products. 
‘‘(33) The term ‘commercial refrigerator, freezer 
and refrigerator-freezer’ means a refrigerator, freezer 
or refrigerator-freezer that— 
‘‘(A) is not a consumer product regulated 
under this Act; and 
‘‘(B) incorporates most components involved 
in the vapor-compression cycle and the refrig-
erated compartment in a single package. 
‘‘(34) The term ‘external power supply’ means 
an external power supply circuit that is used to con-
vert household electric current into either DC current 
or lower-voltage AC current to operate a consumer 
product. 
‘‘(35) The term ‘illuminated exit sign’ means a 
sign that— 
‘‘(A) is designed to be permanently fixed in 
place to identify an exit; and 
‘‘(B) consists of—
‘‘(i) an electrically powered integral 
light source that illuminates the legend 
‘EXIT’ and any directional indicators; and 
‘‘(ii) provides contrast between the leg-
end, any directional indicators, and the 
background. 
‘‘(36)(A) Except as provided in subparagraph 
(B), the term ‘low-voltage dry-type transformer’ 
means a transformer that— 
‘‘(i) has an input voltage of 600 volts or 
less; 
‘‘(ii) is air-cooled; 
‘‘(iii) does not use oil as a coolant; and 
‘‘(iv) is rated for operation at a frequency 
of 60 Hertz. 
‘‘(B) The term ‘low-voltage dry-type transformer’ 
does not include—
‘‘(i) transformers with multiple voltage 
taps, with the highest voltage tap equaling at 
least 20 percent more than the lowest voltage tap; 
‘‘(ii) transformers that are designed to be 
used in a special purpose application, such as 
transformers commonly known as drive trans-
formers, rectifier transformers, autotransformers, 
Uninterruptible Power System transformers, im-
pedance transformers, harmonic transformers, 
regulating transformers, sealed and nonven-
tilating transformers, machine tool transformers, 
welding transformers, grounding transformers, or 
testing transformers; or 
‘‘(iii) any transformer not listed in clause 
(ii) that is excluded by the Secretary by rule be-
cause the transformer is designed for a special 
application and the application of standards to 
the transformer would not result in significant 
energy savings. 
‘‘(37) The term ‘standby mode’ means the lowest 
amount of electric power used by a household appli-
ance when not performing its active functions, as de-
fined on an individual product basis by the Sec-
retary. 
‘‘(38) The term ‘torchiere’ means a portable elec-
tric lamp with a reflector bowl that directs light up-
ward so as to give indirect illumination. 
‘‘(39) The term ‘transformer’ means a device 
consisting of two or more coils of insulated wire that 
transfers alternating current by electromagnetic in-
duction from one coil to another to change the origi-
nal voltage or current value.
‘‘(40) The term ‘unit heater’ means a self-con-
tained fan-type heater designed to be installed within 
the heated space, except that such term does not in-
clude a warm air furnace. 
‘‘(41) The term ‘traffic signal module’ means a 
standard 8-inch (200mm) or 12-inch (300mm) traffic 
signal indication, consisting of a light source, a lens, 
and all other parts necessary for operation, that com-
municates movement messages to drivers through red, 
amber, and green colors.’’. 
SEC. 1044. ADDITIONAL TEST PROCEDURES. 
(a) EXIT SIGNS.—Section 323(b) of the Energy Policy 
and Conservation Act (42 U.S.C. 6293) is amended by add-
ing at the end the following: 
‘‘(9) Test procedures for illuminated exit signs 
shall be based on the test method used under Version 
2.0 of the Energy Star program of the Environmental 
Protection Agency for illuminated exit signs. 
‘‘(10) Test procedures for low voltage dry-type 
distribution transformers shall be based on the 
‘Standard Test Method for Measuring the Energy 
Consumption of Distribution Transformers’ pre-
scribed by the National Electrical Manufacturers As-
sociation (NEMA TP 2–1998). The Secretary may re-
view and revise this test procedure based on future re-
visions to such standard test method. 
‘‘(11) Test procedures for traffic signal modules 
shall be based on the test method used under the En-
ergy Star program of the Environmental Protection 
Agency for traffic signal modules, as in effect on the 
date of enactment of this paragraph.’’. 
(b) ADDITIONAL CONSUMER AND COMMERCIAL PROD-
UCTS.—Section 323 of the Energy Policy and Conservation 
Act (42 U.S.C. 6293) is further amended by adding at the 
end the following: 
‘‘(f) ADDITIONAL CONSUMER AND COMMERCIAL PROD-
UCTS.—The Secretary shall within 24 months after the date 
of enactment of this subsection prescribe testing require-
ments for suspended ceiling fans, refrigerated bottled or 
canned beverage vending machines, commercial unit heat-
ers, and commercial refrigerators, freezers and refrigerator-
freezers. Such testing requirements shall be based on exist-
ing test procedures used in industry to the extent practical 
and reasonable. In the case of suspended ceiling fans, such 
test procedures shall include efficiency at both maximum 
output and at an output no more than 50 percent of the 
maximum output.’’.
SEC. 1045. ENERGY CONSERVATION STANDARDS FOR ADDI-
TIONAL CONSUMER AND COMMERCIAL PROD-
UCTS. 
Section 325 of the Energy Policy and Conservation Act 
(42 U.S.C. 6295) is amended by adding at the end the fol-
lowing: 
‘‘(u) STANDBY MODE ELECTRIC ENERGY CONSUMP-
TION.—
‘‘(1) INITIAL RULEMAKING.—(A) The Secretary 
shall, within 18 months after the date of enactment 
of this subsection, prescribe by notice and comment, 
definitions of standby mode and test procedures for 
the standby mode power use of battery chargers and 
external power supplies. In establishing these test pro-
cedures, the Secretary shall consider, among other fac-
tors, existing test procedures used for measuring en-
ergy consumption in standby mode and assess the 
current and projected future market for battery char-
gers and external power supplies. This assessment
shall include estimates of the significance of potential 
energy savings from technical improvements to these 
products and suggested product classes for standards. 
Prior to the end of this time period, the Secretary 
shall hold a scoping workshop to discuss and receive 
comments on plans for developing energy conservation
standards for standby mode energy use for these prod-
ucts. 
‘‘(B) The Secretary shall, within 3 years after 
the date of enactment of this subsection, issue a final 
rule that determines whether energy conservation 
standards shall be promulgated for battery chargers 
and external power supplies or classes thereof. For 
each product class, any such standards shall be set at 
the lowest level of standby energy use that— 
‘‘(i) meets the criteria of subsections (o), 
(p), (q), (r), (s) and (t); and 
‘‘(ii) will result in significant overall an-
nual energy savings, considering both standby 
mode and other operating modes. 
‘‘(2) DESIGNATION
OF
ADDITIONAL
COVERED 
PRODUCTS.—(A) Not later than 180 days after the 
date of enactment of this subsection, the Secretary 
shall publish for public comment and public hearing 
a notice to determine whether any noncovered prod-
ucts should be designated as covered products for the 
purpose of instituting a rulemaking under this section 
to determine whether an energy conservation standard 
restricting standby mode energy consumption, should 
be promulgated; except that any restriction on stand-
by mode energy consumption shall be limited to major 
sources of such consumption. 
‘‘(B) In making the determinations pursuant to 
subparagraph (A) of whether to designate new covered 
products and institute rulemakings, the Secretary 
shall, among other relevant factors and in addition to 
the criteria in section 322(b), consider— 
‘‘(i) standby mode power consumption com-
pared to overall product energy consumption; 
and 
‘‘(ii) the priority and energy savings poten-
tial of standards which may be promulgated 
under this subsection compared to other required 
rulemakings under this section and the available 
resources of the Department to conduct such 
rulemakings. 
‘‘(C) Not later than 1 year after the date of en-
actment of this subsection, the Secretary shall issue a 
determination of any new covered products for which 
he intends to institute rulemakings on standby mode 
pursuant to this section and he shall state the dates 
by which he intends to initiate those rulemakings. 
‘‘(3) REVIEW OF STANDBY ENERGY USE IN COV-
ERED PRODUCTS.—In determining pursuant to sec-
tion 323 whether test procedures and energy conserva-
tion standards pursuant to this section should be re-
vised, the Secretary shall consider for covered prod-
ucts which are major sources of standby mode energy 
consumption whether to incorporate standby mode 
into such test procedures and energy conservation 
standards, taking into account, among other relevant 
factors, the criteria for non-covered products in sub-
paragraph (B) of paragraph (2) of this subsection. 
‘‘(4) RULEMAKING
FOR
STANDBY
MODE.—(A) 
Any rulemaking instituted under this subsection or 
for covered products under this section which restricts 
standby mode power consumption shall be subject to 
the criteria and procedures for issuing energy con-
servation standards set forth in this section and the 
criteria set forth in subparagraph (B) of paragraph 
(2) of this subsection. 
‘‘(B) No standard can be proposed for new cov-
ered products or covered products in a standby mode 
unless the Secretary has promulgated applicable test 
procedures for each product pursuant to section 323. 
‘‘(C) The provisions of section 327 shall apply to 
new covered products which are subject to the 
rulemakings for standby mode after a final rule has 
been issued.
‘‘(5) EFFECTIVE DATE.—Any standard promul-
gated under this subsection shall be applicable to 
products manufactured or imported 3 years after the 
date of promulgation. 
‘‘(6) VOLUNTARY PROGRAMS TO REDUCE STAND-
BY MODE ENERGY USE.—The Secretary and the Ad-
ministrator shall collaborate and develop programs, 
including programs pursuant to section 324A (relat-
ing to Energy Star Programs) and other voluntary 
industry agreements or codes of conduct, which are 
designed to reduce standby mode energy use. 
‘‘(v) SUSPENDED CEILING FANS, VENDING MACHINES, 
UNIT
HEATERS, 
AND
COMMERCIAL
REFRIGERATORS, 
FREEZERS
AND
REFRIGERATOR-FREEZERS.—The Sec-
retary shall within 24 months after the date on which test-
ing requirements are prescribed by the Secretary pursuant 
to section 323(f), prescribe, by rule, energy conservation 
standards for suspended ceiling fans, refrigerated bottled or 
canned beverage vending machines, unit heaters, and com-
mercial refrigerators, freezers and refrigerator-freezers. In 
establishing standards under this subsection, the Secretary 
shall use the criteria and procedures contained in sub-
sections (l) and (m). Any standard prescribed under this 
subsection shall apply to products manufactured 3 years
after the date of publication of a final rule establishing such 
standard. 
‘‘(w) ILLUMINATED EXIT SIGNS.—Illuminated exit 
signs manufactured on or after January 1, 2005 shall meet 
the Version 2.0 Energy Star Program performance require-
ments for illuminated exit signs prescribed by the Environ-
mental Protection Agency 
‘‘(x) TORCHIERES.—Torchieres manufactured on or 
after January 1, 2005— 
‘‘(1) shall consume not more than 190 watts of 
power; and 
‘‘(2) shall not be capable of operating with lamps 
that total more than 190 watts. 
‘‘(y) LOW VOLTAGE DRY-TYPE TRANSFORMERS.—The 
efficiency of low voltage dry-type transformers manufac-
tured on or after January 1, 2005 shall be the Class I Effi-
ciency Levels for low voltage dry-type transformers specified 
in Table 4–2 of the ‘Guide for Determining Energy Effi-
ciency for Distribution Transformers’ published by the Na-
tional Electrical Manufacturers Association (NEMA TP–
1–1996).
‘‘(z) TRAFFIC SIGNAL MODULES.—Traffic signal mod-
ules manufactured on or after January 1, 2006 shall meet 
the performance requirements used under the Energy Star 
program of the Environmental Protection Agency for traffic
signals, as in effect on the date of enactment of this para-
graph, and shall be installed with compatible, electrically-
connected signal control interface devices and conflict moni-
toring systems. 
‘‘(aa) EFFECTIVE DATE OF SECTION 327.—The provi-
sions of section 327 shall apply to products for which stand-
ards are set in subsections (v) through (z) of this section 
after the effective date for such standards.’’.
SEC. 1046. ENERGY LABELING. 
(a) RULEMAKING ON EFFECTIVENESS OF CONSUMER 
PRODUCT LABELING.—Paragraph (2) of section 324(a) of 
the Energy Policy and Conservation Act (42 U.S.C. 
6294(a)(2)) is amended by adding at the end the following: 
‘‘(F) Not later than 3 months after the date of enact-
ment of this subparagraph, the Commission shall initiate 
a rulemaking to consider the effectiveness of the current con-
sumer products labeling program in assisting consumers in 
making purchasing decisions and improving energy effi-
ciency and to consider changes to the labeling rules that 
would improve the effectiveness of consumer product labels. 
Such rulemaking shall be completed within 2 years after 
the date of enactment of this subparagraph.’’. 
(b) RULEMAKING
ON LABELING
FOR ADDITIONAL 
PRODUCTS.—Section 324(a) of the Energy Policy and Con-
servation Act (42 U.S.C. 6294(a)) is further amended by 
adding at the end the following: 
‘‘(5) The Secretary or the Commission, as appropriate, 
may for covered products referred to in subsections (u) 
through (z) of section 325, prescribe, by rule, pursuant to 
this section, labeling requirements for such products after 
a test procedure has been set pursuant to section 323.’’.
SEC. 1047. STUDY OF ENERGY EFFICIENCY STANDARDS. 
The Secretary of Energy shall contract with the Na-
tional Academy of Sciences for a study, to be completed 
within 1 year of enactment of this Act, to examine whether 
the goals of energy efficiency standards are best served by 
measurement of energy consumed, and efficiency improve-
ments, at the actual site of energy consumption, or through 
the full fuel cycle, beginning at the source of energy produc-
tion. The Secretary shall submit the report to the Congress.
TITLE II—OIL AND GAS 
Subtitle A—Alaska Natural Gas 
Pipeline 
SEC. 2001. SHORT TITLE. 
This subtitle may be cited as the ‘‘Alaska Natural Gas 
Pipeline Act of 2003’’. 
SEC. 2002. FINDINGS AND PURPOSES. 
(a) FINDINGS.—Congress finds the following:
(1) Construction of a natural gas pipeline sys-
tem from the Alaskan North Slope to United States 
markets is in the national interest and will enhance 
national energy security by providing access to the 
significant gas reserves in Alaska needed to meet the 
anticipated demand for natural gas. 
(2) The Commission issued a conditional certifi-
cate of public convenience and necessity for the Alas-
ka natural gas transportation system, which remains 
in effect. 
(b) PURPOSES.—The purposes of this subtitle are as 
follows: 
(1) To provide a statutory framework for the ex-
pedited approval, construction, and initial operation 
of an Alaska natural gas transportation project, as 
an alternative to the framework provided in the Alas-
ka Natural Gas Transportation Act of 1976 (15 
U.S.C. 719 et seq.), which remains in effect. 
(2) To establish a process for providing access to 
such transportation project in order to promote com-
petition in the exploration, development, and produc-
tion of Alaska natural gas. 
(3) To clarify Federal authorities under the 
Alaska Natural Gas Transportation Act of 1976.
SEC. 2003. DEFINITIONS. 
In this subtitle, the following definitions apply: 
(1) ALASKA NATURAL GAS.—The term ‘‘Alaska 
natural gas’’ means natural gas derived from the area 
of the State of Alaska lying north of 64 degrees North 
latitude. 
(2) ALASKA
NATURAL
GAS
TRANSPORTATION 
PROJECT.—The term ‘‘Alaska natural gas transpor-
tation project’’ means any natural gas pipeline sys-
tem that carries Alaska natural gas to the border be-
tween Alaska and Canada (including related facilities 
subject to the jurisdiction of the Commission) that is 
authorized under either—
(A) the Alaska Natural Gas Transportation 
Act of 1976 (15 U.S.C. 719 et seq.); or 
(B) section 2004.
(3) ALASKA NATURAL GAS TRANSPORTATION SYS-
TEM.—The term ‘‘Alaska natural gas transportation 
system’’ means the Alaska natural gas transportation 
project authorized under the Alaska Natural Gas 
Transportation Act of 1976 and designated and de-
scribed in section 2 of the President’s decision. 
(4) 
COMMISSION.—The 
term 
‘‘Commission’’ 
means the Federal Energy Regulatory Commission. 
(5) PRESIDENT’S DECISION.—The term ‘‘Presi-
dent’s decision’’ means the decision and report to
Congress on the Alaska natural gas transportation 
system issued by the President on September 22, 
1977, pursuant to section 7 of the Alaska Natural Gas 
Transportation Act of 1976 (15 U.S.C. 719e) and ap-
proved by Public Law 95–158 (91 Stat. 1268). 
SEC. 2004. ISSUANCE OF CERTIFICATE OF PUBLIC CONVEN-
IENCE AND NECESSITY. 
(a) AUTHORITY
OF
THE
COMMISSION.—Notwith-
standing the provisions of the Alaska Natural Gas Trans-
portation Act of 1976 (15 U.S.C. 719 et seq.), the Commis-
sion may, pursuant to section 7(c) of the Natural Gas Act 
(15 U.S.C. 717f(c)), consider and act on an application for 
the issuance of a certificate of public convenience and neces-
sity authorizing the construction and operation of an Alas-
ka natural gas transportation project other than the Alaska 
natural gas transportation system. 
(b) ISSUANCE OF CERTIFICATE.—
(1) IN GENERAL.—The Commission shall issue a 
certificate of public convenience and necessity author-
izing the construction and operation of an Alaska 
natural gas transportation project under this section 
if the applicant has satisfied the requirements of sec-
tion 7(e) of the Natural Gas Act (15 U.S.C. 717f(e)).
(2) CONSIDERATIONS.—In considering an appli-
cation under this section, the Commission shall pre-
sume that—
(A) a public need exists to construct and 
operate the proposed Alaska natural gas trans-
portation project; and 
(B) sufficient downstream capacity will 
exist to transport the Alaska natural gas moving 
through such project to markets in the contiguous 
United States. 
(c) EXPEDITED APPROVAL PROCESS.—The Commis-
sion shall issue a final order granting or denying any ap-
plication for a certificate of public convenience and neces-
sity under section 7(c) of the Natural Gas Act (15 U.S.C. 
717f(c)) and this section not more than 60 days after the 
issuance of the final environmental impact statement for 
that project pursuant to section 2005. 
(d) PROHIBITION ON CERTAIN PIPELINE ROUTE.—No 
license, permit, lease, right-of-way, authorization, or other 
approval required under Federal law for the construction 
of any pipeline to transport natural gas from lands within 
the Prudhoe Bay oil and gas lease area may be granted 
for any pipeline that follows a route that traverses—
(1) the submerged lands (as defined by the Sub-
merged Lands Act) beneath, or the adjacent shoreline 
of, the Beaufort Sea; and 
(2) enters Canada at any point north of 68 de-
grees North latitude. 
(e) OPEN SEASON.—Except where an expansion is or-
dered pursuant to section 2006, initial or expansion capac-
ity on any Alaska natural gas transportation project shall 
be allocated in accordance with procedures to be established 
by the Commission in regulations governing the conduct of 
open seasons for such project. Such procedures shall include 
the criteria for and timing of any open seasons, be con-
sistent with the purposes set forth in section 2002(b)(2), 
and, for any open season for capacity beyond the initial 
capacity, provide the opportunity for the transportation of 
natural gas other than from the Prudhoe Bay and Point 
Thompson units. The Commission shall issue such regula-
tions not later than 120 days after the date of enactment 
of this Act. 
(f) PROJECTS IN THE CONTIGUOUS UNITED STATES.—
Applications for additional or expanded pipeline facilities 
that may be required to transport Alaska natural gas from 
Canada to markets in the contiguous United States may 
be made pursuant to the Natural Gas Act. To the extent 
such pipeline facilities include the expansion of any facility
constructed pursuant to the Alaska Natural Gas Transpor-
tation Act of 1976, the provisions of that Act shall continue 
to apply. 
(g) STUDY OF IN-STATE NEEDS.—The holder of the 
certificate of public convenience and necessity issued, modi-
fied, or amended by the Commission for an Alaska natural 
gas transportation project shall demonstrate that it has con-
ducted a study of Alaska in-State needs, including tie-in 
points along the Alaska natural gas transportation project 
for in-State access. 
(h) ALASKA ROYALTY GAS.—The Commission, upon 
the request of the State of Alaska and after a hearing, may 
provide for reasonable access to the Alaska natural gas 
transportation project for the State of Alaska or its designee 
for the transportation of the State’s royalty gas for local 
consumption needs within the State; except that the rates 
of existing shippers of subscribed capacity on such project 
shall not be increased as a result of such access. 
(i) REGULATIONS.—The Commission may issue regu-
lations to carry out the provisions of this section. 
SEC. 2005. ENVIRONMENTAL REVIEWS. 
(a) COMPLIANCE WITH NEPA.—The issuance of a cer-
tificate of public convenience and necessity authorizing the 
construction and operation of any Alaska natural gas 
transportation project under section 2004 shall be treated
as a major Federal action significantly affecting the quality 
of the human environment within the meaning of section 
102(2)(C) of the National Environmental Policy Act of 
1969 (42 U.S.C. 4332(2)(C)). 
(b) DESIGNATION OF LEAD AGENCY.—The Commis-
sion shall be the lead agency for purposes of complying with 
the National Environmental Policy Act of 1969, and shall 
be responsible for preparing the statement required by sec-
tion 102(2)(c) of that Act (42 U.S.C. 4332(2)(c)) with re-
spect to an Alaska natural gas transportation project under 
section 2004. The Commission shall prepare a single envi-
ronmental statement under this section, which shall consoli-
date the environmental reviews of all Federal agencies con-
sidering any aspect of the project. 
(c) OTHER AGENCIES.—All Federal agencies consid-
ering aspects of the construction and operation of an Alaska
natural gas transportation project under section 2004 shall 
cooperate with the Commission, and shall comply with 
deadlines established by the Commission in the preparation 
of the statement under this section. The statement prepared 
under this section shall be used by all such agencies to sat-
isfy their responsibilities under section 102(2)(C) of the Na-
tional Environmental Policy Act of 1969 (42 U.S.C. 
4332(2)(C)) with respect to such project.
(d) EXPEDITED PROCESS.—The Commission shall 
issue a draft statement under this section not later than 
12 months after the Commission determines the application 
to be complete and shall issue the final statement not later 
than 6 months after the Commission issues the draft state-
ment, unless the Commission for good cause finds that addi-
tional time is needed. 
SEC. 2006. PIPELINE EXPANSION. 
(a) AUTHORITY.—With respect to any Alaska natural 
gas transportation project, upon the request of one or more 
persons and after giving notice and an opportunity for a 
hearing, the Commission may order the expansion of such 
project if it determines that such expansion is required by 
the present and future public convenience and necessity. 
(b) REQUIREMENTS.—Before ordering an expansion, 
the Commission shall—
(1) approve or establish rates for the expansion 
service that are designed to ensure the recovery, on an 
incremental or rolled-in basis, of the cost associated 
with the expansion (including a reasonable rate of re-
turn on investment); 
(2) ensure that the rates as established do not re-
quire existing shippers on the Alaska natural gas 
transportation project to subsidize expansion ship-
pers;
(3) find that the proposed shipper will comply 
with, and the proposed expansion and the expansion 
of service will be undertaken and implemented based 
on, terms and conditions consistent with the then-ef-
fective tariff of the Alaska natural gas transportation 
project; 
(4) find that the proposed facilities will not ad-
versely affect the financial or economic viability of the 
Alaska natural gas transportation project; 
(5) find that the proposed facilities will not ad-
versely affect the overall operations of the Alaska nat-
ural gas transportation project; 
(6) find that the proposed facilities will not di-
minish the contract rights of existing shippers to pre-
viously subscribed certificated capacity; 
(7) ensure that all necessary environmental re-
views have been completed; and 
(8) find that adequate downstream facilities exist 
or are expected to exist to deliver incremental Alaska 
natural gas to market. 
(c) REQUIREMENT
FOR
A FIRM TRANSPORTATION 
AGREEMENT.—Any order of the Commission issued pursu-
ant to this section shall be null and void unless the person 
or persons requesting the order executes a firm transpor-
tation agreement with the Alaska natural gas transpor-
tation project within a reasonable period of time as speci-
fied in such order. 
(d) LIMITATION.—Nothing in this section shall be con-
strued to expand or otherwise affect any authorities of the 
Commission with respect to any natural gas pipeline lo-
cated outside the State of Alaska. 
(e) REGULATIONS.—The Commission may issue regu-
lations to carry out the provisions of this section. 
SEC. 2007. FEDERAL COORDINATOR. 
(a) ESTABLISHMENT.—There is established, as an 
independent office in the executive branch, the Office of the 
Federal Coordinator for Alaska Natural Gas Transpor-
tation Projects. 
(b) FEDERAL COORDINATOR.—The Office shall be 
headed by a Federal Coordinator for Alaska Natural Gas 
Transportation Projects, who shall—
(1) be appointed by the President, by and with 
the advice of the Senate; 
(2) hold office at the pleasure of the President; 
and 
(3) be compensated at the rate prescribed for 
level III of the Executive Schedule (5 U.S.C. 5314). 
(c) DUTIES.—The Federal Coordinator shall be respon-
sible for—
(1) coordinating the expeditious discharge of all 
activities by Federal agencies with respect to an Alas-
ka natural gas transportation project; and 
(2) ensuring the compliance of Federal agencies 
with the provisions of this subtitle. 
(d) REVIEWS
AND ACTIONS
OF OTHER FEDERAL 
AGENCIES.—
(1) EXPEDITED REVIEWS AND ACTIONS.—All re-
views conducted and actions taken by any Federal of-
ficer or agency relating to an Alaska natural gas 
transportation project authorized under this section 
shall be expedited, in a manner consistent with com-
pletion of the necessary reviews and approvals by the 
deadlines set forth in this subtitle.
(2) PROHIBITION ON CERTAIN TERMS AND CON-
DITIONS.—Except with respect to Commission actions 
under sections 2004, 2005, and 2006, no Federal offi-
cer or agency shall have the authority to include 
terms and conditions that are permitted, but not re-
quired, by law on any certificate, right-of-way, per-
mit, lease, or other authorization issued to an Alaska 
natural gas transportation project if the Federal Co-
ordinator determines that the terms and conditions 
would prevent or impair in any significant respect
the expeditious construction and operation of the 
project. 
(3) PROHIBITION ON CERTAIN ACTIONS.—Except 
with respect to Commission actions under sections 
2004, 2005, and 2006, unless required by law, no 
Federal officer or agency shall add to, amend, or ab-
rogate any certificate, right-of-way, permit, lease, or 
other authorization issued to an Alaska natural gas 
transportation project if the Federal Coordinator de-
termines that such action would prevent or impair in 
any significant respect the expeditious construction 
and operation of the project. 
(e) STATE COORDINATION.—The Federal Coordinator 
shall enter into a Joint Surveillance and Monitoring Agree-
ment, approved by the President and the Governor of Alas-
ka, with the State of Alaska similar to that in effect during 
construction of the Trans-Alaska Oil Pipeline to monitor 
the construction of the Alaska natural gas transportation 
project. The Federal Government shall have primary sur-
veillance and monitoring responsibility where the Alaska 
natural gas transportation project crosses Federal lands 
and private lands, and the State government shall have pri-
mary surveillance and monitoring responsibility where the 
Alaska natural gas transportation project crosses State 
lands.
(f) TRANSFER OF FEDERAL INSPECTOR FUNCTIONS 
AND AUTHORITY.—Upon appointment of the Federal Coor-
dinator by the President, all of the functions and authority 
of the Office of Federal Inspector of Construction for the 
Alaska Natural Gas Transportation System vested in the 
Secretary of Energy pursuant to section 3012(b) of Public 
Law 102–486 (15 U.S.C. 719e(b)), including all functions 
and authority described and enumerated in the Reorganiza-
tion Plan No. 1 of 1979 (44 Fed. Reg. 33,663), Executive 
Order No. 12142 of June 21, 1979 (44 Fed. Reg. 36,927), 
and section 5 of the President’s decision, shall be transferred 
to the Federal Coordinator. 
SEC. 2008. JUDICIAL REVIEW. 
(a) EXCLUSIVE JURISDICTION.—Except for review by 
the Supreme Court of the United States on writ of certio-
rari, the United States Court of Appeals for the District 
of Columbia Circuit shall have original and exclusive juris-
diction to determine—
(1) the validity of any final order or action (in-
cluding a failure to act) of any Federal agency or of-
ficer under this subtitle; 
(2) the constitutionality of any provision of this 
subtitle, or any decision made or action taken under 
this subtitle; or
(3) the adequacy of any environmental impact 
statement prepared under the National Environ-
mental Policy Act of 1969 with respect to any action 
under this subtitle. 
(b) DEADLINE FOR FILING CLAIM.—Claims arising 
under this subtitle may be brought not later than 60 days 
after the date of the decision or action giving rise to the 
claim. 
(c) EXPEDITED CONSIDERATION.—The United States 
Court of Appeals for the District of Columbia Circuit shall 
set any action brought under subsection (a) for expedited 
consideration, taking into account the national interest as 
described in section 2002(a). 
(d) AMENDMENT TO ANGTA.—Section 10(c) of the 
Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 
719h) is amended by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) The United States Court of Appeals for the Dis-
trict of Columbia Circuit shall set any action brought under 
this section for expedited consideration, taking into account 
the national interest described in section 2.’’. 
SEC. 2009. STATE JURISDICTION OVER IN-STATE DELIVERY 
OF NATURAL GAS. 
(a) LOCAL DISTRIBUTION.—Any facility receiving 
natural gas from the Alaska natural gas transportation
project for delivery to consumers within the State of Alaska 
shall be deemed to be a local distribution facility within 
the meaning of section 1(b) of the Natural Gas Act (15 
U.S.C. 717(b)), and therefore not subject to the jurisdiction 
of the Commission. 
(b) ADDITIONAL PIPELINES.—Nothing in this subtitle, 
except as provided in section 2004(d), shall preclude or af-
fect a future gas pipeline that may be constructed to deliver 
natural gas to Fairbanks, Anchorage, Matanuska-Susitna 
Valley, or the Kenai peninsula or Valdez or any other site 
in the State of Alaska for consumption within or distribu-
tion outside the State of Alaska. 
(c) RATE COORDINATION.—Pursuant to the Natural 
Gas Act, the Commission shall establish rates for the trans-
portation of natural gas on the Alaska natural gas trans-
portation project. In exercising such authority, the Commis-
sion, pursuant to section 17(b) of the Natural Gas Act (15 
U.S.C. 717p(b)), shall confer with the State of Alaska re-
garding rates (including rate settlements) applicable to nat-
ural gas transported on and delivered from the Alaska nat-
ural gas transportation project for use within the State of 
Alaska.
SEC. 2010. STUDY OF ALTERNATIVE MEANS OF CONSTRUC-
TION. 
(a) REQUIREMENT OF STUDY.—If no application for 
the issuance of a certificate or amended certificate of public 
convenience and necessity authorizing the construction and 
operation of an Alaska natural gas transportation project 
has been filed with the Commission not later than 18 
months after the date of enactment of this Act, the Secretary 
of Energy shall conduct a study of alternative approaches 
to the construction and operation of the project. 
(b) SCOPE OF STUDY.—The study shall consider the 
feasibility of establishing a Government corporation to con-
struct an Alaska natural gas transportation project, and 
alternative means of providing Federal financing and own-
ership (including alternative combinations of Government 
and private corporate ownership) of the project. 
(c) CONSULTATION.—In conducting the study, the Sec-
retary of Energy shall consult with the Secretary of the
Treasury and the Secretary of the Army (acting through 
the Commanding General of the Corps of Engineers). 
(d) REPORT.—If the Secretary of Energy is required 
to conduct a study under subsection (a), the Secretary shall 
submit a report containing the results of the study, the Sec-
retary’s recommendations, and any proposals for legislation 
to implement the Secretary’s recommendations to Congress.
SEC. 2011. CLARIFICATION OF ANGTA STATUS AND AU-
THORITIES. 
(a) SAVINGS CLAUSE.—Nothing in this subtitle affects 
any decision, certificate, permit, right-of-way, lease, or 
other authorization issued under section 9 of the Alaska 
Natural Gas Transportation Act of 1976 (15 U.S.C. 719g) 
or any Presidential findings or waivers issued in accord-
ance with that Act. 
(b) CLARIFICATION OF AUTHORITY TO AMEND TERMS 
AND CONDITIONS TO MEET CURRENT PROJECT REQUIRE-
MENTS.—Any Federal officer or agency responsible for 
granting or issuing any certificate, permit, right-of-way, 
lease, or other authorization under section 9 of the Alaska 
Natural Gas Transportation Act of 1976 (15 U.S.C. 719g) 
may add to, amend, or abrogate any term or condition in-
cluded in such certificate, permit, right-of-way, lease, or 
other authorization to meet current project requirements 
(including the physical design, facilities, and tariff speci-
fications), so long as such action does not compel a change 
in the basic nature and general route of the Alaska natural 
gas transportation system as designated and described in 
section 2 of the President’s decision, or would otherwise pre-
vent or impair in any significant respect the expeditious 
construction and initial operation of such transportation 
system.
(c) UPDATED ENVIRONMENTAL REVIEWS.—The Sec-
retary of Energy shall require the sponsor of the Alaska nat-
ural gas transportation system to submit such updated en-
vironmental data, reports, permits, and impact analyses as 
the Secretary determines are necessary to develop detailed 
terms, conditions, and compliance plans required by section 
5 of the President’s decision. 
SEC. 2012. SENSE OF CONGRESS. 
It is the sense of Congress that an Alaska natural gas 
transportation project will provide significant economic 
benefits to the United States and Canada. In order to maxi-
mize those benefits, Congress urges the sponsors of the pipe-
line project to make every effort to use steel that is manufac-
tured or produced in North America and to negotiate a 
project labor agreement to expedite construction of the pipe-
line. 
SEC. 2013. PARTICIPATION OF SMALL BUSINESS CONCERNS. 
(a) SENSE OF CONGRESS.—It is the sense of Congress 
that an Alaska natural gas transportation project will pro-
vide significant economic benefits to the United States and 
Canada. In order to maximize those benefits, Congress urges 
the sponsors of the pipeline project to maximize the partici-
pation of small business concerns in contracts and sub-
contracts awarded in carrying out the project. 
(b) STUDY.—
(1) IN GENERAL.—The Comptroller General shall 
conduct a study on the extent to which small business 
concerns participate in the construction of oil and gas 
pipelines in the United States. 
(2) REPORT.—Not later that 1 year after the 
date of enactment of this Act, the Comptroller General 
shall transmit to Congress a report containing the re-
sults of the study. 
(3) UPDATES.—The Comptroller General shall 
update the study at least once every 5 years and 
transmit to Congress a report containing the results 
of the update. 
(4) APPLICABILITY.—After the date of completion 
of the construction of an Alaska natural gas transpor-
tation project, this subsection shall no longer apply. 
(c) SMALL BUSINESS CONCERN DEFINED.—In this 
section, the term ‘‘small business concern’’ has the meaning 
given such term in section 3(a) of the Small Business Act 
(15 U.S.C. 632(a)). 
SEC. 2014. ALASKA PIPELINE CONSTRUCTION TRAINING 
PROGRAM. 
(a) ESTABLISHMENT OF PROGRAM.—The Secretary of 
Labor (in this section referred to as the ‘‘Secretary’’) may 
make grants to the Alaska Department of Labor and Work-
force Development to—
(1) develop a plan to train, through the work-
force investment system established in the State of 
Alaska under the Workforce Investment Act of 1998 
(112 Stat. 936 et seq.), adult and dislocated workers, 
including Alaska Natives, in urban and rural Alaska 
in the skills required to construct and operate an 
Alaska gas pipeline system; and 
(2) implement the plan developed pursuant to 
paragraph (1). 
(b) REQUIREMENTS
FOR PLANNING GRANTS.—The 
Secretary may make a grant under subsection (a)(1) only 
if—
(1) the Governor of Alaska certifies in writing to 
the Secretary that there is a reasonable expectation 
that construction of an Alaska gas pipeline will com-
mence within 3 years after the date of such certifi-
cation; and 
(2) the Secretary of the Interior concurs in writ-
ing to the Secretary with the certification made under 
paragraph (1). 
(c) REQUIREMENTS FOR IMPLEMENTATION GRANTS.—
The Secretary may make a grant under subsection (a)(2) 
only if—
(1) the Secretary has approved a plan developed 
pursuant to subsection (a)(1);
(2) the Governor of Alaska requests the grant 
funds and certifies in writing to the Secretary that 
there is a reasonable expectation that the construction 
of an Alaska gas pipeline system will commence with-
in 2 years after the date of such certification; 
(3) the Secretary of the Interior concurs in writ-
ing to the Secretary with the certification made under 
paragraph (2) after considering—
(A) the status of necessary State and Fed-
eral permits; 
(B) the availability of financing for the 
pipeline project; and 
(C) 
other 
relevant 
factors 
and 
cir-
cumstances. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to the Secretary of Labor
such sums as may be necessary, but not to exceed 
$20,000,000, to carry out this section. 
Subtitle B—Strategic Petroleum 
Reserve 
SEC. 2101. FULL CAPACITY OF STRATEGIC PETROLEUM RE-
SERVE. 
The President shall— 
(1) fill the Strategic Petroleum Reserve estab-
lished pursuant to part B of title I of the Energy Pol-
icy and Conservation Act (42 U.S.C. 6231 et seq.) to 
full capacity as soon as practicable; 
(2) acquire petroleum for the Strategic Petro-
leum Reserve by the most practicable and cost-effec-
tive means, with consideration being given to domes-
tically produced petroleum, including the acquisition 
of crude oil the United States is entitled to receive in 
kind as royalties from production on Federal lands; 
and 
(3) ensure that the fill rate minimizes impacts 
on petroleum markets. 
SEC. 2102. STRATEGIC PETROLEUM RESERVE EXPANSION. 
(a) PLAN.—Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Energy shall 
transmit to the Congress a plan for the expansion of the 
Strategic Petroleum Reserve to 1,000,000,000 barrels, in-
cluding—
(1) plans for the elimination of infrastructure 
impediments to maximum drawdown capability; 
(2) a schedule for the completion of all required 
environmental reviews; 
(3) provision for consultation with Federal and 
State environmental agencies; 
(4) a schedule and procedures for site selection; 
and
(5) anticipated annual budget requests. 
(b) CONSTRUCTION OF ADDITIONAL CAPACITY.—The 
Secretary of Energy shall acquire property and complete 
construction for the expansion of the Strategic Petroleum 
Reserve in accordance with the plan transmitted under sub-
section (a). 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to the Secretary of Energy 
$1,500,000,000 for carrying out this section, to remain 
available until expended.
SEC. 2103. PERMANENT AUTHORITY TO OPERATE THE 
STRATEGIC 
PETROLEUM 
RESERVE 
AND 
OTHER ENERGY PROGRAMS. 
(a) AMENDMENT TO TITLE I OF THE ENERGY POLICY 
AND CONSERVATION ACT.—Title I of the Energy Policy and 
Conservation Act (42 U.S.C. 6211 et seq.) is amended—
(1) by striking section 166 (42 U.S.C. 6246) and 
inserting—
‘‘AUTHORIZATION OF APPROPRIATIONS 
‘‘SEC. 166. There are authorized to be appropriated 
to the Secretary such sums as may be necessary to carry 
out this part and part D, to remain available until ex-
pended.’’; 
(2) by striking section 186 (42 U.S.C. 6250e); 
and
(3) by striking part E (42 U.S.C. 6251; relating 
to the expiration of title I of the Act). 
(b) AMENDMENT TO TITLE II OF THE ENERGY POLICY 
AND CONSERVATION ACT.—Title II of the Energy Policy 
and Conservation Act (42 U.S.C. 6271 et seq.) is amend-
ed—
(1) by inserting before section 273 (42 U.S.C. 
6283) the following: 
‘‘PART C—SUMMER FILL AND FUEL BUDGETING 
PROGRAMS’’;
(2) by striking section 273(e) (42 U.S.C. 6283(e); 
relating to the expiration of summer fill and fuel 
budgeting programs); and 
(3) by striking part D (42 U.S.C. 6285; relating 
to the expiration of title II of the Act). 
(c) TECHNICAL AMENDMENTS.—The table of contents 
for the Energy Policy and Conservation Act is amended—
(1) by inserting after the items relating to part 
C of title I the following:
‘‘PART D—NORTHEAST HOME HEATING OIL RESERVE 
‘‘Sec. 181. Establishment. 
‘‘Sec. 182. Authority. 
‘‘Sec. 183. Conditions for release; plan. 
‘‘Sec. 184. Northeast Home Heating Oil Reserve Account. 
‘‘Sec. 185. Exemptions.’’;
(2) by amending the items relating to part C of 
title II to read as follows:
‘‘PART C—SUMMER FILL AND FUEL BUDGETING PROGRAMS 
‘‘Sec. 273. Summer fill and fuel budgeting programs.’’; and
(3) by striking the items relating to part D of 
title II. 
(d) AMENDMENT TO THE ENERGY POLICY AND CON-
SERVATION ACT.—Section 183(b)(1) of the Energy Policy 
and Conservation Act (42 U.S.C. 6250b(b)(1)) is amended 
by inserting ‘‘(considered as a heating season average)’’ 
after ‘‘mid-October through March’’. 
Subtitle C—Hydraulic Fracturing 
SEC. 2201. HYDRAULIC FRACTURING. 
Paragraph (1) of section 1421(d) of the Safe Drinking 
Water Act (42 U.S.C. 300h(d)) is amended to read as fol-
lows: 
‘‘(1) The term ‘underground injection’—
‘‘(A) means the subsurface emplacement of 
fluids by well injection; and 
‘‘(B) excludes—
‘‘(i) the underground injection of nat-
ural gas for purposes of storage; and 
‘‘(ii) the underground injection of 
fluids or propping agents pursuant to hy-
draulic fracturing operations related to oil 
or gas production activities.’’.
Subtitle D—Unproven Oil and Nat-
ural Gas Reserves Recovery Pro-
gram 
SEC. 2301. PROGRAM. 
The Secretary shall carry out a program to dem-
onstrate technologies for the recovery of oil and natural gas 
reserves from reservoirs described in section 2302.
SEC. 2302. ELIGIBLE RESERVOIRS. 
The program under this subtitle shall only address oil 
and natural gas reservoirs with 1 or more of the following 
characteristics: 
(1) Complex geology involving rapid changes in 
the type and quality of the oil reservoir across the res-
ervoir. 
(2) Low reservoir pressure. 
(3) Unconventional natural gas reservoirs in 
coalbeds, tight sands, or shales. 
SEC. 2303. FOCUS AREAS. 
The program under this subtitle may focus on areas 
including coal-bed methane, deep drilling, natural gas pro-
duction from tight sands, natural gas production from gas 
shales, innovative production techniques (including hori-
zontal drilling, fracture detection methodologies, and three-
dimensional seismic), and enhanced recovery techniques.
SEC. 2304. LIMITATION ON LOCATION OF ACTIVITIES. 
Activities under this subtitle shall be carried out 
only—
(1) in—
(A) areas onshore in the United States on 
public land administered by the Secretary of the 
Interior available for oil and gas leasing, where 
consistent with applicable law and land use 
plans; and 
(B) areas onshore in the United States on 
State or private land, subject to applicable law; 
and 
(2) with the approval of the appropriate Federal 
or State land management agency or private land 
owner. 
SEC. 2305. PROGRAM ADMINISTRATION. 
(a) ROLE OF THE SECRETARY.—The Secretary shall 
have ultimate responsibility for, and oversight of, all aspects 
of the program under this subtitle. 
(b) ROLE OF THE PROGRAM CONSORTIUM.—
(1) IN GENERAL.—The Secretary shall contract 
with a consortium to—
(A) manage awards pursuant to subsection 
(e)(4); 
(B) make recommendations to the Secretary 
for project solicitations;
(C) disburse funds awarded under sub-
section (e) as directed by the Secretary in ac-
cordance with the annual plan under subsection 
(d); and 
(D) carry out other activities assigned to 
the program consortium by this section. 
(2) LIMITATION.—The Secretary may not assign 
any activities to the program consortium except as 
specifically authorized under this section. 
(3) CONFLICT OF INTEREST.—(A) The Secretary 
shall establish procedures—
(i) to ensure that each board member, offi-
cer, or employee of the program consortium who 
is in a decisionmaking capacity under subsection 
(e)(3) or (4) shall disclose to the Secretary any 
financial interests in, or financial relationships 
with, applicants for or recipients of awards 
under this section, including those of his or her 
spouse or minor child, unless such relationships 
or interests would be considered to be remote or 
inconsequential; and 
(ii) to require any board member, officer, or 
employee with a financial relationship or inter-
est disclosed under clause (i) to recuse himself or 
herself from any review under subsection (e)(3)
or oversight under subsection (e)(4) with respect 
to such applicant or recipient. 
(B) The Secretary may disqualify an applica-
tion or revoke an award under this section if a board 
member, officer, or employee has failed to comply 
with procedures required under subparagraph (A)(ii). 
(c) SELECTION OF THE PROGRAM CONSORTIUM.—
(1) IN GENERAL.—The Secretary shall select the 
program consortium through an open, competitive 
process. 
(2) MEMBERS.—The program consortium may 
include corporations and institutions of higher edu-
cation. The Secretary shall give preference in the se-
lection of the program consortium to applicants with 
broad representation from the various major oil and 
natural gas basins in the United States. After submit-
ting a proposal under paragraph (4), the program 
consortium may not add members without the consent 
of the Secretary. 
(3) TAX STATUS.—The program consortium shall 
be an entity that is exempt from tax under section 
501(c)(3) of the Internal Revenue Code of 1986. 
(4) SCHEDULE.—Not later than 90 days after 
the date of enactment of this Act, the Secretary shall 
solicit proposals for the creation of the program con-
sortium, which must be submitted not less than 180 
days after the date of enactment of this Act. The Sec-
retary shall select the program consortium not later 
than 240 days after such date of enactment. 
(5) APPLICATION.—Applicants shall submit a 
proposal including such information as the Secretary 
may require. At a minimum, each proposal shall—
(A) list all members of the consortium; 
(B) fully describe the structure of the con-
sortium, including any provisions relating to in-
tellectual property; and 
(C) describe how the applicant would carry 
out the activities of the program consortium 
under this section. 
(6) ELIGIBILITY.—To be eligible to be selected as 
the program consortium, an applicant must be an en-
tity whose members collectively have demonstrated ca-
pabilities in planning and managing programs for 
the production of oil or natural gas. 
(7) CRITERION.—The Secretary may consider the 
amount of the fee an applicant proposes to receive 
under subsection (f) in selecting a consortium under 
this section. 
(d) ANNUAL PLAN.—
(1) IN GENERAL.—The program under this sub-
title shall be carried out pursuant to an annual plan 
prepared by the Secretary in accordance with para-
graph (2).
(2) DEVELOPMENT.—(A) Before drafting an an-
nual plan under this subsection, the Secretary shall 
solicit specific written recommendations from the pro-
gram consortium for each element to be addressed in 
the plan, including those described in paragraph (4). 
The Secretary may request that the program consor-
tium submit its recommendations in the form of a 
draft annual plan. 
(B) The Secretary shall submit the recommenda-
tions of the program consortium under subparagraph 
(A) to the Advisory Committee for review, and the 
Advisory Committee shall provide to the Secretary 
written comments by a date determined by the Sec-
retary. The Secretary may also solicit comments from 
any other experts. 
(C) The Secretary shall consult regularly with 
the program consortium throughout the preparation 
of the annual plan. 
(3) PUBLICATION.—The Secretary shall transmit 
to the Congress and publish in the Federal Register 
the annual plan, along with any written comments
received under paragraph (2)(A) and (B). The annual 
plan shall be transmitted and published not later 
than 60 days after the date of enactment of an Act 
making appropriations for a fiscal year for the pro-
gram under this subtitle. 
(4) CONTENTS.—The annual plan shall describe 
the ongoing and prospective activities of the program 
under this subtitle and shall include—
(A) a list of any solicitations for awards 
that the Secretary plans to issue to carry out ac-
tivities, including the topics for such work, who 
would be eligible to apply, selection criteria, and 
the duration of awards; and 
(B) a description of the activities expected 
of the program consortium to carry out sub-
section (e)(4). 
(e) AWARDS.—
(1) IN
GENERAL.—The Secretary shall make 
awards to carry out activities under the program 
under this subtitle. The program consortium shall not 
be eligible to receive such awards, but members of the 
program consortium may receive such awards. 
(2) PROPOSALS.—
(A) SOLICITATION.—The Secretary shall so-
licit proposals for awards under this subsection
in such manner and at such time as the Sec-
retary may prescribe, in consultation with the 
program consortium. 
(B) CONTENTS.—Each proposal submitted 
shall include the following: 
(i) An estimate of the potential 
unproven reserves in the reservoir, estab-
lished by a registered petroleum engineer. 
(ii) An estimate of the potential for 
success of the project. 
(iii) A detailed project plan. 
(iv) A detailed analysis of the costs as-
sociated with the project. 
(v) A time frame for project comple-
tion. 
(vi) Evidence that any lienholder on 
the project will subordinate its interests to 
the extent necessary to ensure that the Fed-
eral government receives its portion of any 
revenues pursuant to section 2308. 
(vii) Such other matters as the Sec-
retary considers appropriate. 
(3) REVIEW.—The Secretary shall make awards 
under this subsection through a competitive process, 
which shall include a review by individuals selected
by the Secretary. Such individuals shall include, for 
each application, Federal officials, the program con-
sortium, and non-Federal experts who are not board 
members, officers, or employees of the program consor-
tium or of a member of the program consortium. 
(4) OVERSIGHT.—(A) The program consortium 
shall oversee the implementation of awards under this 
subsection, consistent with the annual plan under 
subsection (d), including disbursing funds and moni-
toring activities carried out under such awards for 
compliance with the terms and conditions of the 
awards. 
(B) Nothing in subparagraph (A) shall limit the 
authority or responsibility of the Secretary to oversee 
awards, or limit the authority of the Secretary to re-
view or revoke awards. 
(C) The Secretary shall provide to the program 
consortium the information necessary for the program 
consortium to carry out its responsibilities under this 
paragraph. 
(f) FEE.—To compensate the program consortium for 
carrying out its activities under this section, the Secretary 
shall provide to the program consortium a fee in an amount 
not to exceed 7.5 percent of the amounts awarded under 
subsection (e) for each fiscal year.
(g) DISALLOWED EXPENSES.—No portion of any 
award shall be used by a recipient for general or adminis-
trative expenses of any kind. 
(h) AUDIT.—The Secretary shall retain an inde-
pendent, commercial auditor to determine the extent to 
which funds provided to the program consortium, and funds 
provided under awards made under subsection (e), have 
been expended in a manner consistent with the purposes 
and requirements of this subtitle. The auditor shall trans-
mit a report annually to the Secretary, who shall transmit 
the report to Congress, along with a plan to remedy any 
deficiencies cited in the report. 
SEC. 2306. ADVISORY COMMITTEE. 
(a) ESTABLISHMENT.—Not later than 270 days after 
the date of enactment of this Act, the Secretary shall estab-
lish an Advisory Committee. 
(b) MEMBERSHIP.—The Advisory Committee shall be 
composed of members appointed by the Secretary and in-
cluding—
(1) individuals with extensive experience or oper-
ational knowledge of oil and natural gas production, 
including independent oil and gas producers; 
(2) individuals broadly representative of oil and 
natural gas production; and 
(3) no individuals who are Federal employees.
(c) DUTIES.—The Advisory Committee shall advise the 
Secretary on the development and implementation of activi-
ties under this subtitle.
(d) COMPENSATION.—A member of the Advisory Com-
mittee shall serve without compensation but shall receive 
travel expenses, including per diem in lieu of subsistence, 
in accordance with applicable provisions under subchapter 
I of chapter 57 of title 5, United States Code. 
(e) PROHIBITION.—The Advisory Committee shall not 
make recommendations on funding awards to consortia or 
for specific projects. 
SEC. 2307. LIMITS ON PARTICIPATION. 
An entity shall be eligible to receive an award under 
this subtitle only if the Secretary finds—
(1) that the entity’s participation in the pro-
gram under this subtitle would be in the economic in-
terest of the United States; 
(2) that the entity is a United States-owned enti-
ty organized under the laws of the United States with 
production levels of less than 1,000 barrels per day of 
oil equivalent; and 
(3) that the entity has demonstrated that non-
governmental third party sources of financing are not 
available for the proposal project.
SEC. 2308. PAYMENTS TO FEDERAL GOVERNMENT. 
(a) INITIAL RATE.—Until the amount of a grant 
under this subtitle has been fully repaid to the Federal Gov-
ernment under this subsection, 95 percent of all revenues 
derived from increased incremental production attributable 
to participation in the program under this subtitle shall 
be paid to the Secretary by the purchaser of such increased 
production. 
(b) RATE AFTER REPAYMENT.—After the Federal Gov-
ernment has been fully repaid under subsection (a), 5 per-
cent of all revenues derived from increased incremental pro-
duction attributable to participation in the program under 
this subtitle shall be paid to the Secretary by the purchaser 
of such increased production. 
SEC. 2309. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Sec-
retary for carrying out this subtitle $100,000,000, to re-
main available until expended. 
SEC. 2310. PUBLIC AVAILABILITY OF PROJECT RESULTS 
AND METHODOLOGIES. 
The results of any project undertaken pursuant to this 
subtitle and the methodologies used to achieve those results 
shall be made public by the Secretary. The methodologies 
used shall not be proprietary so that such methodologies 
may be used for other projects by persons not seeking 
awards pursuant to this subtitle.
SEC. 2311. SUNSET. 
The authority provided by this subtitle shall terminate 
on September 30, 2010. 
SEC. 2312. DEFINITIONS. 
In this subtitle: 
(1) PROGRAM
CONSORTIUM.—The term ‘‘pro-
gram consortium’’ means the consortium selected 
under section 2305(c). 
(2) REMOTE OR INCONSEQUENTIAL.—The term 
‘‘remote or inconsequential’’ has the meaning given 
that term in regulations issued by the Office of Gov-
ernment Ethics under section 208(b)(2) of title 18, 
United States Code. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy.
Subtitle E—Miscellaneous 
SEC. 2401. APPEALS RELATING TO PIPELINE CONSTRUC-
TION PROJECTS. 
(a) AGENCY OF RECORD.—Any Federal administra-
tive agency proceeding that is an appeal or review of Fed-
eral authority for an interstate natural gas pipeline con-
struction project, including construction of natural gas stor-
age and liquefied natural gas facilities, shall use as its ex-
clusive record for all purposes the record compiled by the 
Federal Energy Regulatory Commission pursuant to such
100
Commission’s proceeding under section 7 of the Natural Gas 
Act. 
(b) SENSE OF THE CONGRESS.—It is the sense of the 
Congress that all Federal and State agencies with jurisdic-
tion over interstate natural gas pipeline construction ac-
tivities should coordinate their proceedings within the time 
frames established by the Federal Energy Regulatory Com-
mission while it is acting pursuant to section 7 of the Nat-
ural Gas Act to determine whether a proposed interstate 
natural gas pipeline is in the public convenience and neces-
sity. 
SEC. 2402. NATURAL GAS MARKET DATA TRANSPARENCY. 
(a) ESTABLISHMENT OF SYSTEM.—Not later than 180 
days after the date of enactment of this Act, the Federal 
Energy Regulatory Commission shall issue rules author-
izing or establishing an electronic information system to 
provide the Commission and the public with timely access 
to such information as is necessary or appropriate to facili-
tate price transparency and participation in natural gas 
markets. Such system shall provide information about the 
market price of natural gas sold in interstate commerce. 
(b) DATA SUBJECT TO DISCLOSURE.—Rules issued 
under subsection (a) shall require public availability only 
of—
(1) aggregate data; and
101
(2) transaction-specific data that is otherwise re-
quired by the Federal Energy Regulatory Commission 
to be made public. 
(c) CIVIL PENALTY.—Any person who violates any 
provision of a rule issued under subsection (a) shall be sub-
ject to a civil penalty of not more than $1,000,000 for each 
day that such violation continues. Such penalty shall be 
assessed by the Federal Energy Regulatory Commission, 
after notice and opportunity for public hearing. In deter-
mining the amount of a proposed penalty, the Commission 
shall take into consideration the seriousness of the violation 
and the efforts of such person to remedy the violation in 
a timely manner. 
SEC. 2403. OIL AND GAS EXPLORATION AND PRODUCTION 
DEFINED. 
Section 502 of the Federal Water Pollution Control Act 
(33 U.S.C. 1362) is amended by adding at the end the fol-
lowing:
‘‘(24) The term ‘oil and gas exploration and produc-
tion’ means all field operations necessary for both explo-
ration and production of oil and gas, including activities 
necessary to prepare a site for drilling and for the move-
ment and placement of drilling equipment, whether or not 
such activities may be considered construction activities.’’.
102
TITLE III—HYDROELECTRIC 
RELICENSING 
Subtitle A—Alternative Conditions 
SEC. 3001. ALTERNATIVE CONDITIONS AND FISHWAYS. 
(a) FEDERAL RESERVATIONS.—Section 4(e) of the 
Federal Power Act (16 U.S.C. 797(e)) is amended by insert-
ing after ‘‘adequate protection and utilization of such res-
ervation.’’ at the end of the first proviso the following: ‘‘The 
license applicant shall be entitled to a determination on the 
record, after opportunity for an agency trial-type hearing 
of any disputed issues of material fact, with respect to such 
conditions.’’. 
(b) FISHWAYS.—Section 18 of the Federal Power Act 
(16 U.S.C. 811) is amended by inserting after ‘‘and such 
fishways as may be prescribed by the Secretary of Com-
merce.’’ the following: ‘‘The license applicant shall be enti-
tled to a determination on the record, after opportunity for 
an agency trial-type hearing of any disputed issues of mate-
rial fact, with respect to such fishways.’’. 
(c) ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.—
Part I of the Federal Power Act (16 U.S.C. 791a et seq.) 
is amended by adding the following new section at the end 
thereof:
103
‘‘SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS. 
‘‘(a) ALTERNATIVE CONDITIONS.—(1) Whenever any 
person applies for a license for any project works within 
any reservation of the United States, and the Secretary of 
the department under whose supervision such reservation 
falls (referred to in this subsection as ‘the Secretary’) deems 
a condition to such license to be necessary under the first 
proviso of section 4(e), the license applicant may propose 
an alternative condition. 
‘‘(2) Notwithstanding the first proviso of section 4(e), 
the Secretary shall accept the proposed alternative condi-
tion referred to in paragraph (1), and the Commission shall 
include in the license such alternative condition, if the Sec-
retary determines, based on substantial evidence provided 
by the license applicant or otherwise available to the Sec-
retary, that such alternative condition—
‘‘(A) provides for the adequate protection and 
utilization of the reservation; and 
‘‘(B) will either—
‘‘(i) cost less to implement; or 
‘‘(ii) result in improved operation of the 
project works for electricity production, 
as compared to the condition initially deemed nec-
essary by the Secretary. 
‘‘(3) The Secretary shall submit into the public record 
of the Commission proceeding with any condition under
104
section 4(e) or alternative condition it accepts under this 
section, a written statement explaining the basis for such 
condition, and reason for not accepting any alternative con-
dition under this section. The written statement must dem-
onstrate that the Secretary gave equal consideration to the 
effects of the condition adopted and alternatives not accept-
ed on energy supply, distribution, cost, and use; flood con-
trol; navigation; water supply; and air quality (in addition 
to the preservation of other aspects of environmental qual-
ity); based on such information as may be available to the 
Secretary, including information voluntarily provided in 
a timely manner by the applicant and others. The Secretary 
shall also submit, together with the aforementioned written 
statement, all studies, data, and other factual information 
available to the Secretary and relevant to the Secretary’s 
decision. 
‘‘(4) Nothing in this section shall prohibit other inter-
ested parties from proposing alternative conditions. 
‘‘(5) If the Secretary does not accept an applicant’s 
alternative condition under this section, and the Commis-
sion finds that the Secretary’s condition would be incon-
sistent with the purposes of this part, or other applicable 
law, the Commission may refer the dispute to the Commis-
sion’s Dispute Resolution Service. The Dispute Resolution 
Service shall consult with the Secretary and the Commis-
105
sion and issue a non-binding advisory within 90 days. The 
Secretary may accept the Dispute Resolution Service advi-
sory unless the Secretary finds that the recommendation 
will not adequately protect the reservation. The Secretary 
shall submit the advisory and the Secretary’s final written 
determination into the record of the Commission’s pro-
ceeding. 
‘‘(b) ALTERNATIVE PRESCRIPTIONS.—(1) Whenever 
the Secretary of the Interior or the Secretary of Commerce 
prescribes a fishway under section 18, the license applicant 
or licensee may propose an alternative to such prescription 
to construct, maintain, or operate a fishway. The alter-
native may include a fishway or an alternative to a 
fishway. 
‘‘(2) Notwithstanding section 18, the Secretary of the 
Interior or the Secretary of Commerce, as appropriate, shall 
accept and prescribe, and the Commission shall require, the 
proposed alternative referred to in paragraph (1), if the 
Secretary of the appropriate department determines, based 
on substantial evidence provided by the licensee or otherwise 
available to the Secretary, that such alternative—
‘‘(A) will be no less protective of the fish re-
sources than the fishway initially prescribed by the 
Secretary; and 
‘‘(B) will either—
106
‘‘(i) cost less to implement; or 
‘‘(ii) result in improved operation of the 
project works for electricity production, 
as compared to the fishway initially deemed necessary 
by the Secretary. 
‘‘(3) The Secretary concerned shall submit into the 
public record of the Commission proceeding with any pre-
scription under section 18 or alternative prescription it ac-
cepts under this section, a written statement explaining the 
basis for such prescription, and reason for not accepting 
any alternative prescription under this section. The written 
statement must demonstrate that the Secretary gave equal 
consideration to the effects of the condition adopted and al-
ternatives not accepted on energy supply, distribution, cost, 
and use; flood control; navigation; water supply; and air 
quality (in addition to the preservation of other aspects of 
environmental quality); based on such information as may 
be available to the Secretary, including information volun-
tarily provided in a timely manner by the applicant and 
others. The Secretary shall also submit, together with the 
aforementioned written statement, all studies, data, and 
other factual information available to the Secretary and rel-
evant to the Secretary’s decision. 
‘‘(4) Nothing in this section shall prohibit other inter-
ested parties from proposing alternative prescriptions.
107
‘‘(5) If the Secretary concerned does not accept an ap-
plicant’s alternative prescription under this section, and 
the Commission finds that the Secretary’s prescription 
would be inconsistent with the purposes of this part, or 
other applicable law, the Commission may refer the dispute 
to the Commission’s Dispute Resolution Service. The Dis-
pute Resolution Service shall consult with the Secretary and 
the Commission and issue a non-binding advisory within 
90 days. The Secretary may accept the Dispute Resolution 
Service advisory unless the Secretary finds that the rec-
ommendation will not adequately protect the fish resources. 
The Secretary shall submit the advisory and the Secretary’s 
final written determination into the record of the Commis-
sion’s proceeding.’’. 
Subtitle B—Additional Hydropower 
SEC. 3201. HYDROELECTRIC PRODUCTION INCENTIVES. 
(a) INCENTIVE PAYMENTS.—For electric energy gen-
erated and sold by a qualified hydroelectric facility during 
the incentive period, the Secretary of Energy (referred to 
in this section as the ‘‘Secretary’’) shall make, subject to 
the availability of appropriations, incentive payments to 
the owner or operator of such facility. The amount of such 
payment made to any such owner or operator shall be as 
determined under subsection (e) of this section. Payments 
under this section may only be made upon receipt by the
108
Secretary of an incentive payment application which estab-
lishes that the applicant is eligible to receive such payment 
and which satisfies such other requirements as the Secretary 
deems necessary. Such application shall be in such form, 
and shall be submitted at such time, as the Secretary shall 
establish. 
(b) DEFINITIONS.—For purposes of this section: 
(1) QUALIFIED HYDROELECTRIC FACILITY.—The 
term ‘‘qualified hydroelectric facility’’ means a tur-
bine or other generating device owned or solely oper-
ated by a non-Federal entity which generates hydro-
electric energy for sale and which is added to an ex-
isting dam or conduit. 
(2) EXISTING DAM OR CONDUIT.—The term ‘‘ex-
isting dam or conduit’’ means any dam or conduit 
the construction of which was completed before the 
date of the enactment of this section and which does 
not require any construction or enlargement of im-
poundment or diversion structures (other than repair 
or reconstruction) in connection with the installation 
of a turbine or other generating device. 
(3) CONDUIT.—The term ‘‘conduit’’ has the same 
meaning as when used in section 30(a)(2) of the Fed-
eral Power Act.
109
The terms defined in this subsection shall apply without 
regard to the hydroelectric kilowatt capacity of the facility 
concerned, without regard to whether the facility uses a dam 
owned by a governmental or nongovernmental entity, and 
without regard to whether the facility begins operation on 
or after the date of the enactment of this section. 
(c) ELIGIBILITY WINDOW.—Payments may be made 
under this section only for electric energy generated from 
a qualified hydroelectric facility which begins operation 
during the period of 10 fiscal years beginning with the first 
full fiscal year occurring after the date of enactment of this 
subtitle. 
(d) INCENTIVE PERIOD.—A qualified hydroelectric fa-
cility may receive payments under this section for a period 
of 10 fiscal years (referred to in this section as the ‘‘incen-
tive period’’). Such period shall begin with the fiscal year 
in which electric energy generated from the facility is first 
eligible for such payments. 
(e) AMOUNT OF PAYMENT.—
(1) IN GENERAL.—Payments made by the Sec-
retary under this section to the owner or operator of 
a qualified hydroelectric facility shall be based on the 
number of kilowatt hours of hydroelectric energy gen-
erated by the facility during the incentive period. For 
any such facility, the amount of such payment shall
110
be 1.8 cents per kilowatt hour (adjusted as provided 
in paragraph (2)), subject to the availability of ap-
propriations under subsection (g), except that no fa-
cility may receive more than $750,000 in one cal-
endar year. 
(2) ADJUSTMENTS.—The amount of the payment 
made to any person under this section as provided in 
paragraph (1) shall be adjusted for inflation for each 
fiscal year beginning after calendar year 2003 in the 
same manner as provided in the provisions of section 
29(d)(2)(B) of the Internal Revenue Code of 1986, ex-
cept that in applying such provisions the calendar 
year 2003 shall be substituted for calendar year 1979. 
(f) SUNSET.—No payment may be made under this 
section to any qualified hydroelectric facility after the expi-
ration of the period of 20 fiscal years beginning with the 
first full fiscal year occurring after the date of enactment 
of this subtitle, and no payment may be made under this 
section to any such facility after a payment has been made 
with respect to such facility for a period of 10 fiscal years. 
(g) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to the Secretary to carry out 
the purposes of this section $10,000,000 for each of the fiscal 
years 2004 through 2013.
111
SEC. 3202. HYDROELECTRIC EFFICIENCY IMPROVEMENT. 
(a) INCENTIVE PAYMENTS.—The Secretary of Energy 
shall make incentive payments to the owners or operators 
of hydroelectric facilities at existing dams to be used to 
make capital improvements in the facilities that are di-
rectly related to improving the efficiency of such facilities 
by at least 3 percent. 
(b) LIMITATIONS.—Incentive payments under this sec-
tion shall not exceed 10 percent of the costs of the capital 
improvement concerned and not more than one payment 
may be made with respect to improvements at a single facil-
ity. No payment in excess of $750,000 may be made with 
respect to improvements at a single facility. 
(c) AUTHORIZATION.—There is authorized to be appro-
priated to carry out this section not more than $10,000,000 
for each of the fiscal years 2004 through 2013. 
SEC. 3203. SMALL HYDROELECTRIC POWER PROJECTS. 
Section 408(a)(6) of the Public Utility Regulatory 
Policies Act of 1978 is amended by striking ‘‘April 20, 
1977’’ and inserting ‘‘March 4, 2003’’. 
SEC. 3204. INCREASED HYDROELECTRIC GENERATION AT 
EXISTING FEDERAL FACILITIES. 
(a) IN GENERAL.—The Secretary of Energy, in con-
sultation with the Secretary of the Interior and Secretary 
of the Army, shall conduct studies of the cost-effective oppor-
tunities to increase hydropower generation at existing feder-
112
ally-owned or operated water regulation, storage, and con-
veyance facilities. Such studies shall be completed within 
two years after the date of enactment of this subtitle and 
transmitted to the Committee on Commerce of the House 
of Representatives and the Committee on Energy and Nat-
ural Resources of the Senate. An individual study shall be 
prepared for each of the Nation’s principal river basins. 
Each such study shall identify and describe with specificity 
the following matters: 
(1) Opportunities to improve the efficiency of hy-
dropower generation at such facilities through, but 
not limited to, mechanical, structural, or operational 
changes. 
(2) Opportunities to improve the efficiency of the 
use of water supplied or regulated by Federal projects 
where such improvement could, in the absence of legal 
or administrative constraints, make additional water 
supplies available for hydropower generation or re-
duce project energy use. 
(3) Opportunities to create additional hydro-
power generating capacity at existing facilities 
through, but not limited to, the construction of addi-
tional generating facilities, the uprating of generators 
and turbines, and the construction of pumped storage 
facilities.
113
(4) Preliminary assessment of the costs and the 
economic and environmental consequences of such 
measures. 
(b) PREVIOUS STUDIES.—If studies of the type re-
quired by subsection (a) have been prepared by any agency 
of the United States and published within the five years 
prior to the date of enactment of this subtitle, the Secretary 
of Energy may choose not to perform new studies and incor-
porate the information in such studies into the studies re-
quired by subsection (a). 
(c) AUTHORIZATION.—There is authorized to be appro-
priated such sums as may be necessary to carry out the 
purposes of this section.
TITLE IV—NUCLEAR MATTERS 
Subtitle A—Price-Anderson Act 
Amendments 
SEC. 4001. SHORT TITLE. 
This subtitle may be cited as the ‘‘Price-Anderson 
Amendments Act of 2003’’. 
SEC. 4002. EXTENSION OF INDEMNIFICATION AUTHORITY. 
(a) INDEMNIFICATION
OF
NUCLEAR
REGULATORY 
COMMISSION LICENSEES.—Section 170 c. of the Atomic En-
ergy Act of 1954 (42 U.S.C. 2210(c)) is amended—
(1) in the subsection heading, by striking ‘‘LI-
CENSES’’ and inserting ‘‘LICENSEES’’; and
114
(2) by striking ‘‘December 31, 2003’’ each place 
it appears and inserting ‘‘August 1, 2017’’. 
(b) INDEMNIFICATION OF DEPARTMENT OF ENERGY 
CONTRACTORS.—Section 170 d.(1)(A) of the Atomic Energy 
Act of 1954 (42 U.S.C. 2210(d)(1)(A)) is amended by strik-
ing ‘‘December 31, 2004’’ and inserting ‘‘August 1, 2017’’. 
(c) INDEMNIFICATION OF NONPROFIT EDUCATIONAL 
INSTITUTIONS.—Section 170 k. of the Atomic Energy Act 
of 1954 (42 U.S.C. 2210(k)) is amended by striking ‘‘August 
1, 2002’’ each place it appears and inserting ‘‘August 1, 
2017’’. 
SEC. 4003. MAXIMUM ASSESSMENT. 
Section 170 of the Atomic Energy Act of 1954 (42 
U.S.C. 2210) is amended—
(1) in subsection b.(1), in the second proviso of 
the third sentence—
(A) by striking ‘‘$63,000,000’’ and inserting 
‘‘$94,000,000’’; 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.—
(A) by inserting ‘‘total and annual’’ after 
‘‘amount of the maximum’’;
115
(B) by striking ‘‘the date of the enactment 
of the Price-Anderson Amendments Act of 1988’’ 
and inserting ‘‘July 1, 2002’’; and 
(C) by striking ‘‘such date of enactment’’ 
and inserting ‘‘July 1, 2002’’. 
SEC. 4004. DEPARTMENT OF ENERGY LIABILITY LIMIT. 
(a) INDEMNIFICATION OF DEPARTMENT OF ENERGY 
CONTRACTORS.—Section 170 d. of the Atomic Energy Act 
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 the 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 persons 
indemnified in connection with the contract and for 
each nuclear incident, including such legal costs of the 
contractor as are approved by the Secretary.’’.
116
(b) CONTRACT AMENDMENTS.—Section 170 d. of the 
Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is 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 section shall 
be deemed to be amended, on the date of enactment of the 
Price-Anderson Amendments Act of 2003, to reflect the 
amount of indemnity for public liability and any applica-
ble 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 ‘‘paragraph 
(2) of subsection d.’’. 
SEC. 4005. 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’’.
117
(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. 4006. 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 ‘‘August 1, 2013’’. 
SEC. 4007. 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 adding after paragraph (1) the following:
‘‘(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, 2002, in accordance with the aggre-
gate percentage change in the Consumer Price Index 
since—
‘‘(A) that date, in the case of the first adjustment 
under this paragraph; or 
‘‘(B) the previous adjustment under this para-
graph.’’.
118
SEC. 4008. PRICE-ANDERSON TREATMENT OF MODULAR RE-
ACTORS. 
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 new paragraph: 
‘‘(5)(A) For purposes of this section only, the Commis-
sion shall consider a combination of facilities described in 
subparagraph (B) to be a single facility having a rated ca-
pacity of 100,000 electrical kilowatts or more. 
‘‘(B) A combination of facilities referred to in subpara-
graph (A) is 2 or more facilities located at a single site, 
each of which has a rated capacity of 100,000 electrical kilo-
watts or more but not more than 300,000 electrical kilo-
watts, with a combined rated capacity of not more than 
1,300,000 electrical kilowatts.’’. 
SEC. 4009. APPLICABILITY. 
The amendments made by sections 4003, 4004, and 
4005 do not apply to a nuclear incident that occurs before 
the date of enactment of this Act.
SEC. 4010. PROHIBITION ON ASSUMPTION BY UNITED 
STATES GOVERNMENT OF LIABILITY FOR 
CERTAIN FOREIGN ACCIDENTS. 
Section 170 of the Atomic Energy Act of 1954 (42 
U.S.C. 2210) is amended by adding at the end the following 
new subsection:
119
‘‘u. PROHIBITION ON ASSUMPTION OF LIABILITY FOR 
CERTAIN FOREIGN ACCIDENTS.—Notwithstanding this sec-
tion or any other provision of law, no officer of the United 
States or of any department, agency, or instrumentality of 
the United States Government may enter into any contract 
or other arrangement, or into any amendment or modifica-
tion of a contract or other arrangement, the purpose or ef-
fect of which would be to directly or indirectly impose li-
ability on the United States Government, or any depart-
ment, agency, or instrumentality of the United States Gov-
ernment, or to otherwise directly or indirectly require an 
indemnity by the United States Government, for nuclear 
accidents occurring in connection with the design, construc-
tion, or operation of a production facility or utilization fa-
cility in any country whose government has been identified 
by the Secretary of State as engaged in state sponsorship 
of terrorist activities (specifically including 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, section 6(j)(1) of the 
Export Administration Act of 1979, or section 40(d) of the 
Arms Export Control Act to have repeatedly provided sup-
port for acts of international terrorism).’’.
120
SEC. 4011. 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 adding 
at the end the following new section: 
‘‘SEC. 170C. SECURE TRANSFER OF NUCLEAR MATE-
RIALS.—
‘‘a. The Nuclear Regulatory Commission shall establish 
a system to ensure that, with respect to activities by any 
party pursuant to a license issued under this Act—
‘‘(1) materials described in subsection b., when 
transferred or received in the United States—
‘‘(A) from a facility licensed by the Nuclear 
Regulatory Commission; 
‘‘(B) from a facility licensed by an agree-
ment State; or 
‘‘(C) from a country with whom the United 
States has an agreement for cooperation under 
section 123, 
are accompanied by a manifest describing the type 
and amount of materials being transferred; 
‘‘(2) each individual transferring or accom-
panying the transfer of such materials has been sub-
ject to a security background check by appropriate 
Federal entities; and 
‘‘(3) such materials are not transferred to or re-
ceived at a destination other than a facility licensed
121
by the Nuclear Regulatory Commission or an agree-
ment State under this Act or other appropriate Fed-
eral facility, or a destination outside the United 
States in a country with whom the United States has 
an agreement for cooperation under section 123. 
‘‘b. Except as otherwise provided by the Commission 
by regulation, the materials referred to in subsection a. are 
byproduct materials, source materials, special nuclear ma-
terials, 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 Regulatory 
Commission shall issue regulations identifying radioactive 
materials that, consistent with the protection of public 
health and safety and the common defense and security, are 
appropriate exceptions 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 sub-
section (a) shall take effect upon the issuance of regulations 
under subsection (b).
122
(d) EFFECT ON OTHER LAW.—Nothing in this section 
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. 4012. NUCLEAR FACILITY THREATS. 
(a) STUDY.—The President, in consultation with the 
Nuclear Regulatory Commission and other appropriate 
Federal, State, and local agencies and private entities, shall 
conduct 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 Nuclear Regulatory Commission 
under the Atomic Energy Act of 1954. Such study shall take 
into account, but not be limited to—
(1) the events of September 11, 2001; 
(2) an assessment of physical, cyber, biochemical, 
and other terrorist threats; 
(3) the potential for attack on facilities by mul-
tiple coordinated teams of a large number of individ-
uals;
123
(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; and 
(10) the potential for attacks on spent fuel ship-
ments by multiple coordinated teams of a large num-
ber of individuals. 
(b) SUMMARY
AND CLASSIFICATION REPORT.—Not 
later than 180 days after the date of the enactment of this 
Act, the President shall transmit to the Congress and the 
Nuclear Regulatory 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
124
by an enemy of the United States, whether a for-
eign government or other person, or otherwise 
falling under the responsibilities of the Federal 
Government; or 
(B) involving the type of risks that Nuclear 
Regulatory Commission licensees should be re-
sponsible 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 the Congress 
a report on actions taken, or to be taken, to address the 
types of threats identified under subsection (b)(2)(A). Such 
report may include a classified annex as appropriate. 
(d) REGULATIONS.—Not later than 270 days after the 
date on which a report is transmitted under subsection (b), 
the Nuclear Regulatory Commission shall issue regulations, 
including changes to the design basis threat, to ensure that 
licensees address the threats identified under subsection 
(b)(2)(B). 
(e) PHYSICAL SECURITY PROGRAM.—The Nuclear 
Regulatory Commission shall establish an operational safe-
guards response evaluation program that ensures that the 
physical protection capability and operational safeguards 
response for sensitive nuclear facilities, as determined by 
the Commission consistent with the protection of public
125
health and the common defense and security, shall be tested 
periodically through Commission approved or designed, ob-
served, and evaluated force-on-force exercises to determine 
whether the ability to defeat the design basis threat is being 
maintained. For purposes of this subsection, the term ‘‘sen-
sitive nuclear facilities’’ includes at a minimum commer-
cial nuclear power plants, including associated spent fuel 
storage facilities, spent fuel storage pools and dry cask stor-
age at closed reactors, independent spent fuel storage facili-
ties and geologic repository operations areas, category I fuel 
cycle facilities, and gaseous diffusion plants. 
(f) CONTROL OF INFORMATION.—In carrying out this 
section, the President and the Nuclear Regulatory Commis-
sion shall control the dissemination of restricted data, safe-
guards information, and other classified national security 
information in a manner so as to ensure the common de-
fense and security, consistent with chapter 12 of the Atomic 
Energy Act of 1954. 
SEC. 4013. UNREASONABLE RISK CONSULTATION. 
Section 170 of the Atomic Energy Act of 1954 (42 
U.S.C. 2210) is amended by adding at the end the following 
new subsection: 
‘‘v. UNREASONABLE RISK CONSULTATION.—(1) Before 
entering into an agreement of indemnification under this 
section with respect to a utilization facility, the Nuclear
126
Regulatory Commission shall consult with the Assistant to 
the President for Homeland Security (or any successor offi-
cial) concerning whether the location of the proposed facil-
ity and the design of that type of facility ensure that the 
facility provides for adequate protection of public health 
and safety if subject to a terrorist attack. 
‘‘(2) Before issuing a license or a license renewal for 
a sensitive nuclear facility, the Nuclear Regulatory Com-
mission shall consult with the Secretary of Homeland Secu-
rity or his designee concerning the emergency evacuation 
plan for the communities living near the sensitive nuclear 
facility. For purposes of this paragraph, the term ‘sensitive 
nuclear facility’ has the meaning given that term in section 
4012 of the Energy Policy Act of 2003.’’. 
SEC. 4014. FINANCIAL ACCOUNTABILITY. 
(a) AMENDMENT.—Section 170 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2210) is amended by adding at the 
end the following new subsection: 
‘‘w. 
FINANCIAL
ACCOUNTABILITY.—(1) 
Notwith-
standing subsection d., the Attorney General may bring an 
action in the appropriate United States district court to 
recover from a contractor of the Secretary (or subcontractor 
or supplier of such contractor) amounts paid by the Federal 
Government under an agreement of indemnification under 
subsection d. for public liability resulting from conduct
127
which constitutes intentional misconduct of any corporate 
officer, manager, or superintendent of such contractor (or 
subcontractor or supplier of such contractor). 
‘‘(2) The Attorney General may recover under para-
graph (1) an amount not to exceed the amount of the profit 
derived by the defendant from the contract. 
‘‘(3) No amount recovered from any contractor (or sub-
contractor or supplier of such contractor) under paragraph 
(1) may be reimbursed directly or indirectly by the Depart-
ment of Energy. 
‘‘(4) Paragraph (1) shall not apply to any nonprofit 
entity conducting activities under contract for the Sec-
retary. 
‘‘(5) No waiver of a defense required under this section 
shall prevent a defendant from asserting such defense in an 
action brought under this subsection. 
‘‘(6) The Secretary shall, by rule, define the terms 
‘profit’ and ‘nonprofit entity’ for purposes of this sub-
section. Such rulemaking shall be completed not later than 
180 days after the date of the enactment of this subsection.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall not apply to any agreement of indemnification 
entered into under section 170 d. of the Atomic Energy Act 
of 1954 (42 U.S.C. 2210(d)) before the date of the enactment 
of this Act.
128
SEC. 4015. 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 NONPROFIT INSTITUTIONS.—Sub-
section d. of section 234A of the Atomic Energy Act of 1954 
(42 U.S.C. 2282a(d)) is amended to read as follows: 
‘‘d. Notwithstanding subsection a., a civil penalty for 
a violation under subsection a. shall not exceed the amount 
of any discretionary fee paid under the contract under 
which such violation occurs for any nonprofit contractor, 
subcontractor, or supplier—
‘‘(1) described in section 501(c)(3) of the Inter-
nal Revenue Code of 1986 and exempt from tax under 
section 501(a) of such Code; or 
‘‘(2) identified by the Secretary by rule as ap-
propriate to be treated the same under this subsection 
as an entity described in paragraph (1), consistent 
with the purposes of this section.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall not apply to any violation of the Atomic En-
ergy Act of 1954 occurring under a contract entered into 
before the date of the enactment of this Act. 
(d) RULEMAKING.—Not later than 6 months after the 
date of the enactment of this Act, the Secretary of Energy
129
shall issue a rule for the implementation of the amendment 
made by subsection (b). 
Subtitle B—Miscellaneous Matters 
SEC. 4021. LICENSES. 
Section 103 c. of the Atomic Energy Act of 1954 (42 
U.S.C. 2133(c)) is amended by inserting ‘‘from the author-
ization to commence operations’’ after ‘‘forty years’’. 
SEC. 4022. NUCLEAR REGULATORY COMMISSION MEETINGS. 
If a quorum of the Nuclear Regulatory Commission 
gathers to discuss official Commission business the discus-
sions shall be recorded, and the Commission shall notify the 
public of such discussions within 15 days after they occur. 
The Commission shall promptly make a transcript of the 
recording available to the public on request, except to the 
extent that public disclosure is exempted or prohibited by 
law. This section shall not apply to a meeting, within the 
meaning of that term under section 552b(a)(2) of title 5, 
United States Code. 
SEC. 4023. 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 engineering 
fields, in accordance with the statutory authorities of the 
Commission relating to the civilian nuclear energy pro-
gram, the Nuclear Regulatory Commission shall carry out
130
a training and fellowship program to address shortages of 
individuals with critical nuclear safety regulatory skills. 
(b) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There are authorized to be ap-
propriated to carry out this section $1,000,000 for 
each of fiscal years 2004 through 2007. 
(2) AVAILABILITY.—Funds made available under 
paragraph (1) shall remain available until expended. 
SEC. 4024. 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 fol-
lows through ‘‘1702’’ and inserting ‘‘to the Commis-
sion for, or is issued by the Commission, a license or 
certificate’’; 
(2) by striking ‘‘483a’’ and inserting ‘‘9701’’; 
and 
(3) by striking ‘‘, of applicants for, or holders of, 
such licenses or certificates’’. 
SEC. 4025. 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 following: 
‘‘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
131
who is hired by the Commission as a consultant, if 
the Commission finds that the annuitant has a skill 
that is critical to the performance of the duties of the 
Commission.’’. 
SEC. 4026. CARRYING OF FIREARMS BY LICENSEE EMPLOY-
EES. 
Section 161 k. of the Atomic Energy Act of 1954 (42 
U.S.C. 2201(k)) is amended to read as follows: 
‘‘k. authorize such of its members, officers, and 
employees as it deems necessary in the interest of the 
common defense and security to carry firearms while 
in the discharge of their official duties. The Commis-
sion may also authorize—
‘‘(1) such of those employees of its contrac-
tors and subcontractors (at any tier) engaged in 
the protection of property under the jurisdiction 
of the United States located at facilities owned 
by or contracted to the United States or being 
transported to or from such facilities as it deems 
necessary in the interests of the common defense 
and security; and 
‘‘(2) such of those employees of persons li-
censed or certified by the Commission (including 
employees of contractors of licensees or certificate 
holders) engaged in the protection of property of
132
(A) facilities owned or operated by a Commis-
sion licensee or certificate holder that are des-
ignated by the Commission, or (B) property of 
significance to the common defense and security 
located at facilities owned or operated by a Com-
mission licensee or certificate holder or being 
transported to or from such facilities; 
to carry firearms while in the discharge of their offi-
cial duties. A person authorized to carry firearms 
under this subsection may, while in the performance 
of, and in connection with, official duties, make ar-
rests without warrant for any offense against the 
United States committed in that person’s presence or 
for any felony cognizable under the laws of the United 
States if that person has reasonable grounds to believe 
that the individual to be arrested has committed or 
is committing such felony. An employee of a con-
tractor or subcontractor or of a Commission licensee 
or certificate holder (or a contractor of a licensee or 
certificate holder) authorized to carry firearms under 
this subsection may make such arrests only when the 
individual to be arrested is within, or in direct flight 
from, the area of such offense. A person granted au-
thority to make arrests by this subsection may exer-
cise that authority only in the enforcement of laws re-
133
garding the property of the United States in the cus-
tody of the Department of Energy, the Nuclear Regu-
latory Commission, or a contractor of the Department 
of Energy or Nuclear Regulatory Commission or of a 
licensee or certificate holder of the Commission, laws 
applicable to facilities owned or operated by a Com-
mission licensee or certificate holder that are des-
ignated by the Commission pursuant to this sub-
section and property of significance to the common 
defense and security that is in the custody of a li-
censee or certificate holder or a contractor of a li-
censee or certificate holder of the Commission, or any 
provision of this Act that may subject an offender to 
a fine, imprisonment, or both. The arrest authority 
conferred by this subsection is in addition to any ar-
rest authority under other laws. The Secretary and 
the Commission, with the approval of the Attorney 
General, shall issue guidelines to implement this sub-
section;’’. 
SEC. 4027. UNAUTHORIZED INTRODUCTION OF DANGEROUS 
WEAPONS. 
Section 229 a. of the Atomic Energy Act of 1954 (42 
U.S.C. 2278a(a)) is amended by adding after ‘‘custody of 
the Commission’’ the following: ‘‘or subject to its licensing
134
authority or to certification by the Commission under this 
Act or any other Act’’. 
SEC. 4028. SABOTAGE OF NUCLEAR FACILITIES OR FUEL. 
Section 236 a. of the Atomic Energy Act of 1954 (42 
U.S.C. 2284(a)) is amended to read as follows: 
‘‘a. Any person who intentionally and willfully de-
stroys or causes physical damage to, or who intentionally 
and willfully attempts to destroy or cause physical damage 
to—
‘‘(1) any production facility or utilization facil-
ity licensed under this Act; 
‘‘(2) any nuclear waste storage, treatment, or 
disposal facility licensed under this Act; 
‘‘(3) any nuclear fuel for a utilization facility li-
censed under this Act or any spent nuclear fuel from 
such a facility; 
‘‘(4) any uranium enrichment or nuclear fuel 
fabrication facility licensed or certified by the Nuclear 
Regulatory Commission; or 
‘‘(5) any production, utilization, waste storage, 
waste treatment, waste disposal, uranium enrichment, 
or nuclear fuel fabrication facility subject to licensing 
or certification under this Act during its construction 
where the destruction or damage caused or attempted
135
to be caused could affect public health and safety dur-
ing the operation of the facility, 
shall be fined not more than $1,000,000 or imprisoned for 
up to life in prison without parole, or both.’’. 
SEC. 4029. 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 Energy 
$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 demonstra-
tion projects with domestic uranium producers relat-
ing to—
(A) enhanced production with minimal en-
vironmental impacts; 
(B) restoration of well fields; and
136
(C) decommissioning and decontamination 
activities. 
(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 Energy 
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, 
in Colorado, Nebraska, Texas, Utah, or Wyoming. 
SEC. 4030. URANIUM SALES. 
(a) RESTRICTIONS
ON INVENTORY SALES.—Section 
3112(d) of the USEC Privatization Act (42 U.S.C. 2297h–
10(d)) is amended to read as follows: 
‘‘(d) INVENTORY SALES.—(1) In addition to the trans-
fers and sales authorized under subsections (b), (c), and (e), 
the Secretary of Energy or the Secretary of the Army may 
transfer or sell uranium subject to paragraph (2). 
‘‘(2) Except as provided in subsections (b), (c), and 
(e), no sale or transfer of uranium shall be made under 
this subsection by the Secretary of Energy or the Secretary 
of the Army unless—
‘‘(A) the President determines that the material 
is not necessary for national security needs;
137
‘‘(B) the price paid to the appropriate Secretary, 
if the transaction is a sale, will not be less that the 
fair market value of the material; and 
‘‘(C) the sale or transfer to end users is made 
pursuant to a contract of at least 3 years duration. 
‘‘(3) The Secretary of Energy shall not make any 
transfer or sale of uranium under this subsection that would 
cause the total amount of uranium transferred or sold pur-
suant to this subsection that is delivered for consumption 
by end users to exceed—
‘‘(A) 3 million pounds of U3O8 equivalent in fis-
cal year 2004, 2005, 2006, 2007, 2008, or 2009; 
‘‘(B) 5 million pounds of U3O8 equivalent in fis-
cal year 2010 or 2011; 
‘‘(C) 7 million pounds of U3O8 equivalent in fis-
cal year 2012; and 
‘‘(D) 10 million pounds of U3O8 equivalent in 
fiscal year 2013 or any fiscal year thereafter. 
‘‘(4) For the purposes of this subsection, the recovery 
of uranium from uranium bearing materials transferred or 
sold by the Secretary of Energy or the Secretary of the 
Army to the domestic uranium industry shall be the pre-
ferred method of making uranium available. The recovered 
uranium shall be counted against the annual maximum de-
138
liveries set for in this section, when such uranium is sold 
to end users.’’. 
(b) TRANSFERS TO CORPORATION.—Section 3112 of 
the USEC Privatization Act (42 U.S.C. 2297h–10) is fur-
ther amended by adding at the end the following new sub-
section: 
‘‘(g) TRANSFERS TO CORPORATION.—Notwithstanding 
subsection (b)(2) and subsection (d)(2), the Secretary may 
transfer up to 9,550 metric tons of uranium to the Corpora-
tion to replace uranium that the Secretary transferred to 
the Corporation on or about June 30, 1993, April 20, 1998, 
and May 18, 1998, and that does not meet commercial spec-
ifications.’’. 
(c) SERVICES.—Section 3112 of the USEC Privatiza-
tion Act (42 U.S.C. 2297h–10) is further amended by add-
ing at the end the following new subsection: 
‘‘(h) SERVICES.—(1) Notwithstanding any other pro-
vision of this section, if the Secretary determines that if 
the Corporation has failed, or may fail, to perform any obli-
gation 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 the Com-
mittee on Energy and Commerce of the House of Represent-
atives and the Committee on Energy and Natural Resources
139
of the Senate, in such a manner that affords the Committees 
an opportunity to comment, prior to a determination by 
the Secretary whether termination, waiver, or modification 
of the Agreement is required. The Secretary is authorized 
to take such action as he determines necessary under the 
Agreement to terminate, waive, or modify provisions of the 
Agreement to achieve its purposes. 
‘‘(2) Notwithstanding any other provision of this sec-
tion, if the Secretary determines in accordance with Article 
2D of the Agreement between the Department of Energy and 
the Corporation dated June 17, 2002, and as amended 
thereafter, to transition operation of the Paducah gaseous 
diffusion plant, the Secretary may provide uranium enrich-
ment services in a manner consistent with Article 2D of 
such Agreement.’’. 
(d) REPORT.—Within 3 years after the date of enact-
ment of this Act, the Secretary shall report to the Congress 
on the implementation of this section. The report shall in-
clude a discussion of available excess uranium inventories, 
all sales or transfers made by the Secretary of Energy or 
the Secretary of the Army, the impact of such sales or trans-
fers on the domestic uranium industry, the spot market ura-
nium price, and the national security interests of the 
United States, and any steps taken to remediate any ad-
verse impacts of such sales or transfers.
140
SEC. 4031. MEDICAL ISOTOPE PRODUCTION. 
Section 134 of the Atomic Energy Act of 1954 (42 
U.S.C. 2160d) is amended—
(1) by redesignating subsection b. as subsection 
f.; 
(2) by inserting after subsection a. the following: 
‘‘b. 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 Re-
cipient Country of highly enriched uranium for medical 
isotope production if, in addition to any other requirements 
of this Act, the Commission determines that—
‘‘(1) a Recipient Country that supplies an assur-
ance letter to the United States Government in con-
nection with the Commission’s consideration of the 
export license application has informed the United 
States Government that any intermediate consignees 
and the ultimate consignee specified in the applica-
tion are required to use such highly enriched uranium 
solely to produce medical isotopes; and 
‘‘(2) the highly enriched uranium for medical 
isotope production will be irradiated only in a reac-
tor in a Recipient Country that—
‘‘(A) uses an alternative nuclear reactor 
fuel; or
141
‘‘(B) is the subject of an agreement with the 
United States Government to convert to an alter-
native nuclear reactor fuel when such fuel can be 
used in that reactor. 
‘‘c. Applications to the Commission for licenses author-
izing the export to a Recipient Country of highly enriched 
uranium for medical isotope production shall be subject to 
subsection b., and subsection a. shall not be applicable to 
such exports. 
‘‘d. The Commission is authorized to specify, by rule-
making or decision in connection with an export license ap-
plication, that a country other than a Recipient Country 
may receive exports of highly enriched uranium for medical 
isotope production in accordance with the same criteria es-
tablished by subsection b. for exports to a Recipient Coun-
try, upon the Commission’s finding that such additional 
country is a party to the Treaty on the Nonproliferation 
of Nuclear Weapons and the Convention on the Physical 
Protection of Nuclear Material and will receive such highly 
enriched uranium pursuant to an agreement with the 
United States concerning peaceful uses of nuclear energy. 
‘‘e. The Commission shall review the adequacy of phys-
ical protection requirements that are currently applicable 
to the transportation of highly enriched uranium for med-
ical isotope production. If it determines that additional
142
physical protection measures are necessary, including any 
limits that the Commission finds are necessary on the quan-
tity of highly enriched uranium contained in a single ship-
ment for medical isotope production, the Commission shall 
impose such requirements, as license conditions or through 
other appropriate means.’’; and 
(3) in subsection f., as so redesignated by para-
graph (1) of this section—
(A) by striking ‘‘and’’ at the end of para-
graph (2); 
(B) by striking the period at the end of 
paragraph (3)(B) and inserting a semicolon; and 
(C) by adding at the end the following: 
‘‘(4) the term ‘medical isotopes’ means radio-
active isotopes, including Molybdenum 99, Iodine 
131, and Xenon 133, that are used to produce radio-
pharmaceuticals for diagnostic or therapeutic proce-
dures on patients, or in connection with research and 
development of radiopharmaceuticals; 
‘‘(5) the term ‘highly enriched uranium for med-
ical isotope production’ means highly enriched ura-
nium contained in, or for use in, targets to be irradi-
ated for the sole purpose of producing medical iso-
topes;
143
‘‘(6) the term ‘radiopharmaceuticals’ means ra-
dioactive isotopes containing byproduct material com-
bined with chemical or biological material that are 
designed to accumulate temporarily in a part of the 
body, for therapeutic purposes or for enabling the pro-
duction of a useful image of the appropriate body 
organ or function for use in diagnosis of medical con-
ditions; and 
‘‘(7) the term ‘Recipient Country’ means Can-
ada, Belgium, France, Germany, and the Nether-
lands.’’.
SEC. 
4032. 
HIGHLY 
ENRICHED 
URANIUM 
DIVERSION 
THREAT REPORT. 
Section 307 of the Energy Reorganization Act of 1974 
(42 U.S.C. 5877) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(d) Not later than 6 months after the date of the en-
actment of this Act, the Secretary of Energy shall transmit 
to the Congress a report with recommendations on reducing 
the threat resulting from the theft or diversion of highly en-
riched uranium. Such report shall address—
‘‘(1) monitoring of highly enriched uranium sup-
plies at any commercial companies who have access 
to substantial amounts of highly enriched uranium;
144
‘‘(2) assistance to companies described in para-
graph (1) with security and personnel checks; 
‘‘(3) acceleration of the process of blending down 
excess highly enriched uranium into low-enriched 
uranium; 
‘‘(4) purchasing highly enriched uranium (except 
for production of medical isotopes); 
‘‘(5) paying the cost of shipping highly enriched 
uranium; 
‘‘(6) accelerating the conversion of commercial 
research reactors and energy reactors to the use of 
low-enriched uranium fuel where they now use highly 
enriched uranium fuel; and 
‘‘(7) minimizing, and encouraging transparency 
in, the further enrichment of low-enriched uranium to 
highly enriched uranium.’’. 
SEC. 4033. 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) by striking ‘‘and’’ at the end of subpara-
graph (C); 
(2) in subparagraph (D), by striking ‘‘that is in-
demnified’’ and all that follows through ‘‘12344.’’ and 
inserting ‘‘or the Commission; and’’; and
145
(3) by adding at the end the following new sub-
paragraph: 
‘‘(E) the Department of Energy and the Com-
mission.’’. 
(b) DE NOVO REVIEW.—Subsection (b) of such section 
211 is amended by adding at the end the following new 
paragraph: 
‘‘(4) If the Secretary has not issued a final decision 
within 180 days after the filing of a complaint under para-
graph (1), and there is no showing that such delay is due 
to the bad faith of the claimant, the claimant may bring 
an action at law or equity for de novo review in the appro-
priate district court of the United States, which shall have 
jurisdiction over such an action without regard to the 
amount in controversy.’’. 
TITLE V—VEHICLES AND FUELS 
Subtitle A—Energy Policy Act 
Amendments 
SEC. 5011. CREDIT FOR SUBSTANTIAL CONTRIBUTION TO-
WARD NONCOVERED FLEETS. 
Section 508 of the Energy Policy Act of 1992 (42 
U.S.C. 13258) is amended by adding at the end the fol-
lowing new subsection:
146
‘‘(e) CREDIT FOR SUBSTANTIAL CONTRIBUTION TO-
WARD USE
OF DEDICATED VEHICLES
IN NONCOVERED 
FLEETS.—
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) MEDIUM OR HEAVY DUTY VEHICLE.—
The term ‘medium or heavy duty vehicle’ means 
a dedicated vehicle that—
‘‘(i) in the case of a medium duty vehi-
cle, has a gross vehicle weight rating of 
more than 8,500 pounds but not more than 
14,000 pounds; or 
‘‘(ii) in the case of a heavy duty vehi-
cle, has a gross vehicle weight rating of 
more than 14,000 pounds. 
‘‘(B) SUBSTANTIAL
CONTRIBUTION.—The 
term ‘substantial contribution’ means not less 
than $15,000 in cash or in kind services, as de-
termined by the Secretary. 
‘‘(2) ALLOCATION OF CREDITS.—The Secretary 
shall allocate a credit to a fleet or covered person 
under this section if the fleet or person makes a sub-
stantial contribution toward the acquisition and use 
of dedicated vehicles or neighborhood electric vehicles 
by a person that owns, operates, leases, or otherwise 
controls a fleet that is not covered by this title.
147
‘‘(3) MULTIPLE
CREDITS
FOR
MEDIUM
AND 
HEAVY DUTY VEHICLES.—The Secretary shall issue 2 
full credits to a fleet or covered person under this sec-
tion if the fleet or person makes a substantial con-
tribution toward the acquisition and use of a medium 
or heavy duty vehicle. 
‘‘(4) USE OF CREDITS.—At the request of a fleet 
or covered person allocated a credit under this sub-
section, the Secretary shall, for the year in which the 
acquisition of the dedicated vehicle or neighborhood 
electric vehicle is made, treat that credit as the acqui-
sition of 1 alternative fueled vehicle that the fleet or 
covered person is required to acquire under this title. 
‘‘(5) LIMITATION.—Except as provided in para-
graph (3), no more than 1 credit shall be allocated 
under this subsection for each vehicle.’’. 
SEC. 5012. CREDIT FOR ALTERNATIVE FUEL INFRASTRUC-
TURE. 
Section 508 of the Energy Policy Act of 1992 (42 
U.S.C. 13258), as amended by this Act, is further amended 
by adding at the end the following new subsection: 
‘‘(f) CREDIT FOR INVESTMENT IN ALTERNATIVE FUEL 
INFRASTRUCTURE.—
‘‘(1) DEFINITION.—In this subsection, the term 
‘qualifying infrastructure’ means—
148
‘‘(A) equipment required to refuel or re-
charge alternative fueled vehicles; 
‘‘(B) facilities or equipment required to 
maintain, repair, or operate alternative fueled 
vehicles; 
‘‘(C) training programs, educational mate-
rials, or other activities necessary to provide in-
formation regarding the operation, maintenance, 
or benefits associated with alternative fueled ve-
hicles; and 
‘‘(D) such other activities the Secretary con-
siders to constitute an appropriate expenditure 
in support of the operation, maintenance, or fur-
ther widespread adoption of or utilization of al-
ternative fueled vehicles. 
‘‘(2) ALLOCATION OF CREDITS.—The Secretary 
shall allocate a credit to a fleet or covered person 
under this section for investment in qualifying infra-
structure if the qualifying infrastructure is open to 
the general public during regular business hours. 
‘‘(3) AMOUNT.—For the purposes of credits 
under this subsection—
‘‘(A) 1 credit shall be equal to a minimum 
investment of $25,000 in cash or in kind serv-
ices, as determined by the Secretary; and
149
‘‘(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 sub-
section, the Secretary shall, for the year in which the 
investment is made, treat that credit as the acquisi-
tion of 1 alternative fueled vehicle that the fleet or 
covered person is required to acquire under this 
title.’’. 
SEC. 5013. ALTERNATIVE FUELED VEHICLE REPORT. 
(a) DEFINITIONS.—In this section: 
(1) ALTERNATIVE FUEL.—The term ‘‘alternative 
fuel’’ has the meaning given the term in section 301 
of the Energy Policy Act of 1992 (42 U.S.C. 13211). 
(2) ALTERNATIVE FUELED VEHICLE.—The term 
‘‘alternative fueled vehicle’’ has the meaning given the 
term in section 301 of the Energy Policy Act of 1992 
(42 U.S.C. 13211). 
(3) LIGHT
DUTY
MOTOR
VEHICLE.—The term 
‘‘light duty motor vehicle’’ has the meaning given the 
term in section 301 of the Energy Policy Act of 1992 
(42 U.S.C. 13211). 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy.
150
(b) REPORT.—Not later than 1 year after the date of 
enactment of this Act, the Secretary shall submit to Con-
gress a report on the effect that titles III, IV, and V of the 
Energy Policy Act of 1992 have had on the development 
of alternative fueled vehicle technology, the availability of 
alternative fueled vehicles in the market, the cost of light 
duty motor vehicles that are alternative fueled vehicles, and 
the availability, cost, and use of alternative fuels and bio-
diesel. Such report shall include any recommendations of 
the Secretary for legislation concerning the alternative 
fueled vehicle requirements under the Energy Policy Act of 
1992, and shall examine, discuss, and determine the fol-
lowing: 
(1) The number of alternative fueled vehicles ac-
quired by fleets or covered persons required to acquire 
alternative fueled vehicles. 
(2) The extent to which fleets subject to alter-
native fueled vehicle acquisition requirements have 
met those requirements through the use of fuel mix-
tures that contain at least 20 percent biodiesel pursu-
ant to section 312 of the Energy Policy Act of 1992 
(42 U.S.C. 13220). 
(3) The amount of alternative fuel used in alter-
native fueled vehicles acquired by fleets required to ac-
151
quire alternative fueled vehicles under the Energy 
Policy Act of 1992. 
(4) The amount of petroleum displaced by the 
use of alternative fueled vehicles acquired by fleets or 
covered persons. 
(5) The cost of compliance with vehicle acquisi-
tion requirements under the Energy Policy Act of 
1992, and the benefits of using such fuel and vehicles. 
(6) Projections of the amount of biodiesel, the 
number of alternative fueled vehicles, and the amount 
of alternative fuel that will be used over the next dec-
ade by fleets required to acquire alternative fueled ve-
hicles under the Energy Policy Act of 1992. 
(7) The existence of any obstacles to increased 
use of alternative fuel and biodiesel in vehicles ac-
quired or maintained by fleets required to acquire al-
ternative fueled vehicles under the Energy Policy Act 
of 1992, and the benefits of using such fuel and vehi-
cles. 
SEC. 5014. ALLOCATION OF INCREMENTAL COSTS. 
Section 303(c) of the Energy Policy Act of 1992 (42 
U.S.C. 13212(c)) is amended by striking ‘‘may’’ and insert-
ing ‘‘shall’’.
152
Subtitle B—FreedomCAR and 
Hydrogen Fuel Program 
SEC. 5021. SHORT TITLE. 
This subtitle may be cited as the ‘‘FreedomCAR and 
Hydrogen Fuel Act of 2003’’ or ‘‘Freedom Act’’. 
SEC. 5022. FINDINGS, PURPOSE, AND DEFINITIONS. 
(a) FINDINGS.—Congress finds that—
(1) the United States is currently dependent on 
foreign sources for a majority of its petroleum supply; 
(2) the Nation’s dependence on foreign petroleum 
is expected to increase in the decades ahead; 
(3) it is in the national interest to reduce de-
pendence on imported petroleum by accelerating Fed-
eral efforts to partner with the private sector by de-
ploying hydrogen fuel cell vehicles and the refueling 
infrastructure to support those vehicles; 
(4) it is in the national interest to develop a 
light duty vehicle fleet that substantially reduces de-
pendence on foreign petroleum, assists the Nation in 
meeting its requirements under the Clean Air Act and 
reduces greenhouse gas emissions in a manner that 
maintains the freedom of consumers to purchase the 
kinds of vehicles they wish to drive and the freedom 
to refuel those vehicles safely, affordably, and conven-
iently;
153
(5) hydrogen fuel cell vehicles and supporting in-
frastructure have the potential to accelerate the par-
allel advancement of fuel cells for stationary power 
that will enhance the resiliency, reliability, and envi-
ronmental performance of the Nation’s electricity in-
frastructure; 
(6) ancillary benefits for the Nation, including 
the acceleration of fuel cell technology for consumer 
electronics and portable power, are likely to result 
from the advancement of hydrogen fuel cell vehicles 
and supporting infrastructure; 
(7) there is a need for deployment of bridging 
technologies including gasoline electric and diesel elec-
tric hybrid drive systems, advanced combustion en-
gines including clean diesel, electric battery, and 
power electronics, and alternative fuels and other 
technology that can contribute to reducing petroleum 
demand and decreasing air emissions; 
(8) low-cost hydrogen production, storage, and 
delivery facilities are essential to the success of the 
FreedomCAR Vehicle Programs; and 
(9) work should be performed in a manner that 
is cognizant of consumer acceptance, passenger safety, 
and marketplace success.
154
(b) PURPOSE.—The purpose of this subtitle is to reduce 
significantly the Nation’s dependence on imported petro-
leum, enhance the production and conservation of energy, 
and reduce air emissions through support of the following 
Department of Energy actions: 
(1) Programs and activities leading to—
(A) a commitment by automakers and hy-
drogen energy and energy infrastructure pro-
viders no later than year 2015 to offer safe, af-
fordable, and technically viable hydrogen fuel cell 
vehicles and refueling infrastructure in the mass 
consumer market; and 
(B) a commitment by the automakers and 
hydrogen energy and energy infrastructure pro-
viders to the deployment of hydrogen fuel cell ve-
hicles and affordable and convenient refueling 
infrastructure no later than year 2020. 
(2) A program to establish international codes, 
standards, and safety protocols for the use and manu-
facture of domestic and foreign products. 
(3) Interagency, intergovernmental, and inter-
national programs and activities for education, infor-
mation exchange, and cooperation. 
(c) DEFINITIONS.—In this subtitle:
155
(1) The term ‘‘Advisory Committee’’ means the 
Hydrogen Technical and Fuel Cell Advisory Com-
mittee established under section 5028 of this Act. 
(2) The term ‘‘Department’’ means the Depart-
ment of Energy. 
(3) The term ‘‘FreedomCAR’’ is the acronym for 
a Department initiative in automotive research and 
development entitled ‘‘Freedom Cooperative Auto-
motive Research’’. 
(4) The term ‘‘fuel cell’’ means a device that di-
rectly converts the chemical energy of a fuel and an 
oxidant into electricity by an electrochemical process 
taking place at separate electrodes in the device. 
(5) The term ‘‘infrastructure’’ means the equip-
ment, systems, or facilities used to produce, distribute, 
deliver, or store hydrogen and other advanced clean 
fuels. 
(6) The term ‘‘light duty vehicle’’ means a car 
or truck, classified by the Department of Transpor-
tation as a Class I or IIA vehicle. 
(7) The term ‘‘Secretary’’ means the Secretary of 
Energy. 
SEC. 5023. PLAN; REPORT. 
(a) PLAN.—The Secretary, in consultation with other 
appropriate Federal agencies, shall prepare a comprehen-
156
sive interagency coordination plan for activities under this 
subtitle. This plan may be provided as part of the Presi-
dent’s annual budget submission to Congress. 
(b) REPORT.—Not later than one year after the date 
of enactment of this subtitle, and biennially thereafter, the 
Secretary shall transmit to the Congress a report on the 
status of programs and activities under this subtitle. This 
report may be provided as part of the President’s annual 
budget submission to Congress. This report may include, 
in addition to any views and recommendations of the Sec-
retary— 
(1) an assessment of the effectiveness of the pro-
grams and activities under this subtitle and the ex-
tent to which the purposes in section 5022(b) have 
been met; and 
(2) the potential for interagency, intergovern-
mental, international, or private sector collaboration 
opportunities and activities under this subtitle.–
SEC. 5024. PUBLIC-PRIVATE PARTNERSHIP. 
(a) PROGRAM.—In partnership with the private sector, 
the Secretary shall conduct a program designed to facilitate 
the production and conservation of energy and the deploy-
ment of energy infrastructure, including all of the following: 
(1) Hydrogen energy. 
(2) Fuel cells.
157
(3) Advanced vehicle technologies. 
(4) Clean fuels in addition to hydrogen. 
(5) Codes, standards, and safety protocols.–
(b) PROGRAM GOALS.—
(1) AUTOMAKERS.—For automakers the goals of 
the program are—
(A) to enable a commitment by automakers 
no later than year 2015 to offer safe, affordable, 
and technically viable hydrogen fuel cell vehicles 
into commerce; and 
(B) to enable production, delivery, and ac-
ceptance by consumers of model year 2020 hy-
drogen fuel cell and other vehicles that will 
have— 
(i) a range of at least three hundred 
miles; 
(ii) improved performance and ease of 
driving; 
(iii) met all light duty safety regula-
tions created under section 30111 of title 
49, United States Code; and 
(iv) when compared to light duty vehi-
cles in model year 2003—
(I) a fuel economy that is two and 
one half times the equivalent fuel econ-
158
omy of these vehicles as regulated 
under the Motor Vehicle Information 
and Cost Savings Act, or about 70 
miles per gallon, and 
(II) near zero emissions of air 
pollutants regulated under the Clean 
Air Act. 
(2) HYDROGEN
ENERGY
AND
ENERGY
INFRA-
STRUCTURE.—For hydrogen energy and energy infra-
structure the goals of the program include, but are not 
limited to, a commitment not later than 2015 that 
will enable the deployment by 2020 of infrastructure 
to provide—
(A) safe and convenient refueling; 
(B) activities leading to widespread avail-
ability of hydrogen from domestic energy sources 
through—
(i) production, including consideration 
of cost-effective production from domestic 
energy sources; 
(ii) delivery, including transmission 
by pipeline and other distribution methods 
for hydrogen; and 
(iii) storage, including storage in sur-
face transportation vehicles;
159
(C) hydrogen for fuel cells, internal combus-
tion engines, and other energy conversion devices 
for portable, stationary, and transportation ap-
plications; and 
(D) other technologies consistent with the 
Department’s plan. 
(3) FUEL CELLS.—The program for fuel cells 
and their portable, stationary, and transportation ap-
plications may include, but is not limited to—
(A) a safe, economical, and environmentally 
sound hydrogen fuel cell; 
(B) a fuel cell for light duty and other vehi-
cles; and 
(C) other technologies consistent with the 
Department’s plan. 
(4) ADVANCED VEHICLE TECHNOLOGIES.—The 
program for advanced vehicle technologies may in-
clude, but is not limited to—
(A) advanced combustion; 
(B) materials; 
(C) energy storage; 
(D) control systems; and 
(E) other technologies consistent with the 
Department’s plan.
160
(5) CODES, STANDARDS, AND SAFETY PROTO-
COLS.—(A) The Department’s program for codes, 
standards, and safety protocols shall strive towards 
establishment of international codes, standards, and 
safety protocols for the use and manufacture of domes-
tic and foreign products. 
(B) The Secretary may represent the United 
States interests with respect to activities and pro-
grams under this subsection, collaborating with the 
Secretary of Transportation, and in consultation with 
other appropriate governments and nongovernmental 
organizations including the following: 
(i) Other Federal, State, regional, and local 
governments and their representatives. 
(ii) Industry and its representatives, in-
cluding members of the energy and transpor-
tation industries. 
(iii) Foreign governments and their rep-
resentatives including international organiza-
tions. 
(c) FEDERAL FUNDING.—(1) The Secretary shall carry 
out the programs and activities under this section con-
sistent with the generally applicable Federal laws and regu-
lations governing awards of financial assistance, contracts,
161
or other agreements, and may include funding to nationally 
recognized university-based research centers. 
(2) The Secretary shall endeavor to avoid duplication 
or displacement of other research and development pro-
grams and activities. 
(d) COST SHARING.—(1) The Secretary shall require 
a commitment from non-Federal sources of at least 20 per-
cent of the cost of proposed programs under this section. 
(2) The Secretary may reduce or eliminate the cost 
sharing requirement under paragraph (1)—
(A) if the Secretary determines that the activity 
is of a basic or fundamental nature which is vital to 
the success of the program and unlikely to occur in 
a timely manner without reduction or elimination of 
the cost-sharing requirement; or 
(B) for technical analyses, outreach programs, 
and other activities including educational programs 
under section 5027 of this subtitle that the Secretary 
does not expect to result in a marketable product. 
SEC. 5025. DEPLOYMENT. 
(a) DEPLOYMENT PROGRAM.—In partnership with the 
private sector, the Secretary shall conduct a program to fa-
cilitate the deployment of—
(1) hydrogen energy and energy infrastructure; 
(2) fuel cells;
162
(3) advanced vehicle technologies; 
(4) clean fuels in addition to hydrogen; and 
(5) codes, standards, and safety protocols.–
(b) PROGRAM GOALS.—(1) For automakers, the goals 
of the program are— 
(A) to enable a decision by automakers no later 
than year 2015 to offer safe, affordable, and tech-
nically viable hydrogen fuel cell vehicles into com-
merce; and 
(B) to enable production and delivery to, and ac-
ceptance by, consumers of model year 2020 hydrogen 
fuel cell and other vehicles that will have—
(i) a range of at least 300 miles; 
(ii) improved performance and ease of driv-
ing; 
(iii) met all light duty safety regulations 
created under section 30111 of title 49, United 
States Code; and 
(iv) when compared to light duty vehicles in 
model year 2003—
(I) a fuel economy that is two and one 
half times the equivalent fuel economy of 
these vehicles under the Motor Vehicle Infor-
mation and Cost Savings Act, or about 70 
miles per gallon; and
163
(II) near zero emissions of air pollut-
ants regulated under the Clean Air Act. 
(2) For hydrogen energy and energy infrastructure the 
goals of the program include, but are not limited to, a com-
mitment not later than 2015 that will enable the deploy-
ment by 2020 of infrastructure to provide—
(A) safe, convenient, and affordable refueling; 
(B) widespread availability of hydrogen from do-
mestic energy sources through—
(i) production, including consideration of 
cost-effective production from domestic energy 
sources; 
(ii) delivery, including transmission by 
pipeline and other distribution methods, for hy-
drogen in its gaseous, liquid, and solid states; 
and 
(iii) storage, including storage in surface 
transportation vehicles; 
(C) hydrogen for fuel cells, internal combustion 
engines, and other energy conversion devices for port-
able, stationary, and transportation applications; and 
(D) other technologies consistent with the De-
partment’s plan.
164
(c) FUEL CELLS.—The program for fuel cells and their 
portable, stationary, and transportation applications may 
include but is not limited to—
(1) a safe, economical, and environmentally 
sound hydrogen fuel cell; 
(2) a fuel cell for light duty and other vehicles; 
and 
(3) other technologies consistent with the Depart-
ment’s plan. 
(d) ADVANCED VEHICLE TECHNOLOGIES.—The pro-
gram for advanced vehicle technologies may include, but is 
not limited to—
(1) advanced combustion; 
(2) materials; 
(3) energy storage; 
(4) control systems; and 
(5) other technologies consistent with the Depart-
ment’s plan. 
(e) FEDERAL FUNDING.—The Secretary shall carry 
out the program and activities under this section consistent 
with laws and regulations governing awards of financial 
assistance, contracts or other agreements, and may include 
funding to nationally recognized university-based research 
centers. The Secretary shall endeavor to avoid duplication 
or displacement of other programs.
165
(f) COST SHARING.—
(1) IN GENERAL.—The Secretary shall require a 
commitment from non-Federal sources of at least 50 
percent of the costs directly relating to a demonstra-
tion under this section. 
(2) REDUCTION.—The Secretary may reduce the 
non-Federal requirement under paragraph (1) if the 
Secretary determines that—
(A) the reduction is appropriate considering 
the technological risks involved; and 
(B) the terms and conditions are consistent 
with the Agreement on Subsidies and Counter-
vailing Measures. 
(3) COOPERATIVE AGREEMENTS WITH GOVERN-
MENTS.—The Secretary may enter into cooperative 
and cost sharing agreements with Federal, State, or 
local governments to deploy vehicles, vehicle systems, 
and refueling infrastructure using hydrogen, fuel cells, 
or other advanced technologies in government facili-
ties or fleet transportation systems. 
SEC. 5026. ASSESSMENT AND TRANSFER. 
(a) PROGRAM.—The Secretary may conduct a pro-
gram to transfer technology to the private sector under this 
subtitle.
166
(b) DISCLOSURE.—The Secretary may protect from 
disclosure, for up to 5 years after the information was devel-
oped, any information developed pursuant to a cost shared 
transaction, or subagreement thereunder, entered into under 
this subtitle to advance the goals of the programs, which 
developed information is of a character that it would be 
protected from disclosure under section 552(b)(4) of title 5, 
United States Code, if this developed information had been 
obtained from a person other than a Federal agency. 
SEC. 5027. INTERAGENCY TASK FORCE. 
(a) ESTABLISHMENT.—Not later than 120 days after 
the date of enactment of this Act, the President shall estab-
lish an interagency task force chaired by the Secretary or 
his designee with representatives from each of the following: 
(1) The Office of Science and Technology Policy 
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 Technology). 
(5) The Environmental Protection Agency. 
(6) The National Aeronautics and Space Admin-
istration. 
(7) Other Federal agencies as the Secretary de-
termines appropriate.
167
(b) DUTIES OF THE INTERAGENCY TASK FORCE.—
(1) PLANNING.—The task force shall coordinate 
the implementation of the interagency plan in section 
5023(a), and work towards deployment of—
(A) a safe, economical, and environmentally 
sound fuel infrastructure, including an infra-
structure that supports buses and other fleet 
transportation; 
(B) fuel cells in government and other ap-
plications, including portable, stationary, and 
transportation applications; and 
(C) distributed power generation, including 
the generation of combined heat, power, and 
clean fuels including hydrogen. 
(2) INFORMATION
EXCHANGE.—(A) The inter-
agency task force shall coordinate interagency pro-
grams and activities including the exchange of infor-
mation. 
(B) The heads of all agencies, including those 
whose agencies are not represented on the interagency 
task force, shall cooperate with and furnish informa-
tion to the interagency task force, the Advisory Com-
mittee, and the Department. 
(C) The information exchange may consist of 
workshops, publications, conferences, and a database
168
for use by the public and private sectors. The inter-
agency task force is expected to—
(i) foster the exchange of generic, nonpropri-
etary information and technology among indus-
try, academia, and government; 
(ii) update the inventory and assessment of 
hydrogen, fuel cells, and other advanced tech-
nologies, including their commercial capability 
for the economic and environmentally safe pro-
duction, distribution, delivery, storage, and use 
of clean fuels including hydrogen; 
(iii) integrate technical and other informa-
tion made available as a result of the programs 
and activities under this subtitle; 
(iv) promote the marketplace introduction 
of infrastructure for hydrogen and other clean 
fuel vehicles; and 
(v) conduct an education program to pro-
vide FreedomCAR and hydrogen fuel informa-
tion to potential end-users. 
SEC. 5028. 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 sub-
title.