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‘‘(A) the Bonneville Power Administration; 
‘‘(B) the Western Area Power Administra-
tion; and 
‘‘(C) any other power administration the 
power allocation of which is used by or for the 
benefit of an Indian tribe located in the service 
area of the administration. 
‘‘(b) ENCOURAGEMENT OF INDIAN TRIBAL ENERGY 
DEVELOPMENT.—Each Administrator shall encourage In-
dian tribal energy development by taking such actions as 
are appropriate, including administration of programs of 
the Bonneville Power Administration and the Western 
Area Power Administration, in accordance with this sec-
tion. 
‘‘(c) ACTION BY THE ADMINISTRATOR.—In carrying 
out this section, and in accordance with existing law— 
‘‘(1) each Administrator shall consider the 
unique relationship that exists between the United 
States and Indian tribes; 
‘‘(2) power allocations from the Western Area 
Power Administration to Indian tribes may be used 
to meet firming and reserve needs of Indian-owned 
energy projects on Indian land; 
‘‘(3) the Administrator of the Western Area 
Power Administration may purchase non-federally
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generated power from Indian tribes to meet the 
firming and reserve requirements of the Western 
Area Power Administration; and 
‘‘(4) each Administrator shall not pay more 
than the prevailing market price for an energy prod-
uct nor obtain less than prevailing market terms and 
conditions. 
‘‘(d) ASSISTANCE
FOR
TRANSMISSION
SYSTEM 
USE.—(1) An Administrator may provide technical assist-
ance to Indian tribes seeking to use the high-voltage trans-
mission system for delivery of electric power. 
‘‘(2) The costs of technical assistance provided under 
paragraph (1) shall be funded by the Secretary of Energy 
using nonreimbursable funds appropriated for that pur-
pose, or by the applicable Indian tribes. 
‘‘(e) POWER ALLOCATION STUDY.—Not later than 2 
years after the date of enactment of the Indian Tribal En-
ergy Development and Self-Determination Act of 2004, 
the Secretary of Energy shall submit to Congress a report 
that— 
‘‘(1) describes the use by Indian tribes of Fed-
eral power allocations of the Western Area Power 
Administration (or power sold by the Southwestern 
Power Administration) and the Bonneville Power
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Administration to or for the benefit of Indian tribes 
in service areas of those administrations; and 
‘‘(2) identifies— 
‘‘(A) the quantity of power allocated to, or 
used for the benefit of, Indian tribes by the 
Western Area Power Administration; 
‘‘(B) the quantity of power sold to Indian 
tribes by other power marketing administra-
tions; and 
‘‘(C) barriers that impede tribal access to 
and use of Federal power, including an assess-
ment of opportunities to remove those barriers 
and improve the ability of power marketing ad-
ministrations to deliver Federal power. 
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$750,000, which shall remain available until expended and 
shall not be reimbursable. 
‘‘SEC. 2607. WIND AND HYDROPOWER FEASIBILITY STUDY. 
‘‘(a) STUDY.—The Secretary of Energy, in coordina-
tion with the Secretary of the Army and the Secretary, 
shall conduct a study of the cost and feasibility of devel-
oping a demonstration project that would use wind energy 
generated by Indian tribes and hydropower generated by 
the Army Corps of Engineers on the Missouri River to
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supply firming power to the Western Area Power Adminis-
tration. 
‘‘(b) SCOPE OF STUDY.—The study shall— 
‘‘(1) determine the feasibility of the blending of 
wind energy and hydropower generated from the 
Missouri River dams operated by the Army Corps of 
Engineers; 
‘‘(2) review historical and projected require-
ments for firming power and the patterns of avail-
ability and use of firming power; 
‘‘(3) assess the wind energy resource potential 
on tribal land and projected cost savings through a 
blend of wind and hydropower over a 30-year period; 
‘‘(4) determine seasonal capacity needs and as-
sociated transmission upgrades for integration of 
tribal wind generation; and 
‘‘(5) include an independent tribal engineer as 
a study team member. 
‘‘(c) REPORT.—Not later than 1 year after the date 
of enactment of the Energy Policy Act of 2003, the Sec-
retary and Secretary of the Army shall submit to Congress 
a report that describes the results of the study, includ-
ing— 
‘‘(1) an analysis of the potential energy cost or 
benefits to the customers of the Western Area Power
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Administration through the use of combined wind 
and hydropower; 
‘‘(2) an evaluation of whether a combined wind 
and hydropower system can reduce reservoir fluctua-
tion, enhance efficient and reliable energy produc-
tion, and provide Missouri River management flexi-
bility; 
‘‘(3) recommendations for a demonstration 
project that could be carried out by the Western 
Area Power Administration in partnership with an 
Indian tribal government or tribal energy resource 
development organization to demonstrate the feasi-
bility and potential of using wind energy produced 
on Indian land to supply firming energy to the 
Western Area Power Administration or any other 
Federal power marketing agency; and 
‘‘(4) an identification of— 
‘‘(A) the economic and environmental costs 
or benefits to be realized through such a Fed-
eral-tribal partnership; and 
‘‘(B) the manner in which such a partner-
ship could contribute to the energy security of 
the United States. 
‘‘(d) FUNDING.—
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‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to carry out 
this section $500,000, to remain available until ex-
pended. 
‘‘(2) NONREIMBURSABILITY.—Costs incurred by the 
Secretary in carrying out this section shall be non-
reimbursable.’’. 
(b) CONFORMING AMENDMENTS.—The table of con-
tents for the Energy Policy Act of 1992 is amended by 
striking the items relating to title XXVI and inserting the 
following: 
‘‘Sec. 2601. Definitions. 
‘‘Sec. 2602. Indian tribal energy resource development. 
‘‘Sec. 2603. Indian tribal energy resource regulation. 
‘‘Sec. 2604. Leases, business agreements, and rights-of-way involving energy 
development or transmission. 
‘‘Sec. 2605. Indian mineral development review. 
‘‘Sec. 2606. Federal Power Marketing Administrations. 
‘‘Sec. 2607. Wind and hydropower feasibility study.’’. 
SEC. 504. FOUR CORNERS TRANSMISSION LINE PROJECT. 
The Dine Power Authority, an enterprise of the Nav-
ajo Nation, shall be eligible to receive grants and other 
assistance as authorized by section 217 of the Department 
of Energy Organization Act, as added by section 502 of 
this title, and section 2602 of the Energy Policy Act of 
1992, as amended by this title, for activities associated 
with the development of a transmission line from the Four 
Corners Area to southern Nevada, including related power 
generation opportunities.
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SEC. 505. ENERGY EFFICIENCY IN FEDERALLY ASSISTED 
HOUSING. 
(a) IN GENERAL.—The Secretary of Housing and 
Urban Development shall promote energy conservation in 
housing that is located on Indian land and assisted with 
Federal resources through— 
(1) the use of energy-efficient technologies and 
innovations (including the procurement of energy-ef-
ficient refrigerators and other appliances); 
(2) the promotion of shared savings contracts; 
and 
(3) the use and implementation of such other 
similar technologies and innovations as the Secretary 
of Housing and Urban Development considers to be 
appropriate. 
(b) AMENDMENT.—Section 202(2) of the Native 
American Housing and Self-Determination Act of 1996 
(25 U.S.C. 4132(2)) is amended by inserting ‘‘improve-
ment to achieve greater energy efficiency,’’ after ‘‘plan-
ning,’’. 
SEC. 506. CONSULTATION WITH INDIAN TRIBES. 
In carrying out this title and the amendments made 
by this title, the Secretary of Energy and the Secretary 
shall, as appropriate and to the maximum extent prac-
ticable, involve and consult with Indian tribes in a manner 
that is consistent with the Federal trust and the govern-
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of 1954 (42 U.S.C. 2210(d)) is amended by striking para-
graph (2) and inserting the following: 
‘‘(2) In an agreement of indemnification entered into 
under paragraph (1), the Secretary— 
‘‘(A) may require the contractor to provide and 
maintain financial protection of such a type and in 
such amounts as the Secretary shall determine to be 
appropriate to cover public liability arising out of or 
in connection with the contractual activity; and 
‘‘(B) shall indemnify the persons indemnified 
against such liability above the amount of the finan-
cial 
protection 
required, 
in 
the 
amount 
of 
$10,000,000,000 (subject to adjustment for inflation 
under subsection t.), in the aggregate, for all per-
sons indemnified in connection with the contract and 
for each nuclear incident, including such legal costs 
of the contractor as are approved by the Secretary.’’. 
(b) CONTRACT AMENDMENTS.—Section 170 d. of the 
Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is further 
amended by striking paragraph (3) and inserting the fol-
lowing— 
‘‘(3) All agreements of indemnification under which 
the Department of Energy (or its predecessor agencies) 
may be required to indemnify any person under this sec-
tion shall be deemed to be amended, on the date of enact-
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ment of the Price-Anderson Amendments Act of 2003, to 
reflect the amount of indemnity for public liability and any 
applicable financial protection required of the contractor 
under this subsection.’’. 
(c) LIABILITY LIMIT.—Section 170 e.(1)(B) of the 
Atomic Energy Act of 1954 (42 U.S.C. 2210(e)(1)(B)) is 
amended— 
(1) by striking ‘‘the maximum amount of finan-
cial protection required under subsection b. or’’; and 
(2) by striking ‘‘paragraph (3) of subsection d., 
whichever amount is more’’ and inserting ‘‘para-
graph (2) of subsection d.’’. 
SEC. 605. INCIDENTS OUTSIDE THE UNITED STATES. 
(a) AMOUNT
OF INDEMNIFICATION.—Section 170 
d.(5) of the Atomic Energy Act of 1954 (42 U.S.C. 
2210(d)(5)) is amended by striking ‘‘$100,000,000’’ and 
inserting ‘‘$500,000,000’’. 
(b) LIABILITY LIMIT.—Section 170 e.(4) of the 
Atomic Energy Act of 1954 (42 U.S.C. 2210(e)(4)) is 
amended by striking ‘‘$100,000,000’’ and inserting 
‘‘$500,000,000’’. 
SEC. 606. REPORTS. 
Section 170 p. of the Atomic Energy Act of 1954 (42 
U.S.C. 2210(p)) is amended by striking ‘‘August 1, 1998’’ 
and inserting ‘‘December 31, 2019’’.
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SEC. 607. INFLATION ADJUSTMENT. 
Section 170 t. of the Atomic Energy Act of 1954 (42 
U.S.C. 2210(t)) is amended— 
(1) by redesignating paragraph (2) as para-
graph (3); and 
(2) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) The Secretary shall adjust the amount of indem-
nification provided under an agreement of indemnification 
under subsection d. not less than once during each 5-year 
period following July 1, 2003, in accordance with the ag-
gregate percentage change in the Consumer Price Index 
since— 
‘‘(A) that date, in the case of the first adjust-
ment under this paragraph; or 
‘‘(B) the previous adjustment under this para-
graph.’’. 
SEC. 608. TREATMENT OF MODULAR REACTORS. 
Section 170 b. of the Atomic Energy Act of 1954 (42 
U.S.C. 2210(b)) is amended by adding at the end the fol-
lowing: 
‘‘(5)(A) For purposes of this section only, the Com-
mission shall consider a combination of facilities described 
in subparagraph (B) to be a single facility having a rated 
capacity of 100,000 electrical kilowatts or more.
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‘‘(B) A combination of facilities referred to in sub-
paragraph (A) is 2 or more facilities located at a single 
site, each of which has a rated capacity of 100,000 elec-
trical kilowatts or more but not more than 300,000 elec-
trical kilowatts, with a combined rated capacity of not 
more than 1,300,000 electrical kilowatts.’’. 
SEC. 609. APPLICABILITY. 
The amendments made by sections 603, 604, and 605 
do not apply to a nuclear incident that occurs before the 
date of the enactment of this Act. 
SEC. 610. PROHIBITION ON ASSUMPTION BY UNITED 
STATES GOVERNMENT OF LIABILITY FOR 
CERTAIN FOREIGN INCIDENTS. 
Section 170 of the Atomic Energy Act of 1954 (42 
U.S.C. 2210) is amended by adding at the end the fol-
lowing new subsection: 
‘‘u. PROHIBITION ON ASSUMPTION OF LIABILITY FOR 
CERTAIN FOREIGN INCIDENTS.—Notwithstanding this 
section or any other provision of law, no officer of the 
United States or of any department, agency, or instrumen-
tality of the United States Government may enter into any 
contract or other arrangement, or into any amendment or 
modification of a contract or other arrangement, the pur-
pose or effect of which would be to directly or indirectly 
impose liability on the United States Government, or any
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department, agency, or instrumentality of the United 
States Government, or to otherwise directly or indirectly 
require an indemnity by the United States Government, 
for nuclear incidents occurring in connection with the de-
sign, construction, or operation of a production facility or 
utilization facility in any country whose government has 
been identified by the Secretary of State as engaged in 
state sponsorship of terrorist activities (specifically includ-
ing any country the government of which, as of September 
11, 2001, had been determined by the Secretary of State 
under section 620A(a) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2371(a)), section 6(j)(1) of the Export 
Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)), 
or section 40(d) of the Arms Export Control Act (22 
U.S.C. 2780(d)) to have repeatedly provided support for 
acts of international terrorism). This subsection shall not 
apply to nuclear incidents occurring as a result of mis-
sions, carried out under the direction of the Secretary of 
Energy, the Secretary of Defense, or the Secretary of 
State, that are necessary to safely secure, store, transport, 
or remove nuclear materials for nuclear safety or non-
proliferation purposes.’’.
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SEC. 611. CIVIL PENALTIES. 
(a) REPEAL
OF AUTOMATIC REMISSION.—Section 
234A b.(2) of the Atomic Energy Act of 1954 (42 U.S.C. 
2282a(b)(2)) is amended by striking the last sentence. 
(b) LIMITATION
FOR NOT-FOR-PROFIT INSTITU-
TIONS.—Subsection d. of section 234A of the Atomic En-
ergy Act of 1954 (42 U.S.C. 2282a(d)) is amended to read 
as follows: 
‘‘d.(1) Notwithstanding subsection a., in the case of 
any not-for-profit contractor, subcontractor, or supplier, 
the total amount of civil penalties paid under subsection 
a. may not exceed the total amount of fees paid within 
any 1-year period (as determined by the Secretary) under 
the contract under which the violation occurs. 
‘‘(2) For purposes of this section, the term ‘not-for- 
profit’ means that no part of the net earnings of the con-
tractor, subcontractor, or supplier inures to the benefit of 
any natural person or for-profit artificial person.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall not apply to any violation of the Atomic 
Energy Act of 1954 (42 U.S.C. 2011 et seq.) occurring 
under a contract entered into before the date of enactment 
of this section.
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Subtitle B—General Nuclear 
Matters 
SEC. 621. LICENSES. 
Section 103 c. of the Atomic Energy Act of 1954 (42 
U.S.C. 2133(c)) is amended by inserting ‘‘from the au-
thorization to commence operations’’ after ‘‘forty years’’. 
SEC. 622. NRC TRAINING PROGRAM. 
(a) IN GENERAL.—In order to maintain the human 
resource investment and infrastructure of the United 
States in the nuclear sciences, health physics, and engi-
neering fields, in accordance with the statutory authorities 
of the Nuclear Regulatory Commission relating to the ci-
vilian nuclear energy program, the Nuclear Regulatory 
Commission shall carry out a training and fellowship pro-
gram to address shortages of individuals with critical nu-
clear safety regulatory skills. 
(b) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There are authorized to be 
appropriated to the Nuclear Regulatory Commission 
to carry out this section $1,000,000 for each of fis-
cal years 2004 through 2008. 
(2) 
AVAILABILITY.—Funds 
made 
available 
under paragraph (1) shall remain available until ex-
pended.
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‘‘(9) APPLICABILITY.—This subsection does not 
apply to an application for a license to construct or oper-
ate a utilization facility or production facility under sec-
tion 103 or 104 b. that is filed on or after the date of 
enactment of this paragraph.’’. 
SEC. 626. DECOMMISSIONING. 
Section 161 i. of the Atomic Energy Act of 1954 (42 
U.S.C. 2201(i)) is amended— 
(1) by striking ‘‘and (3)’’ and inserting ‘‘(3)’’; 
and 
(2) by inserting before the semicolon at the end 
the following: ‘‘, and (4) to ensure that sufficient 
funds will be available for the decommissioning of 
any production or utilization facility licensed under 
section 103 or 104 b., including standards and re-
strictions governing the control, maintenance, use, 
and disbursement by any former licensee under this 
Act that has control over any fund for the decom-
missioning of the facility’’. 
SEC. 627. LIMITATION ON LEGAL FEE REIMBURSEMENT. 
The Department of Energy shall not, except as re-
quired under a contract entered into before the date of 
enactment of this Act, reimburse any contractor or sub-
contractor of the Department for any legal fees or ex-
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penses incurred with respect to a complaint subsequent 
to— 
(1) an adverse determination on the merits with 
respect to such complaint against the contractor or 
subcontractor by the Director of the Department of 
Energy’s Office of Hearings and Appeals pursuant 
to part 708 of title 10, Code of Federal Regulations, 
or by a Department of Labor Administrative Law 
Judge pursuant to section 211 of the Energy Reor-
ganization Act of 1974 (42 U.S.C. 5851); or 
(2) an adverse final judgment by any State or 
Federal court with respect to such complaint against 
the contractor or subcontractor for wrongful termi-
nation or retaliation due to the making of disclo-
sures protected under chapter 12 of title 5, United 
States Code, section 211 of the Energy Reorganiza-
tion Act of 1974 (42 U.S.C. 5851), or any com-
parable State law, 
unless the adverse determination or final judgment is re-
versed upon further administrative or judicial review. 
SEC. 628. DECOMMISSIONING PILOT PROGRAM. 
(a) PILOT PROGRAM.—The Secretary of Energy shall 
establish a decommissioning pilot program to decommis-
sion and decontaminate the sodium-cooled fast breeder ex-
perimental test-site reactor located in northwest Arkansas
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in accordance with the decommissioning activities con-
tained in the August 31, 1998, Department of Energy re-
port on the reactor. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy to carry out this section $16,000,000. 
SEC. 629. REPORT ON FEASIBILITY OF DEVELOPING COM-
MERCIAL NUCLEAR ENERGY GENERATION 
FACILITIES AT EXISTING DEPARTMENT OF 
ENERGY SITES. 
Not later than 1 year after the date of the enactment 
of this Act, the Secretary of Energy shall submit to Con-
gress a report on the feasibility of developing commercial 
nuclear energy generation facilities at Department of En-
ergy sites in existence on the date of enactment of this 
Act. 
SEC. 630. URANIUM SALES. 
(a) SALES, TRANSFERS, AND SERVICES.—Section 
3112 of the USEC Privatization Act (42 U.S.C. 2297h– 
10) is amended by striking subsections (d), (e), and (f) 
and inserting the following: 
‘‘(3) The Secretary may transfer to the Corporation, 
notwithstanding subsections (b)(2) and (d), natural ura-
nium in amounts sufficient to fulfill the Department of 
Energy’s commitments under Article 4(B) of the Agree-
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ment between the Department and the Corporation dated 
June 17, 2002. 
‘‘(d) INVENTORY SALES.—(1) In addition to the 
transfers and sales authorized under subsections (b) and 
(c) and under paragraph (5) of this subsection, the United 
States Government may transfer or sell uranium in any 
form subject to paragraphs (2), (3), and (4). 
‘‘(2) Except as provided in subsections (b) and (c) 
and paragraph (5) of this subsection, no sale or transfer 
of uranium shall be made under this subsection by the 
United States Government unless— 
‘‘(A) the President determines that the material 
is not necessary for national security needs and the 
sale or transfer has no adverse impact on implemen-
tation of existing government-to-government agree-
ments; 
‘‘(B) the price paid to the appropriate Federal 
agency, if the transaction is a sale, will not be less 
than the fair market value of the material; and 
‘‘(C) the sale or transfer to commercial nuclear 
power end users is made pursuant to a contract of 
at least 3 years’ duration. 
‘‘(3) Except as provided in paragraph (5), the United 
States Government shall not make any transfer or sale 
of uranium in any form under this subsection that would
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cause the total amount of uranium transferred or sold pur-
suant to this subsection that is delivered for consumption 
by commercial nuclear power end users to exceed— 
‘‘(A) 3,000,000 pounds of U3 O8 equivalent in 
fiscal year 2004, 2005, 2006, 2007, 2008, or 2009; 
‘‘(B) 5,000,000 pounds of U3O8 equivalent in 
fiscal year 2010 or 2011; 
‘‘(C) 7,000,000 pounds of U3O8 equivalent in 
fiscal year 2012; and 
‘‘(D) 10,000,000 pounds of U3O8 equivalent in 
fiscal year 2013 or any fiscal year thereafter. 
‘‘(4) Except for sales or transfers under paragraph 
(5), for the purposes of this subsection, the recovery of 
uranium from uranium bearing materials transferred or 
sold by the United States Government to the domestic 
uranium industry shall be the preferred method of making 
uranium available. The recovered uranium shall be count-
ed against the annual maximum deliveries set forth in this 
section, when such uranium is sold to end users. 
‘‘(5) The United States Government may make the 
following sales and transfers: 
‘‘(A) Sales or transfers to a Federal agency if 
the material is transferred for the use of the receiv-
ing agency without any resale or transfer to another
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entity and the material does not meet commercial 
specifications. 
‘‘(B) Sales or transfers to any person for na-
tional security purposes, as determined by the Sec-
retary. 
‘‘(C) Sales or transfers to any State or local 
agency or nonprofit, charitable, or educational insti-
tution for use other than the generation of electricity 
for commercial use. 
‘‘(D) Sales or transfers to the Department of 
Energy research reactor sales program. 
‘‘(E) Sales or transfers, at fair market value, 
for emergency purposes in the event of a disruption 
in supply to commercial nuclear power end users in 
the United States. 
‘‘(F) Sales or transfers, at fair market value, 
for use in a commercial reactor in the United States 
with nonstandard fuel requirements. 
‘‘(G) Sales or transfers provided for under law 
for use by the Tennessee Valley Authority in relation 
to the Department of Energy’s highly enriched ura-
nium or tritium programs. 
‘‘(6) For purposes of this subsection, the term 
‘United States Government’ does not include the Ten-
nessee Valley Authority.
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‘‘(e) SAVINGS PROVISION.—Nothing in this sub-
chapter modifies the terms of the Russian HEU Agree-
ment. 
‘‘(f) SERVICES.—Notwithstanding any other provi-
sion of this section, if the Secretary determines that the 
Corporation has failed, or may fail, to perform any obliga-
tion under the Agreement between the Department of En-
ergy and the Corporation dated June 17, 2002, and as 
amended thereafter, which failure could result in termi-
nation of the Agreement, the Secretary shall notify Con-
gress, in such a manner that affords Congress an oppor-
tunity to comment, prior to a determination by the Sec-
retary whether termination, waiver, or modification of the 
Agreement is required. The Secretary is authorized to take 
such action as he determines necessary under the Agree-
ment to terminate, waive, or modify provisions of the 
Agreement to achieve its purposes.’’. 
(b) REPORT.—Not later than 3 years after the date 
of enactment of this Act, the Secretary of Energy shall 
report to Congress on the implementation of this section. 
The report shall include a discussion of available excess 
uranium inventories; all sales or transfers made by the 
United States Government; the impact of such sales or 
transfers on the domestic uranium industry, the spot mar-
ket uranium price, and the national security interests of
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the United States; and any steps taken to remediate any 
adverse impacts of such sales or transfers. 
SEC. 631. COOPERATIVE RESEARCH AND DEVELOPMENT 
AND SPECIAL DEMONSTRATION PROJECTS 
FOR THE URANIUM MINING INDUSTRY. 
(a) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy $10,000,000 for each of fiscal years 2004, 2005, and 
2006 for— 
(1) cooperative, cost-shared agreements between 
the Department of Energy and domestic uranium 
producers to identify, test, and develop improved in 
situ leaching mining technologies, including low-cost 
environmental restoration technologies that may be 
applied to sites after completion of in situ leaching 
operations; and 
(2) funding for competitively selected dem-
onstration projects with domestic uranium producers 
relating to— 
(A) enhanced production with minimal en-
vironmental impacts; 
(B) restoration of well fields; and 
(C) decommissioning and decontamination 
activities.
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(b) DOMESTIC URANIUM PRODUCER.—For purposes 
of this section, the term ‘‘domestic uranium producer’’ has 
the meaning given that term in section 1018(4) of the En-
ergy Policy Act of 1992 (42 U.S.C. 2296b–7(4)), except 
that the term shall not include any producer that has not 
produced uranium from domestic reserves on or after July 
30, 1998. 
(c) LIMITATION.—No activities funded under this 
section may be carried out in the State of New Mexico. 
SEC. 632. WHISTLEBLOWER PROTECTION. 
(a) DEFINITION OF EMPLOYER.—Section 211(a)(2) 
of the Energy Reorganization Act of 1974 (42 U.S.C. 
5851(a)(2)) is amended— 
(1) in subparagraph (C), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (D), by striking the period 
at the end and inserting ‘‘; and’’ and 
(3) by adding at the end the following: 
‘‘(E) a contractor or subcontractor of the 
Commission.’’. 
(b) DE NOVO REVIEW.—Subsection (b) of such sec-
tion 211 is amended by adding at the end the following 
new paragraph: 
‘‘(4) If the Secretary has not issued a final de-
cision within 540 days after the filing of a complaint
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under paragraph (1), and there is no showing that 
such delay is due to the bad faith of the person 
seeking relief under this paragraph, such person 
may bring an action at law or equity for de novo re-
view in the appropriate district court of the United 
States, which shall have jurisdiction over such an ac-
tion without regard to the amount in controversy.’’. 
SEC. 633. MEDICAL ISOTOPE PRODUCTION. 
Section 134 of the Atomic Energy Act of 1954 (42 
U.S.C. 2160d) is amended— 
(1) in subsection a., by striking ‘‘a. The Com-
mission’’ and inserting ‘‘a. IN GENERAL.—Except as 
provided in subsection b., the Commission’’; 
(2) by redesignating subsection b. as subsection 
c.; and 
(3) by inserting after subsection a. the fol-
lowing: 
‘‘b. MEDICAL ISOTOPE PRODUCTION.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) HIGHLY ENRICHED URANIUM.—The 
term ‘highly enriched uranium’ means uranium 
enriched to include concentration of U–235 
above 20 percent. 
‘‘(B) MEDICAL ISOTOPE.—The term ‘med-
ical isotope’ includes Molybdenum 99, Iodine
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131, Xenon 133, and other radioactive mate-
rials used to produce a radiopharmaceutical for 
diagnostic, therapeutic procedures or for re-
search and development. 
‘‘(C) RADIOPHARMACEUTICAL.—The term 
‘radiopharmaceutical’ means a radioactive iso-
tope that— 
‘‘(i) contains byproduct material com-
bined with chemical or biological material; 
and 
‘‘(ii) is designed to accumulate tempo-
rarily in a part of the body for therapeutic 
purposes or for enabling the production of 
a useful image for use in a diagnosis of a 
medical condition. 
‘‘(D) RECIPIENT COUNTRY.—The term ‘re-
cipient 
country’ 
means 
Canada, 
Belgium, 
France, Germany, and the Netherlands. 
‘‘(2) LICENSES.—The Commission may issue a 
license authorizing the export (including shipment to 
and use at intermediate and ultimate consignees 
specified in the license) to a recipient country of 
highly enriched uranium for medical isotope produc-
tion if, in addition to any other requirements of this
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Act (except subsection a.), the Commission deter-
mines that— 
‘‘(A) a recipient country that supplies an 
assurance letter to the United States Govern-
ment in connection with the consideration by 
the Commission of the export license applica-
tion has informed the United States Govern-
ment that any intermediate consignees and the 
ultimate consignee specified in the application 
are required to use the highly enriched uranium 
solely to produce medical isotopes; and 
‘‘(B) the highly enriched uranium for med-
ical isotope production will be irradiated only in 
a reactor in a recipient country that— 
‘‘(i) uses an alternative nuclear reac-
tor fuel; or 
‘‘(ii) is the subject of an agreement 
with the United States Government to con-
vert to an alternative nuclear reactor fuel 
when alternative nuclear reactor fuel can 
be used in the reactor. 
‘‘(3) REVIEW
OF
PHYSICAL
PROTECTION
RE-
QUIREMENTS.— 
‘‘(A) IN GENERAL.—The Commission shall 
review the adequacy of physical protection re-
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quirements that, as of the date of an applica-
tion under paragraph (2), are applicable to the 
transportation and storage of highly enriched 
uranium for medical isotope production or con-
trol of residual material after irradiation and 
extraction of medical isotopes. 
‘‘(B) IMPOSITION
OF
ADDITIONAL
RE-
QUIREMENTS.—If the Commission determines 
that additional physical protection requirements 
are necessary (including a limit on the quantity 
of highly enriched uranium that may be con-
tained in a single shipment), the Commission 
shall impose such requirements as license condi-
tions or through other appropriate means. 
‘‘(4) FIRST REPORT TO CONGRESS.— 
‘‘(A) NAS STUDY.—The Secretary shall 
enter into an arrangement with the National 
Academy of Sciences to conduct a study to de-
termine— 
‘‘(i) the feasibility of procuring sup-
plies of medical isotopes from commercial 
sources that do not use highly enriched 
uranium;
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‘‘(ii) the current and projected de-
mand and availability of medical isotopes 
in regular current domestic use; 
‘‘(iii) the progress that is being made 
by the Department of Energy and others 
to eliminate all use of highly enriched ura-
nium in reactor fuel, reactor targets, and 
medical isotope production facilities; and 
‘‘(iv) the potential cost differential in 
medical isotope production in the reactors 
and target processing facilities if the prod-
ucts were derived from production systems 
that do not involve fuels and targets with 
highly enriched uranium. 
‘‘(B) FEASIBILITY.—For the purpose of 
this subsection, the use of low enriched uranium 
to produce medical isotopes shall be determined 
to be feasible if— 
‘‘(i) low enriched uranium targets 
have been developed and demonstrated for 
use in the reactors and target processing 
facilities that produce significant quantities 
of medical isotopes to serve United States 
needs for such isotopes;
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‘‘(ii) sufficient quantities of medical 
isotopes are available from low enriched 
uranium targets and fuel to meet United 
States domestic needs; and 
‘‘(iii) the average anticipated total 
cost increase from production of medical 
isotopes in such facilities without use of 
highly enriched uranium is less than 10 
percent. 
‘‘(C) REPORT BY THE SECRETARY.—Not 
later than 5 years after the date of enactment 
of the Energy Policy Act of 2003, the Secretary 
shall submit to Congress a report that— 
‘‘(i) contains the findings of the Na-
tional Academy of Sciences made in the 
study under subparagraph (A); and 
‘‘(ii) discloses the existence of any 
commitments from commercial producers 
to provide domestic requirements for med-
ical isotopes without use of highly enriched 
uranium consistent with the feasibility cri-
teria described in subparagraph (B) not 
later than the date that is 4 years after 
the date of submission of the report.
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‘‘(5) SECOND REPORT TO CONGRESS.—If the 
study of the National Academy of Sciences deter-
mines under paragraph (4)(A)(i) that the procure-
ment of supplies of medical isotopes from commer-
cial sources that do not use highly enriched uranium 
is feasible, but the Secretary is unable to report the 
existence 
of 
commitments 
under 
paragraph 
(4)(C)(ii), not later than the date that is 6 years 
after the date of enactment of the Energy Policy Act 
of 2003, the Secretary shall submit to Congress a 
report that describes options for developing domestic 
supplies of medical isotopes in quantities that are 
adequate to meet domestic demand without the use 
of highly enriched uranium consistent with the cost 
increase described in paragraph (4)(B)(iii). 
‘‘(6) CERTIFICATION.—At such time as com-
mercial facilities that do not use highly enriched 
uranium are capable of meeting domestic require-
ments for medical isotopes, within the cost increase 
described in paragraph (4)(B)(iii) and without im-
pairing the reliable supply of medical isotopes for 
domestic utilization, the Secretary shall submit to 
Congress a certification to that effect. 
‘‘(7) SUNSET PROVISION.—After the Secretary 
submits a certification under paragraph (6), the
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Commission shall, by rule, terminate its review of 
export license applications under this subsection.’’. 
SEC. 634. FERNALD BYPRODUCT MATERIAL. 
Notwithstanding any other law, the material in the 
concrete silos at the Fernald uranium processing facility 
managed on the date of enactment of this Act by the De-
partment of Energy shall be considered byproduct mate-
rial (as defined by section 11 e.(2) of the Atomic Energy 
Act of 1954 (42 U.S.C. 2014(e)(2))). The Department of 
Energy may dispose of the material in a facility regulated 
by the Nuclear Regulatory Commission or by an Agree-
ment State. If the Department of Energy disposes of the 
material in such a facility, the Nuclear Regulatory Com-
mission or the Agreement State shall regulate the material 
as byproduct material under that Act. This material shall 
remain subject to the jurisdiction of the Department of 
Energy until it is received at a commercial, Nuclear Regu-
latory Commission-licensed, or Agreement State-licensed 
facility, at which time the material shall be subject to the 
health and safety requirements of the Nuclear Regulatory 
Commission or the Agreement State with jurisdiction over 
the disposal site.
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SEC. 635. SAFE DISPOSAL OF GREATER-THAN-CLASS C RA-
DIOACTIVE WASTE. 
(a) DESIGNATION OF RESPONSIBILITY.—The Sec-
retary of Energy shall designate an Office within the De-
partment of Energy to have the responsibility for activities 
needed to develop a new, or use an existing, facility for 
safely disposing of all low-level radioactive waste with con-
centrations of radionuclides that exceed the limits estab-
lished by the Nuclear Regulatory Commission for Class 
C radioactive waste (referred to in this section as ‘‘GTCC 
waste’’). 
(b) COMPREHENSIVE PLAN.—The Secretary of En-
ergy shall develop a comprehensive plan for permanent 
disposal of GTCC waste which includes plans for a dis-
posal facility. This plan shall be transmitted to Congress 
in a series of reports, including the following: 
(1) REPORT ON SHORT-TERM PLAN.—Not later 
than 180 days after the date of enactment of this 
Act, the Secretary of Energy shall submit to Con-
gress a plan describing the Secretary’s operational 
strategy for continued recovery and storage of 
GTCC waste until a permanent disposal facility is 
available. 
(2) UPDATE OF 1987 REPORT.— 
(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of this Act, the Sec-
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retary of Energy shall submit to Congress an 
update of the Secretary’s February 1987 report 
submitted to Congress that made comprehen-
sive recommendations for the disposal of GTCC 
waste. 
(B) CONTENTS.—The update under this 
paragraph shall contain— 
(i) a detailed description and identi-
fication of the GTCC waste that is to be 
disposed; 
(ii) a description of current domestic 
and international programs, both Federal 
and commercial, for management and dis-
position of GTCC waste; 
(iii) an identification of the Federal 
and private options and costs for the safe 
disposal of GTCC waste; 
(iv) an identification of the options for 
ensuring that, wherever possible, genera-
tors and users of GTCC waste bear all rea-
sonable costs of waste disposal; 
(v) an identification of any new statu-
tory authority required for disposal of 
GTCC waste; and
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(vi) in coordination with the Environ-
mental Protection Agency and the Nuclear 
Regulatory Commission, an identification 
of any new regulatory guidance needed for 
the disposal of GTCC waste. 
(3) REPORT
ON
COST
AND
SCHEDULE
FOR 
COMPLETION
OF
ENVIRONMENTAL
IMPACT
STATE-
MENT AND RECORD OF DECISION.—Not later than 
180 days after the date of submission of the update 
required under paragraph (2), the Secretary of En-
ergy shall submit to Congress a report containing an 
estimate of the cost and schedule to complete a draft 
and final environmental impact statement and to 
issue a record of decision for a permanent disposal 
facility, utilizing either a new or existing facility, for 
GTCC waste. 
SEC. 636. PROHIBITION ON NUCLEAR EXPORTS TO COUN-
TRIES THAT SPONSOR TERRORISM. 
(a) IN GENERAL.—Section 129 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2158) is amended— 
(1) by inserting ‘‘a.’’ before ‘‘No nuclear mate-
rials and equipment’’; and 
(2) by adding at the end the following new sub-
section:
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‘‘b.(1) Notwithstanding any other provision of law, 
including specifically section 121 of this Act, and except 
as provided in paragraphs (2) and (3), no nuclear mate-
rials and equipment or sensitive nuclear technology, in-
cluding items and assistance authorized by section 57 b. 
of this Act and regulated under part 810 of title 10, Code 
of Federal Regulations, and nuclear-related items on the 
Commerce Control List maintained under part 774 of title 
15 of the Code of Federal Regulations, shall be exported 
or reexported, or transferred or retransferred whether di-
rectly or indirectly, and no Federal agency shall issue any 
license, approval, or authorization for the export or reex-
port, or transfer, or retransfer, whether directly or indi-
rectly, of these items or assistance (as defined in this para-
graph) to any country whose government has been identi-
fied by the Secretary of State as engaged in state sponsor-
ship of terrorist activities (specifically including any coun-
try the government of which has been determined by the 
Secretary of State under section 620A(a) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2371(a)), section 
6(j)(1) of the Export Administration Act of 1979 (50 
U.S.C. App. 2405(j)(1)), or section 40(d) of the Arms Ex-
port Control Act (22 U.S.C. 2780(d)) to have repeatedly 
provided support for acts of international terrorism).
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‘‘(2) This subsection shall not apply to exports, reex-
ports, transfers, or retransfers of radiation monitoring 
technologies, surveillance equipment, seals, cameras, tam-
per-indication devices, nuclear detectors, monitoring sys-
tems, or equipment necessary to safely store, transport, 
or remove hazardous materials, whether such items, serv-
ices, or information are regulated by the Department of 
Energy, the Department of Commerce, or the Nuclear 
Regulatory Commission, except to the extent that such 
technologies, equipment, seals, cameras, devices, detectors, 
or systems are available for use in the design or construc-
tion of nuclear reactors or nuclear weapons. 
‘‘(3) The President may waive the application of 
paragraph (1) to a country if the President determines 
and certifies to Congress that the waiver will not result 
in any increased risk that the country receiving the waiver 
will acquire nuclear weapons, nuclear reactors, or any ma-
terials or components of nuclear weapons and— 
‘‘(A) the government of such country has not 
within the preceding 12-month period willfully aided 
or abetted the international proliferation of nuclear 
explosive devices to individuals or groups or willfully 
aided and abetted an individual or groups in acquir-
ing unsafeguarded nuclear materials;
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‘‘(B) in the judgment of the President, the gov-
ernment of such country has provided adequate, 
verifiable assurances that it will cease its support for 
acts of international terrorism; 
‘‘(C) the waiver of that paragraph is in the vital 
national security interest of the United States; or 
‘‘(D) such a waiver is essential to prevent or re-
spond to a serious radiological hazard in the country 
receiving the waiver that may or does threaten pub-
lic health and safety.’’. 
(b) APPLICABILITY
TO EXPORTS APPROVED
FOR 
TRANSFER BUT NOT TRANSFERRED.—Subsection b. of 
section 129 of Atomic Energy Act of 1954, as added by 
subsection (a) of this section, shall apply with respect to 
exports that have been approved for transfer as of the date 
of the enactment of this Act but have not yet been trans-
ferred as of that date. 
SEC. 637. URANIUM ENRICHMENT FACILITIES. 
(a) NUCLEAR REGULATORY COMMISSION REVIEW OF 
APPLICATIONS.— 
(1) IN GENERAL.—In order to facilitate a time-
ly review and approval of an application in a pro-
ceeding for a license for the construction and oper-
ation of a uranium enrichment facility under sec-
tions 53 and 63 of the Atomic Energy Act of 1954
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(42 U.S.C. 2073, 2093) (referred to in this sub-
section as a ‘‘covered proceeding’’), the Nuclear Reg-
ulatory Commission shall, not later than 30 days 
after the receipt of the application, establish, by 
order, the schedule for the conduct of any hearing 
that may be requested by any person whose interest 
may be affected by the covered proceeding. 
(2) FINAL
AGENCY
DECISION.—The schedule 
shall provide that a final decision by the Commission 
on the application shall be made not later than the 
date that is 2 years after the date of submission of 
the application by the applicant. 
(3) COMPLIANCE WITH SCHEDULE.— 
(A) IN GENERAL.—The Commission shall 
establish a process to assess compliance with 
the schedule established under paragraph (1) 
on an ongoing basis during the course of the re-
view of the application, including ensuring com-
pliance with schedules and milestones that are 
established for the conduct of any covered pro-
ceeding by the Atomic Safety and Licensing 
Board. 
(B) REPORT.—The Commission shall sub-
mit to Congress on a bimonthly basis a report 
describing the status of compliance with the
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schedule established under paragraph (1), in-
cluding a description of the status of actions re-
quired to be completed pursuant to the schedule 
by officers and employees of— 
(i) the Commission in undertaking the 
safety and environmental review of applica-
tions; and 
(ii) the Atomic Safety and Licensing 
Board in the conduct of any covered pro-
ceeding. 
(4) ENVIRONMENTAL REVIEW.— 
(A) IN GENERAL.—In evaluating an appli-
cation under the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.) for licens-
ing of a facility in a covered proceeding, the 
Commission shall limit the consideration of 
need to whether the licensing of the facility 
would advance the national interest of encour-
aging in the United States— 
(i) additional secure, reliable uranium 
enrichment capacity; 
(ii) diverse supplies and suppliers of 
uranium enrichment capacity; and 
(iii) the deployment of advanced cen-
trifuge enrichment technology.
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(B) COMMENT.—In carrying out subpara-
graph (A), the Commission shall consider and 
solicit the views of other affected Federal agen-
cies. 
(C) ATOMIC
SAFETY
AND
LICENSING 
BOARD.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), in any covered proceeding, 
the Commission shall allow the litigation 
and resolution by the Atomic Safety and 
Licensing Board of issues arising under 
the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.), on the 
basis of information submitted by the ap-
plicant in its environmental report, prior to 
publication of any required environmental 
impact statement. 
(ii) EXCEPTIONS.—On the publication 
of any required environmental impact 
statement, issues may be proffered for res-
olution by the Atomic Safety and Licensing 
Board only if information or conclusions in 
the environmental impact statement differ 
significantly from the information or con-
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clusions in the environmental report sub-
mitted by the applicant. 
(D) ENVIRONMENTAL JUSTICE.—In a cov-
ered proceeding, the Commission shall apply the 
criteria in Appendix C of the final report enti-
tled ‘‘Environmental Review Guidance for Li-
censing Actions Associated with NMSS Pro-
grams’’ (NUREG–1748), published in August 
2003, in any required review of environmental 
justice. 
(5) LOW-LEVEL WASTE.—In any covered pro-
ceeding, the Commission shall— 
(A) deem the obligation of the Secretary of 
Energy pursuant to section 3113 of the USEC 
Privitization Act (42 U.S.C. 2297 h-11) to con-
stitute a plausible strategy with regard to the 
disposition of depleted uranium generated by 
such facility; and 
(B) treat any residual material that re-
mains following the extraction of any usable re-
source value from depleted uranium as low-level 
radioactive waste under part 61 of title 10, 
Code of Federal Regulations. 
(6) ADJUDICATORY HEARING ON LICENSING OF 
URANIUM ENRICHMENT FACILITIES.—Section 193(b)
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HR 4503 RDS 
of the Atomic Energy Act of 1954 (42 U.S.C. 
2243(b)) is amended by striking paragraph (2) and 
inserting the following: 
‘‘(2) TIMING.—On the issuance of a final deci-
sion on the application by the Atomic Safety and Li-
censing Board, the Commission shall issue and make 
immediately effective any license for the construction 
and operation of a uranium enrichment facility 
under sections 53 and 63, on a determination by the 
Commission that the issuance of the license would 
not cause irreparable injury to the public health and 
safety or the common defense and security, notwith-
standing the pendency before the Commission of any 
appeal or petition for review of any decision of the 
Atomic Safety and Licensing Board.’’. 
(b) DEPARTMENT OF ENERGY RESPONSIBILITIES.— 
(1) IN
GENERAL.—Not later than 180 days 
after a request is made to the Secretary of Energy 
by an applicant for or recipient of a license for a 
uranium enrichment facility under section 53, 63, or 
193 of the Atomic Energy Act of 1954 ((42 U.S.C. 
2073, 2093, 2243), the Secretary shall enter into a 
memorandum of agreement with the applicant or li-
censee that provides a schedule for the transfer to 
the Secretary, not later than 5 years after the gen-
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HR 4503 RDS 
eration of any depleted uranium hexafluoride, of title 
and possession of the depleted uranium hexafluoride 
to be generated by the applicant or licensee. 
(2) COST.— 
(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), the memorandum of agree-
ment shall specify the cost to be assessed by the 
Secretary for the transfer to the Secretary of 
the depleted uranium hexafluoride. 
(B) 
NONDISCRIMINATORY
BASIS.—The 
cost shall be determined by the Secretary on a 
nondiscriminatory basis. 
(C) COST.—Taking into account the phys-
ical and chemical characteristics of such de-
pleted uranium hexafluoride, the cost shall not 
exceed the cost assessed by the Secretary for 
the acceptance of depleted uranium hexafluoride 
under— 
(i) the memorandum of agreement be-
tween the United States Department of 
Energy and the United States Enrichment 
Corporation Relating to Depleted Ura-
nium, dated June 30, 1998; and
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(ii) the Agreement Between the U.S. 
Department of Energy and USEC Inc., 
dated June 17, 2002. 
SEC. 638. NATIONAL URANIUM STOCKPILE. 
(a) STOCKPILE CREATION.—The Secretary of En-
ergy may create a national low-enriched uranium stockpile 
with the goals to— 
(1) enhance national energy security; and 
(2) reduce global proliferation threats. 
(b) SOURCE OF MATERIAL.—The Secretary shall ob-
tain material for the stockpile from— 
(1) material derived from blend-down of Rus-
sian highly enriched uranium derived from weapons 
materials; and 
(2) domestically mined and enriched uranium. 
(c) LIMITATION ON SALES OR TRANSFERS.—Sales or 
transfer of materials in the stockpile shall occur pursuant 
to section 3112 of the USEC Privitization Act (42 U.S.C. 
2297h–10), as amended by section 630 of this Act. 
Subtitle C—Advanced Reactor 
Hydrogen Cogeneration Project 
SEC. 651. PROJECT ESTABLISHMENT. 
The Secretary of Energy (in this subtitle referred to 
as the ‘‘Secretary’’) is directed to establish an Advanced 
Reactor Hydrogen Cogeneration Project.
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SEC. 652. PROJECT DEFINITION. 
The project shall consist of the research, develop-
ment, design, construction, and operation of a hydrogen 
production cogeneration research facility that, relative to 
the current commercial reactors, enhances safety features, 
reduces waste production, enhances thermal efficiencies, 
increases proliferation resistance, and has the potential for 
improved economics and physical security in reactor siting. 
This facility shall be constructed so as to enable research 
and development on advanced reactors of the type selected 
and on alternative approaches for reactor-based produc-
tion of hydrogen. 
SEC. 653. PROJECT MANAGEMENT. 
(a) MANAGEMENT.—The project shall be managed 
within the Department by the Office of Nuclear Energy, 
Science, and Technology. 
(b) LEAD LABORATORY.—The lead laboratory for the 
project, providing the site for the reactor construction, 
shall be the Idaho National Engineering and Environ-
mental Laboratory (in this subtitle referred to as 
‘‘INEEL’’). 
(c) STEERING COMMITTEE.—The Secretary shall es-
tablish a national steering committee with membership 
from the national laboratories, universities, and industry 
to provide advice to the Secretary and the Director of the
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Office of Nuclear Energy, Science, and Technology on 
technical and program management aspects of the project. 
(d) COLLABORATION.—Project activities shall be con-
ducted at INEEL, other national laboratories, univer-
sities, domestic industry, and international partners. 
SEC. 654. PROJECT REQUIREMENTS. 
(a) RESEARCH AND DEVELOPMENT.— 
(1) IN
GENERAL.—The project shall include 
planning, research and development, design, and 
construction of an advanced, next-generation, nu-
clear energy system suitable for enabling further re-
search and development on advanced reactor tech-
nologies and alternative approaches for reactor-based 
generation of hydrogen. 
(2) REACTOR TEST CAPABILITIES AT INEEL.— 
The project shall utilize, where appropriate, exten-
sive reactor test capabilities resident at INEEL. 
(3) ALTERNATIVES.—The project shall be de-
signed to explore technical, environmental, and eco-
nomic feasibility of alternative approaches for reac-
tor-based hydrogen production. 
(4) INDUSTRIAL LEAD.—The industrial lead for 
the project shall be a company incorporated in the 
United States. 
(b) INTERNATIONAL COLLABORATION.—
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(1) IN
GENERAL.—The Secretary shall seek 
international cooperation, participation, and finan-
cial contribution in this project. 
(2) ASSISTANCE FROM INTERNATIONAL PART-
NERS.—The Secretary may contract for assistance 
from specialists or facilities from member countries 
of the Generation IV International Forum, the Rus-
sian Federation, or other international partners 
where such specialists or facilities provide access to 
cost-effective and relevant skills or test capabilities. 
(3) GENERATION IV INTERNATIONAL FORUM.— 
International activities shall be coordinated with the 
Generation IV International Forum. 
(4) GENERATION
IV
NUCLEAR
ENERGY
SYS-
TEMS PROGRAM.—The Secretary may combine this 
project with the Generation IV Nuclear Energy Sys-
tems Program. 
(c) DEMONSTRATION.—The overall project, which 
may involve demonstration of selected project objectives 
in a partner nation, must demonstrate both electricity and 
hydrogen production and may provide flexibility, where 
technically and economically feasible in the design and 
construction, to enable tests of alternative reactor core 
and cooling configurations.
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(d) PARTNERSHIPS.—The Secretary shall establish 
cost-shared partnerships with domestic industry or inter-
national participants for the research, development, de-
sign, construction, and operation of the research facility, 
and preference in determining the final project structure 
shall be given to an overall project which retains United 
States leadership while maximizing cost sharing opportu-
nities and minimizing Federal funding responsibilities. 
(e) TARGET DATE.—The Secretary shall select tech-
nologies and develop the project to provide initial testing 
of either hydrogen production or electricity generation by 
2010, or provide a report to Congress explaining why this 
date is not feasible. 
(f) WAIVER
OF CONSTRUCTION TIMELINES.—The 
Secretary is authorized to conduct the Advanced Reactor 
Hydrogen Cogeneration Project without the constraints of 
DOE Order 413.3, relating to program and project man-
agement for the acquisition of capital assets, as necessary 
to meet the specified operational date. 
(g) COMPETITION.—The Secretary may fund up to 
2 teams for up to 1 year to develop detailed proposals for 
competitive evaluation and selection of a single proposal 
and concept for further progress. The Secretary shall de-
fine the format of the competitive evaluation of proposals.
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HR 4503 RDS 
(h) USE OF FACILITIES.—Research facilities in in-
dustry, national laboratories, or universities either within 
the United States or with cooperating international part-
ners may be used to develop the enabling technologies for 
the research facility. Utilization of domestic university- 
based facilities shall be encouraged to provide educational 
opportunities for student development. 
(i) ROLE OF NUCLEAR REGULATORY COMMISSION.— 
(1) IN
GENERAL.—The Nuclear Regulatory 
Commission shall have licensing and regulatory au-
thority for any reactor authorized under this sub-
title, pursuant to section 202 of the Energy Reorga-
nization Act of 1974 (42 U.S.C. 5842). 
(2) RISK-BASED
CRITERIA.—The Secretary 
shall seek active participation of the Nuclear Regu-
latory Commission throughout the project to develop 
risk-based criteria for any future commercial devel-
opment of a similar reactor architecture. 
(j) REPORT.—The Secretary shall develop and trans-
mit to Congress a comprehensive project plan not later 
than April 30, 2004. The project plan shall be updated 
annually with each annual budget submission. 
SEC. 655. AUTHORIZATION OF APPROPRIATIONS. 
(a) RESEARCH, DEVELOPMENT, AND DESIGN PRO-
GRAMS.—The following sums are authorized to be appro-
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HR 4503 RDS 
priated to the Secretary for all activities under this sub-
title except for construction activities described in sub-
section (b): 
(1) For fiscal year 2004, $35,000,000. 
(2) For each of fiscal years 2005 through 2008, 
$150,000,000. 
(3) For fiscal years beyond 2008, such sums as 
are necessary. 
(b) CONSTRUCTION.—There are authorized to be ap-
propriated to the Secretary for all project-related con-
struction activities, to be available until expended, 
$500,000,000. 
Subtitle D—Nuclear Security 
SEC. 661. NUCLEAR FACILITY THREATS. 
(a) STUDY.—The President, in consultation with the 
Nuclear Regulatory Commission (referred to in this sub-
title as the ‘‘Commission’’) and other appropriate Federal, 
State, and local agencies and private entities, shall con-
duct a study to identify the types of threats that pose an 
appreciable risk to the security of the various classes of 
facilities licensed by the Commission under the Atomic 
Energy Act of 1954 (42 U.S.C. 2011 et seq.). Such study 
shall take into account, but not be limited to— 
(1) the events of September 11, 2001;
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(2) an assessment of physical, cyber, bio-
chemical, and other terrorist threats; 
(3) the potential for attack on facilities by mul-
tiple coordinated teams of a large number of individ-
uals; 
(4) the potential for assistance in an attack 
from several persons employed at the facility; 
(5) the potential for suicide attacks; 
(6) the potential for water-based and air-based 
threats; 
(7) the potential use of explosive devices of con-
siderable size and other modern weaponry; 
(8) the potential for attacks by persons with a 
sophisticated knowledge of facility operations; 
(9) the potential for fires, especially fires of 
long duration; 
(10) the potential for attacks on spent fuel 
shipments by multiple coordinated teams of a large 
number of individuals; 
(11) the adequacy of planning to protect the 
public health and safety at and around nuclear fa-
cilities, as appropriate, in the event of a terrorist at-
tack against a nuclear facility; and 
(12) the potential for theft and diversion of nu-
clear materials from such facilities.
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(b) SUMMARY AND CLASSIFICATION REPORT.—Not 
later than 180 days after the date of the enactment of 
this Act, the President shall transmit to Congress and the 
Commission a report— 
(1) summarizing the types of threats identified 
under subsection (a); and 
(2) classifying each type of threat identified 
under subsection (a), in accordance with existing 
laws and regulations, as either— 
(A) involving attacks and destructive acts, 
including sabotage, directed against the facility 
by an enemy of the United States, whether a 
foreign government or other person, or other-
wise falling under the responsibilities of the 
Federal Government; or 
(B) involving the type of risks that Com-
mission licensees should be responsible for 
guarding against. 
(c) FEDERAL ACTION REPORT.—Not later than 90 
days after the date on which a report is transmitted under 
subsection (b), the President shall transmit to Congress 
a report on actions taken, or to be taken, to address the 
types of threats identified under subsection (b)(2)(A), in-
cluding identification of the Federal, State, and local 
agencies responsible for carrying out the obligations and
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authorities of the United States. Such report may include 
a classified annex, as appropriate. 
(d) REGULATIONS.—Not later than 180 days after 
the date on which a report is transmitted under subsection 
(b), the Commission may revise, by rule, the design basis 
threats issued before the date of enactment of this section 
as the Commission considers appropriate based on the 
summary and classification report. 
(e) PHYSICAL SECURITY PROGRAM.—The Commis-
sion shall establish an operational safeguards response 
evaluation program that ensures that the physical protec-
tion capability and operational safeguards response for 
sensitive nuclear facilities, as determined by the Commis-
sion consistent with the protection of public health and 
the common defense and security, shall be tested periodi-
cally through Commission approved or designed, observed, 
and evaluated force-on-force exercises to determine wheth-
er the ability to defeat the design basis threat is being 
maintained. For purposes of this subsection, the term 
‘‘sensitive nuclear facilities’’ includes at a minimum com-
mercial nuclear power plants and category I fuel cycle fa-
cilities. 
(f) CONTROL
OF INFORMATION.—Notwithstanding 
any other provision of law, the Commission may undertake 
any rulemaking under this subtitle in a manner that will
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fully protect safeguards and classified national security in-
formation. 
(g) FEDERAL SECURITY COORDINATORS.— 
(1) REGIONAL
OFFICES.—Not later than 18 
months after the date of enactment of this Act, the 
Commission shall assign a Federal security coordi-
nator, under the employment of the Commission, to 
each region of the Commission. 
(2) RESPONSIBILITIES.—The Federal security 
coordinator shall be responsible for— 
(A) communicating with the Commission 
and other Federal, State, and local authorities 
concerning threats, including threats against 
such classes of facilities as the Commission de-
termines to be appropriate; 
(B) ensuring that such classes of facilities 
as the Commission determines to be appropriate 
maintain security consistent with the security 
plan in accordance with the appropriate threat 
level; and 
(C) assisting in the coordination of secu-
rity measures among the private security forces 
at such classes of facilities as the Commission 
determines to be appropriate and Federal, 
State, and local authorities, as appropriate.
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(h) TRAINING PROGRAM.—The President shall estab-
lish a program to provide technical assistance and training 
to Federal agencies, the National Guard, and State and 
local law enforcement and emergency response agencies in 
responding to threats against a designated nuclear facility. 
SEC. 
662. 
FINGERPRINTING 
FOR 
CRIMINAL 
HISTORY 
RECORD CHECKS. 
(a) IN GENERAL.—Subsection a. of section 149 of 
the Atomic Energy Act of 1954 (42 U.S.C. 2169(a)) is 
amended— 
(1) by striking ‘‘a. The Nuclear’’ and all that 
follows through ‘‘section 147.’’ and inserting the fol-
lowing: 
‘‘a. IN GENERAL.— 
‘‘(1) REQUIREMENTS.— 
‘‘(A) IN GENERAL.—The Commission shall 
require each individual or entity— 
‘‘(i) that is licensed or certified to en-
gage in an activity subject to regulation by 
the Commission; 
‘‘(ii) that has filed an application for 
a license or certificate to engage in an ac-
tivity subject to regulation by the Commis-
sion; or
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‘‘(iii) that has notified the Commis-
sion, in writing, of an intent to file an ap-
plication for licensing, certification, permit-
ting, or approval of a product or activity 
subject to regulation by the Commission, 
to fingerprint each individual described in sub-
paragraph (B) before the individual is per-
mitted unescorted access or access, whichever is 
applicable, as described in subparagraph (B). 
‘‘(B) INDIVIDUALS
REQUIRED
TO
BE 
FINGERPRINTED.—The Commission shall re-
quire to be fingerprinted each individual who— 
‘‘(i) is permitted unescorted access 
to— 
‘‘(I) a utilization facility; or 
‘‘(II) 
radioactive 
material 
or 
other property subject to regulation 
by the Commission that the Commis-
sion determines to be of such signifi-
cance to the public health and safety 
or the common defense and security 
as to warrant fingerprinting and back-
ground checks; or 
‘‘(ii) is permitted access to safeguards 
information under section 147.’’;
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(2) by striking ‘‘All fingerprints obtained by a 
licensee or applicant as required in the preceding 
sentence’’ and inserting the following: 
‘‘(2) SUBMISSION
TO
THE
ATTORNEY
GEN-
ERAL.—All fingerprints obtained by an individual or 
entity as required in paragraph (1)’’; 
(3) by striking ‘‘The costs of any identification 
and records check conducted pursuant to the pre-
ceding sentence shall be paid by the licensee or ap-
plicant.’’ and inserting the following: 
‘‘(3) COSTS.—The costs of any identification 
and records check conducted pursuant to paragraph 
(1) shall be paid by the individual or entity required 
to conduct the fingerprinting under paragraph 
(1)(A).’’; and 
(4) by striking ‘‘Notwithstanding any other pro-
vision of law, the Attorney General may provide all 
the results of the search to the Commission, and, in 
accordance with regulations prescribed under this 
section, the Commission may provide such results to 
licensee or applicant submitting such fingerprints.’’ 
and inserting the following: 
‘‘(4) PROVISION TO INDIVIDUAL OR ENTITY RE-
QUIRED
TO
CONDUCT
FINGERPRINTING.—Notwith-
standing any other provision of law, the Attorney
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General may provide all the results of the search to 
the Commission, and, in accordance with regulations 
prescribed under this section, the Commission may 
provide such results to the individual or entity re-
quired to conduct the fingerprinting under para-
graph (1)(A).’’. 
(b) ADMINISTRATION.—Subsection c. of section 149 
of the Atomic Energy Act of 1954 (42 U.S.C. 2169(c)) 
is amended— 
(1) by striking ‘‘, subject to public notice and 
comment, regulations—’’ and inserting ‘‘require-
ments—’’; and 
(2) 
by 
striking, 
in 
paragraph 
(2)(B), 
‘‘unescorted access to the facility of a licensee or ap-
plicant’’ and inserting ‘‘unescorted access to a utili-
zation facility, radioactive material, or other prop-
erty described in subsection a.(1)(B)’’. 
(c) BIOMETRIC METHODS.—Subsection d. of section 
149 of the Atomic Energy Act of 1954 (42 U.S.C. 
2169(d)) is redesignated as subsection e., and the fol-
lowing is inserted after subsection c.: 
‘‘d. USE
OF OTHER BIOMETRIC METHODS.—The 
Commission may satisfy any requirement for a person to 
conduct fingerprinting under this section using any other 
biometric method for identification approved for use by
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the Attorney General, after the Commission has approved 
the alternative method by rule.’’. 
SEC. 663. USE OF FIREARMS BY SECURITY PERSONNEL OF 
LICENSEES AND CERTIFICATE HOLDERS OF 
THE COMMISSION. 
Section 161 of the Atomic Energy Act of 1954 (42 
U.S.C. 2201) is amended by adding at the end the fol-
lowing subsection: 
‘‘(z)(1) notwithstanding section 922(o), (v), and 
(w) of title 18, United States Code, or any similar 
provision of any State law or any similar rule or reg-
ulation of a State or any political subdivision of a 
State prohibiting the transfer or possession of a 
handgun, a rifle or shotgun, a short-barreled shot-
gun, a short-barreled rifle, a machinegun, a semi-
automatic assault weapon, ammunition for the fore-
going, or a large capacity ammunition feeding de-
vice, authorize security personnel of licensees and 
certificate holders of the Commission (including em-
ployees of contractors of licensees and certificate 
holders) to receive, possess, transport, import, and 
use 1 or more of those weapons, ammunition, or de-
vices, if the Commission determines that—
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‘‘(A) such authorization is necessary to the 
discharge of the security personnel’s official du-
ties; and 
‘‘(B) the security personnel— 
‘‘(i) are not otherwise prohibited from 
possessing or receiving a firearm under 
Federal or State laws pertaining to posses-
sion of firearms by certain categories of 
persons; 
‘‘(ii) have successfully completed re-
quirements established through guidelines 
implementing this subsection for training 
in use of firearms and tactical maneuvers; 
‘‘(iii) are engaged in the protection 
of— 
‘‘(I) facilities owned or operated 
by a Commission licensee or certifi-
cate holder that are designated by the 
Commission; or 
‘‘(II) 
radioactive 
material 
or 
other property owned or possessed by 
a person that is a licensee or certifi-
cate holder of the Commission, or that 
is being transported to or from a fa-
cility owned or operated by such a li-
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censee or certificate holder, and that 
has been determined by the Commis-
sion to be of significance to the com-
mon defense and security or public 
health and safety; and 
‘‘(iv) are discharging their official du-
ties. 
‘‘(2) Such receipt, possession, transportation, 
importation, or use shall be subject to— 
‘‘(A) chapter 44 of title 18, United States 
Code, except for section 922(a)(4), (o), (v), and 
(w); 
‘‘(B) chapter 53 of title 26, United States 
Code, except for section 5844; and 
‘‘(C) a background check by the Attorney 
General, based on fingerprints and including a 
check of the system established under section 
103(b) of the Brady Handgun Violence Preven-
tion Act (18 U.S.C. 922 note) to determine 
whether the person applying for the authority is 
prohibited from possessing or receiving a fire-
arm under Federal or State law. 
‘‘(3) This subsection shall become effective 
upon the issuance of guidelines by the Commission,
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with the approval of the Attorney General, to govern 
the implementation of this subsection. 
‘‘(4) In this subsection, the terms ‘handgun’, 
‘rifle’, ‘shotgun’, ‘firearm’, ‘ammunition’, ‘machine-
gun’, ‘semiautomatic assault weapon’, ‘large capacity 
ammunition feeding device’, ‘short-barreled shotgun’, 
and ‘short-barreled rifle’ shall have the meanings 
given those terms in section 921(a) of title 18, 
United States Code.’’. 
SEC. 664. UNAUTHORIZED INTRODUCTION OF DANGEROUS 
WEAPONS. 
Section 229 a. of the Atomic Energy Act of 1954 (42 
U.S.C. 2278a(a)) is amended in the first sentence by in-
serting ‘‘or subject to the licensing authority of the Com-
mission or to certification by the Commission under this 
Act or any other Act’’ before the period at the end. 
SEC. 665. SABOTAGE OF NUCLEAR FACILITIES OR FUEL. 
(a) IN GENERAL.—Section 236 a. of the Atomic En-
ergy Act of 1954 (42 U.S.C. 2284(a)) is amended— 
(1) in paragraph (2), by striking ‘‘storage facil-
ity’’ and inserting ‘‘storage, treatment, or disposal 
facility’’; 
(2) in paragraph (3)—
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(A) by striking ‘‘such a utilization facility’’ 
and inserting ‘‘a utilization facility licensed 
under this Act’’; and 
(B) by striking ‘‘or’’ at the end; 
(3) in paragraph (4)— 
(A) by striking ‘‘facility licensed’’ and in-
serting ‘‘, uranium conversion, or nuclear fuel 
fabrication facility licensed or certified’’; and 
(B) by striking the comma at the end and 
inserting a semicolon; and 
(4) by inserting after paragraph (4) the fol-
lowing: 
‘‘(5) any production, utilization, waste storage, 
waste treatment, waste disposal, uranium enrich-
ment, uranium conversion, or nuclear fuel fabrica-
tion facility subject to licensing or certification 
under this Act during construction of the facility, if 
the destruction or damage caused or attempted to be 
caused could adversely affect public health and safe-
ty during the operation of the facility; 
‘‘(6) any primary facility or backup facility 
from which a radiological emergency preparedness 
alert and warning system is activated; or 
‘‘(7) any radioactive material or other property 
subject to regulation by the Nuclear Regulatory
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Commission that, before the date of the offense, the 
Nuclear Regulatory Commission determines, by 
order or regulation published in the Federal Reg-
ister, is of significance to the public health and safe-
ty or to common defense and security,’’. 
(b) PENALTIES.—Section 236 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2284) is amended by striking 
‘‘$10,000 or imprisoned for not more than 20 years, or 
both, and, if death results to any person, shall be impris-
oned for any term of years or for life’’ both places it ap-
pears and inserting ‘‘$1,000,000 or imprisoned for up to 
life without parole’’. 
SEC. 666. SECURE TRANSFER OF NUCLEAR MATERIALS. 
(a) AMENDMENT.—Chapter 14 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2201–2210b) is amended by add-
ing at the end the following new section: 
‘‘SEC. 170C. SECURE TRANSFER OF NUCLEAR MATERIALS. 
‘‘a. The Nuclear Regulatory Commission shall estab-
lish a system to ensure that materials described in sub-
section b., when transferred or received in the United 
States by any party pursuant to an import or export li-
cense issued pursuant to this Act, are accompanied by a 
manifest describing the type and amount of materials 
being transferred or received. Each individual receiving or 
accompanying the transfer of such materials shall be sub-
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ject to a security background check conducted by appro-
priate Federal entities. 
‘‘b. Except as otherwise provided by the Commission 
by regulation, the materials referred to in subsection a. 
are byproduct materials, source materials, special nuclear 
materials, high-level radioactive waste, spent nuclear fuel, 
transuranic waste, and low-level radioactive waste (as de-
fined in section 2(16) of the Nuclear Waste Policy Act 
of 1982 (42 U.S.C. 10101(16))).’’. 
(b) REGULATIONS.—Not later than 1 year after the 
date of the enactment of this Act, and from time to time 
thereafter as it considers necessary, the Nuclear Regu-
latory Commission shall issue regulations identifying ra-
dioactive materials or classes of individuals that, con-
sistent with the protection of public health and safety and 
the common defense and security, are appropriate excep-
tions to the requirements of section 170C of the Atomic 
Energy Act of 1954, as added by subsection (a) of this 
section. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect upon the issuance of regu-
lations under subsection (b), except that the background 
check requirement shall become effective on a date estab-
lished by the Commission.
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(d) EFFECT ON OTHER LAW.—Nothing in this sec-
tion or the amendment made by this section shall waive, 
modify, or affect the application of chapter 51 of title 49, 
United States Code, part A of subtitle V of title 49, 
United States Code, part B of subtitle VI of title 49, 
United States Code, and title 23, United States Code. 
(e) TABLE OF SECTIONS AMENDMENT.—The table of 
sections for chapter 14 of the Atomic Energy Act of 1954 
is amended by adding at the end the following new item: 
‘‘Sec. 170C. Secure transfer of nuclear materials.’’. 
SEC. 667. DEPARTMENT OF HOMELAND SECURITY CON-
SULTATION. 
Before issuing a license for a utilization facility, the 
Nuclear Regulatory Commission shall consult with the De-
partment of Homeland Security concerning the potential 
vulnerabilities of the location of the proposed facility to 
terrorist attack. 
SEC. 668. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—There are authorized to be appro-
priated such sums as are necessary to carry out this sub-
title and the amendments made by this subtitle. 
(b) AGGREGATE AMOUNT
OF CHARGES.—Section 
6101(c)(2)(A) of the Omnibus Budget Reconciliation Act 
of 1990 (42 U.S.C. 2214(c)(2)(A)) is amended— 
(1) in clause (i), by striking ‘‘and’’ at the end;
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(2) in clause (ii), by striking the period at the 
end and inserting ‘‘; and’’ and 
(3) by adding at the end the following: 
‘‘(iii) amounts appropriated to the 
Commission for homeland security activi-
ties of the Commission for the fiscal year, 
except for the costs of fingerprinting and 
background checks required by section 149 
of the Atomic Energy Act of 1954 (42 
U.S.C. 2169) and the costs of conducting 
security inspections.’’. 
TITLE VII—VEHICLES AND 
FUELS 
Subtitle A—Existing Programs 
SEC. 701. USE OF ALTERNATIVE FUELS BY DUAL-FUELED 
VEHICLES. 
Section 400AA(a)(3)(E) of the Energy Policy and 
Conservation Act (42 U.S.C. 6374(a)(3)(E)) is amended 
to read as follows: 
‘‘(E)(i) Dual fueled vehicles acquired pursuant to this 
section shall be operated on alternative fuels unless the 
Secretary determines that an agency qualifies for a waiver 
of such requirement for vehicles operated by the agency 
in a particular geographic area in which—
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‘‘(I) the alternative fuel otherwise required to 
be used in the vehicle is not reasonably available to 
retail purchasers of the fuel, as certified to the Sec-
retary by the head of the agency; or 
‘‘(II) the cost of the alternative fuel otherwise 
required to be used in the vehicle is unreasonably 
more expensive compared to gasoline, as certified to 
the Secretary by the head of the agency. 
‘‘(ii) The Secretary shall monitor compliance with 
this subparagraph by all such fleets and shall report annu-
ally to Congress on the extent to which the requirements 
of this subparagraph are being achieved. The report shall 
include information on annual reductions achieved from 
the use of petroleum-based fuels and the problems, if any, 
encountered in acquiring alternative fuels.’’. 
SEC. 702. NEIGHBORHOOD ELECTRIC VEHICLES. 
(a) AMENDMENTS.—Section 301 of the Energy Pol-
icy Act of 1992 (42 U.S.C. 13211) is amended— 
(1) in paragraph (3), by striking ‘‘or a dual 
fueled vehicle’’ and inserting ‘‘, a dual fueled vehicle, 
or a neighborhood electric vehicle’’; 
(2) in paragraph (13), by striking ‘‘and’’ at the 
end; 
(3) in paragraph (14), by striking the period at 
the end and inserting ‘‘; and’’; and
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(4) by adding at the end the following: 
‘‘(15) the term ‘neighborhood electric vehicle’ 
means a motor vehicle that— 
‘‘(A) meets the definition of a low-speed 
vehicle (as defined in part 571 of title 49, Code 
of Federal Regulations); 
‘‘(B) meets the definition of a zero-emis-
sion vehicle (as defined in section 86.1702–99 
of title 40, Code of Federal Regulations); 
‘‘(C) meets the requirements of Federal 
Motor Vehicle Safety Standard No. 500; and 
‘‘(D) has a maximum speed of not greater 
than 25 miles per hour.’’. 
(b) CREDITS.—Notwithstanding section 508 of the 
Energy Policy Act of 1992 (42 U.S.C. 13258) or any other 
provision of law, a neighborhood electric vehicle shall not 
be allocated credit as more than 1 vehicle for purposes 
of determining compliance with any requirement under 
title III or title V of such Act. 
SEC. 703. CREDITS FOR MEDIUM AND HEAVY DUTY DEDI-
CATED VEHICLES. 
Section 508 of the Energy Policy Act of 1992 (42 
U.S.C. 13258) is amended by adding at the end the fol-
lowing:
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‘‘(e) CREDIT
FOR PURCHASE
OF MEDIUM
AND 
HEAVY DUTY DEDICATED VEHICLES.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) HEAVY
DUTY
DEDICATED
VEHI-
CLE.—The term ‘heavy duty dedicated vehicle’ 
means a dedicated vehicle that has a gross vehi-
cle weight rating of more than 14,000 pounds. 
‘‘(B) MEDIUM
DUTY
DEDICATED
VEHI-
CLE.—The term ‘medium duty dedicated vehi-
cle’ means a dedicated vehicle that has a gross 
vehicle weight rating of more than 8,500 
pounds but not more than 14,000 pounds. 
‘‘(2) CREDITS FOR MEDIUM DUTY VEHICLES.— 
The Secretary shall issue 2 full credits to a fleet or 
covered person under this title, if the fleet or covered 
person acquires a medium duty dedicated vehicle. 
‘‘(3) CREDITS FOR HEAVY DUTY VEHICLES.— 
The Secretary shall issue 3 full credits to a fleet or 
covered person under this title, if the fleet or covered 
person acquires a heavy duty dedicated vehicle. 
‘‘(4) USE OF CREDITS.—At the request of a 
fleet or covered person allocated a credit under this 
subsection, the Secretary shall, for the year in which 
the acquisition of the dedicated vehicle is made, 
treat that credit as the acquisition of 1 alternative
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fueled vehicle that the fleet or covered person is re-
quired to acquire under this title.’’. 
SEC. 704. INCREMENTAL COST ALLOCATION. 
Section 303(c) of the Energy Policy Act of 1992 (42 
U.S.C. 13212(c)) is amended by striking ‘‘may’’ and in-
serting ‘‘shall’’. 
SEC. 705. ALTERNATIVE COMPLIANCE AND FLEXIBILITY. 
(a) ALTERNATIVE COMPLIANCE.— 
(1) IN GENERAL.—Title V of the Energy Policy 
Act of 1992 (42 U.S.C. 13251 et seq.) is amended— 
(A) by redesignating section 514 as section 
515; and 
(B) by inserting after section 513 the fol-
lowing: 
‘‘SEC. 514. ALTERNATIVE COMPLIANCE. 
‘‘(a) APPLICATION FOR WAIVER.—Any covered per-
son subject to section 501 and any State subject to section 
507(o) may petition the Secretary for a waiver of the ap-
plicable requirements of section 501 or 507(o). 
‘‘(b) GRANT OF WAIVER.—The Secretary may grant 
a waiver of the requirements of section 501 or 507(o) 
upon a showing that the fleet owned, operated, leased, or 
otherwise controlled by the State or covered person— 
‘‘(1) will achieve a reduction in its annual con-
sumption of petroleum fuels equal to the reduction
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in consumption of petroleum that would result from 
100 percent compliance with fuel use requirements 
in section 501, or, for entities covered under section 
507(o), a reduction equal to the covered State enti-
ty’s consumption of alternative fuels if all its alter-
native fuel vehicles given credit under section 508 
were to use alternative fuel 100 percent of the time; 
and 
‘‘(2) is in compliance with all applicable vehicle 
emission standards established by the Administrator 
under the Clean Air Act (42 U.S.C. 7401 et seq.). 
‘‘(c) REVOCATION OF WAIVER.—The Secretary shall 
revoke any waiver granted under this section if the State 
or covered person fails to comply with subsection (b).’’. 
(2) TABLE OF CONTENTS AMENDMENT.—The 
table of contents of the Energy Policy Act of 1992 
(42 U.S.C. prec. 13201) is amended by striking the 
item relating to section 514 and inserting the fol-
lowing: 
‘‘Sec. 514. Alternative compliance. 
‘‘Sec. 515. Authorization of appropriations.’’. 
(b) CREDITS.—Section 508 of the Energy Policy Act 
of 1992 (42 U.S.C. 13258) (as amended by section 703) 
is amended— 
(1) by redesignating subsections (b) through (e) 
as subsections (c) through (f), respectively;
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(2) by striking subsection (a) and inserting the 
following: 
‘‘(a) IN GENERAL.—The Secretary shall allocate a 
credit to a fleet or covered person that is required to ac-
quire an alternative fueled vehicle under this title, if that 
fleet or person acquires an alternative fueled vehicle— 
‘‘(1) in excess of the number that fleet or per-
son is required to acquire under this title; 
‘‘(2) before the date on which that fleet or per-
son is required to acquire an alternative fueled vehi-
cle under this title; or 
‘‘(3) that is eligible to receive credit under sub-
section (b). 
‘‘(b) MAXIMUM AVAILABLE POWER.—The Secretary 
shall allocate credit to a fleet under subsection (a)(3) for 
the acquisition by the fleet of a hybrid vehicle as follows: 
‘‘(1) For a hybrid vehicle with at least 4 per-
cent but less than 10 percent maximum available 
power, the Secretary shall allocate 25 percent of 1 
credit. 
‘‘(2) For a hybrid vehicle with at least 10 per-
cent but less than 20 percent maximum available 
power, the Secretary shall allocate 50 percent of 1 
credit.
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‘‘(3) For a hybrid vehicle with at least 20 per-
cent but less than 30 percent maximum available 
power, the Secretary shall allocate 75 percent of 1 
credit. 
‘‘(4) For a hybrid vehicle with 30 percent or 
more maximum available power, the Secretary shall 
allocate 1 credit.’’; and 
(3) by adding at the end the following: 
‘‘(g) CREDIT
FOR INVESTMENT
IN ALTERNATIVE 
FUEL INFRASTRUCTURE.— 
‘‘(1) DEFINITION OF QUALIFYING INFRASTRUC-
TURE.—In this subsection, the term ‘qualifying in-
frastructure’ means— 
‘‘(A) equipment required to refuel or re-
charge alternative fueled vehicles; 
‘‘(B) facilities or equipment required to 
maintain, repair, or operate alternative fueled 
vehicles; and 
‘‘(C) such other activities as the Secretary 
considers to constitute an appropriate expendi-
ture in support of the operation, maintenance, 
or further widespread adoption of or utilization 
of alternative fueled vehicles. 
‘‘(2) ISSUANCE
OF
CREDITS.—The Secretary 
shall issue a credit to a fleet or covered person under
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this title for investment in qualifying infrastructure 
if the qualifying infrastructure is open to the general 
public during regular business hours. 
‘‘(3) AMOUNT.—For the purpose of credits 
under this subsection— 
‘‘(A) 1 credit shall be equal to a minimum 
investment of $25,000 in cash or equivalent ex-
penditure, as determined by the Secretary; and 
‘‘(B) except in the case of a Federal or 
State fleet, no part of the investment may be 
provided by Federal or State funds. 
‘‘(4) USE OF CREDITS.—At the request of a 
fleet or covered person allocated a credit under this 
subsection, the Secretary shall, for the year in which 
the investment is made, treat that credit as the ac-
quisition of 1 alternative fueled vehicle that the fleet 
or covered person is required to acquire under this 
title. 
‘‘(h) 
DEFINITION
OF
MAXIMUM
AVAILABLE 
POWER.—In this section, the term ‘maximum available 
power’ means the quotient obtained by dividing— 
‘‘(1) the maximum power available from the en-
ergy storage device of a hybrid vehicle, during a 
standard 10-second pulse power or equivalent test; 
by
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‘‘(2) the sum of— 
‘‘(A) the maximum power described in sub-
paragraph (A); and 
‘‘(B) the net power of the internal combus-
tion or heat engine, as determined in accord-
ance with standards established by the Society 
of Automobile Engineers.’’. 
(c) LEASE CONDENSATE FUELS.—Section 301 of the 
Energy Policy Act of 1992 (42 U.S.C. 13211) (as amend-
ed by section 702) is amended— 
(1) in paragraph (2), by inserting ‘‘mixtures 
containing 50 percent or more by volume of lease 
condensate or fuels extracted from lease conden-
sate;’’ after ‘‘liquefied petroleum gas;’’; 
(2) in paragraph (14)— 
(A) by inserting ‘‘mixtures containing 50 
percent or more by volume of lease condensate 
or fuels extracted from lease condensate,’’ after 
‘‘liquefied petroleum gas,’’; and 
(B) by striking ‘‘and’’ at the end; 
(3) in paragraph (15), by striking the period at 
the end and inserting ‘‘; and’’; and 
(4) by adding at the end the following: 
‘‘(16) the term ‘lease condensate’ means a mix-
ture, primarily of pentanes and heavier hydro-
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carbons, that is recovered as a liquid from natural 
gas in lease separation facilities.’’. 
(d) LEASE CONDENSATE USE CREDITS.— 
(1) IN GENERAL.—Title III of the Energy Pol-
icy Act of 1992 (42 U.S.C. 13211 et seq.) is amend-
ed by adding at the end the following: 
‘‘SEC. 313. LEASE CONDENSATE USE CREDITS. 
‘‘(a) IN GENERAL.—Subject to subsection (d), the 
Secretary shall allocate 1 credit under this section to a 
fleet or covered person for each qualifying volume of the 
lease condensate component of fuel containing at least 50 
percent lease condensate, or fuels extracted from lease 
condensate, after the date of enactment of this section for 
use by the fleet or covered person in vehicles owned or 
operated by the fleet or covered person that weigh more 
than 8,500 pounds gross vehicle weight rating. 
‘‘(b) REQUIREMENTS.—A credit allocated under this 
section— 
‘‘(1) shall be subject to the same exceptions, 
authority, documentation, and use of credits that are 
specified for qualifying volumes of biodiesel in sec-
tion 312; and 
‘‘(2) shall not be considered a credit under sec-
tion 508. 
‘‘(c) REGULATION.—
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‘‘(1) IN GENERAL.—Subject to subsection (d), 
not later than January 1, 2004, after the collection 
of appropriate information and data that consider 
usage options, uses in other industries, products, or 
processes, potential volume capacities, costs, air 
emissions, and fuel efficiencies, the Secretary shall 
issue a regulation establishing requirements and pro-
cedures for the implementation of this section. 
‘‘(2) QUALIFYING
VOLUME.—The regulation 
shall include a determination of an appropriate 
qualifying volume for lease condensate, except that 
in no case shall the Secretary determine that the 
qualifying volume for lease condensate is less than 
1,125 gallons. 
‘‘(d) APPLICABILITY.—This section applies unless the 
Secretary finds that the use of lease condensate as an al-
ternative fuel would adversely affect public health or safe-
ty or ambient air quality or the environment.’’. 
(2) TABLE OF CONTENTS AMENDMENT.—The 
table of contents of the Energy Policy Act of 1992 
(42 U.S.C. prec. 13201) is amended by adding at 
the end of the items relating to title III the fol-
lowing: 
‘‘Sec. 313. Lease condensate use credits.’’. 
(e) EMERGENCY EXEMPTION.—Section 301 of the 
Energy Policy Act of 1992 (42 U.S.C. 13211) (as amend-
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ed by section 702 and this section) is amended in para-
graph (9)(E) by inserting before the semicolon at the end 
‘‘, including vehicles directly used in the emergency repair 
of transmission lines and in the restoration of electricity 
service following power outages, as determined by the Sec-
retary’’. 
SEC. 706. REVIEW OF ENERGY POLICY ACT OF 1992 PRO-
GRAMS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this section, the Secretary of Energy 
shall complete a study to determine the effect that titles 
III, IV, and V of the Energy Policy Act of 1992 (42 
U.S.C. 13211 et seq.) have had on— 
(1) the development of alternative fueled vehicle 
technology; 
(2) the availability of that technology in the 
market; and 
(3) the cost of alternative fueled vehicles. 
(b) TOPICS.—As part of the study under subsection 
(a), the Secretary shall specifically identify— 
(1) the number of alternative fueled vehicles ac-
quired by fleets or covered persons required to ac-
quire alternative fueled vehicles;
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(2) the quantity, by type, of alternative fuel ac-
tually used in alternative fueled vehicles acquired by 
fleets or covered persons; 
(3) the quantity of petroleum displaced by the 
use of alternative fuels in alternative fueled vehicles 
acquired by fleets or covered persons; 
(4) the direct and indirect costs of compliance 
with requirements under titles III, IV, and V of the 
Energy Policy Act of 1992 (42 U.S.C. 13211 et 
seq.), including— 
(A) vehicle acquisition requirements im-
posed on fleets or covered persons; 
(B) administrative and recordkeeping ex-
penses; 
(C) fuel and fuel infrastructure costs; 
(D) associated training and employee ex-
penses; and 
(E) any other factors or expenses the Sec-
retary determines to be necessary to compile re-
liable estimates of the overall costs and benefits 
of complying with programs under those titles 
for fleets, covered persons, and the national 
economy; 
(5) the existence of obstacles preventing compli-
ance with vehicle acquisition requirements and in-
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creased use of alternative fuel in alternative fueled 
vehicles acquired by fleets or covered persons; and 
(6) the projected impact of amendments to the 
Energy Policy Act of 1992 made by this title. 
(c) REPORT.—Upon completion of the study under 
this section, the Secretary shall submit to Congress a re-
port that describes the results of the study and includes 
any recommendations of the Secretary for legislative or 
administrative changes concerning the alternative fueled 
vehicle requirements under titles III, IV and V of the En-
ergy Policy Act of 1992 (42 U.S.C. 13211 et seq.). 
SEC. 707. REPORT CONCERNING COMPLIANCE WITH AL-
TERNATIVE FUELED VEHICLE PURCHASING 
REQUIREMENTS. 
Section 310(b)(1) of the Energy Policy Act of 1992 
(42 U.S.C. 13218(b)(1)) is amended by striking ‘‘1 year 
after the date of enactment of this subsection’’ and insert-
ing ‘‘February 15, 2004’’. 
Subtitle B—Hybrid Vehicles, Ad-
vanced Vehicles, and Fuel Cell 
Buses 
PART I—HYBRID VEHICLES 
SEC. 711. HYBRID VEHICLES. 
The Secretary of Energy shall accelerate efforts di-
rected toward the improvement of batteries and other re-
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chargeable energy storage systems, power electronics, hy-
brid systems integration, and other technologies for use 
in hybrid vehicles. 
PART II—ADVANCED VEHICLES 
SEC. 721. DEFINITIONS. 
In this part: 
(1) ALTERNATIVE FUELED VEHICLE.— 
(A) IN GENERAL.—The term ‘‘alternative 
fueled vehicle’’ means a vehicle propelled solely 
on an alternative fuel (as defined in section 301 
of the Energy Policy Act of 1992 (42 U.S.C. 
13211)). 
(B) EXCLUSION.—The term ‘‘alternative 
fueled vehicle’’ does not include a vehicle that 
the Secretary determines, by regulation, does 
not yield substantial environmental benefits 
over a vehicle operating solely on gasoline or 
diesel derived from fossil fuels. 
(2) FUEL CELL VEHICLE.—The term ‘‘fuel cell 
vehicle’’ means a vehicle propelled by an electric 
motor powered by a fuel cell system that converts 
chemical energy into electricity by combining oxygen 
(from air) with hydrogen fuel that is stored on the 
vehicle or is produced onboard by reformation of a 
hydrocarbon fuel. Such fuel cell system may or may
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not include the use of auxiliary energy storage sys-
tems to enhance vehicle performance. 
(3) HYBRID VEHICLE.—The term ‘‘hybrid vehi-
cle’’ means a medium or heavy duty vehicle propelled 
by an internal combustion engine or heat engine 
using any combustible fuel and an onboard recharge-
able energy storage device. 
(4) NEIGHBORHOOD ELECTRIC VEHICLE.—The 
term ‘‘neighborhood electric vehicle’’ means a motor 
vehicle that— 
(A) meets the definition of a low-speed ve-
hicle (as defined in part 571 of title 49, Code 
of Federal Regulations); 
(B) meets the definition of a zero-emission 
vehicle (as defined in section 86.1702–99 of 
title 40, Code of Federal Regulations); 
(C) meets the requirements of Federal 
Motor Vehicle Safety Standard No. 500; and 
(D) has a maximum speed of not greater 
than 25 miles per hour. 
(5) PILOT
PROGRAM.—The term ‘‘pilot pro-
gram’’ means the competitive grant program estab-
lished under section 722. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy.
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(7) ULTRA-LOW
SULFUR
DIESEL
VEHICLE.— 
The term ‘‘ultra-low sulfur diesel vehicle’’ means a 
vehicle manufactured in any of model years 2003 
through 2006 powered by a heavy-duty diesel engine 
that— 
(A) is fueled by diesel fuel that contains 
sulfur at not more than 15 parts per million; 
and 
(B) emits not more than the lesser of— 
(i) for vehicles manufactured in— 
(I) model year 2003, 3.0 grams 
per brake horsepower-hour of oxides 
of nitrogen and .01 grams per brake 
horsepower-hour of particulate matter; 
and 
(II) model years 2004 through 
2006, 2.5 grams per brake horse-
power-hour of nonmethane hydro-
carbons and oxides of nitrogen and 
.01 grams per brake horsepower-hour 
of particulate matter; or 
(ii) the quantity of emissions of non-
methane hydrocarbons, oxides of nitrogen, 
and particulate matter of the best-per-
forming technology of ultra-low sulfur die-
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sel vehicles of the same class and applica-
tion that are commercially available. 
SEC. 722. PILOT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary, in consulta-
tion with the Secretary of Transportation, shall establish 
a competitive grant pilot program, to be administered 
through the Clean Cities Program of the Department of 
Energy, to provide not more than 15 geographically dis-
persed project grants to State governments, local govern-
ments, or metropolitan transportation authorities to carry 
out a project or projects for the purposes described in sub-
section (b). 
(b) GRANT PURPOSES.—A grant under this section 
may be used for the following purposes: 
(1) The acquisition of alternative fueled vehicles 
or fuel cell vehicles, including— 
(A) passenger vehicles (including neighbor-
hood electric vehicles); and 
(B) motorized 2-wheel bicycles, scooters, or 
other vehicles for use by law enforcement per-
sonnel or other State or local government or 
metropolitan transportation authority employ-
ees. 
(2) The acquisition of alternative fueled vehi-
cles, hybrid vehicles, or fuel cell vehicles, including—
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(A) buses used for public transportation or 
transportation to and from schools; 
(B) delivery vehicles for goods or services; 
and 
(C) ground support vehicles at public air-
ports (including vehicles to carry baggage or 
push or pull airplanes toward or away from ter-
minal gates). 
(3) The acquisition of ultra-low sulfur diesel ve-
hicles. 
(4) Installation or acquisition of infrastructure 
necessary to directly support an alternative fueled 
vehicle, fuel cell vehicle, or hybrid vehicle project 
funded by the grant, including fueling and other 
support equipment. 
(5) Operation and maintenance of vehicles, in-
frastructure, and equipment acquired as part of a 
project funded by the grant. 
(c) APPLICATIONS.— 
(1) REQUIREMENTS.— 
(A) IN
GENERAL.—The Secretary shall 
issue requirements for applying for grants 
under the pilot program.
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(B) MINIMUM REQUIREMENTS.—At a min-
imum, the Secretary shall require that an appli-
cation for a grant— 
(i) be submitted by the head of a 
State or local government or a metropoli-
tan transportation authority, or any com-
bination thereof, and a registered partici-
pant in the Clean Cities Program of the 
Department of Energy; and 
(ii) include— 
(I) a description of the project 
proposed in the application, including 
how the project meets the require-
ments of this part; 
(II) an estimate of the ridership 
or degree of use of the project; 
(III) an estimate of the air pollu-
tion emissions reduced and fossil fuel 
displaced as a result of the project, 
and a plan to collect and disseminate 
environmental data, related to the 
project to be funded under the grant, 
over the life of the project; 
(IV) a description of how the 
project will be sustainable without
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Federal assistance after the comple-
tion of the term of the grant; 
(V) a complete description of the 
costs of the project, including acquisi-
tion, 
construction, 
operation, 
and 
maintenance costs over the expected 
life of the project; 
(VI) a description of which costs 
of the project will be supported by 
Federal assistance under this part; 
and 
(VII) documentation to the satis-
faction of the Secretary that diesel 
fuel containing sulfur at not more 
than 15 parts per million is available 
for carrying out the project, and a 
commitment by the applicant to use 
such fuel in carrying out the project. 
(2) PARTNERS.—An applicant under paragraph 
(1) may carry out a project under the pilot program 
in partnership with public and private entities. 
(d) SELECTION CRITERIA.—In evaluating applica-
tions under the pilot program, the Secretary shall— 
(1) consider each applicant’s previous experi-
ence with similar projects; and
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(2) give priority consideration to applications 
that— 
(A) are most likely to maximize protection 
of the environment; 
(B) demonstrate the greatest commitment 
on the part of the applicant to ensure funding 
for the proposed project and the greatest likeli-
hood that the project will be maintained or ex-
panded after Federal assistance under this part 
is completed; and 
(C) exceed the minimum requirements of 
subsection (c)(1)(B)(ii). 
(e) PILOT PROJECT REQUIREMENTS.— 
(1) MAXIMUM
AMOUNT.—The Secretary shall 
not provide more than $20,000,000 in Federal as-
sistance under the pilot program to any applicant. 
(2) COST SHARING.—The Secretary shall not 
provide more than 50 percent of the cost, incurred 
during the period of the grant, of any project under 
the pilot program. 
(3) MAXIMUM PERIOD OF GRANTS.—The Sec-
retary shall not fund any applicant under the pilot 
program for more than 5 years. 
(4) DEPLOYMENT
AND
DISTRIBUTION.—The 
Secretary shall seek to the maximum extent prac-
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ticable to ensure a broad geographic distribution of 
project sites. 
(5) TRANSFER OF INFORMATION AND KNOWL-
EDGE.—The Secretary shall establish mechanisms to 
ensure that the information and knowledge gained 
by participants in the pilot program are transferred 
among the pilot program participants and to other 
interested parties, including other applicants that 
submitted applications. 
(f) SCHEDULE.— 
(1) PUBLICATION.—Not later than 90 days 
after the date of enactment of this Act, the Sec-
retary shall publish in the Federal Register, Com-
merce Business Daily, and elsewhere as appropriate, 
a request for applications to undertake projects 
under the pilot program. Applications shall be due 
not later than 180 days after the date of publication 
of the notice. 
(2) SELECTION.—Not later than 180 days after 
the date by which applications for grants are due, 
the Secretary shall select by competitive, peer re-
viewed proposal, all applications for projects to be 
awarded a grant under the pilot program. 
(g) LIMIT ON FUNDING.—The Secretary shall pro-
vide not less than 20 nor more than 25 percent of the
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grant funding made available under this section for the 
acquisition of ultra-low sulfur diesel vehicles. 
SEC. 723. REPORTS TO CONGRESS. 
(a) INITIAL REPORT.—Not later than 60 days after 
the date on which grants are awarded under this part, 
the Secretary shall submit to Congress a report con-
taining— 
(1) an identification of the grant recipients and 
a description of the projects to be funded; 
(2) an identification of other applicants that 
submitted applications for the pilot program; and 
(3) a description of the mechanisms used by the 
Secretary to ensure that the information and knowl-
edge gained by participants in the pilot program are 
transferred among the pilot program participants 
and to other interested parties, including other ap-
plicants that submitted applications. 
(b) EVALUATION.—Not later than 3 years after the 
date of enactment of this Act, and annually thereafter 
until the pilot program ends, the Secretary shall submit 
to Congress a report containing an evaluation of the effec-
tiveness of the pilot program, including— 
(1) an assessment of the benefits to the envi-
ronment derived from the projects included in the 
pilot program; and
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(2) an estimate of the potential benefits to the 
environment to be derived from widespread applica-
tion of alternative fueled vehicles and ultra-low sul-
fur diesel vehicles. 
SEC. 724. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Sec-
retary to carry out this part $200,000,000, to remain 
available until expended. 
PART III—FUEL CELL BUSES 
SEC. 731. FUEL CELL TRANSIT BUS DEMONSTRATION. 
(a) IN GENERAL.—The Secretary of Energy, in con-
sultation with the Secretary of Transportation, shall es-
tablish a transit bus demonstration program to make com-
petitive, merit-based awards for 5-year projects to dem-
onstrate not more than 25 fuel cell transit buses (and nec-
essary infrastructure) in 5 geographically dispersed local-
ities. 
(b) PREFERENCE.—In selecting projects under this 
section, the Secretary of Energy shall give preference to 
projects that are most likely to mitigate congestion and 
improve air quality. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy to carry out this section $10,000,000 for each of fis-
cal years 2004 through 2008.
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Subtitle C—Clean School Buses 
SEC. 741. DEFINITIONS. 
In this subtitle: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency. 
(2) ALTERNATIVE
FUEL.—The term ‘‘alter-
native fuel’’ means liquefied natural gas, compressed 
natural gas, liquefied petroleum gas, hydrogen, pro-
pane, or methanol or ethanol at no less than 85 per-
cent by volume. 
(3) ALTERNATIVE
FUEL
SCHOOL
BUS.—The 
term ‘‘alternative fuel school bus’’ means a school 
bus that meets all of the requirements of this sub-
title and is operated solely on an alternative fuel. 
(4) EMISSIONS
CONTROL
RETROFIT
TECH-
NOLOGY.—The term ‘‘emissions control retrofit tech-
nology’’ means a particulate filter or other emissions 
control equipment that is verified or certified by the 
Administrator or the California Air Resources Board 
as an effective emission reduction technology when 
installed on an existing school bus. 
(5) IDLING.—The term ‘‘idling’’ means oper-
ating an engine while remaining stationary for more 
than approximately 15 minutes, except that the term
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does not apply to routine stoppages associated with 
traffic movement or congestion. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(7) ULTRA-LOW SULFUR DIESEL FUEL.—The 
term ‘‘ultra-low sulfur diesel fuel’’ means diesel fuel 
that contains sulfur at not more than 15 parts per 
million. 
(8) ULTRA-LOW SULFUR DIESEL FUEL SCHOOL 
BUS.—The term ‘‘ultra-low sulfur diesel fuel school 
bus’’ means a school bus that meets all of the re-
quirements of this subtitle and is operated solely on 
ultra-low sulfur diesel fuel. 
SEC. 742. PROGRAM FOR REPLACEMENT OF CERTAIN 
SCHOOL BUSES WITH CLEAN SCHOOL BUSES. 
(a) ESTABLISHMENT.—The Administrator, in con-
sultation with the Secretary and other appropriate Federal 
departments and agencies, shall establish a program for 
awarding grants on a competitive basis to eligible entities 
for the replacement of existing school buses manufactured 
before model year 1991 with alternative fuel school buses 
and ultra-low sulfur diesel fuel school buses. 
(b) REQUIREMENTS.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of enactment of this Act, the Administrator
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shall establish and publish in the Federal Register 
grant requirements on eligibility for assistance, and 
on implementation of the program established under 
subsection (a), including instructions for the submis-
sion of grant applications and certification require-
ments to ensure compliance with this subtitle. 
(2) APPLICATION
DEADLINES.—The require-
ments established under paragraph (1) shall require 
submission of grant applications not later than— 
(A) in the case of the first year of program 
implementation, the date that is 180 days after 
the publication of the requirements in the Fed-
eral Register; and 
(B) in the case of each subsequent year, 
June 1 of the year. 
(c) ELIGIBLE RECIPIENTS.—A grant shall be award-
ed under this section only— 
(1) to 1 or more local or State governmental 
entities responsible for providing school bus service 
to 1 or more public school systems or responsible for 
the purchase of school buses; 
(2) to 1 or more contracting entities that pro-
vide school bus service to 1 or more public school 
systems, if the grant application is submitted jointly 
with the 1 or more school systems to be served by
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‘‘(2) FERC shall approve a plan or plans submitted 
under subparagraph (B) of paragraph (1) if such plan or 
plans— 
‘‘(A) result in rates that are just and reason-
able and not unduly discriminatory or preferential 
consistent with section 205; and 
‘‘(B) ensure that the costs of any transmission 
service related expansion or new generator inter-
connection not required to meet applicable reliability 
standards established under section 215 are assigned 
in a fair manner, meaning that those who benefit 
from the transmission service related expansion or 
new generator interconnection pay an appropriate 
share of the associated costs, provided that— 
‘‘(i) costs may not be assigned or allocated 
to an electric utility if the native load customers 
of that utility would not have required such 
transmission service related expansion or new 
generator interconnection absent the request for 
transmission service related expansion or new 
generator interconnection that necessitated the 
investment; 
‘‘(ii) the party requesting such trans-
mission service related expansion or new gener-
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ator interconnection shall not be required to 
pay for both— 
‘‘(I) the assigned cost of the upgrade; 
and 
‘‘(II) the difference between— 
‘‘(aa) the embedded cost paid for 
transmission services (including the 
cost of the requested upgrade); and 
‘‘(bb) the embedded cost that 
would have been paid absent the up-
grade; and 
‘‘(iii) the party or parties who pay for fa-
cilities necessary for the transmission service 
related expansion or new generator interconnec-
tion receives full compensation for its costs for 
the participant funded facilities in the form 
of— 
‘‘(I) monetary credit equal to the cost 
of the participant funded facilities (ac-
counting for the time value of money at 
the Gross Domestic Product deflator), 
which credit shall be pro-rated in equal in-
stallments over a period of not more than 
30 years and shall not exceed in total the 
amount of the initial investment, against
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the transmission charges that the funding 
entity or its assignee is otherwise assessed 
by the transmission provider; 
‘‘(II) appropriate financial or physical 
rights; or 
‘‘(III) any other method of cost recov-
ery or compensation approved by the Com-
mission. 
‘‘(3) A plan submitted under this section shall apply 
only to— 
‘‘(A) a contract or interconnection agreement 
executed or filed with the Commission after the date 
of enactment of this section; or 
‘‘(B) an interconnection agreement pending re-
hearing as of November 1, 2003. 
‘‘(4) Nothing in this section diminishes or alters the 
rights of individual members of an RTO or ISO under 
this Act. 
‘‘(5) Nothing in this section shall affect the allocation 
of costs or the cost methodology employed by an RTO or 
ISO authorized by the Commission to allocate costs (in-
cluding costs for transmission service related expansion or 
new generator interconnection) prior to the date of enact-
ment of this section.