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SECTION 1. NEXT GENERATION LIGHTING INITIATIVE.

(a) Definitions.--In this section:
(1) Consortium.--The term ''consortium'' means the
consortium selected by the Secretary under subsection (d)(1).
(2) Initiative.--The term ''Initiative'' means the Next
Generation Lighting Initiative carried out under subsection
(b).
(3) Secretary.--The term ''Secretary'' means the Secretary
of Energy.
(b) General Authority.--The Secretary shall carry out a program, to
be known as the ''Next Generation Lighting Initiative'', to support
research, development, demonstration, and commercial application
activities related to advanced solid-state lighting technologies based
on white light emitting diodes.
(c) Objectives.--The objectives of the Initiative shall be--
(1) to develop, by 2012, advanced solid-state lighting
technologies based on white light emitting diodes that,
compared to incandescent and fluorescent lighting technologies,
are--
(A) longer lasting;
(B) more energy-efficient; and
(C) cost-competitive;
(2) to develop an inorganic white light emitting diode that
has an efficiency of 160 lumens per watt and a 10-year
lifetime; and
(3) to develop an organic white light emitting diode with
an efficiency of 100 lumens per watt with a 5-year lifetime
that--
(A) illuminates over a full color spectrum;
(B) covers large areas over flexible surfaces; and
(C) does not contain harmful pollutants (such as
mercury) that are typical of fluorescent lamps.
(d) Fundamental Research.--
(1) Consortium.--The Secretary shall carry out the
fundamental research activities of the Initiative through a
private consortium (which may include private firms, trade
associations and institutions of higher education), which the
Secretary shall select through a competitive process.
(2) Submission of information.--Each proposed consortium
shall submit to the Secretary such information as the Secretary
may require, including a program plan agreed to by all
participants of the consortium.
(3) Joint venture.--The consortium shall be structured as a
joint venture among the participants of the consortium.
(4) Governing council.--The Secretary shall serve on the
governing council of the consortium.
(5) Eligibility.--To be eligible for a grant under
paragraph (6), an applicant shall be broadly representative of
United States solid-state lighting research, development, and
manufacturing expertise.
(6) Grants.--
(A) In general.--The Secretary shall award grants
for fundamental research to the consortium, which the
consortium may disburse to researchers, including
researchers that are not participants in the
consortium.
(B) Submission.--To receive a grant, the consortium
shall submit to the Secretary a description of the
proposed research and a list of the persons that will
receive funding.
(C) Cost-sharing.--Grants shall be matched by the
consortium in accordance with subsection (h).
(7) National laboratories.--National Laboratories may
participate in the research under this section and receive
funds from the consortium.
(8) Intellectual property.--Participants in the consortium
and the Federal Government shall have royalty-free nonexclusive
rights to use intellectual property derived from research
funded under this subsection.
(e) Development, Demonstration, and Commercial Application.--
(1) In general.--The Secretary shall carry out the
development, demonstration, and commercial application
activities of the Initiative through awards to private firms,
trade associations, and institutions of higher education.
(2) Preference.--In selecting awardees, the Secretary shall
give preference to members of the consortium.
(f) Plans and Assessments.--
(1) In general.--The consortium shall formulate an annual
operating plan which shall include research priorities,
technical milestones, and plans for technology transfer, and
which shall be subject to approval by the Secretary.
(2) Review.--
(A) In general.--The Secretary shall enter into an
arrangement with the National Academy of Sciences to
conduct periodic reviews of the Initiative.
(B) Duties.--The Academy shall review the research
priorities, technical milestones, and plans for
technology transfer established under paragraph (1) and
evaluate the progress toward achieving them.
(C) Consideration of results.--The Secretary shall
consider the results of the reviews in evaluating the
plans submitted under paragraph (1).
(g) Audit.--
(1) In general.--The Secretary shall retain an independent,
commercial auditor to perform an audit of the consortium to
determine the extent to which the funds authorized by this
section have been expended in a manner consistent with this
section.
(2) Report.--
(A) To the secretary.--The auditor shall annually
submit to the Secretary a report describing the results
of the audit under paragraph (1).
(B) To congress.--The Secretary shall transmit to
Congress a copy of each report submitted under
subparagraph (A), including a plan to remedy any
deficiencies noted in the report.
(h) Cost Sharing.--
(1) Research and development.--
(A) In general.--For research and development
programs carried out under this section, the Secretary
shall require a commitment from non-Federal sources of
at least 20 percent of the cost of the project.
(B) Reduction or waiver.--The Secretary may reduce
or waive the non-Federal requirement under this
subsection if the Secretary determines that the
research and development is of a basic or fundamental
nature.
(2) Demonstration and commercial application.--
(A) In general.--The Secretary shall require at
least 50 percent of the costs directly and specifically
related to any demonstration or commercial application
project under this section to be provided from non-
Federal sources.
(B) Reduction.--The Secretary may reduce the non-
Federal requirement under this subsection if the
Secretary determines that the reduction is necessary
and appropriate considering the technological risks
involved in the project and is necessary to meet the
objectives of this title.
(3) Calculation of amount.--In calculating the amount of
the non-Federal commitment under paragraph (1) or (2), the
Secretary may include personnel, services, equipment, and other
resources.
(i) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section--
(1) $10,000,000 for fiscal year 2004; and
(2) $50,000,000 for each of fiscal years 2005 through 2013.
(j) Termination of Initiative.--The Secretary shall terminate the
Initiative not later than September 30, 2013.
Output:
Next Generation Lighting Initiative Act - Directs the Secretary of Energy to implement: (1) the Next Generation Lighting Initiative to support research, development, demonstration, and commercial application activities related to advanced solid-state lighting technologies based on white light emitting diodes; (2) fundamental research activities of the Initiative through a private consortium (which may include private firms, trade associations and institutions of higher education), selected through a competitive process; and (3) development, demonstration, and commercial application activities of the Initiative through awards to private firms, trade associations, and institutions of higher education.