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(A) $240,000,000 for carrying out the ve-
hicles program under section 923; 
(B) $130,000,000 for carrying out the 
buildings program under section 924, of which 
$10,000,000 shall be for the grant program 
under section 924(b); 
(C) $115,000,000 for carrying out the in-
dustries program under section 925(a); 
(D) $2,000,000 for carrying out the elec-
tric motor control technology program under 
section 925(b); 
(E) $10,000,000 for carrying out dem-
onstration and commercial applications activi-
ties under section 926; 
(F) $7,000,000 for carrying out the sec-
ondary electric vehicle battery use program 
under section 927; and 
(G) $30,000,000 for carrying out the Next 
Generation Lighting Initiative under section 
928. 
(3) For fiscal year 2008, $800,000,000, includ-
ing— 
(A) $270,000,000 for carrying out the ve-
hicles program under section 923;
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(B) $160,000,000 for carrying out the 
buildings program under section 924, of which 
$10,000,000 shall be for the grant program 
under section 924(b); 
(C) $140,000,000 for carrying out the in-
dustries program under section 925(a); 
(D) $2,000,000 for carrying out the elec-
tric motor control technology program under 
section 925(b); 
(E) $10,000,000 for carrying out dem-
onstration and commercial applications activi-
ties under section 926; 
(F) $7,000,000 for carrying out the sec-
ondary electric vehicle battery use program 
under section 927; and 
(G) $50,000,000 for carrying out the Next 
Generation Lighting Initiative under section 
928. 
(4) For fiscal year 2009, $925,000,000, includ-
ing— 
(A) $310,000,000 for carrying out the ve-
hicles program under section 923; 
(B) $200,000,000 for carrying out the 
buildings program under section 924, of which
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$10,000,000 shall be for the grant program 
under section 924(b); 
(C) $170,000,000 for carrying out the in-
dustries program under section 925(a); 
(D) $10,000,000 for carrying out dem-
onstration and commercial applications activi-
ties under section 926; 
(E) $7,000,000 for carrying out the sec-
ondary electric vehicle battery use program 
under section 927; and 
(F) $50,000,000 for carrying out the Next 
Generation Lighting Initiative under section 
928. 
(5) For fiscal year 2010, $1,000,000,000, in-
cluding— 
(A) $340,000,000 for carrying out the ve-
hicles program under section 923; 
(B) $240,000,000 for carrying out the 
buildings program under section 924, of which 
$10,000,000 shall be for the grant program 
under section 924(b); 
(C) $190,000,000 for carrying out the in-
dustries program under section 925(a);
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(D) $10,000,000 for carrying out dem-
onstration and commercial applications activi-
ties under section 926; 
(E) $7,000,000 for carrying out the sec-
ondary electric vehicle battery use program 
under section 927; and 
(F) $50,000,000 for carrying out the Next 
Generation Lighting Initiative under section 
928. 
SEC. 931. LIMITATION ON USE OF FUNDS. 
None of the funds authorized to be appropriated 
under this chapter may be used for— 
(1) the issuance and implementation of energy 
efficiency regulations; 
(2) the Weatherization Assistance Program 
under part A of title IV of the Energy Conservation 
and Production Act (42 U.S.C. 6861 et seq.); 
(3) the State Energy Program under part D of 
title III of the Energy Policy and Conservation Act 
(42 U.S.C. 6321 et seq.); or 
(4) the Federal Energy Management Program 
under part 3 of title V of the National Energy Con-
servation Policy Act (42 U.S.C. 8251 et seq.).
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CHAPTER 2—DISTRIBUTED ENERGY AND 
ELECTRIC ENERGY SYSTEMS 
SEC. 932. DISTRIBUTED ENERGY. 
(a) IN GENERAL.—The Secretary shall conduct pro-
grams of distributed energy resources and systems reli-
ability and efficiency research, development, demonstra-
tion, and commercial application to improve the reliability 
and efficiency of distributed energy resources and systems, 
including activities described in this chapter. The pro-
grams shall address advanced energy technologies and sys-
tems and advanced grid reliability technologies. The pro-
grams shall include the integration of— 
(1) renewable energy resources; 
(2) fuel cells; 
(3) combined heat and power systems; 
(4) microturbines; 
(5) advanced natural gas turbines; 
(6) advanced internal combustion engine gen-
erators; 
(7) energy storage devices; 
(8) interconnection standards, protocols, and 
equipment; 
(9) ancillary equipment for dispatch and con-
trol; and
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(10) any other energy technologies, as appro-
priate. 
(b) 
MICRO-COGENERATION
ENERGY
TECH-
NOLOGY.—The Secretary shall make competitive, merit- 
based grants to consortia for the development of micro- 
cogeneration energy technology. The consortia shall ex-
plore— 
(1) the use of small-scale combined heat and 
power in residential heating appliances; or 
(2) the use of excess power to operate other ap-
pliances within the residence and supply excess gen-
erated power to the power grid. 
(c) GOALS.— 
(1) INITIAL
GOALS.—In accordance with the 
performance plan and report requirements in section 
4 of the Government Performance Results Act of 
1993, the Secretary shall transmit to the Congress, 
along with the President’s annual budget request for 
fiscal year 2007, a report containing outcome meas-
ures with explicitly stated cost and performance 
baselines. The measures shall specify performance 
goals, with quantifiable 5-year cost and energy sav-
ings target levels, for distributed energy resources 
and systems, and any other such goals the Secretary 
considers appropriate.
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(2) SUBSEQUENT
TRANSMITTALS.—The Sec-
retary shall transmit to the Congress, along with the 
President’s annual budget request for each fiscal 
year after 2007, a report containing— 
(A) a description, including quantitative 
analysis, of progress in achieving performance 
goals transmitted under paragraph (1), as com-
pared to the baselines transmitted under para-
graph (1); and 
(B) any amendments to such goals. 
SEC. 933. ELECTRICITY TRANSMISSION AND DISTRIBUTION 
AND ENERGY ASSURANCE. 
(a) PROGRAM.—The Secretary shall conduct a re-
search, development, demonstration, and commercial ap-
plication program on advanced control devices to improve 
the energy efficiency and reliability of the electric trans-
mission and distribution systems and to protect the Na-
tion against severe energy supply disruptions. This pro-
gram shall address, at a minimum— 
(1) advanced energy delivery and storage tech-
nologies, materials, and systems, including new 
transmission technologies, such as flexible alter-
nating current transmission systems, composite con-
ductor materials, and other technologies that en-
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hance reliability, operational flexibility, or power-car-
rying capability; 
(2) advanced grid reliability and efficiency tech-
nology development; 
(3) technologies contributing to significant load 
reductions; 
(4) advanced metering, load management, and 
control technologies; 
(5) technologies to enhance existing grid compo-
nents; 
(6) the development and use of high-tempera-
ture superconductors to— 
(A) enhance the reliability, operational 
flexibility, or power-carrying capability of elec-
tric transmission or distribution systems; or 
(B) increase the efficiency of electric en-
ergy generation, transmission, distribution, or 
storage systems; 
(7) integration of power systems, including sys-
tems to deliver high-quality electric power, electric 
power reliability, and combined heat and power; 
(8) supply of electricity to the power grid by 
small-scale, distributed, and residential-based power 
generators;
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(9) the development and use of advanced grid 
design, operation, and planning tools; 
(10) any other infrastructure technologies, as 
appropriate; and 
(11) technology transfer and education. 
(b) GOALS.— 
(1) INITIAL
GOALS.—In accordance with the 
performance plan and report requirements in section 
4 of the Government Performance Results Act of 
1993, the Secretary shall transmit to the Congress, 
along with the President’s annual budget request for 
fiscal year 2007, a report containing outcome meas-
ures with explicitly stated cost and performance 
baselines. The measures shall specify performance 
goals, with quantifiable 5-year cost and energy sav-
ings target levels, for electricity transmission and 
distribution and energy assurance, and any other 
such goals the Secretary considers appropriate. 
(2) SUBSEQUENT
TRANSMITTALS.—The Sec-
retary shall transmit to the Congress, along with the 
President’s annual budget request for each fiscal 
year after 2007, a report containing— 
(A) a description, including quantitative 
analysis, of progress in achieving performance 
goals transmitted under paragraph (1), as com-
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pared to the baselines transmitted under para-
graph (1); and 
(B) any amendments to such goals. 
(c) HIGH VOLTAGE TRANSMISSION LINES.—As part 
of the program described in subsection (a), the Secretary 
shall award a grant to a university research program to 
design and test, in consultation with the Tennessee Valley 
Authority, state-of-the-art optimization techniques for 
power flow through existing high voltage transmission 
lines. 
SEC. 933A. ADVANCED PORTABLE POWER DEVICES. 
(a) PROGRAM.—The Secretary shall— 
(1) establish a research, development, and dem-
onstration program to develop working models of 
small scale portable power devices; and 
(2) to the fullest extent practicable, identify and 
utilize the resources of universities that have shown 
expertise with respect to advanced portable power 
devices for either civilian or military use. 
(b) ORGANIZATION.—The universities identified and 
utilized under subsection (a)(2) are authorized to establish 
an organization to promote small scale portable power de-
vices. 
(c) DEFINITION.—For purposes of this section, the 
term ‘‘small scale portable power device’’ means a field
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deployable portable mechanical or electromechanical device 
that can be used for applications such as communications, 
computation, mobility enhancement, weapons systems, op-
tical devices, cooling, sensors, medical devices and active 
biological agent detection systems. 
SEC. 934. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—The following sums are author-
ized to be appropriated to the Secretary for the purposes 
of carrying out this chapter: 
(1) For fiscal year 2006, $220,000,000. 
(2) For fiscal year 2007, $240,000,000. 
(3) For fiscal year 2008, $250,000,000. 
(4) For fiscal year 2009, $265,000,000. 
(5) For fiscal year 2010, $275,000,000. 
(b) 
MICRO-COGENERATION
ENERGY
TECH-
NOLOGY.—From the amounts authorized under subsection 
(a), $20,000,000 for each of fiscal years 2006 and 2007 
are authorized for activities under section 932(b). 
(c) ELECTRICITY TRANSMISSION AND DISTRIBUTION 
AND ENERGY ASSURANCE.—From the amounts author-
ized under subsection (a), the following sums are author-
ized for activities under section 933: 
(1) For fiscal year 2006, $130,000,000, of 
which $2,000,000 shall be for the program under 
section 933(c).
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(2) For fiscal year 2007, $140,000,000. 
(3) For fiscal year 2008, $150,000,000. 
(4) For fiscal year 2009, $160,000,000. 
(5) For fiscal year 2010, $165,000,000. 
Subtitle D—Renewable Energy 
SEC. 935. FINDINGS. 
Congress makes the following findings: 
(1) Renewable energy is a growth industry 
around the world. However, the United States has 
not been investing as heavily as other countries, and 
is losing market share. 
(2) Since 1996, the United States has lost sig-
nificant market share in the solar industry, dropping 
from 44 percent of the world market to 13 percent 
in 2003. 
(3) 
In 
2003, 
Japan 
spent 
more 
than 
$200,000,000 on solar research, development, dem-
onstration, and commercial application and other in-
centives, 
and 
Germany 
provided 
more 
than 
$750,000,000 in low cost financing for solar photo-
voltaic projects. This compares to United States 
Government spending of $139,000,000 in 2003 for 
research, development, demonstration, and commer-
cial application and other incentives.
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(4) Germany and Japan each had domestic 
photovoltaic industries that employed more than 
10,000 people in 2003, while in the same year the 
United States photovoltaics industry employed only 
2,000 people. 
(5) The United States is becoming increasingly 
dependent on imported energy. 
(6) The high cost of fossil fuels is hurting the 
United States economy. 
(7) Small reductions in peak demand can result 
in very large reductions in price, according to energy 
market experts. 
(8) Although the United States has only 2 per-
cent of the world’s oil reserves and 3 percent of the 
world’s natural gas reserves, our Nation’s renewable 
energy resources are vast and largely untapped. 
(9) Renewable energy can reduce the demand 
for imported energy, reducing costs and decreasing 
the variability of energy prices. 
(10) By using domestic renewable energy re-
sources, the United States can reduce the amount of 
money sent into unstable regions of the world and 
keep it in the United States. 
(11) By supporting renewable energy research 
and development, and funding demonstration and
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commercial application programs for renewable en-
ergy, the United States can create an export indus-
try and improve the balance of trade. 
(12) Renewable energy can significantly reduce 
the environmental impacts of energy production. 
SEC. 936. DEFINITIONS. 
For purposes of this subtitle: 
(1) BIOBASED PRODUCT.—The term ‘‘biobased 
product’’ means a product determined by the Sec-
retary to be a commercial or industrial product 
(other than food or feed) that is— 
(A) composed, in whole or in significant 
part, of— 
(i) biological products; 
(ii) renewable domestic agricultural 
materials (including plant, animal, and 
marine materials); or 
(iii) forestry materials; and 
(B) produced in connection with the con-
version of biomass to energy or fuel. 
(2) CELLULOSIC
BIOMASS.—The term ‘‘cel-
lulosic 
biomass’’ 
means 
a 
crop 
containing 
lignocellulose or hemicellulose, including barley 
grain, grapeseed, forest thinnings, rice bran, rice 
hulls, rice straw, soybean matter, sugarcane bagasse,
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and any crop grown specifically for the purpose of 
producing cellulosic feedstocks. 
SEC. 937. PROGRAMS. 
(a) IN GENERAL.—The Secretary shall conduct pro-
grams of renewable energy research, development, dem-
onstration, and commercial application, including activi-
ties described in this subtitle. Such programs shall be fo-
cused on the following objectives: 
(1) Increasing the conversion efficiency of all 
forms of renewable energy through improved tech-
nologies. 
(2) Decreasing the cost of renewable energy 
generation and delivery. 
(3) Promoting the diversity of the energy sup-
ply. 
(4) Decreasing the Nation’s dependence on for-
eign energy supplies. 
(5) Improving United States energy security. 
(6) Decreasing the environmental impact of en-
ergy-related activities. 
(7) Increasing the export of renewable genera-
tion equipment from the United States. 
(b) GOALS.— 
(1) INITIAL
GOALS.—In accordance with the 
performance plan and report requirements in section
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4 of the Government Performance Results Act of 
1993, the Secretary shall transmit to the Congress, 
along with the President’s annual budget request for 
fiscal year 2007, a report containing outcome meas-
ures with explicitly stated cost and performance 
baselines. The measures shall specify renewable en-
ergy performance goals, with quantifiable 5-year cost 
and energy savings target levels, for wind power, 
photovoltaics, solar thermal systems (including con-
centrating and solar hot water), geothermal energy, 
biomass-based systems, biofuels, and hydropower, 
and any other such goals the Secretary considers ap-
propriate. 
(2) SUBSEQUENT
TRANSMITTALS.—The Sec-
retary shall transmit to the Congress, along with the 
President’s annual budget request for each fiscal 
year after 2007, a report containing— 
(A) a description, including quantitative 
analysis, of progress in achieving performance 
goals transmitted under paragraph (1), as com-
pared to the baselines transmitted under para-
graph (1); and 
(B) any amendments to such goals. 
(c) PUBLIC INPUT.—The Secretary shall consider ad-
vice from industry, universities, and other interested par-
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ties through seeking comments in the Federal Register 
and other means before transmitting each report under 
subsection (b). 
SEC. 938. SOLAR. 
(a) PROGRAM.—The Secretary shall conduct a pro-
gram of research, development, demonstration, and com-
mercial application for solar energy, including— 
(1) photovoltaics; 
(2) solar hot water and solar space heating; and 
(3) concentrating solar power. 
(b) BUILDING
INTEGRATION.—For photovoltaics, 
solar hot water, and space heating, the Secretary shall 
conduct research, development, demonstration, and com-
mercial application to support the development of products 
that can be easily integrated into new and existing build-
ings. 
(c) MANUFACTURE.—The Secretary shall conduct re-
search, development, demonstration, and commercial ap-
plication of manufacturing techniques that can produce 
low-cost, high-quality solar systems. 
SEC. 939. BIOENERGY PROGRAMS. 
(a) PROGRAM.—The Secretary shall conduct a pro-
gram of research, development, demonstration, and com-
mercial application for cellulosic biomass, including— 
(1) biomass conversion to heat and electricity;
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(2) biomass conversion to liquid fuels; 
(3) biobased products; 
(4) integrated biorefineries that may produce 
heat, electricity, liquid fuels, and biobased products; 
(5) cross-cutting activities on feedstocks and 
enzymes; and 
(6) life-cycle economic analysis. 
(b) BIOFUELS AND BIOBASED PRODUCTS.—The ob-
jectives of the biofuels and biobased products programs 
under paragraphs (2), (3), and (4) of subsection (a), and 
of the biorefinery demonstration program under sub-
section (c), shall be to develop, in partnership with indus-
try— 
(1) advanced biochemical and thermochemical 
conversion technologies capable of making high-value 
biobased chemical feedstocks and products, to sub-
stitute for petroleum-based feedstocks and products, 
biofuels that are price-competitive with gasoline or 
diesel in either internal combustion engines or fuel 
cell-powered vehicles, and biobased products from a 
variety of feedstocks, including grains, cellulosic bio-
mass, and agricultural byproducts; and 
(2) advanced biotechnology processes capable of 
making biofuels and biobased products, with empha-
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sis on development of biorefinery technologies, in-
cluding enzyme-based processing technologies. 
(c) BIOMASS INTEGRATED REFINERY DEMONSTRA-
TION.— 
(1) IN GENERAL.—The Secretary shall conduct 
a program to demonstrate the commercial applica-
tion of at least 5 integrated biorefineries. The Sec-
retary shall ensure geographical distribution of bio-
refinery demonstrations under this subsection. The 
Secretary shall not provide more than $100,000,000 
under this subsection for any single biorefinery dem-
onstration. The Secretary shall award the biorefinery 
demonstrations so as to encourage— 
(A) the demonstration of a wide variety of 
cellulosic biomass feedstocks; 
(B) the commercial application of biomass 
technologies for a variety of uses, including— 
(i) liquid transportation fuels; 
(ii) high-value biobased chemicals; 
(iii) substitutes for petroleum-based 
feedstocks and products; and 
(iv) energy in the form of electricity 
or useful heat; and 
(C) the demonstration of the collection and 
treatment of a variety of biomass feedstocks.
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(2) PROPOSALS.—Not later than 6 months 
after the date of enactment of this Act, the Sec-
retary shall solicit proposals for demonstration of 
advanced biorefineries. The Secretary shall select 
only proposals that— 
(A) demonstrate that the project will be 
able to operate profitably without direct Federal 
subsidy after initial construction costs are paid; 
and 
(B) enable the biorefinery to be easily rep-
licated. 
(d) UNIVERSITY BIODIESEL PROGRAM.—The Sec-
retary shall establish a demonstraton program to deter-
mine the feasibility of the operation of diesel electric power 
generators, using biodiesel fuels, with ratings as high as 
B100 at a university electric generation facility. The pro-
gram shall examine— 
(1) heat rates of diesel fuels with large quan-
tities of cellulosic content; 
(2) the reliability of operation of various fuel 
blends; 
(3) performance in cold or freezing weather; 
(4) stability of fuel after extended storage; and 
(5) other criteria, as determined by the Sec-
retary.
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(e) GRANTS.—Of the funds authorized to be appro-
priated for activities authorized under this section, not less 
than $5,000,000 for each fiscal year shall be made avail-
able for grants to Historically Black Colleges and Univer-
sities, Tribal Colleges, and Hispanic-Serving Institutions. 
SEC. 940. WIND. 
(a) PROGRAM.—The Secretary shall conduct a pro-
gram of research, development, demonstration, and com-
mercial application for wind energy, including— 
(1) low speed wind energy; 
(2) offshore wind energy; 
(3) testing and verification; and 
(4) distributed wind energy generation. 
(b) FACILITY.—The Secretary shall construct and op-
erate a research and testing facility capable of testing the 
largest wind turbines that are expected to be manufac-
tured in the next 15 years. The Secretary shall consider 
the need for testing offshore turbine designs in siting the 
facility. All private users of the facility shall be required 
to pay the Department all costs associated with their use 
of the facility, including capital costs prorated at normal 
business amortization rates. 
(c) REGIONAL FIELD VERIFICATION PROGRAM.—Of 
the funds authorized to be appropriated for activities au-
thorized under this section, not less than $4,000,000 for
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each fiscal year shall be made available for the Regional 
Field Verification Program of the Department. 
SEC. 941. GEOTHERMAL. 
The Secretary shall conduct a program of research, 
development, demonstration, and commercial application 
for geothermal energy. The program shall focus on devel-
oping improved technologies for reducing the costs of geo-
thermal energy installations, including technologies for— 
(1) improving detection of geothermal re-
sources; 
(2) decreasing drilling costs; 
(3) decreasing maintenance costs through im-
proved materials; 
(4) increasing the potential for other revenue 
sources, such as mineral production; and 
(5) increasing the understanding of reservoir 
life cycle and management. 
SEC. 942. PHOTOVOLTAIC DEMONSTRATION PROGRAM. 
(a) IN GENERAL.—The Secretary shall establish a 
program of grants to States to demonstrate advanced pho-
tovoltaic technology. 
(b) REQUIREMENTS.—(1) To receive funding under 
the program under this section, a State must submit a 
proposal that demonstrates, to the satisfaction of the Sec-
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retary, that the State will meet the requirements of sub-
section (f). 
(2) If a State has received funding under this section 
for the preceding year, the State must demonstrate, to the 
satisfaction of the Secretary, that it complied with the re-
quirements of subsection (f) in carrying out the program 
during that preceding year, and that it will do so in the 
future. 
(3) Except as provided in subsection (c), each State 
submitting a qualifying proposal shall receive funding 
under the program based on the proportion of United 
States population in the State according to the 2000 cen-
sus. In each fiscal year, the portion of funds attributable 
under this paragraph to States that have not submitted 
qualifying proposals in the time and manner specified by 
the Secretary shall be distributed pro rata to the States 
that have submitted qualifying proposals in the specified 
time and manner. 
(c) COMPETITION.—If more than $80,000,000 is 
available for the program under this section for any fiscal 
year, the Secretary shall allocate 75 percent of the funds 
available according to subsection (b), and shall award the 
remaining 25 percent on a competitive basis to the States 
with the proposals the Secretary considers most likely to
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encourage the widespread adoption of photovoltaic tech-
nologies. 
(d) PROPOSALS.—Not later than 6 months after the 
date of enactment of this Act, and in each subsequent fis-
cal year for the life of the program, the Secretary shall 
solicit proposals from the States to participate in the pro-
gram under this section. 
(e) COMPETITIVE CRITERIA.—In awarding funds in 
a competitive allocation under subsection (c), the Sec-
retary shall consider— 
(1) the likelihood of a proposal to encourage the 
demonstration of, or lower the costs of, advanced 
photovoltaic technologies; and 
(2) the extent to which a proposal is likely to— 
(A) maximize the amount of photovoltaics 
demonstrated; 
(B) maximize the proportion of non-Fed-
eral cost share; and 
(C) limit State administrative costs. 
(f) STATE PROGRAM.—A program operated by a 
State with funding under this section shall provide com-
petitive awards for the demonstration of advanced photo-
voltaic technologies. Each State program shall— 
(1) require a contribution of at least 60 percent 
per award from non-Federal sources, which may in-
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clude any combination of State, local, and private 
funds, except that at least 10 percent of the funding 
must be supplied by the State; 
(2) limit awards for any single project to a 
maximum of $1,000,000; 
(3) prohibit any nongovernmental recipient 
from receiving more than $1,000,000 per year; 
(4) endeavor to fund recipients in the commer-
cial, industrial, institutional, governmental, and resi-
dential sectors; 
(5) limit State administrative costs to no more 
than 10 percent of the grant; 
(6) report annually to the Department on— 
(A) the amount of funds disbursed; 
(B) the amount of photovoltaics purchased; 
and 
(C) the results of the monitoring under 
paragraph (7); 
(7) provide for measurement and verification of 
the output of a representative sample of the 
photovoltaics systems demonstrated throughout the 
average working life of the systems, or at least 20 
years; and 
(8) require that applicant buildings must have 
received an independent energy efficiency audit dur-