384 
(vi) in coordination with the Environ-
mental Protection Agency and the Nuclear 
Regulatory Commission, an identification 
of any new regulatory guidance needed for 
the disposal of GTCC waste. 
(3) REPORT
ON
COST
AND
SCHEDULE
FOR 
COMPLETION
OF
ENVIRONMENTAL
IMPACT
STATE-
MENT AND RECORD OF DECISION.—Not later than 
180 days after the date of submission of the update 
required under paragraph (2), the Secretary of En-
ergy shall submit to Congress a report containing an 
estimate of the cost and schedule to complete a draft 
and final environmental impact statement and to 
issue a record of decision for a permanent disposal 
facility, utilizing either a new or existing facility, for 
GTCC waste. 
SEC. 636. PROHIBITION ON NUCLEAR EXPORTS TO COUN-
TRIES THAT SPONSOR TERRORISM. 
(a) IN GENERAL.—Section 129 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2158) is amended— 
(1) by inserting ‘‘a.’’ before ‘‘No nuclear mate-
rials and equipment’’; and 
(2) by adding at the end the following new sub-
section:
385 
‘‘b.(1) Notwithstanding any other provision of law, 
including specifically section 121 of this Act, and except 
as provided in paragraphs (2) and (3), no nuclear mate-
rials and equipment or sensitive nuclear technology, in-
cluding items and assistance authorized by section 57 b. 
of this Act and regulated under part 810 of title 10, Code 
of Federal Regulations, and nuclear-related items on the 
Commerce Control List maintained under part 774 of title 
15 of the Code of Federal Regulations, shall be exported 
or reexported, or transferred or retransferred whether di-
rectly or indirectly, and no Federal agency shall issue any 
license, approval, or authorization for the export or reex-
port, or transfer, or retransfer, whether directly or indi-
rectly, of these items or assistance (as defined in this para-
graph) to any country whose government has been identi-
fied by the Secretary of State as engaged in state sponsor-
ship of terrorist activities (specifically including any coun-
try the government of which has been determined by the 
Secretary of State under section 620A(a) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2371(a)), section 
6(j)(1) of the Export Administration Act of 1979 (50 
U.S.C. App. 2405(j)(1)), or section 40(d) of the Arms Ex-
port Control Act (22 U.S.C. 2780(d)) to have repeatedly 
provided support for acts of international terrorism).
386 
‘‘(2) This subsection shall not apply to exports, reex-
ports, transfers, or retransfers of radiation monitoring 
technologies, surveillance equipment, seals, cameras, tam-
per-indication devices, nuclear detectors, monitoring sys-
tems, or equipment necessary to safely store, transport, 
or remove hazardous materials, whether such items, serv-
ices, or information are regulated by the Department of 
Energy, the Department of Commerce, or the Nuclear 
Regulatory Commission, except to the extent that such 
technologies, equipment, seals, cameras, devices, detectors, 
or systems are available for use in the design or construc-
tion of nuclear reactors or nuclear weapons. 
‘‘(3) The President may waive the application of 
paragraph (1) to a country if the President determines 
and certifies to Congress that the waiver will not result 
in any increased risk that the country receiving the waiver 
will acquire nuclear weapons, nuclear reactors, or any ma-
terials or components of nuclear weapons and— 
‘‘(A) the government of such country has not 
within the preceding 12-month period willfully aided 
or abetted the international proliferation of nuclear 
explosive devices to individuals or groups or willfully 
aided and abetted an individual or groups in acquir-
ing unsafeguarded nuclear materials;
387 
‘‘(B) in the judgment of the President, the gov-
ernment of such country has provided adequate, 
verifiable assurances that it will cease its support for 
acts of international terrorism; 
‘‘(C) the waiver of that paragraph is in the vital 
national security interest of the United States; or 
‘‘(D) such a waiver is essential to prevent or re-
spond to a serious radiological hazard in the country 
receiving the waiver that may or does threaten pub-
lic health and safety.’’. 
(b) APPLICABILITY
TO EXPORTS APPROVED
FOR 
TRANSFER BUT NOT TRANSFERRED.—Subsection b. of 
section 129 of Atomic Energy Act of 1954, as added by 
subsection (a) of this section, shall apply with respect to 
exports that have been approved for transfer as of the date 
of the enactment of this Act but have not yet been trans-
ferred as of that date. 
SEC. 637. URANIUM ENRICHMENT FACILITIES. 
(a) NUCLEAR REGULATORY COMMISSION REVIEW OF 
APPLICATIONS.— 
(1) IN GENERAL.—In order to facilitate a time-
ly review and approval of an application in a pro-
ceeding for a license for the construction and oper-
ation of a uranium enrichment facility under sec-
tions 53 and 63 of the Atomic Energy Act of 1954
388 
(42 U.S.C. 2073, 2093) (referred to in this sub-
section as a ‘‘covered proceeding’’), the Nuclear Reg-
ulatory Commission shall, not later than 30 days 
after the receipt of the application, establish, by 
order, the schedule for the conduct of any hearing 
that may be requested by any person whose interest 
may be affected by the covered proceeding. 
(2) FINAL
AGENCY
DECISION.—The schedule 
shall provide that a final decision by the Commission 
on the application shall be made not later than the 
date that is 2 years after the date of submission of 
the application by the applicant. 
(3) COMPLIANCE WITH SCHEDULE.— 
(A) IN GENERAL.—The Commission shall 
establish a process to assess compliance with 
the schedule established under paragraph (1) 
on an ongoing basis during the course of the re-
view of the application, including ensuring com-
pliance with schedules and milestones that are 
established for the conduct of any covered pro-
ceeding by the Atomic Safety and Licensing 
Board. 
(B) REPORT.—The Commission shall sub-
mit to Congress on a bimonthly basis a report 
describing the status of compliance with the
389 
schedule established under paragraph (1), in-
cluding a description of the status of actions re-
quired to be completed pursuant to the schedule 
by officers and employees of— 
(i) the Commission in undertaking the 
safety and environmental review of applica-
tions; and 
(ii) the Atomic Safety and Licensing 
Board in the conduct of any covered pro-
ceeding. 
(4) ENVIRONMENTAL REVIEW.— 
(A) IN GENERAL.—In evaluating an appli-
cation under the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.) for licens-
ing of a facility in a covered proceeding, the 
Commission shall limit the consideration of 
need to whether the licensing of the facility 
would advance the national interest of encour-
aging in the United States— 
(i) additional secure, reliable uranium 
enrichment capacity; 
(ii) diverse supplies and suppliers of 
uranium enrichment capacity; and 
(iii) the deployment of advanced cen-
trifuge enrichment technology.
390 
(B) COMMENT.—In carrying out subpara-
graph (A), the Commission shall consider and 
solicit the views of other affected Federal agen-
cies. 
(C) ATOMIC
SAFETY
AND
LICENSING 
BOARD.— 
(i) IN GENERAL.—Except as provided 
in clause (ii), in any covered proceeding, 
the Commission shall allow the litigation 
and resolution by the Atomic Safety and 
Licensing Board of issues arising under 
the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.), on the 
basis of information submitted by the ap-
plicant in its environmental report, prior to 
publication of any required environmental 
impact statement. 
(ii) EXCEPTIONS.—On the publication 
of any required environmental impact 
statement, issues may be proffered for res-
olution by the Atomic Safety and Licensing 
Board only if information or conclusions in 
the environmental impact statement differ 
significantly from the information or con-
391 
clusions in the environmental report sub-
mitted by the applicant. 
(D) ENVIRONMENTAL JUSTICE.—In a cov-
ered proceeding, the Commission shall apply the 
criteria in Appendix C of the final report enti-
tled ‘‘Environmental Review Guidance for Li-
censing Actions Associated with NMSS Pro-
grams’’ (NUREG–1748), published in August 
2003, in any required review of environmental 
justice. 
(5) LOW-LEVEL WASTE.—In any covered pro-
ceeding, the Commission shall— 
(A) deem the obligation of the Secretary of 
Energy pursuant to section 3113 of the USEC 
Privitization Act (42 U.S.C. 2297 h-11) to con-
stitute a plausible strategy with regard to the 
disposition of depleted uranium generated by 
such facility; and 
(B) treat any residual material that re-
mains following the extraction of any usable re-
source value from depleted uranium as low-level 
radioactive waste under part 61 of title 10, 
Code of Federal Regulations. 
(6) ADJUDICATORY HEARING ON LICENSING OF 
URANIUM ENRICHMENT FACILITIES.—Section 193(b)
392 
of the Atomic Energy Act of 1954 (42 U.S.C. 
2243(b)) is amended by striking paragraph (2) and 
inserting the following: 
‘‘(2) TIMING.—On the issuance of a final deci-
sion on the application by the Atomic Safety and Li-
censing Board, the Commission shall issue and make 
immediately effective any license for the construction 
and operation of a uranium enrichment facility 
under sections 53 and 63, on a determination by the 
Commission that the issuance of the license would 
not cause irreparable injury to the public health and 
safety or the common defense and security, notwith-
standing the pendency before the Commission of any 
appeal or petition for review of any decision of the 
Atomic Safety and Licensing Board.’’. 
(b) DEPARTMENT OF ENERGY RESPONSIBILITIES.— 
(1) IN
GENERAL.—Not later than 180 days 
after a request is made to the Secretary of Energy 
by an applicant for or recipient of a license for a 
uranium enrichment facility under section 53, 63, or 
193 of the Atomic Energy Act of 1954 ((42 U.S.C. 
2073, 2093, 2243), the Secretary shall enter into a 
memorandum of agreement with the applicant or li-
censee that provides a schedule for the transfer to 
the Secretary, not later than 5 years after the gen-
393 
eration of any depleted uranium hexafluoride, of title 
and possession of the depleted uranium hexafluoride 
to be generated by the applicant or licensee. 
(2) COST.— 
(A) IN
GENERAL.—Subject to subpara-
graphs (B) and (C), the memorandum of agree-
ment shall specify the cost to be assessed by the 
Secretary for the transfer to the Secretary of 
the depleted uranium hexafluoride. 
(B) 
NONDISCRIMINATORY
BASIS.—The 
cost shall be determined by the Secretary on a 
nondiscriminatory basis. 
(C) COST.—Taking into account the phys-
ical and chemical characteristics of such de-
pleted uranium hexafluoride, the cost shall not 
exceed the cost assessed by the Secretary for 
the acceptance of depleted uranium hexafluoride 
under— 
(i) the memorandum of agreement be-
tween the United States Department of 
Energy and the United States Enrichment 
Corporation Relating to Depleted Ura-
nium, dated June 30, 1998; and
394 
(ii) the Agreement Between the U.S. 
Department of Energy and USEC Inc., 
dated June 17, 2002. 
SEC. 638. NATIONAL URANIUM STOCKPILE. 
(a) STOCKPILE CREATION.—The Secretary of En-
ergy may create a national low-enriched uranium stockpile 
with the goals to— 
(1) enhance national energy security; and 
(2) reduce global proliferation threats. 
(b) SOURCE OF MATERIAL.—The Secretary shall ob-
tain material for the stockpile from— 
(1) material derived from blend-down of Rus-
sian highly enriched uranium derived from weapons 
materials; and 
(2) domestically mined and enriched uranium. 
(c) LIMITATION ON SALES OR TRANSFERS.—Sales or 
transfer of materials in the stockpile shall occur pursuant 
to section 3112 of the USEC Privitization Act (42 U.S.C. 
2297h–10), as amended by section 630 of this Act. 
Subtitle C—Advanced Reactor 
Hydrogen Cogeneration Project 
SEC. 651. PROJECT ESTABLISHMENT. 
The Secretary of Energy (in this subtitle referred to 
as the ‘‘Secretary’’) is directed to establish an Advanced 
Reactor Hydrogen Cogeneration Project.
395 
SEC. 652. PROJECT DEFINITION. 
The project shall consist of the research, develop-
ment, design, construction, and operation of a hydrogen 
production cogeneration research facility that, relative to 
the current commercial reactors, enhances safety features, 
reduces waste production, enhances thermal efficiencies, 
increases proliferation resistance, and has the potential for 
improved economics and physical security in reactor siting. 
This facility shall be constructed so as to enable research 
and development on advanced reactors of the type selected 
and on alternative approaches for reactor-based produc-
tion of hydrogen. 
SEC. 653. PROJECT MANAGEMENT. 
(a) MANAGEMENT.—The project shall be managed 
within the Department by the Office of Nuclear Energy, 
Science, and Technology. 
(b) LEAD LABORATORY.—The lead laboratory for the 
project, providing the site for the reactor construction, 
shall be the Idaho National Engineering and Environ-
mental Laboratory (in this subtitle referred to as 
‘‘INEEL’’). 
(c) STEERING COMMITTEE.—The Secretary shall es-
tablish a national steering committee with membership 
from the national laboratories, universities, and industry 
to provide advice to the Secretary and the Director of the
396 
Office of Nuclear Energy, Science, and Technology on 
technical and program management aspects of the project. 
(d) COLLABORATION.—Project activities shall be con-
ducted at INEEL, other national laboratories, univer-
sities, domestic industry, and international partners. 
SEC. 654. PROJECT REQUIREMENTS. 
(a) RESEARCH AND DEVELOPMENT.— 
(1) IN
GENERAL.—The project shall include 
planning, research and development, design, and 
construction of an advanced, next-generation, nu-
clear energy system suitable for enabling further re-
search and development on advanced reactor tech-
nologies and alternative approaches for reactor-based 
generation of hydrogen. 
(2) REACTOR TEST CAPABILITIES AT INEEL.— 
The project shall utilize, where appropriate, exten-
sive reactor test capabilities resident at INEEL. 
(3) ALTERNATIVES.—The project shall be de-
signed to explore technical, environmental, and eco-
nomic feasibility of alternative approaches for reac-
tor-based hydrogen production. 
(4) INDUSTRIAL LEAD.—The industrial lead for 
the project shall be a company incorporated in the 
United States. 
(b) INTERNATIONAL COLLABORATION.—
397 
(1) IN
GENERAL.—The Secretary shall seek 
international cooperation, participation, and finan-
cial contribution in this project. 
(2) ASSISTANCE FROM INTERNATIONAL PART-
NERS.—The Secretary may contract for assistance 
from specialists or facilities from member countries 
of the Generation IV International Forum, the Rus-
sian Federation, or other international partners 
where such specialists or facilities provide access to 
cost-effective and relevant skills or test capabilities. 
(3) GENERATION IV INTERNATIONAL FORUM.— 
International activities shall be coordinated with the 
Generation IV International Forum. 
(4) GENERATION
IV
NUCLEAR
ENERGY
SYS-
TEMS PROGRAM.—The Secretary may combine this 
project with the Generation IV Nuclear Energy Sys-
tems Program. 
(c) DEMONSTRATION.—The overall project, which 
may involve demonstration of selected project objectives 
in a partner nation, must demonstrate both electricity and 
hydrogen production and may provide flexibility, where 
technically and economically feasible in the design and 
construction, to enable tests of alternative reactor core 
and cooling configurations.
398 
(d) PARTNERSHIPS.—The Secretary shall establish 
cost-shared partnerships with domestic industry or inter-
national participants for the research, development, de-
sign, construction, and operation of the research facility, 
and preference in determining the final project structure 
shall be given to an overall project which retains United 
States leadership while maximizing cost sharing opportu-
nities and minimizing Federal funding responsibilities. 
(e) TARGET DATE.—The Secretary shall select tech-
nologies and develop the project to provide initial testing 
of either hydrogen production or electricity generation by 
2010, or provide a report to Congress explaining why this 
date is not feasible. 
(f) WAIVER
OF CONSTRUCTION TIMELINES.—The 
Secretary is authorized to conduct the Advanced Reactor 
Hydrogen Cogeneration Project without the constraints of 
DOE Order 413.3, relating to program and project man-
agement for the acquisition of capital assets, as necessary 
to meet the specified operational date. 
(g) COMPETITION.—The Secretary may fund up to 
2 teams for up to 1 year to develop detailed proposals for 
competitive evaluation and selection of a single proposal 
and concept for further progress. The Secretary shall de-
fine the format of the competitive evaluation of proposals.
399 
(h) USE OF FACILITIES.—Research facilities in in-
dustry, national laboratories, or universities either within 
the United States or with cooperating international part-
ners may be used to develop the enabling technologies for 
the research facility. Utilization of domestic university- 
based facilities shall be encouraged to provide educational 
opportunities for student development. 
(i) ROLE OF NUCLEAR REGULATORY COMMISSION.— 
(1) IN
GENERAL.—The Nuclear Regulatory 
Commission shall have licensing and regulatory au-
thority for any reactor authorized under this sub-
title, pursuant to section 202 of the Energy Reorga-
nization Act of 1974 (42 U.S.C. 5842). 
(2) RISK-BASED
CRITERIA.—The Secretary 
shall seek active participation of the Nuclear Regu-
latory Commission throughout the project to develop 
risk-based criteria for any future commercial devel-
opment of a similar reactor architecture. 
(j) REPORT.—The Secretary shall develop and trans-
mit to Congress a comprehensive project plan not later 
than April 30, 2004. The project plan shall be updated 
annually with each annual budget submission. 
SEC. 655. AUTHORIZATION OF APPROPRIATIONS. 
(a) RESEARCH, DEVELOPMENT, AND DESIGN PRO-
GRAMS.—The following sums are authorized to be appro-
400 
priated to the Secretary for all activities under this sub-
title except for construction activities described in sub-
section (b): 
(1) For fiscal year 2004, $35,000,000. 
(2) For each of fiscal years 2005 through 2008, 
$150,000,000. 
(3) For fiscal years beyond 2008, such sums as 
are necessary. 
(b) CONSTRUCTION.—There are authorized to be ap-
propriated to the Secretary for all project-related con-
struction activities, to be available until expended, 
$500,000,000. 
Subtitle D—Nuclear Security 
SEC. 661. NUCLEAR FACILITY THREATS. 
(a) STUDY.—The President, in consultation with the 
Nuclear Regulatory Commission (referred to in this sub-
title as the ‘‘Commission’’) and other appropriate Federal, 
State, and local agencies and private entities, shall con-
duct a study to identify the types of threats that pose an 
appreciable risk to the security of the various classes of 
facilities licensed by the Commission under the Atomic 
Energy Act of 1954 (42 U.S.C. 2011 et seq.). Such study 
shall take into account, but not be limited to— 
(1) the events of September 11, 2001;
401 
(2) an assessment of physical, cyber, bio-
chemical, and other terrorist threats; 
(3) the potential for attack on facilities by mul-
tiple coordinated teams of a large number of individ-
uals; 
(4) the potential for assistance in an attack 
from several persons employed at the facility; 
(5) the potential for suicide attacks; 
(6) the potential for water-based and air-based 
threats; 
(7) the potential use of explosive devices of con-
siderable size and other modern weaponry; 
(8) the potential for attacks by persons with a 
sophisticated knowledge of facility operations; 
(9) the potential for fires, especially fires of 
long duration; 
(10) the potential for attacks on spent fuel 
shipments by multiple coordinated teams of a large 
number of individuals; 
(11) the adequacy of planning to protect the 
public health and safety at and around nuclear fa-
cilities, as appropriate, in the event of a terrorist at-
tack against a nuclear facility; and 
(12) the potential for theft and diversion of nu-
clear materials from such facilities.
402 
(b) SUMMARY AND CLASSIFICATION REPORT.—Not 
later than 180 days after the date of the enactment of 
this Act, the President shall transmit to Congress and the 
Commission a report— 
(1) summarizing the types of threats identified 
under subsection (a); and 
(2) classifying each type of threat identified 
under subsection (a), in accordance with existing 
laws and regulations, as either— 
(A) involving attacks and destructive acts, 
including sabotage, directed against the facility 
by an enemy of the United States, whether a 
foreign government or other person, or other-
wise falling under the responsibilities of the 
Federal Government; or 
(B) involving the type of risks that Com-
mission licensees should be responsible for 
guarding against. 
(c) FEDERAL ACTION REPORT.—Not later than 90 
days after the date on which a report is transmitted under 
subsection (b), the President shall transmit to Congress 
a report on actions taken, or to be taken, to address the 
types of threats identified under subsection (b)(2)(A), in-
cluding identification of the Federal, State, and local 
agencies responsible for carrying out the obligations and
403 
authorities of the United States. Such report may include 
a classified annex, as appropriate. 
(d) REGULATIONS.—Not later than 180 days after 
the date on which a report is transmitted under subsection 
(b), the Commission may revise, by rule, the design basis 
threats issued before the date of enactment of this section 
as the Commission considers appropriate based on the 
summary and classification report. 
(e) PHYSICAL SECURITY PROGRAM.—The Commis-
sion shall establish an operational safeguards response 
evaluation program that ensures that the physical protec-
tion capability and operational safeguards response for 
sensitive nuclear facilities, as determined by the Commis-
sion consistent with the protection of public health and 
the common defense and security, shall be tested periodi-
cally through Commission approved or designed, observed, 
and evaluated force-on-force exercises to determine wheth-
er the ability to defeat the design basis threat is being 
maintained. For purposes of this subsection, the term 
‘‘sensitive nuclear facilities’’ includes at a minimum com-
mercial nuclear power plants and category I fuel cycle fa-
cilities. 
(f) CONTROL
OF INFORMATION.—Notwithstanding 
any other provision of law, the Commission may undertake 
any rulemaking under this subtitle in a manner that will
404 
fully protect safeguards and classified national security in-
formation. 
(g) FEDERAL SECURITY COORDINATORS.— 
(1) REGIONAL
OFFICES.—Not later than 18 
months after the date of enactment of this Act, the 
Commission shall assign a Federal security coordi-
nator, under the employment of the Commission, to 
each region of the Commission. 
(2) RESPONSIBILITIES.—The Federal security 
coordinator shall be responsible for— 
(A) communicating with the Commission 
and other Federal, State, and local authorities 
concerning threats, including threats against 
such classes of facilities as the Commission de-
termines to be appropriate; 
(B) ensuring that such classes of facilities 
as the Commission determines to be appropriate 
maintain security consistent with the security 
plan in accordance with the appropriate threat 
level; and 
(C) assisting in the coordination of secu-
rity measures among the private security forces 
at such classes of facilities as the Commission 
determines to be appropriate and Federal, 
State, and local authorities, as appropriate.
405 
(h) TRAINING PROGRAM.—The President shall estab-
lish a program to provide technical assistance and training 
to Federal agencies, the National Guard, and State and 
local law enforcement and emergency response agencies in 
responding to threats against a designated nuclear facility. 
SEC. 
662. 
FINGERPRINTING 
FOR 
CRIMINAL 
HISTORY 
RECORD CHECKS. 
(a) IN GENERAL.—Subsection a. of section 149 of 
the Atomic Energy Act of 1954 (42 U.S.C. 2169(a)) is 
amended— 
(1) by striking ‘‘a. The Nuclear’’ and all that 
follows through ‘‘section 147.’’ and inserting the fol-
lowing: 
‘‘a. IN GENERAL.— 
‘‘(1) REQUIREMENTS.— 
‘‘(A) IN GENERAL.—The Commission shall 
require each individual or entity— 
‘‘(i) that is licensed or certified to en-
gage in an activity subject to regulation by 
the Commission; 
‘‘(ii) that has filed an application for 
a license or certificate to engage in an ac-
tivity subject to regulation by the Commis-
sion; or
406 
‘‘(iii) that has notified the Commis-
sion, in writing, of an intent to file an ap-
plication for licensing, certification, permit-
ting, or approval of a product or activity 
subject to regulation by the Commission, 
to fingerprint each individual described in sub-
paragraph (B) before the individual is per-
mitted unescorted access or access, whichever is 
applicable, as described in subparagraph (B). 
‘‘(B) INDIVIDUALS
REQUIRED
TO
BE 
FINGERPRINTED.—The Commission shall re-
quire to be fingerprinted each individual who— 
‘‘(i) is permitted unescorted access 
to— 
‘‘(I) a utilization facility; or 
‘‘(II) 
radioactive 
material 
or 
other property subject to regulation 
by the Commission that the Commis-
sion determines to be of such signifi-
cance to the public health and safety 
or the common defense and security 
as to warrant fingerprinting and back-
ground checks; or 
‘‘(ii) is permitted access to safeguards 
information under section 147.’’;
407 
(2) by striking ‘‘All fingerprints obtained by a 
licensee or applicant as required in the preceding 
sentence’’ and inserting the following: 
‘‘(2) SUBMISSION
TO
THE
ATTORNEY
GEN-
ERAL.—All fingerprints obtained by an individual or 
entity as required in paragraph (1)’’; 
(3) by striking ‘‘The costs of any identification 
and records check conducted pursuant to the pre-
ceding sentence shall be paid by the licensee or ap-
plicant.’’ and inserting the following: 
‘‘(3) COSTS.—The costs of any identification 
and records check conducted pursuant to paragraph 
(1) shall be paid by the individual or entity required 
to conduct the fingerprinting under paragraph 
(1)(A).’’; and 
(4) by striking ‘‘Notwithstanding any other pro-
vision of law, the Attorney General may provide all 
the results of the search to the Commission, and, in 
accordance with regulations prescribed under this 
section, the Commission may provide such results to 
licensee or applicant submitting such fingerprints.’’ 
and inserting the following: 
‘‘(4) PROVISION TO INDIVIDUAL OR ENTITY RE-
QUIRED
TO
CONDUCT
FINGERPRINTING.—Notwith-
standing any other provision of law, the Attorney
408 
General may provide all the results of the search to 
the Commission, and, in accordance with regulations 
prescribed under this section, the Commission may 
provide such results to the individual or entity re-
quired to conduct the fingerprinting under para-
graph (1)(A).’’. 
(b) ADMINISTRATION.—Subsection c. of section 149 
of the Atomic Energy Act of 1954 (42 U.S.C. 2169(c)) 
is amended— 
(1) by striking ‘‘, subject to public notice and 
comment, regulations—’’ and inserting ‘‘require-
ments—’’; and 
(2) 
by 
striking, 
in 
paragraph 
(2)(B), 
‘‘unescorted access to the facility of a licensee or ap-
plicant’’ and inserting ‘‘unescorted access to a utili-
zation facility, radioactive material, or other prop-
erty described in subsection a.(1)(B)’’. 
(c) BIOMETRIC METHODS.—Subsection d. of section 
149 of the Atomic Energy Act of 1954 (42 U.S.C. 
2169(d)) is redesignated as subsection e., and the fol-
lowing is inserted after subsection c.: 
‘‘d. USE
OF OTHER BIOMETRIC METHODS.—The 
Commission may satisfy any requirement for a person to 
conduct fingerprinting under this section using any other 
biometric method for identification approved for use by
409 
the Attorney General, after the Commission has approved 
the alternative method by rule.’’. 
SEC. 663. USE OF FIREARMS BY SECURITY PERSONNEL OF 
LICENSEES AND CERTIFICATE HOLDERS OF 
THE COMMISSION. 
Section 161 of the Atomic Energy Act of 1954 (42 
U.S.C. 2201) is amended by adding at the end the fol-
lowing subsection: 
‘‘(z)(1) notwithstanding section 922(o), (v), and 
(w) of title 18, United States Code, or any similar 
provision of any State law or any similar rule or reg-
ulation of a State or any political subdivision of a 
State prohibiting the transfer or possession of a 
handgun, a rifle or shotgun, a short-barreled shot-
gun, a short-barreled rifle, a machinegun, a semi-
automatic assault weapon, ammunition for the fore-
going, or a large capacity ammunition feeding de-
vice, authorize security personnel of licensees and 
certificate holders of the Commission (including em-
ployees of contractors of licensees and certificate 
holders) to receive, possess, transport, import, and 
use 1 or more of those weapons, ammunition, or de-
vices, if the Commission determines that—
410 
‘‘(A) such authorization is necessary to the 
discharge of the security personnel’s official du-
ties; and 
‘‘(B) the security personnel— 
‘‘(i) are not otherwise prohibited from 
possessing or receiving a firearm under 
Federal or State laws pertaining to posses-
sion of firearms by certain categories of 
persons; 
‘‘(ii) have successfully completed re-
quirements established through guidelines 
implementing this subsection for training 
in use of firearms and tactical maneuvers; 
‘‘(iii) are engaged in the protection 
of— 
‘‘(I) facilities owned or operated 
by a Commission licensee or certifi-
cate holder that are designated by the 
Commission; or 
‘‘(II) 
radioactive 
material 
or 
other property owned or possessed by 
a person that is a licensee or certifi-
cate holder of the Commission, or that 
is being transported to or from a fa-
cility owned or operated by such a li-
411 
censee or certificate holder, and that 
has been determined by the Commis-
sion to be of significance to the com-
mon defense and security or public 
health and safety; and 
‘‘(iv) are discharging their official du-
ties. 
‘‘(2) Such receipt, possession, transportation, 
importation, or use shall be subject to— 
‘‘(A) chapter 44 of title 18, United States 
Code, except for section 922(a)(4), (o), (v), and 
(w); 
‘‘(B) chapter 53 of title 26, United States 
Code, except for section 5844; and 
‘‘(C) a background check by the Attorney 
General, based on fingerprints and including a 
check of the system established under section 
103(b) of the Brady Handgun Violence Preven-
tion Act (18 U.S.C. 922 note) to determine 
whether the person applying for the authority is 
prohibited from possessing or receiving a fire-
arm under Federal or State law. 
‘‘(3) This subsection shall become effective 
upon the issuance of guidelines by the Commission,
412 
with the approval of the Attorney General, to govern 
the implementation of this subsection. 
‘‘(4) In this subsection, the terms ‘handgun’, 
‘rifle’, ‘shotgun’, ‘firearm’, ‘ammunition’, ‘machine-
gun’, ‘semiautomatic assault weapon’, ‘large capacity 
ammunition feeding device’, ‘short-barreled shotgun’, 
and ‘short-barreled rifle’ shall have the meanings 
given those terms in section 921(a) of title 18, 
United States Code.’’. 
SEC. 664. UNAUTHORIZED INTRODUCTION OF DANGEROUS 
WEAPONS. 
Section 229 a. of the Atomic Energy Act of 1954 (42 
U.S.C. 2278a(a)) is amended in the first sentence by in-
serting ‘‘or subject to the licensing authority of the Com-
mission or to certification by the Commission under this 
Act or any other Act’’ before the period at the end. 
SEC. 665. SABOTAGE OF NUCLEAR FACILITIES OR FUEL. 
(a) IN GENERAL.—Section 236 a. of the Atomic En-
ergy Act of 1954 (42 U.S.C. 2284(a)) is amended— 
(1) in paragraph (2), by striking ‘‘storage facil-
ity’’ and inserting ‘‘storage, treatment, or disposal 
facility’’; 
(2) in paragraph (3)—
413 
(A) by striking ‘‘such a utilization facility’’ 
and inserting ‘‘a utilization facility licensed 
under this Act’’; and 
(B) by striking ‘‘or’’ at the end; 
(3) in paragraph (4)— 
(A) by striking ‘‘facility licensed’’ and in-
serting ‘‘, uranium conversion, or nuclear fuel 
fabrication facility licensed or certified’’; and 
(B) by striking the comma at the end and 
inserting a semicolon; and 
(4) by inserting after paragraph (4) the fol-
lowing: 
‘‘(5) any production, utilization, waste storage, 
waste treatment, waste disposal, uranium enrich-
ment, uranium conversion, or nuclear fuel fabrica-
tion facility subject to licensing or certification 
under this Act during construction of the facility, if 
the destruction or damage caused or attempted to be 
caused could adversely affect public health and safe-
ty during the operation of the facility; 
‘‘(6) any primary facility or backup facility 
from which a radiological emergency preparedness 
alert and warning system is activated; or 
‘‘(7) any radioactive material or other property 
subject to regulation by the Nuclear Regulatory
414 
Commission that, before the date of the offense, the 
Nuclear Regulatory Commission determines, by 
order or regulation published in the Federal Reg-
ister, is of significance to the public health and safe-
ty or to common defense and security,’’. 
(b) PENALTIES.—Section 236 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2284) is amended by striking 
‘‘$10,000 or imprisoned for not more than 20 years, or 
both, and, if death results to any person, shall be impris-
oned for any term of years or for life’’ both places it ap-
pears and inserting ‘‘$1,000,000 or imprisoned for up to 
life without parole’’. 
SEC. 666. SECURE TRANSFER OF NUCLEAR MATERIALS. 
(a) AMENDMENT.—Chapter 14 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2201–2210b) is amended by add-
ing at the end the following new section: 
‘‘SEC. 170C. SECURE TRANSFER OF NUCLEAR MATERIALS. 
‘‘a. The Nuclear Regulatory Commission shall estab-
lish a system to ensure that materials described in sub-
section b., when transferred or received in the United 
States by any party pursuant to an import or export li-
cense issued pursuant to this Act, are accompanied by a 
manifest describing the type and amount of materials 
being transferred or received. Each individual receiving or 
accompanying the transfer of such materials shall be sub-
415 
ject to a security background check conducted by appro-
priate Federal entities. 
‘‘b. Except as otherwise provided by the Commission 
by regulation, the materials referred to in subsection a. 
are byproduct materials, source materials, special nuclear 
materials, high-level radioactive waste, spent nuclear fuel, 
transuranic waste, and low-level radioactive waste (as de-
fined in section 2(16) of the Nuclear Waste Policy Act 
of 1982 (42 U.S.C. 10101(16))).’’. 
(b) REGULATIONS.—Not later than 1 year after the 
date of the enactment of this Act, and from time to time 
thereafter as it considers necessary, the Nuclear Regu-
latory Commission shall issue regulations identifying ra-
dioactive materials or classes of individuals that, con-
sistent with the protection of public health and safety and 
the common defense and security, are appropriate excep-
tions to the requirements of section 170C of the Atomic 
Energy Act of 1954, as added by subsection (a) of this 
section. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect upon the issuance of regu-
lations under subsection (b), except that the background 
check requirement shall become effective on a date estab-
lished by the Commission.
416 
(d) EFFECT ON OTHER LAW.—Nothing in this sec-
tion or the amendment made by this section shall waive, 
modify, or affect the application of chapter 51 of title 49, 
United States Code, part A of subtitle V of title 49, 
United States Code, part B of subtitle VI of title 49, 
United States Code, and title 23, United States Code. 
(e) TABLE OF SECTIONS AMENDMENT.—The table of 
sections for chapter 14 of the Atomic Energy Act of 1954 
is amended by adding at the end the following new item: 
‘‘Sec. 170C. Secure transfer of nuclear materials.’’. 
SEC. 667. DEPARTMENT OF HOMELAND SECURITY CON-
SULTATION. 
Before issuing a license for a utilization facility, the 
Nuclear Regulatory Commission shall consult with the De-
partment of Homeland Security concerning the potential 
vulnerabilities of the location of the proposed facility to 
terrorist attack. 
SEC. 668. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—There are authorized to be appro-
priated such sums as are necessary to carry out this sub-
title and the amendments made by this subtitle. 
(b) AGGREGATE AMOUNT
OF CHARGES.—Section 
6101(c)(2)(A) of the Omnibus Budget Reconciliation Act 
of 1990 (42 U.S.C. 2214(c)(2)(A)) is amended— 
(1) in clause (i), by striking ‘‘and’’ at the end;
417 
(2) in clause (ii), by striking the period at the 
end and inserting ‘‘; and’’ and 
(3) by adding at the end the following: 
‘‘(iii) amounts appropriated to the 
Commission for homeland security activi-
ties of the Commission for the fiscal year, 
except for the costs of fingerprinting and 
background checks required by section 149 
of the Atomic Energy Act of 1954 (42 
U.S.C. 2169) and the costs of conducting 
security inspections.’’. 
TITLE VII—VEHICLES AND 
FUELS 
Subtitle A—Existing Programs 
SEC. 701. USE OF ALTERNATIVE FUELS BY DUAL-FUELED 
VEHICLES. 
Section 400AA(a)(3)(E) of the Energy Policy and 
Conservation Act (42 U.S.C. 6374(a)(3)(E)) is amended 
to read as follows: 
‘‘(E)(i) Dual fueled vehicles acquired pursuant to this 
section shall be operated on alternative fuels unless the 
Secretary determines that an agency qualifies for a waiver 
of such requirement for vehicles operated by the agency 
in a particular geographic area in which—
418 
‘‘(I) the alternative fuel otherwise required to 
be used in the vehicle is not reasonably available to 
retail purchasers of the fuel, as certified to the Sec-
retary by the head of the agency; or 
‘‘(II) the cost of the alternative fuel otherwise 
required to be used in the vehicle is unreasonably 
more expensive compared to gasoline, as certified to 
the Secretary by the head of the agency. 
‘‘(ii) The Secretary shall monitor compliance with 
this subparagraph by all such fleets and shall report annu-
ally to Congress on the extent to which the requirements 
of this subparagraph are being achieved. The report shall 
include information on annual reductions achieved from 
the use of petroleum-based fuels and the problems, if any, 
encountered in acquiring alternative fuels.’’. 
SEC. 702. NEIGHBORHOOD ELECTRIC VEHICLES. 
(a) AMENDMENTS.—Section 301 of the Energy Pol-
icy Act of 1992 (42 U.S.C. 13211) is amended— 
(1) in paragraph (3), by striking ‘‘or a dual 
fueled vehicle’’ and inserting ‘‘, a dual fueled vehicle, 
or a neighborhood electric vehicle’’; 
(2) in paragraph (13), by striking ‘‘and’’ at the 
end; 
(3) in paragraph (14), by striking the period at 
the end and inserting ‘‘; and’’; and
419 
(4) by adding at the end the following: 
‘‘(15) the term ‘neighborhood electric vehicle’ 
means a motor vehicle that— 
‘‘(A) meets the definition of a low-speed 
vehicle (as defined in part 571 of title 49, Code 
of Federal Regulations); 
‘‘(B) meets the definition of a zero-emis-
sion vehicle (as defined in section 86.1702–99 
of title 40, Code of Federal Regulations); 
‘‘(C) meets the requirements of Federal 
Motor Vehicle Safety Standard No. 500; and 
‘‘(D) has a maximum speed of not greater 
than 25 miles per hour.’’. 
(b) CREDITS.—Notwithstanding section 508 of the 
Energy Policy Act of 1992 (42 U.S.C. 13258) or any other 
provision of law, a neighborhood electric vehicle shall not 
be allocated credit as more than 1 vehicle for purposes 
of determining compliance with any requirement under 
title III or title V of such Act. 
SEC. 703. CREDITS FOR MEDIUM AND HEAVY DUTY DEDI-
CATED VEHICLES. 
Section 508 of the Energy Policy Act of 1992 (42 
U.S.C. 13258) is amended by adding at the end the fol-
lowing:
420 
‘‘(e) CREDIT
FOR PURCHASE
OF MEDIUM
AND 
HEAVY DUTY DEDICATED VEHICLES.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) HEAVY
DUTY
DEDICATED
VEHI-
CLE.—The term ‘heavy duty dedicated vehicle’ 
means a dedicated vehicle that has a gross vehi-
cle weight rating of more than 14,000 pounds. 
‘‘(B) MEDIUM
DUTY
DEDICATED
VEHI-
CLE.—The term ‘medium duty dedicated vehi-
cle’ means a dedicated vehicle that has a gross 
vehicle weight rating of more than 8,500 
pounds but not more than 14,000 pounds. 
‘‘(2) CREDITS FOR MEDIUM DUTY VEHICLES.— 
The Secretary shall issue 2 full credits to a fleet or 
covered person under this title, if the fleet or covered 
person acquires a medium duty dedicated vehicle. 
‘‘(3) CREDITS FOR HEAVY DUTY VEHICLES.— 
The Secretary shall issue 3 full credits to a fleet or 
covered person under this title, if the fleet or covered 
person acquires a heavy duty dedicated vehicle. 
‘‘(4) USE OF CREDITS.—At the request of a 
fleet or covered person allocated a credit under this 
subsection, the Secretary shall, for the year in which 
the acquisition of the dedicated vehicle is made, 
treat that credit as the acquisition of 1 alternative
421 
fueled vehicle that the fleet or covered person is re-
quired to acquire under this title.’’. 
SEC. 704. INCREMENTAL COST ALLOCATION. 
Section 303(c) of the Energy Policy Act of 1992 (42 
U.S.C. 13212(c)) is amended by striking ‘‘may’’ and in-
serting ‘‘shall’’. 
SEC. 705. ALTERNATIVE COMPLIANCE AND FLEXIBILITY. 
(a) ALTERNATIVE COMPLIANCE.— 
(1) IN GENERAL.—Title V of the Energy Policy 
Act of 1992 (42 U.S.C. 13251 et seq.) is amended— 
(A) by redesignating section 514 as section 
515; and 
(B) by inserting after section 513 the fol-
lowing: 
‘‘SEC. 514. ALTERNATIVE COMPLIANCE. 
‘‘(a) APPLICATION FOR WAIVER.—Any covered per-
son subject to section 501 and any State subject to section 
507(o) may petition the Secretary for a waiver of the ap-
plicable requirements of section 501 or 507(o). 
‘‘(b) GRANT OF WAIVER.—The Secretary may grant 
a waiver of the requirements of section 501 or 507(o) 
upon a showing that the fleet owned, operated, leased, or 
otherwise controlled by the State or covered person— 
‘‘(1) will achieve a reduction in its annual con-
sumption of petroleum fuels equal to the reduction
422 
in consumption of petroleum that would result from 
100 percent compliance with fuel use requirements 
in section 501, or, for entities covered under section 
507(o), a reduction equal to the covered State enti-
ty’s consumption of alternative fuels if all its alter-
native fuel vehicles given credit under section 508 
were to use alternative fuel 100 percent of the time; 
and 
‘‘(2) is in compliance with all applicable vehicle 
emission standards established by the Administrator 
under the Clean Air Act (42 U.S.C. 7401 et seq.). 
‘‘(c) REVOCATION OF WAIVER.—The Secretary shall 
revoke any waiver granted under this section if the State 
or covered person fails to comply with subsection (b).’’. 
(2) TABLE OF CONTENTS AMENDMENT.—The 
table of contents of the Energy Policy Act of 1992 
(42 U.S.C. prec. 13201) is amended by striking the 
item relating to section 514 and inserting the fol-
lowing: 
‘‘Sec. 514. Alternative compliance. 
‘‘Sec. 515. Authorization of appropriations.’’. 
(b) CREDITS.—Section 508 of the Energy Policy Act 
of 1992 (42 U.S.C. 13258) (as amended by section 703) 
is amended— 
(1) by redesignating subsections (b) through (e) 
as subsections (c) through (f), respectively;
423 
(2) by striking subsection (a) and inserting the 
following: 
‘‘(a) IN GENERAL.—The Secretary shall allocate a 
credit to a fleet or covered person that is required to ac-
quire an alternative fueled vehicle under this title, if that 
fleet or person acquires an alternative fueled vehicle— 
‘‘(1) in excess of the number that fleet or per-
son is required to acquire under this title; 
‘‘(2) before the date on which that fleet or per-
son is required to acquire an alternative fueled vehi-
cle under this title; or 
‘‘(3) that is eligible to receive credit under sub-
section (b). 
‘‘(b) MAXIMUM AVAILABLE POWER.—The Secretary 
shall allocate credit to a fleet under subsection (a)(3) for 
the acquisition by the fleet of a hybrid vehicle as follows: 
‘‘(1) For a hybrid vehicle with at least 4 per-
cent but less than 10 percent maximum available 
power, the Secretary shall allocate 25 percent of 1 
credit. 
‘‘(2) For a hybrid vehicle with at least 10 per-
cent but less than 20 percent maximum available 
power, the Secretary shall allocate 50 percent of 1 
credit.
424 
‘‘(3) For a hybrid vehicle with at least 20 per-
cent but less than 30 percent maximum available 
power, the Secretary shall allocate 75 percent of 1 
credit. 
‘‘(4) For a hybrid vehicle with 30 percent or 
more maximum available power, the Secretary shall 
allocate 1 credit.’’; and 
(3) by adding at the end the following: 
‘‘(g) CREDIT
FOR INVESTMENT
IN ALTERNATIVE 
FUEL INFRASTRUCTURE.— 
‘‘(1) DEFINITION OF QUALIFYING INFRASTRUC-
TURE.—In this subsection, the term ‘qualifying in-
frastructure’ means— 
‘‘(A) equipment required to refuel or re-
charge alternative fueled vehicles; 
‘‘(B) facilities or equipment required to 
maintain, repair, or operate alternative fueled 
vehicles; and 
‘‘(C) such other activities as the Secretary 
considers to constitute an appropriate expendi-
ture in support of the operation, maintenance, 
or further widespread adoption of or utilization 
of alternative fueled vehicles. 
‘‘(2) ISSUANCE
OF
CREDITS.—The Secretary 
shall issue a credit to a fleet or covered person under
425 
this title for investment in qualifying infrastructure 
if the qualifying infrastructure is open to the general 
public during regular business hours. 
‘‘(3) AMOUNT.—For the purpose of credits 
under this subsection— 
‘‘(A) 1 credit shall be equal to a minimum 
investment of $25,000 in cash or equivalent ex-
penditure, as determined by the Secretary; and 
‘‘(B) except in the case of a Federal or 
State fleet, no part of the investment may be 
provided by Federal or State funds. 
‘‘(4) USE OF CREDITS.—At the request of a 
fleet or covered person allocated a credit under this 
subsection, the Secretary shall, for the year in which 
the investment is made, treat that credit as the ac-
quisition of 1 alternative fueled vehicle that the fleet 
or covered person is required to acquire under this 
title. 
‘‘(h) 
DEFINITION
OF
MAXIMUM
AVAILABLE 
POWER.—In this section, the term ‘maximum available 
power’ means the quotient obtained by dividing— 
‘‘(1) the maximum power available from the en-
ergy storage device of a hybrid vehicle, during a 
standard 10-second pulse power or equivalent test; 
by
426 
‘‘(2) the sum of— 
‘‘(A) the maximum power described in sub-
paragraph (A); and 
‘‘(B) the net power of the internal combus-
tion or heat engine, as determined in accord-
ance with standards established by the Society 
of Automobile Engineers.’’. 
(c) LEASE CONDENSATE FUELS.—Section 301 of the 
Energy Policy Act of 1992 (42 U.S.C. 13211) (as amend-
ed by section 702) is amended— 
(1) in paragraph (2), by inserting ‘‘mixtures 
containing 50 percent or more by volume of lease 
condensate or fuels extracted from lease conden-
sate;’’ after ‘‘liquefied petroleum gas;’’; 
(2) in paragraph (14)— 
(A) by inserting ‘‘mixtures containing 50 
percent or more by volume of lease condensate 
or fuels extracted from lease condensate,’’ after 
‘‘liquefied petroleum gas,’’; and 
(B) by striking ‘‘and’’ at the end; 
(3) in paragraph (15), by striking the period at 
the end and inserting ‘‘; and’’; and 
(4) by adding at the end the following: 
‘‘(16) the term ‘lease condensate’ means a mix-
ture, primarily of pentanes and heavier hydro-
427 
carbons, that is recovered as a liquid from natural 
gas in lease separation facilities.’’. 
(d) LEASE CONDENSATE USE CREDITS.— 
(1) IN GENERAL.—Title III of the Energy Pol-
icy Act of 1992 (42 U.S.C. 13211 et seq.) is amend-
ed by adding at the end the following: 
‘‘SEC. 313. LEASE CONDENSATE USE CREDITS. 
‘‘(a) IN GENERAL.—Subject to subsection (d), the 
Secretary shall allocate 1 credit under this section to a 
fleet or covered person for each qualifying volume of the 
lease condensate component of fuel containing at least 50 
percent lease condensate, or fuels extracted from lease 
condensate, after the date of enactment of this section for 
use by the fleet or covered person in vehicles owned or 
operated by the fleet or covered person that weigh more 
than 8,500 pounds gross vehicle weight rating. 
‘‘(b) REQUIREMENTS.—A credit allocated under this 
section— 
‘‘(1) shall be subject to the same exceptions, 
authority, documentation, and use of credits that are 
specified for qualifying volumes of biodiesel in sec-
tion 312; and 
‘‘(2) shall not be considered a credit under sec-
tion 508. 
‘‘(c) REGULATION.—
428 
‘‘(1) IN GENERAL.—Subject to subsection (d), 
not later than January 1, 2004, after the collection 
of appropriate information and data that consider 
usage options, uses in other industries, products, or 
processes, potential volume capacities, costs, air 
emissions, and fuel efficiencies, the Secretary shall 
issue a regulation establishing requirements and pro-
cedures for the implementation of this section. 
‘‘(2) QUALIFYING
VOLUME.—The regulation 
shall include a determination of an appropriate 
qualifying volume for lease condensate, except that 
in no case shall the Secretary determine that the 
qualifying volume for lease condensate is less than 
1,125 gallons. 
‘‘(d) APPLICABILITY.—This section applies unless the 
Secretary finds that the use of lease condensate as an al-
ternative fuel would adversely affect public health or safe-
ty or ambient air quality or the environment.’’. 
(2) TABLE OF CONTENTS AMENDMENT.—The 
table of contents of the Energy Policy Act of 1992 
(42 U.S.C. prec. 13201) is amended by adding at 
the end of the items relating to title III the fol-
lowing: 
‘‘Sec. 313. Lease condensate use credits.’’. 
(e) EMERGENCY EXEMPTION.—Section 301 of the 
Energy Policy Act of 1992 (42 U.S.C. 13211) (as amend-
429 
ed by section 702 and this section) is amended in para-
graph (9)(E) by inserting before the semicolon at the end 
‘‘, including vehicles directly used in the emergency repair 
of transmission lines and in the restoration of electricity 
service following power outages, as determined by the Sec-
retary’’. 
SEC. 706. REVIEW OF ENERGY POLICY ACT OF 1992 PRO-
GRAMS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this section, the Secretary of Energy 
shall complete a study to determine the effect that titles 
III, IV, and V of the Energy Policy Act of 1992 (42 
U.S.C. 13211 et seq.) have had on— 
(1) the development of alternative fueled vehicle 
technology; 
(2) the availability of that technology in the 
market; and 
(3) the cost of alternative fueled vehicles. 
(b) TOPICS.—As part of the study under subsection 
(a), the Secretary shall specifically identify— 
(1) the number of alternative fueled vehicles ac-
quired by fleets or covered persons required to ac-
quire alternative fueled vehicles;
430 
(2) the quantity, by type, of alternative fuel ac-
tually used in alternative fueled vehicles acquired by 
fleets or covered persons; 
(3) the quantity of petroleum displaced by the 
use of alternative fuels in alternative fueled vehicles 
acquired by fleets or covered persons; 
(4) the direct and indirect costs of compliance 
with requirements under titles III, IV, and V of the 
Energy Policy Act of 1992 (42 U.S.C. 13211 et 
seq.), including— 
(A) vehicle acquisition requirements im-
posed on fleets or covered persons; 
(B) administrative and recordkeeping ex-
penses; 
(C) fuel and fuel infrastructure costs; 
(D) associated training and employee ex-
penses; and 
(E) any other factors or expenses the Sec-
retary determines to be necessary to compile re-
liable estimates of the overall costs and benefits 
of complying with programs under those titles 
for fleets, covered persons, and the national 
economy; 
(5) the existence of obstacles preventing compli-
ance with vehicle acquisition requirements and in-
431 
creased use of alternative fuel in alternative fueled 
vehicles acquired by fleets or covered persons; and 
(6) the projected impact of amendments to the 
Energy Policy Act of 1992 made by this title. 
(c) REPORT.—Upon completion of the study under 
this section, the Secretary shall submit to Congress a re-
port that describes the results of the study and includes 
any recommendations of the Secretary for legislative or 
administrative changes concerning the alternative fueled 
vehicle requirements under titles III, IV and V of the En-
ergy Policy Act of 1992 (42 U.S.C. 13211 et seq.). 
SEC. 707. REPORT CONCERNING COMPLIANCE WITH AL-
TERNATIVE FUELED VEHICLE PURCHASING 
REQUIREMENTS. 
Section 310(b)(1) of the Energy Policy Act of 1992 
(42 U.S.C. 13218(b)(1)) is amended by striking ‘‘1 year 
after the date of enactment of this subsection’’ and insert-
ing ‘‘February 15, 2004’’. 
Subtitle B—Hybrid Vehicles, Ad-
vanced Vehicles, and Fuel Cell 
Buses 
PART I—HYBRID VEHICLES 
SEC. 711. HYBRID VEHICLES. 
The Secretary of Energy shall accelerate efforts di-
rected toward the improvement of batteries and other re-
432 
chargeable energy storage systems, power electronics, hy-
brid systems integration, and other technologies for use 
in hybrid vehicles. 
PART II—ADVANCED VEHICLES 
SEC. 721. DEFINITIONS. 
In this part: 
(1) ALTERNATIVE FUELED VEHICLE.— 
(A) IN GENERAL.—The term ‘‘alternative 
fueled vehicle’’ means a vehicle propelled solely 
on an alternative fuel (as defined in section 301 
of the Energy Policy Act of 1992 (42 U.S.C. 
13211)). 
(B) EXCLUSION.—The term ‘‘alternative 
fueled vehicle’’ does not include a vehicle that 
the Secretary determines, by regulation, does 
not yield substantial environmental benefits 
over a vehicle operating solely on gasoline or 
diesel derived from fossil fuels. 
(2) FUEL CELL VEHICLE.—The term ‘‘fuel cell 
vehicle’’ means a vehicle propelled by an electric 
motor powered by a fuel cell system that converts 
chemical energy into electricity by combining oxygen 
(from air) with hydrogen fuel that is stored on the 
vehicle or is produced onboard by reformation of a 
hydrocarbon fuel. Such fuel cell system may or may
433 
not include the use of auxiliary energy storage sys-
tems to enhance vehicle performance. 
(3) HYBRID VEHICLE.—The term ‘‘hybrid vehi-
cle’’ means a medium or heavy duty vehicle propelled 
by an internal combustion engine or heat engine 
using any combustible fuel and an onboard recharge-
able energy storage device. 
(4) NEIGHBORHOOD ELECTRIC VEHICLE.—The 
term ‘‘neighborhood electric vehicle’’ means a motor 
vehicle that— 
(A) meets the definition of a low-speed ve-
hicle (as defined in part 571 of title 49, Code 
of Federal Regulations); 
(B) meets the definition of a zero-emission 
vehicle (as defined in section 86.1702–99 of 
title 40, Code of Federal Regulations); 
(C) meets the requirements of Federal 
Motor Vehicle Safety Standard No. 500; and 
(D) has a maximum speed of not greater 
than 25 miles per hour. 
(5) PILOT
PROGRAM.—The term ‘‘pilot pro-
gram’’ means the competitive grant program estab-
lished under section 722. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy.
434 
(7) ULTRA-LOW
SULFUR
DIESEL
VEHICLE.— 
The term ‘‘ultra-low sulfur diesel vehicle’’ means a 
vehicle manufactured in any of model years 2003 
through 2006 powered by a heavy-duty diesel engine 
that— 
(A) is fueled by diesel fuel that contains 
sulfur at not more than 15 parts per million; 
and 
(B) emits not more than the lesser of— 
(i) for vehicles manufactured in— 
(I) model year 2003, 3.0 grams 
per brake horsepower-hour of oxides 
of nitrogen and .01 grams per brake 
horsepower-hour of particulate matter; 
and 
(II) model years 2004 through 
2006, 2.5 grams per brake horse-
power-hour of nonmethane hydro-
carbons and oxides of nitrogen and 
.01 grams per brake horsepower-hour 
of particulate matter; or 
(ii) the quantity of emissions of non-
methane hydrocarbons, oxides of nitrogen, 
and particulate matter of the best-per-
forming technology of ultra-low sulfur die-
435 
sel vehicles of the same class and applica-
tion that are commercially available. 
SEC. 722. PILOT PROGRAM. 
(a) ESTABLISHMENT.—The Secretary, in consulta-
tion with the Secretary of Transportation, shall establish 
a competitive grant pilot program, to be administered 
through the Clean Cities Program of the Department of 
Energy, to provide not more than 15 geographically dis-
persed project grants to State governments, local govern-
ments, or metropolitan transportation authorities to carry 
out a project or projects for the purposes described in sub-
section (b). 
(b) GRANT PURPOSES.—A grant under this section 
may be used for the following purposes: 
(1) The acquisition of alternative fueled vehicles 
or fuel cell vehicles, including— 
(A) passenger vehicles (including neighbor-
hood electric vehicles); and 
(B) motorized 2-wheel bicycles, scooters, or 
other vehicles for use by law enforcement per-
sonnel or other State or local government or 
metropolitan transportation authority employ-
ees. 
(2) The acquisition of alternative fueled vehi-
cles, hybrid vehicles, or fuel cell vehicles, including—
436 
(A) buses used for public transportation or 
transportation to and from schools; 
(B) delivery vehicles for goods or services; 
and 
(C) ground support vehicles at public air-
ports (including vehicles to carry baggage or 
push or pull airplanes toward or away from ter-
minal gates). 
(3) The acquisition of ultra-low sulfur diesel ve-
hicles. 
(4) Installation or acquisition of infrastructure 
necessary to directly support an alternative fueled 
vehicle, fuel cell vehicle, or hybrid vehicle project 
funded by the grant, including fueling and other 
support equipment. 
(5) Operation and maintenance of vehicles, in-
frastructure, and equipment acquired as part of a 
project funded by the grant. 
(c) APPLICATIONS.— 
(1) REQUIREMENTS.— 
(A) IN
GENERAL.—The Secretary shall 
issue requirements for applying for grants 
under the pilot program.
437 
(B) MINIMUM REQUIREMENTS.—At a min-
imum, the Secretary shall require that an appli-
cation for a grant— 
(i) be submitted by the head of a 
State or local government or a metropoli-
tan transportation authority, or any com-
bination thereof, and a registered partici-
pant in the Clean Cities Program of the 
Department of Energy; and 
(ii) include— 
(I) a description of the project 
proposed in the application, including 
how the project meets the require-
ments of this part; 
(II) an estimate of the ridership 
or degree of use of the project; 
(III) an estimate of the air pollu-
tion emissions reduced and fossil fuel 
displaced as a result of the project, 
and a plan to collect and disseminate 
environmental data, related to the 
project to be funded under the grant, 
over the life of the project; 
(IV) a description of how the 
project will be sustainable without
438 
Federal assistance after the comple-
tion of the term of the grant; 
(V) a complete description of the 
costs of the project, including acquisi-
tion, 
construction, 
operation, 
and 
maintenance costs over the expected 
life of the project; 
(VI) a description of which costs 
of the project will be supported by 
Federal assistance under this part; 
and 
(VII) documentation to the satis-
faction of the Secretary that diesel 
fuel containing sulfur at not more 
than 15 parts per million is available 
for carrying out the project, and a 
commitment by the applicant to use 
such fuel in carrying out the project. 
(2) PARTNERS.—An applicant under paragraph 
(1) may carry out a project under the pilot program 
in partnership with public and private entities. 
(d) SELECTION CRITERIA.—In evaluating applica-
tions under the pilot program, the Secretary shall— 
(1) consider each applicant’s previous experi-
ence with similar projects; and
439 
(2) give priority consideration to applications 
that— 
(A) are most likely to maximize protection 
of the environment; 
(B) demonstrate the greatest commitment 
on the part of the applicant to ensure funding 
for the proposed project and the greatest likeli-
hood that the project will be maintained or ex-
panded after Federal assistance under this part 
is completed; and 
(C) exceed the minimum requirements of 
subsection (c)(1)(B)(ii). 
(e) PILOT PROJECT REQUIREMENTS.— 
(1) MAXIMUM
AMOUNT.—The Secretary shall 
not provide more than $20,000,000 in Federal as-
sistance under the pilot program to any applicant. 
(2) COST SHARING.—The Secretary shall not 
provide more than 50 percent of the cost, incurred 
during the period of the grant, of any project under 
the pilot program. 
(3) MAXIMUM PERIOD OF GRANTS.—The Sec-
retary shall not fund any applicant under the pilot 
program for more than 5 years. 
(4) DEPLOYMENT
AND
DISTRIBUTION.—The 
Secretary shall seek to the maximum extent prac-
440 
ticable to ensure a broad geographic distribution of 
project sites. 
(5) TRANSFER OF INFORMATION AND KNOWL-
EDGE.—The Secretary shall establish mechanisms to 
ensure that the information and knowledge gained 
by participants in the pilot program are transferred 
among the pilot program participants and to other 
interested parties, including other applicants that 
submitted applications. 
(f) SCHEDULE.— 
(1) PUBLICATION.—Not later than 90 days 
after the date of enactment of this Act, the Sec-
retary shall publish in the Federal Register, Com-
merce Business Daily, and elsewhere as appropriate, 
a request for applications to undertake projects 
under the pilot program. Applications shall be due 
not later than 180 days after the date of publication 
of the notice. 
(2) SELECTION.—Not later than 180 days after 
the date by which applications for grants are due, 
the Secretary shall select by competitive, peer re-
viewed proposal, all applications for projects to be 
awarded a grant under the pilot program. 
(g) LIMIT ON FUNDING.—The Secretary shall pro-
vide not less than 20 nor more than 25 percent of the
441 
grant funding made available under this section for the 
acquisition of ultra-low sulfur diesel vehicles. 
SEC. 723. REPORTS TO CONGRESS. 
(a) INITIAL REPORT.—Not later than 60 days after 
the date on which grants are awarded under this part, 
the Secretary shall submit to Congress a report 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
442 
(2) an estimate of the potential benefits to the 
environment to be derived from widespread applica-
tion of alternative fueled vehicles and ultra-low sul-
fur diesel vehicles. 
SEC. 724. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Sec-
retary to carry out this part $200,000,000, to remain 
available until expended. 
PART III—FUEL CELL BUSES 
SEC. 731. FUEL CELL TRANSIT BUS DEMONSTRATION. 
(a) IN GENERAL.—The Secretary of Energy, in con-
sultation with the Secretary of Transportation, shall es-
tablish a transit bus demonstration program to make com-
petitive, merit-based awards for 5-year projects to dem-
onstrate not more than 25 fuel cell transit buses (and nec-
essary infrastructure) in 5 geographically dispersed local-
ities. 
(b) PREFERENCE.—In selecting projects under this 
section, the Secretary of Energy shall give preference to 
projects that are most likely to mitigate congestion and 
improve air quality. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy to carry out this section $10,000,000 for each of fis-
cal years 2004 through 2008.
443 
Subtitle C—Clean School Buses 
SEC. 741. DEFINITIONS. 
In this subtitle: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Environ-
mental Protection Agency. 
(2) ALTERNATIVE
FUEL.—The term ‘‘alter-
native fuel’’ means liquefied natural gas, compressed 
natural gas, liquefied petroleum gas, hydrogen, pro-
pane, or methanol or ethanol at no less than 85 per-
cent by volume. 
(3) ALTERNATIVE
FUEL
SCHOOL
BUS.—The 
term ‘‘alternative fuel school bus’’ means a school 
bus that meets all of the requirements of this sub-
title and is operated solely on an alternative fuel. 
(4) EMISSIONS
CONTROL
RETROFIT
TECH-
NOLOGY.—The term ‘‘emissions control retrofit tech-
nology’’ means a particulate filter or other emissions 
control equipment that is verified or certified by the 
Administrator or the California Air Resources Board 
as an effective emission reduction technology when 
installed on an existing school bus. 
(5) IDLING.—The term ‘‘idling’’ means oper-
ating an engine while remaining stationary for more 
than approximately 15 minutes, except that the term
444 
does not apply to routine stoppages associated with 
traffic movement or congestion. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Energy. 
(7) ULTRA-LOW SULFUR DIESEL FUEL.—The 
term ‘‘ultra-low sulfur diesel fuel’’ means diesel fuel 
that contains sulfur at not more than 15 parts per 
million. 
(8) ULTRA-LOW SULFUR DIESEL FUEL SCHOOL 
BUS.—The term ‘‘ultra-low sulfur diesel fuel school 
bus’’ means a school bus that meets all of the re-
quirements of this subtitle and is operated solely on 
ultra-low sulfur diesel fuel. 
SEC. 742. PROGRAM FOR REPLACEMENT OF CERTAIN 
SCHOOL BUSES WITH CLEAN SCHOOL BUSES. 
(a) ESTABLISHMENT.—The Administrator, in con-
sultation with the Secretary and other appropriate Federal 
departments and agencies, shall establish a program for 
awarding grants on a competitive basis to eligible entities 
for the replacement of existing school buses manufactured 
before model year 1991 with alternative fuel school buses 
and ultra-low sulfur diesel fuel school buses. 
(b) REQUIREMENTS.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of enactment of this Act, the Administrator
445 
shall establish and publish in the Federal Register 
grant requirements on eligibility for assistance, and 
on implementation of the program established under 
subsection (a), including instructions for the submis-
sion of grant applications and certification require-
ments to ensure compliance with this subtitle. 
(2) APPLICATION
DEADLINES.—The require-
ments established under paragraph (1) shall require 
submission of grant applications not later than— 
(A) in the case of the first year of program 
implementation, the date that is 180 days after 
the publication of the requirements in the Fed-
eral Register; and 
(B) in the case of each subsequent year, 
June 1 of the year. 
(c) ELIGIBLE RECIPIENTS.—A grant shall be award-
ed under this section only— 
(1) to 1 or more local or State governmental 
entities responsible for providing school bus service 
to 1 or more public school systems or responsible for 
the purchase of school buses; 
(2) to 1 or more contracting entities that pro-
vide school bus service to 1 or more public school 
systems, if the grant application is submitted jointly 
with the 1 or more school systems to be served by
464 
(B) document project results and energy 
savings (in estimated units of energy con-
served); 
(C) facilitate partnerships among inter-
ested parties in at least 2 of the fields of— 
(i) transportation; 
(ii) law enforcement; 
(iii) education; 
(iv) public health; 
(v) environment; and 
(vi) energy; 
(D) maximize bicycle facility investments; 
(E) demonstrate methods that may be 
used in other regions of the United States; and 
(F) facilitate the continuation of ongoing 
programs that are sustained by local resources. 
(3) COST SHARING.—At least 20 percent of the 
cost of each pilot project described in paragraph (1) 
shall be provided from State or local sources. 
(d) ENERGY AND BICYCLING RESEARCH STUDY.— 
(1) IN GENERAL.—Not later than 2 years after 
the date of enactment of this Act, the Secretary 
shall enter into a contract with the National Acad-
emy of Sciences for, and the National Academy of 
Sciences shall conduct and submit to Congress a re-
892 
(33) and inserting ‘‘, and’’, and by adding at the 
end the following new paragraph: 
‘‘(34) to the extent provided in section 
179C(c).’’. 
(5) Paragraphs (2)(C) and (3)(C) of section 
1245(a), as amended by this Act, are each amended 
by inserting ‘‘179C,’’ after ‘‘179B,’’. 
(6) The table of sections for part VI of sub-
chapter B of chapter 1, as amended by this Act, is 
amended by inserting after the item relating to sec-
tion 179B the following new item: 
‘‘Sec. 179C. Deduction for capital costs incurred in complying with Environ-
mental Protection Agency sulfur regulations.’’. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to expenses paid or incurred after 
December 31, 2002, in taxable years ending after such 
date. 
SEC. 1325. CREDIT FOR PRODUCTION OF LOW SULFUR DIE-
SEL FUEL. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 (relating to business-related cred-
its), as amended by this Act, is amended by adding at 
the end the following new section: