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‘‘(2) the validity of renewable energy credits sub-
mitted by a retail electric supplier to the Secretary,
and
‘‘(3) the quantity of electricity sales of all retail
electric suppliers.
‘‘(j) ENVIRONMENTAL SAVINGS CLAUSE.—Incremental
hydropower shall be subject to all applicable environmental
laws and licensing and regulatory requirements.
‘‘(k) STATE SAVINGS CLAUSE.—This section does not
preclude a State from requiring additional renewable en-
ergy generation in that State, or from specifying technology
mix.
‘‘(l) DEFINITIONS.—For purposes of this section:
‘‘(1) BIOMASS.—The term ‘biomass’ means any
organic material that is available on a renewable or
recurring basis, including dedicated energy crops,
trees grown for energy production, wood waste and
wood residues, plants (including aquatic plants,
grasses, and agricultural crops), residues, fibers, ani-
mal wastes and other organic waste materials, and
fats and oils, except that with respect to material re-
moved from National Forest System lands the term
includes only organic material from—
‘‘(A) thinnings from trees that are less than
12 inches in diameter;
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‘‘(B) slash;
‘‘(C) brush; and
‘‘(D) mill residues.
‘‘(2) ELIGIBLE FACILITY.—The term ‘eligible fa-
cility’ means—
‘‘(A) a facility for the generation of electric
energy from a renewable energy resource that is
placed in service on or after the date of enact-
ment of this section; or
‘‘(B) a repowering or cofiring increment
that is placed in service on or after the date of
enactment of this section at a facility for the
generation of electric energy from a renewable
energy resource that was placed in service before
that date.
‘‘(3) 
ELIGIBLE
RENEWABLE
ENERGY
RE-
SOURCE.—The term ‘renewable energy resource’
means solar, wind, ocean, or geothermal energy, bio-
mass (excluding solid waste and paper that is com-
monly recycled), landfill gas, a generation offset, or
incremental hydropower.
‘‘(4) GENERATION OFFSET.—The term ‘genera-
tion offset’ means reduced electricity usage metered at
a site where a customer consumes energy from a re-
newable energy technology.
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‘‘(5) EXISTING FACILITY OFFSET.—The term ‘ex-
isting facility offset’ means renewable energy gen-
erated from an existing facility, not classified as an
eligible facility, that is owned or under contract to a
retail electric supplier on the date of enactment of
this section.
‘‘(6) INCREMENTAL
HYDROPOWER.—The term
‘incremental hydropower’ means additional genera-
tion that is achieved from increased efficiency or ad-
ditions of capacity after the date of enactment of this
section at a hydroelectric dam that was placed in
service before that date.
‘‘(7) INDIAN
LAND.—The term ‘Indian land’
means—
‘‘(A) any land within the limits of any In-
dian reservation, pueblo, or rancheria,
‘‘(B) any land not within the limits of any
Indian reservation, pueblo, or rancheria title to
which was on the date of enactment of this para-
graph either held by the United States for the
benefit of any Indian tribe or individual or held
by any Indian tribe or individual subject to re-
striction by the United States against alienation,
‘‘(C) any dependent Indian community,
and
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‘‘(D) any land conveyed to any Alaska Na-
tive corporation under the Alaska Native Claims
Settlement Act.
‘‘(8) INDIAN
TRIBE.—The term ‘Indian tribe’
means any Indian tribe, band, nation, or other orga-
nized group or community, including any Alaskan
Native village or regional or village corporation as
defined in or established pursuant to the Alaska Na-
tive Claims Settlement Act (43 U.S.C. 1601 et seq.),
which is recognized as eligible for the special pro-
grams and services provided by the United States to
Indians because of their status as Indians.
‘‘(9) RENEWABLE ENERGY.—The term ‘renewable
energy’ means electric energy generated by a renew-
able energy resource.
‘‘(10) RENEWABLE
ENERGY
RESOURCE.—The
term ‘renewable energy resource’ means solar, wind,
ocean, or geothermal energy, biomass (including mu-
nicipal solid waste), landfill gas, a generation offset,
or incremental hydropower.
‘‘(11) REPOWERING OR COFIRING INCREMENT.—
The term ‘repowering or cofiring increment’ means
the additional generation from a modification that is
placed in service on or after the date of enactment of
this section to expand electricity production at a fa-
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cility used to generate electric energy from a renew-
able energy resource or to cofire biomass that was
placed in service before the date of enactment of this
section, or the additional generation above the average
generation in the 3 years preceding the date of enact-
ment of this section, to expand electricity production
at a facility used to generate electric energy from a
renewable energy resource or to cofire biomass that
was placed in service before the date of enactment of
this section.
‘‘(12) RETAIL ELECTRIC SUPPLIER.—The term
‘retail electric supplier’ means a person that sells elec-
tric energy to electric consumers and sold not less
than 1,000,000 megawatt-hours of electric energy to
electric consumers for purposes other than resale dur-
ing the preceding calendar year; except that such
term does not include the United States, a State or
any political subdivision of a State, or any agency,
authority, or instrumentality of any one or more of
the foregoing, or a rural electric cooperative.
‘‘(13) 
RETAIL
ELECTRIC
SUPPLIER’S
BASE
AMOUNT.—The term ‘retail electric supplier’s base
amount’ means the total amount of electric energy
sold by the retail electric supplier to electric customers
during the most recent calendar year for which infor-
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mation is available, excluding electric energy gen-
erated by—
‘‘(A) an eligible renewable energy resource;
‘‘(B) municipal solid waste; or
‘‘(C) a hydroelectric facility.
‘‘(m) SUNSET.—This section expires December 31,
2030.’’.
SEC. 265. RENEWABLE ENERGY ON FEDERAL LAND.
(a) COST-SHARE DEMONSTRATION PROGRAM.—With-
in 12 months after the date of enactment of this section,
the Secretaries of the Interior, Agriculture, and Energy
shall develop guidelines for a cost-share demonstration pro-
gram for the development of wind and solar energy facilities
on Federal land.
(b) DEFINITION OF FEDERAL LAND.—As used in this
section, the term ‘‘Federal land’’ means land owned by the
United States that is subject to the operation of the mineral
leasing laws; and is either—
(1) public land as defined in section 103(e) of
the Federal Land Policy and Management Act of
1976 (42 U.S.C. 1702(e)); or
(2) a unit of the National Forest System as that
term is used in section 11(a) of the Forest and Range-
land Renewable Resources Planning Act of 1974 (16
U.S.C. 1609(a)).
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(c) RIGHTS-OF-WAY.—The demonstration program
shall provide for the issuance of rights-of-way pursuant to
the provisions of title V of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1761 et seq.) by the
Secretary of the Interior with respect to Federal land under
the jurisdiction of the Department of the Interior, and by
the Secretary of Agriculture with respect to Federal lands
under the jurisdiction of the Department of Agriculture.
(d) AVAILABLE SITES.—For purposes of this dem-
onstration program, the issuance of rights-of-way shall be
limited to areas—
(1) of high energy potential for wind or solar de-
velopment;
(2) that have been identified by the wind or solar
energy industry, through a process of nomination, ap-
plication, or otherwise, as being of particular interest
to one or both industries;
(3) that are not located within roadless areas;
(4) where operation of wind or solar facilities
would be compatible with the scenic, recreational, en-
vironmental, cultural, or historic values of the Fed-
eral land, and would not require the construction of
new roads for the siting of lines or other transmission
facilities; and
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(5) where issuance of the right-of-way is con-
sistent with the land and resource management plans
of the relevant land management agencies.
(e) COST-SHARE PAYMENTS BY DOE.—The Secretary
of Energy, in cooperation with the Secretary of the Interior
with respect to Federal land under the jurisdiction of the
Department of the Interior, and the Secretary of Agri-
culture with respect to Federal land under the jurisdiction
of the Department of Agriculture, shall determine if the por-
tion of a project on Federal land is eligible for financial
assistance pursuant to this section. Only those projects that
are consistent with the requirements of this section and fur-
ther the purposes of this section shall be eligible. In the event
a project is selected for financial assistance, the Secretary
of Energy shall provide no more than 15 percent of the costs
of the project on the Federal land, and the remainder of
the costs shall be paid by non-Federal sources.
(f) REVISION OF LAND USE PLANS.—The Secretary of
the Interior shall consider development of wind and solar
energy, as appropriate, in revisions of land use plans under
section 202 of the Federal Land Policy and Management
Act of 1976 (42 U.S.C. 1712); and the Secretary of Agri-
culture shall consider development of wind and solar en-
ergy, as appropriate, in revisions of land and resource
management plans under section 5 of the Forest and Range-
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land Renewable Resources Planning Act of 1974 (16 U.S.C.
1604). Nothing in this subsection shall preclude the issuance
of a right-of-way for the development of a wind or solar
energy project prior to the revision of a land use plan by
the appropriate land management agency.
(g) REPORT TO CONGRESS.—Within 24 months after
the date of enactment of this section, the Secretary of the
Interior shall develop and report to Congress recommenda-
tions on any statutory or regulatory changes the Secretary
believes would assist in the development of renewable energy
on Federal land. The report shall include—
(1) a five-year plan developed by the Secretary
of the Interior, in cooperation with the Secretary of
Agriculture, for encouraging the development of wind
and solar energy on Federal land in an environ-
mentally sound manner; and
(2) an analysis of—
(A) whether the use of rights-of-ways is the
best means of authorizing use of Federal land for
the development of wind and solar energy, or
whether such resources could be better developed
through a leasing system, or other method;
(B) the desirability of grants, loans, tax
credits or other provisions to promote wind and
solar energy development on Federal land; and
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(C) any problems, including environmental
concerns, which the Secretary of the Interior or
the Secretary of Agriculture have encountered in
managing wind or solar energy projects on Fed-
eral land, or believe are likely to arise in rela-
tion to the development of wind or solar energy
on Federal land;
(3) a list, developed in consultation with the Sec-
retaries of Energy and Defense, of lands under the ju-
risdiction of the Departments of Energy and Defense
that would be suitable for development for wind or
solar energy, and recommended statutory and regu-
latory mechanisms for such development.
(h) NATIONAL ACADEMY OF SCIENCES STUDY.— With-
in 90 days after the enactment of this Act, the Secretary
of the Interior shall contract with the National Academy
of Sciences to study the potential for the development of
wind, solar, and ocean energy on the Outer Continental
Shelf; assess existing Federal authorities for the develop-
ment of such resources; and recommend statutory and regu-
latory mechanisms for such development. The results of the
study shall be transmitted to Congress within 24 months
after the enactment of this Act.
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Subtitle F—General Provisions
SEC. 271. CHANGE 3 CENTS TO 1.5 CENTS.
Not withstanding any other provision in this Act, ‘‘3
cents’’ shall be considered by law to be ‘‘1.5 cents’’ in any
place ‘‘3 cents’’ appears in title II of this Act.
SEC. 272. BONNEVILLE POWER ADMINISTRATION BONDS.
Section 13 of the Federal Columbia River Trans-
mission System Act (16 U.S.C. 838k) is amended—
(1) by striking the section heading and all that
follows through ‘‘(a) The Administrator’’ and insert-
ing the following:
‘‘SEC. 13. BONNEVILLE POWER ADMINISTRATION BONDS.
‘‘(a) BONDS.—
‘‘(1) IN GENERAL.—The Administrator’’; and
(2) by adding at the end the following:
‘‘(2) ADDITIONAL BORROWING AUTHORITY.—In
addition to the borrowing authority of the Adminis-
trator authorized under paragraph (1) or any other
provision of law, an additional $1,300,000,000 is
made available, to remain outstanding at any one
time—
‘‘(A) to provide funds to assist in financing
the construction, acquisition, and replacement of
the transmission system of the Bonneville Power
Administration; and
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‘‘(B) to implement the authorities of the Ad-
ministrator under the Pacific Northwest Electric
Power Planning and Conservation Act (16
U.S.C. 839 et seq.).’’.
TITLE III—HYDROELECTRIC
RELICENSING
SEC. 301. ALTERNATIVE CONDITIONS AND FISHWAYS.
(a) ALTERNATIVE MANDATORY CONDITIONS.—Section
4 of the Federal Power Act (16 U.S.C. 797) is amended
by adding at the end the following:
‘‘(h)(1) Whenever any person applies for a license for
any project works within any reservation of the United
States under subsection (e), and the Secretary of the depart-
ment under whose supervision such reservation falls (in this
subsection referred to as the ‘Secretary’) shall deem a condi-
tion to such license to be necessary under the first proviso
of such section, the license applicant may propose an alter-
native condition.
‘‘(2) Notwithstanding the first proviso of subsection
(e), the Secretary of the department under whose super-
vision the reservation falls shall accept the proposed alter-
native condition referred to in paragraph (1), and the Com-
mission shall include in the license such alternative condi-
tion, if the Secretary of the appropriate department deter-
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mines, based on substantial evidence provided by the license
applicant, that the alternative condition—
‘‘(A) provides for the adequate protection and
utilization of the reservation; and
‘‘(B) will either—
‘‘(i) cost less to implement, or
‘‘(ii) result in improved operation of the
project works for electricity production as com-
pared to the condition initially deemed necessary
by the Secretary.
‘‘(3) The Secretary shall submit into the public record
of the Commission proceeding with any condition under
subsection (e) or alternative condition it accepts under this
subsection a written statement explaining the basis for such
condition, and reason for not accepting any alternative con-
dition under this subsection, including the effects of the con-
dition accepted and alternatives not accepted on energy
supply, distribution, cost, and use, air quality, flood con-
trol, navigation, and drinking, irrigation, and recreation
water supply, based on such information as may be avail-
able to the Secretary, including information voluntarily
provided in a timely manner by the applicant and others.
‘‘(4) Nothing in this subsection shall prohibit other in-
terested parties from proposing alternative conditions.’’.
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(b) ALTERNATIVE FISHWAYS.—Section 18 of the Fed-
eral Power Act (16 U.S.C. 811) is amended by—
(1) inserting ‘‘(a)’’ before the first sentence; and
(2) adding at the end the following:
‘‘(b)(1) Whenever the Secretary of the Interior or the
Secretary of Commerce prescribes a fishway under this sec-
tion, the license applicant or the licensee may propose an
alternative to such prescription to construct, maintain, or
operate a fishway.
‘‘(2) Notwithstanding subsection (a), the Secretary of
the Interior or the Secretary of Commerce, as appropriate,
shall accept and prescribe, and the Commission shall re-
quire, the proposed alternative referred to in paragraph (1),
if the Secretary of the appropriate department determines,
based on substantial evidence provided by the licensee, that
the alternative—
‘‘(A) will be no less protective of the fish re-
sources than the fishway initially prescribed by the
Secretary; and
‘‘(B) will either—
‘‘(i) cost less to implement, or
‘‘(ii) result in improved operation of the
project works for electricity production as com-
pared to the fishway initially prescribed by the
Secretary.
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‘‘(3) The Secretary shall submit into the public record
of the Commission proceeding with any prescription under
subsection (a) or alternative prescription it accepts under
this subsection a written statement explaining the basis for
such prescription, and reason for not accepting any alter-
native prescription under this subsection, including the ef-
fects of the prescription accepted or alternative not accepted
on energy supply, distribution, cost, and use, air quality,
flood control, navigation, and drinking, irrigation, and
recreation water supply, based on such information as may
be available to the Secretary, including information volun-
tarily provided in a timely manner by the applicant and
others.
‘‘(4) Nothing in this subsection shall prohibit other in-
terested parties from proposing alternative prescriptions.’’.
(c) TIME OF FILING APPLICATION.—Section 15(c)(1)
of the Federal Power Act (16 U.S.C. 808(c)(1)) is amended
by striking the first sentence and inserting the following:
‘‘(1) Each application for a new license pursu-
ant 
to 
this 
section 
shall 
be 
filed 
with 
the
Commission—
‘‘(A) at least 24 months before the expira-
tion of the term of the existing license in the case
of licenses that expire prior to 2008; and
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‘‘(B) at least 36 months before the expira-
tion of the term of the existing license in the case
of licenses that expire in 2008 or any year there-
after.’’.
TITLE IV—INDIAN ENERGY
SEC. 401. COMPREHENSIVE INDIAN ENERGY PROGRAM.
Title XXVI of the Energy Policy Act of 1992 (25
U.S.C. 3501–3506) is amended by adding after section 2606
the following:
‘‘SEC. 2607. COMPREHENSIVE INDIAN ENERGY PROGRAM.
‘‘(a) DEFINITIONS.—For purposes of this section—
‘‘(1) the term ‘Director’ means the Director of the
Office of Indian Energy Policy and Programs estab-
lished by section 217 of the Department of Energy
Organization Act, and
‘‘(2) the term ‘Indian land’ means—
‘‘(A) any land within the limits of an In-
dian reservation, pueblo, or rancheria;
‘‘(B) any land not within the limits of an
Indian reservation, pueblo, or rancheria whose
title is held—
‘‘(i) in trust by the United States for
the benefit of an Indian tribe,
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‘‘(ii) by an Indian tribe subject to re-
striction by the United States against alien-
ation, or
‘‘(iii) by a dependent Indian commu-
nity; and
‘‘(C) land conveyed to an Alaska Native
Corporation under the Alaska Native Claims
Settlement Act.
‘‘(b) INDIAN ENERGY EDUCATION PLANNING AND MAN-
AGEMENT ASSISTANCE.—(1) The Director shall establish
programs within the Office of Indian Energy Policy and
Programs to assist Indian tribes in meeting their energy
education, research and development, planning, and man-
agement needs.
‘‘(2) The Director may make grants, on a competitive
basis, to an Indian tribe for—
‘‘(A) renewable energy, energy efficiency, and
conservation programs;
‘‘(B) studies and other activities supporting trib-
al acquisition of energy supplies, services, and facili-
ties;
‘‘(C) planning, constructing, developing, oper-
ating, maintaining, and improving tribal electrical
generation, transmission, and distribution facilities;
and
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‘‘(D) 
developing, 
constructing, 
and 
inter-
connecting electric power transmission facilities with
transmission facilities owned and operated by a Fed-
eral power marketing agency or an electric utility
that provides open access transmission service.
‘‘(3) The Director may develop, in consultation with
Indian tribes, a formula for making grants under this sec-
tion. The formula may take into account the following—
‘‘(A) the total number of acres of Indian land
owned by an Indian tribe;
‘‘(B) the total number of households on the In-
dian tribe’s Indian land;
‘‘(C) the total number of households on the In-
dian tribe’s Indian land that have no electricity serv-
ice or are under-served; and
‘‘(D) financial or other assets available to the In-
dian tribe from any source.
‘‘(4) In making a grant under paragraph (2), the Di-
rector shall give priority to an application received from
an Indian tribe that is not served or is served inadequately
by an electric utility, as that term is defined in section 3(4)
of the Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 2602(4)), or by a person, State agency, or any other
non-Federal entity that owns or operates a local distribu-
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tion facility used for the sale of electric energy to an electric
consumer.
‘‘(5) There are authorized to be appropriated to the
Department of Energy such sums as may be necessary to
carry out the purposes of this section.
‘‘(6) The Secretary is authorized to promulgate such
regulations as the Secretary determines to be necessary to
carry out the provisions of this subsection.
‘‘(c) LOAN GUARANTEE PROGRAM.—
‘‘(1) AUTHORITY.—The Secretary may guarantee
not more than 90 percent of the unpaid principal and
interest due on any loan made to any Indian tribe
for energy development, including the planning, devel-
opment, construction, and maintenance of electrical
generation plants, and for transmission and delivery
mechanisms for electricity produced on Indian land.
A loan guaranteed under this subsection shall be
made by—
‘‘(A) a financial institution subject to the
examination of the Secretary; or
‘‘(B) an Indian tribe, from funds of the In-
dian tribe, to another Indian tribe.
‘‘(2) 
AVAILABILITY
OF
APPROPRIATIONS.—
Amounts appropriated to cover the cost of loan guar-
antees shall be available without fiscal year limita-
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tion to the Secretary to fulfill obligations arising
under this subsection.
‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—(A)
There are authorized to be appropriated to the Sec-
retary such sums as may be necessary to cover the
cost of loan guarantees, as defined by section 502(5)
of the Federal Credit Reform Act of 1990 (2 U.S.C.
661a(5)).
‘‘(B) There are authorized to be appropriated to
the Secretary such sums as may be necessary to cover
the administrative expenses related to carrying out
the loan guarantee program established by this sub-
section.
‘‘(4) LIMITATION
ON
AMOUNT.—The aggregate
outstanding amount guaranteed by the Secretary of
Energy at any one time under this subsection shall
not exceed $2,000,000,000.
‘‘(5) REGULATIONS.—The Secretary is author-
ized to promulgate such regulations as the Secretary
determines to be necessary to carry out the provisions
of this subsection.
‘‘(d) INDIAN ENERGY PREFERENCE.—(1) An agency
or department of the United States Government may give,
in the purchase of electricity, oil, gas, coal, or other energy
product or by-product, preference in such purchase to an
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energy and resource production enterprise, partnership,
corporation, or other type of business organization majority
or wholly owned and controlled by a tribal government.
‘‘(2) In implementing this subsection, an agency or de-
partment shall pay no more than the prevailing market
price for the energy product or by-product and shall obtain
no less than existing market terms and conditions.
‘‘(e) EFFECT ON OTHER LAWS.—This section does
not—
‘‘(1) limit the discretion vested in an Adminis-
trator of a Federal power marketing agency to market
and allocate Federal power, or
‘‘(2) alter Federal laws under which a Federal
power marketing agency markets, allocates, or pur-
chases power.’’.
SEC. 402. OFFICE OF INDIAN ENERGY POLICY AND PRO-
GRAMS.
Title II of the Department of Energy Organization Act
is amended by adding at the end the following:
‘‘OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS
‘‘SEC. 217. (a) There is established within the Depart-
ment an Office of Indian Energy Policy and Programs.
This Office shall be headed by a Director, who shall be ap-
pointed by the Secretary and compensated at the rate equal
to that of level IV of the Executive Schedule under section
5315 of title 5, United States Code.
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‘‘(b) The Director shall provide, direct, foster, coordi-
nate, and implement energy planning, education, manage-
ment, conservation, and delivery programs of the Depart-
ment that—
‘‘(1) promote tribal energy efficiency and utiliza-
tion;
‘‘(2) modernize and develop, for the benefit of In-
dian tribes, tribal energy and economic infrastructure
related to natural resource development and elec-
trification;
‘‘(3) preserve and promote tribal sovereignty and
self determination related to energy matters and en-
ergy deregulation;
‘‘(4) lower or stabilize energy costs; and
‘‘(5) electrify tribal members’ homes and tribal
lands.
‘‘(c) The Director shall carry out the duties assigned
the Secretary or the Director under title XXVI of the En-
ergy Policy Act of 1992 (25 U.S.C. 3501 et seq.).’’.
SEC. 403. CONFORMING AMENDMENTS.
(a) AUTHORIZATION
OF APPROPRIATIONS.—Section
2603(c) of the Energy Policy Act of 1992 (25 U.S.C.
3503(c)) is amended to read as follows:
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‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as may be nec-
essary to carry out the purposes of this section.’’.
(b) TABLE OF CONTENTS.—The table of contents of the
Department of Energy Act is amended by inserting after
the item relating to section 216 the following new item:
‘‘Sec. 217. Office of Indian Energy Policy and Programs.’’.
(c) EXECUTIVE SCHEDULE.—Section 5315 of title 5,
United States Code, is amended by inserting ‘‘Director, Of-
fice of Indian Energy Policy and Programs, Department
of Energy.’’ after ‘‘Inspector General, Department of En-
ergy.’’.
SEC. 404. SITING ENERGY FACILITIES ON TRIBAL LANDS.
(a) DEFINITIONS.—For purposes of this section:
(1) INDIAN
TRIBE.—The term ‘‘Indian tribe’’
means any Indian tribe, band, nation, or other orga-
nized group or community, which is recognized as eli-
gible for the special programs and services provided
by the United States to Indians because of their sta-
tus as Indians, except that such term does not include
any Regional Corporation as defined in section 3(g)
of the Alaska Native Claims Settlement Act (43
U.S.C. 1602(g)).
(2) INTERESTED PARTY.—The term ‘‘interested
party’’ means a person whose interests could be ad-
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versely affected by the decision of an Indian tribe to
grant a lease or right-of-way pursuant to this section.
(3) PETITION.—The term ‘‘petition’’ means a
written request submitted to the Secretary for the re-
view of an action (or inaction) of the Indian tribe
that is claimed to be in violation of the approved trib-
al regulations.
(4) 
RESERVATION.—The 
term 
‘‘reservation’’
means—
(A) with respect to a reservation in a State
other than Oklahoma, all land that has been set
aside or that has been acknowledged as having
been set aside by the United States for the use
of an Indian tribe, the exterior boundaries of
which are more particularly defined in a final
tribal treaty, agreement, executive order, Federal
statute, secretarial order, or judicial determina-
tion;
(B) with respect to a reservation in the
State of Oklahoma, all land that is—
(i) within the jurisdictional area of an
Indian tribe, and
(ii) within the boundaries of the last
reservation of such tribe that was estab-
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lished by treaty, executive order, or secre-
tarial order.
(5) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of the Interior.
(6) TRIBAL
LANDS.—The term ‘tribal lands’
means any tribal trust lands, or other lands owned by
an Indian tribe that are within such tribe’s reserva-
tion.
(b) LEASES INVOLVING GENERATION, TRANSMISSION,
DISTRIBUTION OR ENERGY PROCESSING FACILITIES.—An
Indian tribe may grant a lease of tribal land for electric
generation, transmission, or distribution facilities, or facili-
ties to process or refine renewable or nonrenewable energy
resources developed on tribal lands, and such leases shall
not require the approval of the Secretary if the lease is exe-
cuted under tribal regulations approved by the Secretary
under this subsection and the term of the lease does not ex-
ceed 30 years.
(c) RIGHTS-OF-WAY
FOR
ELECTRIC
GENERATION,
TRANSMISSION, DISTRIBUTION OR ENERGY PROCESSING
FACILITIES.—An Indian tribe may grant a right-of-way
over tribal lands for a pipeline or an electric transmission
or distribution line without separate approval by the Sec-
retary, if—
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(1) the right-of-way is executed under and com-
plies with tribal regulations approved by the Sec-
retary and the term of the right-of-way does not ex-
ceed 30 years; and
(2) the pipeline or electric transmission or dis-
tribution line serves—
(A) an electric generation, transmission or
distribution facility located on tribal land, or
(B) a facility located on tribal land that
processes or refines renewable or nonrenewable
energy resources developed on tribal lands.
(d) RENEWALS.—Leases or rights-of-way entered into
under this subsection may be renewed at the discretion of
the Indian tribe in accordance with the requirements of this
section.
(e) TRIBAL REGULATION REQUIREMENTS.—(1) The
Secretary shall have the authority to approve or disapprove
tribal regulations required under this subsection. The Sec-
retary shall approve such tribal regulations if they are com-
prehensive in nature, including provisions that address—
(A) securing necessary information from the les-
see or right-of-way applicant;
(B) term of the conveyance;
(C) amendments and renewals;
(D) consideration for the lease or right-of-way;
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(E) technical or other relevant requirements;
(F) requirements for environmental review as set
forth in paragraph (3);
(G) requirements for complying with all applica-
ble environmental laws; and
(H) final approval authority.
(2) No lease or right-of-way shall be valid unless au-
thorized in compliance with the approved tribal regula-
tions.
(3) An Indian tribe, as a condition of securing Secre-
tarial approval as contemplated in paragraph (1), must es-
tablish an environmental review process that includes the
following—
(A) an identification and evaluation of all sig-
nificant environmental impacts of the proposed action
as compared to a no action alternative;
(B) identification of proposed mitigation;
(C) a process for ensuring that the public is in-
formed of and has an opportunity to comment on the
proposed action prior to tribal approval of the lease
or right-of-way; and
(D) sufficient administrative support and tech-
nical capability to carry out the environmental re-
view process.
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(4) The Secretary shall review and approve or dis-
approve the regulations of the Indian tribe within 180 days
of the submission of such regulations to the Secretary. Any
disapproval of such regulations by the Secretary shall be
accompanied by written documentation that sets forth the
basis for the disapproval. The 180-day period may be ex-
tended by the Secretary after consultation with the Indian
tribe.
(5) If the Indian tribe executes a lease or right-of-way
pursuant to tribal regulations required under this sub-
section, the Indian tribe shall provide the Secretary with—
(A) a copy of the lease or right-of-way document
and all amendments and renewals thereto; and
(B) in the case of regulations or a lease or right-
of-way that permits payment to be made directly to
the Indian tribe, documentation of the payments suf-
ficient to enable the Secretary to discharge the trust
responsibility of the United States as appropriate
under existing law.
(6) The United States shall not be liable for losses sus-
tained by any party to a lease executed pursuant to tribal
regulations under this subsection, including the Indian
tribe.
(7)(A) An interested party may, after exhaustion of
tribal remedies, submit, in a timely manner, a petition to
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the Secretary to review the compliance of the Indian tribe
with any tribal regulations approved under this subsection.
If upon such review, the Secretary determines that the regu-
lations were violated, the Secretary may take such action
as may be necessary to remedy the violation, including re-
scinding or holding the lease or right-of-way in abeyance
until the violation is cured. The Secretary may also rescind
the approval of the tribal regulations and reassume the re-
sponsibility for approval of leases or rights-of-way associ-
ated with the facilities addressed in this section.
(B) If the Secretary seeks to remedy a violation de-
scribed in subparagraph (A), the Secretary shall—
(i) make a written determination with respect to
the regulations that have been violated;
(ii) provide the Indian tribe with a written no-
tice of the alleged violation together with such written
determination; and
(iii) prior to the exercise of any remedy or the
rescission of the approval of the regulations involved
and reassumption of the lease or right-of-way ap-
proval responsibility, provide the Indian tribe with a
hearing and a reasonable opportunity to cure the al-
leged violation.
(C) The tribe shall retain all rights to appeal as pro-
vided by regulations promulgated by the Secretary.
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(f) AGREEMENTS.—(1) Agreements between an Indian
tribe and a business entity that are directly associated with
the development of electric generation, transmission or dis-
tribution facilities, or facilities to process or refine renew-
able or nonrenewable energy resources developed on tribal
lands, shall not separately require the approval of the Sec-
retary pursuant to section 18 of title 25, United States
Code, so long as the activity that is the subject of the agree-
ment has been the subject of an environmental review proc-
ess pursuant to subsection (e) of this section.
(2) The United States shall not be liable for any losses
or damages sustained by any party, including the Indian
tribe, that are associated with an agreement entered into
under this subsection.
(g) DISCLAIMER.—Nothing in this section is intended
to modify or otherwise affect the applicability of any provi-
sion of the Indian Mineral Leasing Act of 1938 (25 U.S.C.
396a–396g); Indian Mineral Development Act of 1982 (25
U.S.C. 2101–2108); Surface Mining Control and Reclama-
tion Act of 1977 (30 U.S.C. 1201–1328); any amendments
thereto; or any other laws not specifically addressed in this
section.
SEC. 405. INDIAN MINERAL DEVELOPMENT ACT REVIEW.
(a) IN GENERAL.—The Secretary of the Interior shall
conduct a review of the activities that have been conducted
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by the governments of Indian tribes under the authority of
the Indian Mineral Development Act of 1982 (25 U.S.C.
2101 et seq.).
(b) REPORT.—Not later than 1 year after the date of
the enactment of this Act, the Secretary shall transmit to
the Committee on Resources of the House of Representatives
and the Committee on Indian Affairs and the Committee
on Energy and Natural Resources of the Senate a report
containing—
(1) the results of the review;
(2) recommendations designed to help ensure
that Indian tribes have the opportunity to develop
their nonrenewable energy resources; and
(3) an analysis of the barriers to the development
of energy resources on Indian land, including Federal
policies and regulations, and make recommendations
regarding the removal of those barriers.
(c) CONSULTATION.—The Secretary shall consult with
Indian tribes on a government-to-government basis in devel-
oping the report and recommendations as provided in this
subsection.
SEC. 406. RENEWABLE ENERGY STUDY.
(a) IN GENERAL.—Not later than 2 years after the
date of the enactment of this Act, and once every 2 years
thereafter, the Secretary of Energy shall transmit to the
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Committees on Energy and Commerce and Resources of the
House of Representatives and the Committees on Energy
and Natural Resources and Indian Affairs of the Senate
a report on energy consumption and renewable energy de-
velopment potential on Indian land. The report shall iden-
tify barriers to the development of renewable energy by In-
dian tribes, including Federal policies and regulations, and
make recommendations regarding the removal of such bar-
riers.
(b) CONSULTATION.—The Secretary shall consult with
Indian tribes on a government-to-government basis in devel-
oping the report and recommendations as provided in this
section.
SEC. 407. FEDERAL POWER MARKETING ADMINISTRATIONS.
Title XXVI of the Energy Policy Act of 1992 (25
U.S.C. 3501) (as amended by section 201) is amended by
adding at the end the following:
‘‘SEC. 2608. FEDERAL POWER MARKETING ADMINISTRA-
TIONS.
‘‘(a) DEFINITION OF ADMINISTRATOR.—In this sec-
tion, the term ‘Administrator’ means—
‘‘(1) the Administrator of the Bonneville Power
Administration; or
‘‘(2) the Administrator of the Western Area
Power Administration.
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‘‘(b) ASSISTANCE FOR TRANSMISSION STUDIES.—(1)
Each Administrator may provide technical assistance to In-
dian tribes seeking to use the high-voltage transmission sys-
tem for delivery of electric power. The costs of such technical
assistance shall be funded—
‘‘(A) by the Administrator using non-reimburs-
able funds appropriated for this purpose, or
‘‘(B) by the Indian tribe.
‘‘(2) PRIORITY FOR ASSISTANCE FOR TRANSMISSION
STUDIES.—In providing discretionary assistance to Indian
tribes under paragraph (1), each Administrator shall give
priority in funding to Indian tribes that have limited fi-
nancial capability to conduct such studies.
‘‘(c) POWER ALLOCATION STUDY.—(1) Not later than
2 years after the date of enactment of this Act, the Secretary
of Energy shall transmit to the Committees on Energy and
Commerce and Resources of the House of Representatives
and the Committees on Energy and Natural Resources and
Indian Affairs of the Senate a report on Indian tribes’ utili-
zation of Federal power allocations of the Western Area
Power Administration, or power sold by the Southwestern
Power Administration, and the Bonneville Power Adminis-
tration to or for the benefit of Indian tribes in their service
areas. The report shall identify—
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‘‘(A) the amount of power allocated to tribes by
the Western Area Power Administration, and how the
benefit of that power is utilized by the tribes;
‘‘(B) the amount of power sold to tribes by other
Power Marketing Administrations; and
‘‘(C) existing barriers that impede tribal access
to and utilization of Federal power, and opportuni-
ties to remove such barriers and improve the ability
of the Power Marketing Administration to facilitate
the utilization of Federal power by Indian tribes.
‘‘(2) The Power Marketing Administrations shall con-
sult with Indian tribes on a government-to-government
basis in developing the report provided in this section.
‘‘(d) AUTHORIZATION
FOR APPROPRIATION.—There
are authorized to be appropriated to the Secretary of En-
ergy such sums as may be necessary to carry out the pur-
poses of this section.’’.
SEC. 408. FEASIBILITY STUDY OF COMBINED WIND AND HY-
DROPOWER DEMONSTRATION PROJECT.
(a) STUDY.—The Secretary of Energy, in coordination
with the Secretary of the Army and the Secretary of the
Interior, shall conduct a study of the cost and feasibility
of developing a demonstration project that would use wind
energy generated by Indian tribes and hydropower gen-
erated by the Army Corps of Engineers on the Missouri
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River to supply firming power to the Western Area Power
Administration.
(b) SCOPE OF STUDY.—The study shall—
(1) determine the feasibility of the blending of
wind energy and hydropower generated from the Mis-
souri River dams operated by the Army Corps of En-
gineers;
(2) review historical purchase requirements and
projected purchase requirements for firming and the
patterns of availability and use of firming energy;
(3) assess the wind energy resource potential on
tribal lands and projected cost savings through a
blend of wind and hydropower over a thirty-year pe-
riod;
(4) include a preliminary interconnection study
and a determination of resource adequacy of the
Upper Great Plains Region of the Western Area
Power Administration;
(5) determine seasonal capacity needs and asso-
ciated transmission upgrades for integration of tribal
wind generation; and
(6) include an independent tribal engineer as a
study team member.
(c) REPORT.—The Secretary of Energy and Secretary
of the Army shall submit a report to Congress not later than
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1 year after the date of enactment of this title. The Secre-
taries shall include in the report—
(1) an analysis of the potential energy cost sav-
ings to the customers of the Western Area Power Ad-
ministration through the blend of wind and hydro-
power;
(2) an evaluation of whether a combined wind
and hydropower system can reduce reservoir fluctua-
tion, enhance efficient and reliable energy production
and provide Missouri River management flexibility;
(3) recommendations for a demonstration project
which the Western Area Power Administration could
carry out in partnership with an Indian tribal gov-
ernment or tribal government energy consortium to
demonstrate the feasibility and potential of using
wind energy produced on Indian lands to supply
firming energy to the Western Area Power Adminis-
tration or other Federal power marketing agency; and
(4) an identification of the economic and envi-
ronmental benefits to be realized through such a Fed-
eral-tribal partnership and identification of how such
a partnership could contribute to the energy security
of the United States.
(d) CONSULTATION.—The Secretary shall consult with
Indian tribes on a government-to-government basis in devel-
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oping the report and recommendations provided in this sec-
tion.
(e) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated $500,000 to carry out this
section, which shall remain available until expended. All
costs incurred by the Western Area Power Administration
associated with performing the tasks required under this
section shall be nonreimbursable.
TITLE V—NUCLEAR POWER
Subtitle A—Price-Anderson Act
Reauthorization
SEC. 501. SHORT TITLE.
This subtitle may be cited as the ‘‘Price-Anderson
Amendments Act of 2002’’.
SEC. 502. EXTENSION OF INDEMNIFICATION AUTHORITY.
(a) INDEMNIFICATION
OF
NUCLEAR
REGULATORY
COMMISSION LICENSEES.—Section 170c. of the Atomic En-
ergy Act of 1954 (42 U.S.C. 2210(c)) is amended—
(1) in the subsection heading, by striking ‘‘LI-
CENSES’’ and inserting ‘‘LICENSEES’’; and
(2) by striking ‘‘August 1, 2002’’ each place it
appears and inserting ‘‘August 1, 2012’’.
(b) INDEMNIFICATION OF DEPARTMENT OF ENERGY
CONTRACTORS.—Section 170d.(1)(A) of the Atomic Energy
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Act of 1954 (42 U.S.C. 2210(d)(1)(A)) is amended by strik-
ing ‘‘, until August 1, 2002,’’.
(c) INDEMNIFICATION OF NONPROFIT EDUCATIONAL
INSTITUTIONS.—Section 170k. of the Atomic Energy Act of
1954 (42 U.S.C. 2210(k)) is amended by striking ‘‘August
1, 2002’’ each place it appears and inserting ‘‘August 1,
2012’’.
SEC. 503. DEPARTMENT OF ENERGY LIABILITY LIMIT.
(a) INDEMNIFICATION OF DEPARTMENT OF ENERGY
CONTRACTORS.—Section 170d. of the Atomic Energy Act
of 1954 (42 U.S.C. 2210(d)) is amended by striking para-
graph (2) and inserting the following:
‘‘(2) In agreements 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 de-
termine to be appropriate to cover public liabil-
ity arising out of or in connection with the con-
tractual activity; and
‘‘(B) shall indemnify the persons indem-
nified against such liability above the amount of
the financial protection required, in the amount
of $10,000,000,000 (subject to adjustment for in-
flation under subsection t.), in the aggregate, for
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all persons indemnified in connection with such
contract and for each nuclear incident, including
such legal costs of the contractor as are approved
by the Secretary.’’.
(b) CONTRACT AMENDMENTS.—Section 170d. 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 section shall be deemed to be amended, on
the date of the enactment of the Price-Anderson
Amendments Act of 2002, to reflect the amount of in-
demnity for public liability and any applicable fi-
nancial protection required of the contractor under
this subsection.’’.
(c) LIABILITY LIMIT.—Section 170e.(1)(B) of the
Atomic Energy Act of 1954 (42 U.S.C. 2210(e)(1)(B)) is
amended—
(1) by striking ‘‘the maximum amount of finan-
cial protection required under subsection b. or’’; and
(2) by striking ‘‘paragraph (3) of subsection d.,
whichever amount is more’’ and inserting ‘‘paragraph
(2) of subsection d.’’.
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SEC. 504. INCIDENTS OUTSIDE THE UNITED STATES.
(a) AMOUNT OF INDEMNIFICATION.—Section 170d.(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 170e.(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. 505. REPORTS.
Section 170p. of the Atomic Energy Act of 1954 (42
U.S.C. 2210(p)) is amended by striking ‘‘August 1, 1998’’
and inserting ‘‘August 1, 2008’’.
SEC. 506. INFLATION ADJUSTMENT.
Section 170t. of the Atomic Energy Act of 1954 (42
U.S.C. 2210(t)) is amended—
(1) by redesignating paragraph (2) as para-
graph (3); and
(2) by adding after paragraph (1) the following:
‘‘(2) The Secretary shall adjust the amount of in-
demnification provided under an agreement of indem-
nification under subsection d. not less than once dur-
ing each 5-year period following July 1, 2002, in ac-
cordance with the aggregate percentage change in the
Consumer Price Index since—
‘‘(A) that date, in the case of the first ad-
justment under this paragraph; or
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‘‘(B) the previous adjustment under this
paragraph.’’.
SEC. 507. CIVIL PENALTIES.
(a) REPEAL
OF AUTOMATIC REMISSION.—Section
234Ab.(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 Energy
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 sup-
plier, the total amount of civil penalties assessed
under subsection a. may not exceed the total amount
of fees paid within any one-year period (as deter-
mined 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 contractor, subcontractor, or supplier inures, or
may lawfully inure, to the benefit of any natural per-
son or for-profit artificial person.’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall not apply to any violation of the Atomic En-
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ergy Act of 1954 occurring under a contract entered into
before the date of enactment of this section.
SEC. 508. TREATMENT OF MODULAR REACTORS.
Section 170b. 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
Commission shall consider a combination of facilities
described in subparagraph (B) to be a single facility
having a rated capacity of 100,000 electrical kilo-
watts or more.
‘‘(B) A combination of facilities referred to in
subparagraph (A) is two or more facilities located at
a single site, each of which has a rated capacity of
100,000 electrical kilowatts or more but not more
than 300,000 electrical kilowatts, with a combined
rated capacity of not more than 1,300,000 electrical
kilowatts.’’.
SEC. 509. EFFECTIVE DATE.
The amendments made by sections 503(a) and 504 do
not apply to any nuclear incident that occurs before the
date of the enactment of this subtitle.
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Subtitle B—Miscellaneous
Provisions
SEC. 511. URANIUM SALES.
(a) INVENTORY SALES.—Section 3112(d) of the USEC
Privatization Act (42 U.S.C. 2297h–10(d)) is amended to
read as follows:
‘‘(d) INVENTORY SALES.—(1) In addition to the trans-
fers authorized under subsections (b), (c), and (e), the Sec-
retary may, from time to time, sell or transfer uranium
(including natural uranium concentrates, natural uranium
hexafluoride, enriched uranium, and depleted uranium)
from the Department of Energy’s stockpile.
‘‘(2) Except as provided in subsections (b), (c), and
(e), the Secretary may not deliver uranium in any form
for consumption by end users in any year in excess of the
following amounts:
‘‘Annual Maximum Deliveries to End Users
(Million lbs. U3O8
‘‘Year:
equivalent)
2003 through 2009 .....................................................................
2010 ............................................................................................
2011 ............................................................................................
2012 ............................................................................................
2013 and each year thereafter ..................................................
10.
‘‘(3) Except as provided in subsections (b), (c), and
(e), no sale or transfer of uranium in any form shall be
made unless—
‘‘(A) the President determines that the material
is not necessary for national security needs;
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‘‘(B) the Secretary determines, based on the writ-
ten views of the Secretary of State and the Assistant
to the President for National Security Affairs, that
the sale or transfer will not adversely affect the na-
tional security interests of the United States;
‘‘(C) the Secretary determines that the sale of the
material will not have an adverse material impact on
the domestic uranium mining, conversion, or enrich-
ment industry, taking into account the sales of ura-
nium under the Russian HEU Agreement and the
Suspension Agreement; and
‘‘(D) the price paid to the Secretary will not be
less than the fair market value of the material.’’.
(b) EXEMPT TRANSFERS AND SALES.—Section 3112(e)
of the USEC Privatization Act (42 U.S.C. 2297h–10(e)) is
amended to read as follows:
‘‘(e) EXEMPT
SALES
OR
TRANSFERS.—Notwith-
standing subsection (d)(2), the Secretary may transfer or
sell uranium—
‘‘(1) to the Tennessee Valley Authority for use
pursuant to the Department of Energy’s highly en-
riched uranium or tritium program, to the extent
provided by law;
‘‘(2) to research and test reactors under the Uni-
versity Reactor Fuel Assistance and Support Pro-
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gram or the Reduced Enrichment for Research and
Test Reactors Program;
‘‘(3) to USEC Inc. to replace contaminated ura-
nium received from the Department of Energy when
the United States Enrichment Corporation was
privatized;
‘‘(4) to any person for emergency purposes in the
event of a disruption in supply to end users in the
United States; and
‘‘(5) to any person for national security pur-
poses, as determined by the Secretary.’’.
SEC. 512. REAUTHORIZATION OF THORIUM REIMBURSE-
MENT.
(a) REIMBURSEMENT OF THORIUM LICENSEES.— Sec-
tion 1001(b)(2)(C) of the Energy Policy Act of 1992 (42
U.S.C. 2296a) is amended—
(1) by striking ‘‘$140,000,000’’ and inserting
‘‘$365,000,000’’; and
(2) by adding at the end the following: ‘‘Such
payments shall not exceed the following amounts:
‘‘(i) $90,000,000 in fiscal year 2002.
‘‘(ii) $55,000,000 in fiscal year 2003.
‘‘(iii) $20,000,000 in fiscal year 2004.
‘‘(iv) $20,000,000 in fiscal year 2005.
‘‘(v) $20,000,000 in fiscal year 2006.
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‘‘(vi) $20,000,000 in fiscal year 2007.
Any amounts authorized to be paid in a fiscal
year under this subparagraph that are not paid
in that fiscal year may be paid in subsequent
fiscal years.’’.
(b) AUTHORIZATION
OF APPROPRIATIONS.—Section
1003(a) of the Energy Policy Act of 1992 (42 U.S.C. 2296a–
2) is amended by striking ‘‘$490,000,000’’ and inserting
‘‘$715,000,000’’.
(c) 
DECONTAMINATION
AND
DECOMMISSIONING
FUND.—Section 1802(a) of the Atomic Energy Act of 1954
(42 U.S.C. 2297g–1(a)) is amended—
(1) by striking ‘‘$488,333,333’’ and inserting
‘‘$518,233,333’’; and
(2) by inserting after ‘‘inflation’’ the following:
‘‘beginning on the date of enactment of the Energy
Policy Act of 1992’’.
SEC. 513. FAST FLUX TEST FACILITY.
The Secretary of Energy shall not reactivate the Fast
Flux Test Facility to conduct—
(1) any atomic energy defense activity,
(2) any space-related mission, or
(3) any program for the production or utiliza-
tion of nuclear material if the Secretary has deter-
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mined, in a record of decision, that the program can
be carried out at existing operating facilities.
SEC. 514. NUCLEAR POWER 2010.
(a) DEFINITIONS.—In this section:
(1) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Energy.
(2) OFFICE.—The term ‘‘Office’’ means the Office
of Nuclear Energy Science and Technology of the De-
partment of Energy.
(3) DIRECTOR.—The term ‘‘Director’’ means the
Director of the Office of Nuclear Energy Science and
Technology of the Department of Energy.
(4) PROGRAM.—The term ‘‘Program’’ means the
Nuclear Power 2010 Program.
(b) ESTABLISHMENT.—The Secretary shall carry out
a program, to be managed by the Director.
(c) PURPOSE.—The program shall aggressively pursue
those activities that will result in regulatory approvals and
design completion in a phased approach, with joint govern-
ment/industry cost sharing, which would allow for the con-
struction and startup of new nuclear plants in the United
States by 2010.
(d) ACTIVITIES.—In carrying out the program, the Di-
rector shall—
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(1) issue a solicitation to industry seeking pro-
posals from joint venture project teams comprised of
reactor vendors and power generation companies to
participate in the Nuclear Power 2010 program;
(2) seek innovative business arrangements, such
as consortia among designers, constructors, nuclear
steam supply systems and major equipment suppliers,
and plant owner/operators, with strong and common
incentives to build and operate new plants in the
United States;
(3) conduct the Nuclear Power 2010 program
consistent with the findings of ‘‘A Roadmap to De-
ploy New Nuclear Power Plants in the United States
by 2010’’ issued by the Near-Term Deployment Work-
ing Group of the Nuclear Energy Research Advisory
Committee of the Department of Energy;
(4) rely upon the expertise and capabilities of
the Department of Energy national laboratories and
sites in the areas of advanced nuclear fuel cycles and
fuels testing, giving consideration to existing lead lab-
oratory designations and the unique capabilities and
facilities available at each national laboratory and
site;
(5) pursue deployment of both water-cooled and
gas-cooled reactor designs on a dual track basis that
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will provide maximum potential for the success of
both;
(6) include participation of international col-
laborators in research and design efforts where bene-
ficial; and
(7) seek to accomplish the essential regulatory
and technical work, both generic and design-specific,
to make possible new nuclear plants within this dec-
ade.
(e) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary to carry out
the purposes of this section such sums as are necessary for
fiscal year 2003 and for each fiscal year thereafter.
SEC. 515. OFFICE OF SPENT NUCLEAR FUEL RESEARCH.
(a) FINDINGS.—Congress finds that—
(1) before the Federal Government takes any ir-
reversible action relating to the disposal of spent nu-
clear fuel, Congress must determine whether the spent
fuel in the repository should be treated as waste sub-
ject to permanent burial or should be considered an
energy resource that is needed to meet future energy
requirements; and
(2) national policy on spent nuclear fuel may
evolve with time as improved technologies for spent
fuel are developed or as national energy needs evolve.
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(b) DEFINITIONS.—In this section:
(1) ASSOCIATE DIRECTOR.—The term ‘‘Associate
Director’’ means the Associate Director of the Office.
(2) OFFICE.—The term ‘‘Office’’ means the Office
of Spent Nuclear Fuel Research within the Office of
Nuclear Energy Science and Technology of the De-
partment of Energy.
(c) ESTABLISHMENT.—There is established an Office
of Spent Nuclear Fuel Research within the Office of Nuclear
Energy Science and Technology of the Department of En-
ergy.
(d) HEAD OF OFFICE.—The Office shall be headed by
the Associate Director, who shall be a member of the Senior
Executive Service appointed by the Director of the Office
of Nuclear Energy Science and Technology, and com-
pensated at a rate determined by applicable law.
(e) DUTIES OF THE ASSOCIATE DIRECTOR.—
(1) IN GENERAL.—The Associate Director shall
be responsible for carrying out an integrated research,
development, and demonstration program on tech-
nologies for treatment, recycling, and disposal of
high-level nuclear radioactive waste and spent nuclear
fuel, subject to the general supervision of the Sec-
retary.
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(2) PARTICIPATION.—The Associate Director
shall coordinate the participation of national labora-
tories, universities, the commercial nuclear industry,
and other organizations in the investigation of tech-
nologies for the treatment, recycling, and disposal of
spent nuclear fuel and high-level radioactive waste.
(3) ACTIVITIES.—The Associate Director shall—
(A) develop a research plan to provide rec-
ommendations by 2015;
(B) identify promising technologies for the
treatment, recycling, and disposal of spent nu-
clear fuel and high-level radioactive waste;
(C) conduct research and development ac-
tivities for promising technologies;
(D) ensure that all activities include as key
objectives minimization of proliferation concerns
and risk to the health of the general public or
site workers, as well as development of cost-effec-
tive technologies;
(E) require research on both reactor- and
accelerator-based transmutation systems;
(F) require research on advanced processing
and separations;
(G) include participation of international
collaborators in research efforts, and provide
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funding to a collaborator that brings unique ca-
pabilities not available in the United States if
the country in which the collaborator is located
is unable to provide for their support; and
(H) ensure that research efforts are coordi-
nated with research on advanced fuel cycles and
reactors conducted by the Office of Nuclear En-
ergy Science and Technology.
(f) GRANT
AND CONTRACT AUTHORITY.—The Sec-
retary may make grants, or enter into contracts, for the
purposes of the research projects and activities described in
this section.
(g) REPORT.—The Associate Director shall annually
submit to Congress a report on the activities and expendi-
tures of the Office that describes the progress being made
in achieving the objectives of this section.
SEC. 516. DECOMMISSIONING PILOT PROGRAM.
(a) PILOT PROGRAM.—The Secretary of Energy shall
establish a decommissioning pilot program to decommission
and decontaminate the sodium-cooled fast breeder experi-
mental test-site reactor located in northwest Arkansas in
accordance with the decommissioning activities contained
in the August 31, 1998, Department of Energy report on
the reactor.
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(b) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$16,000,000.
Subtitle C—Growth of Nuclear
Energy
SEC. 521. COMBINED LICENSE PERIODS.
Section 103c. of the Atomic Energy Act of 1954 (42
U.S.C. 2133(c)) is amended—
(1) by striking ‘‘c. Each such’’ and inserting the
following:
‘‘c. LICENSE PERIOD.—
‘‘(1) IN GENERAL.—Each such’’; and
(2) by adding at the end the following:
‘‘(2) COMBINED
LICENSES.—In the case of a
combined construction and operating license issued
under section 185(b), the duration of the operating
phase of the license period shall not be less than the
duration of the operating license if application had
been made for separate construction and operating li-
censes.’’.
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Subtitle D—NRC Regulatory
Reform
SEC. 531. ANTITRUST REVIEW.
(a) IN GENERAL.—Section 105 of the Atomic Energy
Act of 1954 (42 U.S.C. 2135) is amended by adding at the
end the following:
‘‘d. ANTITRUST LAWS.—
‘‘(1) NOTIFICATION.—Except as provided in
paragraph (4), when the Commission proposes to
issue a license under section 103 or 104b., the Com-
mission shall notify the Attorney General of the pro-
posed license and the proposed terms and conditions
of the license.
‘‘(2) ACTION
BY
THE
ATTORNEY
GENERAL.—
Within a reasonable time (but not more than 90
days) after receiving notification under paragraph
(1), the Attorney General shall submit to the Commis-
sion and publish in the Federal Register a determina-
tion whether, insofar as the Attorney General is able
to determine, the proposed license would tend to cre-
ate or maintain a situation inconsistent with the
antitrust laws.
‘‘(3) INFORMATION.—On the request of the Attor-
ney General, the Commission shall furnish or cause to
be furnished such information as the Attorney Gen-
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eral determines to be appropriate or necessary to en-
able the Attorney General to make the determination
under paragraph (2).
‘‘(4) APPLICABILITY.—This subsection shall not
apply to such classes or type of licenses as the Com-
mission, with the approval of the Attorney General,
determines would not significantly affect the activities
of a licensee under the antitrust laws.’’.
(b) CONFORMING AMENDMENT.—Section 105c. of the
Atomic Energy Act of 1954 (42 U.S.C. 2135(c)) is amended
by adding at the end the following:
‘‘(9) APPLICABILITY.—This subsection does not
apply to an application for a license to construct or
operate a utilization facility under section 103 or
104b. that is filed on or after the date of enactment
of subsection d.’’.
SEC. 532. DECOMMISSIONING.
(a) AUTHORITY OVER FORMER LICENSEES FOR DE-
COMMISSIONING FUNDING.—Section 161i. 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
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any production or utilization facility licensed under
section 103 or 104b., including standards and restric-
tions governing the control, maintenance, use, and
disbursement by any former licensee under this Act
that has control over any fund for the decommis-
sioning of the facility’’.
(b) TREATMENT OF NUCLEAR REACTOR FINANCIAL
OBLIGATIONS.—Section 523 of title 11, United States Code,
is amended by adding at the end the following:
‘‘(f) TREATMENT OF NUCLEAR REACTOR FINANCIAL
OBLIGATIONS.—Notwithstanding any other provision of
this title—
‘‘(1) any funds or other assets held by a licensee
or former licensee of the Nuclear Regulatory Commis-
sion, or by any other person, to satisfy the responsi-
bility of the licensee, former licensee, or any other per-
son to comply with a regulation or order of the Nu-
clear Regulatory Commission governing the decon-
tamination and decommissioning of a nuclear power
reactor licensed under section 103 or 104b. of the
Atomic Energy Act of 1954 (42 U.S.C. 2133, 2134(b))
shall not be used to satisfy the claim of any creditor
in any proceeding under this title, other than a claim
resulting from an activity undertaken to satisfy that
responsibility, until the decontamination and decom-
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missioning of the nuclear power reactor is completed
to the satisfaction of the Nuclear Regulatory Commis-
sion;
‘‘(2) obligations of licensees, former licensees, or
any other person to use funds or other assets to satisfy
a responsibility described in paragraph (1) may not
be rejected, avoided, or discharged in any proceeding
under this title or in any liquidation, reorganization,
receivership, or other insolvency proceeding under
Federal or State law; and
‘‘(3) private insurance premiums and standard
deferred premiums held and maintained in accord-
ance with section 170b. of the Atomic Energy Act of
1954 (42 U.S.C. 2210(b)) shall not be used to satisfy
the claim of any creditor in any proceeding under
this title, until the indemnification agreement exe-
cuted in accordance with section 170c. of that Act (42
U.S.C. 2210(c)) is terminated.’’.
Subtitle E—NRC Personnel Crisis
SEC. 541. ELIMINATION OF PENSION OFFSET.
Section 161 of the Atomic Energy Act of 1954 (42
U.S.C. 2201) is amended by adding at the end the following:
‘‘y. exempt from the application of sections 8344 and
8468 of title 5, United States Code, an annuitant who was
formerly an employee of the Commission who is hired by
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the Commission as a consultant, if the Commission finds
that the annuitant has a skill that is critical to the perform-
ance of the duties of the Commission.’’.
SEC. 542. NRC TRAINING PROGRAM.
(a) IN GENERAL.—In order to maintain the human
resource investment and infrastructure of the United States
in the nuclear sciences, health physics, and engineering
fields, in accordance with the statutory authorities of the
Commission relating to the civilian nuclear energy pro-
gram, the Nuclear Regulatory Commission shall carry out
a training and fellowship program to address shortages of
individuals with critical safety skills.
(b) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There are authorized to be ap-
propriated to carry out this section $1,000,000 for
each of fiscal years 2003 through 2006.
(2) AVAILABILITY.—Funds made available under
paragraph (1) shall remain available until expended.
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DIVISION B—DOMESTIC OIL AND
GAS 
PRODUCTION 
AND
TRANSPORTATION
TITLE VI—OIL AND GAS
PRODUCTION
SEC. 601. PERMANENT AUTHORITY TO OPERATE THE STRA-
TEGIC PETROLEUM RESERVE.
(a) AMENDMENT TO TITLE I OF THE ENERGY POLICY
AND CONSERVATION ACT.—Title I of the Energy Policy and
Conservation Act (42 U.S.C. 6211 et seq.) is amended—
(1) by striking section 166 (42 U.S.C. 6246) and
inserting—
‘‘SEC. 166. There are authorized to be appropriated
to the Secretary such sums as may be necessary to carry
out this part, to remain available until expended.’’; and
(2) by striking part E (42 U.S.C. 6251; relating
to the expiration of title I of the Act) and its heading.
(b) AMENDMENT TO TITLE II OF THE ENERGY POLICY
AND CONSERVATION ACT.—Title II of the Energy Policy
and Conservation Act (42 U.S.C. 6271 et seq.) is
amended—
(1) by striking section 256(h) (42 U.S.C.
6276(h)) and inserting—
‘‘(h) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Secretary such
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sums as may be necessary to carry out this part, to remain
available until expended.’’;
(2) by striking section 273(e) (42 U.S.C. 6283(e);
relating to the expiration of summer fill and fuel
budgeting programs); and
(3) by striking part D (42 U.S.C. 6285; relating
to the expiration of title II of the Act) and its head-
ing.
(c) TECHNICAL AMENDMENTS.—The table of contents
for the Energy Policy and Conservation Act is amended by
striking the items relating to part D of title I and part
D of title II.
SEC. 602. FEDERAL ONSHORE LEASING PROGRAMS FOR OIL
AND GAS.
(a) TIMELY ACTION ON LEASES AND PERMITS.—To
ensure timely action on oil and gas leases and applications
for permits to drill on lands otherwise available for leasing,
the Secretary of the Interior shall—
(1) ensure expeditious compliance with the re-
quirements of section 102(2)(C) of the National Envi-
ronmental Policy Act of 1969 (42 U.S.C. 4332(2)(C));
(2) improve consultation and coordination with
the States; and
(3) improve the collection, storage, and retrieval
of information related to such leasing activities.
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(b) IMPROVED ENFORCEMENT.—The Secretary shall
improve inspection and enforcement of oil and gas activi-
ties, including enforcement of terms and conditions in per-
mits to drill.
(c) AUTHORIZATION OF APPROPRIATIONS.—For each
of the fiscal years 2003 through 2006, in addition to
amounts otherwise authorized to be appropriated for the
purpose of carrying out section 17 of the Mineral Leasing
Act (30 U.S.C. 226), there are authorized to be appro-
priated to the Secretary of the Interior—
(1) $40,000,000 for the purpose of carrying out
paragraphs (1) through (3) of subsection (a); and
(2) $20,000,000 for the purpose of carrying out
subsection (b).
SEC. 603. OIL AND GAS LEASE ACREAGE LIMITATIONS.
Section 27(d)(1) of the Mineral Leasing Act (30 U.S.C.
184(d)(1)) is amended by inserting after ‘‘acreage held in
special tar sand areas’’ the following: ‘‘as well as acreage
under any lease any portion of which has been committed
to a federally approved unit or cooperative plan or
communitization agreement, or for which royalty, includ-
ing compensatory royalty or royalty in kind, was paid in
the preceding calendar year,’’.
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SEC. 604. ORPHANED AND ABANDONED WELLS ON FEDERAL
LAND.
(a) ESTABLISHMENT.—(1) The Secretary of the Inte-
rior, in cooperation with the Secretary of Agriculture, shall
establish a program to ensure within 3 years after the date
of enactment of this Act, remediation, reclamation, and clo-
sure of orphaned oil and gas wells located on lands admin-
istered by the land management agencies within the De-
partment of the Interior and the United States Forest Serv-
ice that are—
(A) abandoned;
(B) orphaned; or
(C) idled for more than 5 years and having no
beneficial use.
(2) The program shall include a means of ranking crit-
ical sites for priority in remediation based on potential en-
vironmental harm, other land use priorities, and public
health and safety.
(3) The program shall provide that responsible parties
be identified wherever possible and that the costs of remedi-
ation be recovered.
(4) In carrying out the program, the Secretary of the
Interior shall work cooperatively with the Secretary of Agri-
culture and the States within which the Federal lands are
located, and shall consult with the Secretary of Energy, and
the Interstate Oil and Gas Compact Commission.
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(b) PLAN.—Within 6 months from the date of enact-
ment of this section, the Secretary of the Interior, in co-
operation with the Secretary of Agriculture, shall prepare
a plan for carrying out the program established under sub-
section (a). Copies of the plan shall be transmitted to the
Committee on Energy and Natural Resources of the Senate
and the Committee on Resources of the House of Representa-
tives.
(c) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary of the Inte-
rior $5,000,000 for each of fiscal years 2003 through 2005
to carry out the activities provided for in this section.
SEC. 605. ORPHANED AND ABANDONED OIL AND GAS WELL
PROGRAM.
(a) ESTABLISHMENT.—The Secretary of Energy shall
establish a program to provide technical assistance to the
various oil and gas producing States to facilitate State ef-
forts over a 10-year period to ensure a practical and eco-
nomical remedy for environmental problems caused by or-
phaned and abandoned exploration or production well sites
on State and private lands. The Secretary shall work with
the States, through the Interstate Oil and Gas Compact
Commission, to assist the States in quantifying and miti-
gating environmental risks of onshore abandoned and or-
phaned wells on State and private lands.
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(b) PROGRAM
ELEMENTS.—The program should
include—
(1) mechanisms to facilitate identification of re-
sponsible parties wherever possible;
(2) criteria for ranking critical sites based on
factors such as other land use priorities, potential en-
vironmental harm and public visibility; and
(3) information and training programs on best
practices for remediation of different types of sites.
(c) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary of Energy
for the activities under this section $5,000,000 for each of
fiscal years 2003 through 2005 to carry out the provisions
of this section.
SEC. 606. OFFSHORE DEVELOPMENT.
Section 5 of the Outer Continental Shelf Lands Act
of 1953 (43 U.S.C. 1334) is amended by adding at the end
the following:
‘‘(k) SUSPENSION OF OPERATIONS FOR SUBSALT EX-
PLORATION.—Notwithstanding any other provision of law
or regulation, the Secretary may grant a request for a sus-
pension of operations under any lease to allow the lessee
to reprocess or reinterpret geologic or geophysical data be-
neath allocthonous salt sheets, when in the Secretary’s judg-
ment such suspension is necessary to prevent waste caused
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by the drilling of unnecessary wells, and to maximize ulti-
mate recovery of hydrocarbon resources under the lease.
Such suspension shall be limited to the minimum period
of time the Secretary determines is necessary to achieve the
objectives of this subsection.’’.
SEC. 607. COALBED METHANE STUDY.
(a) STUDY.—The National Academy of Sciences shall
conduct a study on the effects of coalbed methane production
on surface and water resources.
(b) DATA ANALYSIS.—The study shall analyze avail-
able hydrogeologic and water quality data, along with other
pertinent 
environmental 
or 
other 
information 
to
determine—
(1) adverse effects associated with surface or sub-
surface disposal of waters produced during extraction
of coalbed methane;
(2) depletion of groundwater aquifers or drink-
ing water sources associated with production of coal-
bed methane;
(3) any other significant adverse impacts to sur-
face or water resources associated with production of
coalbed methane; and
(4) production techniques or other factors that
can mitigate adverse impacts from coalbed methane
development.
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(c) RECOMMENDATIONS.—The study shall analyze ex-
isting Federal and State laws and regulations, and make
recommendations as to changes, if any, to Federal law nec-
essary to address adverse impacts to surface or water re-
sources attributable to coalbed methane development.
(d) COMPLETION OF STUDY.—The National Academy
of Sciences shall submit the study to the Secretary of the
Interior within 18 months after the date of enactment of
this Act, and shall make the study available to the public
at the same time.
(e) REPORT TO CONGRESS.—The Secretary of the Inte-
rior shall report to Congress within 6 months of her receipt
of the study on—
(1) the findings and recommendations of the
study;
(2) the Secretary’s agreement or disagreement
with each of its findings and recommendations; and
(3) any recommended changes in funding to ad-
dress the effects of coalbed methane production on sur-
face and water resources.
SEC. 608. FISCAL POLICIES TO MAXIMIZE RECOVERY OF DO-
MESTIC OIL AND GAS RESOURCES.
(a) EVALUATION.—The Secretary of Energy, in coordi-
nation with the Secretaries of the Interior, Commerce, and
Treasury, Indian tribes and the Interstate Oil and Gas
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Compact Commission, shall evaluate the impact of existing
Federal and State tax and royalty policies on the develop-
ment of domestic oil and gas resources and on revenues to
Federal, State, local and tribal governments.
(b) SCOPE.—The evaluation under subsection (a)
shall—
(1) analyze the impact of fiscal policies on oil
and natural gas exploration, development drilling,
and production under different price scenarios, in-
cluding the impact of the individual and corporate
Alternative Minimum Tax, State and local produc-
tion taxes and fixed royalty rates during low price
periods;
(2) assess the effect of existing Federal and State
fiscal policies on investment under different geological
and developmental circumstances, including but not
limited to deepwater environments, subsalt forma-
tions, deep and deviated wells, coalbed methane and
other unconventional oil and gas formations;
(3) assess the extent to which Federal and State
fiscal policies negatively impact the ultimate recovery
of resources from existing fields and smaller accumu-
lations in offshore waters, especially in water depths
less than 800 meters, of the Gulf of Mexico;
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(4) compare existing Federal and State policies
with tax and royalty regimes in other countries with
particular emphasis on similar geological, develop-
mental and infrastructure conditions; and
(5) evaluate how alternative tax and royalty
policies, including counter-cyclical measures, could
increase recovery of domestic oil and natural gas re-
sources and revenues to Federal, State, local and trib-
al governments.
(c) POLICY RECOMMENDATIONS.—Based upon the
findings of the evaluation under subsection (a), a report de-
scribing the findings and recommendations for policy
changes shall be provided to the President, the Congress, the
Governors of the member States of the Interstate Oil and
Gas Compact Commission, and Indian tribes having an oil
and gas lease approved by the Secretary of the Interior. The
recommendations should ensure that the public interest in
receiving the economic benefits of tax and royalty revenues
is balanced with the broader national security and eco-
nomic interests in maximizing recovery of domestic re-
sources. The report should include recommendations regard-
ing actions to—
(1) ensure stable development drilling during pe-
riods of low oil and/or natural gas prices to maintain
reserve replacement and deliverability;
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(2) minimize the negative impact of a volatile
investment climate on the oil and gas service industry
and domestic oil and gas exploration and production;
(3) ensure a consistent level of domestic activity
to encourage the education and retention of a tech-
nical workforce; and
(4) maintain production capability during peri-
ods of low oil and/or natural gas prices.
(d) ROYALTY GUIDELINES.—The recommendations re-
quired under (c) should include guidelines for private re-
source holders as to the appropriate level of royalties given
geology, development cost, and the national interest in
maximizing recovery of oil and gas resources.
(e) REPORT.—The study under subsection (a) shall be
completed not later than 18 months after the date of enact-
ment of this section. The report and recommendations re-
quired in (c) shall be transmitted to the President, the Con-
gress, Indian tribes, and the Governors of the member States
of the Interstate Oil and Gas Compact Commission.
SEC. 609. STRATEGIC PETROLEUM RESERVE.
(a) FULL CAPACITY.—The President shall—
(1) fill the Strategic Petroleum Reserve estab-
lished pursuant to part B of title I of the Energy Pol-
icy and Conservation Act (42 U.S.C. 6231 et seq.) to
full capacity as soon as practicable;
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(2) acquire petroleum for the Strategic Petro-
leum Reserve by the most practicable and cost-effec-
tive means, including the acquisition of crude oil the
United States is entitled to receive in kind as royal-
ties from production on Federal lands; and
(3) ensure that the fill rate minimizes impacts
on petroleum markets.
(b) RECOMMENDATIONS.—Not later than 180 days
after the date of enactment of this Act, the Secretary of En-
ergy shall submit to Congress a plan to—
(1) eliminate any infrastructure impediments
that may limit maximum drawdown capability; and
(2) determine whether the capacity of the Stra-
tegic Petroleum Reserve on the date of enactment of
this section is adequate in light of the increasing con-
sumption of petroleum and the reliance on imported
petroleum.
SEC. 610. HYDRAULIC FRACTURING.
Section 1421 of the Safe Drinking Water Act (42
U.S.C. 300h) is amended by adding at the end the following:
‘‘(e) HYDRAULIC FRACTURING FOR OIL AND GAS PRO-
DUCTION.—
‘‘(1) STUDY OF THE EFFECTS OF HYDRAULIC
FRACTURING.—
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‘‘(A) IN GENERAL.—As soon as practicable,
but in no event later than 24 months after the
date of enactment of this subsection, the Admin-
istrator shall complete a study of the known and
potential effects on underground drinking water
sources of hydraulic fracturing, including the ef-
fects of hydraulic fracturing on underground
drinking water sources on a nationwide basis,
and within specific regions, States, or portions of
States.
‘‘(B) CONSULTATION.—In planning and
conducting the study, the Administrator shall
consult with the Secretary of the Interior, the
Secretary of Energy, the Ground Water Protec-
tion Council, affected States, and, as appro-
priate, representatives of environmental, indus-
try, academic, scientific, public health, and other
relevant organizations. Such study may be ac-
complished in conjunction with other ongoing
studies related to the effects of oil and gas pro-
duction on groundwater resources.
‘‘(C) STUDY
ELEMENTS.—The study con-
ducted under subparagraph (A) shall, at a min-
imum, examine and make findings as to
whether—
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‘‘(i) such hydraulic fracturing has en-
dangered or will endanger (as defined under
subsection (d)(2)) underground drinking
water sources, including those sources with-
in specific regions, States or portions of
States;
‘‘(ii) there are specific methods, prac-
tices, or hydrogeologic circumstances in
which hydraulic fracturing has endangered
or will endanger underground drinking
water sources; and
‘‘(iii) there are any precautionary ac-
tions that may reduce or eliminate any
such endangerment.
‘‘(D) STUDY OF HYDRAULIC FRACTURING IN
A PARTICULAR TYPE OF GEOLOGIC FORMATION.—
The Administrator may also complete a separate
study on the known and potential effects on un-
derground drinking water sources of hydraulic
fracturing in a particular type of geologic for-
mation:
‘‘(i) If such a study is undertaken, the
Administrator shall follow the procedures
for study preparation and independent sci-
entific review set forth in subparagraphs (1)
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(B) and (C) and (2) of this subsection. The
Administrator may complete this separate
study prior to the completion of the broader
study of hydraulic fracturing required pur-
suant to subparagraph (A) of this sub-
section.
‘‘(ii) At the conclusion of independent
scientific review for any separate study, the
Administrator shall determine, pursuant to
paragraph (3), whether regulation of hy-
draulic fracturing in the particular type of
geologic formation addressed in the separate
study is necessary under this part to ensure
that underground sources of drinking water
will not be endangered on a nationwide
basis, or within a specific region, State or
portions of a State. Subparagraph (4) of
this subsection shall apply to any such de-
termination by the Administrator.
‘‘(iii) If the Administrator completes a
separate study, the Administrator may use
the information gathered in the course of
such a study in undertaking her broad
study to the extent appropriate. The broader
study need not include a reexamination of
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the conclusions reached by the Adminis-
trator in any separate study.
‘‘(2) INDEPENDENT SCIENTIFIC REVIEW.—
‘‘(A) IN GENERAL.—Prior to the time the
study under paragraph (1) is completed, the Ad-
ministrator shall enter into an appropriate
agreement with the National Academy of
Sciences to have the Academy review the conclu-
sions of the study.
‘‘(B) REPORT.—Not later than 11 months
after entering into an appropriate agreement
with the Administrator, the National Academy of
Sciences shall report to the Administrator, the
Committee on Energy and Commerce of the
House of Representatives, and the Committee on
Environment and Public Works of the Senate, on
the—
‘‘(i) findings related to the study con-
ducted by the Administrator under para-
graph (1);
‘‘(ii) the scientific and technical basis
for such findings; and
‘‘(iii) recommendations, if any, for
modifying the findings of the study.
‘‘(3) REGULATORY DETERMINATION.—
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‘‘(A) IN
GENERAL.—Not later than 6
months after receiving the National Academy of
Sciences report under paragraph (2), the Admin-
istrator shall determine, after informal public
hearings and public notice and opportunity for
comment, and based on information developed or
accumulated in connection with the study re-
quired under paragraph (1) and the National
Academy of Sciences report under paragraph
(2), either—
‘‘(i) that regulation of hydraulic frac-
turing under this part is necessary to en-
sure that underground sources of drinking
water will not be endangered on a nation-
wide basis, or within a specific region,
State or portions of a State; or
‘‘(ii) that regulation described under
clause (i) is unnecessary.
‘‘(B) PUBLICATION
OF
DETERMINATION.—
The Administrator shall publish the determina-
tion in the Federal Register, accompanied by an
explanation and the reasons for it.
‘‘(4) PROMULGATION OF REGULATIONS.—
‘‘(A) REGULATION NECESSARY.—If the Ad-
ministrator determines under paragraph (3) that
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regulation by hydraulic fracturing under this
part is necessary to ensure that hydraulic frac-
turing does not endanger underground drinking
water sources on a nationwide basis, or within
a specific region, State or portions of a State,
the Administrator shall, within 6 months after
the issuance of that determination, and after
public notice and opportunity for comment, pro-
mulgate regulations under section 1421 (42
U.S.C. 300h) to ensure that hydraulic fracturing
will not endanger such underground sources of
drinking water. However, for purposes of the Ad-
ministrator’s approval or disapproval under sec-
tion 1422 of any State underground injection
control program for regulating hydraulic frac-
turing, a State at any time may make the alter-
native demonstration provided for in section
1425 of this title.
‘‘(B) REGULATION UNNECESSARY.—The Ad-
ministrator shall not regulate or require States
to regulate hydraulic fracturing under this part
unless the Administrator determines under para-
graph (3) that such regulation is necessary. This
provision shall not apply to any State which has
a program for the regulation of hydraulic frac-
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turing that was approved by the Administrator
under this part prior to the effective date of this
subsection.
‘‘(C) EXISTING
REGULATIONS.—A deter-
mination by the Administrator under paragraph
(3) that regulation is unnecessary will relieve all
States (including those with existing approved
programs for the regulation of hydraulic frac-
turing) from any further obligation to regulate
hydraulic fracturing as an underground injec-
tion under this part.
‘‘(5) DEFINITION OF HYDRAULIC FRACTURING.—
For purposes of this subsection, the term ‘hydraulic
fracturing’ means the process of creating a fracture in
a reservoir rock, and injecting fluids and propping
agents, for the purposes of reservoir stimulation re-
lated to oil and gas production activities.
‘‘(6) SAVINGS.—Nothing in this subsection shall
in any way limit the authorities of the Administrator
under section 1431 (42 U.S.C. 300i).’’.
SEC. 611. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Admin-
istrator of the Environmental Protection Agency $100,000
for fiscal year 2003, to remain available until expended,
for a grant to the State of Alabama to assist in the imple-
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mentation of its regulatory program under section 1425 of
the Safe Drinking Water Act.
SEC. 612. PRESERVATION OF OIL AND GAS RESOURCE
DATA.
The Secretary of the Interior, through the United
States Geological Survey, may enter into appropriate ar-
rangements with State agencies that conduct geological sur-
vey activities to collect, archive, and provide public access
to data and study results regarding oil and natural gas
resources. The Secretary may accept private contributions
of property and services for purposes of this section.
SEC 613. RESOLUTION OF FEDERAL RESOURCE DEVELOP-
MENT CONFLICTS IN THE POWDER RIVER
BASIN.
The Secretary of the Interior shall undertake a review
of existing authorities to resolve conflicts between the devel-
opment of Federal coal and the development of Federal and
non-Federal coalbed methane in the Powder River Basin
in Wyoming and Montana. Not later than 90 days from
enactment of this Act, the Secretary shall report to Congress
on her plan to resolve these conflicts.
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TITLE VII—NATURAL GAS
PIPELINES
Subtitle A—Alaska Natural Gas
Pipeline
SEC. 701. SHORT TITLE.
This subtitle may be cited as the ‘‘Alaska Natural Gas
Pipeline Act of 2002’’.
SEC. 702. FINDINGS.
The Congress finds that:
(1) Construction of a natural gas pipeline sys-
tem from the Alaskan North Slope to United States
markets is in the national interest and will enhance
national energy security by providing access to the
significant gas reserves in Alaska needed to meet the
anticipated demand for natural gas.
(2) The Commission issued a conditional certifi-
cate of public convenience and necessity for the Alas-
ka Natural Gas Transportation System, which re-
mains in effect.
SEC. 703. PURPOSES.
The purposes of this subtitle are—
(1) to provide a statutory framework for the ex-
pedited approval, construction, and initial operation
of an Alaska natural gas transportation project, as
an alternative to the framework provided in the Alas-
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ka Natural Gas Transportation Act of 1976 (15
U.S.C. 719–719o), which remains in effect;
(2) to establish a process for providing access to
such transportation project in order to promote com-
petition in the exploration, development and produc-
tion of Alaska natural gas;
(3) to clarify Federal authorities under the Alas-
ka Natural Gas Transportation Act; and
(4) to authorize Federal financial assistance to
an Alaska natural gas transportation project as pro-
vided in this subtitle.
SEC. 704. ISSUANCE OF CERTIFICATE OF PUBLIC CONVEN-
IENCE AND NECESSITY.
(a) AUTHORITY
OF
THE
COMMISSION.—Notwith-
standing the provisions of the Alaska Natural Gas Trans-
portation Act of 1976 (15 U.S.C. 719–719o), the Commis-
sion may, pursuant to section 7(c) of the Natural Gas Act
(15 U.S.C. 717f(c)), consider and act on an application for
the issuance of a certificate of public convenience and neces-
sity authorizing the construction and operation of an Alas-
ka natural gas transportation project other than the Alaska
Natural Gas Transportation System.
(b) ISSUANCE OF CERTIFICATE.—(1) The Commission
shall issue a certificate of public convenience and necessity
authorizing the construction and operation of an Alaska
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natural gas transportation project under this section if the
applicant has satisfied the requirements of section 7(e) of
the Natural Gas Act (15 U.S.C. 717f(e)).
(2) In considering an application under this section,
the Commission shall presume that—
(A) a public need exists to construct and operate
the proposed Alaska natural gas transportation
project; and
(B) sufficient downstream capacity will exist to
transport the Alaska natural gas moving through such
project to markets in the contiguous United States.
(c) EXPEDITED APPROVAL PROCESS.—The Commis-
sion shall issue a final order granting or denying any ap-
plication for a certificate of public convenience and neces-
sity under section 7(c) of the Natural Gas Act (15 U.S.C.
717f(c)) and this section not more than 60 days after the
issuance of the final environmental impact statement for
that project pursuant to section 705.
(d) PROHIBITION ON CERTAIN PIPELINE ROUTE.—No
license, permit, lease, right-of-way, authorization or other
approval required under Federal law for the construction
of any pipeline to transport natural gas from lands within
the Prudhoe Bay oil and gas lease area may be granted
for any pipeline that follows a route that traverses—
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(1) the submerged lands (as defined by the Sub-
merged Lands Act) beneath, or the adjacent shoreline
of, the Beaufort Sea; and
(2) enters Canada at any point north of 68 de-
grees North latitude.
(e) OPEN SEASON.—Except where an expansion is or-
dered pursuant to section 706, initial or expansion capacity
on any Alaska natural gas transportation project shall be
allocated in accordance with procedures to be established
by the Commission in regulations governing the conduct of
open seasons for such project. Such procedures shall include
the criteria for and timing of any open seasons, be con-
sistent with the purposes set forth in section 703(2) and,
for any open season for capacity beyond the initial capac-
ity, provide the opportunity for the transportation of nat-
ural gas other than from the Prudhoe Bay and Point
Thompson units. The Commission shall issue such regula-
tions no later than 120 days after the enactment of this
subtitle.
(f) PROJECTS IN THE CONTIGUOUS UNITED STATES.—
Applications for additional or expanded pipeline facilities
that may be required to transport Alaska natural gas from
Canada to markets in the contiguous United States may
be made pursuant to the Natural Gas Act. To the extent
such pipeline facilities include the expansion of any facility
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constructed pursuant to the Alaska Natural Gas Transpor-
tation Act of 1976, the provisions of that Act shall continue
to apply.
(g) STUDY OF IN-STATE NEEDS.—The holder of the
certificate of public convenience and necessity issued, modi-
fied, or amended by the Commission for an Alaska natural
gas transportation project shall demonstrate that it has con-
ducted a study of Alaska in-State needs, including tie-in
points along the Alaska natural gas transportation project
for in-State access.
(h) ALASKA ROYALTY GAS.—The Commission, upon
the request of the State of Alaska and after a hearing, may
provide for reasonable access to the Alaska natural gas
transportation project for the State of Alaska or its designee
for the transportation of the State’s royalty gas for local
consumption needs within the State: Provided, That the
rates of existing shippers of subscribed capacity on such
project shall not be increased as a result of such access.
(i) REGULATIONS.—The Commission may issue regu-
lations to carry out the provisions of this section.
SEC. 705. ENVIRONMENTAL REVIEWS.
(a) COMPLIANCE WITH NEPA.—The issuance of a cer-
tificate of public convenience and necessity authorizing the
construction and operation of any Alaska natural gas
transportation project under section 704 shall be treated as
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a major Federal action significantly affecting the quality
of the human environment within the meaning of section
102(2)(C) of the National Environmental Policy Act of
1969 (42 U.S.C. 4332(2)(C)).
(b) DESIGNATION OF LEAD AGENCY.—The Commis-
sion shall be the lead agency for purposes of complying with
the National Environmental Policy Act of 1969, and shall
be responsible for preparing the statement required by sec-
tion 102(2)(c) of that Act (42 U.S.C. 4332(2)(c)) with re-
spect to an Alaska natural gas transportation project under
section 704. The Commission shall prepare a single environ-
mental statement under this section, which shall consolidate
the environmental reviews of all Federal agencies consid-
ering any aspect of the project.
(c) OTHER AGENCIES.—All Federal agencies consid-
ering aspects of the construction and operation of an Alaska
natural gas transportation project under section 704 shall
cooperate with the Commission, and shall comply with
deadlines established by the Commission in the preparation
of the statement under this section. The statement prepared
under this section shall be used by all such agencies to sat-
isfy their responsibilities under section 102(2)(C) of the Na-
tional Environmental Policy Act of 1969 (42 U.S.C.
4332(2)(C)) with respect to such project.
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(d) EXPEDITED PROCESS.—The Commission shall
issue a draft statement under this section not later than
12 months after the Commission determines the application
to be complete and shall issue the final statement not later
than 6 months after the Commission issues the draft state-
ment, unless the Commission for good cause finds that addi-
tional time is needed.
SEC. 706. PIPELINE EXPANSION.
(a) AUTHORITY.—With respect to any Alaska natural
gas transportation project, upon the request of one or more
persons and after giving notice and an opportunity for a
hearing, the Commission may order the expansion of such
project if it determines that such expansion is required by
the present and future public convenience and necessity.
(b) REQUIREMENTS.—Before ordering an expansion
the Commission shall—
(1) approve or establish rates for the expansion
service that are designed to ensure the recovery, on an
incremental or rolled-in basis, of the cost associated
with the expansion (including a reasonable rate of re-
turn on investment);
(2) ensure that the rates as established do not re-
quire existing shippers on the Alaska natural gas
transportation project to subsidize expansion ship-
pers;
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(3) find that the proposed shipper will comply
with, and the proposed expansion and the expansion
of service will be undertaken and implemented based
on, terms and conditions consistent with the then-ef-
fective tariff of the Alaska natural gas transportation
project;
(4) find that the proposed facilities will not ad-
versely affect the financial or economic viability of the
Alaska natural gas transportation project;
(5) find that the proposed facilities will not ad-
versely affect the overall operations of the Alaska nat-
ural gas transportation project;
(6) find that the proposed facilities will not di-
minish the contract rights of existing shippers to pre-
viously subscribed certificated capacity;
(7) ensure that all necessary environmental re-
views have been completed; and
(8) find that adequate downstream facilities exist
or are expected to exist to deliver incremental Alaska
natural gas to market.
(c) REQUIREMENT
FOR
A FIRM TRANSPORTATION
AGREEMENT.—Any order of the Commission issued pursu-
ant to this section shall be null and void unless the person
or persons requesting the order executes a firm transpor-
tation agreement with the Alaska natural gas transpor-
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tation project within a reasonable period of time as speci-
fied in such order.
(d) LIMITATION.—Nothing in this section shall be con-
strued to expand or otherwise affect any authorities of the
Commission with respect to any natural gas pipeline lo-
cated outside the State of Alaska.
(e) REGULATIONS.—The Commission may issue regu-
lations to carry out the provisions of this section.
SEC. 707. FEDERAL COORDINATOR.
(a) ESTABLISHMENT.—There is established as an inde-
pendent establishment in the executive branch, the Office
of the Federal Coordinator for Alaska Natural Gas Trans-
portation Projects.
(b) THE FEDERAL COORDINATOR.—The Office shall be
headed by a Federal Coordinator for Alaska Natural Gas
Transportation Projects, who shall—
(1) be appointed by the President, by and with
the advice of the Senate,
(2) hold office at the pleasure of the President,
and
(3) be compensated at the rate prescribed for
level III of the Executive Schedule (5 U.S.C. 5314).
(c) DUTIES.—The Federal Coordinator shall be respon-
sible for—
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(1) coordinating the expeditious discharge of all
activities by Federal agencies with respect to an Alas-
ka natural gas transportation project; and
(2) ensuring the compliance of Federal agencies
with the provisions of this subtitle.
(d) REVIEWS
AND ACTIONS
OF OTHER FEDERAL
AGENCIES.—(1) All reviews conducted and actions taken by
any Federal officer or agency relating to an Alaska natural
gas transportation project authorized under this section
shall be expedited, in a manner consistent with completion
of the necessary reviews and approvals by the deadlines set
forth in this subtitle.
(2) No Federal officer or agency shall have the author-
ity to include terms and conditions that are permitted, but
not required, by law on any certificate, right-of-way, per-
mit, lease or other authorization issued to an Alaska nat-
ural gas transportation project if the Federal Coordinator
determines that the terms and conditions would prevent or
impair in any significant respect the expeditious construc-
tion and operation of the project.
(3) Unless required by law, no Federal officer or agen-
cy shall add to, amend, or abrogate any certificate, right-
of-way, permit, lease or other authorization issued to an
Alaska natural gas transportation project if the Federal Co-
ordinator determines that such action would prevent or im-
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pair in any significant respect the expeditious construction
and operation of the project.
(e) STATE COORDINATION.—The Federal Coordinator
shall enter into a Joint Surveillance and Monitoring Agree-
ment, approved by the President and the Governor of Alas-
ka, with the State of Alaska similar to that in effect during
construction of the Trans-Alaska Oil Pipeline to monitor
the construction of the Alaska natural gas transportation
project. The Federal Government shall have primary sur-
veillance and monitoring responsibility where the Alaska
natural gas transportation project crosses Federal lands
and private lands, and the State government shall have pri-
mary surveillance and monitoring responsibility where the
Alaska natural gas transportation project crosses State
lands.
SEC. 708. JUDICIAL REVIEW.
(a) EXCLUSIVE JURISDICTION.—The United States
Court of Appeals for the District of Columbia Circuit shall
have exclusive jurisdiction to determine—
(1) the validity of any final order or action (in-
cluding a failure to act) of any Federal agency or of-
ficer under this subtitle;
(2) the constitutionality of any provision of this
subtitle, or any decision made or action taken there-
under; or
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SEC. 709. STATE JURISDICTION OVER IN-STATE DELIVERY
OF NATURAL GAS.
(a) LOCAL DISTRIBUTION.—Any facility receiving
natural gas from the Alaska natural gas transportation
project for delivery to consumers within the State of Alaska
shall be deemed to be a local distribution facility within
the meaning of section 1(b) of the Natural Gas Act (15
U.S.C. 717), and therefore not subject to the jurisdiction
of the Federal Energy Regulatory Commission.
(b) ADDITIONAL PIPELINES.—Nothing in this subtitle,
except as provided in subsection 704(d), shall preclude or
affect a future gas pipeline that may be constructed to de-
liver natural gas to Fairbanks, Anchorage, Matanuska-
Susitna Valley, or the Kenai peninsula or Valdez or any
other site in the State of Alaska for consumption within
or distribution outside the State of Alaska.
(c) RATE COORDINATION.—Pursuant to the Natural
Gas Act, the Commission shall establish rates for the trans-
portation of natural gas on the Alaska natural gas trans-
portation project. In exercising such authority, the Commis-
sion, pursuant to Section 17(b) of the Natural Gas Act (15
U.S.C. 717p), shall confer with the State of Alaska regard-
ing rates (including rate settlements) applicable to natural
gas transported on and delivered from the Alaska natural
gas transportation project for use within the State of Alas-
ka.
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SEC. 710. LOAN GUARANTEE.
(a) AUTHORITY.—The Secretary of Energy may guar-
antee not more than 80 percent of the principal of any loan
made to the holder of a certificate of public convenience and
necessity issued under section 704(b) of this Act or section
9 of the Alaska Natural Gas Transportation Act of 1976
(15 U.S.C. 719g) for the purpose of constructing an Alaska
natural gas transportation project.
(b) CONDITIONS.—(1) The Secretary of Energy may
not guarantee a loan under this section unless the guarantee
has filed an application for a certificate of public conven-
ience and necessity under section 704(b) of this Act or for
an amended certificate under section 9 of the Alaska Nat-
ural Gas Transportation Act of 1976 (15 U.S.C. 719g) with
the Commission not later than 18 months after the date of
enactment of this subtitle.
(2) A loan guaranteed under this section shall be made
by a financial institution subject to the examination of the
Secretary.
(3) Loan requirements, including term, maximum size,
collateral requirements and other features shall be deter-
mined by the Secretary.
(c) LIMITATION ON AMOUNT.—Commitments to guar-
antee loans may be made by the Secretary of Energy only
to the extent that the total loan principal, any part of which
is guaranteed, will not exceed $10,000,000,000.
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(d) REGULATIONS.—The Secretary of Energy may
issue regulations to carry out the provisions of this section.
(e) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary such sums
as may be necessary to cover the cost of loan guarantees,
as defined by section 502(5) of the Federal Credit Reform
Act of 1990 (2 U.S.C. 661a(5)).
SEC. 711. STUDY OF ALTERNATIVE MEANS OF CONSTRUC-
TION.
(a) REQUIREMENT OF STUDY.—If no application for
the issuance of a certificate or amended certificate of public
convenience and necessity authorizing the construction and
operation of an Alaska natural gas transportation project
has been filed with the Commission within 18 months after
the date of enactment of this title, the Secretary of Energy
shall conduct a study of alternative approaches to the con-
struction and operation of the project.
(b) SCOPE OF STUDY.—The study shall consider the
feasibility of establishing a Government corporation to con-
struct an Alaska natural gas transportation project, and
alternative means of providing Federal financing and own-
ership (including alternative combinations of Government
and private corporate ownership) of the project.
(c) CONSULTATION.—In conducting the study, the Sec-
retary of Energy shall consult with the Secretary of the
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Treasury and the Secretary of the Army (acting through
the Commanding General of the Corps of Engineers).
(d) REPORT.—If the Secretary of Energy is required
to conduct a study under subsection (a), he shall submit
a report containing the results of the study, his rec-
ommendations, and any proposals for legislation to imple-
ment his recommendations to the Congress within 6 months
after the expiration of the Secretary of Energy’s authority
to guarantee a loan under section 710.
SEC. 712. CLARIFICATION OF ANGTA STATUS AND AUTHORI-
TIES.
(a) SAVINGS CLAUSE.—Nothing in this subtitle affects
any decision, certificate, permit, right-of-way, lease, or
other authorization issued under section 9 of the Alaska
Natural Gas Transportation Act of 1976 (15 U.S.C. 719g)
or any Presidential findings or waivers issued in accord-
ance with that Act.
(b) CLARIFICATION OF AUTHORITY TO AMEND TERMS
AND CONDITIONS TO MEET CURRENT PROJECT REQUIRE-
MENTS.—Any Federal officer or agency responsible for
granting or issuing any certificate, permit, right-of-way,
lease, or other authorization under section 9 of the Alaska
Natural Gas Transportation Act of 1976 (15 U.S.C. 719g)
may add to, amend, or abrogate any term or condition in-
cluded in such certificate, permit, right-of-way, lease, or
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other authorization to meet current project requirements
(including the physical design, facilities, and tariff speci-
fications), so long as such action does not compel a change
in the basic nature and general route of the Alaska Natural
Gas Transportation System as designated and described in
section 2 of the President’s Decision, or would otherwise
prevent or impair in any significant respect the expeditious
construction and initial operation of such transportation
system.
(c) UPDATED ENVIRONMENTAL REVIEWS.—The Sec-
retary of Energy shall require the sponsor of the Alaska
Natural Gas Transportation System to submit such up-
dated environmental data, reports, permits, and impact
analyses as the Secretary determines are necessary to de-
velop detailed terms, conditions, and compliance plans re-
quired by section 5 of the President’s Decision.
SEC. 713. DEFINITIONS.
For purposes of this subtitle:
(1) The term ‘‘Alaska natural gas’’ means nat-
ural gas derived from the area of the State of Alaska
lying north of 64 degrees North latitude.
(2) The term ‘‘Alaska natural gas transportation
project’’ means any natural gas pipeline system that
carries Alaska natural gas to the border between Alas-
ka and Canada (including related facilities subject to
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the jurisdiction of the Commission) that is authorized
under either—
(A) the Alaska Natural Gas Transportation
Act of 1976 (15 U.S.C. 719–719o); or
(B) section 704 of this subtitle.
(3) The term ‘‘Alaska Natural Gas Transpor-
tation System’’ means the Alaska natural gas trans-
portation project authorized under the Alaska Natural
Gas Transportation Act of 1976 and designated and
described in section 2 of the President’s Decision.
(4) The term ‘‘Commission’’ means the Federal
Energy Regulatory Commission.
(5) The term ‘‘President’s Decision’’ means the
Decision and Report to Congress on the Alaska Nat-
ural Gas Transportation system issued by the Presi-
dent on September 22, 1977 pursuant to section 7 of
the Alaska Natural Gas Transportation Act of 1976
(15 U.S.C. 719c) and approved by Public Law 95–
158.
SEC. 714. SENSE OF THE SENATE.
It is the sense of the Senate that an Alaska natural
gas transportation project will provide significant economic
benefits to the United States and Canada. In order to maxi-
mize those benefits, the Senate urges the sponsors of the
pipeline project to make every effort to use steel that is man-
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ufactured or produced in North America and to negotiate
a project labor agreement to expedite construction of the
pipeline.
SEC. 715. ALASKAN PIPELINE CONSTRUCTION TRAINING
PROGRAM.
(a) Within six months after enactment of this Act, the
Secretary of Labor (in this section referred to as the ‘‘Sec-
retary’’) shall submit a report to the Committee on Energy
and Natural Resources of the United States Senate and the
Committee on Resources of the United States House of Rep-
resentatives setting forth a program to train Alaska resi-
dents in the skills and crafts required in the design, con-
struction, and operation of an Alaska gas pipeline system
and that will enhance employment and contracting oppor-
tunities for Alaskan residents. The report shall also describe
any laws, rules, regulations and policies which act as a de-
terrent to hiring Alaskan residents or contracting with
Alaskan residents to perform work on Alaska gas pipelines,
together with any recommendations for change. For pur-
poses of this subsection, Alaskan residents shall be defined
as those individuals eligible to vote within the State of Alas-
ka on the date of enactment of this Act.
(b) Within 1 year of the date the report is transmitted
to Congress, the Secretary shall establish within the State
of Alaska, at such locations as are appropriate, one or more
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training centers for the express purpose of training Alaskan
residents in the skills and crafts necessary in the design,
construction and operation of gas pipelines in Alaska. Each
such training center shall also train Alaskan residents in
the skills required to write, offer, and monitor contracts in
support of the design, construction, and operation of Alaska
gas pipelines.
(c) In implementing the report and program described
in this subsection, the Secretary shall consult with the Alas-
kan Governor.
(d) There are authorized to be appropriated to the Sec-
retary such sums as may be necessary, but not to exceed
$20,000,000 for the purposes of this subsection.
Subtitle B—Operating Pipelines
SEC. 721. ENVIRONMENTAL REVIEW AND PERMITTING OF
NATURAL GAS PIPELINE PROJECTS.
(a) INTERAGENCY REVIEW.—The Chairman of the
Council on Environmental Quality, in coordination with
the Federal Energy Regulatory Commission, shall establish
an interagency task force to develop an interagency memo-
randum of understanding to expedite the environmental re-
view and permitting of natural gas pipeline projects.
(b) MEMBERSHIP OF INTERAGENCY TASK FORCE.—
The task force shall consist of—
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(1) the Chairman of the Council on Environ-
mental Quality, who shall serve as the Chairman of
the interagency task force,
(2) the Chairman of the Federal Energy Regu-
latory Commission,
(3) the Director of the Bureau of Land Manage-
ment,
(4) the Director of the United States Fish and
Wildlife Service,
(5) the Commanding General, United States
Army Corps of Engineers,
(6) the Chief of the Forest Service,
(7) the Administrator of the Environmental Pro-
tection Agency,
(8) the Chairman of the Advisory Council on
Historic Preservation, and
(9) the heads of such other agencies as the Chair-
man of the Council on Environmental Quality and
the Chairman of the Federal Energy Regulatory Com-
mission deem appropriate.
(c) MEMORANDUM OF UNDERSTANDING.—The agencies
represented by the members of the interagency task force
shall enter into the memorandum of understanding not
later than 1 year after the date of the enactment of this
section.
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Subtitle C—Pipeline Safety
PART I—SHORT TITLE; AMENDMENT OF
TITLE 49
SEC. 741. SHORT TITLE; AMENDMENT OF TITLE 49, UNITED
STATES CODE.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘Pipeline Safety Improvement Act of 2002’’.
(b) AMENDMENT
OF TITLE 49, UNITED STATES
CODE.—Except as otherwise expressly provided, whenever
in this subtitle an amendment or repeal is expressed in
terms of an amendment to, or a repeal of, a section or other
provision, the reference shall be considered to be made to
a section or other provision of title 49, United States Code.
PART II—PIPELINE SAFETY
IMPROVEMENT ACT OF 2002
SEC. 761. IMPLEMENTATION OF INSPECTOR GENERAL REC-
OMMENDATIONS.
(a) IN GENERAL.—Except as otherwise required by
this subtitle, the Secretary shall implement the safety im-
provement recommendations provided for in the Depart-
ment of Transportation Inspector General’s Report (RT–
2000–069).
(b) REPORTS BY THE SECRETARY.—Not later than 90
days after the date of enactment of this Act, and every 90
days thereafter until each of the recommendations referred
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to in subsection (a) has been implemented, the Secretary
shall transmit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Trans-
portation and Infrastructure of the House of Representa-
tives a report on the specific actions taken to implement
such recommendations.
(c) REPORTS BY THE INSPECTOR GENERAL.—The In-
spector General shall periodically transmit to the commit-
tees referred to in subsection (b) a report assessing the Sec-
retary’s progress in implementing the recommendations re-
ferred to in subsection (a) and identifying options for the
Secretary to consider in accelerating recommendation im-
plementation.
SEC. 762. NTSB SAFETY RECOMMENDATIONS.
(a) IN GENERAL.—The Secretary of Transportation,
the Administrator of Research and Special Program Ad-
ministration, and the Director of the Office of Pipeline
Safety shall fully comply with section 1135 of title 49,
United States Code, to ensure timely responsiveness to Na-
tional Transportation Safety Board recommendations
about pipeline safety.
(b) PUBLIC AVAILABILITY.—The Secretary, Adminis-
trator, or Director, respectively, shall make a copy of each
recommendation on pipeline safety and response, as de-
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scribed in sections 1135 (a) and (b) of title 49, United
States Code, available to the public at reasonable cost.
(c) REPORTS TO CONGRESS.—The Secretary, Admin-
istrator, or Director, respectively, shall submit to the Con-
gress by January 1 of each year a report containing each
recommendation on pipeline safety made by the Board dur-
ing the prior year and a copy of the response to each such
recommendation.
SEC. 763. QUALIFICATIONS OF PIPELINE PERSONNEL.
(a) QUALIFICATION PLAN.—Each pipeline operator
shall make available to the Secretary of Transportation, or,
in the case of an intrastate pipeline facility operator, the
appropriate State regulatory agency, a plan that is de-
signed to enhance the qualifications of pipeline personnel
and to reduce the likelihood of accidents and injuries. The
plan shall be made available not more than 6 months after
the date of enactment of this Act, and the operator shall
revise or update the plan as appropriate.
(b) REQUIREMENTS.—The enhanced qualification plan
shall include, at a minimum, criteria to demonstrate the
ability of an individual to safely and properly perform
tasks identified under section 60102 of title 49, United
States Code. The plan shall also provide for training and
periodic reexamination of pipeline personnel qualifications
and provide for requalification as appropriate. The Sec-
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retary, or, in the case of an intrastate pipeline facility oper-
ator, the appropriate State regulatory agency, may review
and certify the plans to determine if they are sufficient to
provide a safe operating environment and shall periodically
review the plans to ensure the continuation of a safe oper-
ation. The Secretary may establish minimum standards for
pipeline personnel training and evaluation, which may in-
clude written examination, oral examination, work per-
formance history review, observation during performance
on the job, on the job training, simulations, or other forms
of assessment.
(c) REPORT TO CONGRESS.—
(1) IN GENERAL.—The Secretary shall submit a
report to the Congress evaluating the effectiveness of
operator 
qualification 
and 
training 
efforts,
including—
(A) actions taken by inspectors;
(B) recommendations made by inspectors
for changes to operator qualification and train-
ing programs; and
(C) industry and employee organization re-
sponses to those actions and recommendations.
(2) CRITERIA.—The Secretary may establish cri-
teria for use in evaluating and reporting on operator
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qualification and training for purposes of this sub-
section.
(3) DUE DATE.—The Secretary shall submit the
report required by paragraph (1) to the Congress 3
years after the date of enactment of this Act.
SEC. 764. PIPELINE INTEGRITY INSPECTION PROGRAM.
Section 60109 is amended by adding at the end the
following:
‘‘(c) INTEGRITY MANAGEMENT.—
‘‘(1) GENERAL
REQUIREMENT.—The Secretary
shall promulgate regulations requiring operators of
hazardous liquid pipelines and natural gas trans-
mission pipelines to evaluate the risks to the opera-
tor’s pipeline facilities in areas identified pursuant to
subsection (a)(1), and to adopt and implement a pro-
gram for integrity management that reduces the risk
of an incident in those areas. The regulations shall be
issued no later than 1 year after the Secretary has
issued standards pursuant to subsections (a) and (b)
of this section or by December 31, 2003, whichever is
sooner.
‘‘(2) STANDARDS
FOR
PROGRAM.—In promul-
gating regulations under this section, the Secretary
shall require an operator’s integrity management
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plan to be based on risk analysis and each plan shall
include, at a minimum—
‘‘(A) periodic assessment of the integrity of
the pipeline through methods including internal
inspection, pressure testing, direct assessment, or
other effective methods. The assessment period
shall be no less than every 5 years unless the De-
partment of Transportation Inspector General,
after consultation with the Secretary determines
there is not a sufficient capability or it is
deemed unnecessary because of more technically
appropriate monitoring or creates undue inter-
ruption of necessary supply to fulfill the require-
ments under this paragraph;
‘‘(B) clearly defined criteria for evaluating
the results of the periodic assessment methods
carried out under subparagraph (A) and proce-
dures to ensure identified problems are corrected
in a timely manner; and
‘‘(C) measures, as appropriate, that prevent
and mitigate unintended releases, such as leak
detection, integrity evaluation, restrictive flow
devices, or other measures.
‘‘(3) CRITERIA FOR PROGRAM STANDARDS.—In
deciding how frequently the integrity assessment
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methods carried out under paragraph (2)(A) must be
conducted, an operator shall take into account the po-
tential for new defects developing or previously identi-
fied structural defects caused by construction or in-
stallation, the operational characteristics of the pipe-
line, and leak history. In addition, the Secretary may
establish a minimum testing requirement for opera-
tors of pipelines to conduct internal inspections.
‘‘(4) STATE ROLE.—A State authority that has
an agreement in effect with the Secretary under sec-
tion 60106 is authorized to review and assess an op-
erator’s risk analyses and integrity management
plans required under this section for interstate pipe-
lines located in that State. The reviewing State au-
thority shall provide the Secretary with a written as-
sessment of the plans, make recommendations, as ap-
propriate, to address safety concerns not adequately
addressed in the operator’s plans, and submit docu-
mentation explaining the State-proposed plan revi-
sions. The Secretary shall carefully consider the
State’s proposals and work in consultation with the
States and operators to address safety concerns.
‘‘(5) MONITORING IMPLEMENTATION.—The Sec-
retary of Transportation shall review the risk anal-
ysis and program for integrity management required
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under this section and provide for continued moni-
toring of such plans. Not later than 2 years after the
implementation of integrity management plans under
this section, the Secretary shall complete an assess-
ment and evaluation of the effects on safety and the
environment of extending all of the requirements
mandated by the regulations described in paragraph
(1) to additional areas. The Secretary shall submit
the assessment and evaluation to Congress along with
any recommendations to improve and expand the uti-
lization of integrity management plans.
‘‘(6) OPPORTUNITY FOR LOCAL INPUT ON INTEG-
RITY MANAGEMENT.—Within 18 months after the date
of enactment of the Pipeline Safety Improvement Act
of 2002, the Secretary shall, by regulation, establish
a process for raising and addressing local safety con-
cerns about pipeline integrity and the operator’s pipe-
line integrity plan. The process shall include—
‘‘(A) a requirement that an operator of a
hazardous liquid or natural gas transmission
pipeline facility provide information about the
risk analysis and integrity management plan re-
quired under this section to local officials in a
State in which the facility is located;
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may decide a pipeline facility is hazardous if the Secretary
decides that—
‘‘(1) operation of the facility is or would be haz-
ardous to life, property, or the environment; or
‘‘(2) the facility is, or would be, constructed or
operated, or a component of the facility is, or would
be, constructed or operated with equipment, material,
or a technique that the Secretary decides is hazardous
to life, property, or the environment.’’; and
(2) by striking ‘‘is hazardous,’’ in subsection (d)
and inserting ‘‘is, or would be, hazardous,’’.
SEC. 766. PUBLIC EDUCATION, EMERGENCY PREPARED-
NESS, AND COMMUNITY RIGHT-TO-KNOW.
(a) Section 60116 is amended to read as follows:
‘‘§ 60116. Public education, emergency preparedness,
and community right-to-know
‘‘(a) PUBLIC
EDUCATION
PROGRAMS.—(1) Each
owner or operator of a gas or hazardous liquid pipeline fa-
cility shall carry out a continuing program to educate the
public on the use of a one-call notification system prior to
excavation and other damage prevention activities, the pos-
sible hazards associated with unintended releases from the
pipeline facility, the physical indications that such a re-
lease may have occurred, what steps should be taken for
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public safety in the event of a pipeline release, and how
to report such an event.
‘‘(2) Within 12 months after the date of enactment of
the Pipeline Safety Improvement Act of 2002, each owner
or operator of a gas or hazardous liquid pipeline facility
shall review its existing public education program for effec-
tiveness and modify the program as necessary. The com-
pleted program shall include activities to advise affected
municipalities, school districts, businesses, and residents of
pipeline facility locations. The completed program shall be
submitted to the Secretary or, in the case of an intrastate
pipeline facility operator, the appropriate State agency and
shall be periodically reviewed by the Secretary or, in the
case of an intrastate pipeline facility operator, the appro-
priate State agency.
‘‘(3) The Secretary may issue standards prescribing
the elements of an effective public education program. The
Secretary may also develop material for use in the program.
‘‘(b) EMERGENCY PREPAREDNESS.—
‘‘(1) OPERATOR
LIAISON.—Within 12 months
after the date of enactment of the Pipeline Safety Im-
provement Act of 2002, an operator of a gas trans-
mission or hazardous liquid pipeline facility shall
initiate and maintain liaison with the State emer-
gency response commissions, and local emergency
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planning committees in the areas of pipeline right-of-
way, established under section 301 of the Emergency
Planning and Community Right-To-Know Act of
1986 (42 U.S.C. 11001) in each State in which it op-
erates.
‘‘(2) INFORMATION.—An operator shall, upon re-
quest, make available to the State emergency response
commissions and local emergency planning commit-
tees, and shall make available to the Office of Pipeline
Safety in a standardized form for the purpose of pro-
viding the information to the public, the information
described in section 60102(d), the operator’s program
for integrity management, and information about im-
plementation of that program. The information about
the facility shall also include, at a minimum—
‘‘(A) the business name, address, telephone
number of the operator, including a 24-hour
emergency contact number;
‘‘(B) a description of the facility, including
pipe diameter, the product or products carried,
and the operating pressure;
‘‘(C) with respect to transmission pipeline
facilities, maps showing the location of the facil-
ity and, when available, any high consequence
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areas which the pipeline facility traverses or ad-
joins and abuts;
‘‘(D) a summary description of the integ-
rity measures the operator uses to assure safety
and protection for the environment; and
‘‘(E) a point of contact to respond to ques-
tions from emergency response representative.
‘‘(3) SMALLER COMMUNITIES.—In a community
without a local emergency planning committee, the
operator shall maintain liaison with the local fire,
police, and other emergency response agencies.
‘‘(4) PUBLIC ACCESS.—The Secretary shall pre-
scribe requirements for public access, as appropriate,
to this information, including a requirement that the
information be made available to the public by widely
accessible computerized database.
‘‘(c) COMMUNITY RIGHT-TO-KNOW.—Not later than 12
months after the date of enactment of the Pipeline Safety
Improvement Act of 2002, and annually thereafter, the
owner or operator of each gas transmission or hazardous
liquid pipeline facility shall provide to the governing body
of each municipality in which the pipeline facility is lo-
cated, a map identifying the location of such facility. The
map may be provided in electronic form. The Secretary
may provide technical assistance to the pipeline industry
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on developing public safety and public education program
content and best practices for program delivery, and on
evaluating the effectiveness of the programs. The Secretary
may also provide technical assistance to State and local of-
ficials in applying practices developed in these programs
to their activities to promote pipeline safety.
‘‘(d) PUBLIC AVAILABILITY OF REPORTS.—The Sec-
retary shall—
‘‘(1) make available to the public—
‘‘(A) a safety-related condition report filed
by an operator under section 60102(h);
‘‘(B) a report of a pipeline incident filed by
an operator;
‘‘(C) the results of any inspection by the Of-
fice of Pipeline Safety or a State regulatory offi-
cial; and
‘‘(D) a description of any corrective action
taken in response to a safety-related condition
reported under subparagraph (A), (B), or (C);
and
‘‘(2) prescribe requirements for public access, as
appropriate, to integrity management program infor-
mation prepared under this chapter, including re-
quirements that will ensure data accessibility to the
greatest extent feasible.’’.
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(b) 
SAFETY
CONDITION
REPORTS.—Section
60102(h)(2) is amended by striking ‘‘authorities.’’ and in-
serting ‘‘officials, including the local emergency respond-
ers.’’.
(c) CONFORMING AMENDMENT.—The chapter analysis
for chapter 601 is amended by striking the item relating
to section 60116 and inserting the following:
‘‘60116. Public education, emergency preparedness, community right-to-know.’’.
SEC. 767. PENALTIES.
(a) CIVIL PENALTIES.—Section 60122 is amended—
(1) by striking ‘‘$25,000’’ in subsection (a)(1)
and inserting ‘‘$500,000’’;
(2) by striking ‘‘$500,000’’ in subsection (a)(1)
and inserting ‘‘$1,000,000’’;
(3) by adding at the end of subsection (a)(1) the
following: ‘‘The preceding sentence does not apply to
judicial enforcement action under section 60120 or
60121.’’; and
(4) by striking subsection (b) and inserting the
following:
‘‘(b) PENALTY CONSIDERATIONS.—In determining the
amount of a civil penalty under this section—
‘‘(1) the Secretary shall consider—
‘‘(A) the nature, circumstances, and gravity
of the violation, including adverse impact on the
environment;
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‘‘(B) with respect to the violator, the degree
of culpability, any history of prior violations,
the ability to pay, any effect on ability to con-
tinue doing business; and
‘‘(C) good faith in attempting to comply;
and
‘‘(2) the Secretary may consider—
‘‘(A) the economic benefit gained from the
violation without any discount because of subse-
quent damages; and
‘‘(B) other matters that justice requires.’’.
(b) 
EXCAVATOR
DAMAGE.—Section 
60123(d) 
is
amended—
(1) by striking ‘‘knowingly and willfully’’;
(2) by inserting ‘‘knowingly and willfully’’ before
‘‘engages’’ in paragraph (1); and
(3) striking paragraph (2)(B) and inserting the
following:
‘‘(B) a pipeline facility, is aware of dam-
age, and does not report the damage promptly to
the operator of the pipeline facility and to other
appropriate authorities; or’’.
(c) CIVIL ACTIONS.—Section 60120(a)(1) is amended
to read as follows:
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‘‘(1) On the request of the Secretary of Transportation,
the Attorney General may bring a civil action in an appro-
priate district court of the United States to enforce this
chapter, including section 60112 of this chapter, or a regu-
lation prescribed or order issued under this chapter. The
court may award appropriate relief, including a temporary
or permanent injunction, punitive damages, and assessment
of civil penalties considering the same factors as prescribed
for the Secretary in an administrative case under section
60122.’’.
SEC. 768. STATE OVERSIGHT ROLE.
(a) STATE AGREEMENTS WITH CERTIFICATION.—Sec-
tion 60106 is amended—
(1) by striking ‘‘GENERAL AUTHORITY.—’’ in
subsection (a) and inserting ‘‘AGREEMENTS WITHOUT
CERTIFICATION.—’’;
(2) by redesignating subsections (b), (c), and (d)
as subsections (c), (d), and (e); and
(3) by inserting after subsection (a) the fol-
lowing:
‘‘(b) AGREEMENTS WITH CERTIFICATION.—
‘‘(1) IN GENERAL.—If the Secretary accepts a
certification under section 60105 of this title and
makes the determination required under this sub-
section, the Secretary may make an agreement with
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a State authority authorizing it to participate in the
oversight of interstate pipeline transportation. Each
such agreement shall include a plan for the State au-
thority to participate in special investigations involv-
ing incidents or new construction and allow the State
authority to participate in other activities overseeing
interstate pipeline transportation or to assume addi-
tional inspection or investigatory duties. Nothing in
this section modifies section 60104(c) or authorizes
the Secretary to delegate the enforcement of safety
standards prescribed under this chapter to a State
authority.
‘‘(2) DETERMINATIONS
REQUIRED.—The Sec-
retary may not enter into an agreement under this
subsection, unless the Secretary determines that—
‘‘(A) the agreement allowing participation
of the State authority is consistent with the Sec-
retary’s program for inspection and consistent
with the safety policies and provisions provided
under this chapter;
‘‘(B) the interstate participation agreement
would not adversely affect the oversight respon-
sibilities of intrastate pipeline transportation by
the State authority;
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‘‘(C) the State is carrying out a program
demonstrated to promote preparedness and risk
prevention activities that enable communities to
live safely with pipelines;
‘‘(D) the State meets the minimum stand-
ards for State one-call notification set forth in
chapter 61; and
‘‘(E) the actions planned under the agree-
ment would not impede interstate commerce or
jeopardize public safety.
‘‘(3) EXISTING
AGREEMENTS.—If requested by
the State authority, the Secretary shall authorize a
State authority which had an interstate agreement in
effect after January 1999, to oversee interstate pipe-
line transportation pursuant to the terms of that
agreement until the Secretary determines that the
State meets the requirements of paragraph (2) and
executes a new agreement, or until December 31,
2003, whichever is sooner. Nothing in this paragraph
shall prevent the Secretary, after affording the State
notice, hearing, and an opportunity to correct any al-
leged deficiencies, from terminating an agreement
that was in effect before enactment of the Pipeline
Safety Improvement Act of 2002 if—
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‘‘(A) the State authority fails to comply
with the terms of the agreement;
‘‘(B) implementation of the agreement has
resulted in a gap in the oversight responsibilities
of intrastate pipeline transportation by the State
authority; or
‘‘(C) continued participation by the State
authority in the oversight of interstate pipeline
transportation has had an adverse impact on
pipeline safety.’’.
(b) ENDING AGREEMENTS.—Subsection (e) of section
60106, as redesignated by subsection (a), is amended to read
as follows:
‘‘(e) ENDING AGREEMENTS.—
‘‘(1) PERMISSIVE TERMINATION.—The Secretary
may end an agreement under this section when the
Secretary finds that the State authority has not com-
plied with any provision of the agreement.
‘‘(2) MANDATORY
TERMINATION
OF
AGREE-
MENT.—The Secretary shall end an agreement for the
oversight of interstate pipeline transportation if the
Secretary finds that—
‘‘(A) implementation of such agreement has
resulted in a gap in the oversight responsibilities
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of intrastate pipeline transportation by the State
authority;
‘‘(B) the State actions under the agreement
have failed to meet the requirements under sub-
section (b); or
‘‘(C) continued participation by the State
authority in the oversight of interstate pipeline
transportation would not promote pipeline safe-
ty.
‘‘(3) PROCEDURAL
REQUIREMENTS.—The Sec-
retary shall give the notice and an opportunity for a
hearing to a State authority before ending an agree-
ment under this section. The Secretary may provide
a State an opportunity to correct any deficiencies be-
fore ending an agreement. The finding and decision
to end the agreement shall be published in the Federal
Register and may not become effective for at least 15
days after the date of publication unless the Secretary
finds that continuation of an agreement poses an im-
minent hazard.’’.
SEC. 769. IMPROVED DATA AND DATA AVAILABILITY.
(a) IN GENERAL.—Within 12 months after the date
of enactment of this Act, the Secretary shall develop and
implement a comprehensive plan for the collection and use
of gas and hazardous liquid pipeline data to revise the caus-
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al categories on the incident report forms to eliminate over-
lapping and confusing categories and include subcategories.
The plan shall include components to provide the capability
to perform sound incident trend analysis and evaluations
of pipeline operator performance using normalized accident
data.
(b) REPORT OF RELEASES EXCEEDING 5 GALLONS.—
Section 60117(b) is amended—
(1) by inserting ‘‘(1)’’ before ‘‘To’’;
(2) redesignating paragraphs (1) and (2) as sub-
paragraphs (A) and (B);
(3) inserting before the last sentence the fol-
lowing:
‘‘(2) A person owning or operating a hazardous liquid
pipeline facility shall report to the Secretary each release
to the environment greater than 5 gallons of the hazardous
liquid or carbon dioxide transported. This section applies
to releases from pipeline facilities regulated under this
chapter. A report must include the location of the release,
fatalities and personal injuries, type of product, amount
of product release, cause or causes of the release, extent of
damage to property and the environment, and the response
undertaken to clean up the release.
‘‘(3) During the course of an incident investigation,
a person owning or operating a pipeline facility shall make
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records, reports, and information required under subsection
(a) of this section or other reasonably described records, re-
ports, and information relevant to the incident investiga-
tion, available to the Secretary within the time limits pre-
scribed in a written request.’’; and
(4) indenting the first word of the last sentence
and inserting ‘‘(4)’’ before ‘‘The Secretary’’ in that
sentence.
(c) PENALTY AUTHORITIES.—(1) Section 60122(a) is
amended 
by 
striking 
‘‘60114(c)’’ 
and 
inserting
‘‘60117(b)(3)’’.
(2) Section 60123(a) is amended by striking
‘‘60114(c),’’ and inserting ‘‘60117(b)(3),’’.
(d) ESTABLISHMENT
OF NATIONAL DEPOSITORY.—
Section 60117 is amended by adding at the end the fol-
lowing:
‘‘(l) NATIONAL DEPOSITORY.—The Secretary shall es-
tablish a national depository of data on events and condi-
tions, including spill histories and corrective actions for
specific incidents, that can be used to evaluate the risk of,
and to prevent, pipeline failures and releases. The Secretary
shall administer the program through the Bureau of Trans-
portation Statistics, in cooperation with the Research and
Special Programs Administration, and shall make such in-
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formation available for use by State and local planning and
emergency response authorities and the public.’’.
SEC. 770. RESEARCH AND DEVELOPMENT.
(a) INNOVATIVE TECHNOLOGY DEVELOPMENT.—
(1) IN GENERAL.—As part of the Department of
Transportation’s research and development program,
the Secretary of Transportation shall direct research
attention 
to 
the 
development 
of 
alternative
technologies—
(A) to expand the capabilities of internal
inspection devices to identify and accurately
measure defects and anomalies;
(B) to inspect pipelines that cannot accom-
modate internal inspection devices available on
the date of enactment;
(C) to develop innovative techniques meas-
uring the structural integrity of pipelines;
(D) to improve the capability, reliability,
and practicality of external leak detection de-
vices; and
(E) to develop and improve alternative tech-
nologies to identify and monitor outside force
damage to pipelines.
(2) COOPERATIVE.—The Secretary may partici-
pate in additional technological development through
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cooperative agreements with trade associations, aca-
demic institutions, or other qualified organizations.
(b) PIPELINE SAFETY AND RELIABILITY RESEARCH
AND DEVELOPMENT.—
(1) IN GENERAL.—The Secretary of Transpor-
tation, in coordination with the Secretary of Energy,
shall develop and implement an accelerated coopera-
tive program of research and development to ensure
the integrity of natural gas and hazardous liquid
pipelines. This research and development program—
(A) shall include materials inspection tech-
niques, risk assessment methodology, and infor-
mation systems surety; and
(B) shall complement, and not replace, the
research program of the Department of Energy
addressing natural gas pipeline issues existing
on the date of enactment of this Act.
(2) PURPOSE.—The purpose of the cooperative
research program shall be to promote pipeline safety
research and development to—
(A) ensure long-term safety, reliability and
service life for existing pipelines;
(B) expand capabilities of internal inspec-
tion devices to identify and accurately measure
defects and anomalies;
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(C) develop inspection techniques for pipe-
lines that cannot accommodate the internal in-
spection devices available on the date of enact-
ment;
(D) develop innovative techniques to meas-
ure the structural integrity of pipelines to pre-
vent pipeline failures;
(E) develop improved materials and coat-
ings for use in pipelines;
(F) improve the capability, reliability, and
practicality of external leak detection devices;
(G) identify underground environments that
might lead to shortened service life;
(H) enhance safety in pipeline siting and
land use;
(I) minimize the environmental impact of
pipelines;
(J) demonstrate technologies that improve
pipeline safety, reliability, and integrity;
(K) provide risk assessment tools for opti-
mizing risk mitigation strategies; and
(L) provide highly secure information sys-
tems for controlling the operation of pipelines.
(3) AREAS.—In carrying out this subsection, the
Secretary of Transportation, in coordination with the
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Secretary of Energy, shall consider research and de-
velopment on natural gas, crude oil and petroleum
product pipelines for—
(A) early crack, defect, and damage detec-
tion, including real-time damage monitoring;
(B) automated internal pipeline inspection
sensor systems;
(C) land use guidance and set back manage-
ment along pipeline rights-of-way for commu-
nities;
(D) internal corrosion control;
(E) corrosion-resistant coatings;
(F) improved cathodic protection;
(G) inspection techniques where internal in-
spection is not feasible, including measurement
of structural integrity;
(H) external leak detection, including port-
able real-time video imaging technology, and the
advancement of computerized control center leak
detection systems utilizing real-time remote field
data input;
(I) longer life, high strength, non-corrosive
pipeline materials;
(J) assessing the remaining strength of ex-
isting pipes;
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(K) risk and reliability analysis models, to
be used to identify safety improvements that
could be realized in the near term resulting from
analysis of data obtained from a pipeline per-
formance tracking initiative;
(L) identification, monitoring, and preven-
tion of outside force damage, including satellite
surveillance; and
(M) any other areas necessary to ensuring
the public safety and protecting the environment.
(4) POINTS OF CONTACT.—
(A) IN GENERAL.—To coordinate and im-
plement the research and development programs
and activities authorized under this subsection—
(i) the Secretary of Transportation
shall designate, as the point of contact for
the Department of Transportation, an offi-
cer of the Department of Transportation
who has been appointed by the President
and confirmed by the Senate; and
(ii) the Secretary of Energy shall des-
ignate, as the point of contact for the De-
partment of Energy, an officer of the De-
partment of Energy who has been appointed
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by the President and confirmed by the Sen-
ate.
(B) DUTIES.—
(i) The point of contact for the Depart-
ment of Transportation shall have the pri-
mary responsibility for coordinating and
overseeing the implementation of the re-
search, development, and demonstration
program plan under paragraphs (5) and
(6).
(ii) The points of contact shall jointly
assist in arranging cooperative agreements
for research, development and demonstra-
tion involving their respective Departments,
national laboratories, universities, and in-
dustry research organizations.
(5) RESEARCH
AND
DEVELOPMENT
PROGRAM
PLAN.—Within 240 days after the date of enactment
of this Act, the Secretary of Transportation, in co-
ordination with the Secretary of Energy and the
Pipeline Integrity Technical Advisory Committee,
shall prepare and submit to the Congress a 5-year
program plan to guide activities under this sub-
section. In preparing the program plan, the Secretary
shall consult with appropriate representatives of the
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natural gas, crude oil, and petroleum product pipe-
line industries to select and prioritize appropriate
project proposals. The Secretary may also seek the ad-
vice of utilities, manufacturers, institutions of higher
learning, Federal agencies, the pipeline research insti-
tutions, national laboratories, State pipeline safety
officials, environmental organizations, pipeline safety
advocates, and professional and technical societies.
(6) IMPLEMENTATION.—The Secretary of Trans-
portation shall have primary responsibility for ensur-
ing the 5-year plan provided for in paragraph (5) is
implemented as intended. In carrying out the re-
search, development, and demonstration activities
under this paragraph, the Secretary of Transpor-
tation and the Secretary of Energy may use, to the
extent authorized under applicable provisions of law,
contracts, cooperative agreements, cooperative research
and development agreements under the Stevenson-
Wydler Technology Innovation Act of 1980 (15 U.S.C.
3701 et seq.), grants, joint ventures, other trans-
actions, and any other form of agreement available to
the Secretary consistent with the recommendations of
the Advisory Committee.
(7) REPORTS TO CONGRESS.—The Secretary of
Transportation shall report to the Congress annually
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as to the status and results to date of the implementa-
tion of the research and development program plan.
The report shall include the activities of the Depart-
ments of Transportation and Energy, the national
laboratories, universities, and any other research or-
ganizations, including industry research organiza-
tions.
SEC. 771. PIPELINE INTEGRITY TECHNICAL ADVISORY COM-
MITTEE.
(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall enter into appropriate arrangements with the
National Academy of Sciences to establish and manage the
Pipeline Integrity Technical Advisory Committee for the
purpose of advising the Secretary of Transportation and
the Secretary of Energy on the development and implemen-
tation of the 5-year research, development, and demonstra-
tion program plan under section 770(b)(5). The Advisory
Committee shall have an ongoing role in evaluating the
progress and results of the research, development, and dem-
onstration carried out under that section.
(b) MEMBERSHIP.—The National Academy of Sciences
shall appoint the members of the Pipeline Integrity Tech-
nical Advisory Committee after consultation with the Sec-
retary of Transportation and the Secretary of Energy.
Members appointed to the Advisory Committee should have
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the necessary qualifications to provide technical contribu-
tions to the purposes of the Advisory Committee.
SEC. 772. AUTHORIZATION OF APPROPRIATIONS.
(a) 
GAS
AND
HAZARDOUS
LIQUIDS.—Section
60125(a) is amended to read as follows:
‘‘(a) GAS AND HAZARDOUS LIQUID.—To carry out
this chapter and other pipeline-related damage prevention
activities of this title (except for section 60107), there are
authorized to be appropriated to the Department of Trans-
portation—$30,000,000 for each of the fiscal years 2003,
2004, and 2005 of which $23,000,000 is to be derived from
user fees for fiscal years 2003, 2004, and 2005 collected
under section 60301 of this title.’’.
(b) GRANTS TO STATES.—Section 60125(c) is amended
to read as follows:
‘‘(c) STATE GRANTS.—Not more than the following
amounts may be appropriated to the Secretary to carry out
section 60107—$20,000,000 for the fiscal years 2003, 2004,
and 2005 of which $18,000,000 is to be derived from user
fees for fiscal years 2003, 2004, and 2005 collected under
section 60301 of this title.’’.
(c) OIL SPILLS.—Section 60125 is amended by redes-
ignating subsections (d), (e), and (f) as subsections (e), (f),
(g) and inserting after subsection (c) the following:
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‘‘(d) OIL SPILL LIABILITY TRUST FUND.—Of the
amounts available in the Oil Spill Liability Trust Fund,
$8,000,000 shall be transferred to the Secretary of Trans-
portation, as provided in appropriation Acts, to carry out
programs authorized in this title for each of fiscal years
2003, 2004, and 2005.’’.
(d) PIPELINE INTEGRITY PROGRAM.—(1) There are
authorized to be appropriated to the Secretary of Transpor-
tation for carrying out sections 770(b) and 771 of this sub-
title $3,000,000, to be derived from user fees under section
60301 of title 49, United States Code, for each of the fiscal
years 2003 through 2007.
(2) Of the amounts available in the Oil Spill Liability
Trust Fund established by section 9509 of the Internal Rev-
enue Code of 1986 (26 U.S.C. 9509), $3,000,000 shall be
transferred to the Secretary of Transportation, as provided
in appropriation Acts, to carry out programs for detection,
prevention and mitigation of oil spills under sections 770(b)
and 771 of this subtitle for each of the fiscal years 2003
through 2007.
(3) There are authorized to be appropriated to the Sec-
retary of Energy for carrying out sections 770(b) and 771
of this subtitle such sums as may be necessary for each of
the fiscal years 2003 through 2007.
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SEC. 773. OPERATOR ASSISTANCE IN INVESTIGATIONS.
(a) IN GENERAL.—If the Department of Transpor-
tation or the National Transportation Safety Board inves-
tigate an accident, the operator involved shall make avail-
able to the representative of the Department or the Board
all records and information that in any way pertain to
the accident (including integrity management plans and
test results), and shall afford all reasonable assistance in
the investigation of the accident.
(b) CORRECTIVE ACTION ORDERS.—Section 60112(d)
is amended—
(1) by inserting ‘‘(1)’’ after ‘‘CORRECTIVE AC-
TION ORDERS.—’’; and
(2) by adding at the end the following:
‘‘(2) If, in the case of a corrective action order issued
following an accident, the Secretary determines that the ac-
tions of an employee carrying out an activity regulated
under this chapter, including duties under section 60102(a),
may have contributed substantially to the cause of the acci-
dent, the Secretary shall direct the operator to relieve the
employee from performing those activities, reassign the em-
ployee, or place the employee on leave until the earlier of
the date on which—
‘‘(A) the Secretary determines, after notice and
an opportunity for a hearing, that the employee’s per-
formance of duty in carrying out the activity did not
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contribute substantially to the cause of the accident;
or
‘‘(B) the Secretary determines the employee has
been re-qualified or re-trained as provided for in sec-
tion 763 of the Pipeline Safety Improvement Act of
2002 and can safely perform those activities.
‘‘(3) Action taken by an operator under paragraph (2)
shall be in accordance with the terms and conditions of any
applicable collective bargaining agreement to the extent it
is not inconsistent with the requirements of this section.’’.
SEC. 774. PROTECTION OF EMPLOYEES PROVIDING PIPE-
LINE SAFETY INFORMATION.
(a) IN GENERAL.—Chapter 601 is amended by adding
at the end the following:
‘‘§ 60129. Protection of employees providing pipeline
safety information
‘‘(a) DISCRIMINATION AGAINST PIPELINE EMPLOY-
EES.—No pipeline operator or contractor or subcontractor
of a pipeline may discharge an employee or otherwise dis-
criminate against an employee with respect to compensa-
tion, terms, conditions, or privileges of employment because
the employee (or any person acting pursuant to a request
of the employee)—
‘‘(1) provided, caused to be provided, or is about
to provide (with any knowledge of the employer) or
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cause to be provided to the employer or Federal Gov-
ernment information relating to any violation or al-
leged violation of any order, regulation, or standard
of the Research and Special Programs Administration
or any other provision of Federal law relating to
pipeline safety under this chapter or any other law
of the United States;
‘‘(2) has filed, caused to be filed, or is about to
file (with any knowledge of the employer) or cause to
be filed a proceeding relating to any violation or al-
leged violation of any order, regulation, or standard
of the Administration or any other provision of Fed-
eral law relating to pipeline safety under this chapter
or any other law of the United States;
‘‘(3) testified or is about to testify in such a pro-
ceeding; or
‘‘(4) assisted or participated or is about to assist
or participate in such a proceeding.
‘‘(b) DEPARTMENT
OF LABOR COMPLAINT PROCE-
DURE.—
‘‘(1) FILING AND NOTIFICATION.—A person who
believes that he or she has been discharged or other-
wise discriminated against by any person in viola-
tion of subsection (a) may, not later than 90 days
after the date on which such violation occurs, file (or
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have any person file on his or her behalf) a complaint
with the Secretary of Labor alleging such discharge or
discrimination. Upon receipt of such a complaint, the
Secretary of Labor shall notify, in writing, the person
named in the complaint and the Administrator of the
Research and Special Programs Administration of the
filing of the complaint, of the allegations contained in
the complaint, of the substance of evidence supporting
the complaint, and of the opportunities that will be
afforded to such person under paragraph (2).
‘‘(2) INVESTIGATION; PRELIMINARY ORDER.—
‘‘(A) IN GENERAL.—Not later than 60 days
after the date of receipt of a complaint filed
under paragraph (1) and after affording the per-
son named in the complaint an opportunity to
submit to the Secretary of Labor a written re-
sponse to the complaint and an opportunity to
meet with a representative of the Secretary to
present statements from witnesses, the Secretary
of Labor shall conduct an investigation and de-
termine whether there is reasonable cause to be-
lieve that the complaint has merit and notify in
writing the complainant and the person alleged
to have committed a violation of subsection (a)
of the Secretary’s findings. If the Secretary of
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Labor concludes that there is reasonable cause to
believe that a violation of subsection (a) has oc-
curred, the Secretary shall accompany the Sec-
retary’s findings with a preliminary order pro-
viding the relief prescribed by paragraph (3)(B).
Not later than 30 days after the date of notifica-
tion of findings under this paragraph, either the
person alleged to have committed the violation or
the complainant may file objections to the find-
ings or preliminary order, or both, and request
a hearing on the record. The filing of such objec-
tions shall not operate to stay any reinstatement
remedy contained in the preliminary order. Such
hearings shall be conducted expeditiously. If a
hearing is not requested in such 30-day period,
the preliminary order shall be deemed a final
order that is not subject to judicial review.
‘‘(B) REQUIREMENTS.—
‘‘(i) REQUIRED
SHOWING
BY
COM-
PLAINANT.—The Secretary of Labor shall
dismiss a complaint filed under this sub-
section and shall not conduct an investiga-
tion otherwise required under subparagraph
(A) unless the complainant makes a prima
facie showing that any behavior described
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in paragraphs (1) through (4) of subsection
(a) was a contributing factor in the unfa-
vorable personnel action alleged in the com-
plaint.
‘‘(ii) SHOWING
BY
EMPLOYER.—Not-
withstanding a finding by the Secretary
that the complainant has made the showing
required under clause (i), no investigation
otherwise required under subparagraph (A)
shall be conducted if the employer dem-
onstrates, by clear and convincing evidence,
that the employer would have taken the
same unfavorable personnel action in the
absence of that behavior.
‘‘(iii) CRITERIA FOR DETERMINATION
BY SECRETARY.—The Secretary may deter-
mine that a violation of subsection (a) has
occurred only if the complainant dem-
onstrates that any behavior described in
paragraphs (1) through (4) of subsection (a)
was a contributing factor in the unfavorable
personnel action alleged in the complaint.
‘‘(iv) PROHIBITION.—Relief may not
be ordered under subparagraph (A) if the
employer demonstrates by clear and con-
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vincing evidence that the employer would
have taken the same unfavorable personnel
action in the absence of that behavior.
‘‘(3) FINAL ORDER.—
‘‘(A) DEADLINE
FOR
ISSUANCE; SETTLE-
MENT AGREEMENTS.—Not later than 120 days
after the date of conclusion of a hearing under
paragraph (2), the Secretary of Labor shall issue
a final order providing the relief prescribed by
this paragraph or denying the complaint. At any
time before issuance of a final order, a pro-
ceeding under this subsection may be terminated
on the basis of a settlement agreement entered
into by the Secretary of Labor, the complainant,
and the person alleged to have committed the
violation.
‘‘(B) REMEDY.—If, in response to a com-
plaint filed under paragraph (1), the Secretary
of Labor determines that a violation of sub-
section (a) has occurred, the Secretary of Labor
shall order the person who committed such viola-
tion to—
‘‘(i) take affirmative action to abate
the violation;
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‘‘(ii) reinstate the complainant to his
or her former position together with the
compensation (including back pay) and re-
store the terms, conditions, and privileges
associated with his or her employment; and
‘‘(iii) provide compensatory damages
to the complainant.
If such an order is issued under this paragraph,
the Secretary of Labor, at the request of the com-
plainant, shall assess against the person whom
the order is issued a sum equal to the aggregate
amount of all costs and expenses (including at-
torney’s and expert witness fees) reasonably in-
curred, as determined by the Secretary of Labor,
by the complainant for, or in connection with,
the bringing the complaint upon which the order
was issued.
‘‘(C) FRIVOLOUS COMPLAINTS.—If the Sec-
retary of Labor finds that a complaint under
paragraph (1) is frivolous or has been brought in
bad faith, the Secretary of Labor may award to
the prevailing employer a reasonable attorney’s
fee not exceeding $1,000.
‘‘(4) REVIEW.—
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‘‘(A) APPEAL TO COURT OF APPEALS.—Any
person adversely affected or aggrieved by an
order issued under paragraph (3) may obtain re-
view of the order in the United States Court of
Appeals for the circuit in which the violation,
with respect to which the order was issued, alleg-
edly occurred or the circuit in which the com-
plainant resided on the date of such violation.
The petition for review must be filed not later
than 60 days after the date of issuance of the
final order of the Secretary of Labor. Review
shall conform to chapter 7 of title 5, United
States Code. The commencement of proceedings
under this subparagraph shall not, unless or-
dered by the court, operate as a stay of the order.
‘‘(B) LIMITATION
ON
COLLATERAL
AT-
TACK.—An order of the Secretary of Labor with
respect to which review could have been obtained
under subparagraph (A) shall not be subject to
judicial review in any criminal or other civil
proceeding.
‘‘(5) ENFORCEMENT OF ORDER BY SECRETARY
OF LABOR.—Whenever any person has failed to com-
ply with an order issued under paragraph (3), the
Secretary of Labor may file a civil action in the
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United States district court for the district in which
the violation was found to occur to enforce such order.
In actions brought under this paragraph, the district
courts shall have jurisdiction to grant all appropriate
relief, including, but not to be limited to, injunctive
relief and compensatory damages.
‘‘(6) ENFORCEMENT OF ORDER BY PARTIES.—
‘‘(A) COMMENCEMENT OF ACTION.—A per-
son on whose behalf an order was issued under
paragraph (3) may commence a civil action
against the person to whom such order was
issued to require compliance with such order.
The appropriate United States district court
shall have jurisdiction, without regard to the
amount in controversy or the citizenship of the
parties, to enforce such order.
‘‘(B) ATTORNEY
FEES.—The court, in
issuing any final order under this paragraph,
may award costs of litigation (including reason-
able attorney and expert witness fees) to any
party whenever the court determines such award
costs is appropriate.
‘‘(c) MANDAMUS.—Any nondiscretionary duty im-
posed by this section shall be enforceable in a mandamus
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proceeding brought under section 1361 of title 28, United
States Code.
‘‘(d) NONAPPLICABILITY
TO
DELIBERATE
VIOLA-
TIONS.—Subsection (a) shall not apply with respect to an
employee of a pipeline, contractor or subcontractor who,
acting without direction from the pipeline contractor or
subcontractor (or such person’s agent), deliberately causes
a violation of any requirement relating to pipeline safety
under this chapter or any other law of the United States.
‘‘(e) CONTRACTOR DEFINED.—In this section, the term
‘contractor’ means a company that performs safety-sensitive
functions by contract for a pipeline.’’.
(b) CIVIL PENALTY.—Section 60122(a) is amended by
adding at the end the following:
‘‘(3) A person violating section 60129, or an order
issued thereunder, is liable to the Government for a civil
penalty of not more than $1,000 for each violation. The
penalties provided by paragraph (1) do not apply to a vio-
lation of section 60129 or an order issued thereunder.’’.
(c) CONFORMING AMENDMENT.—The chapter analysis
for chapter 601 is amended by adding at the end the fol-
lowing:
‘‘60129. Protection of employees providing pipeline safety information.’’.
SEC. 775. STATE PIPELINE SAFETY ADVISORY COMMITTEES.
Within 90 days after receiving recommendations for
improvements to pipeline safety from an advisory com-
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mittee appointed by the Governor of any State, the Sec-
retary of Transportation shall respond in writing to the
committee setting forth what action, if any, the Secretary
will take on those recommendations and the Secretary’s rea-
sons for acting or not acting upon any of the recommenda-
tions.
SEC. 776. FINES AND PENALTIES.
The Inspector General of the Department of Transpor-
tation shall conduct an analysis of the Department’s assess-
ment of fines and penalties on gas transmission and haz-
ardous liquid pipelines, including the cost of corrective ac-
tions required by the Department in lieu of fines, and, no
later than 6 months after the date of enactment of this Act,
shall provide a report to the Senate Committee on Com-
merce, Science, and Transportation and the House Com-
mittee on Transportation and Infrastructure on any find-
ings and recommendations for actions by the Secretary or
Congress to ensure the fines assessed are an effective deter-
rent for reducing safety risks.
SEC. 777. STUDY OF RIGHTS-OF-WAY.
The Secretary of Transportation is authorized to con-
duct a study on how best to preserve environmental re-
sources in conjunction with maintaining pipeline rights-
of-way. The study shall recognize pipeline operators’ regu-
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latory obligations to maintain rights-of-way and to protect
public safety.
SEC. 778. STUDY OF NATURAL GAS RESERVE.
(a) FINDINGS.—Congress finds that:
(1) In the last few months, natural gas prices
across the country have tripled.
(2) In California, natural gas prices have in-
creased twenty-fold, from $3 per million British ther-
mal units to nearly $60 per million British thermal
units.
(3) One of the major causes of these price in-
creases is a lack of supply, including a lack of nat-
ural gas reserves.
(4) The lack of a reserve was compounded by the
rupture of an El Paso Natural Gas Company pipe-
line in Carlsbad, New Mexico on August 1, 2000.
(5) Improving pipeline safety will help prevent
similar accidents that interrupt the supply of natural
gas and will help save lives.
(6) It is also necessary to find solutions for the
lack of natural gas reserves that could be used during
emergencies.
(b) 
STUDY
BY
THE
NATIONAL
ACADEMY
OF
SCIENCES.—The Secretary of Energy shall request the Na-
tional Academy of Sciences to—
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(1) conduct a study to—
(A) determine the causes of recent increases
in the price of natural gas, including whether
the increases have been caused by problems with
the supply of natural gas or by problems with
the natural gas transmission system;
(B) identify any Federal or State policies
that may have contributed to the price increases;
and
(C) determine what Federal action would be
necessary to improve the reserve supply of nat-
ural gas for use in situations of natural gas
shortages and price increases, including deter-
mining the feasibility and advisability of a Fed-
eral strategic natural gas reserve system; and
(2) not later than 60 days after the date of en-
actment of this Act, submit to Congress a report on
the results of the study.
SEC. 779. STUDY AND REPORT ON NATURAL GAS PIPELINE
AND STORAGE FACILITIES IN NEW ENGLAND.
(a) STUDY.—The Federal Energy Regulatory Commis-
sion, in consultation with the Department of Energy, shall
conduct a study on the natural gas pipeline transmission
network in New England and natural gas storage facilities
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associated with that network. In carrying out the study,
the Commission shall consider—
(1) the ability of natural gas pipeline and stor-
age facilities in New England to meet current and
projected demand by gas-fired power generation
plants and other consumers;
(2) capacity constraints during unusual weather
periods;
(3) potential constraint points in regional, inter-
state, and international pipeline capacity serving
New England; and
(4) the quality and efficiency of the Federal envi-
ronmental review and permitting process for natural
gas pipelines.
(b) REPORT.—Not later than 120 days after the date
of the enactment of this Act, the Federal Energy Regulatory
Commission shall prepare and submit to the Senate Com-
mittee on Energy and Natural Resources and the appro-
priate committee of the House of Representatives a report
containing the results of the study conducted under sub-
section (a), including recommendations for addressing po-
tential natural gas transmission and storage capacity prob-
lems in New England.
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PART III—PIPELINE SECURITY SENSITIVE
INFORMATION
SEC. 781. MEETING COMMUNITY RIGHT TO KNOW WITHOUT
SECURITY RISKS.
Section 60117 is amended by adding at the end the
following:
‘‘(l) WITHHOLDING CERTAIN INFORMATION.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this chapter requiring the Secretary to
provide information obtained by the Secretary or an
officer, employee, or agent in carrying out this chap-
ter to State or local government officials, the public,
or any other person, the Secretary shall withhold such
information if it is information that is described in
section 552(b)(1)(A) of title 5, United States Code.
‘‘(2) CONDITIONAL
RELEASE.—Notwithstanding
paragraph (1), upon the receipt of assurances satis-
factory to the Secretary that the information will be
handled appropriately, the Secretary may provide in-
formation permitted to be withheld under that
paragraph—
‘‘(A) to the owner or operator of the affected
pipeline system;
‘‘(B) to an officer, employee or agent of a
Federal, State, tribal, or local government, in-
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cluding a volunteer fire department, concerned
with carrying out this chapter, with protecting
the facilities, with protecting public safety, or
with national security issues;
‘‘(C) in an administrative or judicial pro-
ceeding brought under this chapter or an admin-
istrative or judicial proceeding that addresses
terrorist actions or threats of such actions; or
‘‘(D) to such other persons as the Secretary
determines necessary to protect public safety and
security.
‘‘(3) REPORT
TO
CONGRESS.—The Secretary
shall provide an annual report to the Congress, in ap-
propriate form as determined by the Secretary, con-
taining a summary of determinations made by the
Secretary during the preceding year to withhold in-
formation from release under paragraph (1).’’.
SEC. 782. TECHNICAL ASSISTANCE FOR SECURITY OF PIPE-
LINE FACILITIES.
The Secretary of Transportation may provide tech-
nical assistance to an operator of a pipeline facility or to
State, tribal, or local officials to prevent or respond to acts
of terrorism that may impact the pipeline facility,
including—
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(1) actions by the Secretary that support the use
of National Guard or State or Federal personnel to
provide additional security for a pipeline facility at
risk of terrorist attack or in response to such an at-
tack;
(2) use of resources available to the Secretary to
develop and implement security measures for a pipe-
line facility;
(3) identification of security issues with respect
to the operation of a pipeline facility; and
(4) the provision of information and guidance on
security practices that prevent damage to pipeline fa-
cilities from terrorist attacks.
SEC. 783. CRIMINAL PENALTIES FOR DAMAGING OR DE-
STROYING A FACILITY.
Section 60123(b) of title 49, United States Code, is
amended—
(1) by striking ‘‘or’’ after ‘‘gas pipeline facility’’
and inserting a comma; and
(2) by inserting after ‘‘liquid pipeline facility’’
the following: ‘‘, or either an intrastate gas pipeline
facility or an intrastate hazardous liquid pipeline fa-
cility that is used in interstate or foreign commerce
or in any activity affecting interstate or foreign com-
merce’’.
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DIVISION C—DIVERSIFYING EN-
ERGY DEMAND AND IMPROV-
ING EFFICIENCY
TITLE VIII—FUELS AND
VEHICLES
Subtitle A—CAFE Standards, Alter-
native 
Fuels, 
and 
Advanced
Technology
SEC. 801. INCREASED FUEL ECONOMY STANDARDS.
(a) REQUIREMENT FOR NEW REGULATIONS.—
(1) IN GENERAL.—The Secretary of Transpor-
tation shall issue, under section 32902 of title 49,
United States Code, new regulations setting forth in-
creased average fuel economy standards for auto-
mobiles that are determined on the basis of the max-
imum feasible average fuel economy levels for the
automobiles, taking into consideration the matters set
forth in subsection (f) of such section.
(2) TIME FOR ISSUING REGULATIONS.—
(A) NON-PASSENGER
AUTOMOBILES.—For
non-passenger automobiles, the Secretary of
Transportation shall issue the final regulations
not later than 15 months after the date of the en-
actment of this Act.
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(B) PASSENGER AUTOMOBILES.—For pas-
senger automobiles, the Secretary of Transpor-
tation shall issue—
(i) the proposed regulations not later
than 180 days after the date of the enact-
ment of this Act; and
(ii) the final regulations not later than
2 years after that date.
(b) PHASED INCREASES.—The regulations issued pur-
suant to subsection (a) shall specify standards that take ef-
fect successively over several vehicle model years not exceed-
ing 15 vehicle model years.
(c) CLARIFICATION OF AUTHORITY TO AMEND PAS-
SENGER AUTOMOBILE STANDARD.—Section 32902(b) of
title 49, United States Code, is amended by inserting before
the period at the end the following: ‘‘or such other number
as the Secretary prescribes under subsection (c)’’.
(d) ENVIRONMENTAL
ASSESSMENT.—When issuing
final regulations setting forth increased average fuel econ-
omy standards under this section, the Secretary of Trans-
portation shall also issue an environmental assessment of
the effects of the implementation of the increased standards
on the environment under the National Environmental Pol-
icy Act of 1969 (42 U.S.C. 4321 et seq.).
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(e) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Department of Trans-
portation for fiscal year 2003, to remain available until
expended, $2,000,000 to carry out this section.
SEC. 802. EXPEDITED PROCEDURES FOR CONGRESSIONAL
INCREASE IN FUEL ECONOMY STANDARDS.
(a) CONDITION FOR APPLICABILITY.—If the Secretary
of Transportation fails to issue final regulations with re-
spect to non-passenger automobiles under section 801, or
fails to issue final regulations with respect to passenger
automobiles under such section, on or before the date by
which such final regulations are required by such section
to be issued, respectively, then this section shall apply with
respect to a bill described in subsection (b).
(b) BILL.—A bill referred to in this subsection is a
bill that satisfies the following requirements:
(1) INTRODUCTION.—The bill is introduced by
one or more Members of Congress not later than 60
days after the date referred to in subsection (a).
(2) TITLE.—The title of the bill is as follows: ‘‘A
bill to establish new average fuel economy standards
for certain motor vehicles.’’.
(3) TEXT.—The bill provides after the enacting
clause only the text specified in subparagraph (A) or
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(B) or any provision described in subparagraph (C),
as follows:
(A) NON-PASSENGER AUTOMOBILES.—In the
case of a bill relating to a failure timely to issue
final regulations relating to non-passenger auto-
mobiles, the following text:
‘‘That, section 32902 of title 49, United States Code, is
amended by adding at the end the following new subsection:
‘‘ ‘(l) NON-PASSENGER AUTOMOBILES.—The average
fuel economy standard for non-passenger automobiles man-
ufactured by a manufacturer in a model year after model
year ll shall be ll miles per gallon.’ ’’, the first blank
space being filled in with a subsection designation, the sec-
ond blank space being filled in with the number of a year,
and the third blank space being filled in with a number.
(B) PASSENGER
AUTOMOBILES.—In the
case of a bill relating to a failure timely to issue
final regulations relating to passenger auto-
mobiles, the following text:
‘‘That, section 32902(b) of title 49, United States Code, is
amended to read as follows:
‘‘ ‘(b) PASSENGER AUTOMOBILES.—Except as provided
in this section, the average fuel economy standard for pas-
senger automobiles manufactured by a manufacturer in a
model year after model year ll shall be ll miles per
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HR 4 EAS
gallon.’ ’’, the first blank space being filled in with the num-
ber of a year and the second blank space being filled in
with a number.
(C) SUBSTITUTE
TEXT.—Any text sub-
stituted by an amendment that is in order under
subsection (c)(3).
(c) EXPEDITED PROCEDURES.—A bill described in
subsection (b) shall be considered in a House of Congress
in accordance with the procedures provided for the consider-
ation of joint resolutions in paragraphs (3) through (8) of
section 8066(c) of the Department of Defense Appropria-
tions Act, 1985 (as contained in section 101(h) of Public
Law 98–473; 98 Stat. 1936), with the following exceptions:
(1) REFERENCES
TO
RESOLUTION.—The ref-
erences in such paragraphs to a resolution shall be
deemed to refer to the bill described in subsection (b).
(2) COMMITTEES OF JURISDICTION.—The com-
mittees to which the bill is referred under this sub-
section shall—
(A) in the Senate, be the Committee on
Commerce, Science, and Transportation; and
(B) in the House of Representatives, be the
Committee on Energy and Commerce.
(3) AMENDMENTS.—
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(A) AMENDMENTS
IN
ORDER.—Only four
amendments to the bill are in order in each
House, as follows:
(i) Two amendments proposed by the
majority leader of that House.
(ii) Two amendments proposed by the
minority leader of that House.
(B) FORM AND CONTENT.—To be in order
under subparagraph (A), an amendment shall
propose to strike all after the enacting clause and
substitute text that only includes the same text as
is proposed to be stricken except for one or more
different numbers in the text.
(C) DEBATE, ET
CETERA.—Subparagraph
(B) of section 8066(c)(5) of the Department of
Defense Appropriations Act, 1985 (98 Stat.
1936) shall apply to the consideration of each
amendment proposed pursuant to subparagraph
(A) of this paragraph in the same manner as
such subparagraph (B) applies to debatable mo-
tions.
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SEC. 803. REVISED CONSIDERATIONS FOR DECISIONS ON
MAXIMUM FEASIBLE AVERAGE FUEL ECON-
OMY.
Section 32902(f) of title 49, United States Code, is
amended to read as follows:
‘‘(f) CONSIDERATIONS FOR DECISIONS ON MAXIMUM
FEASIBLE
AVERAGE
FUEL
ECONOMY.—When deciding
maximum feasible average fuel economy under this section,
the Secretary of Transportation shall consider the following
matters:
‘‘(1) Technological feasibility.
‘‘(2) Economic practicability.
‘‘(3) The effect of other motor vehicle standards
of the Government on fuel economy.
‘‘(4) The need of the United States to conserve
energy.
‘‘(5) The desirability of reducing United States
dependence on imported oil.
‘‘(6) The effects of the average fuel economy
standards on motor vehicle and passenger safety.
‘‘(7) The effects of increased fuel economy on air
quality.
‘‘(8) The adverse effects of average fuel economy
standards on the relative competitiveness of manufac-
turers.
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‘‘(9) The effects of compliance with average fuel
economy standards on levels of employment in the
United States.
‘‘(10) The cost and lead time necessary for the
introduction of the necessary new technologies.
‘‘(11) The potential for advanced technology ve-
hicles, such as hybrid and fuel cell vehicles, to con-
tribute to the achievement of significant reductions in
fuel consumption.
‘‘(12) The extent to which the necessity for vehi-
cle manufacturers to incur near-term costs to comply
with the average fuel economy standards adversely af-
fects the availability of resources for the development
of advanced technology for the propulsion of motor ve-
hicles.
‘‘(13) The report of the National Research Coun-
cil that is entitled ‘Effectiveness and Impact of Cor-
porate Average Fuel Economy Standards’, issued in
January 2002.’’.
SEC. 804. EXTENSION OF MAXIMUM FUEL ECONOMY IN-
CREASE FOR ALTERNATIVE FUELED VEHI-
CLES.
Section 32906(a)(1) of title 49, United States Code,
is amended—
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(1) in subparagraph (A), by striking ‘‘1993–
2004’’ and inserting ‘‘1993 through 2008’’; and
(2) in subparagraph (B), by striking ‘‘2005–
2008’’ and inserting ‘‘2009 through 2012’’.
SEC. 805. PROCUREMENT OF ALTERNATIVE FUELED AND
HYBRID LIGHT DUTY TRUCKS.
(a) VEHICLE FLEETS NOT COVERED BY REQUIRE-
MENT IN ENERGY POLICY ACT OF 1992.—
(1) HYBRID VEHICLES.—The head of each agen-
cy of the executive branch shall coordinate with the
Administrator of General Services to ensure that only
hybrid vehicles are procured by or for each agency
fleet of light duty trucks that is not in a fleet of vehi-
cles to which section 303 of the Energy Policy Act of
1992 (42 U.S.C. 13212) applies.
(2) WAIVER AUTHORITY.—The head of an agen-
cy, in consultation with the Administrator, may
waive the applicability of the policy regarding the
procurement of hybrid vehicles in paragraph (1) to
that agency to the extent that the head of that agency
determines necessary—
(A) to meet specific requirements of the
agency for capabilities of light duty trucks;
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(B) to procure vehicles consistent with the
standards applicable to the procurement of fleet
vehicles for the Federal Government;
(C) to adjust to limitations on the commer-
cial availability of light duty trucks that are hy-
brid vehicles; or
(D) to avoid the necessity of procuring a
hybrid vehicle for the agency when each of the
hybrid vehicles available for meeting the require-
ments of the agency has a cost to the United
States that exceeds the costs of comparable non-
hybrid vehicles by a factor that is significantly
higher than the difference between—
(i) the real cost of the hybrid vehicle to
retail purchasers, taking into account the
benefit of any tax incentives available to re-
tail purchasers for the purchase of the hy-
brid vehicle; and
(ii) the costs of the comparable non-
hybrid vehicles to retail purchasers.
(3) APPLICABILITY
TO
PROCUREMENTS
AFTER
FISCAL YEAR 2004.—This subsection applies with re-
spect to procurements of light duty trucks in fiscal
year 2005 and subsequent fiscal years.
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(b) REQUIREMENT TO EXCEED REQUIREMENT IN EN-
ERGY POLICY ACT OF 1992.—
(1) LIGHT
DUTY
TRUCKS.—The head of each
agency of the executive branch shall coordinate with
the Administrator of General Services to ensure that,
of the light duty trucks procured in fiscal years after
fiscal year 2004 for the fleets of light duty vehicles of
the agency to which section 303 of the Energy Policy
Act of 1992 (42 U.S.C. 13212) applies—
(A) 5 percent of the total number of such
trucks that are procured in each of fiscal years
2005 and 2006 are alternative fueled vehicles or
hybrid vehicles; and
(B) 10 percent of the total number of such
trucks that are procured in each fiscal year after
fiscal year 2006 are alternative fueled vehicles or
hybrid vehicles.
(2) COUNTING OF TRUCKS.—Light duty trucks
acquired for an agency of the executive branch that
are counted to comply with section 303 of the Energy
Policy Act of 1992 (42 U.S.C. 13212) for a fiscal year
shall be counted to determine the total number of light
duty trucks procured for that agency for that fiscal
year for the purposes of paragraph (1), but shall not
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be counted to satisfy the requirement in that para-
graph.
(c) DEFINITIONS.—In this section:
(1) HYBRID VEHICLE.—The term ‘‘hybrid vehi-
cle’’ means—
(A) a motor vehicle that draws propulsion
energy from onboard sources of stored energy
that are both—
(i) an internal combustion or heat en-
gine using combustible fuel; and
(ii) a rechargeable energy storage sys-
tem; and
(B) any other vehicle that is defined as a
hybrid vehicle in regulations prescribed by the
Secretary of Energy for the administration of
title III of the Energy Policy Act of 1992.
(2) ALTERNATIVE FUELED VEHICLE.—The term
‘‘alternative fueled vehicle’’ has the meaning given
that term in section 301 of the Energy Policy Act of
1992 (42 U.S.C. 13211).
(d) INAPPLICABILITY
TO
DEPARTMENT
OF
DE-
FENSE.—This section does not apply to the Department of
Defense, which is subject to comparable requirements under
section 318 of the National Defense Authorization Act for
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Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1055;
10 U.S.C. 2302 note).
SEC. 806. USE OF ALTERNATIVE FUELS.
(a) EXCLUSIVE USE OF ALTERNATIVE FUELS IN DUAL
FUELED VEHICLES.—The head of each agency of the execu-
tive branch shall coordinate with the Administrator of Gen-
eral Services to ensure that, not later than January 1, 2009,
the fuel actually used in the fleet of dual fueled vehicles used
by the agency is an alternative fuel.
(b) WAIVER AUTHORITY.—
(1) CAPABILITY WAIVER.—
(A) AUTHORITY.—If the Secretary of Trans-
portation determines that not all of the dual
fueled vehicles can operate on alternative fuels at
all times, the Secretary may waive the require-
ment of subsection (a) in part, but only to the
extent that—
(i) not later than January 1, 2009, not
less than 50 percent of the total annual vol-
ume of fuel used in the dual fueled vehicles
shall be alternative fuels; and
(ii) not later than January 1, 2011,
not less than 75 percent of the total annual
volume of fuel used in the dual fueled vehi-
cles shall be alternative fuels.
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(B) EXPIRATION.—In no case may a waiver
under subparagraph (A) remain in effect after
December 31, 2012.
(2) REGIONAL FUEL AVAILABILITY WAIVER.—The
Secretary may waive the applicability of the require-
ment of subsection (a) to vehicles used by an agency
in a particular geographic area where the alternative
fuel otherwise required to be used in the vehicles is
not reasonably available to retail purchasers of the
fuel, as certified to the Secretary by the head of the
agency.
(c) DEFINITIONS.—In this section:
(1) ALTERNATIVE FUEL.—The term ‘‘alternative
fuel’’ has the meaning given that term in section
32901(a)(1) of title 49, United States Code.
(2) DUAL FUELED VEHICLE.—The term ‘‘dual
fueled vehicle’’ has the meaning given the term ‘‘dual
fueled automobile’’ in section 32901(a)(8) of title 49,
United States Code.
(3) FLEET.—The term ‘‘fleet’’, with respect to
dual fueled vehicles, has the meaning that is given
that term with respect to light duty motor vehicles in
section 301(9) of the Energy Policy Act of 1992 (42
U.S.C. 13211(9)).
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SEC. 807. HYBRID ELECTRIC AND FUEL CELL VEHICLES.
(a) EXPANSION OF SCOPE.—The Secretary of Energy
shall expand the research and development program of the
Department of Energy on advanced technologies for improv-
ing the environmental cleanliness of vehicles to emphasize
research and development on the following:
(1) Fuel cells, including—
(A) high temperature membranes for fuel
cells; and
(B) fuel cell auxiliary power systems.
(2) Hydrogen storage.
(3) Advanced vehicle engine and emission control
systems.
(4) Advanced batteries and power electronics for
hybrid vehicles.
(5) Advanced fuels.
(6) Advanced materials.
(b) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Department of Energy
for fiscal year 2003, the amount of $225,000,000 for car-
rying out the expanded research and development program
provided for under this section.
SEC. 808. DIESEL FUELED VEHICLES.
(a) DIESEL COMBUSTION
AND AFTER TREATMENT
TECHNOLOGIES.—The Secretary of Energy shall accelerate
research and development directed toward the improvement
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of diesel combustion and after treatment technologies for use
in diesel fueled motor vehicles.
(b) GOAL.—
(1) COMPLIANCE WITH TIER 2 EMISSION STAND-
ARDS BY 2010.—The Secretary shall carry out sub-
section (a) with a view to developing and dem-
onstrating diesel technology meeting tier 2 emission
standards not later than 2010.
(2) TIER 2 EMISSION STANDARDS DEFINED.—In
this subsection, the term ‘‘tier 2 emission standards’’
means the motor vehicle emission standards promul-
gated by the Administrator of the Environmental
Protection Agency on February 10, 2000, under sec-
tions 202 and 211 of the Clean Air Act to apply to
passenger cars, light trucks, and larger passenger ve-
hicles of model years after the 2003 vehicle model
year.
SEC. 809. FUEL CELL DEMONSTRATION.
(a) PROGRAM REQUIRED.—The Secretary of Energy
and the Secretary of Defense shall jointly carry out a pro-
gram to demonstrate—
(1) fuel cell technologies developed in the PNGV
and Freedom Car programs;
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(2) fuel cell technologies developed in research
and development programs of the Department of De-
fense; and
(3) follow-on fuel cell technologies.
(b) PURPOSES OF PROGRAM.—The purposes of the pro-
gram are to identify and support technological advances
that are necessary to achieve accelerated availability of fuel
cell technology for use both for nonmilitary and military
purposes.
(c) COOPERATION WITH INDUSTRY.—
(1) IN GENERAL.—The demonstration program
shall be carried out in cooperation with industry, in-
cluding the automobile manufacturing industry and
the automotive systems and component suppliers in-
dustry.
(2) COST SHARING.—The Secretary of Energy
and the Secretary of Defense shall provide for indus-
try to bear, in cash or in kind, at least one-half of
the total cost of carrying out the demonstration pro-
gram.
(d) DEFINITIONS.—In this section:
(1) PNGV PROGRAM.—The term ‘‘PNGV pro-
gram’’ means the Partnership for a New Generation
of Vehicles, a cooperative program engaged in by the
Departments of Commerce, Energy, Transportation,
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and Defense, the Environmental Protection Agency,
the National Science Foundation, and the National
Aeronautics and Space Administration with the auto-
motive industry for the purpose of developing a new
generation of vehicles with capabilities resulting in
significantly improved fuel efficiency together with
low emissions without compromising the safety, per-
formance, affordability, or utility of the vehicles.
(2) FREEDOM CAR PROGRAM.—The term ‘‘Free-
dom Car program’’ means a cooperative research pro-
gram engaged in by the Department of Energy with
the United States Council on Automotive Research as
a follow-on to the PNGV program.
SEC. 810. BUS REPLACEMENT.
(a) REQUIREMENT
FOR STUDY.—The Secretary of
Transportation shall carry out a study to determine how
best to provide for converting the composition of the fleets
of buses in metropolitan areas and school systems from
buses utilizing current diesel technology to—
(1) buses that draw propulsion from onboard fuel
cells;
(2) buses that are hybrid electric vehicles;
(3) buses that are fueled by clean-burning fuels,
such as renewable fuels (including agriculture-based
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biodiesel fuels), natural gas, and ultra-low sulphur
diesel;
(4) buses that are powered by clean diesel en-
gines: or
(5) an assortment of buses described in para-
graphs (1), (2), (3), and (4).
(b) REPORT.—
(1) REQUIREMENT.—The Secretary of Transpor-
tation shall submit a report on the results of the study
on bus fleet conversions under subsection (a) to Con-
gress.
(2) CONTENT.—The report on bus fleet conver-
sions shall include the following:
(A) An assessment of effectuating conver-
sions by the following means:
(i) Replacement of buses.
(ii) Replacement of power and propul-
sion systems in buses utilizing current die-
sel technology.
(iii) Other means.
(B) Feasible schedules for carrying out the
conversions.
(C) Estimated costs of carrying out the con-
versions.
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(D) An assessment of the benefits of the con-
versions in terms of emissions control and reduc-
tion of fuel consumption.
SEC. 811. AVERAGE FUEL ECONOMY STANDARDS FOR PICK-
UP TRUCKS.
(a) IN GENERAL.—Section 32902(a) of title 49, United
States Code, is amended—
(1) by inserting ‘‘(1)’’ after the after ‘‘AUTO-
MOBILES.—’’; and
(2) by adding at the end the following new para-
graph:
‘‘(2) The average fuel economy standard for pickup
trucks manufactured by a manufacturer in a model year
after model year 2004 shall be no higher than 20.7 miles
per gallon. No average fuel economy standard prescribed
under another provision of this section shall apply to pick-
up trucks.’’.
(b) 
DEFINITION
OF
PICKUP
TRUCK.—Section
32901(a) of such title is amended by adding at the end the
following new paragraph:
‘‘(17) ‘pickup truck’ has the meaning given that
term in regulations prescribed by the Secretary for
the administration of this chapter, as in effect on
January 1, 2002, except that such term shall also in-
clude any additional vehicle that the Secretary de-
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fines as a pickup truck in regulations prescribed for
the administration of this chapter after such date.’’.
SEC. 812. EXCEPTION TO HOV PASSENGER REQUIREMENTS
FOR ALTERNATIVE FUEL VEHICLES.
Section 102(a)(1) of title 23, United States Code, is
amended by inserting after ‘‘required’’ the following: ‘‘(un-
less, in the discretion of the State transportation depart-
ment, the vehicle is being operated on, or is being fueled
by, an alternative fuel (as defined in section 301(2) of the
Energy Policy Act of 1992 (42 U.S.C. 13211(2)))’’.
SEC. 813. DATA COLLECTION.
Section 205 of the Department of Energy Organization
Act (42 U.S.C. 7135) is amended by adding at the end the
following:
‘‘(m) In order to improve the ability to evaluate the
effectiveness of the Nation’s renewable fuels mandate, the
Administrator shall conduct and publish the results of a
survey of renewable fuels consumption in the motor vehicle
fuels market in the United States monthly, and in a man-
ner designed to protect the confidentiality of individual re-
sponses. In conducting the survey, the Administrator shall
collect information retrospectively to 1998, both on a na-
tional basis and a regional basis, including—
(1) the quantity of renewable fuels produced;
(2) the cost of production;
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(3) the cost of blending and marketing;
(4) the quantity of renewable fuels blended;
(5) the quantity of renewable fuels imported; and
(6) market price data.
SEC. 814. GREEN SCHOOL BUS PILOT PROGRAM.
(a) ESTABLISHMENT.—The Secretary of Energy and
the Secretary of Transportation shall jointly establish a
pilot program for awarding grants on a competitive basis
to eligible entities for the demonstration and commercial
application of alternative fuel school buses and ultra-low
sulfur diesel school buses.
(b) REQUIREMENTS.—Not later than 3 months after
the date of the enactment of this Act, the Secretary shall
establish and publish in the Federal Register grant require-
ments on eligibility for assistance, and on implementation
of the program established under subsection (a), including
certification requirements to ensure compliance with this
subtitle.
(c) SOLICITATION.—Not later than 6 months after the
date of the enactment of this Act, the Secretary shall solicit
proposals for grants under this section.
(d) ELIGIBLE RECIPIENTS.—A grant shall be awarded
under this section only—
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(1) to a local governmental entity responsible for
providing school bus service for one or more public
school systems; or
(2) jointly to an entity described in paragraph
(1) and a contracting entity that provides school bus
service to the public school system or systems.
(e) TYPES OF GRANTS.—
(1) IN
GENERAL.—Grants under this section
shall be for the demonstration and commercial appli-
cation of technologies to facilitate the use of alter-
native fuel school buses and ultra-low sulfur diesel
school buses instead of buses manufactured before
model year 1977 and diesel-powered buses manufac-
tured before model year 1991.
(2) NO ECONOMIC BENEFIT.—Other than the re-
ceipt of the grant, a recipient of a grant under this
section may not receive any economic benefit in con-
nection with the receipt of the grant.
(3) PRIORITY
OF
GRANT
APPLICATIONS.—The
Secretary shall give priority to awarding grants to
applicants who can demonstrate the use of alternative
fuel buses and ultra-low sulfur diesel school buses in-
stead of buses manufactured before model year 1977.
(f) CONDITIONS OF GRANT.—A grant provided under
this section shall include the following conditions:
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(1) All buses acquired with funds provided under
the grant shall be operated as part of the school bus
fleet for which the grant was made for a minimum
of 5 years.
(2) Funds provided under the grant may only be
used—
(A) to pay the cost, except as provided in
paragraph (3), of new alternative fuel school
buses or ultra-low sulfur diesel school buses, in-
cluding State taxes and contract fees; and
(B) to provide—
(i) up to 10 percent of the price of the
alternative fuel buses acquired, for necessary
alternative fuel infrastructure if the infra-
structure will only be available to the grant
recipient; and
(ii) up to 15 percent of the price of the
alternative fuel buses acquired, for necessary
alternative fuel infrastructure if the infra-
structure will be available to the grant re-
cipient and to other bus fleets.
(3) The grant recipient shall be required to pro-
vide at least the lesser of 15 percent of the total cost
of each bus received or $15,000 per bus.
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(4) In the case of a grant recipient receiving a
grant to demonstrate ultra-low sulfur diesel school
buses, the grant recipient shall be required to provide
documentation to the satisfaction of the Secretary
that diesel fuel containing sulfur at not more than 15
parts per million is available for carrying out the
purposes of the grant, and a commitment by the ap-
plicant to use such fuel in carrying out the purposes
of the grant.
(g) BUSES.—Funding under a grant made under this
section may only be used to demonstrate the use of new al-
ternative fuel school buses or ultra-low sulfur diesel school
buses that—
(1) have a gross vehicle weight greater than
14,000 pounds;
(2) are powered by a heavy duty engine;
(3) in the case of alternative fuel school buses,
emit not more than—
(A) for buses manufactured in model year
2002, 2.5 grams per brake horsepower-hour of
nonmethane hydrocarbons and oxides of nitrogen
and .01 grams per brake horsepower-hour of par-
ticulate matter; and
(B) for buses manufactured in model years
2003 through 2006, 1.8 grams per brake horse-
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power-hour of nonmethane hydrocarbons and ox-
ides of nitrogen and .01 grams per brake horse-
power-hour of particulate matter; and
(4) in the case of ultra-low sulfur diesel school
buses, emit not more than the lesser of—
(A) the emissions of nonmethane hydro-
carbons, oxides of nitrogen, and particulate mat-
ter of the best performing technology of the same
class of ultra-low sulfur diesel school buses com-
mercially available at the time the grant is
made; or
(B) the applicable following amounts—
(i) for buses manufactured in model
year 2002 or 2003, 3.0 grams per brake
horsepower-hour of oxides of nitrogen and
.01 grams per brake horsepower-hour of
particulate matter; and
(ii) for buses manufactured in model
years 2004 through 2006, 2.5 grams per
brake horsepower-hour of nonmethane hy-
drocarbons and oxides of nitrogen and .01
grams per brake horsepower-hour of partic-
ulate matter.
(h) DEPLOYMENT AND DISTRIBUTION.—The Secretary
shall seek to the maximum extent practicable to achieve na-
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tionwide deployment of alternative fuel school buses through
the program under this section, and shall ensure a broad
geographic distribution of grant awards, with a goal of no
State receiving more than 10 percent of the grant funding
made available under this section for a fiscal year.
(i) LIMIT ON FUNDING.—The Secretary shall provide
not less than 20 percent and not more than 25 percent of
the grant funding made available under this section for any
fiscal year for the acquisition of ultra-low sulfur diesel
school buses.
(j) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘alternative fuel school bus’’ means
a bus powered substantially by electricity (including
electricity supplied by a fuel cell), or by liquefied nat-
ural gas, compressed natural gas, liquefied petroleum
gas, hydrogen, propane, or methanol or ethanol at no
less than 85 percent by volume;
(2) the term ‘‘idling’’ means not turning off an
engine while remaining stationary for more than ap-
proximately 3 minutes; and
(3) the term ‘‘ultra-low sulfur diesel school bus’’
means a school bus powered by diesel fuel which con-
tains sulfur at not more than 15 parts per million.
(k) REDUCTION OF SCHOOL BUS IDLING.—Each local
educational agency (as defined in section 9101 of the Ele-
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mentary and Secondary Education Act of 1965 (20 U.S.C.
7801)) that receives Federal funds under the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6301 et
seq.) is encouraged to develop a policy to reduce the inci-
dence of school buses idling at schools when picking up and
unloading students.
SEC. 815. FUEL CELL BUS DEVELOPMENT AND DEMONSTRA-
TION PROGRAM.
(a) ESTABLISHMENT
OF PROGRAM.—The Secretary
shall establish a program for entering into cooperative
agreements with private sector fuel cell bus developers for
the development of fuel cell-powered school buses, and subse-
quently with not less than two units of local government
using natural gas-powered school buses and such private
sector fuel cell bus developers to demonstrate the use of fuel
cell-powered school buses.
(b) COST SHARING.—The non-Federal contribution for
activities funded under this section shall be not less than—
(1) 20 percent for fuel infrastructure develop-
ment activities; and
(2) 50 percent for demonstration activities and
for development activities not described in paragraph
(1).
(c) FUNDING.—No more than $25,000,000 of the
amounts authorized under section 815 may be used for car-