[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2587 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2587

 To enhance energy conservation, provide for security and diversity in 
   the energy supply for the American people, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 23, 2001

    Mr. Tauzin (for himself and Mr. Barton of Texas) introduced the 
   following bill; which was referred to the Committee on Energy and 
Commerce, and in addition to the Committees on Ways and Means, Science, 
 Transportation and Infrastructure, the Budget, and Education and the 
 Workforce, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To enhance energy conservation, provide for security and diversity in 
   the energy supply for the American people, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Energy Advancement 
and Conservation Act of 2001''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
                      TITLE I--ENERGY CONSERVATION

  Subtitle A--Reauthorization of Federal Energy Conservation Programs

Sec. 101. Authorization of appropriations.
         Subtitle B--Federal Leadership in Energy Conservation

Sec. 121. Federal facilities and national energy security.
Sec. 122. Enhancement and extension of authority relating to Federal 
                            energy savings performance contracts.
Sec. 123. Clarification and enhancement of authority to enter utility 
                            incentive programs for energy savings.
Sec. 124. Federal central air conditioner and heat pump efficiency.
Sec. 125. Federal Energy Bank.
Sec. 126. Advanced building efficiency testbed.
Sec. 127. Use of interval data in Federal buildings.
Sec. 128. Review of Energy Savings Performance Contract Program.
Sec. 129. Capitol complex.
                       Subtitle C--State Programs

Sec. 131. Amendments to State energy programs.
Sec. 132. Reauthorization of energy conservation program for schools 
                            and hospitals.
Sec. 133. Amendments to Weatherization Assistance Program.
Sec. 134. LIHEAP.
Sec. 135. High performance public buildings.
          Subtitle D--Energy Efficiency for Consumer Products

Sec. 141. Energy Star program.
Sec. 142. Labeling of energy efficient appliances.
Sec. 143. Appliance standards.
                 Subtitle E--Energy Efficient Vehicles

Sec. 151. High occupancy vehicle exception.
Sec. 152. Railroad efficiency.
Sec. 153. Biodiesel fuel use credits.
Sec. 154. Mobile to stationary source trading.
                      Subtitle F--Other Provisions

Sec. 161. Review of regulations to eliminate barriers to emerging 
                            energy technology.
Sec. 162. Advanced idle elimination systems.
Sec. 163. Study of benefits and feasibility of oil bypass filtration 
                            technology.
Sec. 164. Gas flare study.
Sec. 165. Telecommuting study.
                   TITLE II--AUTOMOBILE FUEL ECONOMY

Sec. 201. Average fuel economy standards for nonpassenger automobiles.
Sec. 202. Consideration of prescribing different average fuel economy 
                            standards for nonpassenger automobiles.
Sec. 203. Dual fueled automobiles.
Sec. 204. Fuel economy of the Federal fleet of automobiles.
Sec. 205. Hybrid vehicles and alternative vehicles.
Sec. 206. Federal fleet petroleum-based nonalternative fuels.
Sec. 207. Study of feasibility and effects of reducing use of fuel for 
                            automobiles.
                       TITLE III--NUCLEAR ENERGY

                     Subtitle A--General Provisions

Sec. 301. Budget status of Nuclear Waste Fund.
Sec. 302. License period.
Sec. 303. Cost recovery from Government agencies.
Sec. 304. Depleted uranium hexafluoride.
Sec. 305. Nuclear Regulatory Commission meetings.
                Subtitle B--Domestic Uranium Fuel Cycle

Sec. 311. Portsmouth cold standby.
Sec. 312. Paducah funding.
Sec. 313. Research and development.
Sec. 314. Short-term reliability of domestic uranium enrichment 
                            capacity.
Sec. 315. Cooperative research and development and special 
                            demonstration projects for the uranium 
                            mining industry.
Sec. 316. Maintenance of a viable domestic uranium conversion industry.
Sec. 317. Prohibition of commercial sales of uranium by the United 
                            States until 2009.
Sec. 318. Paducah decontamination and decommissioning plan.
                     TITLE IV--HYDROELECTRIC ENERGY

Sec. 401. Alternative conditions and fishways.
Sec. 402. FERC data on hydroelectric licensing.
                          TITLE V--CLEAN COAL

Sec. 501. Short title.
Sec. 502. Findings.
      Subtitle A--Accelerated Clean Coal Power Production Program

Sec. 511. Definitions.
Sec. 512. Cost and performance goals.
Sec. 513. Study.
Sec. 514. Production and generation of coal-based power.
Sec. 515. Authorization of appropriations.
Sec. 516. Clean coal power initiative.
Sec. 517. Financial assistance.
Subtitle B--Credit for Emission Reductions and Efficiency Improvements 
        in Existing Coal-Based Electricity Generation Facilities

Sec. 521. Credit for investment in qualifying clean coal technology.
Sec. 522. Credit for production from a qualifying clean coal technology 
                            unit.
 Subtitle C--Incentives for Early Commercial Applications of Advanced 
                        Clean Coal Technologies

Sec. 531. Credit for investment in qualifying advanced clean coal 
                            technology.
Sec. 532. Credit for production from qualifying advanced clean coal 
                            technology.
Sec. 533. Risk pool for qualifying advanced clean coal technology.
    Subtitle D--Treatment of Certain Governmental and Other Entities

Sec. 541. Credits for certain organizations and governmental units.
                            TITLE VI--FUELS

Sec. 601. Tank draining during transition to summertime RFG.
Sec. 602. Gasoline blendstock requirements.
Sec. 603. Boutique fuels.
Sec. 604. Funding for MTBE contamination.
                      TITLE VII--RENEWABLE ENERGY

Sec. 701. Assessment of renewable energy resources.
Sec. 702. Renewable energy production incentive.
                     TITLE VIII--PIPELINE INTEGRITY

                     Subtitle A--Pipeline Integrity

Sec. 801. Program for pipeline integrity research, development, and 
                            demonstration.
Sec. 802. Pipeline Integrity Technical Advisory Committee.
Sec. 803. Authorization of appropriations.
                  Subtitle B-Other Pipeline Provisions

Sec. 811. Prohibition on certain pipeline route.
Sec. 812. Historic pipelines.
                   TITLE IX--MISCELLANEOUS PROVISIONS

Sec. 901. Waste reduction and use of alternatives.
Sec. 902. Annual report on United States energy independence.
Sec. 903. Study of aircraft emissions.

                      TITLE I--ENERGY CONSERVATION

  Subtitle A--Reauthorization of Federal Energy Conservation Programs

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

    Section 660 of the Department of Energy Organization Act (42 U.S.C. 
7270) is amended as follows:
            (1) By inserting ``(a)'' before ``Appropriations''.
            (2) By inserting at the end the following new subsection:
    ``(b) There are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 2002, $950,000,000; for fiscal 
year 2003, $1,000,000,000; for fiscal year 2004, $1,050,000,000; for 
fiscal year 2005, $1,100,000,000; and for fiscal year 2006, 
$1,150,000,000, to carry out energy efficiency activities under the 
following laws, such sums to remain available until expended:
            ``(1) Energy Policy and Conservation Act, including section 
        256(d)(42 U.S.C. 6276(d)) (promote export of energy efficient 
        products), sections 321 through 346 (42 U.S.C. 6291-6317) 
        (appliances program).
            ``(2) Energy Conservation and Production Act, including 
        sections 301 through 308 (42 U.S.C. 6831-6837) (energy 
        conservation standards for new buildings).
            ``(3) National Energy Conservation Policy Act, including 
        sections 541-551 (42 U.S.C. 8251-8259) (Federal Energy 
        Management Program).
            ``(4) Energy Policy Act of 1992, including sections 103 (42 
        U.S.C. 13458) (energy efficient lighting and building centers), 
        121 (42 U.S.C. 6292 note) (energy efficiency labeling for 
        windows and window systems), 125 (42 U.S.C. 6292 note) (energy 
        efficiency information for commercial office equipment), 126 
        (42 U.S.C. 6292 note) (energy efficiency information for 
        luminaires), 131 (42 U.S.C. 6348) (energy efficiency in 
        industrial facilities), and 132 (42 U.S.C. 6349) (process-
        oriented industrial energy efficiency).''.

         Subtitle B--Federal Leadership in Energy Conservation

SEC. 121. FEDERAL FACILITIES AND NATIONAL ENERGY SECURITY.

    (a) Purpose.--Section 542 of the National Energy Conservation 
Policy Act (42 U.S.C. 8252) is amended by inserting ``, and generally 
to promote the production, supply, and marketing of energy efficiency 
products and services and the production, supply, and marketing of 
unconventional and renewable energy resources'' after ``by the Federal 
Government''.
    (b) Energy Management Requirements.--Section 543 of the National 
Energy Conservation Policy Act (42 U.S.C. 8253) is amended as follows:
            (1) In subsection (a)(1), by striking ``during the fiscal 
        year 1995'' and all that follows through the end and inserting 
        ``during--
    ``(1) fiscal year 1995 is at least 10 percent;
    ``(2) fiscal year 2000 is at least 20 percent;
    ``(3) fiscal year 2005 is at least 30 percent;
    ``(4) fiscal year 2010 is at least 35 percent;
    ``(5) fiscal year 2015 is at least 40 percent; and
    ``(6) fiscal year 2020 is at least 45 percent,
less than the energy consumption per gross square foot of its Federal 
buildings in use during fiscal year 1985. To achieve the reductions 
required by this paragraph, an agency shall make maximum practicable 
use of energy efficiency products and services and unconventional and 
renewable energy resources, using guidelines issued by the Secretary 
under subsection (d) of this section.''.
            (2) In subsection (d), by inserting ``Such guidelines shall 
        include appropriate model technical standards for energy 
        efficiency and unconventional and renewable energy resources 
        products and services. Such standards shall reflect, to the 
        extent practicable, evaluation of both currently marketed and 
        potentially marketable products and services that could be used 
        by agencies to improve energy efficiency and increase 
        unconventional and renewable energy resources.'' after 
        ``implementation of this part.''.
            (3) By adding at the end the following new subsection:
    ``(e) Studies.--To assist in developing the guidelines issued by 
the Secretary under subsection (d) and in furtherance of the purposes 
of this section, the Secretary shall conduct studies to identify and 
encourage the production and marketing of energy efficiency products 
and services and unconventional and renewable energy resources. To 
conduct such studies, there are authorized to be appropriated to the 
Secretary $20,000,000 for each of the fiscal years 2003 through 
2010.''.
    (c) Definition.--Section 551 of the National Energy Conservation 
Policy Act (42 U.S.C. 8259) is amended as follows:
            (1) By striking ``and'' at the end of paragraph (8).
            (2) By striking the period at the end of paragraph (9) and 
        inserting ``; and''.
            (3) By adding at the end the following new paragraph:
            ``(10) the term `unconventional and renewable energy 
        resources' includes renewable energy sources, hydrogen, fuel 
        cells, cogeneration, combined heat and power, heat recovery 
        (including by use of a Stirling heat engine), and distributed 
        generation.''.
    (d) Exclusions From Requirement.--The National Energy Conservation 
Policy Act (42 U.S.C. 7201 and following) is amended as follows:
            (1) In section 543(a)--
                    (A) by striking ``(1) Subject to paragraph (2)'' 
                and inserting ``Subject to subsection (c)''; and
                    (B) by striking ``(2) An agency'' and all that 
                follows through ``such exclusion.''.
            (2) By amending subsection (c) of such section 543 to read 
        as follows:
    ``(c) Exclusions.--(1) A Federal building may be excluded from the 
requirements of subsections (a) and (b) only if--
            ``(A) the President declares the building to require 
        exclusion for national security reasons; and
            ``(B) the agency responsible for the building has--
                    ``(i) completed and submitted all federally 
                required energy management reports; and
                    ``(ii) achieved compliance with the energy 
                efficiency requirements of this Act, the Energy Policy 
                Act of 1992, Executive Orders, and other Federal law;
                    ``(iii) implemented all practical, life cycle cost-
                effective projects in the excluded building.
    ``(2) The President shall only declare buildings described in 
paragraph (1)(A) to be excluded, not ancillary or nearby facilities 
that are not in themselves national security facilities.''.
            (3) In section 548(b)(1)(A)--
                    (A) by striking ``copy of the''; and
                    (B) by striking ``sections 543(a)(2) and 
                543(c)(3)'' and inserting ``section 543(c)''.
    (e) Acquisition Requirement.--Section 543(b) of such Act is 
amended--
            (1) in paragraph (1), by striking ``(1) Not'' and inserting 
        ``(1) Except as provided in paragraph (5), not''; and
            (2) by adding at the end the following new paragraph:
    ``(5)(A)(i) Agencies shall select only Energy Star products when 
available when acquiring energy-using products. For product groups 
where Energy Star labels are not yet available, agencies shall select 
products that are in the upper 25 percent of energy efficiency as 
designated by FEMP. The Secretary of Energy shall develop guidelines 
within 180 days after the enactment of this paragraph for exemptions to 
this section when equivalent products do not exist, are impractical, or 
do not meet the agency mission requirements.
    ``(ii) The Administrator of the General Services Administration and 
the Secretary of Defense (acting through the Defense Logistics Agency), 
with assistance from the Administrator of the Environmental Protection 
Agency and the Secretary of Energy, shall create clear catalogue 
listings that designate Energy Star products in both print and 
electronic formats. After any existing federal inventories are 
exhausted, Administrator of the General Services Administration and the 
Secretary of Defense (acting through the Defense Logistics Agency) 
shall only replace inventories with energy-using products that are 
Energy Star, products that are rated in the top 25 percent of energy 
efficiency, or products that are exempted as designated by FEMP and 
defined in clause (i).
    ``(iii) Agencies shall incorporate energy-efficient criteria 
consistent with Energy Star and other FEMP designated energy efficiency 
levels into all guide specifications and project specifications 
developed for new construction and renovation, as well as into product 
specification language developed for Basic Ordering Agreements, Blanket 
Purchasing Agreements, Government Wide Acquisition Contracts, and all 
other purchasing procedures.
    ``(iv) The legislative branch shall be subject to this subparagraph 
to the same extent and in the same manner as are the Federal agencies 
referred to in section 521(1).
    ``(B) Not later than 6 months after the date of the enactment of 
this paragraph, the Secretary of Energy shall establish guidelines 
defining the circumstances under which an agency shall not be required 
to comply with subparagraph (A). Such circumstances may include the 
absence of Energy Star products, systems, or designs that serve the 
purpose of the agency, issues relating to the compatibility of a 
product, system, or design with existing buildings or equipment, and 
excessive cost compared to other available and appropriate products, 
systems, or designs.
    ``(C) Subparagraph (A) shall apply to agency acquisitions occurring 
on or after October 1, 2002.''.
    (f) Metering.--Section 543 of such Act (42 U.S.C. 8254) is amended 
by adding at the end the following new subsection:
    ``(f) Metering.--(1) By October 1, 2004, all Federal buildings 
including buildings owned by the legislative branch and the Federal 
court system and other energy-using structures shall be metered or 
submetered in accordance with guidelines established by the Secretary 
under paragraph (2).
    ``(2) Not later than 6 months after the date of the enactment of 
this subsection, the Secretary, in consultation with representatives 
from the metering industry, energy services industry, national 
laboratories, colleges of higher education, and federal facilities 
energy managers, shall establish guidelines for agencies to carry out 
paragraph (1). Such guidelines shall take into consideration each of 
the following:
            ``(A) Cost.
            ``(B) Resources, including personnel, required to maintain, 
        interpret, and report on data so that the meters are 
        continually reviewed.
            ``(C) Energy management potential.
            ``(D) Energy savings.
            ``(E) Utility contract aggregation.
            ``(F) Savings from operations and maintenance.
    ``(3) Any building excluded under subsection (c) shall be 
individually metered or submetered as the Secretary determines 
necessary.''.
    (g) Retention of Energy Savings.--Section 546 of such Act (42 
U.S.C. 8256) is amended by adding at the end the following new 
subsection:
    ``(e) Retention of Energy Savings.--An agency may retain any funds 
appropriated to that agency for energy expenditures, at buildings 
subject to the requirements of section 543(a) and (b), that are not 
made because of energy savings. Such funds may be used only for energy 
efficiency or unconventional and renewable energy resources 
projects.''.
    (h) Reports.--Section 548 of such Act (42 U.S.C. 8258) is amended 
as follows:
            (1) In subsection (a)--
                    (A) by inserting ``in accordance with guidelines 
                established by and'' after ``to the Secretary,'';
                    (B) by striking ``and'' at the end of paragraph 
                (1);
                    (C) by striking the period at the end of paragraph 
                (2) and inserting a semicolon; and
                    (D) by adding at the end the following new 
                paragraphs:
            ``(3) an energy emergency response plan developed by the 
        agency;
            ``(4) the quantity, and a description of, products, 
        systems, and designs acquired by the agency that are not 
        acquired as provided in section 543(b)(5)(A); and
            ``(5) the percentage of the Agency's capital expenditures 
        that are used for energy efficiency and unconventional and 
        renewable energy resources capital improvements.''.
            (2) In subsection (b)--
                    (A) by striking ``and'' at the end of paragraph 
                (3);
                    (B) by striking the period at the end of paragraph 
                (4) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(5) all information transmitted to the Secretary under 
        subsection (a).''.
            (3) By amending subsection (c) to read as follows:
    ``(c) Agency Reports to Congress.--Each agency shall annually 
report to the Congress, as part of the agency's annual budget request, 
on all of the agency's activities implementing any Federal energy 
management requirement.''.
    (i) Inspector General Energy Audits.--Section 160(c) of the Energy 
Policy Act of 1992 (42 U.S.C. 8262f(c)) is amended by striking ``is 
encouraged to conduct periodic'' and inserting ``shall conduct 
periodic''.
    (j) Federal Energy Management Reviews.--Section 543 of the National 
Energy Conservation Policy Act (42 U.S.C. 8253) is amended by adding at 
the end the following:
    ``(g) Priority Response Reviews.--Each agency shall--
            ``(1) not later than 9 months after the date of the 
        enactment of this subsection, undertake a comprehensive review 
        of all practicable measures for--
                    ``(A) increasing energy and water conservation, and
                    ``(B) using renewable energy sources; and
            ``(2) not later than 180 days after completing the review, 
        implement measures to achieve not less than 50 percent of the 
        potential efficiency and renewable savings identified in the 
        review.''.

SEC. 122. ENHANCEMENT AND EXTENSION OF AUTHORITY RELATING TO FEDERAL 
              ENERGY SAVINGS PERFORMANCE CONTRACTS.

    (a) Cost Savings From Operation and Maintenance Efficiencies in 
Replacement Facilities.--Section 801(a) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287(a)) is amended by adding at the 
end the following new paragraph:
    ``(3)(A) In the case of an energy savings contract or energy 
savings performance contract providing for energy savings through the 
construction and operation of one or more buildings or facilities to 
replace one or more existing buildings or facilities, benefits 
ancillary to the purpose of such contract under paragraph (1) may 
include savings resulting from reduced costs of operation and 
maintenance at such replacement buildings or facilities when compared 
with costs of operation and maintenance at the buildings or facilities 
being replaced, established through a methodology set forth in the 
contract.
    ``(B) Notwithstanding paragraph (2)(B), aggregate annual payments 
by an agency under an energy savings contract or energy savings 
performance contract referred to in subparagraph (A) may take into 
account (through the procedures developed pursuant to this section) 
savings resulting from reduced costs of operation and maintenance as 
described in that subparagraph.''.
    (b) Expansion of Definition of Energy Savings to Include Water and 
Replacement Facilities.--
            (1) Energy savings.--Section 804(2) of the National Energy 
        Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to read 
        as follows:
            ``(2)(A) The term `energy savings' means a reduction in the 
        cost of energy or water, from a base cost established through a 
        methodology set forth in the contract, used in an existing 
        federally owned building or buildings or other federally owned 
        facilities as a result of--
                    ``(i) the lease or purchase of operating equipment, 
                improvements, altered operation and maintenance, or 
                technical services;
                    ``(ii) the increased efficient use of existing 
                energy sources by solar and ground source geothermal 
                resources, cogeneration or heat recovery (including by 
                the use of a Stirling heat engine), excluding any 
                cogeneration process for other than a federally owned 
                building or buildings or other federally owned 
                facilities; or
                    ``(iii) the increased efficient use of existing 
                water sources.
            ``(B) The term `energy savings' also means, in the case of 
        a replacement building or facility described in section 
        801(a)(3), a reduction in the cost of energy, from a base cost 
        established through a methodology set forth in the contract, 
        that would otherwise be utilized in one or more existing 
        federally owned buildings or other federally owned facilities 
        by reason of the construction and operation of the replacement 
        building or facility.''.
            (2) Energy savings contract.--Section 804(3) of the 
        National Energy Conservation Policy Act (42 U.S.C. 8287c(3)) is 
        amended to read as follows:
            ``(3) The terms `energy savings contract' and `energy 
        savings performance contract' mean a contract which provides 
        for--
                    ``(A) the performance of services for the design, 
                acquisition, installation, testing, operation, and, 
                where appropriate, maintenance and repair, of an 
                identified energy or water conservation measure or 
                series of measures at one or more locations; or
                    ``(B) energy savings through the construction and 
                operation of one or more buildings or facilities to 
                replace one or more existing buildings or 
                facilities.''.
            (3) Energy or water conservation measure.--Section 804(4) 
        of the National Energy Conservation Policy Act (42 U.S.C. 
        8287c(4)) is amended to read as follows:
            ``(4) The term `energy or water conservation measure' 
        means--
                    ``(A) an energy conservation measure, as defined in 
                section 551(4) (42 U.S.C. 8259(4)); or
                    ``(B) a water conservation measure that improves 
                water efficiency, is life cycle cost effective, and 
                involves water conservation, water recycling or reuse, 
                improvements in operation or maintenance efficiencies, 
                retrofit activities, or other related activities, not 
                at a Federal hydroelectric facility.''.
            (4) Conforming amendment.--Section 801(a)(2)(C) of the 
        National Energy Conservation Policy Act (42 U.S.C. 
        8287(a)(2)(C)) is amended by inserting ``or water'' after 
        ``financing energy''.
    (c) Extension of Authority.--Section 801(c) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287(c)) is repealed.
    (d) Contracting and Auditing.--Section 801(a)(2) of the National 
Energy Conservation Policy Act (42 U.S.C. 8287(a)(2)) is amended by 
adding at the end the following new subparagraph:
    ``(E) A Federal agency shall engage in contracting and auditing to 
implement energy savings performance contracts as necessary and 
appropriate to ensure compliance with the requirements of this Act, 
particularly the energy efficiency requirements of section 543.''.

SEC. 123. CLARIFICATION AND ENHANCEMENT OF AUTHORITY TO ENTER UTILITY 
              INCENTIVE PROGRAMS FOR ENERGY SAVINGS.

    Section 546(c) of the National Energy Conservation Policy Act (42 
U.S.C. 8256(c)) is amended as follows:
            (1) In paragraph (3) by adding at the end the following: 
        ``Such a utility incentive program may include a contract or 
        contract term designed to provide for cost-effective 
        electricity demand management, energy efficiency, or water 
        conservation.''.
            (2) By adding at the end of the following new paragraphs:
    ``(6) A utility incentive program may include a contract or 
contract term for a reduction in the energy, from a base cost 
established through a methodology set forth in such a contract, that 
would otherwise be utilized in one or more federally owned buildings or 
other federally owned facilities by reason of the construction or 
operation of one or more replacement buildings or facilities, as well 
as benefits ancillary to the purpose of such contract or contract term, 
including savings resulting from reduced costs of operation and 
maintenance at new or additional buildings or facilities when compared 
with the costs of operation and maintenance at existing buildings or 
facilities.
    ``(7) Federal agencies are encouraged to participate in State or 
regional demand side reduction programs, including those operated by 
wholesale market institutions such as independent system operators, 
regional transmission organizations and other entities. The 
availability of such programs, and the savings resulting from such 
participation, should be included in the evaluation of energy options 
for Federal facilities.''.

SEC. 124. FEDERAL CENTRAL AIR CONDITIONER AND HEAT PUMP EFFICIENCY.

    (a) Requirement.--Federal agencies shall be required to acquire 
central air conditioners and heat pumps that meet or exceed the 
standards established under subsection (b) or (c) in the case of all 
central air conditioners and heat pumps acquired after the date of 
enactment of this Act.
    (b) Standards.--The standards referred to in subsection (a) are the 
following:
            (1) For air-cooled air conditioners with cooling capacities 
        of less than 65,000 Btu/hour, a Seasonal Energy Efficiency 
        Ratio of 12.0.
            (2) For air-source heat pumps with cooling capacities less 
        than 65,000 Btu/hour, a Seasonal Energy Efficiency Ratio of 12 
        SEER, and a Heating Seasonal Performance Factor of 7.4.
    (c) Modified Standards.--The Secretary of Energy may establish, 
after appropriate notice and comment, revised standards providing for 
reduced energy consumption or increased energy efficiency of central 
air conditioners and heat pumps acquired by the Federal Government, but 
may not establish standards less rigorous than those established by 
subsection (b).
    (d) Definitions.--For purposes of this section, the terms ``Energy 
Efficiency Ratio'', ``Seasonal Energy Efficiency Ratio'', ``Heating 
Seasonal Performance Factor'', and ``Coefficient of Performance'' have 
the meanings used for those terms in Appendix M to Subpart B of Part 
430 of title 10 of the Code of Federal Regulations, as in effect on May 
24, 2001.
    (e) Exemptions.--An agency shall be exempt from the requirements of 
this section with respect to air conditioner or heat pump purchases for 
particular uses where the agency head determines that purchase of a air 
conditioner or heat pump for such use would be impractical. A finding 
of impracticability shall be based on whether--
            (1) the energy savings pay-back period for such purchase 
        would be less than 10 years;
            (2) space constraints or other technical factors would make 
        compliance with this section cost-prohibitive; or
            (3) in the case of the Departments of Defense and Energy, 
        compliance with this section would be inconsistent with the 
        proper discharge of national security functions.

SEC. 125. FEDERAL ENERGY BANK.

    (a) Definitions.--In this section:
            (1) Agency.--The term ``agency'' means each of the 
        following:
                    (A) An Executive agency (as defined in section 105 
                of title 5, United States Code, except that the term 
                also includes the United States Postal Service and the 
                United States Patent and Trademark Office).
                    (B) Congress and any other entity in the 
                legislative branch.
                    (C) A court and any other entity in the judicial 
                branch.
            (2) Bank.--The term ``Bank'' means the Federal Energy Bank 
        established by subsection (b).
            (3) Energy efficiency project.--The term ``energy 
        efficiency project'' means a project that assists an agency in 
        meeting or exceeding the energy efficiency requirements of--
                    (A) part 3 of title V of the National Energy 
                Conservation Policy Act (42 U.S.C. 8251 et seq.);
                    (B) subtitle F of title I of the Energy Policy Act 
                of 1992 and the amendments made by that subtitle (106 
                Stat. 2843); and
                    (C) applicable Executive orders, including 
                Executive Order Nos. 12759 and 13123.
        Such term shall include water conservation and renewable energy 
        projects.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (5) Total utility payments.--The term ``total utility 
        payments'' means payments made to supply electricity, natural 
        gas, water, and any other form of energy to provide the 
        heating, ventilation, air conditioning, lighting, and other 
        energy needs of an agency facility.
    (b) Establishment of Bank.--
            (1) In general.--There is established in the Treasury of 
        the United States a trust fund to be known as the ``Federal 
        Energy Bank'', consisting of--
                    (A) such amounts as are appropriated to the Bank 
                under subsection (f);
                    (B) such amounts as are transferred to the Bank 
                under paragraph (2);
                    (C) such amounts as are repaid to the Bank under 
                subsection (c)(2)(D); and
                    (D) any interest earned on investment of amounts in 
                the Bank under paragraph (3).
            (2) Transfers to bank.--
                    (A) In general.--At the beginning of each of fiscal 
                years 2002, 2003, and 2004, each agency shall transfer 
                to the Secretary of the Treasury, for deposit in the 
                Bank, an amount equal to 5 percent of the total utility 
                payments paid by the agency in the preceding fiscal 
                year.
                    (B) Utilities paid for as part of rental 
                payments.--The Secretary shall by regulation establish 
                a formula by which the appropriate portion of a rental 
                payment that covers the cost of utilities shall be 
                considered to be a utility payment for the purposes of 
                subparagraph (A).
            (3) Investment of funds.--The Secretary of the Treasury 
        shall invest such portion of funds in the Bank as is not, in 
        the Secretary's judgment, required to meet current withdrawals. 
        Investments may be made only in interest-bearing obligations of 
        the United States.
    (c) Loans From the Bank.--
            (1) In general.--The Secretary of the Treasury shall 
        transfer from the Bank to the Secretary such amounts as are 
        appropriated to carry out the loan program under paragraph (2).
            (2) Loan program.--
                    (A) In general.--In accordance with subsection (d), 
                the Secretary, in consultation with the Secretary of 
                Defense, Administrator of the General Services 
                Administration and the Office of Administration and 
                Budget within the Executive Office of the President, 
                shall establish a program to loan amounts from the Bank 
                to any agency that submits an application satisfactory 
                to the Secretary in order to finance an energy 
                efficiency project. The Bank is authorized to begin 
                operation in fiscal year 2003 and receive and approve 
                funding for energy efficiency projects subject to 
                funding availability in fiscal year 2003.
                    (B) Performance contracting funding.--The Secretary 
                shall not make a loan under this section for a project 
                for which funding is available and is acceptable to the 
                requesting agency under title VIII of the National 
                Energy Conservation Policy Act (42 U.S.C. 8287 et 
                seq.).
                    (C) Purposes of loan.--
                            (i) In general.--A loan under this section 
                        may be made to pay the costs of--
                                    (I) an energy efficiency project 
                                identification and design of an energy 
                                efficiency project, and energy metering 
                                plans and equipment for purposes of new 
                                and existing building energy systems 
                                and verifications of energy savings of 
                                an energy savings performance contract; 
                                or
                                    (II) development and administration 
                                of an energy savings performance 
                                contract or utility energy service 
                                agreement.
                            (ii) Limitation.--An agency may use not 
                        more than 15 percent of the amount of a loan 
                        under clause (i)(I) to pay the costs of 
                        administration and proposal development 
                        (including data collection and energy surveys).
                    (D) Repayments.--
                            (i) In general.--An agency shall repay to 
                        the Bank the principal amount of the energy 
                        efficiency project loan plus interest at a rate 
                        determined by the President, in consultation 
                        with the Secretary and the Secretary of the 
                        Treasury. The repayment period shall be 10 
                        years in the case of water conservation and 
                        renewable energy projects.
                            (ii) Waiver.--The Secretary may waive the 
                        requirement of clause (i) if the Secretary 
                        determines that payment of interest by an 
                        agency is not required to sustain the needs of 
                        the Bank in making energy efficiency project 
                        loans.
                    (E) Agency energy budgets.--Until a loan is repaid, 
                an agency budget submitted to Congress for a fiscal 
                year shall not be reduced by the value of energy 
                savings accrued as a result of the energy conservation 
                measure implemented with funds from the Bank.
                    (F) Availability of funds.--An agency shall not 
                rescind or reprogram funds made available by this 
                section. Funds loaned to an agency shall be retained by 
                the agency until expended, without regard to fiscal 
                year limitation.
    (d) Selection Criteria.--
            (1) In general.--The Secretary shall establish criteria for 
        the selection of energy efficiency projects to be awarded loans 
        in accordance with paragraph (2).
            (2) Selection criteria.--The Secretary may make loans only 
        for energy efficiency projects that--
                    (A) are technically feasible;
                    (B) are determined to be cost-effective using life 
                cycle cost methods established by the Secretary by 
                regulation;
                    (C) include a measurement and management component 
                to--
                            (i) commission energy savings for new 
                        Federal facilities; and
                            (ii) monitor and improve energy efficiency 
                        management at existing Federal facilities;
                    (D) have a project payback period of 10 years or 
                less; and
                    (E) gives funding priority to projects with the 
                quickest payback and least total cost.
    (e) Reports and Audits.--
            (1) Reports to the secretary.--Not later than 1 year after 
        the installation of an energy efficiency project that has a 
        total cost of more than $1,000,000, and each year thereafter, 
        an agency shall submit to the Secretary a report that--
                    (A) states whether the project meets or fails to 
                meet the energy savings projections for the project; 
                and
                    (B) for each project that fails to meet the energy 
                savings projections, states the reasons for the failure 
                and describes proposed remedies.
            (2) Audits.--The Secretary may audit any energy efficiency 
        project financed with funding from the Bank to assess the 
        project's performance.
            (3) Reports to congress.--At the end of each fiscal year, 
        the Secretary shall submit to the Committee on Energy and 
        Commerce of the House of Representatives and the Committee on 
        Energy and Natural Resources of the Senate a report on the 
        operations of the Bank, including a statement of the total 
        receipts into the Bank, and the total expenditures from the 
        Bank to each agency.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for each of the fiscal years 
2002 through 2008 to carry out this section.

SEC. 126. ADVANCED BUILDING EFFICIENCY TESTBED.

    (a) Establishment.--The Secretary of Energy shall establish an 
Advanced Building Efficiency Testbed program for the development, 
testing, and demonstration of advanced engineering systems, components, 
and materials to enable innovations in building technologies. The 
program shall evaluate government and industry building efficiency 
concepts, and demonstrate the ability of next generation buildings to 
support individual and organizational productivity and health as well 
as flexibility and technological change to improve environmental 
sustainability.
    (b) Participants.--The program established under subsection (a) 
shall be led by a university having demonstrated experience with the 
application of intelligent workplaces and advanced building systems in 
improving the quality of built environments. Such university shall also 
have the ability to combine the expertise from more than 12 academic 
fields, including electrical and computer engineering, computer 
science, architecture, urban design, and environmental and mechanical 
engineering. Such university shall partner with other universities and 
entities who have established programs and the capability of advancing 
innovative building efficiency technologies.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy to carry out this section 
$18,000,000 for fiscal year 2002, to remain available until expended, 
of which $6,000,000 shall be provided to the lead university described 
in subsection (b), and the remainder shall be provided equally to each 
of the other participants referred to in subsection (b).

SEC. 127. USE OF INTERVAL DATA IN FEDERAL BUILDINGS.

    Section 543 of the National Energy Conservation Policy Act (42 
U.S.C. 8253) is amended by adding at the end the following new 
subsection:
    ``(h) Use of Interval Data in Federal Buildings.--Not later than 
January 1, 2003, each agency shall utilize, to the maximum extent 
practicable, for the purposes of efficient use of energy and reduction 
in the cost of electricity consumed in its Federal buildings, interval 
consumption data that measure on a real time or daily basis consumption 
of electricity in its Federal buildings. To meet the requirements of 
this subsection each agency shall prepare and submit at the earliest 
opportunity pursuant to section 548(a) to the Secretary, a plan 
describing how the agency intends to meet such requirements, including 
how it will designate personnel primarily responsible for achieving 
such requirements, and otherwise implement this subsection.''.

SEC. 128. REVIEW OF ENERGY SAVINGS PERFORMANCE CONTRACT PROGRAM.

    Within 180 days after the date of the enactment of this Act, the 
Secretary of Energy shall complete a review of the Energy Savings 
Performance Contract program to identify statutory, regulatory, and 
administrative obstacles that prevent Federal agencies from fully 
utilizing the program. In addition, this review shall identify all 
areas for increasing program flexibility and effectiveness, including 
audit and measurement verification requirements, accounting for energy 
use in determining savings, contracting requirements, and energy 
efficiency services covered. The Secretary shall report these findings 
to the Committee on Energy and Commerce of the House of Representatives 
and the Committee on Energy and Natural Resources of the Senate, and 
shall implement identified administrative and regulatory changes to 
increase program flexibility and effectiveness to the extent that such 
changes are consistent with statutory authority.

SEC. 129. CAPITOL COMPLEX.

    (a) Energy Infrastructure.--The Architect of the Capitol, building 
on the Master Plan Study completed in July 2000, shall commission a 
study to evaluate the energy infrastructure of the Capital Complex to 
determine how the infrastructure could be augmented to become more 
energy efficient, using unconventional and renewable energy resources, 
in a way that would enable the Complex to have reliable utility service 
in the event of power fluctuations, shortages, or outages.
    (b) Authorization.--There is authorized to be appropriated to the 
Architect of the Capitol to carry out this section, not more than 
$2,000,000 for fiscal years after the enactment of this Act.

                       Subtitle C--State Programs

SEC. 131. AMENDMENTS TO STATE ENERGY PROGRAMS.

    (a) State Energy Conservation Plans.--Section 362 of the Energy 
Policy and Conservation Act (42 U.S.C. 6322) is amended by inserting at 
the end the following new subsection:
    ``(g) The Secretary shall, at least once every three years, invite 
the Governor of each State to review and, if necessary, revise the 
energy conservation plan of such State submitted under subsection (b) 
or (e). Such reviews should consider the energy conservation plans of 
other States within the region, and identify opportunities and actions 
carried out in pursuit of common energy conservation goals.''.
    (b) State Energy Efficiency Goals.--Section 364 of the Energy 
Policy and Conservation Act (42 U.S.C. 6324) is amended by inserting 
``Each State energy conservation plan with respect to which assistance 
is made available under this part on or after the date of the enactment 
of Energy Advancement and Conservation Act of 2001, shall contain a 
goal, consisting of an improvement of 25 percent or more in the 
efficiency of use of energy in the State concerned in the calendar year 
2010 as compared to the calendar year 1990, and may contain interim 
goals.'' after ``contain interim goals.''.
    (c) Authorization of Appropriations.--Section 365(f) of the Energy 
Policy and Conservation Act (42 U.S.C. 6325(f)) is amended by striking 
``for fiscal years 1999 through 2003 such sums as may be necessary'' 
and inserting ``$75,000,000 for fiscal year 2002, $100,000,000 for 
fiscal years 2003 and 2004, $125,000,000 for fiscal year 2005''.

SEC. 132. REAUTHORIZATION OF ENERGY CONSERVATION PROGRAM FOR SCHOOLS 
              AND HOSPITALS.

    Section 397 of the Energy Policy and Conservation Act (42 U.S.C. 
6371f) is amended by striking ``2003'' and inserting ``2010''.

SEC. 133. AMENDMENTS TO WEATHERIZATION ASSISTANCE PROGRAM.

    Section 422 of the Energy Conservation and Production Act (42 
U.S.C. 6872) is amended by striking ``for fiscal years 1999 through 
2003 such sums as may be necessary'' and inserting ``$250,000,000 for 
fiscal year 2002, $325,000,000 for fiscal year 2003, $400,000,000 for 
fiscal year 2004, and $500,000,000 for fiscal year 2005''.

SEC. 134. LIHEAP.

    (a) Authorization of Appropriations.--Section 2602(b) of the Low-
Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621(b)) is 
amended by striking the first sentence and inserting the following: 
``There are authorized to be appropriated to carry out the provisions 
of this title (other than section 2607A), $3,400,000,000 for each of 
fiscal years 2001 through 2005.''.
    (b) GAO Study.--The Comptroller General of the United States shall 
conduct a study to determine--
            (1) the extent to which Low-Income Home Energy Assistance 
        (LIHEAP) and other government energy subsidies paid to 
        consumers discourage energy conservation and energy efficiency 
        investments; and
            (2) the extent to which the goals of conservation and 
        assistance for low income households could be simultaneously 
        achieved through cash income supplements that do not 
        specifically target energy, thereby maintaining incentives for 
        wise use of expensive forms of energy, or through other means.

SEC. 135. HIGH PERFORMANCE PUBLIC BUILDINGS.

    (a) Program Establishment and Administration.--
            (1) Establishment.--There is established in the Department 
        of Energy the High Performance Public Buildings Program (in 
        this section referred to as the ``Program'').
            (2) In general.--The Secretary of Energy may, through the 
        Program, make grants--
                    (A) to assist units of local government in the 
                production, through construction or renovation of 
                buildings and facilities they own and operate, of high 
                performance public buildings and facilities that are 
                healthful, productive, energy efficient, and 
                environmentally sound;
                    (B) to State energy offices to administer the 
                program of assistance to units of local government 
                pursuant to this section; and
                    (C) to State energy offices to promote 
                participation by units of local government in the 
                Program.
            (3) Grants to assist units of local government.--Grants 
        under paragraph (2)(A) for new public buildings shall be used 
        to achieve energy efficiency performance that reduces energy 
        use at least 30 percent below that of a public building 
        constructed in compliance with standards prescribed in Chapter 
        8 of the 2000 International Energy Conservation Code, or a 
        similar State code intended to achieve substantially equivalent 
        results. Grants under paragraph (2)(A) for existing public 
        buildings shall be used to achieve energy efficiency 
        performance that reduces energy use below the public building 
        baseline consumption, assuming a 3-year, weather-normalized 
        average for calculating such baseline. Grants under paragraph 
        (2)(A) shall be made to units of local government that have--
                    (A) demonstrated a need for such grants in order to 
                respond appropriately to increasing population or to 
                make major investments in renovation of public 
                buildings; and
                    (B) made a commitment to use the grant funds to 
                develop high performance public buildings in accordance 
                with a plan developed and approved pursuant to 
                paragraph (5)(A).
            (4) Other grants.--
                    (A) Grants for administration.--Grants under 
                paragraph (2)(B) shall be used to evaluate compliance 
                by units of local government with the requirements of 
                this section, and in addition may be used for--
                            (i) distributing information and materials 
                        to clearly define and promote the development 
                        of high performance public buildings for both 
                        new and existing facilities;
                            (ii) organizing and conducting programs for 
                        local government personnel, architects, 
                        engineers, and others to advance the concepts 
                        of high performance public buildings;
                            (iii) obtaining technical services and 
                        assistance in planning and designing high 
                        performance public buildings; and
                            (iv) collecting and monitoring data and 
                        information pertaining to the high performance 
                        public building projects.
                    (B) Grants to promote participation.--Grants under 
                paragraph (2)(C) may be used for promotional and 
                marketing activities, including facilitating private 
                and public financing, promoting the use of energy 
                service companies, working with public building users, 
                and communities, and coordinating public benefit 
                programs.
            (5) Implementation.--
                    (A) Plans.--A grant under paragraph (2)(A) shall be 
                provided only to a unit of local government that, in 
                consultation with its State office of energy, has 
                developed a plan that the State energy office 
                determines to be feasible and appropriate in order to 
                achieve the purposes for which such grants are made.
                    (B) Supplementing grant funds.--State energy 
                offices shall encourage qualifying units of local 
                government to supplement their grant funds with funds 
                from other sources in the implementation of their 
                plans.
    (b) Allocation of Funds.--
            (1) In general.--Except as provided in paragraph (3), funds 
        appropriated to carry out this section shall be provided to 
        State energy offices.
            (2) Purposes.--Except as provided in paragraph (3), funds 
        appropriated to carry out this section shall be allocated as 
        follows:
                    (A) Seventy percent shall be used to make grants 
                under subsection (a)(2)(A).
                    (B) Fifteen percent shall be used to make grants 
                under subsection (a)(2)(B).
                    (C) Fifteen percent shall be used to make grants 
                under subsection (a)(2)(C).
            (3) Other funds.--The Secretary of Energy may retain not to 
        exceed $300,000 per year from amounts appropriated under 
        subsection (c) to assist State energy offices in coordinating 
        and implementing the Program. Such funds may be used to develop 
        reference materials to further define the principles and 
        criteria to achieve high performance public buildings.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy to carry out this section such 
sums as may be necessary for each of the fiscal years 2002 through 
2010.
    (d) Report to Congress.--The Secretary of Energy shall conduct a 
biennial review of State actions implementing this section, and the 
Secretary shall report to Congress on the results of such reviews. In 
conducting such reviews, the Secretary shall assess the effectiveness 
of the calculation procedures used by the States in establishing 
eligibility of units of local government for funding under this 
section, and may assess other aspects of the State program to determine 
whether they have been effectively implemented.
    (e) Definitions.--For purposes of this section:
            (1) High performance public building.--The term ``high 
        performance public building'' means a public building which, in 
        its design, construction, operation, and maintenance, maximizes 
        use of unconventional and renewable energy resources and energy 
        efficiency practices, is cost-effective on a life cycle basis, 
        uses affordable, environmentally preferable, durable materials, 
        enhances indoor environmental quality, protects and conserves 
        water, and optimizes site potential.
            (2) Renewable energy.--The term ``renewable energy'' means 
        energy produced by solar, wind, geothermal, hydroelectric, or 
        biomass power.
            (3) Unconventional and renewable energy resources.--The 
        term ``unconventional and renewable energy resources'' means 
        renewable energy, hydrogen, fuel cells, cogeneration, combined 
        heat and power, heat recovery (including by use of a Stirling 
        heat engine), and distributed generation.

          Subtitle D--Energy Efficiency for Consumer Products

SEC. 141. ENERGY STAR PROGRAM.

    (a) Amendment.--The Energy Policy and Conservation Act (42 U.S.C. 
6201 and following) is amended by inserting the following after section 
324:

``SEC. 324A. ENERGY STAR PROGRAM.

    ``(a) In General.--There is established at the Department of Energy 
and the Environmental Protection Agency a program to identify and 
promote energy-efficient products and buildings in order to reduce 
energy consumption, improve energy security, and reduce pollution 
through labeling of products and buildings that meet the highest energy 
efficiency standards. Responsibilities under the program shall be 
divided between the Department of Energy and the Environmental 
Protection Agency consistent with the terms of agreements between the 
two agencies. The Administrator and the Secretary shall--
            ``(1) promote Energy Star compliant technologies as the 
        preferred technologies in the marketplace for achieving energy 
        efficiency and to reduce pollution;
            ``(2) work to enhance public awareness of the Energy Star 
        label; and
            ``(3) preserve the integrity of the Energy Star label.
For the purposes of carrying out this section, there is authorized to 
be appropriated for fiscal years 2002 through 2006 such sums as may be 
necessary, to remain available until expended.
    ``(b) Study of Certain Products and Buildings.--Within 180 days 
after the date of enactment of this section, the Secretary and the 
Administrator, consistent with the terms of agreements between the two 
agencies, shall determine whether the Energy Star label should be 
extended to additional products and buildings, including the following:
            ``(1) Air cleaners.
            ``(2) Ceiling fans.
            ``(3) Light commercial heating and cooling products.
            ``(4) Reach-in refrigerators and freezers.
            ``(5) Telephony.
            ``(6) Vending machines.
            ``(7) Residential water heaters.
            ``(8) Refrigerated beverage merchandisers.
            ``(9) Commercial ice makers.
            ``(10) School buildings.
            ``(11) Retail buildings.
            ``(12) Health care facilities.
            ``(13) Homes.
            ``(14) Hotels and other commercial lodging facilities.
            ``(15) Restaurants and other food service facilities.
            ``(16) Solar water heaters.
            ``(17) Building-integrated photovoltaic systems.
            ``(18) Reflective pigment coatings.
            ``(19) Windows.
            ``(20) Boilers.
            ``(21) Devices to extend the life of motor vehicle oil.
    ``(c) Cool Roofing.--In determining whether the Energy Star label 
should be extended to roofing products, the Secretary and the 
Administrator shall work with the roofing products industry to 
determine the appropriate solar reflective index of roofing 
products.''.
    (b) Table of Contents Amendment.--The table of contents of the 
Energy Policy and Conservation Act is amended by inserting after the 
item relating to section 324 the following new item:

``Sec. 324A. Energy Star program.''.

SEC. 142. LABELING OF ENERGY EFFICIENT APPLIANCES.

    (a) Study.--Section 324(e) of the Energy Policy and Conservation 
Act (42 U.S.C. 6294(e)) is amended as follows:
            (1) By inserting ``(1)'' before ``The Secretary, in 
        consultation''.
            (2) By redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively.
            (3) By adding the following new paragraph at the end:
    ``(2) The Secretary shall make recommendations to the Commission 
within 180 days of the date of enactment of this paragraph regarding 
labeling of consumer products that are not covered products in 
accordance with this section, where such labeling is likely to assist 
consumers in making purchasing decisions and is technologically and 
economically feasible.''.
    (b) Noncovered Products.--Section 324(a)(2) of the Energy Policy 
and Conservation Act (42 U.S.C. 6294(a)(2)) is amended by adding the 
following at the end:
    ``(F) Not later than one year after the date of enactment of this 
subparagraph, the Commission shall initiate a rulemaking to prescribe 
labeling rules under this section applicable to consumer products that 
are not covered products if it determines that labeling of such 
products is likely to assist consumers in making purchasing decisions 
and is technologically and economically feasible.
    ``(G) Not later than three months after the date of enactment of 
this subparagraph, the Commission shall initiate a rulemaking to 
consider the effectiveness of the current consumer products labeling 
program in assisting consumers in making purchasing decisions and 
improving energy efficiency and to consider changes to the label that 
would improve the effectiveness of the label. Such rulemaking shall be 
completed within 15 months of the date of enactment of this 
subparagraph.''.

SEC. 143. APPLIANCE STANDARDS.

    (a) Standards for Household Appliances in Standby Mode.--Section 
325 of the Energy Policy and Conservation Act (42 U.S.C. 6295) is 
amended by adding at the end the following:
    ``(u) Standby Mode Electric Energy Consumption by Household 
Appliances.--(1) In this subsection:
            ``(A) The term `household appliance' means any device that 
        uses household electric current and operates in a standby mode 
        except digital televisions, digital set top boxes, and digital 
        video recorders.
            ``(B) The term `standby mode' means a mode in which a 
        household appliance consumes the least amount of electric 
        energy that the household appliance is capable of consuming 
        without being completely switched off.
    ``(2)(A) Except as provided in subparagraph (B), a household 
appliance that is manufactured in, or imported for sale in, the United 
States on or after the date that is 2 years after the date of enactment 
of this subsection shall not consume in standby mode more than 1 watt.
    ``(B)(i) A household appliance model that, as of the date of 
enactment of this subsection, is recognized under the Energy Star 
program administered by the Administrator of the Environmental 
Protection Agency and the Secretary shall have until January 1, 2005, 
to meet the standard under subparagraph (A).
    ``(ii) In the case of analog televisions, the Secretary shall 
prescribe, on or after the date that is 2 years after the date of 
enactment of this subsection, in accordance with subsections (o) and 
(p) of section 325, an energy conservation standard that is 
technologically feasible and economically justified under section 
325(o)(2)(A) (in lieu of the 1 watt standard under subparagraph (A)).
    ``(3)(A) A manufacturer or importer of a household appliance may 
submit to the Secretary an application for an exemption of the 
household appliance from the standard under paragraph (2).
    ``(B) The Secretary shall grant an exemption for a household 
appliance for which an application is made under subparagraph (A) if 
the applicant provides evidence showing that, and the Secretary 
determines that--
            ``(i) it is not technically feasible to modify the 
        household appliance to enable the household appliance to meet 
        the standard;
            ``(ii) the standard is incompatible with an energy 
        efficiency standard applicable to the household appliance under 
        another subsection; or
            ``(iii) the cost of electricity that a typical consumer 
        would save in operating the household appliance meeting the 
        standard would not equal the increase in the price of the 
        household appliance that would be attributable to the 
        modifications that would be necessary to enable the household 
        appliance to meet the standard by the earlier of--
                    ``(I) the date that is 7 years after the date of 
                purchase of the household appliance; or
                    ``(II) the end of the useful life of the household 
                appliance.
    ``(C) If the Secretary determines that it is not technically 
feasible to modify a household appliance to meet the standard under 
paragraph (2), the Secretary shall establish a different standard for 
the household appliance in accordance with the criteria under 
subsection (l).
    ``(4)(A) Not later than 1 year after the date of enactment of this 
subsection, the Secretary shall establish a test procedure for 
determining the amount of consumption of power by a household appliance 
operating in standby mode.
    ``(B) In establishing the test procedure, the Secretary shall 
consider--
            ``(i) international test procedures under development;
            ``(ii) test procedures used in connection with the Energy 
        Star program; and
            ``(iii) test procedures used for measuring power 
        consumption in standby mode in other countries.
    ``(5) Further reduction of standby power consumption.--The 
Secretary shall provide technical assistance to manufacturers in 
achieving further reductions in standby mode electric energy 
consumption by household appliances.
    ``(v) Standby Mode Electric Energy Consumption by Digital 
Televisions, Digital Set Top Boxes, and Digital Video Recorders.--The 
Secretary shall initiate on January 1, 2007 a rulemaking to prescribe, 
in accordance with subsections (o) and (p), an energy conservation 
standard of standby mode electric energy consumption by digital 
television sets, digital set top boxes, and digital video recorders. 
The Secretary shall issue a final rule prescribing such standards not 
later than 18 months thereafter. In determining whether a standard 
under this section is technologically feasible and economically 
justified under section 325(o)(2)(A), the Secretary shall consider the 
potential effects on market penetration by digital products covered 
under this section, and shall consider any recommendations by the FCC 
regarding such effects.''.
    (2) Section 325(n)(1) of the Energy Policy and Conservation Act (42 
U.S.C. 6295(n)(1)) is amended by striking ``(11), and in paragraphs 
(13) and''.
    (b) Standards for Noncovered Products.--Section 325(m) of the 
Energy Policy and Conservation Act (42 U.S.C. 6295(m)) is amended as 
follows:
            (1) Inserting ``(1)'' before ``After''.
            (2) Inserting the following at the end:
    (2) ``Not later than one year after the date of enactment of the 
Energy Advancement and Conservation Act of 2001, the Secretary shall 
conduct a rulemaking to determine whether consumer products not 
classified as a covered product under section 322(a)(1) through (18) 
meet the criteria of section 322(b)(1). If the Secretary finds that a 
consumer product not classified as a covered product meets the criteria 
of section 322(b)(1), he shall prescribe, in accordance with 
subsections (o) and (p), an energy conservation standard for such 
consumer product, if such standard is reasonably probable to be 
technologically feasible and economically justified within the meaning 
of subsection (o)(2)(A).''.
    (c) Consumer Education on Energy Efficiency Benefits of Air 
Conditioning, Heating and Ventilation Maintenance.--Section 337 of the 
Energy Policy and Conservation Act (42 U.S.C. 6307) is amended by 
adding the following new subsection after subsection (b):
    ``(c) HVAC Maintenance.--For the purpose of ensuring that installed 
air conditioning and heating systems operate at their maximum rated 
efficiency levels, the Secretary shall, within 180 days of the date of 
enactment of this subsection, develop and implement a public education 
campaign to educate homeowners and small business owners concerning the 
energy savings resulting from regularly scheduled maintenance of air 
conditioning, heating, and ventilating systems. In developing and 
implementing this campaign, the Secretary shall consider support by the 
Department of public education programs sponsored by trade and 
professional or energy efficiency organizations. The public service 
information shall provide sufficient information to allow consumers to 
make informed choices from among professional, licensed (where State or 
local licensing is required) contractors. There are authorized to be 
appropriated to carry out this subsection $5,000,000 for fiscal years 
2002 and 2003 in addition to amounts otherwise appropriated in this 
part.''.
    (d) Efficiency Standards for Furnace Fans, Ceiling Fans, and Cold 
Drink Vending Machines..--
            (1) Definitions.--Section 321 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6291) is amended by adding the 
        following at the end thereof:
            ``(32) The term `residential furnace fan' means an electric 
        fan installed as part of a furnace for purposes of circulating 
        air through the system air filters, the heat exchangers or 
        heating elements of the furnace, and the duct work.
            ``(33) The terms `residential central air conditioner fan' 
        and `heat pump circulation fan' mean an electric fan installed 
        as part of a central air conditioner or heat pump for purposes 
        of circulating air through the system air filters, the heat 
        exchangers of the air conditioner or heat pump, and the duct 
        work.
            ``(34) The term `suspended ceiling fan' means a fan 
        intended to be mounted to a ceiling outlet box, ceiling 
        building structure, or to a vertical rod suspended from the 
        ceiling, and which as blades which rotate below the ceiling and 
        consists of an electric motor, fan blades (which rotate in a 
        direction parallel to the floor), an optional lighting kit, and 
        one or more electrical controls (integral or remote) governing 
        fan speed and lighting operation.
            ``(35) The term `refrigerated bottled or canned beverage 
        vending machine' means a machine that cools bottled or canned 
        beverages and dispenses them upon payment.''.
            (2) Testing Requirements.--Section 323 of the Energy Policy 
        and Conservation Act (42 U.S.C. 6293) is amended by adding the 
        following at the end thereof:
    ``(f) Additional Consumer Products.--The Secretary shall within 18 
months after the date of enactment of this subsection prescribe testing 
requirements for residential furnace fans, residential central air 
conditioner fans, heat pump circulation fans, suspended ceiling fans, 
and refrigerated bottled or canned beverage vending machines. Such 
testing requirements shall be based on existing test procedures used in 
industry to the extent practical and reasonable. In the case of 
residential furnace fans, residential central air conditioner fans, 
heat pump circulation fans, and suspended ceiling fans, such test 
procedures shall include efficiency at both maximum output and at an 
output no more than 50 percent of the maximum output.''.
            (3) Standards for Additional Consumer Products.--Section 
        325 of the Energy Policy and Conservation Act (42 U.S.C. 6295) 
        is amended by adding the following at the end thereof:
    ``(w) Residential Furnace Fans, Central Air and Heat Pump 
Circulation Fans, Suspended Ceiling Fans, and Vending Machines.--(1) 
The Secretary shall, within 18 months after the date of enactment of 
this subsection, assess the current and projected future market for 
residential furnace fans, residential central air conditioner and heat 
pump circulation fans, suspended ceiling fans, and refrigerated bottled 
or canned beverage vending machines. This assessment shall include an 
examination of the types of products sold, the number of products in 
use, annual sales of these products, energy used by these products 
sold, the number of products in use, annual sales of these products, 
energy used by these products, estimates of the potential energy 
savings from specific technical improvements to these products, and an 
examination of the cost-effectiveness of these improvements. Prior to 
the end of this time period, the Secretary shall hold an initial 
scoping workshop to discuss and receive input to plans for developing 
minimum efficiency standards for these products.
    ``(2) The Secretary shall within 24 months after the date on which 
testing requirements are prescribed by the Secretary pursuant to 
section 323(f), prescribe, by rule, energy conservation standards for 
residential furnace fans, residential central air conditioner and heat 
pump circulation fans, suspended ceiling fans, and refrigerated bottled 
or canned beverage vending machines. In establishing these standards, 
the Secretary shall use the criteria and procedures contained in 
subsections (l) and (m). Any standard prescribed under this section 
shall apply to products manufactured 36 months after the date such rule 
is published.''.
            (4) Labeling.--Section 324(a) of the Energy Policy and 
        Conservation Act (42 U.S.C. 6294(a)) is amended by adding the 
        following at the end thereof:
    ``(5) The Secretary shall within 6 months after the date on which 
energy conservation standards are prescribed by the Secretary for 
covered products referred to in section 325(w), prescribe, by rule, 
labeling requirements for such products. These requirements shall take 
effect on the same date as the standards prescribed pursuant to section 
325(w).''.
            (5) Covered Products.--Section 322(a) of the Energy Policy 
        and Conservation Act (42 U.S.C. 6292(a)) is amended by 
        redesignating paragraph (19) as paragraph (20) and by inserting 
        after paragraph (18) the following:
            ``(19) Beginning on the effective date for standards 
        established pursuant to subsection (v) of section 325, each 
        product referred to in such subsection (v).''.

                 Subtitle E--Energy Efficient Vehicles

SEC. 151. HIGH OCCUPANCY VEHICLE EXCEPTION.

    (a) In General.--Notwithstanding section 102(a)(1) of title 23, 
United States Code, a State may, for the purpose of promoting energy 
conservation, permit a vehicle with fewer than 2 occupants to operate 
in high occupancy vehicle lanes if such vehicle is a hybrid vehicle or 
is fueled by an alternative fuel.
    (b) Hybrid Vehicle Defined.--In this section, the term ``hybrid 
vehicle'' means a motor vehicle--
            (1) which draws propulsion energy from onboard sources of 
        stored energy which are both--
                    (A) an internal combustion or heat engine using 
                combustible fuel; and
                    (B) a rechargeable energy storage system;
            (2) which, in the case of a passenger automobile or light 
        truck--
                    (A) for 2002 and later model vehicles, has received 
                a certificate of conformity under section 206 of the 
                Clean Air Act (42 U.S.C. 7525) and meets or exceeds the 
                equivalent qualifying California low emission vehicle 
                standard under section 243(e)(2) of the Clean Air Act 
                (42 U.S.C. 7583(e)(2)) for that make and model year; 
                and
                    (B) for 2004 and later model vehicles, has received 
                a certificate that such vehicle meets the Tier II 
                emission level established in regulations prescribed by 
                the Administrator of the Environmental Protection 
                Agency under section 202(i) of the Clean Air Act (42 
                U.S.C. 7521(i)) for that make and model year vehicle; 
                and
            (3) which is made by a manufacturer.
    (c) Alternative Fuel Defined.--In this section, the term 
``alternative fuel'' has the meaning such term has under section 301(2) 
of the Energy Policy Act of 1992 (42 U.S.C. 13211(2)).

SEC. 152. RAILROAD EFFICIENCY.

    (a) Locomotive Technology Demonstration.--The Secretary of Energy 
shall establish a public-private research partnership with railroad 
carriers, locomotive manufacturers, and a world-class research and test 
center dedicated to the advancement of railroad technology, efficiency, 
and safety that is owned by the Federal Railroad Administration and 
operated in the private sector, for the development and demonstration 
of locomotive technologies that increase fuel economy, reduce 
emissions, improve safety, and lower costs.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy $25,000,000 for fiscal year 
2002, $30,000,000 for fiscal year 2003, and $35,000,000 for fiscal year 
2004 for carrying out this section.

SEC. 153. BIODIESEL FUEL USE CREDITS.

    Section 312(c) of the Energy Policy Act of 1992 (42 U.S.C. 
13220(c)) is amended--
            (1) by striking ``Not'' in the subsection heading; and
            (2) by striking ``not''.

SEC. 154. MOBILE TO STATIONARY SOURCE TRADING.

    Within 90 days after the enactment of this section, the 
Administrator of the Environmental Protection Agency is directed to 
commence a review of the Agency's policies regarding the use of mobile 
to stationary source trading of emission credits under the Clean Air 
Act to determine whether such trading can provide both nonattainment 
and attainment areas with additional flexibility in achieving and 
maintaining healthy air quality and increasing use of alternative fuel 
and advanced technology vehicles, thereby reducing United States 
dependence on foreign oil.

                      Subtitle F--Other Provisions

SEC. 161. REVIEW OF REGULATIONS TO ELIMINATE BARRIERS TO EMERGING 
              ENERGY TECHNOLOGY.

    (a) In General.--Each Federal agency shall carry out a review of 
its regulations and standards to determine those that act as a barrier 
to market entry for emerging energy-efficient technologies, including, 
but not limited to, fuel cells, combined heat and power, and 
distributed generation (including small-scale renewable energy).
    (b) Report to Congress.--No later than 18 months after the date of 
enactment of this section, each agency shall provide a report to 
Congress and the President detailing all regulatory barriers to 
emerging energy-efficient technologies, along with actions the agency 
intends to take, or has taken, to remove such barriers.
    (c) Periodic Review.--Each agency shall subsequently review its 
regulations and standards in the manner specified in this section no 
less frequently than every 5 years, and report their findings to 
Congress and the President. Such reviews shall include a detailed 
analysis of all agency actions taken to remove existing barriers to 
emerging energy technologies.

SEC. 162. ADVANCED IDLE ELIMINATION SYSTEMS.

    (a) Definitions.--
            (1) Advanced idle elimination system.--The term ``advanced 
        idle elimination system'' means a device or system of devices 
        that is installed at a truck stop or other location (for 
        example, a loading, unloading, or transfer facility) where 
        vehicles (such as trucks, trains, buses, boats, automobiles, 
        and recreational vehicles) are parked and that is designed to 
        provide to the vehicle the services (such as heat, air 
        conditioning, and electricity) that would otherwise require the 
        operation of the auxiliary or drive train engine or both while 
        the vehicle is stationary and parked.
            (2) Extended idling.--The term ``extended idling'' means 
        the idling of a motor vehicle for a period greater than 60 
        minutes.
    (b) Recognition of Benefits of Advanced Idle Elimination Systems.--
Within 90 days after the date of enactment of this subsection, the 
Administrator of the Environmental Protection Agency is directed to 
commence a review of the Agency's mobile source air emissions models 
used under the Clean Air Act to determine whether such models 
accurately reflect the emissions resulting from extended idling of 
heavy-duty trucks and other vehicles and engines, and shall update 
those models as the Administrator deems appropriate. Additionally, 
within 90-days after the date of enactment of this subsection, the 
Administrator shall commence a review as to the appropriate emissions 
reductions credit that should be allotted under the Clean Air Act for 
the use of advanced idle elimination systems, and whether such credits 
should be subject to an emissions trading system, and shall revise 
Agency regulations and guidance as the Administrator deems appropriate.

SEC. 163. STUDY OF BENEFITS AND FEASIBILITY OF OIL BYPASS FILTRATION 
              TECHNOLOGY.

    (a) Study.--The Secretary of Energy and the Administrator of the 
Environmental Protection Agency shall jointly conduct a study of oil 
bypass filtration technology in motor vehicle engines. The study shall 
analyze and quantify the potential benefits of such technology in terms 
of reduced demand for oil and the potential environmental benefits of 
the technology in terms of reduced waste and air pollution. The 
Secretary and the Administrator shall also examine the feasibility of 
using such technology in the Federal motor vehicle fleet.
    (b) Report.--Not later than 6 months after the enactment of this 
Act, the Secretary of Energy and the Administrator of the Environmental 
Protection Agency shall jointly submit a report containing the results 
of the study conducted under subsection (a) to the Committee on Energy 
and Commerce of the United States House of Representatives and to the 
Committee on Energy and Natural Resources of the United States Senate.

SEC. 164. GAS FLARE STUDY.

    (a) Study.--The Secretary of Energy shall conduct a study of the 
economic feasibility of installing small cogeneration facilities 
utilizing excess gas flares at petrochemical facilities to provide 
reduced electricity costs to customers living within 3 miles of the 
petrochemical facilities. The Secretary shall solicit public comment to 
assist in preparing the report required under subsection (b).
    (b) Report.--Not later than 18 months after the date of the 
enactment of this Act, the Secretary of Energy shall transmit a report 
to the Congress on the results of the study conducted under subsection 
(a).

SEC. 165. TELECOMMUTING STUDY.

    (a) Study Required.--The Secretary, in consultation with 
Commission, and the NTIA, shall conduct a study of the energy 
conservation implications of the widespread adoption of telecommuting 
in the United States.
    (b) Required Subjects of Study.--The study required by subsection 
(a) shall analyze the following subjects in relation to the energy 
saving potential of telecommuting:
            (1) Reductions of energy use and energy costs in commuting 
        and regular office heating, cooling, and other operations.
            (2) Other energy reductions accomplished by telecommuting.
            (3) Existing regulatory barriers that hamper telecommuting, 
        including barriers to broadband telecommunications services 
        deployment.
            (4) Collateral benefits to the environment, family life, 
        and other values.
    (c) Report Required.--The Secretary shall submit to the President 
and the Congress a report on the study required by this section not 
later than 6 months after the date of enactment of this Act. Such 
report shall include a description of the results of the analysis of 
each of the subject described in subsection (b).
    (d) Definitions.--As used in this section:
            (1) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (2) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.
            (3) NTIA.--The term ``NTIA'' means the National 
        Telecommunications and Information Administration of the 
        Department of Commerce.
            (4) Telecommuting.--The term ``telecommuting'' means the 
        performance of work functions using communications 
        technologies, thereby eliminating or substantially reducing the 
        need to commute to and from traditional worksites.

                   TITLE II--AUTOMOBILE FUEL ECONOMY

SEC. 201. AVERAGE FUEL ECONOMY STANDARDS FOR NONPASSENGER AUTOMOBILES.

    Section 32902(a) of title 49, United States Code, is amended--
            (1) by inserting ``(1)'' after ``NonPassenger 
        Automobiles.--''; and
            (2) by adding at the end the following:
    ``(2) The Secretary shall prescribe under paragraph (1) average 
fuel economy standards for automobiles (except passenger automobiles) 
manufactured in model years 2004 through 2010 that are calculated to 
ensure that the aggregate amount of gasoline projected to be used in 
those model years by automobiles to which the standards apply is at 
least 5 billion gallons less than the aggregate amount of gasoline that 
would be used in those model years by such automobiles if they achieved 
only the fuel economy required under the average fuel economy standard 
that applies under this subsection to automobiles (except passenger 
automobiles) manufactured in model year 2002.''.

SEC. 202. CONSIDERATION OF PRESCRIBING DIFFERENT AVERAGE FUEL ECONOMY 
              STANDARDS FOR NONPASSENGER AUTOMOBILES.

    (a) In General.--The Secretary of Transportation shall, in 
prescribing average fuel economy standards under section 32902(a) of 
title 49, United States Code, for automobiles (except passenger 
automobiles) manufactured in model year 2004, consider the potential 
benefits of--
            (1) establishing a weight-based system for automobiles, 
        that is based on the inertia weight, curb weight, gross vehicle 
        weight rating, or another appropriate measure of such 
        automobiles; and
            (2) prescribing different fuel economy standards for 
        automobiles that are subject to the weight-based system.
    (b) Specific Considerations.--In implementing this section the 
Secretary--
            (1) shall consider any recommendations made in the National 
        Academy of Sciences study completed pursuant to the Department 
        of Transportation and Related Agencies Appropriations Act, 2000 
        (Public Law 106-346; 114 Stat. 2763 et seq.); and
            (2) shall evaluate the merits of any weight-based system in 
        terms of motor vehicle safety, energy conservation, and 
        competitiveness of and employment in the United States 
        automotive sector, and if a weight-based system is established 
        by the Secretary a manufacturer may trade credits between or 
        among the automobiles (except passenger automobiles) 
        manufactured by the manufacturer.

SEC. 203. DUAL FUELED AUTOMOBILES.

    (a) Purposes.--The purposes of this section are--
            (1) to extend the manufacturing incentives for dual fueled 
        automobiles, as set forth in subsections (b) and (d) of section 
        32905 of title 49, United States Code, through the 2008 model 
        year; and
            (2) to similarly extend the limitation on the maximum 
        average fuel economy increase for such automobiles, as set 
        forth in subsection (a)(1) of section 32906 of title 49, United 
        States Code.
    (b) Amendments.--
            (1) Manufacturing incentives.--Section 32905 of title 49, 
        United States Code, is amended as follows:
                    (A) Subsections (b) and (d) are each amended by 
                striking ``model years 1993-2004'' and inserting 
                ``model years 1993-2008''.
                    (B) Subsection (f) is amended by striking ``Not 
                later than December 31, 2001, the Secretary'' and 
                inserting ``Not later than December 31, 2005, the 
                Secretary''.
                    (C) Subsection (f)(1) is amended by striking 
                ``model year 2004'' and inserting ``model year 2008''.
                    (D) Subsection (g) is amended by striking ``Not 
                later than September 30, 2000'' and inserting ``Not 
                later than September 30, 2004''.
            (2) Maximum fuel economy increase.--Subsection (a)(1) of 
        section 32906 of title 49, United States Code, is amended as 
        follows:
                    (A) Subparagraph (A) is amended by striking ``the 
                model years 1993-2004'' and inserting ``model years 
                1993-2008''.
                    (B) Subparagraph (B) is amended by striking ``the 
                model years 2005-2008'' and inserting ``model years 
                2009-2012''.

SEC. 204. FUEL ECONOMY OF THE FEDERAL FLEET OF AUTOMOBILES.

    Section 32917 of title 49, United States Code, is amended to read 
as follows:
``Sec. 32917. Standards for executive agency automobiles
    ``(a) Baseline Average Fuel Economy.--The head of each executive 
agency shall determine, for all automobiles in the agency's fleet of 
automobiles that were leased or bought as a new vehicle in fiscal year 
1999, the average fuel economy for such automobiles. For the purposes 
of this section, the average fuel economy so determined shall be the 
baseline average fuel economy for the agency's fleet of automobiles.
    ``(b) Increase of Average Fuel Economy.--The head of an executive 
agency shall manage the procurement of automobiles for that agency in 
such a manner that--
            ``(1) not later than September 30, 2003, the average fuel 
        economy of the new automobiles in the agency's fleet of 
        automobiles is not less than 1 mile per gallon higher than the 
        baseline average fuel economy determined under subsection (a) 
        for that fleet; and
            ``(2) not later than September 30, 2005, the average fuel 
        economy of the new automobiles in the agency's fleet of 
        automobiles is not less than 3 miles per gallon higher than the 
        baseline average fuel economy determined under subsection (a) 
        for that fleet.
    ``(c) Calculation of Average Fuel Economy.--Average fuel economy 
shall be calculated for the purposes of this section in accordance with 
guidance which the Secretary of Transportation shall prescribe for the 
implementation of this section.
    ``(d) Definitions.--In this section:
            ``(1) The term `automobile' does not include any vehicle 
        designed for combat-related missions, law enforcement work, or 
        emergency rescue work.
            ``(2) The term `executive agency' has the meaning given 
        that term in section 105 of title 5.
            ``(3) The term `new automobile', with respect to the fleet 
        of automobiles of an executive agency, means an automobile that 
        is leased for at least 60 consecutive days or bought, by or for 
        the agency, after September 30, 1999.''.

SEC. 205. HYBRID VEHICLES AND ALTERNATIVE VEHICLES.

    (a) In General.--Section 303(b)(1) of the Energy Policy Act of 1992 
is amended by adding the following at the end: ``Of the total number of 
vehicles acquired by a Federal fleet in fiscal years 2004 and 2005, at 
least 5 percent of the vehicles in addition to those covered by the 
preceding sentence shall be alternative fueled vehicles or hybrid 
vehicles and in fiscal year 2006 and thereafter at least 10 percent of 
the vehicles in addition to those covered by the preceding sentence 
shall be alternative fueled vehicles or hybrid vehicles.''.
    (b) Definition.--Section 301 of such Act is amended by striking 
``and'' at the end of paragraph (13), by striking the period at the end 
of paragraph (14) and inserting ``; and'' and by adding at the end the 
following:
    ``(15) The term `hybrid vehicle' means a motor vehicle which draws 
propulsion energy from onboard sources of stored energy which are 
both--
            ``(A) an internal combustion or heat engine using 
        combustible fuel; and
            ``(B) a rechargeable energy storage system.''.

SEC. 206. FEDERAL FLEET PETROLEUM-BASED NONALTERNATIVE FUELS.

    (a) In General.--Title III of the Energy Policy Act of 1992 (42 
U.S.C. 13212 et seq.) is amended as follows:
            (1) By adding at the end thereof the following:

``SEC. 313. CONSERVATION OF PETROLEUM-BASED FUELS BY THE FEDERAL 
              GOVERNMENT FOR LIGHT-DUTY MOTOR VEHICLES.

    ``(a) Purposes.--The purposes of this section are to complement and 
supplement the requirements of section 303 of this Act that Federal 
fleets, as that term is defined in section 303(b)(3), acquire in the 
aggregate a minimum percentage of alternative fuel vehicles, to 
encourage the manufacture and sale or lease of such vehicles 
nationwide, and to achieve, in the aggregate, a reduction in the amount 
of the petroleum-based fuels (other than the alternative fuels defined 
in this title) used by new light-duty motor vehicles acquired by the 
Federal Government in model years 2004 through 2010 and thereafter.
    ``(b) Implementation.--In furtherance of such purposes, such 
Federal fleets in the aggregate shall reduce the purchase of petroleum-
based nonalternative fuels for such fleets beginning October 1, 2003, 
through September 30, 2009, from the amount purchased for such fleets 
over a comparable period since enactment of this Act, as determined by 
the Secretary, through the annual purchase, in accordance with section 
304, and the use of alternative fuels for the light-duty motor vehicles 
of such Federal fleets, so as to achieve levels which reflect total 
reliance by such fleets on the consumptive use of alternative fuels 
consistent with the provisions of section 303(b) of this Act. The 
Secretary shall, within 120 days after the enactment of this section, 
promulgate, in consultation with the Administrator of the General 
Services Administration and the Director of the Office of Management 
and Budget and such other heads of entities referenced in section 303 
within the executive branch as such Director may designate, standards 
for the full and prompt implementation of this section by such 
entities. The Secretary shall monitor compliance with this section and 
such standards by all such fleets and shall report annually to the 
Congress, based on reports by the heads of such fleets, on the extent 
to which the requirements of this section and such standards are being 
achieved. The report shall include information on annual reductions 
achieved of petroleum-based fuels and the problems, if any, encountered 
in acquiring alternative fuels and in requiring their use.''.
            (2) By amending section 304(b) of such Act to read as 
        follows:
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary or, as appropriate, the head of each 
Federal fleet subject to the provisions of this section and section 313 
of this Act, such sums as may be necessary to achieve the purposes of 
section 313(a) and the provisions of this section. Such sums shall 
remain available until expended.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by adding at the end of the items relating to title 
III the following:

``Sec. 313. Conservation of petroleum-based fuels by the Federal 
                            Government for light-duty motor 
                            vehicles.''.

SEC. 207. STUDY OF FEASIBILITY AND EFFECTS OF REDUCING USE OF FUEL FOR 
              AUTOMOBILES.

    (a) In General.--Not later than 30 days after the date of the 
enactment of this Act, the Secretary of Transportation shall enter into 
an arrangement with the National Academy of Sciences under which the 
Academy shall study the feasibility and effects of reducing by model 
year 2010, by a significant percentage, the use of fuel for 
automobiles.
    (b) Subjects of Study.--The study under this section shall 
include--
            (1) examination of, and recommendation of alternatives to, 
        the policy under current Federal law of establishing average 
        fuel economy standards for automobiles and requiring each 
        automobile manufacturer to comply with average fuel economy 
        standards that apply to the automobiles it manufactures;
            (2) examination of how automobile manufacturers could 
        contribute toward achieving the reduction referred to in 
        subsection (a);
            (3) examination of the potential of fuel cell technology in 
        motor vehicles in order to determine the extent to which such 
        technology may contribute to achieving the reduction referred 
        to in subsection (a); and
            (4) examination of the effects of the reduction referred to 
        in subsection (a) on--
                    (A) gasoline supplies;
                    (B) the automobile industry, including sales of 
                automobiles manufactured in the United States;
                    (C) motor vehicle safety; and
                    (D) air quality.
    (c) Report.--The Secretary shall require the National Academy of 
Sciences to submit to the Secretary and the Congress a report on the 
findings, conclusion, and recommendations of the study under this 
section by not later than 1 year after the date of the enactment of 
this Act.

                       TITLE III--NUCLEAR ENERGY

                     Subtitle A--General Provisions

SEC. 301. BUDGET STATUS OF NUCLEAR WASTE FUND.

    (a) In General.--Notwithstanding any other provision of law, the 
receipts and disbursements of the Nuclear Waste Fund established under 
section 302 of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222) 
shall not be counted as new budget authority, outlays, receipts, or 
deficit or surplus for purposes of--
            (1) the budget of the United States Government as submitted 
        by the President;
            (2) the congressional budget; or
            (3) the Balanced Budget and Emergency Deficit Control Act 
        of 1985.
    (b) Effect on Paygo Scorecard.--Upon the enactment of this Act, the 
Director of the Office of Management and Budget shall not make any 
estimates of changes in direct spending outlays and receipts under 
section 252(d) of the Balanced Budget and Emergency Deficit Control Act 
of 1985 resulting from the enactment of subsection (a) of this section.

SEC. 302. LICENSE PERIOD.

    Section 103 c. 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 initial duration of the license may not exceed 40 years 
        from the date on which the Commission finds, before operation 
        of the facility, that the acceptance criteria required by 
        section 185 b. are met.''.

SEC. 303. COST RECOVERY FROM GOVERNMENT AGENCIES.

    Section 161 w. of the Atomic Energy Act of 1954 (42 U.S.C. 2201(w)) 
is amended--
            (1) by striking ``for or is issued'' and all that follows 
        through ``1702'' and inserting ``to the Commission for, or is 
        issued by the Commission, a license or certificate'';
            (2) by striking ``483a'' and inserting ``9701''; and
            (3) by striking ``, of applicants for, or holders of, such 
        licenses or certificates''.

SEC. 304. DEPLETED URANIUM HEXAFLUORIDE.

    Section 1(b) of Public Law 105-204 is amended by striking ``fiscal 
year 2002'' and inserting ``fiscal year 2005''.

SEC. 305. NUCLEAR REGULATORY COMMISSION MEETINGS.

    If a quorum of the Nuclear Regulatory Commission gathers to discuss 
official Commission business the discussions shall be recorded, and the 
Commission shall notify the public of such discussions within 15 days 
after they occur. The Commission shall promptly make a transcript of 
the recording available to the public on request, except to the extent 
that public disclosure is exempted or prohibited by law. This section 
shall not apply to a meeting, within the meaning of that term under 
section 552b(a)(2) of title 5, United States Code.

                Subtitle B--Domestic Uranium Fuel Cycle

SEC. 311. PORTSMOUTH COLD STANDBY.

    The Secretary of Energy (in this subtitle referred to as the 
``Secretary'') may use, without need for further appropriations, funds 
from the United States Enrichment Corporation Fund established under 
section 1308 of the Atomic Energy Act of 1954 (other than amounts 
reserved under Public Law 105-204) for the implementation of cold 
standby status at the Portsmouth Gaseous Diffusion Plant, consistent 
with the plan required under section 314(b), in the following amounts:
            (1) $36,000,000 for fiscal year 2002.
            (2) $43,000,000 for fiscal year 2003.
            (3) $43,000,000 for fiscal year 2004.
            (4) $47,000,000 for fiscal year 2005.

SEC. 312. PADUCAH FUNDING.

    The Secretary may use, without need for further appropriations, 
funds from the United States Enrichment Corporation Fund established 
under section 1308 of the Atomic Energy Act of 1954 (other than amounts 
reserved under Public Law 105-204) for the Paducah Gaseous Diffusion 
Plant for activities that do not duplicate the transfer and storage 
operations at the Portsmouth Gaseous Diffusion Plant, $169,000,000 for 
the period encompassing fiscal years 2002 through 2005.

SEC. 313. RESEARCH AND DEVELOPMENT.

    (a) Plan.--Not later than 5 months after the date of the enactment 
of this Act, the Secretary shall transmit to the Congress a detailed 
research and development plan with respect to advanced gas centrifuge 
technology for uranium enrichment.
    (b) Elements.--The plan required under subsection (a) shall--
            (1) identify the technical obstacles to the deployment of 
        an advanced gas centrifuge technology that will be cost 
        competitive with advanced gas centrifuge technologies deployed 
        in other nations, and propose a strategy to overcome those 
        obstacles;
            (2) include plans for the construction of a pilot facility 
        at a Department of Energy-owned Gaseous Diffusion Plant, and 
        for full-scale deployment of advanced gas centrifuge 
        technology, as necessary to move gas centrifuge technology for 
        uranium enrichment from the laboratory to the marketplace, 
        taking into consideration--
                    (A) confirmation of technical performance; and
                    (B) initiation of preliminary plant design and 
                engineering that validates economic projections and 
                considers cost effectiveness, accessibility to 
                infrastructure, turnover activities, schedule, 
                financing mechanisms, and risks of construction;
            (3) provide a process to validate and demonstrate 
        commercial feasibility, if the pilot facility described in 
        paragraph (2) is not constructed;
            (4) set forth a schedule to ensure full-scale deployment, 
        and a strategy to provide a reliable and economical domestic 
        source of uranium enrichment services until such full-scale 
        deployment is completed;
            (5) evaluate the relative merits of full-scale deployment 
        by--
                    (A) private sector companies;
                    (B) a government-owned corporation;
                    (C) a partnership between the private and public 
                sectors; and
                    (D) the Department of Energy,
        using facilities and property at the Portsmouth Gaseous 
        Diffusion Plant or the Paducah Gaseous Diffusion Plant; and
            (6) provide for a competitive process for deployment of the 
        full-scale technology, and assignment of rights to use 
        Department of Energy patents if the Department of Energy does 
        not deploy the technology.
    (c) Public Comment.--Not later than 3 months after the date of the 
enactment of this Act, the Secretary shall make available a draft 
version of the plan for a public comment period of 30 days.
    (d) Implementation.--One month after the plan is transmitted to the 
Congress under subsection (a), the Secretary shall begin to implement 
the plan.
    (e) Funding.--
            (1) Authorization of appropriations.--For the purposes of 
        implementing the plan developed under this section, the 
        Secretary may use, without need for further appropriations, the 
        following amounts from the United States Enrichment Corporation 
        Fund established under section 1308 of the Atomic Energy Act of 
        1954 (other than amounts reserved under Public Law 105-204):
                    (A) $27,000,000 for fiscal year 2002.
                    (B) $40,000,000 for fiscal year 2003.
                    (C) $58,000,000 for fiscal year 2004.
                    (D) $67,000,000 for fiscal year 2005.
                    (E) $62,000,000 for fiscal year 2006.
            (2) Plan.--The Secretary may use, without need for further 
        appropriations, funds from the United States Enrichment 
        Corporation Fund established under section 1308 of the Atomic 
        Energy Act of 1954 (other than amounts reserved under Public 
        Law 105-204) to pay the costs of developing the plan under this 
        section.

SEC. 314. SHORT-TERM RELIABILITY OF DOMESTIC URANIUM ENRICHMENT 
              CAPACITY.

    (a) Criteria.--Not later than 4 months after the date of the 
enactment of this Act, the Secretary shall prepare, and make available 
for a 30-day period of public comment, draft criteria for determining 
when the hot restart of facilities at the Portsmouth Gaseous Diffusion 
Plant may be necessary, if supplies of nuclear fuel are disrupted or 
anticipated to be disrupted, to mitigate the impacts on--
            (1) the supply of nuclear fuel to power plants in the 
        United States; and
            (2) uranium enrichment supply contracts with foreign 
        utilities for which the United States Government is liable for 
        performance in the event of nonperformance by the United States 
        Enrichment Corporation or its successors, or where the United 
        States has obligations under Federal law or treaty.
    (b) Plan.--Not later than 6 months after the date of the enactment 
of this Act, the Secretary shall prepare, and make available for a 30-
day period of public comment, a plan for the hot restart of facilities 
at the Portsmouth Gaseous Diffusion Plant. Such plan shall--
            (1) incorporate the criteria developed under subsection 
        (a);
            (2) provide for uranium enrichment capabilities of up to 
        3,000,000 separative work units per year;
            (3) ensure the capability of producing both higher assay 
        (up to 10 percent U 235) and lower assay (0.7 percent to 4.95 
        percent U 235) fuels;
            (4) include options for the use of the Department of 
        Energy's inventory of natural uranium;
            (5) provide for the retention of sufficient R-114 
        refrigerant to operate the Portsmouth Gaseous Diffusion Plant 
        for 15 years or until there is equivalent replacement uranium 
        enrichment capacity deployed in the United States; and
            (6) include cost estimates for hot restart and annual 
        operating costs of the facility.
    (c) Transmittal to Congress.--Not later than 8 months after the 
date of the enactment of this Act, the Secretary shall transmit to the 
Congress the plan described in subsection (b), including the criteria 
developed under subsection (a).
    (d) Funding.--The Secretary may use, without need for further 
appropriations, funds from the United States Enrichment Corporation 
Fund established under section 1308 of the Atomic Energy Act of 1954 
(other than amounts reserved under Public Law 105-204) to pay the costs 
of developing the criteria and plan under this section.

SEC. 315. COOPERATIVE RESEARCH AND DEVELOPMENT AND SPECIAL 
              DEMONSTRATION PROJECTS FOR THE URANIUM MINING INDUSTRY.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary $10,000,000 for each of fiscal years 
2002, 2003, and 2004 for--
            (1) cooperative, cost-shared, agreements between the 
        Department of Energy and domestic uranium producers to 
        identify, test, and develop improved in situ leaching mining 
        technologies, including low-cost environmental restoration 
        technologies that may be applied to sites after completion of 
        in situ leaching operations; and
            (2) funding for competitively selected demonstration 
        projects with domestic uranium producers relating to--
                    (A) enhanced production with minimal environmental 
                impacts;
                    (B) restoration of well fields; and
                    (C) decommissioning and decontamination activities.
    (b) Domestic Uranium Producer.--For purposes of this section, the 
term ``domestic uranium producer'' has the meaning given that term in 
section 1018(4) of the Energy Policy Act of 1992 (42 U.S.C. 2296b-
7(4)), except that the term shall not include any producer that has not 
produced uranium from domestic reserves on or after July 30, 1998.

SEC. 316. MAINTENANCE OF A VIABLE DOMESTIC URANIUM CONVERSION INDUSTRY.

    There are authorized to be appropriated to the Secretary $800,000 
for contracting with the Nation's sole remaining uranium converter for 
the purpose of performing research and development to improve the 
environmental and economic performance of United States uranium 
conversion operations.

SEC. 317. PROHIBITION OF COMMERCIAL SALES OF URANIUM BY THE UNITED 
              STATES UNTIL 2009.

    Section 3112 of the USEC Privatization Act (42 U.S.C. 2297h-10) is 
amended by adding at the end the following new subsection:
    ``(g) Prohibition on Sales.--Notwithstanding any other provision of 
law, the United States Government shall not sell or transfer any 
uranium (including natural uranium concentrates, natural uranium 
hexafluoride, enriched uranium, depleted uranium, or uranium in any 
other form) through March 23, 2009 (except sales or transfers for use 
by the Tennessee Valley Authority in relation to the Department of 
Energy's HEU or Tritium programs, or the Department or Energy research 
reactor sales program, or any depleted uranium hexaflouride to be 
transferred to a designated Department of Energy contractor in 
conjunction with the planned construction of the Depleted Uranium 
Hexaflouride conversion plants in Portsmouth, Ohio, and Paducah, 
Kentucky, or for emergency purposes in the event of a disruption in 
supply to end users in the United States). The aggregate of sales or 
transfers of uranium by the United States Government after March 23, 
2009, shall not exceed 3,000,000 pounds U<INF>3</INF>O<INF>8</INF> per 
calendar year.''.

SEC. 318. PADUCAH DECONTAMINATION AND DECOMMISSIONING PLAN.

    The Secretary of Energy shall prepare and submit a plan to Congress 
within 180 days after the date of the enactment of this Act that 
establishes scope, cost, schedule, sequence of activities, and 
contracting strategy for--
            (1) the decontamination and decommissioning of the 
        Department of Energy's surplus buildings and facilities at the 
        Paducah Gaseous Diffusion Plant that have no future anticipated 
        reuse; and
            (2) the remediation of Department of Energy Material 
        Storage Areas at the Paducah Gaseous Diffusion Plant.
Such plan shall inventory all surplus facilities and buildings, and 
identify and rank health and safety risks associated with such 
facilities and buildings. Such plan shall inventory all Department of 
Energy Material Storage Areas, and identify and rank health and safety 
risks associated with such Department of Energy Material Storage Areas. 
The Department of Energy shall incorporate these risk factors in 
designing the sequence and schedule for the plan. Such plan shall 
identify funding requirements that are in addition to the expected 
outlays included in the Department of Energy's Environmental Management 
Plan for the Paducah Gaseous Diffusion Plan.

                     TITLE IV--HYDROELECTRIC ENERGY

SEC. 401. 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, and the Secretary of 
the department under whose supervision such reservation falls deems a 
condition to such license to be necessary under the first proviso of 
subsection (e), the license applicant or any other party to the 
licensing proceeding may propose an alternative condition.
    ``(2) Notwithstanding the first proviso of subsection (e), the 
Secretary of the department under whose supervision the reservation 
falls shall accept the proposed alternative condition referred to in 
paragraph (1), and the Commission shall include in the license such 
alternative condition, if the Secretary of the appropriate department 
determines, based on substantial evidence provided by the party 
proposing such alternative condition, that the alternative condition--
            ``(A) provides no less protection for the reservation than 
        provided by the condition deemed necessary 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 compared to the condition deemed necessary by the Secretary.
    ``(3) Within one year after the enactment of this subsection, each 
Secretary concerned shall, by rule, establish a process to 
expeditiously resolve conflicts arising under this subsection.''.
    (b) Alternative Fishways.--Section 18 of the Federal 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 Commission shall require a licensee to 
construct, maintain, or operate a fishway prescribed by the Secretary 
of the Interior or the Secretary of Commerce under this section, the 
licensee or any other party to the proceeding 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 require, the proposed alternative 
referred to in paragraph (1), if the Secretary of the appropriate 
department determines, based on substantial evidence provided by the 
party proposing such alternative, that the alternative--
            ``(A) will be no less effective 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 compared to the fishway initially prescribed by the 
        Secretary.
    ``(3) Within one year after the enactment of this subsection, the 
Secretary of the Interior and the Secretary of Commerce shall each, by 
rule, establish a process to expeditiously resolve conflicts arising 
under this subsection.''

SEC. 402. FERC DATA ON HYDROELECTRIC LICENSING.

    (a) Data Collection Procedures.--The Federal Energy Regulatory 
Commission shall revise its procedures regarding the collection of data 
in connection with the Commission's consideration of hydroelectric 
licenses under the Federal Power Act. Such revised data collection 
procedures shall be designed to provide the Commission with complete 
and accurate information concerning the time and costs to parties 
involved in the licensing process. Such data shall be available for 
each significant stage in the licensing process and shall be designed 
to identify projects with similar characteristics so that analyses can 
be made of the time and costs involved in licensing proceedings based 
upon the different characteristics of those proceedings.
    (b) Reports.--Within 6 months after the date of enactment of this 
Act, the Commission shall notify the Committee on Energy and Commerce 
of the United States House of Representatives and the Committee on 
Energy and Natural Resources of the United States Senate of the 
progress made by the Commission under subsection (a), and within one 
year after such date of enactment, the Commission shall submit a report 
to such Committees specifying the measures taken by the Commission 
pursuant to subsection (a).

                          TITLE V--CLEAN COAL

SEC. 501. SHORT TITLE.

    This title may be cited as the ``National Electricity and 
Environmental Improvement Act''.

SEC. 502. FINDINGS.

    Congress finds that--
            (1) reliable, affordable, increasingly clean electricity 
        will continue to power the growing United States economy;
            (2) an increasing use of electrotechnologies, the desire 
        for continuous environmental improvement, a more competitive 
        electricity market, and concerns about rising energy prices add 
        importance to the need for reliable, affordable, increasingly 
        clean electricity;
            (3) coal, which, as of the date of enactment of this Act, 
        accounts for more than \1/2\ of all electricity generated in 
        the United States, is the most abundant fossil energy resource 
        of the United States;
            (4) coal comprises more than 85 percent of all fossil 
        resources in the United States and exists in quantities 
        sufficient to supply the United States for 250 years at current 
        usage rates;
            (5) investments in electricity generating facility 
        emissions control technology over the past 30 years have 
        reduced the aggregate emissions of pollutants from coal-based 
        generating facilities by 21 percent, even as coal use for 
        electricity generation has nearly tripled;
            (6) continuous improvement in efficiency and environmental 
        performance from electricity generating facilities would allow 
        continued use of coal and preserve less abundant energy 
        resources for other energy uses;
            (7) new methods and equipment for converting coal into 
        electricity can effectively eliminate health-threatening 
        emissions and improve efficiency by as much as 50 percent, but 
        initial deployment of new coal generation methods and equipment 
        entails significant risk that generators may be unable to 
        accept in a newly competitive electricity market; and
            (8) continued environmental improvement in coal-based 
        generation and increasing the production and supply of power 
        generation facilities with less air emissions, with the 
        ultimate goal of near-zero emissions, is important and 
        desirable.

      Subtitle A--Accelerated Clean Coal Power Production Program

SEC. 511. DEFINITIONS.

    In this subtitle:
            (1) Cost and performance goals.--The term ``cost and 
        performance goals'' means the cost and performance goals 
        established under section 512.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 512. COST AND PERFORMANCE GOALS.

    (a) In General.--The Secretary shall perform an assessment that 
establishes cost and performance goals with respect to various coal-
based electric generation facilities, power production strategies, and 
other efforts that would permit the continued cost-competitive use of 
coal for electricity generation, as chemical feedstocks, and as 
transportation fuel in 2007, 2015, and 2020.
    (b) Consultation.--In establishing the cost and performance goals, 
the Secretary shall consult with representatives of--
            (1) the United States coal industry;
            (2) State coal development agencies;
            (3) the electric utility industry;
            (4) railroads and other transportation industries;
            (5) manufacturers of advanced coal-based equipment;
            (6) organizations representing workers;
            (7) organizations formed to--
                    (A) promote the use of coal;
                    (B) further the goals of environmental protection; 
                and
                    (C) promote the production and generation of coal-
                based power from advanced facilities; and
            (8) other appropriate Federal and State agencies.
    (c) Timing.--The Secretary shall--
            (1) not later than 120 days after the date of enactment of 
        this Act, issue a set of draft cost and performance goals for 
        public comment; and
            (2) not later than 180 days after the date of enactment of 
        this Act, after taking into consideration any public comments 
        received, submit to Congress the final cost and performance 
        goals.

SEC. 513. STUDY.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, and once every 2 years thereafter through 2016, the 
Secretary, in cooperation with the Secretary of the Interior and the 
Administrator of the Environmental Protection Agency, shall transmit to 
the Congress a report containing the results of a study to--
            (1) identify methods and equipment that, by themselves or 
        in combination with other efforts, may be capable of achieving 
        the cost and performance goals;
            (2) assess the costs that would be incurred by, and the 
        period of time that would be required for, the production of 
        power generation methods and equipment that, by themselves or 
        in combination with other methods and equipment, contribute to 
        the achievement of the cost and performance goals;
            (3) develop recommendations for the Department of Energy, 
        in cooperation with industry, to develop and implement methods 
        and equipment that, by themselves or in combination with other 
        efforts, achieve the production and generation of coal-based 
        power meeting the cost and performance goals; and
            (4) develop recommendations for additional authorities 
        required to achieve the cost and performance goals.
    (b) Expert Advice.--In carrying out this section, the Secretary 
shall give due weight to the expert advice of representatives of the 
entities described in section 512(b).

SEC. 514. PRODUCTION AND GENERATION OF COAL-BASED POWER.

    (a) In General.--The Secretary shall carry out a program to 
facilitate production and generation of coal-based power through 
methods and equipment under--
            (1) this subtitle;
            (2) the Federal Nonnuclear Energy Research and Development 
        Act of 1974 (42 U.S.C. 5901 et seq.);
            (3) the Energy Reorganization Act of 1974 (42 U.S.C. 5801 
        et seq.); and
            (4) title XIII of the Energy Policy Act of 1992 (42 U.S.C. 
        13331 et seq.).
    (b) Conditions.--The program described in subsection (a) shall be 
designed to achieve the cost and performance goals.

SEC. 515. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to the 
Secretary to carry out sections 512, 513, and 514, $100,000,000 for 
each of the fiscal years 2002 through 2012, to remain available until 
expended.
    (b) Conditions of Authorization.--The authorization of 
appropriations under subsection (a)--
            (1) shall be in addition to authorizations of 
        appropriations in effect on the date of enactment of this Act; 
        and
            (2) shall not be a cap on Department of Energy fossil 
        energy research and development and clean coal technology 
        appropriations.

SEC. 516. CLEAN COAL POWER INITIATIVE.

    (a) In General.--The Secretary shall establish a clean coal power 
initiative to facilitate the production and generation of power from 
advanced coal-based methods and equipment applicable to new or existing 
power plants, including coproduction plants.
    (b) Requirements.--The methods and equipment to be addressed under 
the initiative--
            (1) shall be methods and equipment that, by themselves or 
        in combination with other methods and equipment, advance 
        efficiency and environmental performance, and increase the 
        supply of power and promote cost competitiveness, well beyond 
        that which is in operation or has been demonstrated as of the 
        date of enactment of this Act; and
            (2) may include methods and equipment that have not 
        previously been envisioned for the production and generation of 
        coal-based power.
    (c) Plan.--Not later than 120 days after the date of enactment of 
this Act, the Secretary shall transmit to Congress a plan to carry out 
subsection (a) that includes a description of--
            (1) the program elements and management structure to be 
        used;
            (2) milestones to be achieved with respect to the 
        production and generation of coal-based power methods and 
        equipment; and
            (3) the activities proposed to be conducted at facilities 
        that serve or are located at new or existing coal-based 
        electric generation units having at least 50 megawatts 
        nameplate rating, including improvements to allow the units to 
        achieve 1 or more of the following:
                    (A) An overall design efficiency improvement of not 
                less than 3 percent as compared with the efficiency of 
                the unit as operated as of the date of enactment of 
                this Act and before any retrofit, repowering, 
                replacement, or installation.
                    (B) A significant improvement in, or new 
                alternative method or equipment to enhance, the 
                environmental performance related to the control of 
                sulfur dioxide, nitrogen oxide, or mercury in a manner 
                that is different and well below the cost of activities 
                at facilities that are in operation or have been in 
                operation as of the date of enactment of this Act.
                    (C) A means of recycling or reusing a significant 
                portion of coal combustion or gasification wastes or 
                byproducts produced by coal-based generating units, 
                excluding practices that are generally available as of 
                the date of enactment of this Act.
                    (D) A means to capture, separate, and reuse or 
                dispose of carbon dioxide that is different and well 
                below the cost of methods and equipment that are in 
                operation or have been in operation as of the date of 
                enactment of this Act.

SEC. 517. FINANCIAL ASSISTANCE.

    (a) In General.--Not later than 180 days after the date on which 
the Secretary transmits to Congress the plan under section 516(c), the 
Secretary shall solicit proposals for projects that serve or are 
located at new or existing facilities designed to achieve 1 or more of 
the levels of performance set forth in section 516(c)(3).
    (b) Project Criteria.--A solicitation under subsection (a) may 
include solicitation of a proposal for a project to demonstrate--
            (1) an overall design efficiency improvement of not less 3 
        percentage points as compared with the efficiency of the unit 
        as operated as of the date of enactment of this Act and with no 
        increase in the potential to emit sulfur dioxide, nitrogen 
        oxide, particulate matter, mercury, or carbon monoxide;
            (2) a reduction of emissions to a level of not more than--
                    (A)(i) in the case of sulfur dioxide--
                            (I) in the case of coal with a potential 
                        combustion concentration sulfur emission of 1.2 
                        or more pounds per million British thermal 
                        units of heat input, 5 percent of the potential 
                        combustion concentration sulfur dioxide 
                        emissions; or
                            (II) in the case of a coal with a potential 
                        combustion concentration of less than 1.2 
                        pounds of per million British thermal units of 
                        heat input, 15 percent of the potential 
                        combustion concentration of sulfur dioxide 
                        emissions;
                    (ii) in the case of nitrogen oxide--
                            (I) in the case of a boiler other than a 
                        cyclone-fired boiler, emissions of 0.1 pound 
                        per million British thermal units of heat; or
                            (II) in the case of a cyclone-fired boiler, 
                        15 percent of the uncontrolled nitrogen oxide 
                        emissions from the boiler; or
                    (iii) in the case of particulate matter, emissions 
                of 0.02 pound per million British thermal units of heat 
                input; or
                    (B) the emission levels for the pollutants 
                identified in subparagraph (A) that are specified in 
                the new source performance standards of the Clean Air 
                Act (42 U.S.C. 7411) in effect at the time of 
                construction, installation, or retrofitting of the 
                advanced coal-based method or equipment for the 
                category of source if they are lower than the levels 
                specified in subparagraph (A); or
            (3) the production of coal combustion byproducts that are 
        capable of obtaining economic values significantly greater than 
        byproducts produced as of the date of enactment of this Act 
        with no increase in the potential to emit sulfur dioxide, 
        nitrogen oxide, particulate matter, mercury, or carbon 
        monoxide.
    (c) Financial Assistance.--The Secretary shall provide financial 
assistance to projects that are likely to--
            (1) achieve overall cost reductions in the utilization of 
        coal to generate useful forms of energy;
            (2) improve the competitiveness of coal among various forms 
        of energy in order to maintain a diversity of fuel choices in 
        the United States to meet electricity generation requirements;
            (3) achieve, in a cost-effective manner, 1 or more of the 
        criteria described in the solicitation; and
            (4) demonstrate methods and equipment that are applicable 
        to 25 percent of the electricity generating facilities that use 
        coal as the primary feedstock as of the date of enactment of 
        this Act.
    (d) Federal Share.--The Federal share of the cost of a project 
funded under this section shall not exceed 50 percent.
    (e) Funding.--To carry out this section, the Secretary may use any 
unobligated funds available to the Secretary and any funds obligated to 
any project selected under the clean coal technology program that 
become unobligated.

Subtitle B--Credit for Emission Reductions and Efficiency Improvements 
        in Existing Coal-Based Electricity Generation Facilities

SEC. 521. CREDIT FOR INVESTMENT IN QUALIFYING CLEAN COAL TECHNOLOGY.

    (a) Allowance of Qualifying Clean Coal Technology Unit Credit.--
Section 46 of the Internal Revenue Code of 1986 (relating to amount of 
credit) is amended by striking ``and'' at the end of paragraph (2), by 
striking the period at the end of paragraph (3) and inserting ``, 
and'', and by adding at the end the following:
            ``(4) the qualifying clean coal technology unit credit.''.
    (b) Amount of Qualifying Clean Coal Technology Unit Credit.--
Subpart E of part IV of subchapter A of chapter 1 of the Internal 
Revenue Code of 1986 (relating to rules for computing investment 
credit) is amended by inserting after section 48 the following:

``SEC. 48A. QUALIFYING CLEAN COAL TECHNOLOGY UNIT CREDIT.

    ``(a) In General.--For purposes of section 46, the qualifying clean 
coal technology unit credit for any taxable year is an amount equal to 
10 percent of the qualified investment in a qualifying system of 
continuous emission control for such taxable year.
    ``(b) Qualifying System of Continuous Emission Control.--
            ``(1) In general.--For purposes of subsection (a), the term 
        `qualifying system of continuous emission control' means a 
        system of the taxpayer which--
                    ``(A) serves, is added to, or retrofits an existing 
                coal-based electricity generation unit, the 
                construction, installation, or retrofitting of which is 
                completed by the taxpayer (but only with respect to 
                that portion of the basis which is properly 
                attributable to such construction, installation, or 
                retrofitting),
                    ``(B) reduces the discharge into the atmosphere of 
                1 or more of the following pollutants to not more 
                than--
                            ``(i) 5 percent of the potential combustion 
                        concentration sulfur dioxide emissions for a 
                        coal with a potential combustion concentration 
                        sulfur emission of 1.2 lb/million Btu of heat 
                        input or greater,
                            ``(ii) 15 percent of the potential 
                        combustion concentration sulfur dioxide 
                        emissions for a coal with a potential 
                        combustion concentration sulfur emission of 
                        less than 1.2 lb/million Btu of heat input,
                            ``(iii) nitrogen oxide emissions of 0.l lb 
                        per million Btu of heat input from other than 
                        cyclone-fired boilers,
                            ``(iv) 15 percent of the uncontrolled 
                        nitrogen oxide emissions from cyclone-fired 
                        boilers,
                            ``(v) particulate emission of 0.02 lb per 
                        million Btu of heat input, and
                            ``(vi) the emission levels specified in the 
                        new source performance standards of the Clean 
                        Air Act (42 U.S.C. 7411) in force at the time 
                        of construction, installation or retrofitting 
                        of the qualifying system of continuous emission 
                        control for the category of source if such 
                        level is lower than the levels specified in 
                        clause (i), (ii), (iii), (iv), or (v),
                    ``(C) is depreciable under section 167,
                    ``(D) has a useful life of not less than 4 years, 
                and
                    ``(E) is located in the United States.
            ``(2) Special rule for sale-leasebacks.--For purposes of 
        subparagraph (A) of paragraph (1), in the case of a unit 
        which--
                    ``(A) is originally placed in service by a person, 
                and
                    ``(B) is sold and leased back by such person, or is 
                leased to such person, within 3 months after the date 
                such unit was originally placed in service, for a 
                period of not less than 12 years,
        such unit shall be treated as originally placed in service not 
        earlier than the date on which such property is used under the 
        leaseback (or lease) referred to in subparagraph (B). The 
        preceding sentence shall not apply to any property if the 
        lessee and lessor of such property make an election under this 
        sentence. Such an election, once made, may be revoked only with 
        the consent of the Secretary.
    ``(c) Existing Coal-Based Electricity Generation Unit.--For 
purposes of subsection (a), the term `existing coal-based electricity 
generating unit' means, with respect to any taxable year, a steam 
generator-turbine unit which uses coal to produce 75 percent or more of 
its output as electricity and was operated commercially before the 
effective date of this section.
    ``(d) Limit on Qualifying Clean Coal Technology Unit Credit.--For 
purposes of subsection (a), the credit shall be applicable to not more 
than the first $100,000,000 of qualifying investment in a qualifying 
system of continuous emission control at any 1 existing coal-based 
electricity generating unit.
    ``(e) Qualified Investment.--For purposes of subsection (a), the 
term `qualified investment' means, with respect to any taxable year, 
the basis of a qualifying system of continuous emission control placed 
in service by the taxpayer during such taxable year.
    ``(f) Qualified Progress Expenditures.--
            ``(1) Increase in qualified investment.--In the case of a 
        taxpayer who has made an election under paragraph (5), the 
        amount of the qualified investment of such taxpayer for the 
        taxable year (determined under subsection (e) without regard to 
        this subsection) shall be increased by an amount equal to the 
        aggregate of each qualified progress expenditure for the 
        taxable year with respect to progress expenditure property.
            ``(2) Progress expenditure property defined.--For purposes 
        of this subsection, the term `progress expenditure property' 
        means any property being constructed by or for the taxpayer and 
        which it is reasonable to believe will qualify as a qualifying 
        system of continuous emission control which is being 
        constructed by or for the taxpayer when it is placed in 
        service.
            ``(3) Qualified progress expenditures defined.--For 
        purposes of this subsection--
                    ``(A) Self-constructed property.--In the case of 
                any self-constructed property, the term `qualified 
                progress expenditures' means the amount which, for 
                purposes of this subpart, is properly chargeable 
                (during such taxable year) to capital account with 
                respect to such property.
                    ``(B) Nonself-constructed property.--In the case of 
                nonself-constructed property, the term `qualified 
                progress expenditures' means the amount paid during the 
                taxable year to another person for the construction of 
                such property.
            ``(4) Other definitions.--For purposes of this subsection--
                    ``(A) Self-constructed property.--The term `self-
                constructed property' means property for which it is 
                reasonable to believe that more than half of the 
                construction expenditures will be made directly by the 
                taxpayer.
                    ``(B) Nonself-constructed property.--The term 
                `nonself-constructed property' means property which is 
                not self-constructed property.
                    ``(C) Construction, etc.--The term `construction' 
                includes reconstruction and erection, and the term 
                `constructed' includes reconstructed and erected.
                    ``(D) Only construction of qualifying system of 
                continuous emission control to be taken into account.--
                Construction shall be taken into account only if, for 
                purposes of this subpart, expenditures therefor are 
                properly chargeable to capital account with respect to 
                the property.
            ``(5) Election.--An election under this subsection may be 
        made at such time and in such manner as the Secretary may by 
        regulations prescribe. Such an election shall apply to the 
        taxable year for which made and to all subsequent taxable 
        years. Such an election, once made, may not be revoked except 
        with the consent of the Secretary.
    ``(g) Coordination With Other Credits.--This section shall not 
apply to any property with respect to which the rehabilitation credit 
under section 47 or the energy credit under section 48 is allowed 
unless the taxpayer elects to waive the application of such credit to 
such property.
    ``(h) Termination.--This section shall not apply with respect to 
any qualified investment made more than 10 years after the effective 
date of this section.''.
    (c) Recapture.--Section 50(a) of the Internal Revenue Code of 1986 
(relating to other special rules) is amended by adding at the end the 
following:
            ``(6) Special rules relating to qualifying system of 
        continuous emission control.--For purposes of applying this 
        subsection in the case of any credit allowable by reason of 
        section 48A, the following shall apply:
                    ``(A) General rule.--In lieu of the amount of the 
                increase in tax under paragraph (1), the increase in 
                tax shall be an amount equal to the investment tax 
                credit allowed under section 38 for all prior taxable 
                years with respect to a qualifying system of continuous 
                emission control (as defined by section 48A(b)(1)) 
                multiplied by a fraction whose numerator is the number 
                of years remaining to fully depreciate under this title 
                the qualifying system of continuous emission control 
                disposed of, and whose denominator is the total number 
                of years over which such unit would otherwise have been 
                subject to depreciation. For purposes of the preceding 
                sentence, the year of disposition of the qualifying 
                system of continuous emission control property shall be 
                treated as a year of remaining depreciation.
                    ``(B) Property ceases to qualify for progress 
                expenditures.--Rules similar to the rules of paragraph 
                (2) shall apply in the case of qualified progress 
                expenditures for a qualifying system of continuous 
                emission control under section 48A, except that the 
                amount of the increase in tax under subparagraph (A) of 
                this paragraph shall be substituted in lieu of the 
                amount described in such paragraph (2).
                    ``(C) Application of paragraph.--This paragraph 
                shall be applied separately with respect to the credit 
                allowed under section 38 regarding a qualifying system 
                of continuous emission control.''.
    (d) Transitional Rule.--Section 39(d) of the Internal Revenue Code 
of 1986 (relating to transitional rules) is amended by adding at the 
end the following:
            ``(11) No carryback of section 48a credit before effective 
        date.--No portion of the unused business credit for any taxable 
        year which is attributable to the qualifying clean coal 
        technology unit credit determined under section 48A may be 
        carried back to a taxable year ending before the date of 
        enactment of section 48A.''.
    (e) Technical Amendments.--
            (1) Section 49(a)(1)(C) of the Internal Revenue Code of 
        1986 is amended by striking ``and'' at the end of clause (ii), 
        by striking the period at the end of clause (iii) and inserting 
        ``, and'', and by adding at the end the following:
                            ``(iv) the portion of the basis of any 
                        qualifying system of continuous emission 
                        control attributable to any qualified 
                        investment (as defined by section 48A(e)).''.
            (2) Section 50(a)(4) of such Code is amended by striking 
        ``and (2)'' and inserting ``, (2), and (6)''.
            (3) Section 50(c) of such Code is amended by adding at the 
        end the following:
            ``(6) Nonapplication.--Paragraphs (1) and (2) shall not 
        apply to any qualifying clean coal technology unit credit under 
        section 48A.''.
            (4) The table of sections for subpart E of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 48 the following:

                              ``Sec. 48A. Qualifying clean coal 
                                        technology unit credit.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2001, under rules similar to the 
rules of section 48(m) of the Internal Revenue Code of 1986 (as in 
effect on the day before the date of enactment of the Revenue 
Reconciliation Act of 1990).

SEC. 522. CREDIT FOR PRODUCTION FROM A QUALIFYING CLEAN COAL TECHNOLOGY 
              UNIT.

    (a) Credit for Production From a Qualifying Clean Coal Technology 
Unit.--Subpart D of part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 (relating to business related credits) is 
amended by adding at the end the following:

``SEC. 45G. CREDIT FOR PRODUCTION FROM A QUALIFYING CLEAN COAL 
              TECHNOLOGY UNIT.

    ``(a) General Rule.--For purposes of section 38, the qualifying 
clean coal technology production credit of any taxpayer for any taxable 
year is equal to the product of--
            ``(1) the applicable amount of clean coal technology 
        production credit, multiplied by
            ``(2) the kilowatt hours of electricity produced by the 
        taxpayer during such taxable year at a qualifying clean coal 
        technology unit during the 10-year period beginning on the date 
        the unit was returned to service after retrofit, repowering, or 
        replacement.
    ``(b) Applicable Amount.--
            ``(1) In general.--For purposes of this section, the 
        applicable amount of clean coal technology production credit is 
        equal to $0.0034.
            ``(2) Inflation adjustment factor.--For calendar years 
        after 2001, the applicable amount of clean coal technology 
        production credit shall be adjusted by multiplying such amount 
        by the inflation adjustment factor for the calendar year in 
        which the amount is applied. If any amount as increased under 
        the preceding sentence is not a multiple of 0.01 cent, such 
        amount shall be rounded to the nearest multiple of 0.01 cent.
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Qualifying clean coal technology unit.--The term 
        `qualifying clean coal technology unit' means a unit of the 
        taxpayer which--
                    ``(A) is an existing coal-based electricity 
                generating steam generator-turbine unit,
                    ``(B) has a nameplate capacity rating of not more 
                than 300,000 kilowatts, and
                    ``(C) has been retrofitted, repowered, or replaced 
                with a clean coal technology within 10 years after the 
                effective date of this section.
            ``(2) Clean coal technology.--The term `clean coal 
        technology' means technology which--
                    ``(A) uses coal to produce 50 percent or more of 
                its thermal output as electricity, including advanced 
                pulverized coal or atmospheric fluidized bed 
                combustion, pressurized fluidized bed combustion, 
                integrated gasification combined cycle, or any other 
                technology for the production of electricity,
                    ``(B) has a design heat rate not less than 500 Btu/
                kWh below that of the existing unit before it is 
                retrofit, repowered, or replaced with the qualifying 
                clean coal technology,
                    ``(C) has a maximum design heat rate of not more 
                than 9,500 Btu/kWh when the design coal has a heat 
                content of more than 9,000 Btu per pound,
                    ``(D) has a maximum design heat rate of not more 
                than 10,500 Btu/kWh when the design coal has a heat 
                content of 9,000 Btu per pound or less, and
                    ``(E) reduces the discharge into the atmosphere of 
                1 or more of the following pollutants to not more 
                than--
                            ``(i) 5 percent of the potential combustion 
                        concentration sulfur dioxide emissions for a 
                        coal with a potential combustion concentration 
                        sulfur emission of 1.2 lb/million Btu of heat 
                        input or greater,
                            ``(ii) 15 percent of the potential 
                        combustion concentration sulfur dioxide 
                        emissions for a coal with a potential 
                        combustion concentration sulfur emission of 
                        less than 1.2 lb/million Btu of heat input,
                            ``(iii) nitrogen oxide emissions of 0.1 lb 
                        per million Btu of heat input from other than 
                        cyclone-fired boilers,
                            ``(iv) 15 percent of the uncontrolled 
                        nitrogen oxide emissions from cyclone-fired 
                        boilers,
                            ``(v) particulate emissions of 0.02 lb per 
                        million Btu of heat input, and
                            ``(vi) the emission levels specified in the 
                        new source performance standards of the Clean 
                        Air Act (42 U.S.C. 7411) in effect at the time 
                        of construction, installation or retrofitting 
                        of the qualifying clean coal technology unit 
                        for the category of source if such level is 
                        lower than the levels specified in clause (i), 
                        (ii), (iii), (iv), or (v).
            ``(3) Application of certain rules.--The rules of 
        paragraphs (3), (4), and (5) of section 45 shall apply.
            ``(4) Inflation adjustment factor.--The term `inflation 
        adjustment factor' means, with respect to a calendar year, a 
        fraction the numerator of which is the GDP implicit price 
        deflator for the preceding calendar year and the denominator of 
        which is the GDP implicit price deflator for the calendar year 
        2001.
            ``(5) GDP implicit price deflator.--The term `GDP implicit 
        price deflator' means the most recent revision of the implicit 
        price deflator for the gross domestic product as computed by 
        the Department of Commerce before March 15 of the calendar 
        year.
    ``(d) Coordination With Other Credits.--This section shall not 
apply to any property with respect to which the qualifying clean coal 
technology unit credit under section 48A is allowed unless the taxpayer 
elects to waive the application of such credit to such property.''.
    (b) Credit Treated as Business Credit.--Section 38(b) of the 
Internal Revenue Code of 1986 is amended by striking ``plus'' at the 
end of paragraph (14), by striking the period at the end of paragraph 
(15) and inserting ``, plus'', and by adding at the end the following:
            ``(16) the qualifying clean coal technology production 
        credit determined under section 45G(a).''.
    (c) Transitional Rule.--Section 39(d) of the Internal Revenue Code 
of 1986 (relating to transitional rules), as amended by section 201(d), 
is amended by adding at the end the following:
            ``(12) No carryback of section 45g credit before effective 
        date.--No portion of the unused business credit for any taxable 
        year which is attributable to the qualifying clean coal 
        technology production credit determined under section 45G may 
        be carried back to a taxable year ending before the date of 
        enactment of section 45G.''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following:

                              ``Sec. 45G. Credit for production from a 
                                        qualifying clean coal 
                                        technology unit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to production after the date of enactment of this Act.

 Subtitle C--Incentives for Early Commercial Applications of Advanced 
                        Clean Coal Technologies

SEC. 531. CREDIT FOR INVESTMENT IN QUALIFYING ADVANCED CLEAN COAL 
              TECHNOLOGY.

    (a) Allowance of Qualifying Advanced Clean Coal Technology Facility 
Credit.--Section 46 of the Internal Revenue Code of 1986 (relating to 
amount of credit), as amended by section 201(a), is amended by striking 
``and'' at the end of paragraph (3), by striking the period at the end 
of paragraph (4) and inserting ``, and'', and by adding at the end the 
following:
            ``(5) the qualifying advanced clean coal technology 
        facility credit.''.
    (b) Amount of Qualifying Advanced Clean Coal Technology Facility 
Credit.--Subpart E of part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 (relating to rules for computing 
investment credit), as amended by section 521(b), is amended by 
inserting after section 48A the following:

``SEC. 48B. QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY FACILITY CREDIT.

    ``(a) In General.--For purposes of section 46, the qualifying 
advanced clean coal technology facility credit for any taxable year is 
an amount equal to 10 percent of the qualified investment in a 
qualifying advanced clean coal technology facility for such taxable 
year.
    ``(b) Qualifying Advanced Clean Coal Technology Facility.--
            ``(1) In general.--For purposes of subsection (a), the term 
        `qualifying advanced clean coal technology facility' means a 
        facility of the taxpayer which--
                    ``(A)(i)(I) original use of which commences with 
                the taxpayer, or
                    ``(II) is a retrofitted or repowered conventional 
                technology facility, the retrofitting or repowering of 
                which is completed by the taxpayer (but only with 
                respect to that portion of the basis which is properly 
                attributable to such retrofitting or repowering), or
                    ``(ii) is acquired through purchase (as defined by 
                section 179(d)(2)),
                    ``(B) is depreciable under section 167,
                    ``(C) has a useful life of not less than 4 years,
                    ``(D) is located in the United States, and
                    ``(E) uses qualifying advanced clean coal 
                technology.
            ``(2) Special rule for sale-leasebacks.--For purposes of 
        subparagraph (A) of paragraph (1), in the case of a facility 
        which--
                    ``(A) is originally placed in service by a person, 
                and
                    ``(B) is sold and leased back by such person, or is 
                leased to such person, within 3 months after the date 
                such facility was originally placed in service, for a 
                period of not less than 12 years,
        such facility shall be treated as originally placed in service 
        not earlier than the date on which such property is used under 
        the leaseback (or lease) referred to in subparagraph (B). The 
        preceding sentence shall not apply to any property if the 
        lessee and lessor of such property make an election under this 
        sentence. Such an election, once made, may be revoked only with 
        the consent of the Secretary.
    ``(c) Qualifying Advanced Clean Coal Technology.--For purposes of 
paragraph (1)--
            ``(1) In general.--The term `qualifying advanced clean coal 
        technology' means, with respect to clean coal technology--
                    ``(A) which has--
                            ``(i) multiple applications, with a 
                        combined capacity of not more than 5,000 
                        megawatts (4,000 megawatts before 2009), of 
                        advanced pulverized coal or atmospheric 
                        fluidized bed combustion technology--
                                    ``(I) installed as a new, retrofit, 
                                or repowering application,
                                    ``(II) operated between 2000 and 
                                2012, and
                                    ``(III) having a design net heat 
                                rate of not more than 9,500 Btu per 
                                kilowatt hour when the design coal has 
                                a heat content of more than 9,000 Btu 
                                per pound, or a design net heat rate of 
                                not more than 9,900 Btu per kilowatt 
                                hour when the design coal has a heat 
                                content of 9,000 Btu per pound or less,
                            ``(ii) multiple applications, with a 
                        combined capacity of not more than 1,000 
                        megawatts (500 megawatts before 2009 and 750 
                        megawatts before 2013), of pressurized 
                        fluidized bed combustion technology--
                                    ``(I) installed as a new, retrofit, 
                                or repowering application,
                                    ``(II) operated between 2000 and 
                                2016, and
                                    ``(III) having a design net heat 
                                rate of not more than 8,400 Btu per 
                                kilowatt hour when the design coal has 
                                a heat content of more than 9,000 Btu 
                                per pound, or a design net heat rate of 
                                not more than 9,900 Btu's per kilowatt 
                                hour when the design coal has a heat 
                                content of 9,000 Btu per pound or less, 
                                and
                            ``(iii) multiple applications, with a 
                        combined capacity of not more than 2,000 
                        megawatts (1,000 megawatts before 2009 and 
                        1,500 megawatts before 2013), of integrated 
                        gasification combined cycle technology, with or 
                        without fuel or chemical co-production--
                                    ``(I) installed as a new, retrofit, 
                                or repowering application,
                                    ``(II) operated between 2000 and 
                                2016,
                                    ``(III) having a design net heat 
                                rate of not more than 8,550 Btu per 
                                kilowatt hour when the design coal has 
                                a heat content of more than 9,000 Btu 
                                per pound, or a design net heat rate of 
                                not more than 9,900 Btu per kilowatt 
                                hour when the design coal has a heat 
                                content of 9,000 Btu per pound or less, 
                                and
                                    ``(IV) having a net thermal 
                                efficiency on any fuel or chemical co-
                                production of not less than 39 percent 
                                (higher heating value), or
                            ``(iv) multiple applications, with a 
                        combined capacity of not more than 2,000 
                        megawatts (1,000 megawatts before 2009 and 
                        1,500 megawatts before 2013) of technology for 
                        the production of electricity--
                                    ``(I) installed as a new, retrofit, 
                                or repowering application,
                                    ``(II) operated between 2000 and 
                                2016, and
                                    ``(III) having a carbon emission 
                                rate which is not more than 85 percent 
                                of conventional technology, and
                    ``(B) which reduces the discharge into the 
                atmosphere of 1 or more of the following pollutants to 
                not more than--
                            ``(i) 5 percent of the potential combustion 
                        concentration sulfur dioxide emissions for a 
                        coal with a potential combustion concentration 
                        sulfur emission of 1.2 lb/million Btu of heat 
                        input or greater,
                            ``(ii) 15 percent of the potential 
                        combustion concentration sulfur dioxide 
                        emissions for a coal with a potential 
                        combustion concentration sulfur emission of 
                        less than 1.2 lb/million Btu of heat input,
                            ``(iii) nitrogen oxide emissions of 0.1 lb 
                        per million Btu of heat input from other than 
                        cyclone-fired boilers,
                            ``(iv) 15 percent of the uncontrolled 
                        nitrogen oxide emissions from cyclone-fired 
                        boilers,
                            ``(v) particulate emissions of 0.02 lb per 
                        million Btu of heat input, and
                            ``(vi) the emission levels specified in the 
                        new source performance standards of the Clean 
                        Air Act (42 U.S.C. 7411) in effect at the time 
                        of retrofitting, repowering, or replacement of 
                        the qualifying clean coal technology unit for 
                        the category of source if such level is lower 
                        than the levels specified in clause (i), (ii), 
                        (iii), (iv), or (v).
            ``(2) Exceptions.--Such term shall not include any projects 
        receiving or scheduled to receive funding under the Clean Coal 
        Technology Program, or the Power Plant Improvement administered 
        by the Secretary of the Department of Energy or a Qualifying 
        Clean Coal Technology Unit as defined in section 45G(c)(1).
    ``(d) Clean Coal Technology.--The term `clean coal technology' 
means advanced technology which uses coal to produce 75 percent or more 
of its thermal output as electricity including advanced pulverized coal 
or atmospheric fluidized bed combustion, pressurized fluidized bed 
combustion, integrated gasification combined cycle with or without fuel 
or chemical co-production, and any other technology for the production 
of electricity which exceeds the performance of conventional 
technology.
    ``(e) Conventional Technology.--The term `conventional technology' 
means--
            ``(1) coal-fired combustion technology with a design net 
        heat rate of not less than 9,500 Btu per kilowatt hour (HHV) 
        and a carbon equivalents emission rate of not more than 0.54 
        pounds of carbon per kilowatt hour when the design coal has a 
        heat content of more than 9,000 Btu per pound,
            ``(2) coal-fired combustion technology with a design net 
        heat rate of not less than 10,500 Btu per kilowatt hour (HHV) 
        and a carbon equivalents emission rate of not more than 0.60 
        pounds of carbon per kilowatt hour when the design coal has a 
        heat content of 9,000 Btu per pound or less, or
            ``(3) natural gas-fired combustion technology with a design 
        net heat rate of not less than 7,500 Btu per kilowatt hour 
        (HHV) and a carbon equivalents emission rate of not more than 
        0.24 pounds of carbon per kilowatt hour.
    ``(f) Design Net Heat Rate.--The design net heat rate shall be 
based on the design annual heat input to and the design annual net 
electrical output from the qualifying advanced clean coal technology 
(determined without regard to such technology's co-generation of 
steam).
    ``(g) Selection Criteria.--Selection criteria for qualifying 
advanced clean coal technology facilities--
            ``(1) shall be established by the Secretary of Energy as 
        part of a competitive solicitation,
            ``(2) shall include primary criteria of minimum design net 
        heat rate, maximum design thermal efficiency, environmental 
        performance, and lowest cost to the government, and
            ``(3) shall include supplemental criteria as determined 
        appropriate by the Secretary of Energy.
    ``(h) Qualified Investment.--For purposes of subsection (a), the 
term `qualified investment' means, with respect to any taxable year, 
the basis of a qualifying advanced clean coal technology facility 
placed in service by the taxpayer during such taxable year.
    ``(i) Qualified Progress Expenditures.--
            ``(1) Increase in qualified investment.--In the case of a 
        taxpayer who has made an election under paragraph (5), the 
        amount of the qualified investment of such taxpayer for the 
        taxable year (determined under subsection (c) without regard to 
        this section) shall be increased by an amount equal to the 
        aggregate of each qualified progress expenditure for the 
        taxable year with respect to progress expenditure property.
            ``(2) Progress expenditure property defined.--For purposes 
        of this subsection, the term `progress expenditure property' 
        means any property being constructed by or for the taxpayer and 
        which it is reasonable to believe will qualify as a qualifying 
        advanced clean coal technology facility which is being 
        constructed by or for the taxpayer when it is placed in 
        service.
            ``(3) Qualified progress expenditures defined.--For 
        purposes of this subsection--
                    ``(A) Self-constructed property.--In the case of 
                any self-constructed property, the term `qualified 
                progress expenditures' means the amount which, for 
                purposes of this subpart, is properly chargeable 
                (during such taxable year) to capital account with 
                respect to such property.
                    ``(B) Nonself-constructed property.--In the case of 
                nonself-constructed property, the term `qualified 
                progress expenditures' means the amount paid during the 
                taxable year to another person for the construction of 
                such property.
            ``(4) Other definitions.--For purposes of this subsection--
                    ``(A) Self-constructed property.--The term `self-
                constructed property' means property for which it is 
                reasonable to believe that more than half of the 
                construction expenditures will be made directly by the 
                taxpayer.
                    ``(B) Nonself-constructed property.--The term 
                `nonself-constructed property' means property which is 
                not self-constructed property.
                    ``(C) Construction, etc..--The term `construction' 
                includes reconstruction and erection, and the term 
                `constructed' includes reconstructed and erected.
                    ``(D) Only construction of qualifying advanced 
                clean coal technology facility to be taken into 
                account.--Construction shall be taken into account only 
                if, for purposes of this subpart, expenditures therefor 
                are properly chargeable to capital account with respect 
                to the property.
            ``(5) Election.--An election under this subsection may be 
        made at such time and in such manner as the Secretary may by 
        regulations prescribe. Such an election shall apply to the 
        taxable year for which made and to all subsequent taxable 
        years. Such an election, once made, may not be revoked except 
        with the consent of the Secretary.
    ``(j) Coordination With Other Credits.--This section shall not 
apply to any property with respect to which the rehabilitation credit 
under section 47 or the energy credit under section 48 is allowed 
unless the taxpayer elects to waive the application of such credit to 
such property.
    ``(k) Termination.--This section shall not apply with respect to 
any qualified investment made more than 10 years after the effective 
date of this section.''.
    (c) Recapture.--Section 50(a) of the Internal Revenue Code of 1986 
(relating to other special rules), as amended by section 201(c), is 
amended by adding at the end the following:
            ``(7) Special rules relating to qualifying advanced clean 
        coal technology facility.--For purposes of applying this 
        subsection in the case of any credit allowable by reason of 
        section 48B, the following shall apply:
                    ``(A) General rule.--In lieu of the amount of the 
                increase in tax under paragraph (1), the increase in 
                tax shall be an amount equal to the investment tax 
                credit allowed under section 38 for all prior taxable 
                years with respect to a qualifying advanced clean coal 
                technology facility (as defined by section 48B(b)(1)) 
                multiplied by a fraction whose numerator is the number 
                of years remaining to fully depreciate under this title 
                the qualifying advanced clean coal technology facility 
                disposed of, and whose denominator is the total number 
                of years over which such facility would otherwise have 
                been subject to depreciation. For purposes of the 
                preceding sentence, the year of disposition of the 
                qualifying advanced clean coal technology facility 
                property shall be treated as a year of remaining 
                depreciation.
                    ``(B) Property ceases to qualify for progress 
                expenditures.--Rules similar to the rules of paragraph 
                (2) shall apply in the case of qualified progress 
                expenditures for a qualifying advanced clean coal 
                technology facility under section 48B, except that the 
                amount of the increase in tax under subparagraph (A) of 
                this paragraph shall be substituted in lieu of the 
                amount described in such paragraph (2).
                    ``(C) Application of paragraph.--This paragraph 
                shall be applied separately with respect to the credit 
                allowed under section 38 regarding a qualifying 
                advanced clean coal technology facility.''.
    (d) Transitional Rule.--Section 39(d) of the Internal Revenue Code 
of 1986 (relating to transitional rules), as amended by section 202(c), 
is amended by adding at the end the following:
            ``(13) No carryback of section 48b credit before effective 
        date.--No portion of the unused business credit for any taxable 
        year which is attributable to the qualifying advanced clean 
        coal technology facility credit determined under section 48B 
        may be carried back to a taxable year ending before the date of 
        enactment of section 48B.''.
    (e) Technical Amendments.--
            (1) Section 49(a)(1)(C) of the Internal Revenue Code of 
        1986, as amended by section 521(e)(1), is amended by striking 
        ``and'' at the end of clause (iii), by striking the period at 
        the end of clause (iv) and inserting ``, and'', and by adding 
        at the end the following:
                            ``(v) the portion of the basis of any 
                        qualifying advanced clean coal technology 
                        facility attributable to any qualified 
                        investment (as defined by section 48B(c)).''.
            (2) Section 50(a)(4) of such Code, is amended by striking 
        ``and (6)'' and inserting ``(6), and (7)''.
            (3) Section 50(c)(6) of such Code, is amended by inserting 
        ``or any advanced clean coal technology facility credit under 
        section 48B'' after ``section 48A''.
            (4) The table of sections for subpart E of part IV of 
        subchapter A of chapter 1 of such Code, is amended by inserting 
        after the item relating to section 48A the following:

                              ``Sec. 48B. Qualifying advanced clean 
                                        coal technology facility 
                                        credit.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to periods after December 31, 2001, under rules similar to the 
rules of section 48(m) of the Internal Revenue Code of 1986 (as in 
effect on the day before the date of enactment of the Revenue 
Reconciliation Act of 1990).

SEC. 532. CREDIT FOR PRODUCTION FROM QUALIFYING ADVANCED CLEAN COAL 
              TECHNOLOGY.

    (a) Credit for Production From Qualifying Advanced Clean Coal 
Technology.--Subpart D of part IV of subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 (relating to business related credits), 
as amended by section 522(a), is amended by adding at the end the 
following:

``SEC. 45H. CREDIT FOR PRODUCTION FROM QUALIFYING ADVANCED CLEAN COAL 
              TECHNOLOGY.

    ``(a) General Rule.--For purposes of section 38, the qualifying 
advanced clean coal technology production credit of any taxpayer for 
any taxable year is equal to--
            ``(1) the applicable amount of advanced clean coal 
        technology production credit, multiplied by
            ``(2) the sum of--
                    ``(A) the kilowatt hours of electricity, plus
                    ``(B) each 3,413 Btu of fuels or chemicals,
        produced by the taxpayer during such taxable year at a 
        qualifying advanced clean coal technology facility during the 
        10-year period beginning on the date the facility was 
        originally placed in service.
    ``(b) Applicable Amount.--For purposes of this section, the 
applicable amount of advanced clean coal technology production credit 
with respect to production from a qualifying advanced clean coal 
technology facility shall be determined as follows:
            ``(1) Where the design coal has a heat content of more than 
        9,000 Btu per pound:
                    ``(A) In the case of a facility originally placed 
                in service before 2009, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 heat rate, Btu/kWh (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not more than 8,400.........         $.0060                $.0038
More than 8,400 but not more         $.0025                $.0010
 than 8,550.
More than 8,550 but not more         $.0010                $.0010.
 than 8,750.
------------------------------------------------------------------------

                    ``(B) In the case of a facility originally placed 
                in service after 2008 and before 2013, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 heat rate, Btu/kWh (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not more than 7,770.........         $.0105                $.0090
More than 7,770 but not more         $.0085                $.0068
 than 8,125.
More than 8,125 but not more         $.0075                $.0055.
 than 8,350.
------------------------------------------------------------------------

                    ``(C) In the case of a facility originally placed 
                in service after 2012 and before 2017, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 heat rate, Btu/kWh (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not more than 7,380.........         $.0140                 $.01
More than 7,380 but not more         $.0120                $.0090.
 than 7,720.
------------------------------------------------------------------------

            ``(2) Where the design coal has a heat content of not more 
        than 9,000 Btu per pound:
                    ``(A) In the case of a facility originally placed 
                in service before 2009, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 heat rate, Btu/kWh (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not more than 8,500.........         $.0060                $.0038
More than 8,500 but not more         $.0025                $.0010
 than 8,650.
More than 8,650 but not more         $.0010                $.0010.
 than 8,750.
------------------------------------------------------------------------

                    ``(B) In the case of a facility originally placed 
                in service after 2008 and before 2013, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 heat rate, Btu/kWh (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not more than 8,000.........         $.0105                 $.009
More than 8,000 but not more         $.0085                $.0068
 than 8,250.
More than 8,250 but not more         $.0075                $.0055.
 than 8,400.
------------------------------------------------------------------------

                    ``(C) In the case of a facility originally placed 
                in service after 2012 and before 2017, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 heat rate, Btu/kWh (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not more than 7,800.........         $.0140                $.0115
More than 7,800 but not more         $.0120                $.0090.
 than 7,950.
------------------------------------------------------------------------

            ``(3) Where the clean coal technology facility is producing 
        fuel or chemicals:
                    ``(A) In the case of a facility originally placed 
                in service before 2009, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 thermal efficiency (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not less than 40.6 percent..         $.0060                $.0038
Less than 40.6 but not less          $.0025                $.0010
 than 40 percent.
Less than 40 but not less            $.0010                $.0010.
 than 39 percent.
------------------------------------------------------------------------

                    ``(B) In the case of a facility originally placed 
                in service after 2008 and before 2013, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 thermal efficiency (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not less than 43.9 percent..         $.0105                 $.009
Less than 43.9 but not less          $.0085                $.0068
 than 42 percent.
Less than 42 but not less            $.0075                $.0055.
 than 40.9 percent.
------------------------------------------------------------------------

                    ``(C) In the case of a facility originally placed 
                in service after 2012 and before 2017, if--
      

------------------------------------------------------------------------
                                       The applicable amount is:
  ``The facility design net  -------------------------------------------
 thermal efficiency (HHV) is   For 1st 5 years of     For 2d 5 years of
          equal to:               such service          such service
------------------------------------------------------------------------
Not less than 44.2 percent..         $.0140                $.0115
Less than 44.2 but not less          $.0120                $.0090.
 than 43.6 percent.
------------------------------------------------------------------------

    ``(c) Inflation Adjustment Factor.--For calendar years after 2001, 
each amount in paragraphs (1), (2), and (3) shall be adjusted by 
multiplying such amount by the inflation adjustment factor for the 
calendar year in which the amount is applied. If any amount as 
increased under the preceding sentence is not a multiple of 0.01 cent, 
such amount shall be rounded to the nearest multiple of 0.01 cent.
    ``(d) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) In general.--Any term used in this section which is 
        also used in section 48B shall have the meaning given such term 
        in section 48B.
            ``(2) Applicable rules.--The rules of paragraphs (3), (4), 
        and (5) of section 45 shall apply.
            ``(3) Inflation adjustment factor.--The term `inflation 
        adjustment factor' means, with respect to a calendar year, a 
        fraction the numerator of which is the GDP implicit price 
        deflator for the preceding calendar year and the denominator of 
        which is the GDP implicit price deflator for the calendar year 
        2001.
            ``(4) GDP implicit price deflator.--The term `GDP implicit 
        price deflator' means the most recent revision of the implicit 
        price deflator for the gross domestic product as computed by 
        the Department of Commerce before March 15 of the calendar 
        year.''.
    (b) Credit Treated as Business Credit.--Section 38(b) of the 
Internal Revenue Code of 1986, as amended by section 202(b), is amended 
by striking ``plus'' at the end of paragraph (15), by striking the 
period at the end of paragraph (16) and inserting ``, plus'', and by 
adding at the end the following:
            ``(17) the qualifying advanced clean coal technology 
        production credit determined under section 45H(a).''.
    (c) Transitional Rule.--Section 39(d) of the Internal Revenue Code 
of 1986 (relating to transitional rules), as amended by section 301(d), 
is amended by adding at the end the following:
            ``(14) No carryback of section 45h credit before effective 
        date.--No portion of the unused business credit for any taxable 
        year which is attributable to the qualifying advanced clean 
        coal technology production credit determined under section 45H 
        may be carried back to a taxable year ending before the date of 
        enactment of section 45H.''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986, as amended by section 202(d), is amended by adding at the end the 
following:

                              ``Sec. 45H. Credit for production from 
                                        qualifying advanced clean coal 
                                        technology.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to production after the date of enactment of this Act.

SEC. 533. RISK POOL FOR QUALIFYING ADVANCED CLEAN COAL TECHNOLOGY.

    (a) Establishment.--The Secretary of the Treasury shall establish a 
financial risk pool which shall be available to any United States owner 
of a qualifying advanced clean coal technology which has qualified for 
an advanced clean coal technology production credit (as defined in 
section 45H of the Internal Revenue Code of 1986, as added by section 
302) to offset for the first 3 years of the operation of such 
technology the costs (not to exceed 5 percent of the total cost of 
installation) for modifications resulting from the technology's failure 
to achieve its design performance.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated such sums as are necessary to carry out the purposes of 
this section.

    Subtitle D--Treatment of Certain Governmental and Other Entities

SEC. 541. CREDITS FOR CERTAIN ORGANIZATIONS AND GOVERNMENTAL UNITS.

    Section 6401(b) of the Internal Revenue Code of 1986 (relating to 
excessive credits) is amended by adding at the end the following:
            ``(3) Credits for certain organizations and governmental 
        units.--
                    ``(A) Allowance of credits.--Any credit which would 
                be allowable under section 45G, 45H, 48A, or 48B with 
                respect to a facility of an entity whether or not such 
                entity is exempt from tax, shall be treated as a credit 
                allowable under subpart C of part IV of subchapter A of 
                chapter 1 of subtitle A to such entity if such entity 
                is--
                            ``(i) an organization described in section 
                        501(c)(12)(C) and exempt from tax under section 
                        501(a),
                            ``(ii) an organization described in section 
                        1381(a)(2)(C),
                            ``(iii) a public utility (as defined in 
                        section 136(c)(2)(B)),
                            ``(iv) a State, the District of Columbia, 
                        or a possession of the United States, or any 
                        political subdivision thereof, or
                            ``(v) the Tennessee Valley Authority.
                    ``(B) Use of credit.--
                            ``(i) Transfer of credit.--An entity 
                        described in clause (i), (ii), (iii), or (iv) 
                        of subparagraph (A) may assign, trade, sell, or 
                        otherwise transfer any credit allowable to such 
                        entity under subparagraph (A) to any other 
                        person or entity.
                            ``(ii) Use of credit as an offset.--
                        Notwithstanding any other provision of law, in 
                        the case of any entity described in clause (i) 
                        or (ii) of subparagraph (A), any credit 
                        allowable to such entity under subparagraph (A) 
                        may be applied by such entity, without penalty, 
                        as a prepayment of any loan, debt or other 
                        obligation the entity has made, incurred or 
                        guaranteed under the Rural Electrification Act 
                        of 1936 (7 U.S.C. 901 et seq.).
                            ``(iii) Use by tva.--
                                    ``(I) In general.--Notwithstanding 
                                any other provision of law, in the case 
                                of an entity described in subparagraph 
                                (A)(v), any credit allowable under 
                                subparagraph (A) to such entity may be 
                                applied as a credit against the 
                                payments required to be made in any 
                                fiscal year under section 15d(e) of the 
                                Tennessee Valley Authority Act of 1933 
                                (16 U.S.C. 83ln-4(e)) as an annual 
                                return on the appropriations investment 
                                and an annual repayment sum.
                                    ``(II) Treatment of credits.--The 
                                aggregate amount of credits described 
                                in subparagraph (A) shall be treated in 
                                the same manner and to the same extent 
                                as if such credits were a payment in 
                                cash and shall be applied first against 
                                the annual return on the appropriations 
                                investment.
                                    ``(III) Credit carryover.--With 
                                respect to any fiscal year, if the 
                                aggregate amount of the credits 
                                described in subparagraph (A) exceeds 
                                the aggregate amount of payment 
                                obligations described in subclause (I), 
                                the excess amount shall remain 
                                available for application as credits 
                                against the amounts of such payment 
                                obligations in succeeding fiscal years 
                                in the same manner as described in this 
                                clause.
                    ``(C) Credit not income.--Neither a transfer under 
                clause (i) nor a use under clause (ii) of subparagraph 
                (B) of any credit allowable under subparagraph (A) 
                shall result in income for purposes of section 
                501(c)(12).
                    ``(D) Transfer proceeds treated as arising from 
                essential government function.--Any proceeds derived by 
                an entity described in clause (iii) or (iv) of 
                subparagraph (A) from the transfer of any such credit 
                under subparagraph (B)(I) shall be treated as arising 
                from an essential government function.
                    ``(E) Treatment of unrelated persons.--For purposes 
                of this title, sales among and between entities 
                described in clauses (i), (ii), (iii), and (iv) of 
                subparagraph (A) shall be treated as sales between 
                unrelated parties.''.

                            TITLE VI--FUELS

SEC. 601. TANK DRAINING DURING TRANSITION TO SUMMERTIME RFG.

    Not later than 60 days after the enactment of the Act, the 
Administrator of the Environmental Protection Agency shall commence a 
rulemaking to determine whether modifications to the regulations set 
forth in 40 C.F.R. Section 80.78 and any associated regulations 
regarding the transition to high ozone season reformulated gasoline are 
necessary to ensure that the transition to high ozone season 
reformulated gasoline is conducted in a manner that minimizes 
disruptions to the general availability and affordability of gasoline, 
and maximizes flexibility with regard to the draining and inventory 
management of gasoline storage tanks located at refineries, terminals, 
wholesale and retail outlets, consistent with the goals of the Clean 
Air Act. The Administrator shall propose and take final action in such 
rulemaking to ensure that any modifications are effective and 
implemented at least 60 days prior to the beginning of the high ozone 
season for the year 2002.

SEC. 602. GASOLINE BLENDSTOCK REQUIREMENTS.

    Not later than 60 days after the enactment of this Act, the 
Administrator of the Environmental Protection Agency shall commence a 
rulemaking to determine whether modifications to product transfer 
documentation, accounting, compliance calculation, and other 
requirements contained in the regulations of the Administrator set 
forth in section 80.102 of title 40 of the Code of Federal Regulations 
relating to gasoline blendstocks are necessary to facilitate the 
movement of gasoline and gasoline feedstocks among different regions 
throughout the country and to improve the ability of petroleum refiners 
and importers to respond to regional gasoline shortages and prevent 
unreasonable short-term price increases. The Administrator shall take 
into consideration the extent to which such requirements have been, or 
will be, rendered unnecessary or inefficient by reason of subsequent 
environmental safeguards that were not in effect at the time the 
regulations in section 80.102 of title 40 of the Code of Federal 
Regulations were promulgated. The Administrator shall propose and take 
final action in such rulemaking to ensure that any modifications are 
effective and implemented at least 60 days prior to the beginning of 
the high ozone season for the year 2002.

SEC. 603. BOUTIQUE FUELS.

    (a) Joint Study.--The Administrator of the Environmental Protection 
Agency and the Secretary of Energy shall jointly conduct a study of all 
Federal, State, and local requirements regarding motor vehicle fuels, 
including requirements relating to reformulated gasoline, volatility 
(Reid Vapor Pressure), oxygenated fuel, diesel fuel and other 
requirements that vary from State to State, region to region, or 
locality to locality. The study shall analyze--
            (1) the effect of the variety of such requirements on the 
        price of motor vehicle fuels to the consumer;
            (2) the availability and affordability of motor vehicle 
        fuels in different States and localities;
            (3) the effect of Federal, State, and local regulations, 
        including multiple fuel requirements, on domestic refineries 
        and the fuel distribution system;
            (4) the effect of such requirements on local, regional, and 
        national air quality requirements and goals;
            (5) the effect of such requirements on vehicle emissions;
            (6) the feasibility of developing national or regional fuel 
        specifications for the contiguous United States that would--
                    (A) enhance flexibility in the fuel distribution 
                infrastructure and improve fuel fungibility;
                    (B) reduce price volatility and costs to consumers 
                and producers;
                    (C) meet local, regional, and national air quality 
                requirements and goals; and
                    (D) provide increased gasoline market liquidity; 
                and
            (7) the extent to which the Environmental Protection 
        Agency's Tier II requirements for conventional gasoline may 
        achieve in future years the same or similar air quality results 
        as State reformulated gasoline programs and State programs 
        regarding gasoline volatility (RVP).
    (b) Report.--By December 31, 2001, the Administrator of the 
Environmental Protection Agency and the Secretary of Energy shall 
submit a report to the Congress containing the results of the study 
conducted under subsection (a). Such report shall contain 
recommendations for legislative and administrative actions that may be 
taken to simplify the national distribution system for motor vehicle 
fuel, make such system more cost-effective, and reduce the costs and 
increase the availability of motor vehicle fuel to the end user while 
meeting the requirements of the Clean Air Act. Such recommendations 
shall take into account the need to provide lead time for refinery and 
fuel distribution system modifications necessary to assure adequate 
fuel supply for all States.

SEC. 604. FUNDING FOR MTBE CONTAMINATION.

    Notwithstanding any other provision of law, there is authorized to 
be appropriated to the Administrator of the Environmental Protection 
Agency from the Leaking Underground Storage Trust Fund not more than 
$200,000,000 to be used for taking such action, limited to assessment, 
corrective action, inspection of underground storage tank systems, and 
groundwater monitoring in connection with MTBE contamination, as the 
Administrator deems necessary to protect human health and the 
environment from releases of methyl tertiary butyl ether (MTBE) from 
underground storage tanks.

                      TITLE VII--RENEWABLE ENERGY

SEC. 701. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

    (a) Resource Assessment.--Not later than one year after the date of 
enactment of this Act, and each year thereafter, the Secretary of 
Energy shall publish an assessment by the National Laboratories of all 
renewable energy resources available within the United States.
    (b) Contents of Report.--The report published under subsection (a) 
shall contain each of the following:
            (1) A detailed inventory describing the available amount 
        and characteristics of solar, wind, biomass, geothermal, 
        hydroelectric and other renewable energy sources.
            (2) Such other information as the Secretary of Energy 
        believes would be useful in developing such renewable energy 
        resources, including descriptions of surrounding terrain, 
        population and load centers, nearby energy infrastructure, 
        location of energy and water resources, and available estimates 
        of the costs needed to develop each resource.

SEC. 702. RENEWABLE ENERGY PRODUCTION INCENTIVE.

    Section 1212 of the Energy Policy Act of 1992 (42 U.S.C. 13317) is 
amended as follows:
            (1) In subsection (a) by striking ``and which satisfies'' 
        and all that follows through ``Secretary shall establish.'' and 
        inserting ``. The Secretary shall establish other procedures 
        necessary for efficient administration of the program. The 
        Secretary shall not establish any criteria or procedures that 
        have the effect of assigning to proposals a higher or lower 
        priority for eligibility or allocation of appropriated funds on 
        the basis of the energy source proposed.''.
            (2) In subsection (b)--
                    (A) by striking ``a State or any political'' and 
                all that follows through ``nonprofit electrical 
                cooperative'' and inserting ``an electricity-generating 
                cooperative exempt from taxation under section 
                501(c)(12) or section 1381(a)(2)(C) of the Internal 
                Revenue Code of 1986, a public utility described in 
                section 115 of such Code, a State, Commonwealth, 
                territory, or possession of the United States or the 
                District of Columbia, or a political subdivision 
                thereof, or an Indian tribal government or subdivision 
                thereof,''; and
                    (B) By inserting ``landfill gas,'' after ``wind, 
                biomass,''.
            (3) In subsection (c) by striking ``during the 10-fiscal 
        year period beginning with the first full fiscal year occurring 
        after the enactment of this section'' and inserting ``before 
        October 1, 2013''.
            (4) In subsection (d) by inserting ``or in which the 
        Secretary finds that all necessary Federal and State 
        authorizations have been obtained to begin construction of the 
        facility'' after ``eligible for such payments''.
            (5) In subsection (e)(1) by inserting ``landfill gas,'' 
        after ``wind, biomass,''.
            (6) In subsection (f) by striking ``the expiration of'' and 
        all that follows through ``of this section'' and inserting 
        ``September 30, 2023''.
            (7) In subsection (g)--
                    (A) by striking ``1993, 1994, and 1995'' and 
                inserting ``2003 through 2023''; and
                    (B) by inserting ``Funds may be appropriated 
                pursuant to this subsection to remain available until 
                expended.'' after ``purposes of this section.''.

                     TITLE VIII--PIPELINE INTEGRITY

                     Subtitle A--Pipeline Integrity

SEC. 801. PROGRAM FOR PIPELINE INTEGRITY RESEARCH, DEVELOPMENT, AND 
              DEMONSTRATION.

    (a) In General.--The Secretary of Transportation, in coordination 
with the Secretary of Energy, and in consultation with the Federal 
Energy Regulatory Commission, shall develop and implement an 
accelerated cooperative program of research, development, and 
demonstration to ensure the integrity of natural gas and hazardous 
liquid pipelines. This program shall include materials inspection 
techniques, risk assessment methodology, and information systems 
surety.
    (b) Purpose.--The purpose of the cooperative research program shall 
be to promote research, development, and demonstration to--
            (1) ensure long-term safety, reliability, and service life 
        for existing pipelines;
            (2) expand capabilities of internal inspection devices to 
        identify and accurately measure defects and anomalies;
            (3) develop inspection techniques for pipelines that cannot 
        accommodate the internal inspection devices;
            (4) develop innovative techniques to measure the structural 
        integrity of pipelines to prevent pipeline failures;
            (5) develop improved materials and coatings for use in 
        pipelines;
            (6) improve the capability, reliability, and practicality 
        of external leak detection devices;
            (7) identify underground environments that might lead to 
        shortened service life;
            (8) enhance safety in pipeline siting and land use;
            (9) minimize the environmental impact of pipelines;
            (10) demonstrate technologies that improve pipeline safety, 
        reliability, and integrity;
            (11) provide risk assessment tools for optimizing risk 
        mitigation strategies; and
            (12) provide highly secure information systems for 
        controlling the operation of pipelines.
        (c) Areas.--In carrying out this subtitle, the Secretary of 
Transportation, in coordination with the Secretary of Energy, shall 
consider research, development, and demonstration on natural gas, crude 
oil, and petroleum product pipelines for--
            (1) early crack, defect, and damage detection, including 
        real-time damage monitoring;
            (2) automated internal pipeline inspection sensor systems;
            (3) land use guidance and set back management along 
        pipeline rights-of-way for communities;
            (4) internal corrosion control;
            (5) corrosion-resistant coatings;
            (6) improved cathodic protection;
            (7) inspection techniques where internal inspection is not 
        feasible, including measurement of structural integrity;
            (8) external leak detection, including portable real-time 
        video imaging technology, and the advancement of computerized 
        control center leak detection systems utilizing real-time 
        remote field data input;
            (9) longer life, high strength, noncorrosive pipeline 
        materials;
            (10) assessing the remaining strength of existing pipes;
            (11) 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 
        performance tracking initiative;
            (12) identification, monitoring, and prevention of outside 
        force damage, including satellite surveillance; and
            (13) any other areas necessary to ensuring the public 
        safety and protecting the environment.
    (d) Research, Development, and Demonstration Program Plan.--Within 
240 days after the date of enactment of this Act, the Secretary of 
Transportation, in coordination with the Secretary of Energy, the 
Federal Energy Regulatory Commission, and the Pipeline Integrity 
Technical Advisory Committee, shall prepare and submit to the Congress 
a 5-year program plan to guide activities under this subtitle. In 
preparing the program plan, the Secretary shall consult with 
appropriate representatives of the natural gas, crude oil, and 
petroleum product pipeline industries to select and prioritize 
appropriate project proposals. The Secretary may also seek the advice 
of utilities, manufacturers, institutions of higher learning, Federal 
agencies, the pipeline research institutions, national laboratories, 
State pipeline safety officials, environmental organizations, pipeline 
safety advocates, and professional and technical societies.
    (e) Implementation.--The Secretary of Transportation shall have 
primary responsibility for ensuring the five-year plan provided for in 
subsection (d) is implemented as intended by this subtitle.
    (f) Reports to Congress.--The Secretary of Transportation shall 
report to the Committee on Energy and Commerce and the Committee on 
Transportation and Infrastructure of the House of Representatives, and 
to the Committee on Energy and Natural Resources and the Committee on 
Commerce, Science, and Transportation of the Senate, annually as to the 
status and results to date of the implementation of the program plan. 
The report shall include the activities of the Departments of 
Transportation and Energy, the national laboratories, universities, and 
any other research organizations, including industry research 
organizations.

SEC. 802. PIPELINE INTEGRITY TECHNICAL ADVISORY COMMITTEE.

    (a) Establishment.--The Secretary of Transportation 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 implementation of 
the five-year research, development, and demonstration program plan 
under section 801(d). The Advisory Committee shall have an ongoing role 
in evaluating the progress and results of the research, development, 
and demonstration carried out under this subtitle.
    (b) Membership.--The National Academy of Sciences shall appoint the 
members of the Pipeline Integrity Technical Advisory Committee after 
consultation with the Secretary of Transportation and the Secretary of 
Energy. The Advisory Committee shall also have 1 member from the 
Federal Energy Regulatory Commission. Members appointed to the Advisory 
Committee should have the necessary qualifications to provide technical 
contributions to the purposes of the Advisory Committee.

SEC. 803. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization from User Fees.--There are authorized to be 
appropriated to the Secretary of Transportation for carrying out this 
subtitle $3,000,000, which is to be derived from user fees under 
section 60125 of title 49, United States Code, for each of the fiscal 
years 2002 through 2006.
    (b) Detection, Prevention, and Mitigation.--There are authorized to 
be appropriated to the Secretary of Transportation from the Oil Spill 
Liability Trust Fund (26 U.S.C. 9509), $3,000,000 to carry out programs 
for detection, prevention, and mitigation of oil spills authorized in 
this subtitle for each of the fiscal years 2002 through 2006.
    (c) General Authorization.--There are authorized to be appropriated 
to the Secretary of Energy for carrying out this subtitle such sums as 
may be necessary for each of the fiscal years 2002 through 2006.

                 Subtitle B--Other Pipeline Provisions

SEC. 811. 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--
            (1) the submerged lands (as defined by the Submerged Lands 
        Act) beneath, or the adjacent shoreline of, the Beaufort Sea; 
        and
            (2) enters Canada at any point north of 68 degrees North 
        latitude.

SEC. 812. HISTORIC PIPELINES.

    Section 7 of the Natural Gas Act (15 U.S.C. 717f) is amended by 
adding at the end the following new subsection:
    ``(i) Notwithstanding the National Historic Preservation Act, a 
transportation facility shall not be eligible for inclusion on the 
National Register of Historic Places until the Commission has permitted 
the abandonment of the transportation facility pursuant to subsection 
(b) of this section.''.

                   TITLE IX--MISCELLANEOUS PROVISIONS

SEC. 901. WASTE REDUCTION AND USE OF ALTERNATIVES.

    (a) Grant Authority.--The Secretary of Energy is authorized to make 
a single grant to a qualified institution to examine and develop the 
feasibility of burning post-consumer carpet in cement kilns as an 
alternative energy source. The purposes of the grant shall include 
determining--
            (1) how post-consumer carpet can be burned without 
        disrupting kiln operations;
            (2) the extent to which overall kiln emissions may be 
        reduced; and
            (3) how this process provides benefits to both cement kiln 
        operations and carpet suppliers.
    (b) Qualified Institution.--For the purposes of subsection (a), a 
qualified institution is a research-intensive institution of higher 
learning with demonstrated expertise in the fields of fiber recycling 
and logistical modeling of carpet waste collection and preparation.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy for carrying out this section 
$275,000 for fiscal year 2002, to remain available until expended.

SEC. 902. ANNUAL REPORT ON UNITED STATES ENERGY INDEPENDENCE.

    (a) Report.--The Secretary of Energy, in consultation with the 
heads of other relevant Federal agencies, shall include in each report 
under section 801(c) of the Department of Energy Organization Act a 
section which evaluates the progress the United States has made toward 
obtaining the goal of not more than 50 percent dependence on foreign 
oil sources by 2010.
    (b) Alternatives.--The information required under this section to 
be included in the reports under section 801(c) of the Department of 
Energy Organization Act shall include a specification of what 
legislative or administrative actions must be implemented to meet this 
goal and set forth a range of options and alternatives with a cost/
benefit analysis for each option or alternative together with an 
estimate of the contribution each option or alternative could make to 
reduce foreign oil imports. The Secretary shall solicit information 
from the public and request information from the Energy Information 
Agency and other agencies to develop the information required under 
this section. The information shall indicate, in detail, options and 
alternatives to--
            (1) increase the use of renewable domestic energy sources, 
        including conventional and nonconventional sources;
            (2) conserve energy resources, including improving 
        efficiencies and decreasing consumption; and
            (3) increase domestic production and use of oil, natural 
        gas, nuclear, and coal, including any actions necessary to 
        provide access to, and transportation of, these energy 
        resources.

SEC. 903. STUDY OF AIRCRAFT EMISSIONS.

    The Administrator of the Environmental Protection Agency, in 
consultation with the Secretary of Transportation shall commence a 
study within 60 days after the enactment of this Act to investigate the 
impact of aircraft emissions at all airports located within areas that 
are considered to be in nonattainment for the national ambient air 
quality standard for ozone. As part of such study, the Administrator 
should investigate all significant factors which may serve to increase 
air emission levels from airports and use the most recent data 
available. Within 180 days of the enactment of this Act, the 
Administrator shall submit a report to the Committee on Energy and 
Commerce of the United States House of Representatives and to the 
Committee on Energy and Natural Resources of the United States Senate 
containing the results of the study and recommendations with respect to 
a plan to maintain comprehensive data on aircraft emissions and methods 
by which such emissions may be reduced in order to assist in the 
attainment of the national ambient air quality standard for ozone.
                                 <all>