[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4 Placed on Calendar Senate (PCS)]
Calendar No. 145
107th CONGRESS
1st Session
H. R. 4
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 2, 2001
Received
August 3, 2001
Read the first time
September 4, 2001
Read the second time and placed on the calendar
_______________________________________________________________________
AN ACT
To enhance energy conservation, research and development and to 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 ``Securing America's
Future Energy Act of 2001'' or the ``SAFE 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.
Sec. 2. Energy policy.
DIVISION A
Sec. 100. Short title.
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. Advanced building efficiency testbed.
Sec. 126. Use of interval data in Federal buildings.
Sec. 127. Review of Energy Savings Performance Contract program.
Sec. 128. 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. 141A. Energy sun renewable and alternative energy 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
Sec. 301. License period.
Sec. 302. Cost recovery from Government agencies.
Sec. 303. Depleted uranium hexafluoride.
Sec. 304. Nuclear Regulatory Commission meetings.
Sec. 305. Cooperative research and development and special
demonstration projects for the uranium
mining industry.
Sec. 306. Maintenance of a viable domestic uranium conversion industry.
Sec. 307. Paducah decontamination and decommissioning plan.
Sec. 308. Study to determine feasibility of developing commercial
nuclear energy production facilities at
existing department of energy sites.
Sec. 309. Prohibition of commercial sales of uranium by the United
States until 2009.
TITLE IV--HYDROELECTRIC ENERGY
Sec. 401. Alternative conditions and fishways.
Sec. 402. FERC data on hydroelectric licensing.
TITLE V--FUELS
Sec. 501. Tank draining during transition to summertime RFG.
Sec. 502. Gasoline blendstock requirements.
Sec. 503. Boutique fuels.
Sec. 504. Funding for MTBE contamination.
TITLE VI--RENEWABLE ENERGY
Sec. 601. Assessment of renewable energy resources.
Sec. 602. Renewable energy production incentive.
Sec. 603. Study of ethanol from solid waste loan guarantee program.
Sec. 604. Study of renewable fuel content.
TITLE VII--PIPELINES
Sec. 701. Prohibition on certain pipeline route.
Sec. 702. Historic pipelines.
TITLE VIII--MISCELLANEOUS PROVISIONS
Sec. 801. Waste reduction and use of alternatives.
Sec. 802. Annual report on United States energy independence.
Sec. 803. Study of aircraft emissions.
DIVISION B
Sec. 2001. Short title.
Sec. 2002. Findings.
Sec. 2003. Purposes.
Sec. 2004. Goals.
Sec. 2005. Definitions.
Sec. 2006. Authorizations.
Sec. 2007. Balance of funding priorities.
TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY
Subtitle A--Alternative Fuel Vehicles
Sec. 2101. Short title.
Sec. 2102. Definitions.
Sec. 2103. Pilot program.
Sec. 2104. Reports to Congress.
Sec. 2105. Authorization of appropriations.
Subtitle B--Distributed Power Hybrid Energy Systems
Sec. 2121. Findings.
Sec. 2122. Definitions.
Sec. 2123. Strategy.
Sec. 2124. High power density industry program.
Sec. 2125. Micro-cogeneration energy technology.
Sec. 2126. Program plan.
Sec. 2127. Report.
Sec. 2128. Voluntary consensus standards.
Subtitle C--Secondary Electric Vehicle Battery Use
Sec. 2131. Definitions.
Sec. 2132. Establishment of secondary electric vehicle battery use
program.
Sec. 2133. Authorization of appropriations.
Subtitle D--Green School Buses
Sec. 2141. Short title.
Sec. 2142. Establishment of pilot program.
Sec. 2143. Fuel cell bus development and demonstration program.
Sec. 2144. Authorization of appropriations.
Subtitle E--Next Generation Lighting Initiative
Sec. 2151. Short title.
Sec. 2152. Definition.
Sec. 2153. Next Generation Lighting Initiative.
Sec. 2154. Study.
Sec. 2155. Grant program.
Subtitle F--Department of Energy Authorization of Appropriations
Sec. 2161. Authorization of appropriations.
Subtitle G--Environmental Protection Agency Office of Air and Radiation
Authorization of Appropriations
Sec. 2171. Short title.
Sec. 2172. Authorization of appropriations.
Sec. 2173. Limits on use of funds.
Sec. 2174. Cost sharing.
Sec. 2175. Limitation on demonstration and commercial applications of
energy technology.
Sec. 2176. Reprogramming.
Sec. 2177. Budget request format.
Sec. 2178. Other provisions.
Subtitle H--National Building Performance Initiative
Sec. 2181. National Building Performance Initiative.
TITLE II--RENEWABLE ENERGY
Subtitle A--Hydrogen
Sec. 2201. Short title.
Sec. 2202. Purposes.
Sec. 2203. Definitions.
Sec. 2204. Reports to Congress.
Sec. 2205. Hydrogen research and development.
Sec. 2206. Demonstrations.
Sec. 2207. Technology transfer.
Sec. 2208. Coordination and consultation.
Sec. 2209. Advisory Committee.
Sec. 2210. Authorization of appropriations.
Sec. 2211. Repeal.
Subtitle B--Bioenergy
Sec. 2221. Short title.
Sec. 2222. Findings.
Sec. 2223. Definitions.
Sec. 2224. Authorization.
Sec. 2225. Authorization of appropriations.
Subtitle C--Transmission Infrastructure Systems
Sec. 2241. Transmission infrastructure systems research, development,
demonstration, and commercial application.
Sec. 2242. Program plan.
Sec. 2243. Report.
Subtitle D--Department of Energy Authorization of Appropriations
Sec. 2261. Authorization of appropriations.
TITLE III--NUCLEAR ENERGY
Subtitle A--University Nuclear Science and Engineering
Sec. 2301. Short title.
Sec. 2302. Findings.
Sec. 2303. Department of Energy program.
Sec. 2304. Authorization of appropriations.
Subtitle B--Advanced Fuel Recycling Technology Research and Development
Program
Sec. 2321. Program.
Subtitle C--Department of Energy Authorization of Appropriations
Sec. 2341. Nuclear Energy Research Initiative.
Sec. 2342. Nuclear Energy Plant Optimization program.
Sec. 2343. Nuclear energy technologies.
Sec. 2344. Authorization of appropriations.
TITLE IV--FOSSIL ENERGY
Subtitle A--Coal
Sec. 2401. Coal and related technologies programs.
Subtitle B--Oil and Gas
Sec. 2421. Petroleum-oil technology.
Sec. 2422. Gas.
Sec. 2423. Natural gas and oil deposits report.
Sec. 2424. Oil shale research.
Subtitle C--Ultra-Deepwater and Unconventional Drilling
Sec. 2441. Short title.
Sec. 2442. Definitions.
Sec. 2443. Ultra-deepwater program.
Sec. 2444. National Energy Technology Laboratory.
Sec. 2445. Advisory Committee.
Sec. 2446. Research Organization.
Sec. 2447. Grants.
Sec. 2448. Plan and funding.
Sec. 2449. Audit.
Sec. 2450. Fund.
Sec. 2451. Sunset.
Subtitle D--Fuel Cells
Sec. 2461. Fuel cells.
Subtitle E--Department of Energy Authorization of Appropriations
Sec. 2481. Authorization of appropriations.
TITLE V--SCIENCE
Subtitle A--Fusion Energy Sciences
Sec. 2501. Short title.
Sec. 2502. Findings.
Sec. 2503. Plan for fusion experiment.
Sec. 2504. Plan for fusion energy sciences program.
Sec. 2505. Authorization of appropriations.
Subtitle B--Spallation Neutron Source
Sec. 2521. Definition.
Sec. 2522. Authorization of appropriations.
Sec. 2523. Report.
Sec. 2524. Limitations.
Subtitle C--Facilities, Infrastructure, and User Facilities
Sec. 2541. Definition.
Sec. 2542. Facility and infrastructure support for nonmilitary energy
laboratories.
Sec. 2543. User facilities.
Subtitle D--Advisory Panel on Office of Science
Sec. 2561. Establishment.
Sec. 2562. Report.
Subtitle E--Department of Energy Authorization of Appropriations
Sec. 2581. Authorization of appropriations.
TITLE VI--MISCELLANEOUS
Subtitle A--General Provisions for the Department of Energy
Sec. 2601. Research, development, demonstration, and commercial
application of energy technology programs,
projects, and activities.
Sec. 2602. Limits on use of funds.
Sec. 2603. Cost sharing.
Sec. 2604. Limitation on demonstration and commercial application of
energy technology.
Sec. 2605. Reprogramming.
Subtitle B--Other Miscellaneous Provisions
Sec. 2611. Notice of reorganization.
Sec. 2612. Limits on general plant projects.
Sec. 2613. Limits on construction projects.
Sec. 2614. Authority for conceptual and construction design.
Sec. 2615. National Energy Policy Development Group mandated reports.
Sec. 2616. Periodic reviews and assessments.
DIVISION C
Sec. 3001. Short title.
TITLE I--CONSERVATION
Sec. 3101. Credit for residential solar energy property.
Sec. 3102. Extension and expansion of credit for electricity produced
from renewable resources.
Sec. 3103. Credit for qualified stationary fuel cell powerplants.
Sec. 3104. Alternative motor vehicle credit.
Sec. 3105. Extension of deduction for certain refueling property.
Sec. 3106. Modification of credit for qualified electric vehicles.
Sec. 3107. Tax credit for energy efficient appliances.
Sec. 3108. Credit for energy efficiency improvements to existing homes.
Sec. 3109. Business credit for construction of new energy efficient
home.
Sec. 3110. Allowance of deduction for energy efficient commercial
building property.
Sec. 3111. Allowance of deduction for qualified energy management
devices and retrofitted qualified meters.
Sec. 3112. Three-year applicable recovery period for depreciation of
qualified energy management devices.
Sec. 3113. Energy credit for combined heat and power system property.
Sec. 3114. New nonrefundable personal credits allowed against regular
and minimum taxes.
Sec. 3115. Phaseout of 4.3-cent motor fuel excise taxes on railroads
and inland waterway transportation which
remain in general fund.
Sec. 3116. Reduced motor fuel excise tax on certain mixtures of diesel
fuel.
Sec. 3117. Credit for investment in qualifying advanced clean coal
technology.
Sec. 3118. Credit for production from qualifying advanced clean coal
technology.
TITLE II--RELIABILITY
Sec. 3201. Natural gas gathering lines treated as 7-year property.
Sec. 3202. Natural gas distribution lines treated as 10-year property.
Sec. 3203. Petroleum refining property treated as 7-year property.
Sec. 3204. Expensing of capital costs incurred in complying with
environmental protection agency sulfur
regulations.
Sec. 3205. Environmental tax credit.
Sec. 3206. Determination of small refiner exception to oil depletion
deduction.
Sec. 3207. Tax-exempt bond financing of certain electric facilities.
Sec. 3208. Sales or dispositions to implement Federal Energy Regulatory
Commission or State electric restructuring
policy.
Sec. 3209. Distributions of stock to implement Federal Energy
Regulatory Commission or State electric
restructuring policy.
Sec. 3210. Modifications to special rules for nuclear decommissioning
costs.
Sec. 3211. Treatment of certain income of cooperatives.
Sec. 3212. Repeal of requirement of certain approved terminals to offer
dyed diesel fuel and kerosene for
nontaxable purposes.
Sec. 3213. Arbitrage rules not to apply to prepayments for natural gas.
TITLE III--PRODUCTION
Sec. 3301. Oil and gas from marginal wells.
Sec. 3302. Temporary suspension of limitation based on 65 percent of
taxable income and extension of suspension
of taxable income limit with respect to
marginal production.
Sec. 3303. Deduction for delay rental payments.
Sec. 3304. Election to expense geological and geophysical expenditures.
Sec. 3305. Five-year net operating loss carryback for losses
attributable to operating mineral interests
of oil and gas producers.
Sec. 3306. Extension and modification of credit for producing fuel from
a nonconventional source.
Sec. 3307. Business related energy credits allowed against regular and
minimum tax.
Sec. 3308. Temporary repeal of alternative minimum tax preference for
intangible drilling costs.
Sec. 3309. Allowance of enhanced recovery credit against the
alternative minimum tax.
Sec. 3310. Extension of certain benefits for energy-related businesses
on Indian reservations.
DIVISION D
Sec. 4101. Capacity building for energy-efficient, affordable housing.
Sec. 4102. Increase of CDBG public services cap for energy conservation
and efficiency activities.
Sec. 4103. FHA mortgage insurance incentives for energy efficient
housing.
Sec. 4104. Public housing capital fund.
Sec. 4105. Grants for energy-conserving improvements for assisted
housing.
Sec. 4106. North American Development Bank.
DIVISION E
Sec. 5000. Short title.
Sec. 5001. Findings.
Sec. 5002. Definitions.
Sec. 5003. Clean coal power initiative.
Sec. 5004. Cost and performance goals.
Sec. 5005. Authorization of appropriations.
Sec. 5006. Project criteria.
Sec. 5007. Study.
Sec. 5008. Clean coal centers of excellence.
DIVISION F
Sec. 6000. Short title.
TITLE I--GENERAL PROTECTIONS FOR ENERGY SUPPLY AND SECURITY
Sec. 6101. Study of existing rights-of-way on Federal lands to
determine capability to support new
pipelines or other transmission facilities.
Sec. 6102. Inventory of energy production potential of all Federal
public lands.
Sec. 6103. Review of regulations to eliminate barriers to emerging
energy technology.
Sec. 6104. Interagency agreement on environmental review of interstate
natural gas pipeline projects.
Sec. 6105. Enhancing energy efficiency in management of Federal lands.
Sec. 6106. Efficient infrastructure development.
TITLE II--OIL AND GAS DEVELOPMENT
Subtitle A--Offshore Oil and Gas
Sec. 6201. Short title.
Sec. 6202. Lease sales in Western and Central Planning Area of the Gulf
of Mexico.
Sec. 6203. Savings clause.
Sec. 6204. Analysis of Gulf of Mexico field size distribution,
international competitiveness, and
incentives for development.
Subtitle B--Improvements to Federal Oil and Gas Management
Sec. 6221. Short title.
Sec. 6222. Study of impediments to efficient lease operations.
Sec. 6223. Elimination of unwarranted denials and stays.
Sec. 6224. Limitations on cost recovery for applications.
Sec. 6225. Consultation with Secretary of Agriculture.
Subtitle C--Miscellaneous
Sec. 6231. Offshore subsalt development.
Sec. 6232. Program on oil and gas royalties in kind.
Sec. 6233. Marginal well production incentives.
Sec. 6234. Reimbursement for costs of NEPA analyses, documentation, and
studies.
Sec. 6235. Encouragement of State and provincial prohibitions on off-
shore drilling in the Great Lakes.
TITLE III--GEOTHERMAL ENERGY DEVELOPMENT
Sec. 6301. Royalty reduction and relief.
Sec. 6302. Exemption from royalties for direct use of low temperature
geothermal energy resources.
Sec. 6303. Amendments relating to leasing on Forest Service lands.
Sec. 6304. Deadline for determination on pending noncompetitive lease
applications.
Sec. 6305. Opening of public lands under military jurisdiction.
Sec. 6306. Application of amendments.
Sec. 6307. Review and report to Congress.
Sec. 6308. Reimbursement for costs of NEPA analyses, documentation, and
studies.
TITLE IV--HYDROPOWER
Sec. 6401. Study and report on increasing electric power production
capability of existing facilities.
Sec. 6402. Installation of powerformer at Folsom power plant,
California.
Sec. 6403. Study and implementation of increased operational
efficiencies in hydroelectric power
projects.
Sec. 6404. Shift of project loads to off-peak periods.
TITLE V--ARCTIC COASTAL PLAIN DOMESTIC ENERGY
Sec. 6501. Short title.
Sec. 6502. Definitions.
Sec. 6503. Leasing program for lands within the Coastal Plain.
Sec. 6504. Lease sales.
Sec. 6505. Grant of leases by the Secretary.
Sec. 6506. Lease terms and conditions.
Sec. 6507. Coastal Plain environmental protection.
Sec. 6508. Expedited judicial review.
Sec. 6509. Rights-of-way across the Coastal Plain.
Sec. 6510. Conveyance.
Sec. 6511. Local government impact aid and community service
assistance.
Sec. 6512. Revenue allocation.
TITLE VI--CONSERVATION OF ENERGY BY THE DEPARTMENT OF THE INTERIOR
Sec. 6601. Energy conservation by the Department of the Interior.
Sec. 6602. Amendment to Buy Indian Act.
TITLE VII--COAL
Sec. 6701. Limitation on fees with respect to coal lease applications
and documents.
Sec. 6702. Mining plans.
Sec. 6703. Payment of advance royalties under coal leases.
Sec. 6704. Elimination of deadline for submission of coal lease
operation and reclamation plan.
TITLE VIII--INSULAR AREAS ENERGY SECURITY
Sec. 6801. Insular areas energy security.
DIVISION G
Sec. 7101. Buy American.
SEC. 2. ENERGY POLICY.
It shall be the sense of the Congress that the United States should
take all actions necessary in the areas of conservation, efficiency,
alternative source, technology development, and domestic production to
reduce the United States dependence on foreign energy sources from 56
percent to 45 percent by January 1, 2012, and to reduce United States
dependence on Iraqi energy sources from 700,000 barrels per day to
250,000 barrels per day by January 1, 2012.
DIVISION A
SEC. 100. SHORT TITLE.
This division may be cited as the ``Energy Advancement and
Conservation Act of 2001''.
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, and to provide grants to accelerate the use of
unconventional and renewable energy, 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. In the case of electric motors of 1 to 500
horsepower, agencies shall select only premium efficiency motors that
meet a standard designated by the Secretary, and shall replace (not
rewind) failed motors with motors meeting such standard. The Secretary
shall designate such standard within 90 days of the enactment of
paragraph, after considering recommendations by the National Electrical
Manufacturers Association. 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 the General
Services Administration and 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) A building shall be exempt from the requirement of this
section to the extent that compliance is deemed impractical by the
Secretary. A finding of impracticability shall be based on the same
factors as identified in subsection (c) of this section.''.
(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. Except as otherwise provided by law,
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
paragraph:
``(3) an energy emergency response plan developed by the
agency.''.
(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,
develop plans to achieve not less than 50 percent of the
potential efficiency and renewable savings identified in the
review.
The agency shall implement such measures as soon thereafter as is
practicable, consistent with compliance with the requirements of this
section.''.
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 the
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. 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. 126. 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. 127. 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. 128. 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 3 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 ``$273,000,000 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 or encourage energy conservation and
energy efficiency investments when compared to structures of
the same physical description and occupancy in compatible
geographic locations;
(2) the extent to which education could increase the
conservation of low-income households who opt to receive
supplemental income instead of Low-Income Home Energy
Assistance funds;
(3) the benefit in energy efficiency and energy savings
that can be achieved through the annual maintenance of heating
and cooling appliances in the homes of those receiving Low-
Income Home Energy Assistance funds; and
(4) the loss of energy conservation that results from
structural inadequacies in a structure that is unhealthy, not
energy efficient, and environmentally unsound and that receives
Low-Income Home Energy Assistance funds for weatherization.
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 the enactment of this section, the Secretary and the
Administrator, consistent with the terms of agreements between the two
agencies (including existing agreements with respect to which agency
shall handle a particular product or building), 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. 141A. ENERGY SUN RENEWABLE AND ALTERNATIVE ENERGY PROGRAM.
(a) Amendment.--The Energy Policy and Conservation Act (42 U.S.C.
6201 and following) is amended by inserting the following after section
324A:
``SEC. 324B. ENERGY SUN RENEWABLE AND ALTERNATIVE ENERGY PROGRAM.
``(a) Program.--There is established at the Environmental
Protection Agency and the Department of Energy a government-industry
partnership program to identify and promote the purchase of renewable
and alternative energy products, to recognize companies that purchase
renewable and alternative energy products for the environmental and
energy security benefits of such purchases, and to educate consumers
about the environmental and energy security benefits of renewable and
alternative energy. Responsibilities under the program shall be divided
between the Environmental Protection Agency and the Department of
Energy consistent with the terms of agreements between the two
agencies. The Administrator of the Environmental Protection Agency and
the Secretary of Energy--
``(1) establish an Energy Sun label for renewable and
alternative energy products and technologies that the
Administrator or the Secretary (consistent with the terms of
agreements between the two agencies regarding responsibility
for specific product categories) determine to have substantial
environmental and energy security benefits and commercial
marketability.
``(2) establish an Energy Sun Company program to recognize
private companies that draw a substantial portion of their
energy from renewable and alternative sources that provide
substantial environmental and energy security benefits, as
determined by the Administrator or the Secretary.
``(3) promote Energy Sun compliant products and
technologies as the preferred products and technologies in the
marketplace for reducing pollution and achieving energy
security; and
``(4) work to enhance public awareness and preserve the
integrity of the Energy Sun label.
For the purposes of carrying out this section, there is authorized to
be appropriated $10,000,000 for each of fiscal years 2002 through 2006.
``(b) Study of Certain Products, Technologies, and Buildings.--
Within 18 months after the enactment of this section, the Administrator
and the Secretary, consistent with the terms of agreements between the
two agencies, shall conduct a study to determine whether the Energy Sun
label should be authorized for products, technologies, and buildings in
the following categories:
``(1) Passive solar, solar thermal, concentrating solar
energy, solar water heating, and related solar products and
building technologies.
``(2) Solar photovoltaics and other solar electric power
generation technologies.
``(3) Wind.
``(4) Geothermal.
``(5) Biomass.
``(6) Distributed energy (including, but not limited to,
microturbines, combined heat and power, fuel cells, and
stirling heat engines).
``(7) Green power or other renewables and alternative based
electric power products (including green tag credit programs)
sold to retail consumers of electricity.
``(8) Homes.
``(9) School buildings.
``(10) Retail buildings.
``(11) Health care facilities.
``(12) Hotels and other commercial lodging facilities.
``(13) Restaurants and other food service facilities.
``(14) Rest area facilities along interstate highways.
``(15) Sports stadia, arenas, and concert facilities.
``(16) Any other product, technology or building category,
the accelerated recognition of which the Administrator or the
Secretary determines to be necessary or appropriate for the
achievement of the purposes of this section.
Nothing in this subsection shall be construed to limit the discretion
of the Administrator or the Secretary under subsection (a)(1) to
include in the Energy Sun program additional products, technologies,
and buildings not listed in this subsection. Participation by private-
sector entities in programs or studies authorized by this section shall
be (A) voluntary, and (B) by permission of the Administrator or
Secretary, on terms and conditions the Administrator or the Secretary
(consistent with agreements between the agencies) deems necessary or
appropriate to carry out the purposes and requirements of this section.
``(c) Definition.--For the purposes of this section, the term
`renewable and alternative energy' shall have the same meaning as the
term `unconventional and renewable energy resources' in Section 551 of
the National Energy Conservation Policy Act (42 U.S.C. 8259).''.
(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 324A the following new item:
``Sec. 324B. Energy Sun renewable and alternative energy 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 the 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 1 year after the date of the 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 3 months after the date of the 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 the enactment of this
subparagraph.''.
SEC. 143. APPLIANCE STANDARDS.
(a) Standards for Household Appliances in Standby Mode.--(1)
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, operates in a standby mode,
and is identified by the Secretary as a major consumer of
electricity in standby mode, except digital televisions,
digital set top boxes, digital video recorders, any product
recognized under the Energy Star program, any product that was
on the date of the enactment of this Act subject to an energy
conservation standard under this section, and any product
regarding which the Secretary finds that the expected
additional cost to the consumer of purchasing such product as a
result of complying with a standard established under this
section is not economically justified within the meaning of
subsection (o).
``(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 (provided that, the
amount of electric energy consumed in such mode is
substantially less than the amount the household appliance
would consume in its normal operational mode).
``(C) The term `major consumer of electricity in standby
mode' means a product for which a standard prescribed under
this section would result in substantial energy savings as
compared to energy savings achieved or expected to be achieved
by standards established by the Secretary under subsections (o)
and (p) of this section for products that were, at the time of
the enactment of this subsection, covered products under this
section.
``(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 the
enactment of this subsection shall not consume in standby mode more
than 1 watt.
``(B) In the case of analog televisions, the Secretary shall
prescribe, on or after the date that is 2 years after the date of the
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 the 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(o)(3) of the Energy Policy and Conservation
Act (42 U.S.C. 6295(n)(1)) is amended by inserting at the end
of the paragraph the following: ``Notwithstanding any provision
of this part, the Secretary shall not amend a standard
established under subsection (u) or (v) of this section.''.
(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 1 year after the date of the 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) and is a major consumer of
electricity. 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). As
used in this paragraph, the term `major consumer of electricity' means
a product for which a standard prescribed under this section would
result in substantial aggregate energy savings as compared to energy
savings achieved or expected to be achieved by standards established by
the Secretary under paragraphs (o) and (p) of this section for products
that were, at the time of the enactment of this paragraph, covered
products under this section.''.
(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
the 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 and 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 the 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 the 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 and reduce
emissions.
(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
the 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 the 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 the 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 the 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
SEC. 301. 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. 302. 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. 303. DEPLETED URANIUM HEXAFLUORIDE.
Section 1(b) of Public Law 105-204 is amended by striking ``fiscal
year 2002'' and inserting ``fiscal year 2005''.
SEC. 304. 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.
SEC. 305. 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. 306. 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. 307. 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.
SEC. 308. STUDY TO DETERMINE FEASIBILITY OF DEVELOPING COMMERCIAL
NUCLEAR ENERGY PRODUCTION FACILITIES AT EXISTING
DEPARTMENT OF ENERGY SITES.
(a) In General.--The Secretary of Energy shall conduct a study to
determine the feasibility of developing commercial nuclear energy
production facilities at Department of Energy sites in existence on the
date of the enactment of this Act, including--
(1) options for how and where nuclear power plants can be
developed on existing Department of Energy sites;
(2) estimates on cost savings to the Federal Government
that may be realized by locating new nuclear power plants on
Federal sites;
(3) the feasibility of incorporating new technology into
nuclear power plants located on Federal sites;
(4) potential improvements in the licensing and safety
oversight procedures of nuclear power plants located on Federal
sites;
(5) an assessment of the effects of nuclear waste
management policies and projects as a result of locating
nuclear power plants located on Federal sites; and
(6) any other factors that the Secretary believes would be
relevant in making the determination.
(b) Report.--Not later than 90 days after the date of the enactment
of this Act, the Secretary shall submit to Congress a report describing
the results of the study under subsection (a).
SEC. 309. 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.--With the exception of sales pursuant
to subsection (b)(2) (42 U.S.C.2297h-10(b)(2)), 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, to any natural uranium transferred to the U.S. Enrichment
Corporation from the Department of Energy to replace contaminated
uranium received from the Department of Energy when the U.S. Enrichment
Corporation was privatized in July, 1998, 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.''.
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 1 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 1 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 the 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
1 year after such date of the enactment, the Commission shall submit a
report to such Committees specifying the measures taken by the
Commission pursuant to subsection (a).
TITLE V--FUELS
SEC. 501. 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 CFR 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. 502. 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. 503. 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;
(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); and
(8) the feasibility of providing incentives to promote
cleaner burning fuel.
(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. 504. 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 VI--RENEWABLE ENERGY
SEC. 601. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.
(a) Resource Assessment.--Not later than 1 year after the date of
the 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. 602. 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.''.
SEC. 603. STUDY OF ETHANOL FROM SOLID WASTE LOAN GUARANTEE PROGRAM.
The Secretary of Energy shall conduct a study of the feasibility of
providing guarantees for loans by private banking and investment
institutions for facilities for the processing and conversion of
municipal solid waste and sewage sludge into fuel ethanol and other
commercial byproducts, and not later than 90 days after the date of the
enactment of this Act shall transmit to the Congress a report on the
results of the study.
SEC. 604. STUDY OF RENEWABLE FUEL CONTENT.
(a) Study.--The Administrator of the Environmental Protection
Agency and the Secretary of Energy shall jointly conduct a study of the
feasibility of developing a requirement that motor vehicle fuel sold or
introduced into commerce in the United States in calendar year 2002 or
any calendar year thereafter by a refiner, blender, or importer shall,
on a 6-month average basis, be comprised of a quantity of renewable
fuel, measured in gasoline-equivalent gallons. As part of this study,
the Administrator and Secretary shall evaluate the use of a banking and
trading credit system and the feasibility and desirability of requiring
an increasing percentage of renewable fuel to be phased in over a 15-
year period.
(b) Report to Congress.--Not later than 6 months after the date of
the enactment of this Act, the Administrator and the Secretary shall
transmit to the Congress a report on the results of the study conducted
under this section.
TITLE VII--PIPELINES
SEC. 701. 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. 702. HISTORIC PIPELINES.
Section 7 of the Natural Gas Act (15 U.S.C. 717(f)) 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 unless--
``(1) the Commission has permitted the abandonment of the
transportation facility pursuant to subsection (b) of this
section, or
``(2) the owner of the facility has given written consent
to such eligibility.
Any transportation facility deemed eligible for inclusion on the
National Register of Historic Places prior to the date of the enactment
of this subsection shall no longer be eligible unless the owner of the
facility gives written consent to such eligibility.''.
TITLE VIII--MISCELLANEOUS PROVISIONS
SEC. 801. 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. 802. 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. 803. STUDY OF AIRCRAFT EMISSIONS.
The Secretary of Transportation and the Administrator of the
Environmental Protection Agency shall jointly commence a study within
60 days after the enactment of this Act to investigate the impact of
aircraft emissions on air quality in areas that are considered to be in
nonattainment for the national ambient air quality standard for ozone.
As part of this study, the Secretary and the Administrator shall focus
on the impact of emissions by aircraft idling at airports and on the
contribution of such emissions as a percentage of total emissions in
the nonattainment area. Within 180 days of the commencement of the
study, the Secretary and the Administrator shall submit a report to the
Committees on Energy and Commerce and Transportation and Infrastructure
of the United States House of Representatives and to the Committees on
Environment and Public Works and Commerce, Science, and Transportation
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, without increasing individual aircraft noise, in order to
assist in the attainment of the national ambient air quality standards.
DIVISION B
SEC. 2001. SHORT TITLE.
This division may be cited as the ``Comprehensive Energy Research
and Technology Act of 2001''.
SEC. 2002. FINDINGS.
The Congress finds that--
(1) the Nation's prosperity and way of life are sustained
by energy use;
(2) the growing imbalance between domestic energy
production and consumption means that the Nation is becoming
increasingly reliant on imported energy, which has the
potential to undermine the Nation's economy, standard of
living, and national security;
(3) energy conservation and energy efficiency help maximize
the use of available energy resources, reduce energy shortages,
lower the Nation's reliance on energy imports, mitigate the
impacts of high energy prices, and help protect the environment
and public health;
(4) development of a balanced portfolio of domestic energy
supplies will ensure that future generations of Americans will
have access to the energy they need;
(5) energy efficiency technologies, renewable and
alternative energy technologies, and advanced energy systems
technologies will help diversify the Nation's energy portfolio
with few adverse environmental impacts and are vital to
delivering clean energy to fuel the Nation's economic growth;
(6) development of reliable, affordable, and
environmentally sound energy efficiency technologies, renewable
and alternative energy technologies, and advanced energy
systems technologies will require maintenance of a vibrant
fundamental scientific knowledge base and continued scientific
and technological innovations that can be accelerated by
Federal funding, whereas commercial deployment of such systems
and technologies are the responsibility of the private sector;
(7) Federal funding should focus on those programs,
projects, and activities that are long-term, high-risk,
noncommercial, and well-managed, and that provide the potential
for scientific and technological advances; and
(8) public-private partnerships should be encouraged to
leverage scarce taxpayer dollars.
SEC. 2003. PURPOSES.
The purposes of this division are to--
(1) protect and strengthen the Nation's economy, standard
of living, and national security by reducing dependence on
imported energy;
(2) meet future needs for energy services at the lowest
total cost to the Nation, including environmental costs, giving
balanced and comprehensive consideration to technologies that
improve the efficiency of energy end uses and that enhance
energy supply;
(3) reduce the air, water, and other environmental impacts
(including emissions of greenhouse gases) of energy production,
distribution, transportation, and use through the development
of environmentally sustainable energy systems;
(4) consider the comparative environmental impacts of the
energy saved or produced by specific programs, projects, or
activities;
(5) maintain the technological competitiveness of the
United States and stimulate economic growth through the
development of advanced energy systems and technologies;
(6) foster international cooperation by developing
international markets for domestically produced sustainable
energy technologies, and by transferring environmentally sound,
advanced energy systems and technologies to developing
countries to promote sustainable development;
(7) provide sufficient funding of programs, projects, and
activities that are performance-based and modeled as public-
private partnerships, as appropriate; and
(8) enhance the contribution of a given program, project,
or activity to fundamental scientific knowledge.
SEC. 2004. GOALS.
(a) In General.--Subject to subsection (b), in order to achieve the
purposes of this division under section 2003, the Secretary should
conduct a balanced energy research, development, demonstration, and
commercial application portfolio of programs guided by the following
goals to meet the purposes of this division under section 2003.
(1) Energy conservation and energy efficiency.--
(A) For the Building Technology, State and
Community Sector, the program should develop
technologies, housing components, designs, and
production methods that will, by 2010--
(i) reduce the monthly energy cost of new
housing by 20 percent, compared to the cost as
of the date of the enactment of this Act;
(ii) cut the environmental impact and
energy use of new housing by 50 percent,
compared to the impact and use as of the date
of the enactment of this Act; and
(iii) improve durability and reduce
maintenance costs by 50 percent compared to the
durability and costs as of the date of the
enactment of this Act.
(B) For the Industry Sector, the program should, in
cooperation with the affected industries, improve the
energy intensity of the major energy-consuming
industries by at least 25 percent by 2010, compared to
the energy intensity as of the date of the enactment of
this Act.
(C) For Power Technologies, the program should, in
cooperation with the affected industries--
(i) develop a microturbine (40 to 300
kilowatt) that is more than 40 percent more
efficient by 2006, and more than 50 percent
more efficient by 2010, compared to the
efficiency as of the date of the enactment of
this Act; and
(ii) develop advanced materials for
combustion systems that reduce emissions of
nitrogen oxides by 30 to 50 percent while
increasing efficiency 5 to 10 percent by 2007,
compared to such emissions as of the date of
the enactment of this Act.
(D) For the Transportation Sector, the program
should, in cooperation with affected industries--
(i) develop a production prototype
passenger automobile that has fuel economy
equivalent to 80 miles per gallon of gasoline
by 2004;
(ii) develop class 7 and 8 heavy duty
trucks and buses with ultra low emissions and
the ability to use an alternative fuel that has
an average fuel economy equivalent to--
(I) 10 miles per gallon of gasoline
by 2007; and
(II) 13 miles per gallon of
gasoline by 2010;
(iii) develop a production prototype of a
passenger automobile with zero equivalent
emissions that has an average fuel economy of
100 miles per gallon of gasoline by 2010; and
(iv) improve, by 2010, the average fuel
economy of trucks--
(I) in classes 1 and 2 by 300
percent; and
(II) in classes 3 through 6 by 200
percent,
compared to the fuel economy as of the date of
the enactment of this Act.
(2) Renewable energy.--
(A) For Hydrogen Research, to carry out the Spark
M. Matsunaga Hydrogen Research, Development, and
Demonstration Act of 1990, as amended by subtitle A of
title II of this division.
(B) For bioenergy:
(i) The program should reduce the cost of
bioenergy relative to other energy sources to
enable the United States to triple bioenergy
use by 2010.
(ii) For biopower systems, the program
should reduce the cost of such systems to
enable commercialization of integrated power-
generating technologies that employ gas
turbines and fuel cells integrated with
bioenergy gasifiers within 5 years after the
date of the enactment of this Act.
(iii) For biofuels, the program should
accelerate research, development, and
demonstration on advanced enzymatic hydrolysis
technology for making ethanol from cellulosic
feedstock, with the goal that between 2010 and
2015 ethanol produced from energy crops would
be fully competitive in terms of price with
gasoline as a neat fuel, in either internal
combustion engines or fuel cell vehicles.
(C) For Geothermal Technology Development, the
program should focus on advanced concepts for the long
term. The first priority should be high-grade enhanced
geothermal systems; the second priority should be lower
grade, hot dry rock, and geopressured systems; and the
third priority should be support of field
demonstrations of enhanced geothermal systems
technology, including sites in lower grade areas to
demonstrate the benefits of reservoir concepts to
different conditions.
(D) For Hydropower, the program should provide a
new generation of turbine technologies that will
increase generating capacity and will be less damaging
to fish and aquatic ecosystems.
(E) For Concentrating Solar Power, the program
should strengthen ongoing research, development, and
demonstration combining high-efficiency and high-
temperature receivers with advanced thermal storage and
power cycles, with the goal of making solar-only power
(including baseload solar power) widely competitive
with fossil fuel power by 2015. The program should
limit or halt its research and development on power-
tower and power-trough technologies because further
refinements to these concepts will not further their
deployment, and should assess the market prospects for
solar dish/engine technologies to determine whether
continued research and development is warranted.
(F) For Photovoltaic Energy Systems, the program
should pursue research, development, and demonstration
that will, by 2005, increase the efficiency of thin
film modules from the current 7 percent to 11 percent
in multi-million watt production; reduce the direct
manufacturing cost of photovoltaic modules by 30
percent from the current $2.50 per watt to $1.75 per
watt by 2005; and establish greater than a 20-year
lifetime of photovoltaic systems by improving the
reliability and lifetime of balance-of-system
components and reducing recurring cost by 40 percent.
The program's top priority should be the development of
sound manufacturing technologies for thin-film modules,
and the program should make a concerted effort to
integrate fundamental research and basic engineering
research.
(G) For Solar Building Technology Research, the
program should complete research and development on new
polymers and manufacturing processes to reduce the cost
of solar water heating by 50 percent by 2004, compared
to the cost as of the date of the enactment of this
Act.
(H) For Wind Energy Systems, the program should
reduce the cost of wind energy to three cents per
kilowatt-hour at Class 6 (15 miles-per-hour annual
average) wind sites by 2004, and 4 cents per kilowatt-
hour in Class 4 (13 miles-per-hour annual average) wind
sites by 2015, and further if required so that wind
power can be widely competitive with fossil-fuel-based
electricity in a restructured electric industry.
Program research on advanced wind turbine technology
should focus on turbulent flow studies, durable
materials to extend turbine life, blade efficiency, and
higher efficiency operation in low quality wind
regimes.
(I) For Electric Energy Systems and Storage,
including High Temperature Superconducting Research and
Development, Energy Storage Systems, and Transmission
Reliability, the program should develop high capacity
superconducting transmission lines and generators,
highly reliable energy storage systems, and distributed
generating systems to accommodate multiple types of
energy sources under common interconnect standards.
(J) For the International Renewable Energy and
Renewable Energy Production Incentive programs, and
Renewable Program Support, the program should encourage
the commercial application of renewable energy
technologies by developed and developing countries,
State and local governmental entities and nonprofit
electric cooperatives, and by the competitive domestic
market.
(3) Nuclear energy.--
(A) For university nuclear science and engineering,
the program should carry out the provisions of subtitle
A of title III of this division.
(B) For fuel cycle research, development, and
demonstration, the program should carry out the
provisions of subtitle B of title III of this division.
(C) For the Nuclear Energy Research Initiative, the
program should accomplish the objectives of section
2341(b) of this Act.
(D) For the Nuclear Energy Plant Optimization
Program, the program should accomplish the objectives
of section 2342(b) of this Act.
(E) For Nuclear Energy Technologies, the program
should carry out the provisions of section 2343 of this
Act.
(F) For Advanced Radioisotope Power Systems, the
program should ensure that the United States has
adequate capability to power future satellite and space
missions.
(4) Fossil energy.--
(A) For core fossil energy research and
development, the program should achieve the goals
outlined by the Department's Vision 21 Program. This
research should address fuel-flexible gasification and
turbines, fuel cells, advanced-combustion systems,
advanced fuels and chemicals, advanced modeling and
systems analysis, materials and heat exchangers,
environmental control technologies, gas-stream
purification, gas-separation technology, and
sequestration research and development focused on cost-
effective novel concepts for capturing, reusing or
storing, or otherwise mitigating carbon and other
greenhouse gas emissions.
(B) For offshore oil and natural gas resources, the
program should investigate and develop technologies
to--
(i) extract methane hydrates in coastal
waters of the United States, in accordance with
the provisions of the Methane Hydrate Research
and Development Act of 2000; and
(ii) develop natural gas and oil reserves
in the ultra-deepwater of the Central and
Western Gulf of Mexico. Research and
development on ultra-deepwater resource
recovery shall focus on improving the safety
and efficiency of such recovery and of sub-sea
production technology used for such recovery,
while lowering costs.
(C) For transportation fuels, the program should
support a comprehensive transportation fuels strategy
to increase the price elasticity of oil supply and
demand by focusing research on reducing the cost of
producing transportation fuels from natural gas and
indirect liquefaction of coal.
(5) Science.--The Secretary, through the Office of Science,
should--
(A) develop and maintain a robust portfolio of
fundamental scientific and energy research, including
High Energy and Nuclear Physics, Biological and
Environmental Research, Basic Energy Sciences
(including Materials Sciences, Chemical Sciences,
Engineering and Geosciences, and Energy Biosciences),
Advanced Scientific Computing, Energy Research and
Analysis, Multiprogram Energy Laboratories-Facilities
Support, Fusion Energy Sciences, and Facilities and
Infrastructure;
(B) maintain, upgrade, and expand, as appropriate,
and in accordance with the provisions of this division,
the scientific user facilities maintained by the Office
of Science, and ensure that they are an integral part
of the Department's mission for exploring the frontiers
of fundamental energy sciences; and
(C) ensure that its fundamental energy sciences
programs, where appropriate, help inform the applied
research and development programs of the Department.
(b) Review and Assessment.--The Secretary shall perform an
assessment that establishes measurable cost and performance-based
goals, or that modifies the goals under subsection (a), as appropriate,
for 2005, 2010, 2015, and 2020 for each of the programs authorized by
this division that would enable each such program to meet the purposes
of this division under section 2003. Such assessment shall be based on
the latest scientific and technical knowledge, and shall also take into
consideration, as appropriate, the comparative environmental impacts
(including emissions of greenhouse gases) of the energy saved or
produced by specific programs.
(c) Consultation.--In establishing the measurable cost and
performance-based goals under subsection (b), the Secretary shall
consult with the private sector, institutions of higher learning,
national laboratories, environmental organizations, professional and
technical societies, and any other persons as the Secretary considers
appropriate.
(d) Schedule.--The Secretary shall--
(1) issue and publish in the Federal Register a set of
draft measurable cost and performance-based goals for the
programs authorized by this division for public comment--
(A) in the case of a program established before the
date of the enactment of this Act, not later than 120
days after the date of the enactment of this Act; and
(B) in the case of a program not established before
the date of the enactment of this Act, not later than
120 days after the date of establishment of the
program;
(2) not later than 60 days after the date of publication
under paragraph (1), after taking into consideration any public
comments received, transmit to the Congress and publish in the
Federal Register the final measurable cost and performance-
based goals; and
(3) update all such cost and performance-based goals on a
biennial basis.
SEC. 2005. DEFINITIONS.
For purposes of this division, except as otherwise provided--
(1) the term ``Administrator'' means the Administrator of
the Environmental Protection Agency;
(2) the term ``appropriate congressional committees''
means--
(A) the Committee on Science and the Committee on
Appropriations of the House of Representatives; and
(B) the Committee on Energy and Natural Resources
and the Committee on Appropriations of the Senate;
(3) the term ``Department'' means the Department of Energy;
and
(4) the term ``Secretary'' means the Secretary of Energy.
SEC. 2006. AUTHORIZATIONS.
Authorizations of appropriations under this division are for
environmental research and development, scientific and energy research,
development, and demonstration, and commercial application of energy
technology programs, projects, and activities.
SEC. 2007. BALANCE OF FUNDING PRIORITIES.
(a) Sense of Congress.--It is the sense of the Congress that the
funding of the various programs authorized by titles I through IV of
this division should remain in the same proportion to each other as
provided in this division, regardless of the total amount of funding
made available for those programs.
(b) Report to Congress.--If for fiscal year 2002, 2003, or 2004 the
amounts appropriated in general appropriations Acts for the programs
authorized in titles I through IV of this division are not in the same
proportion to one another as are the authorizations for such programs
in this division, the Secretary and the Administrator shall, within 60
days after the date of the enactment of the last general appropriations
Act appropriating amounts for such programs, transmit to the
appropriate congressional committees a report describing the programs,
projects, and activities that would have been funded if the proportions
provided for in this division had been maintained in the
appropriations. The amount appropriated for the program receiving the
highest percentage of its authorized funding for a fiscal year shall be
used as the baseline for calculating the proportional deficiencies of
appropriations for other programs in that fiscal year.
TITLE I--ENERGY CONSERVATION AND ENERGY EFFICIENCY
Subtitle A--Alternative Fuel Vehicles
SEC. 2101. SHORT TITLE.
This subtitle may be cited as the ``Alternative Fuel Vehicle
Acceleration Act of 2001''.
SEC. 2102. DEFINITIONS.
For the purposes of this subtitle, the following definitions apply:
(1) Alternative fuel vehicle.--
(A) In general.--Except as provided in subparagraph
(B), the term ``alternative fuel vehicle'' means a
motor vehicle that is powered--
(i) in whole or in part by electricity,
including electricity supplied by a fuel cell;
(ii) by liquefied natural gas;
(iii) by compressed natural gas;
(iv) by liquefied petroleum gas;
(v) by hydrogen;
(vi) by methanol or ethanol at no less than
85 percent by volume; or
(vii) by propane.
(B) Exclusions.--The term ``alternative fuel
vehicle'' does not include--
(i) any vehicle designed to operate solely
on gasoline or diesel derived from fossil
fuels, regardless of whether it can also be
operated on an alternative fuel; or
(ii) any vehicle that the Secretary
determines, by rule, does not yield substantial
environmental benefits over a vehicle operating
solely on gasoline or diesel derived from
fossil fuels.
(2) Pilot program.--The term ``pilot program'' means the
competitive grant program established under section 2103.
(3) Ultra-low sulfur diesel vehicle.--The term ``ultra-low
sulfur diesel vehicle'' means a vehicle powered by a heavy-duty
diesel engine that--
(A) is fueled by diesel fuel which contains sulfur
at not more than 15 parts per million; and
(B) emits not more than the lesser of--
(i) for vehicles manufactured in--
(I) model years 2001 through 2003,
3.0 grams per brake horsepower-hour of
nonmethane hydrocarbons and oxides of
nitrogen and .01 grams per brake
horsepower-hour of particulate matter;
and
(II) model years 2004 through 2006,
2.5 grams per brake horsepower-hour of
nonmethane hydrocarbons and oxides of
nitrogen and .01 grams per brake
horsepower-hour of particulate matter;
or
(ii) the emissions of nonmethane
hydrocarbons, oxides of nitrogen, and
particulate matter of the best performing
technology of ultra-low sulfur diesel vehicles
of the same type that are commercially
available.
SEC. 2103. PILOT PROGRAM.
(a) Establishment.--The Secretary shall establish a competitive
grant pilot program to provide not more than 15 grants to State
governments, local governments, or metropolitan transportation
authorities to carry out a project or projects for the purposes
described in subsection (b).
(b) Grant Purposes.--Grants under this section may be used for the
following purposes:
(1) The acquisition of alternative fuel vehicles,
including--
(A) passenger vehicles;
(B) buses used for public transportation or
transportation to and from schools;
(C) delivery vehicles for goods or services;
(D) ground support vehicles at public airports,
including vehicles to carry baggage or push airplanes
away from terminal gates; and
(E) motorized two-wheel bicycles, scooters, or
other vehicles for use by law enforcement personnel or
other State or local government or metropolitan
transportation authority employees.
(2) The acquisition of ultra-low sulfur diesel vehicles.
(3) Infrastructure necessary to directly support an
alternative fuel vehicle project funded by the grant, including
fueling and other support equipment.
(4) Operation and maintenance of vehicles, infrastructure,
and equipment acquired as part of a project funded by the
grant.
(c) Applications.--
(1) Requirements.--The Secretary shall issue requirements
for applying for grants under the pilot program. At a minimum,
the Secretary shall require that applications be submitted by
the head of a State or local government or a metropolitan
transportation authority, or any combination thereof, and shall
include--
(A) at least one project to enable passengers or
goods to be transferred directly from one alternative
fuel vehicle or ultra-low sulfur diesel vehicle to
another in a linked transportation system;
(B) a description of the projects proposed in the
application, including how they meet the requirements
of this subtitle;
(C) an estimate of the ridership or degree of use
of the projects proposed in the application;
(D) an estimate of the air pollution emissions
reduced and fossil fuel displaced as a result of the
projects proposed in the application, and a plan to
collect and disseminate environmental data, related to
the projects to be funded under the grant, over the
life of the projects;
(E) a description of how the projects proposed in
the application will be sustainable without Federal
assistance after the completion of the term of the
grant;
(F) a complete description of the costs of each
project proposed in the application, including
acquisition, construction, operation, and maintenance
costs over the expected life of the project;
(G) a description of which costs of the projects
proposed in the application will be supported by
Federal assistance under this subtitle; and
(H) documentation to the satisfaction of the
Secretary that diesel fuel containing sulfur at not
more than 15 parts per million is available for
carrying out the projects, and a commitment by the
applicant to use such fuel in carrying out the
projects.
(2) Partners.--An applicant under paragraph (1) may carry
out projects under the pilot program in partnership with public
and private entities.
(d) Selection Criteria.--In evaluating applications under the pilot
program, the Secretary shall consider each applicant's previous
experience with similar projects and shall give priority consideration
to applications that--
(1) are most likely to maximize protection of the
environment;
(2) demonstrate the greatest commitment on the part of the
applicant to ensure funding for the proposed projects and the
greatest likelihood that each project proposed in the
application will be maintained or expanded after Federal
assistance under this subtitle is completed; and
(3) exceed the minimum requirements of subsection
(c)(1)(A).
(e) Pilot Project Requirements.--
(1) Maximum amount.--The Secretary shall not provide more
than $20,000,000 in Federal assistance under the pilot program
to any applicant.
(2) Cost sharing.--The Secretary shall not provide more
than 50 percent of the cost, incurred during the period of the
grant, of any project under the pilot program.
(3) Maximum period of grants.--The Secretary shall not fund
any applicant under the pilot program for more than 5 years.
(4) Deployment and distribution.--The Secretary shall seek
to the maximum extent practicable to achieve nationwide
deployment of alternative fuel vehicles through the pilot
program, and shall ensure a broad geographic distribution of
project sites.
(5) Transfer of information and knowledge.--The Secretary
shall establish mechanisms to ensure that the information and
knowledge gained by participants in the pilot program are
transferred among the pilot program participants and to other
interested parties, including other applicants that submitted
applications.
(f) Schedule.--
(1) Publication.--Not later than 3 months after the date of
the enactment of this Act, the Secretary shall publish in the
Federal Register, Commerce Business Daily, and elsewhere as
appropriate, a request for applications to undertake projects
under the pilot program. Applications shall be due within 6
months of the publication of the notice.
(2) Selection.--Not later than 6 months after the date by
which applications for grants are due, the Secretary shall
select by competitive, peer review all applications for
projects to be awarded a grant under the pilot program.
(g) Limit on Funding.--The Secretary shall provide not less than 20
percent and not more than 25 percent of the grant funding made
available under this section for the acquisition of ultra-low sulfur
diesel vehicles.
SEC. 2104. REPORTS TO CONGRESS.
(a) Initial Report.--Not later than 2 months after the date grants
are awarded under this subtitle, the Secretary shall transmit to the
appropriate congressional committees a report containing--
(1) an identification of the grant recipients and a
description of the projects to be funded;
(2) an identification of other applicants that submitted
applications for the pilot program; and
(3) a description of the mechanisms used by the Secretary
to ensure that the information and knowledge gained by
participants in the pilot program are transferred among the
pilot program participants and to other interested parties,
including other applicants that submitted applications.
(b) Evaluation.--Not later than 3 years after the date of the
enactment of this Act, and annually thereafter until the pilot program
ends, the Secretary shall transmit to the appropriate congressional
committees a report containing an evaluation of the effectiveness of
the pilot program, including an assessment of the benefits to the
environment derived from the projects included in the pilot program as
well as an estimate of the potential benefits to the environment to be
derived from widespread application of alternative fuel vehicles and
ultra-low sulfur diesel vehicles.
SEC. 2105. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary
$200,000,000 to carry out this subtitle, to remain available until
expended.
Subtitle B--Distributed Power Hybrid Energy Systems
SEC. 2121. FINDINGS.
The Congress makes the following findings:
(1) Our ability to take advantage of our renewable,
indigenous resources in a cost-effective manner can be greatly
advanced through systems that compensate for the intermittent
nature of these resources through distributed power hybrid
systems.
(2) Distributed power hybrid systems can--
(A) shelter consumers from temporary energy price
volatility created by supply and demand mismatches;
(B) increase the reliability of energy supply; and
(C) address significant local differences in power
and economic development needs and resource
availability that exist throughout the United States.
(3) Realizing these benefits will require a concerted and
integrated effort to remove market barriers to adopting
distributed power hybrid systems by--
(A) developing the technological foundation that
enables designing, testing, certifying, and operating
distributed power hybrid systems; and
(B) providing the policy framework that reduces
such barriers.
(4) While many of the individual distributed power hybrid
systems components are either available or under development in
existing private and public sector programs, the capabilities
to integrate these components into workable distributed power
hybrid systems that maximize benefits to consumers in a safe
manner often are not coherently being addressed.
SEC. 2122. DEFINITIONS.
For purposes of this subtitle--
(1) the term ``distributed power hybrid system'' means a
system using 2 or more distributed power sources, operated
together with associated supporting equipment, including
storage equipment, and software necessary to provide electric
power onsite and to an electric distribution system; and
(2) the term ``distributed power source'' means an
independent electric energy source of usually 10 megawatts or
less located close to a residential, commercial, or industrial
load center, including--
(A) reciprocating engines;
(B) turbines;
(C) microturbines;
(D) fuel cells;
(E) solar electric systems;
(F) wind energy systems;
(G) biopower systems;
(H) geothermal power systems; or
(I) combined heat and power systems.
SEC. 2123. STRATEGY.
(a) Requirement.--Not later than 1 year after the date of the
enactment of this Act, the Secretary shall develop and transmit to the
Congress a distributed power hybrid systems strategy showing--
(1) needs best met with distributed power hybrid systems
configurations, especially systems including one or more solar
or renewable power sources; and
(2) technology gaps and barriers (including barriers to
efficient connection with the power grid) that hamper the use
of distributed power hybrid systems.
(b) Elements.--The strategy shall provide for development of--
(1) system integration tools (including databases, computer
models, software, sensors, and controls) needed to plan,
design, build, and operate distributed power hybrid systems for
maximum benefits;
(2) tests of distributed power hybrid systems, power parks,
and microgrids, including field tests and cost-shared
demonstrations with industry;
(3) design tools to characterize the benefits of
distributed power hybrid systems for consumers, to reduce
testing needs, to speed commercialization, and to generate data
characterizing grid operations, including interconnection
requirements;
(4) precise resource assessment tools to map local
resources for distributed power hybrid systems; and
(5) a comprehensive research, development, demonstration,
and commercial application program to ensure the reliability,
efficiency, and environmental integrity of distributed energy
resources, focused on filling gaps in distributed power hybrid
systems technologies identified under subsection (a)(2), which
may include--
(A) integration of a wide variety of advanced
technologies into distributed power hybrid systems;
(B) energy storage devices;
(C) environmental control technologies;
(D) interconnection standards, protocols, and
equipment; and
(E) ancillary equipment for dispatch and control.
(c) Implementation and Integration.--The Secretary shall implement
the strategy transmitted under subsection (a) and the research program
under subsection (b)(5). Activities pursuant to the strategy shall be
integrated with other activities of the Department's Office of Power
Technologies.
SEC. 2124. HIGH POWER DENSITY INDUSTRY PROGRAM.
(a) In General.--The Secretary shall develop and implement a
comprehensive research, development, demonstration, and commercial
application program to improve energy efficiency, reliability, and
environmental responsibility in high power density industries, such as
data centers, server farms, telecommunications facilities, and heavy
industry.
(b) Areas.--In carrying out this section, the Secretary shall
consider technologies that provide--
(1) significant improvement in efficiency of high power
density facilities, and in data and telecommunications centers,
using advanced thermal control technologies;
(2) significant improvements in air-conditioning efficiency
in facilities such as data centers and telecommunications
facilities;
(3) significant advances in peak load reduction; and
(4) advanced real time metering and load management and
control devices.
(c) Implementation and Integration.--Activities pursuant to this
program shall be integrated with other activities of the Department's
Office of Power Technologies.
SEC. 2125. MICRO-COGENERATION ENERGY TECHNOLOGY.
The Secretary shall make competitive, merit-based grants to
consortia of private sector entities for the development of micro-
cogeneration energy technology. The consortia shall explore the
creation of small-scale combined heat and power through the use of
residential heating appliances. There are authorized to be appropriated
to the Secretary $20,000,000 to carry out this section, to remain
available until expended.
SEC. 2126. PROGRAM PLAN.
Within 4 months after the date of the enactment of this Act, the
Secretary, in consultation with other appropriate Federal agencies,
shall prepare and transmit 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
distributed energy resources, power transmission, and high power
density industries to prioritize appropriate program areas. The
Secretary shall also seek the advice of utilities, energy services
providers, manufacturers, institutions of higher learning, other
appropriate State and local agencies, environmental organizations,
professional and technical societies, and any other persons the
Secretary considers appropriate.
SEC. 2127. REPORT.
Two years after date of the enactment of this Act and at 2-year
intervals thereafter, the Secretary, jointly with other appropriate
Federal agencies, shall transmit a report to Congress describing the
progress made to achieve the purposes of this subtitle.
SEC. 2128. VOLUNTARY CONSENSUS STANDARDS.
Not later than 2 years after the date of the enactment of this Act,
the Secretary, in consultation with the National Institute of Standards
and Technology, shall work with the Institute of Electrical and
Electronic Engineers and other standards development organizations
toward the development of voluntary consensus standards for distributed
energy systems for use in manufacturing and using equipment and systems
for connection with electric distribution systems, for obtaining
electricity from, or providing electricity to, such systems.
Subtitle C--Secondary Electric Vehicle Battery Use
SEC. 2131. DEFINITIONS.
For purposes of this subtitle, the term--
(1) ``battery'' means an energy storage device that
previously has been used to provide motive power in a vehicle
powered in whole or in part by electricity; and
(2) ``associated equipment'' means equipment located at the
location where the batteries will be used that is necessary to
enable the use of the energy stored in the batteries.
SEC. 2132. ESTABLISHMENT OF SECONDARY ELECTRIC VEHICLE BATTERY USE
PROGRAM.
(a) Program.--The Secretary shall establish and conduct a research,
development, and demonstration program for the secondary use of
batteries where the original use of such batteries was in
transportation applications. Such program shall be--
(1) designed to demonstrate the use of batteries in
secondary application, including utility and commercial power
storage and power quality;
(2) structured to evaluate the performance, including
longevity of useful service life and costs, of such batteries
in field operations, and evaluate the necessary supporting
infrastructure, including disposal and reuse of batteries; and
(3) coordinated with ongoing secondary battery use programs
underway at the national laboratories and in industry.
(b) Solicitation.--(1) Not later than 6 months after the date of
the enactment of this Act, the Secretary shall solicit proposals to
demonstrate the secondary use of batteries and associated equipment and
supporting infrastructure in geographic locations throughout the United
States. The Secretary may make additional solicitations for proposals
if the Secretary determines that such solicitations are necessary to
carry out this section.
(2)(A) Proposals submitted in response to a solicitation under this
section shall include--
(i) a description of the project, including the batteries
to be used in the project, the proposed locations and
applications for the batteries, the number of batteries to be
demonstrated, and the type, characteristics, and estimated
life-cycle costs of the batteries compared to other energy
storage devices currently used;
(ii) the contribution, if any, of State or local
governments and other persons to the demonstration project;
(iii) the type of associated equipment to be demonstrated
and the type of supporting infrastructure to be demonstrated;
and
(iv) any other information the Secretary considers
appropriate.
(B) If the proposal includes a lease arrangement, the proposal
shall indicate the terms of such lease arrangement for the batteries
and associated equipment.
(c) Selection of Proposals.--(1)(A) The Secretary shall, not later
than 3 months after the closing date established by the Secretary for
receipt of proposals under subsection (b), select at least 5 proposals
to receive financial assistance under this section.
(B) No one project selected under this section shall receive more
than 25 percent of the funds authorized under this section. No more
than 3 projects selected under this section shall demonstrate the same
battery type.
(2) In selecting a proposal under this section, the Secretary shall
consider--
(A) the ability of the proposer to acquire the batteries
and associated equipment and to successfully manage and conduct
the demonstration project, including the reporting requirements
set forth in paragraph (3)(B);
(B) the geographic and climatic diversity of the projects
selected;
(C) the long-term technical and competitive viability of
the batteries to be used in the project and of the original
manufacturer of such batteries;
(D) the suitability of the batteries for their intended
uses;
(E) the technical performance of the battery, including the
expected additional useful life and the battery's ability to
retain energy;
(F) the environmental effects of the use of and disposal of
the batteries proposed to be used in the project selected;
(G) the extent of involvement of State or local government
and other persons in the demonstration project and whether such
involvement will--
(i) permit a reduction of the Federal cost share
per project; or
(ii) otherwise be used to allow the Federal
contribution to be provided to demonstrate a greater
number of batteries; and
(H) such other criteria as the Secretary considers
appropriate.
(3) Conditions.--The Secretary shall require that--
(A) as a part of a demonstration project, the users of the
batteries provide to the proposer information regarding the
operation, maintenance, performance, and use of the batteries,
and the proposer provide such information to the battery
manufacturer, for 3 years after the beginning of the
demonstration project;
(B) the proposer provide to the Secretary such information
regarding the operation, maintenance, performance, and use of
the batteries as the Secretary may request during the period of
the demonstration project; and
(C) the proposer provide at least 50 percent of the costs
associated with the proposal.
SEC. 2133. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary, from
amounts authorized under section 2161(a), for purposes of this
subtitle--
(1) $1,000,000 for fiscal year 2002;
(2) $7,000,000 for fiscal year 2003; and
(3) $7,000,000 for fiscal year 2004.
Such appropriations may remain available until expended.
Subtitle D--Green School Buses
SEC. 2141. SHORT TITLE.
This subtitle may be cited as the ``Clean Green School Bus Act of
2001''.
SEC. 2142. ESTABLISHMENT OF PILOT PROGRAM.
(a) Establishment.--The Secretary shall establish a pilot program
for awarding grants on a competitive basis to eligible entities for the
demonstration and commercial application of alternative fuel school
buses and ultra-low sulfur diesel school buses.
(b) Requirements.--Not later than 3 months after the date of the
enactment of this Act, the Secretary shall establish and publish in the
Federal register grant requirements on eligibility for assistance, and
on implementation of the program established under subsection (a),
including certification requirements to ensure compliance with this
subtitle.
(c) Solicitation.--Not later than 6 months after the date of the
enactment of this Act, the Secretary shall solicit proposals for grants
under this section.
(d) Eligible Recipients.--A grant shall be awarded under this
section only--
(1) to a local governmental entity responsible for
providing school bus service for one or more public school
systems; or
(2) jointly to an entity described in paragraph (1) and a
contracting entity that provides school bus service to the
public school system or systems.
(e) Types of Grants.--
(1) In general.--Grants under this section shall be for the
demonstration and commercial application of technologies to
facilitate the use of alternative fuel school buses and ultra-
low sulfur diesel school buses in lieu of buses manufactured
before model year 1977 and diesel-powered buses manufactured
before model year 1991.
(2) No economic benefit.--Other than the receipt of the
grant, a recipient of a grant under this section may not
receive any economic benefit in connection with the receipt of
the grant.
(3) Priority of grant applications.--The Secretary shall
give priority to awarding grants to applicants who can
demonstrate the use of alternative fuel buses and ultra-low
sulfur diesel school buses in lieu of buses manufactured before
model year 1977.
(f) Conditions of Grant.--A grant provided under this section shall
include the following conditions:
(1) All buses acquired with funds provided under the grant
shall be operated as part of the school bus fleet for which the
grant was made for a minimum of 5 years.
(2) Funds provided under the grant may only be used--
(A) to pay the cost, except as provided in
paragraph (3), of new alternative fuel school buses or
ultra-low sulfur diesel school buses, including State
taxes and contract fees; and
(B) to provide--
(i) up to 10 percent of the price of the
alternative fuel buses acquired, for necessary
alternative fuel infrastructure if the
infrastructure will only be available to the
grant recipient; and
(ii) up to 15 percent of the price of the
alternative fuel buses acquired, for necessary
alternative fuel infrastructure if the
infrastructure will be available to the grant
recipient and to other bus fleets.
(3) The grant recipient shall be required to provide at
least the lesser of 15 percent of the total cost of each bus
received or $15,000 per bus.
(4) In the case of a grant recipient receiving a grant to
demonstrate ultra-low sulfur diesel school buses, the grant
recipient shall be required to provide documentation to the
satisfaction of the Secretary that diesel fuel containing
sulfur at not more than 15 parts per million is available for
carrying out the purposes of the grant, and a commitment by the
applicant to use such fuel in carrying out the purposes of the
grant.
(g) Buses.--Funding under a grant made under this section may be
used to demonstrate the use only of new alternative fuel school buses
or ultra-low sulfur diesel school buses--
(1) with a gross vehicle weight of greater than 14,000
pounds;
(2) that are powered by a heavy duty engine;
(3) that, in the case of alternative fuel school buses,
emit not more than--
(A) for buses manufactured in model years 2001 and
2002, 2.5 grams per brake horsepower-hour of nonmethane
hydrocarbons and oxides of nitrogen and .01 grams per
brake horsepower-hour of particulate matter; and
(B) for buses manufactured in model years 2003
through 2006, 1.8 grams per brake horsepower-hour of
nonmethane hydrocarbons and oxides of nitrogen and .01
grams per brake horsepower-hour of particulate matter;
and
(4) that, in the case of ultra-low sulfur diesel school
buses, emit not more than--
(A) for buses manufactured in model years 2001
through 2003, 3.0 grams per brake horsepower-hour of
nonmethane hydrocarbons and oxides of nitrogen and .01
grams per brake horsepower-hour of particulate matter;
and
(B) for buses manufactured in model years 2004
through 2006, 2.5 grams per brake horsepower-hour of
nonmethane hydrocarbons and oxides of nitrogen and .01
grams per brake horsepower-hour of particulate matter,
except that under no circumstances shall buses be acquired
under this section that emit nonmethane hydrocarbons, oxides of
nitrogen, or particulate matter at a rate greater than the best
performing technology of ultra-low sulfur diesel school buses
commercially available at the time the grant is made.
(h) Deployment and Distribution.--The Secretary shall seek to the
maximum extent practicable to achieve nationwide deployment of
alternative fuel school buses through the program under this section,
and shall ensure a broad geographic distribution of grant awards, with
a goal of no State receiving more than 10 percent of the grant funding
made available under this section for a fiscal year.
(i) Limit on Funding.--The Secretary shall provide not less than 20
percent and not more than 25 percent of the grant funding made
available under this section for any fiscal year for the acquisition of
ultra-low sulfur diesel school buses.
(j) Definitions.--For purposes of this section--
(1) the term ``alternative fuel school bus'' means a bus
powered substantially by electricity (including electricity
supplied by a fuel cell), or by liquefied natural gas,
compressed natural gas, liquefied petroleum gas, hydrogen,
propane, or methanol or ethanol at no less than 85 percent by
volume; and
(2) the term ``ultra-low sulfur diesel school bus'' means a
school bus powered by diesel fuel which contains sulfur at not
more than 15 parts per million.
SEC. 2143. FUEL CELL BUS DEVELOPMENT AND DEMONSTRATION PROGRAM.
(a) Establishment of Program.--The Secretary shall establish a
program for entering into cooperative agreements with private sector
fuel cell bus developers for the development of fuel cell-powered
school buses, and subsequently with not less than 2 units of local
government using natural gas-powered school buses and such private
sector fuel cell bus developers to demonstrate the use of fuel cell-
powered school buses.
(b) Cost Sharing.--The non-Federal contribution for activities
funded under this section shall be not less than--
(1) 20 percent for fuel infrastructure development
activities; and
(2) 50 percent for demonstration activities and for
development activities not described in paragraph (1).
(c) Funding.--No more than $25,000,000 of the amounts authorized
under section 2144 may be used for carrying out this section for the
period encompassing fiscal years 2002 through 2006.
(d) Reports to Congress.--Not later than 3 years after the date of
the enactment of this Act, and not later than October 1, 2006, the
Secretary shall transmit to the appropriate congressional committees a
report that--
(1) evaluates the process of converting natural gas
infrastructure to accommodate fuel cell-powered school buses;
and
(2) assesses the results of the development and
demonstration program under this section.
SEC. 2144. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary for
carrying out this subtitle, to remain available until expended--
(1) $40,000,000 for fiscal year 2002;
(2) $50,000,000 for fiscal year 2003;
(3) $60,000,000 for fiscal year 2004;
(4) $70,000,000 for fiscal year 2005; and
(5) $80,000,000 for fiscal year 2006.
Subtitle E--Next Generation Lighting Initiative
SEC. 2151. SHORT TITLE.
This subtitle may be cited as ``Next Generation Lighting Initiative
Act''.
SEC. 2152. DEFINITION.
In this subtitle, the term ``Lighting Initiative'' means the ``Next
Generation Lighting Initiative'' established under section 2153(a).
SEC. 2153. NEXT GENERATION LIGHTING INITIATIVE.
(a) Establishment.--The Secretary is authorized to establish a
lighting initiative to be known as the ``Next Generation Lighting
Initiative'' to research, develop, and conduct demonstration activities
on advanced lighting technologies, including white light emitting
diodes.
(b) Research Objectives.--The research objectives of the Lighting
Initiative shall be to develop, by 2011, advanced lighting technologies
that, compared to incandescent and fluorescent lighting technologies as
of the date of the enactment of this Act, are--
(1) longer lasting;
(2) more energy-efficient; and
(3) cost-competitive.
SEC. 2154. STUDY.
(a) In General.--Not later than 6 months after the date of the
enactment of this Act, the Secretary, in consultation with other
Federal agencies, as appropriate, shall complete a study on strategies
for the development and commercial application of advanced lighting
technologies. The Secretary shall request a review by the National
Academies of Sciences and Engineering of the study under this
subsection, and shall transmit the results of the study to the
appropriate congressional committees.
(b) Requirements.--The study shall--
(1) develop a comprehensive strategy to implement the
Lighting Initiative; and
(2) identify the research and development, manufacturing,
deployment, and marketing barriers that must be overcome to
achieve a goal of a 25 percent market penetration by advanced
lighting technologies into the incandescent and fluorescent
lighting market by the year 2012.
(c) Implementation.--As soon as practicable after the review of the
study under subsection (a) is transmitted to the Secretary by the
National Academies of Sciences and Engineering, the Secretary shall
adapt the implementation of the Lighting Initiative taking into
consideration the recommendations of the National Academies of Sciences
and Engineering.
SEC. 2155. GRANT PROGRAM.
(a) In General.--Subject to section 2603 of this Act, the Secretary
may make merit-based competitive grants to firms and research
organizations that conduct research, development, and demonstration
projects related to advanced lighting technologies.
(b) Annual Review.--
(1) In general.--An annual independent review of the grant-
related activities of firms and research organizations
receiving a grant under this section shall be conducted by a
committee appointed by the Secretary under the Federal Advisory
Committee Act (5 U.S.C. App.), or, at the request of the
Secretary, a committee appointed by the National Academies of
Sciences and Engineering.
(2) Requirements.--Using clearly defined standards
established by the Secretary, the review shall assess
technology advances and progress toward commercialization of
the grant-related activities of firms or research organizations
during each fiscal year of the grant program.
(c) Technical and Financial Assistance.--The national laboratories
and other Federal agencies, as appropriate, shall cooperate with and
provide technical and financial assistance to firms and research
organizations conducting research, development, and demonstration
projects carried out under this subtitle.
Subtitle F--Department of Energy Authorization of Appropriations
SEC. 2161. AUTHORIZATION OF APPROPRIATIONS.
(a) Operation and Maintenance.--In addition to amounts authorized
to be appropriated under section 2105, section 2125, and section 2144,
there are authorized to be appropriated to the Secretary for subtitle
B, subtitle C, subtitle E, and for Energy Conservation operation and
maintenance (including Building Technology, State and Community Sector
(Nongrants), Industry Sector, Transportation Sector, Power
Technologies, and Policy and Management) $625,000,000 for fiscal year
2002, $700,000,000 for fiscal year 2003, and $800,000,000 for fiscal
year 2004, to remain available until expended.
(b) Limits on Use of Funds.--None of the funds authorized to be
appropriated in subsection (a) may be used for--
(1) Building Technology, State and Community Sector--
(A) Residential Building Energy Codes;
(B) Commercial Building Energy Codes;
(C) Lighting and Appliance Standards;
(D) Weatherization Assistance Program; or
(E) State Energy Program; or
(2) Federal Energy Management Program.
Subtitle G--Environmental Protection Agency Office of Air and Radiation
Authorization of Appropriations
SEC. 2171. SHORT TITLE.
This subtitle may be cited as the ``Environmental Protection Agency
Office of Air and Radiation Authorization Act of 2001''.
SEC. 2172. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Administrator for
Office of Air and Radiation Climate Change Protection Programs
$121,942,000 for fiscal year 2002, $126,800,000 for fiscal year 2003,
and $131,800,000 for fiscal year 2004 to remain available until
expended, of which--
(1) $52,731,000 for fiscal year 2002, $54,800,000 for
fiscal year 2003, and $57,000,000 for fiscal year 2004 shall be
for Buildings;
(2) $32,441,000 for fiscal year 2002, $33,700,000 for
fiscal year 2003, and $35,000,000 for fiscal year 2004 shall be
for Transportation;
(3) $27,295,000 for fiscal year 2002, $28,400,000 for
fiscal year 2003, and $29,500,000 for fiscal year 2004 shall be
for Industry;
(4) $1,700,000 for fiscal year 2002, $1,800,000 for fiscal
year 2003, and $1,900,000 for fiscal year 2004 shall be for
Carbon Removal;
(5) $2,500,000 for fiscal year 2002, $2,600,000 for fiscal
year 2003, and $2,700,000 for fiscal year 2004 shall be for
State and Local Climate; and
(6) $5,275,000 for fiscal year 2002, $5,500,000 for fiscal
year 2003, and $5,700,000 for fiscal year 2004 shall be for
International Capacity Building.
SEC. 2173. LIMITS ON USE OF FUNDS.
(a) Production or Provision of Articles or Services.--None of the
funds authorized to be appropriated by this subtitle may be used to
produce or provide articles or services for the purpose of selling the
articles or services to a person outside the Federal Government, unless
the Administrator determines that comparable articles or services are
not available from a commercial source in the United States.
(b) Requests for Proposals.--None of the funds authorized to be
appropriated by this subtitle may be used by the Environmental
Protection Agency to prepare or initiate Requests for Proposals for a
program if the program has not been authorized by Congress.
SEC. 2174. COST SHARING.
(a) Research and Development.--Except as otherwise provided in this
subtitle, for research and development programs carried out under this
subtitle, the Administrator shall require a commitment from non-Federal
sources of at least 20 percent of the cost of the project. The
Administrator may reduce or eliminate the non-Federal requirement under
this subsection if the Administrator determines that the research and
development is of a basic or fundamental nature.
(b) Demonstration and Commercial Application.--Except as otherwise
provided in this subtitle, the Administrator shall require at least 50
percent of the costs directly and specifically related to any
demonstration or commercial application project under this subtitle to
be provided from non-Federal sources. The Administrator may reduce the
non-Federal requirement under this subsection if the Administrator
determines that the reduction is necessary and appropriate considering
the technological risks involved in the project and is necessary to
meet the objectives of this subtitle.
(c) Calculation of Amount.--In calculating the amount of the non-
Federal commitment under subsection (a) or (b), the Administrator may
include personnel, services, equipment, and other resources.
SEC. 2175. LIMITATION ON DEMONSTRATION AND COMMERCIAL APPLICATIONS OF
ENERGY TECHNOLOGY.
The Administrator shall provide funding for scientific or energy
demonstration or commercial application of energy technology programs,
projects, or activities of the Office of Air and Radiation only for
technologies or processes that can be reasonably expected to yield new,
measurable benefits to the cost, efficiency, or performance of the
technology or process.
SEC. 2176. REPROGRAMMING.
(a) Authority.--The Administrator may use amounts appropriated
under this subtitle for a program, project, or activity other than the
program, project, or activity for which such amounts were appropriated
only if--
(1) the Administrator has transmitted to the appropriate
congressional committees a report described in subsection (b)
and a period of 30 days has elapsed after such committees
receive the report;
(2) amounts used for the program, project, or activity do
not exceed--
(A) 105 percent of the amount authorized for the
program, project, or activity; or
(B) $250,000 more than the amount authorized for
the program, project, or activity,
whichever is less; and
(3) the program, project, or activity has been presented
to, or requested of, the Congress by the Administrator.
(b) Report.--(1) The report referred to in subsection (a) is a
report containing a full and complete statement of the action proposed
to be taken and the facts and circumstances relied upon in support of
the proposed action.
(2) In the computation of the 30-day period under subsection (a),
there shall be excluded any day on which either House of Congress is
not in session because of an adjournment of more than 3 days to a day
certain.
(c) Limitations.--(1) In no event may the total amount of funds
obligated pursuant to this subtitle exceed the total amount authorized
to be appropriated by this subtitle.
(2) Funds appropriated pursuant to this subtitle may not be used
for an item for which Congress has declined to authorize funds.
SEC. 2177. BUDGET REQUEST FORMAT.
The Administrator shall provide to the appropriate congressional
committees, to be transmitted at the same time as the Environmental
Protection Agency's annual budget request submission, a detailed
justification for budget authorization for the programs, projects, and
activities for which funds are authorized by this subtitle. Each such
document shall include, for the fiscal year for which funding is being
requested and for the 2 previous fiscal years--
(1) a description of, and funding requested or allocated
for, each such program, project, or activity;
(2) an identification of all recipients of funds to conduct
such programs, projects, and activities; and
(3) an estimate of the amounts to be expended by each
recipient of funds identified under paragraph (2).
SEC. 2178. OTHER PROVISIONS.
(a) Annual Operating Plan and Reports.--The Administrator shall
provide simultaneously to the Committee on Science of the House of
Representatives--
(1) any annual operating plan or other operational funding
document, including any additions or amendments thereto; and
(2) any report relating to the environmental research or
development, scientific or energy research, development, or
demonstration, or commercial application of energy technology
programs, projects, or activities of the Environmental
Protection Agency,
provided to any committee of Congress.
(b) Notice of Reorganization.--The Administrator shall provide
notice to the appropriate congressional committees not later than 15
days before any reorganization of any environmental research or
development, scientific or energy research, development, or
demonstration, or commercial application of energy technology program,
project, or activity of the Office of Air and Radiation.
Subtitle H--National Building Performance Initiative
SEC. 2181. NATIONAL BUILDING PERFORMANCE INITIATIVE.
(a) Interagency Group.--Not later than 3 months after the date of
the enactment of this Act, the Director of the Office of Science and
Technology Policy shall establish an Interagency Group responsible for
the development and implementation of a National Building Performance
Initiative to address energy conservation and research and development
and related issues. The National Institute of Standards and Technology
shall provide necessary administrative support for the Interagency
Group.
(b) Plan.--Not later than 9 months after the date of the enactment
of this Act, the Interagency Group shall transmit to the Congress a
multiyear implementation plan describing the Federal role in reducing
the costs, including energy costs, of using, owning, and operating
commercial, institutional, residential, and industrial buildings by 30
percent by 2020. The plan shall include--
(1) research, development, and demonstration of systems and
materials for new construction and retrofit, on the building
envelope and components; and
(2) the collection and dissemination in a usable form of
research results and other pertinent information to the design
and construction industry, government officials, and the
general public.
(c) National Building Performance Advisory Committee.--A National
Building Performance Advisory Committee shall be established to advise
on creation of the plan, review progress made under the plan, advise on
any improvements that should be made to the plan, and report to the
Congress on actions that have been taken to advance the Nation's
capability in furtherance of the plan. The members shall include
representatives of a broad cross-section of interests such as the
research, technology transfer, architectural, engineering, and
financial communities; materials and systems suppliers; State, county,
and local governments; the residential, multifamily, and commercial
sectors of the construction industry; and the insurance industry.
(d) Report.--The Interagency Group shall, within 90 days after the
end of each fiscal year, transmit a report to the Congress describing
progress achieved during the preceding fiscal year by government at all
levels and by the private sector, toward implementing the plan
developed under subsection (b), and including any amendments to the
plan.
TITLE II--RENEWABLE ENERGY
Subtitle A--Hydrogen
SEC. 2201. SHORT TITLE.
This subtitle may be cited as the ``Robert S. Walker and George E.
Brown, Jr. Hydrogen Energy Act of 2001''.
SEC. 2202. PURPOSES.
Section 102(b) of the Spark M. Matsunaga Hydrogen Research,
Development, and Demonstration Act of 1990 is amended to read as
follows:
``(b) Purposes.--The purposes of this Act are--
``(1) to direct the Secretary to conduct research,
development, and demonstration activities leading to the
production, storage, transportation, and use of hydrogen for
industrial, commercial, residential, transportation, and
utility applications;
``(2) to direct the Secretary to develop a program of
technology assessment, information dissemination, and education
in which Federal, State, and local agencies, members of the
energy, transportation, and other industries, and other
entities may participate; and
``(3) to develop methods of hydrogen production that
minimize adverse environmental impacts, with emphasis on
efficient and cost-effective production from renewable energy
resources.''.
SEC. 2203. DEFINITIONS.
Section 102(c) of the Spark M. Matsunaga Hydrogen Research,
Development, and Demonstration Act of 1990 is amended--
(1) by redesignating paragraphs (1) through (3) as
paragraphs (2) through (4), respectively; and
(2) by inserting before paragraph (2), as so redesignated
by paragraph (1) of this section, the following new paragraph:
``(1) `advisory committee' means the advisory committee
established under section 108;''.
SEC. 2204. REPORTS TO CONGRESS.
Section 103 of the Spark M. Matsunaga Hydrogen Research,
Development, and Demonstration Act of 1990 is amended to read as
follows:
``SEC. 103. REPORTS TO CONGRESS.
``(a) Requirement.--Not later than 1 year after the date of the
enactment of the Robert S. Walker and George E. Brown, Jr. Hydrogen
Energy Act of 2001, and biennially thereafter, the Secretary shall
transmit to Congress a detailed report on the status and progress of
the programs and activities authorized under this Act.
``(b) Contents.--A report under subsection (a) shall include, in
addition to any views and recommendations of the Secretary--
``(1) an assessment of the extent to which the program is
meeting the purposes specified in section 102(b);
``(2) a determination of the effectiveness of the
technology assessment, information dissemination, and education
program established under section 106;
``(3) an analysis of Federal, State, local, and private
sector hydrogen-related research, development, and
demonstration activities to identify productive areas for
increased intergovernmental and private-public sector
collaboration; and
``(4) recommendations of the advisory committee for any
improvements needed in the programs and activities authorized
by this Act.''.
SEC. 2205. HYDROGEN RESEARCH AND DEVELOPMENT.
Section 104 of the Spark M. Matsunaga Hydrogen Research,
Development, and Demonstration Act of 1990 is amended to read as
follows:
``SEC. 104. HYDROGEN RESEARCH AND DEVELOPMENT.
``(a) Establishment of Program.--The Secretary shall conduct a
hydrogen research and development program relating to production,
storage, transportation, and use of hydrogen, with the goal of enabling
the private sector to demonstrate the technical feasibility of using
hydrogen for industrial, commercial, residential, transportation, and
utility applications.
``(b) Elements.--In conducting the program authorized by this
section, the Secretary shall--
``(1) give particular attention to developing an
understanding and resolution of critical technical issues
preventing the introduction of hydrogen as an energy carrier
into the marketplace;
``(2) initiate or accelerate existing research and
development in critical technical issues that will contribute
to the development of more economical hydrogen production,
storage, transportation, and use, including critical technical
issues with respect to production (giving priority to those
production techniques that use renewable energy resources as
their primary source of energy for hydrogen production),
liquefaction, transmission, distribution, storage, and use
(including use of hydrogen in surface transportation); and
``(3) survey private sector and public sector hydrogen
research and development activities worldwide, and take steps
to ensure that research and development activities under this
section do not--
``(A) duplicate any available research and
development results; or
``(B) displace or compete with the privately funded
hydrogen research and development activities of United
States industry.
``(c) Evaluation of Technologies.--The Secretary shall evaluate,
for the purpose of determining whether to undertake or fund research
and development activities under this section, any reasonable new or
improved technology that could lead or contribute to the development of
economical hydrogen production, storage, transportation, and use.
``(d) Research and Development Support.--The Secretary is
authorized to arrange for tests and demonstrations and to disseminate
to researchers and developers information, data, and other materials
necessary to support the research and development activities authorized
under this section and other efforts authorized under this Act,
consistent with section 106 of this Act.
``(e) Competitive Peer Review.--The Secretary shall carry out or
fund research and development activities under this section only on a
competitive basis using peer review.
``(f) Cost Sharing.--For research and development programs carried
out under this section, the Secretary shall require a commitment from
non-Federal sources of at least 20 percent of the cost of the project.
The Secretary may reduce or eliminate the non-Federal requirement under
this subsection if the Secretary determines that the research and
development is of a basic or fundamental nature.''.
SEC. 2206. DEMONSTRATIONS.
Section 105 of the Spark M. Matsunaga Hydrogen Research,
Development, and Demonstration Act of 1990 is amended--
(1) in subsection (a), by striking ``, preferably in self-
contained locations,'';
(2) in subsection (b), by striking ``at self-contained
sites'' and inserting ``, which shall include a fuel cell bus
demonstration program to address hydrogen production, storage,
and use in transit bus applications''; and
(3) in subsection (c), by inserting ``Non-Federal Funding
Requirement.--'' after ``(c)''.
SEC. 2207. TECHNOLOGY TRANSFER.
Section 106 of the Spark M. Matsunaga Hydrogen Research,
Development, and Demonstration Act of 1990 is amended to read as
follows:
``SEC. 106. TECHNOLOGY ASSESSMENT, INFORMATION DISSEMINATION, AND
EDUCATION PROGRAM.
``(a) Program.--The Secretary shall, in consultation with the
advisory committee, conduct a program designed to accelerate wider
application of hydrogen production, storage, transportation, and use
technologies, including application in foreign countries to increase
the global market for the technologies and foster global economic
development without harmful environmental effects.
``(b) Information.--The Secretary, in carrying out the program
authorized by subsection (a), shall--
``(1) undertake an update of the inventory and assessment,
required under section 106(b)(1) of this Act as in effect
before the date of the enactment of the Robert S. Walker and
George E. Brown, Jr. Hydrogen Energy Act of 2001, of hydrogen
technologies and their commercial capability to economically
produce, store, transport, or use hydrogen in industrial,
commercial, residential, transportation, and utility sector;
and
``(2) develop, with other Federal agencies as appropriate
and industry, an information exchange program to improve
technology transfer for hydrogen production, storage,
transportation, and use, which may consist of workshops,
publications, conferences, and a database for the use by the
public and private sectors.''.
SEC. 2208. COORDINATION AND CONSULTATION.
Section 107 of the Spark M. Matsunaga Hydrogen Research,
Development, and Demonstration Act of 1990 is amended--
(1) by amending paragraph (1) of subsection (a) to read as
follows:
``(1) shall establish a central point for the coordination
of all hydrogen research, development, and demonstration
activities of the Department; and''; and
(2) by amending subsection (c) to read as follows:
``(c) Consultation.--The Secretary shall consult with other Federal
agencies as appropriate, and the advisory committee, in carrying out
the Secretary's authorities pursuant to this Act.''.
SEC. 2209. ADVISORY COMMITTEE.
Section 108 of the Spark M. Matsunaga Hydrogen Research,
Development, and Demonstration Act of 1990 is amended to read as
follows:
``SEC. 108. ADVISORY COMMITTEE.
``(a) Establishment.--The Secretary shall enter into appropriate
arrangements with the National Academies of Sciences and Engineering to
establish an advisory committee consisting of experts drawn from
domestic industry, academia, Governmental laboratories, and financial,
environmental, and other organizations, as appropriate, to review and
advise on the progress made through the programs and activities
authorized under this Act.
``(b) Cooperation.--The heads of Federal agencies shall cooperate
with the advisory committee in carrying out this section and shall
furnish to the advisory committee such information as the advisory
committee reasonably deems necessary to carry out this section.
``(c) Review.--The advisory committee shall review and make any
necessary recommendations to the Secretary on--
``(1) the implementation and conduct of programs and
activities authorized under this Act; and
``(2) the economic, technological, and environmental
consequences of the deployment of hydrogen production, storage,
transportation, and use systems.
``(d) Responsibilities of the Secretary.--The Secretary shall
consider, but need not adopt, any recommendations of the advisory
committee under subsection (c). The Secretary shall provide an
explanation of the reasons that any such recommendations will not be
implemented and include such explanation in the report to Congress
under section 103(a) of this Act.''.
SEC. 2210. AUTHORIZATION OF APPROPRIATIONS.
Section 109 of the Spark M. Matsunaga Hydrogen Research,
Development, and Demonstration Act of 1990 is amended to read as
follows:
``SEC. 109. AUTHORIZATION OF APPROPRIATIONS.
``(a) Research and Development; Advisory Committee.--There are
authorized to be appropriated to the Secretary to carry out sections
104 and 108--
``(1) $40,000,000 for fiscal year 2002;
``(2) $45,000,000 for fiscal year 2003;
``(3) $50,000,000 for fiscal year 2004;
``(4) $55,000,000 for fiscal year 2005; and
``(5) $60,000,000 for fiscal year 2006.
``(b) Demonstration.--There are authorized to be appropriated to
the Secretary to carry out section 105--
``(1) $20,000,000 for fiscal year 2002;
``(2) $25,000,000 for fiscal year 2003;
``(3) $30,000,000 for fiscal year 2004;
``(4) $35,000,000 for fiscal year 2005; and
``(5) $40,000,000 for fiscal year 2006.''.
SEC. 2211. REPEAL.
(a) Repeal.--Title II of the Hydrogen Future Act of 1996 is
repealed.
(b) Conforming Amendment.--Section 2 of the Hydrogen Future Act of
1996 is amended by striking ``titles II and III'' and inserting ``title
III''.
Subtitle B--Bioenergy
SEC. 2221. SHORT TITLE.
This subtitle may be cited as the ``Bioenergy Act of 2001''.
SEC. 2222. FINDINGS.
Congress finds that bioenergy has potential to help--
(1) meet the Nation's energy needs;
(2) reduce reliance on imported fuels;
(3) promote rural economic development;
(4) provide for productive utilization of agricultural
residues and waste materials, and forestry residues and
byproducts; and
(5) protect the environment.
SEC. 2223. DEFINITIONS.
For purposes of this subtitle--
(1) the term ``bioenergy'' means energy derived from any
organic matter that is available on a renewable or recurring
basis, including agricultural crops and trees, wood and wood
wastes and residues, plants (including aquatic plants),
grasses, residues, fibers, and animal and other organic wastes;
(2) the term ``biofuels'' includes liquid or gaseous fuels,
industrial chemicals, or both;
(3) the term ``biopower'' includes the generation of
electricity or process steam or both; and
(4) the term ``integrated bioenergy research and
development'' includes biopower and biofuels applications.
SEC. 2224. AUTHORIZATION.
The Secretary is authorized to conduct environmental research and
development, scientific and energy research, development, and
demonstration, and commercial application of energy technology
programs, projects, and activities related to bioenergy, including
biopower energy systems, biofuels energy systems, and integrated
bioenergy research and development.
SEC. 2225. AUTHORIZATION OF APPROPRIATIONS.
(a) Biopower Energy Systems.--There are authorized to be
appropriated to the Secretary for Biopower Energy Systems programs,
projects, and activities--
(1) $45,700,000 for fiscal year 2002;
(2) $52,500,000 for fiscal year 2003;
(3) $60,300,000 for fiscal year 2004;
(4) $69,300,000 for fiscal year 2005; and
(5) $79,600,000 for fiscal year 2006.
(b) Biofuels Energy Systems.--There are authorized to be
appropriated to the Secretary for biofuels energy systems programs,
projects, and activities--
(1) $53,500,000 for fiscal year 2002;
(2) $61,400,000 for fiscal year 2003;
(3) $70,600,000 for fiscal year 2004;
(4) $81,100,000 for fiscal year 2005; and
(5) $93,200,000 for fiscal year 2006.
(c) Integrated Bioenergy Research and Development.--There are
authorized to be appropriated to the Secretary for integrated bioenergy
research and development programs, projects, and activities,
$49,000,000 for each of the fiscal years 2002 through 2006. Activities
funded under this subsection shall be coordinated with ongoing related
programs of other Federal agencies, including the Plant Genome Program
of the National Science Foundation. Of the funds authorized under this
subsection, at least $5,000,000 for each fiscal year shall be for
training and education targeted to minority and social disadvantaged
farmers and ranchers.
(d) Integrated Applications.--Amounts authorized to be appropriated
under this subtitle may be used to assist in the planning, design, and
implementation of projects to convert rice straw and barley grain into
biopower or biofuels.
Subtitle C--Transmission Infrastructure Systems
SEC. 2241. TRANSMISSION INFRASTRUCTURE SYSTEMS RESEARCH, DEVELOPMENT,
DEMONSTRATION, AND COMMERCIAL APPLICATION.
(a) In General.--The Secretary shall develop and implement a
comprehensive research, development, demonstration, and commercial
application program to ensure the reliability, efficiency, and
environmental integrity of electrical transmission systems. Such
program shall include advanced energy technologies and systems, high
capacity superconducting transmission lines and generators, advanced
grid reliability and efficiency technologies development, technologies
contributing to significant load reductions, advanced metering, load
management and control technologies, and technology transfer and
education.
(b) Technology.--In carrying out this subtitle, the Secretary may
include research, development, and demonstration on and commercial
application of improved transmission technologies including the
integration of the following technologies into improved transmission
systems:
(1) High temperature superconductivity.
(2) Advanced transmission materials.
(3) Self-adjusting equipment, processes, or software for
survivability, security, and failure containment.
(4) Enhancements of energy transfer over existing lines.
(5) Any other infrastructure technologies, as appropriate.
SEC. 2242. PROGRAM PLAN.
Within 4 months after the date of the enactment of this Act, the
Secretary, in consultation with other appropriate Federal agencies,
shall prepare and transmit to 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
transmission infrastructure systems industry to select and prioritize
appropriate program areas. The Secretary shall also seek the advice of
utilities, energy services providers, manufacturers, institutions of
higher learning, other appropriate State and local agencies,
environmental organizations, professional and technical societies, and
any other persons as the Secretary considers appropriate.
SEC. 2243. REPORT.
Two years after the date of the enactment of this Act, and at 2-
year intervals thereafter, the Secretary, in consultation with other
appropriate Federal agencies, shall transmit a report to Congress
describing the progress made to achieve the purposes of this subtitle
and identifying any additional resources needed to continue the
development and commercial application of transmission infrastructure
technologies.
Subtitle D--Department of Energy Authorization of Appropriations
SEC. 2261. AUTHORIZATION OF APPROPRIATIONS.
(a) Operation and Maintenance.--There are authorized to be
appropriated to the Secretary for Renewable Energy operation and
maintenance, including activities under subtitle C, Geothermal
Technology Development, Hydropower, Concentrating Solar Power,
Photovoltaic Energy Systems, Solar Building Technology Research, Wind
Energy Systems, High Temperature Superconducting Research and
Development, Energy Storage Systems, Transmission Reliability,
International Renewable Energy Program, Renewable Energy Production
Incentive Program, Renewable Program Support, National Renewable Energy
Laboratory, and Program Direction, and including amounts authorized
under the amendment made by section 2210 and amounts authorized under
section 2225, $535,000,000 for fiscal year 2002, $639,000,000 for
fiscal year 2003, and $683,000,000 for fiscal year 2004, to remain
available until expended.
(b) Wave Powered Electric Generation.--Within the amounts
authorized to be appropriated to the Secretary under subsection (a),
the Secretary shall carry out a research program, in conjunction with
other appropriate Federal agencies, on wave powered electric
generation.
(c) Assessment of Renewable Energy Resources.--
(1) In general.--Using funds authorized in subsection (a),
of this section, the Secretary shall transmit to the Congress,
within 1 year after the date of the enactment of this Act, an
assessment of all renewable energy resources available within
the United States.
(2) Resource assessment.--Such report shall include a
detailed inventory describing the available amount and
characteristics of solar, wind, biomass, geothermal,
hydroelectric, and other renewable energy sources, and an
estimate of the costs needed to develop each resource. The
report shall also include such other information as the
Secretary believes would be useful in siting renewable energy
generation, such as appropriate terrain, population and load
centers, nearby energy infrastructure, and location of energy
resources.
(3) Availability.--The information and cost estimates in
this report shall be updated annually and made available to the
public, along with the data used to create the report.
(4) Sunset.--This subsection shall expire at the end of
fiscal year 2004.
(d) Limits on Use of Funds.--None of the funds authorized to be
appropriated in subsection (a) may be used for--
(1) Departmental Energy Management Program; or
(2) Renewable Indian Energy Resources.
TITLE III--NUCLEAR ENERGY
Subtitle A--University Nuclear Science and Engineering
SEC. 2301. SHORT TITLE.
This subtitle may be cited as ``Department of Energy University
Nuclear Science and Engineering Act''.
SEC. 2302. FINDINGS.
The Congress finds the following:
(1) United States university nuclear science and
engineering programs are in a state of serious decline, with
nuclear engineering enrollment at a 35-year low. Since 1980,
the number of nuclear engineering university programs has
declined nearly 40 percent, and over two-thirds of the faculty
in these programs are 45 years of age or older. Also, since
1980, the number of university research and training reactors
in the United States has declined by over 50 percent. Most of
these reactors were built in the late 1950s and 1960s with 30-
year to 40-year operating licenses, and many will require
relicensing in the next several years.
(2) A decline in a competent nuclear workforce, and the
lack of adequately trained nuclear scientists and engineers,
will affect the ability of the United States to solve future
nuclear waste storage issues, operate existing and design
future fission reactors in the United States, respond to future
nuclear events worldwide, help stem the proliferation of
nuclear weapons, and design and operate naval nuclear reactors.
(3) The Department of Energy's Office of Nuclear Energy,
Science and Technology, a principal Federal agency for civilian
research in nuclear science and engineering, is well suited to
help maintain tomorrow's human resource and training investment
in the nuclear sciences and engineering.
SEC. 2303. DEPARTMENT OF ENERGY PROGRAM.
(a) Establishment.--The Secretary, through the Office of Nuclear
Energy, Science and Technology, shall support a program to maintain the
Nation's human resource investment and infrastructure in the nuclear
sciences and engineering consistent with the Department's statutory
authorities related to civilian nuclear research, development, and
demonstration and commercial application of energy technology.
(b) Duties of the Office of Nuclear Energy, Science and
Technology.--In carrying out the program under this subtitle, the
Director of the Office of Nuclear Energy, Science and Technology
shall--
(1) develop a robust graduate and undergraduate fellowship
program to attract new and talented students;
(2) assist universities in recruiting and retaining new
faculty in the nuclear sciences and engineering through a
Junior Faculty Research Initiation Grant Program;
(3) maintain a robust investment in the fundamental nuclear
sciences and engineering through the Nuclear Engineering
Education Research Program;
(4) encourage collaborative nuclear research among
industry, national laboratories, and universities through the
Nuclear Energy Research Initiative;
(5) assist universities in maintaining reactor
infrastructure; and
(6) support communication and outreach related to nuclear
science and engineering.
(c) Maintaining University Research and Training Reactors and
Associated Infrastructure.--The Secretary, through the Office of
Nuclear Energy, Science and Technology, shall provide for the following
university research and training reactor infrastructure maintenance and
research activities:
(1) Refueling of university research reactors with low
enriched fuels, upgrade of operational instrumentation, and
sharing of reactors among universities.
(2) In collaboration with the United States nuclear
industry, assistance, where necessary, in relicensing and
upgrading university training reactors as part of a student
training program.
(3) A university reactor research and training award
program that provides for reactor improvements as part of a
focused effort that emphasizes research, training, and
education.
(d) University-DOE Laboratory Interactions.--The Secretary, through
the Office of Nuclear Energy, Science and Technology, shall develop--
(1) a sabbatical fellowship program for university faculty
to spend extended periods of time at Department of Energy
laboratories in the areas of nuclear science and technology;
and
(2) a visiting scientist program in which laboratory staff
can spend time in academic nuclear science and engineering
departments.
The Secretary may under subsection (b)(1) provide for fellowships for
students to spend time at Department of Energy laboratories in the
areas of nuclear science and technology under the mentorship of
laboratory staff.
(e) Operations and Maintenance.--To the extent that the use of a
university research reactor is funded under this subtitle, funds
authorized under this subtitle may be used to supplement operation of
the research reactor during the investigator's proposed effort. The
host institution shall provide at least 50 percent of the cost of the
reactor's operation.
(f) Merit Review Required.--All grants, contracts, cooperative
agreements, or other financial assistance awards under this subtitle
shall be made only after independent merit review.
(g) Report.--Not later than 6 months after the date of the
enactment of this Act, the Secretary shall prepare and transmit to the
appropriate congressional committees a 5-year plan on how the programs
authorized in this subtitle will be implemented. The plan shall include
a review of the projected personnel needs in the fields of nuclear
science and engineering and of the scope of nuclear science and
engineering education programs at the Department and other Federal
agencies.
SEC. 2304. AUTHORIZATION OF APPROPRIATIONS.
(a) Total Authorization.--The following sums are authorized to be
appropriated to the Secretary, to remain available until expended, for
the purposes of carrying out this subtitle:
(1) $30,200,000 for fiscal year 2002.
(2) $41,000,000 for fiscal year 2003.
(3) $47,900,000 for fiscal year 2004.
(4) $55,600,000 for fiscal year 2005.
(5) $64,100,000 for fiscal year 2006.
(b) Graduate and Undergraduate Fellowships.--Of the funds
authorized by subsection (a), the following sums are authorized to be
appropriated to carry out section 2303(b)(1):
(1) $3,000,000 for fiscal year 2002.
(2) $3,100,000 for fiscal year 2003.
(3) $3,200,000 for fiscal year 2004.
(4) $3,200,000 for fiscal year 2005.
(5) $3,200,000 for fiscal year 2006.
(c) Junior Faculty Research Initiation Grant Program.--Of the funds
authorized by subsection (a), the following sums are authorized to be
appropriated to carry out section 2303(b)(2):
(1) $5,000,000 for fiscal year 2002.
(2) $7,000,000 for fiscal year 2003.
(3) $8,000,000 for fiscal year 2004.
(4) $9,000,000 for fiscal year 2005.
(5) $10,000,000 for fiscal year 2006.
(d) Nuclear Engineering Education Research Program.--Of the funds
authorized by subsection (a), the following sums are authorized to be
appropriated to carry out section 2303(b)(3):
(1) $8,000,000 for fiscal year 2002.
(2) $12,000,000 for fiscal year 2003.
(3) $13,000,000 for fiscal year 2004.
(4) $15,000,000 for fiscal year 2005.
(5) $20,000,000 for fiscal year 2006.
(e) Communication and Outreach Related to Nuclear Science and
Engineering.--Of the funds authorized by subsection (a), the following
sums are authorized to be appropriated to carry out section 2303(b)(5):
(1) $200,000 for fiscal year 2002.
(2) $200,000 for fiscal year 2003.
(3) $300,000 for fiscal year 2004.
(4) $300,000 for fiscal year 2005.
(5) $300,000 for fiscal year 2006.
(f) Refueling of University Research Reactors and Instrumentation
Upgrades.--Of the funds authorized by subsection (a), the following
sums are authorized to be appropriated to carry out section 2303(c)(1):
(1) $6,000,000 for fiscal year 2002.
(2) $6,500,000 for fiscal year 2003.
(3) $7,000,000 for fiscal year 2004.
(4) $7,500,000 for fiscal year 2005.
(5) $8,000,000 for fiscal year 2006.
(g) Relicensing Assistance.--Of the funds authorized by subsection
(a), the following sums are authorized to be appropriated to carry out
section 2303(c)(2):
(1) $1,000,000 for fiscal year 2002.
(2) $1,100,000 for fiscal year 2003.
(3) $1,200,000 for fiscal year 2004.
(4) $1,300,000 for fiscal year 2005.
(5) $1,300,000 for fiscal year 2006.
(h) Reactor Research and Training Award Program.--Of the funds
authorized by subsection (a), the following sums are authorized to be
appropriated to carry out section 2303(c)(3):
(1) $6,000,000 for fiscal year 2002.
(2) $10,000,000 for fiscal year 2003.
(3) $14,000,000 for fiscal year 2004.
(4) $18,000,000 for fiscal year 2005.
(5) $20,000,000 for fiscal year 2006.
(i) University-DOE Laboratory Interactions.--Of the funds
authorized by subsection (a), the following sums are authorized to be
appropriated to carry out section 2303(d):
(1) $1,000,000 for fiscal year 2002.
(2) $1,100,000 for fiscal year 2003.
(3) $1,200,000 for fiscal year 2004.
(4) $1,300,000 for fiscal year 2005.
(5) $1,300,000 for fiscal year 2006.
Subtitle B--Advanced Fuel Recycling Technology Research and Development
Program
SEC. 2321. PROGRAM.
(a) In General.--The Secretary, through the Director of the Office
of Nuclear Energy, Science and Technology, shall conduct an advanced
fuel recycling technology research and development program to further
the availability of proliferation-resistant fuel recycling technologies
as an alternative to aqueous reprocessing in support of evaluation of
alternative national strategies for spent nuclear fuel and the
Generation IV advanced reactor concepts, subject to annual review by
the Secretary's Nuclear Energy Research Advisory Committee or other
independent entity, as appropriate.
(b) Reports.--The Secretary shall report on the activities of the
advanced fuel recycling technology research and development program, as
part of the Department's annual budget submission.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section--
(1) $10,000,000 for fiscal year 2002; and
(2) such sums as are necessary for fiscal year 2003 and
fiscal year 2004.
Subtitle C--Department of Energy Authorization of Appropriations
SEC. 2341. NUCLEAR ENERGY RESEARCH INITIATIVE.
(a) Program.--The Secretary, through the Office of Nuclear Energy,
Science and Technology, shall conduct a Nuclear Energy Research
Initiative for grants to be competitively awarded and subject to peer
review for research relating to nuclear energy.
(b) Objectives.--The program shall be directed toward accomplishing
the objectives of--
(1) developing advanced concepts and scientific
breakthroughs in nuclear fission and reactor technology to
address and overcome the principal technical and scientific
obstacles to the expanded use of nuclear energy in the United
States;
(2) advancing the state of nuclear technology to maintain a
competitive position in foreign markets and a future domestic
market;
(3) promoting and maintaining a United States nuclear
science and engineering infrastructure to meet future technical
challenges;
(4) providing an effective means to collaborate on a cost-
shared basis with international agencies and research
organizations to address and influence nuclear technology
development worldwide; and
(5) promoting United States leadership and partnerships in
bilateral and multilateral nuclear energy research.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section--
(1) $60,000,000 for fiscal year 2002; and
(2) such sums as are necessary for fiscal year 2003 and
fiscal year 2004.
SEC. 2342. NUCLEAR ENERGY PLANT OPTIMIZATION PROGRAM.
(a) Program.--The Secretary, through the Office of Nuclear Energy,
Science and Technology, shall conduct a Nuclear Energy Plant
Optimization research and development program jointly with industry and
cost-shared by industry by at least 50 percent and subject to annual
review by the Secretary's Nuclear Energy Research Advisory Committee or
other independent entity, as appropriate.
(b) Objectives.--The program shall be directed toward accomplishing
the objectives of--
(1) managing long-term effects of component aging; and
(2) improving the efficiency and productivity of existing
nuclear power stations.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section--
(1) $15,000,000 for fiscal year 2002; and
(2) such sums as are necessary for fiscal years 2003 and
2004.
SEC. 2343. NUCLEAR ENERGY TECHNOLOGIES.
(a) In General.--The Secretary, through the Office of Nuclear
Energy, Science and Technology, shall conduct a study of Generation IV
nuclear energy systems, including development of a technology roadmap
and performance of research and development necessary to make an
informed technical decision regarding the most promising candidates for
commercial application.
(b) Reactor Characteristics.--To the extent practicable, in
conducting the study under subsection (a), the Secretary shall study
nuclear energy systems that offer the highest probability of achieving
the goals for Generation IV nuclear energy systems, including--
(1) economics competitive with any other generators;
(2) enhanced safety features, including passive safety
features;
(3) substantially reduced production of high-level waste,
as compared with the quantity of waste produced by reactors in
operation on the date of the enactment of this Act;
(4) highly proliferation-resistant fuel and waste;
(5) sustainable energy generation including optimized fuel
utilization; and
(6) substantially improved thermal efficiency, as compared
with the thermal efficiency of reactors in operation on the
date of the enactment of this Act.
(c) Consultation.--In conducting the study under subsection (a),
the Secretary shall consult with appropriate representatives of
industry, institutions of higher education, Federal agencies, and
international, professional, and technical organizations.
(d) Report.--
(1) In general.--Not later than December 31, 2002, the
Secretary shall transmit to the appropriate congressional
committees a report describing the activities of the Secretary
under this section, and plans for research and development
leading to a public/private cooperative demonstration of one or
more Generation IV nuclear energy systems.
(2) Contents.--The report shall contain--
(A) an assessment of all available technologies;
(B) a summary of actions needed for the most
promising candidates to be considered as viable
commercial options within the five to ten years after
the date of the report, with consideration of
regulatory, economic, and technical issues;
(C) a recommendation of not more than three
promising Generation IV nuclear energy system concepts
for further development;
(D) an evaluation of opportunities for public/
private partnerships;
(E) a recommendation for structure of a public/
private partnership to share in development and
construction costs;
(F) a plan leading to the selection and conceptual
design, by September 30, 2004, of at least one
Generation IV nuclear energy system concept recommended
under subparagraph (C) for demonstration through a
public/private partnership;
(G) an evaluation of opportunities for siting
demonstration facilities on Department of Energy land;
and
(H) a recommendation for appropriate involvement of
other Federal agencies.
(e) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section and to carry
out the recommendations in the report transmitted under subsection
(d)--
(1) $20,000,000 for fiscal year 2002; and
(2) such sums as are necessary for fiscal year 2003 and
fiscal year 2004.
SEC. 2344. AUTHORIZATION OF APPROPRIATIONS.
(a) Operation and Maintenance.--There are authorized to be
appropriated to the Secretary to carry out activities authorized under
this title for nuclear energy operation and maintenance, including
amounts authorized under sections 2304(a), 2321(c), 2341(c), 2342(c),
and 2343(e), and including Advanced Radioisotope Power Systems, Test
Reactor Landlord, and Program Direction, $191,200,000 for fiscal year
2002, $199,000,000 for fiscal year 2003, and $207,000,000 for fiscal
year 2004, to remain available until expended.
(b) Construction.--There are authorized to be appropriated to the
Secretary--
(1) $950,000 for fiscal year 2002, $2,200,000 for fiscal
year 2003, $1,246,000 for fiscal year 2004, and $1,699,000 for
fiscal year 2005 for completion of construction of Project 99-
E-200, Test Reactor Area Electric Utility Upgrade, Idaho
National Engineering and Environmental Laboratory; and
(2) $500,000 for fiscal year 2002, $500,000 for fiscal year
2003, $500,000 for fiscal year 2004, and $500,000 for fiscal
year 2005, for completion of construction of Project 95-E-201,
Test Reactor Area Fire and Life Safety Improvements, Idaho
National Engineering and Environmental Laboratory.
(c) Limits on Use of Funds.--None of the funds authorized to be
appropriated in subsection (a) may be used for--
(1) Nuclear Energy Isotope Support and Production;
(2) Argonne National Laboratory-West Operations;
(3) Fast Flux Test Facility; or
(4) Nuclear Facilities Management.
TITLE IV--FOSSIL ENERGY
Subtitle A--Coal
SEC. 2401. COAL AND RELATED TECHNOLOGIES PROGRAMS.
(a) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary $172,000,000 for fiscal year 2002,
$179,000,000 for fiscal year 2003, and $186,000,000 for fiscal year
2004, to remain available until expended, for other coal and related
technologies research and development programs, which shall include--
(1) Innovations for Existing Plants;
(2) Integrated Gasification Combined Cycle;
(3) advanced combustion systems;
(4) Turbines;
(5) Sequestration Research and Development;
(6) innovative technologies for demonstration;
(7) Transportation Fuels and Chemicals;
(8) Solid Fuels and Feedstocks;
(9) Advanced Fuels Research; and
(10) Advanced Research.
(b) Limit on use of Funds.--Notwithstanding subsection (a), no
funds may be used to carry out the activities authorized by this
section after September 30, 2002, unless the Secretary has transmitted
to the Congress the report required by this subsection and 1 month has
elapsed since that transmission. The report shall include a plan
containing--
(1) a detailed description of how proposals will be
solicited and evaluated, including a list of all activities
expected to be undertaken;
(2) a detailed list of technical milestones for each coal
and related technology that will be pursued;
(3) a description of how the programs authorized in this
section will be carried out so as to complement and not
duplicate activities authorized under division E.
(c) Gasification.--The Secretary shall fund at least one
gasification project with the funds authorized under this section.
Subtitle B--Oil and Gas
SEC. 2421. PETROLEUM-OIL TECHNOLOGY.
The Secretary shall conduct a program of research, development,
demonstration, and commercial application on petroleum-oil technology.
The program shall address--
(1) Exploration and Production Supporting Research;
(2) Oil Technology Reservoir Management/Extension; and
(3) Effective Environmental Protection.
SEC. 2422. GAS.
The Secretary shall conduct a program of research, development,
demonstration, and commercial application on natural gas technologies.
The program shall address--
(1) Exploration and Production;
(2) Infrastructure; and
(3) Effective Environmental Protection.
SEC. 2423. NATURAL GAS AND OIL DEPOSITS REPORT.
Two years after the date of the enactment of this Act, and at 2-
year intervals thereafter, the Secretary of the Interior, in
consultation with other appropriate Federal agencies, shall transmit a
report to the Congress assessing the contents of natural gas and oil
deposits at existing drilling sites off the coast of Louisiana and
Texas.
SEC. 2424. OIL SHALE RESEARCH.
There are authorized to be appropriated to the Secretary of Energy
for fiscal year 2002 $10,000,000, to be divided equally between grants
for research on Eastern oil shale and grants for research on Western
oil shale.
Subtitle C--Ultra-Deepwater and Unconventional Drilling
SEC. 2441. SHORT TITLE.
This subtitle may be cited as the ``Natural Gas and Other Petroleum
Research, Development, and Demonstration Act of 2001''.
SEC. 2442. DEFINITIONS.
For purposes of this subtitle--
(1) the term ``deepwater'' means water depths greater than
200 meters but less than 1,500 meters;
(2) the term ``Fund'' means the Ultra-Deepwater and
Unconventional Gas Research Fund established under section
2450;
(3) the term ``institution of higher education'' has the
meaning given that term in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001);
(4) the term ``Research Organization'' means the Research
Organization created pursuant to section 2446(a);
(5) the term ``ultra-deepwater'' means water depths greater
than 1,500 meters; and
(6) the term ``unconventional'' means located in heretofore
inaccessible or uneconomic formations on land.
SEC. 2443. ULTRA-DEEPWATER PROGRAM.
The Secretary shall establish a program of research, development,
and demonstration of ultra-deepwater natural gas and other petroleum
exploration and production technologies, in areas currently available
for Outer Continental Shelf leasing. The program shall be carried out
by the Research Organization as provided in this subtitle.
SEC. 2444. NATIONAL ENERGY TECHNOLOGY LABORATORY.
The National Energy Technology Laboratory and the United States
Geological Survey, when appropriate, shall carry out programs of long-
term research into new natural gas and other petroleum exploration and
production technologies and environmental mitigation technologies for
production from unconventional and ultra-deepwater resources, including
methane hydrates. Such Laboratory shall also conduct a program of
research, development, and demonstration of new technologies for the
reduction of greenhouse gas emissions from unconventional and ultra-
deepwater natural gas or other petroleum exploration and production
activities, including sub-sea floor carbon sequestration technologies.
SEC. 2445. ADVISORY COMMITTEE.
(a) Establishment.--The Secretary shall, within 3 months after the
date of the enactment of this Act, establish an Advisory Committee
consisting of 7 members, each having extensive operational knowledge of
and experience in the natural gas and other petroleum exploration and
production industry who are not Federal Government employees or
contractors. A minimum of 4 members shall have extensive knowledge of
ultra-deepwater natural gas or other petroleum exploration and
production technologies, a minimum of 2 members shall have extensive
knowledge of unconventional natural gas or other petroleum exploration
and production technologies, and at least 1 member shall have extensive
knowledge of greenhouse gas emission reduction technologies, including
carbon sequestration.
(b) Function.--The Advisory Committee shall advise the Secretary on
the selection of an organization to create the Research Organization
and on the implementation of this subtitle.
(c) Compensation.--Members of the Advisory Committee shall serve
without compensation but shall receive travel expenses, including per
diem in lieu of subsistence, in accordance with applicable provisions
under subchapter I of chapter 57 of title 5, United States Code.
(d) Administrative Costs.--The costs of activities carried out by
the Secretary and the Advisory Committee under this subtitle shall be
paid or reimbursed from the Fund.
(e) Duration of Advisory Committee.--Section 14 of the Federal
Advisory Committee Act shall not apply to the Advisory Committee.
SEC. 2446. RESEARCH ORGANIZATION.
(a) Selection of Research Organization.--The Secretary, within 6
months after the date of the enactment of this Act, shall solicit
proposals from eligible entities for the creation of the Research
Organization, and within 3 months after such solicitation, shall select
an entity to create the Research Organization.
(b) Eligible Entities.--Entities eligible to create the Research
Organization shall--
(1) have been in existence as of the date of the enactment
of this Act;
(2) be entities exempt from tax under section 501(c)(3) of
the Internal Revenue Code of 1986; and
(3) be experienced in planning and managing programs in
natural gas or other petroleum exploration and production
research, development, and demonstration.
(c) Proposals.--A proposal from an entity seeking to create the
Research Organization shall include a detailed description of the
proposed membership and structure of the Research Organization.
(d) Functions.--The Research Organization shall--
(1) award grants on a competitive basis to qualified--
(A) research institutions;
(B) institutions of higher education;
(C) companies; and
(D) consortia formed among institutions and
companies described in subparagraphs (A) through (C)
for the purpose of conducting research, development,
and demonstration of unconventional and ultra-deepwater
natural gas or other petroleum exploration and
production technologies; and
(2) review activities under those grants to ensure that
they comply with the requirements of this subtitle and serve
the purposes for which the grant was made.
SEC. 2447. GRANTS.
(a) Types of Grants.--
(1) Unconventional.--The Research Organization shall award
grants for research, development, and demonstration of
technologies to maximize the value of the Government's natural
gas and other petroleum resources in unconventional reservoirs,
and to develop technologies to increase the supply of natural
gas and other petroleum resources by lowering the cost and
improving the efficiency of exploration and production of
unconventional reservoirs, while improving safety and
minimizing environmental impacts.
(2) Ultra-deepwater.--The Research Organization shall award
grants for research, development, and demonstration of natural
gas or other petroleum exploration and production technologies
to--
(A) maximize the value of the Federal Government's
natural gas and other petroleum resources in the ultra-
deepwater areas;
(B) increase the supply of natural gas and other
petroleum resources by lowering the cost and improving
the efficiency of exploration and production of ultra-
deepwater reservoirs; and
(C) improve safety and minimize the environmental
impacts of ultra-deepwater developments.
(3) Ultra-deepwater architecture.--The Research
Organization shall award a grant to one or more consortia
described in section 2446(d)(1)(D) for the purpose of
developing and demonstrating the next generation architecture
for ultra-deepwater production of natural gas and other
petroleum in furtherance of the purposes stated in paragraph
(2)(A) through (C).
(b) Conditions for Grants.--Grants provided under this section
shall contain the following conditions:
(1) If the grant recipient consists of more than one
entity, the recipient shall provide a signed contract agreed to
by all participating members clearly defining all rights to
intellectual property for existing technology and for future
inventions conceived and developed using funds provided under
the grant, in a manner that is consistent with applicable laws.
(2) There shall be a repayment schedule for Federal dollars
provided for demonstration projects under the grant in the
event of a successful commercialization of the demonstrated
technology. Such repayment schedule shall provide that the
payments are made to the Secretary with the express intent that
these payments not impede the adoption of the demonstrated
technology in the marketplace. In the event that such impedance
occurs due to market forces or other factors, the Research
Organization shall renegotiate the grant agreement so that the
acceptance of the technology in the marketplace is enabled.
(3) Applications for grants for demonstration projects
shall clearly state the intended commercial applications of the
technology demonstrated.
(4) The total amount of funds made available under a grant
provided under subsection (a)(3) shall not exceed 50 percent of
the total cost of the activities for which the grant is
provided.
(5) The total amount of funds made available under a grant
provided under subsection (a)(1) or (2) shall not exceed 50
percent of the total cost of the activities covered by the
grant, except that the Research Organization may elect to
provide grants covering a higher percentage, not to exceed 90
percent, of total project costs in the case of grants made
solely to independent producers.
(6) An appropriate amount of funds provided under a grant
shall be used for the broad dissemination of technologies
developed under the grant to interested institutions of higher
education, industry, and appropriate Federal and State
technology entities to ensure the greatest possible benefits
for the public and use of government resources.
(7) Demonstrations of ultra-deepwater technologies for
which funds are provided under a grant may be conducted in
ultra-deepwater or deepwater locations.
(c) Allocation of Funds.--Funds available for grants under this
subtitle shall be allocated as follows:
(1) 15 percent shall be for grants under subsection (a)(1).
(2) 15 percent shall be for grants under subsection (a)(2).
(3) 60 percent shall be for grants under subsection (a)(3).
(4) 10 percent shall be for carrying out section 2444.
SEC. 2448. PLAN AND FUNDING.
(a) Transmittal to Secretary.--The Research Organization shall
transmit to the Secretary an annual plan proposing projects and funding
of activities under each paragraph of section 2447(a).
(b) Review.--The Secretary shall have 1 month to review the annual
plan, and shall approve the plan, if it is consistent with this
subtitle. If the Secretary approves the plan, the Secretary shall
provide funding as proposed in the plan.
(c) Disapproval.--If the Secretary does not approve the plan, the
Secretary shall notify the Research Organization of the reasons for
disapproval and shall withhold funding until a new plan is submitted
which the Secretary approves. Within 1 month after notifying the
Research Organization of a disapproval, the Secretary shall notify the
appropriate congressional committees of the disapproval.
SEC. 2449. AUDIT.
The Secretary shall retain an independent, commercial auditor to
determine the extent to which the funds authorized by this subtitle
have been expended in a manner consistent with the purposes of this
subtitle. The auditor shall transmit a report annually to the
Secretary, who shall transmit the report to the appropriate
congressional committees, along with a plan to remedy any deficiencies
cited in the report.
SEC. 2450. FUND.
(a) Establishment.--There is established in the Treasury of the
United States a fund to be known as the ``Ultra-Deepwater and
Unconventional Gas Research Fund'' which shall be available for
obligation to the extent provided in advance in appropriations Acts for
allocation under section 2447(c).
(b) Funding Sources.--
(1) Loans from treasury.--There are authorized to be
appropriated to the Secretary $900,000,000 for the period
encompassing fiscal years 2002 through 2009. Such amounts shall
be deposited by the Secretary in the Fund, and shall be
considered loans from the Treasury. Income received by the
United States in connection with any ultra-deepwater oil and
gas leases shall be deposited in the Treasury and considered as
repayment for the loans under this paragraph.
(2) Additional appropriations.--There are authorized to be
appropriated to the Secretary such sums as may be necessary for
the fiscal years 2002 through 2009, to be deposited in the
Fund.
(3) Oil and gas lease income.--To the extent provided in
advance in appropriations Acts, not more than 7.5 percent of
the income of the United States from Federal oil and gas leases
may be deposited in the Fund for fiscal years 2002 through
2009.
SEC. 2451. SUNSET.
No funds are authorized to be appropriated for carrying out this
subtitle after fiscal year 2009. The Research Organization shall be
terminated when it has expended all funds made available pursuant to
this subtitle.
Subtitle D--Fuel Cells
SEC. 2461. FUEL CELLS.
(a) In General.--The Secretary shall conduct a program of research,
development, demonstration, and commercial application on fuel cells.
The program shall address--
(1) Advanced Research;
(2) Systems Development;
(3) Vision 21-Hybrids; and
(4) Innovative Concepts.
(b) Manufacturing Production and Processes.--In addition to the
program under subsection (a), the Secretary, in consultation other
Federal agencies, as appropriate, shall establish a program for the
demonstration of fuel cell technologies, including fuel cell proton
exchange membrane technology, for commercial, residential, and
transportation applications. The program shall specifically focus on
promoting the application of and improved manufacturing production and
processes for fuel cell technologies.
(c) Authorization of Appropriations.--Within the amounts authorized
to be appropriated under section 2481(a), there are authorized to be
appropriated to the Secretary for the purpose of carrying out
subsection (b), $28,000,000 for each of fiscal years 2002 through 2004.
Subtitle E--Department of Energy Authorization of Appropriations
SEC. 2481. AUTHORIZATION OF APPROPRIATIONS.
(a) Operation and Maintenance.--There are authorized to be
appropriated to the Secretary for operation and maintenance for
subtitle B and subtitle D, and for Fossil Energy Research and
Development Headquarters Program Direction, Field Program Direction,
Plant and Capital Equipment, Cooperative Research and Development,
Import/Export Authorization, and Advanced Metallurgical Processes
$282,000,000 for fiscal year 2002, $293,000,000 for fiscal year 2003,
and $305,000,000 for fiscal year 2004, to remain available until
expended.
(b) Limits on Use of Funds.--None of the funds authorized to be
appropriated in subsection (a) may be used for--
(1) Gas Hydrates.
(2) Fossil Energy Environmental Restoration; or
(3) research, development, demonstration, and commercial
application on coal and related technologies, including
activities under subtitle A.
TITLE V--SCIENCE
Subtitle A--Fusion Energy Sciences
SEC. 2501. SHORT TITLE.
This subtitle may be cited as the ``Fusion Energy Sciences Act of
2001''.
SEC. 2502. FINDINGS.
The Congress finds that--
(1) economic prosperity is closely linked to an affordable
and ample energy supply;
(2) environmental quality is closely linked to energy
production and use;
(3) population, worldwide economic development, energy
consumption, and stress on the environment are all expected to
increase substantially in the coming decades;
(4) the few energy options with the potential to meet
economic and environmental needs for the long-term future
should be pursued as part of a balanced national energy plan;
(5) fusion energy is an attractive long-term energy source
because of the virtually inexhaustible supply of fuel, and the
promise of minimal adverse environmental impact and inherent
safety;
(6) the National Research Council, the President's
Committee of Advisers on Science and Technology, and the
Secretary of Energy Advisory Board have each recently reviewed
the Fusion Energy Sciences Program and each strongly supports
the fundamental science and creative innovation of the program,
and has confirmed that progress toward the goal of producing
practical fusion energy has been excellent, although much
scientific and engineering work remains to be done;
(7) each of these reviews stressed the need for a magnetic
fusion burning plasma experiment to address key scientific
issues and as a necessary step in the development of fusion
energy;
(8) the National Research Council has also called for a
broadening of the Fusion Energy Sciences Program research base
as a means to more fully integrate the fusion science community
into the broader scientific community; and
(9) the Fusion Energy Sciences Program budget is inadequate
to support the necessary science and innovation for the present
generation of experiments, and cannot accommodate the cost of a
burning plasma experiment constructed by the United States, or
even the cost of key participation by the United States in an
international effort.
SEC. 2503. PLAN FOR FUSION EXPERIMENT.
(a) Plan for United States Fusion Experiment.--The Secretary, on
the basis of full consultation with the Fusion Energy Sciences Advisory
Committee and the Secretary of Energy Advisory Board, as appropriate,
shall develop a plan for United States construction of a magnetic
fusion burning plasma experiment for the purpose of accelerating
scientific understanding of fusion plasmas. The Secretary shall request
a review of the plan by the National Academy of Sciences, and shall
transmit the plan and the review to the Congress by July 1, 2004.
(b) Requirements of Plan.--The plan described in subsection (a)
shall--
(1) address key burning plasma physics issues; and
(2) include specific information on the scientific
capabilities of the proposed experiment, the relevance of these
capabilities to the goal of practical fusion energy, and the
overall design of the experiment including its estimated cost
and potential construction sites.
(c) United States Participation in an International Experiment.--In
addition to the plan described in subsection (a), the Secretary, on the
basis of full consultation with the Fusion Energy Sciences Advisory
Committee and the Secretary of Energy Advisory Board, as appropriate,
may also develop a plan for United States participation in an
international burning plasma experiment for the same purpose, whose
construction is found by the Secretary to be highly likely and where
United States participation is cost effective relative to the cost and
scientific benefits of a domestic experiment described in subsection
(a). If the Secretary elects to develop a plan under this subsection,
he shall include the information described in subsection (b), and an
estimate of the cost of United States participation in such an
international experiment. The Secretary shall request a review by the
National Academies of Sciences and Engineering of a plan developed
under this subsection, and shall transmit the plan and the review to
the Congress not later than July 1, 2004.
(d) Authorization of Research and Development.--The Secretary,
through the Fusion Energy Sciences Program, may conduct any research
and development necessary to fully develop the plans described in this
section.
SEC. 2504. PLAN FOR FUSION ENERGY SCIENCES PROGRAM.
Not later than 6 months after the date of the enactment of this
Act, the Secretary, in full consultation with FESAC, shall develop and
transmit to the Congress a plan for the purpose of ensuring a strong
scientific base for the Fusion Energy Sciences Program and to enable
the experiments described in section 2503. Such plan shall include as
its objectives--
(1) to ensure that existing fusion research facilities and
equipment are more fully utilized with appropriate measurements
and control tools;
(2) to ensure a strengthened fusion science theory and
computational base;
(3) to ensure that the selection of and funding for new
magnetic and inertial fusion research facilities is based on
scientific innovation and cost effectiveness;
(4) to improve the communication of scientific results and
methods between the fusion science community and the wider
scientific community;
(5) to ensure that adequate support is provided to optimize
the design of the magnetic fusion burning plasma experiments
referred to in section 2503;
(6) to ensure that inertial confinement fusion facilities
are utilized to the extent practicable for the purpose of
inertial fusion energy research and development;
(7) to develop a roadmap for a fusion-based energy source
that shows the important scientific questions, the evolution of
confinement configurations, the relation between these two
features, and their relation to the fusion energy goal;
(8) to establish several new centers of excellence,
selected through a competitive peer-review process and devoted
to exploring the frontiers of fusion science;
(9) to ensure that the National Science Foundation, and
other agencies, as appropriate, play a role in extending the
reach of fusion science and in sponsoring general plasma
science; and
(10) to ensure that there be continuing broad assessments
of the outlook for fusion energy and periodic external reviews
of fusion energy sciences.
SEC. 2505. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary for the
development and review, but not for implementation, of the plans
described in this subtitle and for activities of the Fusion Energy
Sciences Program $320,000,000 for fiscal year 2002 and $335,000,000 for
fiscal year 2003, of which up to $15,000,000 for each of fiscal year
2002 and fiscal year 2003 may be used to establish several new centers
of excellence, selected through a competitive peer-review process and
devoted to exploring the frontiers of fusion science.
Subtitle B--Spallation Neutron Source
SEC. 2521. DEFINITION.
For the purposes of this subtitle, the term ``Spallation Neutron
Source'' means Department Project 99-E-334, Oak Ridge National
Laboratory, Oak Ridge, Tennessee.
SEC. 2522. AUTHORIZATION OF APPROPRIATIONS.
(a) Authorization of Construction Funding.--There are authorized to
be appropriated to the Secretary for construction of the Spallation
Neutron Source--
(1) $276,300,000 for fiscal year 2002;
(2) $210,571,000 for fiscal year 2003;
(3) $124,600,000 for fiscal year 2004;
(4) $79,800,000 for fiscal year 2005; and
(5) $41,100,000 for fiscal year 2006 for completion of
construction.
(b) Authorization of Other Project Funding.--There are authorized
to be appropriated to the Secretary for other project costs (including
research and development necessary to complete the project,
preoperations costs, and capital equipment not related to construction)
of the Spallation Neutron Source $15,353,000 for fiscal year 2002 and
$103,279,000 for the period encompassing fiscal years 2003 through
2006, to remain available until expended through September 30, 2006.
SEC. 2523. REPORT.
The Secretary shall report on the Spallation Neutron Source as part
of the Department's annual budget submission, including a description
of the achievement of milestones, a comparison of actual costs to
estimated costs, and any changes in estimated project costs or
schedule.
SEC. 2524. LIMITATIONS.
The total amount obligated by the Department, including prior year
appropriations, for the Spallation Neutron Source may not exceed--
(1) $1,192,700,000 for costs of construction;
(2) $219,000,000 for other project costs; and
(3) $1,411,700,000 for total project cost.
Subtitle C--Facilities, Infrastructure, and User Facilities
SEC. 2541. DEFINITION.
For purposes of this subtitle--
(1) the term ``nonmilitary energy laboratory'' means--
(A) Ames Laboratory;
(B) Argonne National Laboratory;
(C) Brookhaven National Laboratory;
(D) Fermi National Accelerator Laboratory;
(E) Lawrence Berkeley National Laboratory;
(F) Oak Ridge National Laboratory;
(G) Pacific Northwest National Laboratory;
(H) Princeton Plasma Physics Laboratory;
(I) Stanford Linear Accelerator Center;
(J) Thomas Jefferson National Accelerator Facility;
or
(K) any other facility of the Department that the
Secretary, in consultation with the Director, Office of
Science and the appropriate congressional committees,
determines to be consistent with the mission of the
Office of Science; and
(2) the term ``user facility'' means--
(A) an Office of Science facility at a nonmilitary
energy laboratory that provides special scientific and
research capabilities, including technical expertise
and support as appropriate, to serve the research needs
of the Nation's universities, industry, private
laboratories, Federal laboratories, and others,
including research institutions or individuals from
other nations where reciprocal accommodations are
provided to United States research institutions and
individuals or where the Secretary considers such
accommodation to be in the national interest; and
(B) any other Office of Science funded facility
designated by the Secretary as a user facility.
SEC. 2542. FACILITY AND INFRASTRUCTURE SUPPORT FOR NONMILITARY ENERGY
LABORATORIES.
(a) Facility Policy.--The Secretary shall develop and implement a
least-cost nonmilitary energy laboratory facility and infrastructure
strategy for--
(1) maintaining existing facilities and infrastructure, as
needed;
(2) closing unneeded facilities;
(3) making facility modifications; and
(4) building new facilities.
(b) Plan.--The Secretary shall prepare a comprehensive 10-year plan
for conducting future facility maintenance, making repairs,
modifications, and new additions, and constructing new facilities at
each nonmilitary energy laboratory. Such plan shall provide for
facilities work in accordance with the following priorities:
(1) Providing for the safety and health of employees,
visitors, and the general public with regard to correcting
existing structural, mechanical, electrical, and environmental
deficiencies.
(2) Providing for the repair and rehabilitation of existing
facilities to keep them in use and prevent deterioration, if
feasible.
(3) Providing engineering design and construction services
for those facilities that require modification or additions in
order to meet the needs of new or expanded programs.
(c) Report.--
(1) Transmittal.--Within 1 year after the date of the
enactment of this Act, the Secretary shall prepare and transmit
to the appropriate congressional committees a report containing
the plan prepared under subsection (b).
(2) Contents.--For each nonmilitary energy laboratory, such
report shall contain--
(A) the current priority list of proposed
facilities and infrastructure projects, including cost
and schedule requirements;
(B) a current ten-year plan that demonstrates the
reconfiguration of its facilities and infrastructure to
meet its missions and to address its long-term
operational costs and return on investment;
(C) the total current budget for all facilities and
infrastructure funding; and
(D) the current status of each facilities and
infrastructure project compared to the original
baseline cost, schedule, and scope.
(3) Additional elements.--The report shall also--
(A) include a plan for new facilities and facility
modifications at each nonmilitary energy laboratory
that will be required to meet the Department's changing
missions of the twenty-first century, including
schedules and estimates for implementation, and
including a section outlining long-term funding
requirements consistent with anticipated budgets and
annual authorization of appropriations;
(B) address the coordination of modernization and
consolidation of facilities among the nonmilitary
energy laboratories in order to meet changing mission
requirements; and
(C) provide for annual reports to the appropriate
congressional committees on accomplishments,
conformance to schedules, commitments, and
expenditures.
SEC. 2543. USER FACILITIES.
(a) Notice Requirement.--When the Department makes a user facility
available to universities and other potential users, or seeks input
from universities and other potential users regarding significant
characteristics or equipment in a user facility or a proposed user
facility, the Department shall ensure broad public notice of such
availability or such need for input to universities and other potential
users.
(b) Competition Requirement.--When the Department considers the
participation of a university or other potential user in the
establishment or operation of a user facility, the Department shall
employ full and open competition in selecting such a participant.
(c) Prohibition.--The Department may not redesignate a user
facility, as defined by section 2541(b) as something other than a user
facility for avoid the requirements of subsections (a) and (b).
Subtitle D--Advisory Panel on Office of Science
SEC. 2561. ESTABLISHMENT.
The Director of the Office of Science and Technology Policy, in
consultation with the Secretary, shall establish an Advisory Panel on
the Office of Science comprised of knowledgeable individuals to--
(1) address concerns about the current status and the
future of scientific research supported by the Office;
(2) examine alternatives to the current organizational
structure of the Office within the Department, taking into
consideration existing structures for the support of scientific
research in other Federal agencies and the private sector; and
(3) suggest actions to strengthen the scientific research
supported by the Office that might be taken jointly by the
Department and Congress.
SEC. 2562. REPORT.
Within 6 months after the date of the enactment of this Act, the
Advisory Panel shall transmit its findings and recommendations in a
report to the Director of the Office of Science and Technology Policy
and the Secretary. The Director and the Secretary shall jointly--
(1) consider each of the Panel's findings and
recommendations, and comment on each as they consider
appropriate; and
(2) transmit the Panel's report and the comments of the
Director and the Secretary on the report to the appropriate
congressional committees within 9 months after the date of the
enactment of this Act.
Subtitle E--Department of Energy Authorization of Appropriations
SEC. 2581. AUTHORIZATION OF APPROPRIATIONS.
(a) Operation and maintenance.--Including the amounts authorized to
be appropriated for fiscal year 2002 under section 2505 for Fusion
Energy Sciences and under section 2522(b) for the Spallation Neutron
Source, there are authorized to be appropriated to the Secretary for
the Office of Science (also including subtitle C, High Energy Physics,
Nuclear Physics, Biological and Environmental Research, Basic Energy
Sciences (except for the Spallation Neutron Source), Advanced
Scientific Computing Research, Energy Research Analysis, Multiprogram
Energy Laboratories-Facilities Support, Facilities and Infrastructure,
Safeguards and Security, and Program Direction) operation and
maintenance $3,299,558,000 for fiscal year 2002, to remain available
until expended.
(b) Research Regarding Precious Metal Catalysis.--Within the
amounts authorized to be appropriated to the Secretary under subsection
(a), $5,000,000 for fiscal year 2002 may be used to carry out research
in the use of precious metals (excluding platinum, palladium, and
rhodium) in catalysis, either directly though national laboratories, or
through the award of grants, cooperative agreements, or contracts with
public or nonprofit entities.
(c) Construction.--In addition to the amounts authorized to be
appropriated under section 2522(a) for construction of the Spallation
Neutron Source, there are authorized to be appropriated to the
Secretary for Science--
(1) $19,400,000 for fiscal year 2002, $14,800,000 for
fiscal year 2003, and $8,900,000 for fiscal year 2004 for
completion of constuction of Project 98-G-304, Neutrinos at the
Main Injector, Fermi National Accelerator Laboratory;
(2) $11,405,000 for fiscal year 2002 for completion of
construction of Project 01-E-300, Laboratory for Comparative
and Functional Genomics, Oak Ridge National Laboratory;
(3) $4,000,000 for fiscal year 2002, $8,000,000 for fiscal
year 2003, and $2,000,000 for fiscal year 2004 for completion
of construction of Project 02-SC-002, Project Engineering
Design (PED), Various Locations;
(4) $3,183,000 for fiscal year 2002 for completion of
construction of Project 02-SC-002, Multiprogram Energy
Laboratories Infrastructure Project Engineering Design (PED),
Various Locations; and
(5) $18,633,000 for fiscal year 2002 and $13,029,000 for
fiscal year 2003 for completion of construction of Project MEL-
001, Multiprogram Energy Laboratories, Infrastructure, Various
Locations.
(d) Limits on Use of Funds.--None of the funds authorized to be
appropriated in subsection (c) may be used for construction at any
national security laboratory as defined in section 3281(1) of the
National Defense Authorization Act for Fiscal Year 2000 (50 U.S.C.
2471(1)) or at any nuclear weapons production facility as defined in
section 3281(2) of the National Defense Authorization Act for Fiscal
Year 2000 (50 U.S.C. 2471(2)).
TITLE VI--MISCELLANEOUS
Subtitle A--General Provisions for the Department of Energy
SEC. 2601. RESEARCH, DEVELOPMENT, DEMONSTRATION, AND COMMERCIAL
APPLICATION OF ENERGY TECHNOLOGY PROGRAMS, PROJECTS, AND
ACTIVITIES.
(a) Authorized Activities.--Except as otherwise provided in this
division, research, development, demonstration, and commercial
application programs, projects, and activities for which appropriations
are authorized under this division may be carried out under the
procedures of the Federal Nonnuclear Energy Research and Development
Act of 1974 (42 U.S.C. 5901 et seq.), the Atomic Energy Act of 1954 (42
U.S.C. 2011 et seq.), or any other Act under which the Secretary is
authorized to carry out such programs, projects, and activities, but
only to the extent the Secretary is authorized to carry out such
activities under each such Act.
(b) Authorized Agreements.--Except as otherwise provided in this
division, in carrying out research, development, demonstration, and
commercial application programs, projects, and activities for which
appropriations are authorized under this division, the Secretary may
use, to the extent authorized under applicable provisions of law,
contracts, cooperative agreements, cooperative research and development
agreements under the Stevenson-Wydler Technology Innovation Act of 1980
(15 U.S.C. 3701 et seq.), grants, joint ventures, and any other form of
agreement available to the Secretary.
(c) Definition.--For purposes of this section, the term ``joint
venture'' has the meaning given that term under section 2 of the
National Cooperative Research and Production Act of 1993 (15 U.S.C.
4301), except that such term may apply under this section to research,
development, demonstration, and commercial application of energy
technology joint ventures.
(d) Protection of Information.--Section 12(c)(7) of the Stevenson-
Wydler Technology Innovation Act of 1980 (15 U.S.C. 3710a(c)(7)),
relating to the protection of information, shall apply to research,
development, demonstration, and commercial application of energy
technology programs, projects, and activities for which appropriations
are authorized under this division.
(e) Inventions.--An invention conceived and developed by any person
using funds provided through a grant under this division shall be
considered a subject invention for the purposes of chapter 18 of title
35, United States Code (commonly referred to as the Bayh-Dole Act).
(f) Outreach.--The Secretary shall ensure that each program
authorized by this division includes an outreach component to provide
information, as appropriate, to manufacturers, consumers, engineers,
architects, builders, energy service companies, universities, facility
planners and managers, State and local governments, and other entities.
(g) Guidelines and Procedures.--The Secretary shall provide
guidelines and procedures for the transition, where appropriate, of
energy technologies from research through development and demonstration
to commercial application of energy technology. Nothing in this section
shall preclude the Secretary from--
(1) entering into a contract, cooperative agreement,
cooperative research and development agreement under the
Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C.
3701 et seq.), grant, joint venture, or any other form of
agreement available to the Secretary under this section that
relates to research, development, demonstration, and commercial
application of energy technology; or
(2) extending a contract, cooperative agreement,
cooperative research and development agreement under the
Stevenson-Wydler Technology Innovation Act of 1980, grant,
joint venture, or any other form of agreement available to the
Secretary that relates to research, development, and
demonstration to cover commercial application of energy
technology.
(h) Application of Section.--This section shall not apply to any
contract, cooperative agreement, cooperative research and development
agreement under the Stevenson-Wydler Technology Innovation Act of 1980
(15 U.S.C. 3701 et seq.), grant, joint venture, or any other form of
agreement available to the Secretary that is in effect as of the date
of the enactment of this Act.
SEC. 2602. LIMITS ON USE OF FUNDS.
(a) Management and Operating Contracts.--
(1) Competitive procedure requirement.--None of the funds
authorized to be appropriated to the Secretary by this division
may be used to award a management and operating contract for a
federally owned or operated nonmilitary energy laboratory of
the Department unless such contract is awarded using
competitive procedures or the Secretary grants, on a case-by-
case basis, a waiver to allow for such a deviation. The
Secretary may not delegate the authority to grant such a
waiver.
(2) Congressional notice.--At least 2 months before a
contract award, amendment, or modification for which the
Secretary intends to grant such a waiver, the Secretary shall
submit to the appropriate congressional committees a report
notifying the committees of the waiver and setting forth the
reasons for the waiver.
(b) Production or Provision of Articles or Services.--None of the
funds authorized to be appropriated to the Secretary by this division
may be used to produce or provide articles or services for the purpose
of selling the articles or services to a person outside the Federal
Government, unless the Secretary determines that comparable articles or
services are not available from a commercial source in the United
States.
(c) Requests for Proposals.--None of the funds authorized to be
appropriated to the Secretary by this division may be used by the
Department to prepare or initiate Requests for Proposals for a program
if the program has not been authorized by Congress.
SEC. 2603. COST SHARING.
(a) Research and Development.--Except as otherwise provided in this
division, for research and development programs carried out under this
division, the Secretary shall require a commitment from non-Federal
sources of at least 20 percent of the cost of the project. The
Secretary may reduce or eliminate the non-Federal requirement under
this subsection if the Secretary determines that the research and
development is of a basic or fundamental nature.
(b) Demonstration and Commercial Application.--Except as otherwise
provided in this division, the Secretary shall require at least 50
percent of the costs directly and specifically related to any
demonstration or commercial application project under this division to
be provided from non-Federal sources. The Secretary may reduce the non-
Federal requirement under this subsection if the Secretary determines
that the reduction is necessary and appropriate considering the
technological risks involved in the project and is necessary to meet
the objectives of this division.
(c) Calculation of Amount.--In calculating the amount of the non-
Federal commitment under subsection (a) or (b), the Secretary may
include personnel, services, equipment, and other resources.
SEC. 2604. LIMITATION ON DEMONSTRATION AND COMMERCIAL APPLICATION OF
ENERGY TECHNOLOGY.
Except as otherwise provided in this division, the Secretary shall
provide funding for scientific or energy demonstration and commercial
application of energy technology programs, projects, or activities only
for technologies or processes that can be reasonably expected to yield
new, measurable benefits to the cost, efficiency, or performance of the
technology or process.
SEC. 2605. REPROGRAMMING.
(a) Authority.--The Secretary may use amounts appropriated under
this division for a program, project, or activity other than the
program, project, or activity for which such amounts were appropriated
only if--
(1) the Secretary has transmitted to the appropriate
congressional committees a report described in subsection (b)
and a period of 30 days has elapsed after such committees
receive the report;
(2) amounts used for the program, project, or activity do
not exceed--
(A) 105 percent of the amount authorized for the
program, project, or activity; or
(B) $250,000 more than the amount authorized for
the program, project, or activity,
whichever is less; and
(3) the program, project, or activity has been presented
to, or requested of, the Congress by the Secretary.
(b) Report.--(1) The report referred to in subsection (a) is a
report containing a full and complete statement of the action proposed
to be taken and the facts and circumstances relied upon in support of
the proposed action.
(2) In the computation of the 30-day period under subsection (a),
there shall be excluded any day on which either House of Congress is
not in session because of an adjournment of more than 3 days to a day
certain.
(c) Limitations.--(1) In no event may the total amount of funds
obligated by the Secretary pursuant to this division exceed the total
amount authorized to be appropriated to the Secretary by this division.
(2) Funds appropriated to the Secretary pursuant to this division
may not be used for an item for which Congress has declined to
authorize funds.
Subtitle B--Other Miscellaneous Provisions
SEC. 2611. NOTICE OF REORGANIZATION.
The Secretary shall provide notice to the appropriate congressional
committees not later than 15 days before any reorganization of any
environmental research or development, scientific or energy research,
development, or demonstration, or commercial application of energy
technology program, project, or activity of the Department.
SEC. 2612. LIMITS ON GENERAL PLANT PROJECTS.
If, at any time during the construction of a civilian environmental
research and development, scientific or energy research, development,
or demonstration, or commercial application of energy technology
project of the Department for which no specific funding level is
provided by law, the estimated cost (including any revision thereof) of
the project exceeds $5,000,000, the Secretary may not continue such
construction unless the Secretary has furnished a complete report to
the appropriate congressional committees explaining the project and the
reasons for the estimate or revision.
SEC. 2613. LIMITS ON CONSTRUCTION PROJECTS.
(a) Limitation.--Except as provided in subsection (b), construction
on a civilian environmental research and development, scientific or
energy research, development, or demonstration, or commercial
application of energy technology project of the Department for which
funding has been specifically provided by law may not be started, and
additional obligations may not be incurred in connection with the
project above the authorized funding amount, whenever the current
estimated cost of the construction project exceeds by more than 10
percent the higher of--
(1) the amount authorized for the project, if the entire
project has been funded by the Congress; or
(2) the amount of the total estimated cost for the project
as shown in the most recent budget justification data submitted
to Congress.
(b) Notice.--An action described in subsection (a) may be taken
if--
(1) the Secretary has submitted to the appropriate
congressional committees a report on the proposed actions and
the circumstances making such actions necessary; and
(2) a period of 30 days has elapsed after the date on which
the report is received by the committees.
(c) Exclusion.--In the computation of the 30-day period described
in subsection (b)(2), there shall be excluded any day on which either
House of Congress is not in session because of an adjournment of more
than 3 days to a day certain.
(d) Exception.--Subsections (a) and (b) shall not apply to any
construction project that has a current estimated cost of less than
$5,000,000.
SEC. 2614. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.
(a) Requirement for Conceptual Design.--(1) Subject to paragraph
(2) and except as provided in paragraph (3), before submitting to
Congress a request for funds for a construction project that is in
support of a civilian environmental research and development,
scientific or energy research, development, or demonstration, or
commercial application of energy technology program, project, or
activity of the Department, the Secretary shall complete a conceptual
design for that project.
(2) If the estimated cost of completing a conceptual design for a
construction project exceeds $750,000, the Secretary shall submit to
Congress a request for funds for the conceptual design before
submitting a request for funds for the construction project.
(3) The requirement in paragraph (1) does not apply to a request
for funds for a construction project, the total estimated cost of which
is less than $5,000,000.
(b) Authority for Construction Design.--(1) The Secretary may carry
out construction design (including architectural and engineering
services) in connection with any proposed construction project that is
in support of a civilian environmental research and development,
scientific or energy research, development, and demonstration, or
commercial application of energy technology program, project, or
activity of the Department if the total estimated cost for such design
does not exceed $250,000.
(2) If the total estimated cost for construction design in
connection with any construction project described in paragraph (1)
exceeds $250,000, funds for such design must be specifically authorized
by law.
SEC. 2615. NATIONAL ENERGY POLICY DEVELOPMENT GROUP MANDATED REPORTS.
(a) The Secretary's Review of Energy Efficiency Renewable Energy,
and Alternative Energy Research and Development.--Upon completion of
the Secretary's review of current funding and historic performance of
the Department's energy efficiency, renewable energy, and alternative
energy research and development programs in response to the
recommendations of the May 16, 2001, Report of the National Energy
Policy Development Group, the Secretary shall transmit a report
containing the results of such review to the appropriate congressional
committees.
(b) Review and Recommendations on Using the Nation's Energy
Resources More Efficiently.--Upon completion of the Office of Science
and Technology Policy and the President's Council of Advisors on
Science and Technology reviewing and making recommendations on using
the Nation's energy resources more efficiently, in response to the
recommendation of the May 16, 2001, Report of the National Energy
Policy Development Group, the Director of the Office of Science and
Technology Policy shall transmit a report containing the results of
such review and recommendations to the appropriate congressional
committees.
SEC. 2616. PERIODIC REVIEWS AND ASSESSMENTS.
The Secretary shall enter into appropriate arrangements with the
National Academies of Sciences and Engineering to ensure that there be
periodic reviews and assessments of the programs authorized by this
division, as well as the measurable cost and performance-based goals
for such programs as established under section 2004, and the progress
on meeting such goals. Such reviews and assessments shall be conducted
at least every 5 years, or more often as the Secretary considers
necessary, and the Secretary shall transmit to the appropriate
congressional committees reports containing the results of such reviews
and assessments.
DIVISION C
SEC. 3001. SHORT TITLE.
(a) Short Title.--This division may be cited as the ``Energy Tax
Policy Act of 2001''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this division an amendment or repeal is expressed
in terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a section or
other provision of the Internal Revenue Code of 1986.
TITLE I--CONSERVATION
SEC. 3101. CREDIT FOR RESIDENTIAL SOLAR ENERGY PROPERTY.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
(relating to nonrefundable personal credits) is amended by inserting
after section 25B the following new section:
``SEC. 25C. RESIDENTIAL SOLAR ENERGY PROPERTY.
``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to the sum of--
``(1) 15 percent of the qualified photovoltaic property
expenditures made by the taxpayer during such year, and
``(2) 15 percent of the qualified solar water heating
property expenditures made by the taxpayer during the taxable
year.
``(b) Limitations.--
``(1) Maximum credit.--The credit allowed under subsection
(a) shall not exceed--
``(A) $2,000 for each system of property described
in subsection (c)(1), and
``(B) $2,000 for each system of property described
in subsection (c)(2).
``(2) Safety certifications.--No credit shall be allowed
under this section for an item of property unless--
``(A) in the case of solar water heating equipment,
such equipment is certified for performance and safety
by the non-profit Solar Rating Certification
Corporation or a comparable entity endorsed by the
government of the State in which such property is
installed, and
``(B) in the case of a photovoltaic system, such
system meets appropriate fire and electric code
requirements.
``(3) Limitation based on amount of tax.--The credit
allowed under subsection (a) for the taxable year shall not
exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under this
subpart (other than this section and sections 23, 25D,
and 25E) and section 27 for the taxable year.
``(c) Definitions.--For purposes of this section--
``(1) Qualified solar water heating property expenditure.--
The term `qualified solar water heating property expenditure'
means an expenditure for property to heat water for use in a
dwelling unit located in the United States and used as a
residence if at least half of the energy used by such property
for such purpose is derived from the sun.
``(2) Qualified photovoltaic property expenditure.--The
term `qualified photovoltaic property expenditure' means an
expenditure for property that uses solar energy to generate
electricity for use in a dwelling unit.
``(3) Solar panels.--No expenditure relating to a solar
panel or other property installed as a roof (or portion
thereof) shall fail to be treated as property described in
paragraph (1) or (2) solely because it constitutes a structural
component of the structure on which it is installed.
``(4) Labor costs.--Expenditures for labor costs properly
allocable to the onsite preparation, assembly, or original
installation of the property described in paragraph (1) or (2)
and for piping or wiring to interconnect such property to the
dwelling unit shall be taken into account for purposes of this
section.
``(5) Swimming pools, etc., used as storage medium.--
Expenditures which are properly allocable to a swimming pool,
hot tub, or any other energy storage medium which has a
function other than the function of such storage shall not be
taken into account for purposes of this section.
``(d) Special Rules.--
``(1) Dollar amounts in case of joint occupancy.--In the
case of any dwelling unit which is jointly occupied and used
during any calendar year as a residence by 2 or more
individuals the following shall apply:
``(A) The amount of the credit allowable under
subsection (a) by reason of expenditures (as the case
may be) made during such calendar year by any of such
individuals with respect to such dwelling unit shall be
determined by treating all of such individuals as 1
taxpayer whose taxable year is such calendar year.
``(B) There shall be allowable with respect to such
expenditures to each of such individuals, a credit
under subsection (a) for the taxable year in which such
calendar year ends in an amount which bears the same
ratio to the amount determined under subparagraph (A)
as the amount of such expenditures made by such
individual during such calendar year bears to the
aggregate of such expenditures made by all of such
individuals during such calendar year.
``(2) Tenant-stockholder in cooperative housing
corporation.--In the case of an individual who is a tenant-
stockholder (as defined in section 216) in a cooperative
housing corporation (as defined in such section), such
individual shall be treated as having made his tenant-
stockholder's proportionate share (as defined in section
216(b)(3)) of any expenditures of such corporation.
``(3) Condominiums.--
``(A) In general.--In the case of an individual who
is a member of a condominium management association
with respect to a condominium which he owns, such
individual shall be treated as having made his
proportionate share of any expenditures of such
association.
``(B) Condominium management association.--For
purposes of this paragraph, the term `condominium
management association' means an organization which
meets the requirements of paragraph (1) of section
528(c) (other than subparagraph (E) thereof) with
respect to a condominium project substantially all of
the units of which are used as residences.
``(4) Allocation in certain cases.--If less than 80 percent
of the use of an item is for nonbusiness purposes, only that
portion of the expenditures for such item which is properly
allocable to use for nonbusiness purposes shall be taken into
account.
``(5) When expenditure made; amount of expenditure.--
``(A) In general.--Except as provided in
subparagraph (B), an expenditure with respect to an
item shall be treated as made when the original
installation of the item is completed.
``(B) Expenditures part of building construction.--
In the case of an expenditure in connection with the
construction or reconstruction of a structure, such
expenditure shall be treated as made when the original
use of the constructed or reconstructed structure by
the taxpayer begins.
``(C) Amount.--The amount of any expenditure shall
be the cost thereof.
``(6) Property financed by subsidized energy financing.--
For purposes of determining the amount of expenditures made by
any individual with respect to any dwelling unit, there shall
not be taken in to account expenditures which are made from
subsidized energy financing (as defined in section
48(a)(4)(A)).
``(e) Basis Adjustments.--For purposes of this subtitle, if a
credit is allowed under this section for any expenditure with respect
to any property, the increase in the basis of such property which would
(but for this subsection) result from such expenditure shall be reduced
by the amount of the credit so allowed.
``(f) Termination.--The credit allowed under this section shall not
apply to taxable years beginning after December 31, 2006 (December 31,
2008, with respect to qualified photovoltaic property expenditures).''.
(b) Conforming Amendments.--
(1) Subsection (a) of section 1016 is amended by striking
``and'' at the end of paragraph (27), by striking the period at
the end of paragraph (28) and inserting ``, and'', and by
adding at the end the following new paragraph:
``(29) to the extent provided in section 25C(e), in the
case of amounts with respect to which a credit has been allowed
under section 25C.''.
(2) The table of sections for subpart A of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 25B the following new item:
``Sec. 25C. Residential solar energy
property.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after December 31, 2001.
SEC. 3102. EXTENSION AND EXPANSION OF CREDIT FOR ELECTRICITY PRODUCED
FROM RENEWABLE RESOURCES.
(a) Extension of Credit for Wind and Closed-Loop Biomass
Facilities.--Subparagraphs (A) and (B) of section 45(c)(3) are each
amended by striking ``2002'' and inserting ``2007''.
(b) Expansion of Credit for Open-loop biomass and landfill gas
facilities.--Paragraph (3) of section 45(c) is amended by adding at the
end the following new subparagraphs:
``(D) Open-loop biomass facilities.--In the case of
a facility using open-loop biomass to produce
electricity, the term `qualified facility' means any
facility owned by the taxpayer which is originally
placed in service before January 1, 2007.
``(E) Landfill gas facilities.--In the case of a
facility producing electricity from gas derived from
the biodegradation of municipal solid waste, the term
`qualified facility' means any facility owned by the
taxpayer which is originally placed in service before
January 1, 2007.''.
(c) Definition and Special Rules.--Subsection (c) of section 45 is
amended by adding at the end the following new paragraphs:
``(5) Open-loop biomass.--The term `open-loop biomass'
means any solid, nonhazardous, cellulosic waste material which
is segregated from other waste materials and which is derived
from--
``(A) any of the following forest-related
resources: mill residues, precommercial thinnings,
slash, and brush, but not including old-growth timber,
``(B) solid wood waste materials, including waste
pallets, crates, dunnage, manufacturing and
construction wood wastes (other than pressure-treated,
chemically-treated, or painted wood wastes), and
landscape or right-of-way tree trimmings, but not
including municipal solid waste (garbage), gas derived
from the biodegradation of solid waste, or paper that
is commonly recycled, or
``(C) agriculture sources, including orchard tree
crops, vineyard, grain, legumes, sugar, and other crop
by-products or residues.
Such term shall not include closed-loop biomass.
``(6) Reduced credit for certain preeffective date
facilities.--In the case of any facility described in
subparagraph (D) or (E) of paragraph (3) which is placed in
service before the date of the enactment of this subparagraph--
``(A) subsection (a)(1) shall be applied by
substituting `1.0 cents' for `1.5 cents', and
``(B) the 5-year period beginning on the date of
the enactment of this paragraph shall be substituted in
lieu of the 10-year period in subsection (a)(2)(A)(ii).
``(7) Limit on reductions for grants, etc., for open-loop
biomass facilities.--If the amount of the credit determined
under subsection (a) with respect to any open-loop biomass
facility is required to be reduced under paragraph (3) of
subsection (b), the fraction under such paragraph shall in no
event be greater than \4/5\.
``(8) Coordination with section 29.--The term `qualified
facility' shall not include any facility the production from
which is allowed as a credit under section 29 for the taxable
year or any prior taxable year.''.
(d) Effective Date.--The amendments made by this section shall
apply to electricity sold after the date of the enactment of this Act.
SEC. 3103. CREDIT FOR QUALIFIED STATIONARY FUEL CELL POWERPLANTS.
(a) Business Property.--
(1) In general.--Subparagraph (A) of section 48(a)(3)
(defining energy property) is amended by striking ``or'' at the
end of clause (i), by adding ``or'' at the end of clause (ii),
and by inserting after clause (ii) the following new clause:
``(iii) equipment which is part of a
qualified stationary fuel cell powerplant,''.
(2) Qualified stationary fuel cell powerplant.--Subsection
(a) of section 48 is amended by redesignating paragraphs (4)
and (5) as paragraphs (5) and (6), respectively, and by
inserting after paragraph (3) the following new paragraph:
``(4) Qualified stationary fuel cell powerplant.--For
purposes of this subsection--
``(A) In general.--The term `qualified stationary
fuel cell powerplant' means a stationary fuel cell
power plant that has an electricity-only generation
efficiency greater than 30 percent.
``(B) Limitation.--In the case of qualified
stationary fuel cell powerplant placed in service
during the taxable year, the credit under subsection
(a) for such year may not exceed $1,000 for each
kilowatt of capacity.
``(C) Stationary fuel cell power plant.--The term
`stationary fuel cell power plant' means an integrated
system comprised of a fuel cell stack assembly and
associated balance of plant components that converts a
fuel into electricity using electrochemical means.
``(D) Termination.--Such term shall not include any
property placed in service after December 31, 2006.''.
(3) Effective date.--The amendments made by this subsection
shall apply to property placed in service 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 the enactment of the Revenue Reconciliation Act of
1990).
(b) Nonbusiness Property.--
(1) In general.--Subpart A of part IV of subchapter A of
chapter 1 (relating to nonrefundable personal credits) is
amended by inserting after section 25C the following new
section:
``SEC. 25D. NONBUSINESS QUALIFIED STATIONARY FUEL CELL POWERPLANT.
``(a) In General.--In the case of an individual, there shall be
allowed as a credit against the tax imposed by this chapter for the
taxable year an amount equal to 10 percent of the qualified stationary
fuel cell powerplant expenditures which are paid or incurred during
such year.
``(b) Limitations.--
``(1) In general.--The credit allowed under subsection (a)
for the taxable year and all prior taxable years shall not
exceed $1,000 for each kilowatt of capacity.
``(2) Limitation based on amount of tax.--The credit
allowed under subsection (a) for the taxable year shall not
exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under this
subpart (other than this section and sections 23 and
25E) and section 27 for the taxable year.
``(c) Qualified Stationary Fuel Cell Powerplant Expenditures.--For
purposes of this section, the term `qualified stationary fuel cell
powerplant expenditures' means expenditures by the taxpayer for any
qualified stationary fuel cell powerplant (as defined in section
48(a)(4))--
``(1) which meets the requirements of subparagraphs (B) and
(D) of section 48(a)(3), and
``(2) which is installed on or in connection with a
dwelling unit--
``(A) which is located in the United States, and
``(B) which is used by the taxpayer as a residence.
Such term includes expenditures for labor costs properly allocable to
the onsite preparation, assembly, or original installation of the
property.
``(d) Special Rules.--For purposes of this section, rules similar
to the rules of section 25C(d) shall apply.
``(e) Basis Adjustments.--For purposes of this subtitle, if a
credit is allowed under this section for any expenditure with respect
to any property, the increase in the basis of such property which would
(but for this subsection) result from such expenditure shall be reduced
by the amount of the credit so allowed.
``(f) Termination.--This section shall not apply to any expenditure
made after December 31, 2006.''.
(2) Conforming Amendments.--
(A) Subsection (a) of section 1016 is amended by
striking ``and'' at the end of paragraph (28), by
striking the period at the end of paragraph (29) and
inserting ``, and'', and by adding at the end the
following new paragraph:
``(30) to the extent provided in section 25D(e), in the
case of amounts with respect to which a credit has been allowed
under section 25D.''.
(B) The table of sections for subpart A of part IV
of subchapter A of chapter 1 is amended by inserting
after the item relating to section 25C the following
new item:
``Sec. 25D. Nonbusiness qualified
stationary fuel cell
powerplant.''.
(3) Effective date.--The amendments made by this subsection
shall apply to expenditures paid or incurred after December 31,
2001.
SEC. 3104. ALTERNATIVE MOTOR VEHICLE CREDIT.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
(relating to foreign tax credit, etc.) is amended by adding at the end
the following:
``SEC. 30B. ALTERNATIVE MOTOR VEHICLE CREDIT.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to the sum of--
``(1) the new qualified fuel cell motor vehicle credit
determined under subsection (b),
``(2) the new qualified hybrid motor vehicle credit
determined under subsection (c),
``(3) the new qualified alternative fuel motor vehicle
credit determined under subsection (d), and
``(4) the advanced lean burn technology motor vehicle
credit determined under subsection (e).
``(b) New Qualified Fuel Cell Motor Vehicle Credit.--
``(1) In general.--For purposes of subsection (a), the new
qualified fuel cell motor vehicle credit determined under this
subsection with respect to a new qualified fuel cell motor
vehicle placed in service by the taxpayer during the taxable
year is--
``(A) $4,000, if such vehicle has a gross vehicle
weight rating of not more than 8,500 pounds,
``(B) $10,000, if such vehicle has a gross vehicle
weight rating of more than 8,500 pounds but not more
than 14,000 pounds,
``(C) $20,000, if such vehicle has a gross vehicle
weight rating of more than 14,000 pounds but not more
than 26,000 pounds, and
``(D) $40,000, if such vehicle has a gross vehicle
weight rating of more than 26,000 pounds.
``(2) Increase for fuel efficiency.--
``(A) In general.--The amount determined under
paragraph (1)(A) with respect to a new qualified fuel
cell motor vehicle which is a passenger automobile or
light truck shall be increased by--
``(i) $1,000, if such vehicle achieves at
least 150 percent but less than 175 percent of
the 2000 model year city fuel economy,
``(ii) $1,500, if such vehicle achieves at
least 175 percent but less than 200 percent of
the 2000 model year city fuel economy,
``(iii) $2,000, if such vehicle achieves at
least 200 percent but less than 225 percent of
the 2000 model year city fuel economy,
``(iv) $2,500, if such vehicle achieves at
least 225 percent but less than 250 percent of
the 2000 model year city fuel economy,
``(v) $3,000, if such vehicle achieves at
least 250 percent but less than 275 percent of
the 2000 model year city fuel economy,
``(vi) $3,500, if such vehicle achieves at
least 275 percent but less than 300 percent of
the 2000 model year city fuel economy, and
``(vii) $4,000, if such vehicle achieves at
least 300 percent of the 2000 model year city
fuel economy.
``(B) 2000 model year city fuel economy.--For
purposes of subparagraph (A), the 2000 model year city
fuel economy with respect to a vehicle shall be
determined in accordance with the following tables:
``(i) In the case of a passenger
automobile:
``If vehicle inertia weight class The 2000 model year city fuel
is: economy is:
1,500 or 1,750 lbs............................ 43.7 mpg
2,000 lbs..................................... 38.3 mpg
2,250 lbs..................................... 34.1 mpg
2,500 lbs..................................... 30.7 mpg
2,750 lbs..................................... 27.9 mpg
3,000 lbs..................................... 25.6 mpg
3,500 lbs..................................... 22.0 mpg
4,000 lbs..................................... 19.3 mpg
4,500 lbs..................................... 17.2 mpg
5,000 lbs..................................... 15.5 mpg
5,500 lbs..................................... 14.1 mpg
6,000 lbs..................................... 12.9 mpg
6,500 lbs..................................... 11.9 mpg
7,000 or 8,500 lbs............................ 11.1 mpg.
``(ii) In the case of a light truck:
``If vehicle inertia weight class The 2000 model year city fuel
is: economy is:
1,500 or 1,750 lbs............................ 37.6 mpg
2,000 lbs..................................... 33.7 mpg
2,250 lbs..................................... 30.6 mpg
2,500 lbs..................................... 28.0 mpg
2,750 lbs..................................... 25.9 mpg
3,000 lbs..................................... 24.1 mpg
3,500 lbs..................................... 21.3 mpg
4,000 lbs..................................... 19.0 mpg
4,500 lbs..................................... 17.3 mpg
5,000 lbs..................................... 15.8 mpg
5,500 lbs..................................... 14.6 mpg
6,000 lbs..................................... 13.6 mpg
6,500 lbs..................................... 12.8 mpg
7,000 or 8,500 lbs............................ 12.0 mpg.
``(C) Vehicle inertia weight class.--For purposes
of subparagraph (B), the term `vehicle inertia weight
class' has the same meaning as when defined in
regulations prescribed by the Administrator of the
Environmental Protection Agency for purposes of the
administration of title II of the Clean Air Act (42
U.S.C. 7521 et seq.).
``(3) New qualified fuel cell motor vehicle.--For purposes
of this subsection, the term `new qualified fuel cell motor
vehicle' means a motor vehicle--
``(A) which is propelled by power derived from one
or more cells which convert chemical energy directly
into electricity by combining oxygen with hydrogen fuel
which is stored on board the vehicle in any form and
may or may not require reformation prior to use,
``(B) which, in the case of a passenger automobile
or light truck--
``(i) for 2002 and later model vehicles,
has received a certificate of conformity under
the Clean Air Act and meets or exceeds the
equivalent qualifying California low emission
vehicle standard under section 243(e)(2) of the
Clean Air Act for that make and model year, and
``(ii) for 2004 and later model vehicles,
has received a certificate that such vehicle
meets or exceeds 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 for that make and model year vehicle,
``(C) the original use of which commences with the
taxpayer,
``(D) which is acquired for use or lease by the
taxpayer and not for resale, and
``(E) which is made by a manufacturer.
``(c) New Qualified Hybrid Motor Vehicle Credit.--
``(1) In general.--For purposes of subsection (a), the new
qualified hybrid motor vehicle credit determined under this
subsection with respect to a new qualified hybrid motor vehicle
placed in service by the taxpayer during the taxable year is
the credit amount determined under paragraph (2).
``(2) Credit amount.--
``(A) In general.--The credit amount determined
under this paragraph shall be determined in accordance
with the following tables:
``(i) In the case of a new qualified hybrid
motor vehicle which is a passenger automobile
or light truck and which provides the following
percentage of the maximum available power:
``If percentage of the maximum The credit amount is:
available power is:
At least 2.5 percent but less than 10 percent. $250
At least 10 percent but less than 20 percent.. $500
At least 20 percent but less than 30 percent.. $750
At least 30 percent........................... $1,000.
``(ii) In the case of a new qualified
hybrid motor vehicle which is a heavy duty
hybrid motor vehicle and which provides the
following percentage of the maximum available
power:
``(I) If such vehicle has a gross
vehicle weight rating of not more than
14,000 pounds:
``If percentage of the maximum The credit amount is:
available power is:
At least 20 percent but less than 30 percent.. $1,500
At least 30 percent but less than 40 percent.. $1,750
At least 40 percent but less than 50 percent.. $2,000
At least 50 percent but less than 60 percent.. $2,250
At least 60 percent........................... $2,500.
``(II) If such vehicle has a gross
vehicle weight rating of more than
14,000 but not more than 26,000 pounds:
``If percentage of the maximum The credit amount is:
available power is:
At least 20 percent but less than 30 percent.. $4,000
At least 30 percent but less than 40 percent.. $4,500
At least 40 percent but less than 50 percent.. $5,000
At least 50 percent but less than 60 percent.. $5,500
At least 60 percent........................... $6,000.
``(III) If such vehicle has a gross
vehicle weight rating of more than
26,000 pounds:
``If percentage of the maximum The credit amount is:
available power is:
At least 20 percent but less than 30 percent.. $6,000
At least 30 percent but less than 40 percent.. $7,000
At least 40 percent but less than 50 percent.. $8,000
At least 50 percent but less than 60 percent.. $9,000
At least 60 percent........................... $10,000.
``(B) Increase for fuel efficiency.--
``(i) Amount.--The amount determined under
subparagraph (A)(i) with respect to a passenger
automobile or light truck shall be increased
by--
``(I) $1,000, if such vehicle
achieves at least 125 percent but less
than 150 percent of the 2000 model year
city fuel economy,
``(II) $1,500, if such vehicle
achieves at least 150 percent but less
than 175 percent of the 2000 model year
city fuel economy,
``(III) $2,000, if such vehicle
achieves at least 175 percent but less
than 200 percent of the 2000 model year
city fuel economy,
``(IV) $2,500, if such vehicle
achieves at least 200 percent but less
than 225 percent of the 2000 model year
city fuel economy,
``(V) $3,000, if such vehicle
achieves at least 225 percent but less
than 250 percent of the 2000 model year
city fuel economy, and
``(VI) $3,500, if such vehicle
achieves at least 250 percent of the
2000 model year city fuel economy.
``(ii) 2000 model year city fuel economy.--
For purposes of clause (i), the 2000 model year
city fuel economy with respect to a vehicle
shall be determined using the tables provided
in subsection (b)(2)(B) with respect to such
vehicle.
``(iii) Option to use like vehicle.--For
purposes of clause (i), at the option of the
vehicle manufacturer, the increase for fuel
efficiency may be calculated by comparing the
new qualified hybrid motor vehicle to a `like
vehicle'.
``(C) Increase for accelerated emissions
performance.--The amount determined under subparagraph
(A)(ii) with respect to an applicable heavy duty hybrid
motor vehicle shall be increased by the increase credit
amount determined in accordance with the following
tables:
``(i) In the case of a vehicle which has a
gross vehicle weight rating of not more than
14,000 pounds:
``If the model year is: The increase credit amount is:
2002.......................................... $3,500
2003.......................................... $3,000
2004.......................................... $2,500
2005.......................................... $2,000
2006.......................................... $1,500.
``(ii) In the case of a vehicle which has a
gross vehicle weight rating of more than 14,000
pounds but not more than 26,000 pounds:
``If the model year is: The increase credit amount is:
2002.......................................... $9,000
2003.......................................... $7,750
2004.......................................... $6,500
2005.......................................... $5,250
2006.......................................... $4,000.
``(iii) In the case of a vehicle which has
a gross vehicle weight rating of more than
26,000 pounds:
``If the model year is: The increase credit amount is:
2002.......................................... $14,000
2003.......................................... $12,000
2004.......................................... $10,000
2005.......................................... $8,000
2006.......................................... $6,000.
``(D) Conservation credit.--
``(i) Amount.--The amount determined under
subparagraph (A)(i) with respect to a passenger
automobile or light truck shall be increased
by--
``(I) $250, if such vehicle
achieves a lifetime fuel savings of at
least 1,500 gallons of gasoline, and
``(II) $500, if such vehicle
achieves a lifetime fuel savings of at
least 2,500 gallons of gasoline.
``(ii) Lifetime fuel savings for like
vehicle.--For purposes of clause (i), at the
option of the vehicle manufacturer, the
lifetime fuel savings fuel may be calculated by
comparing the new qualified hybrid motor
vehicle to a `like vehicle'.
``(E) Definitions.--
``(i) Applicable heavy duty hybrid motor
vehicle.--For purposes of subparagraph (C), the
term `applicable heavy duty hybrid motor
vehicle' means a heavy duty hybrid motor
vehicle which is powered by an internal
combustion or heat engine which is certified as
meeting the emission standards set in the
regulations prescribed by the Administrator of
the Environmental Protection Agency for 2007
and later model year diesel heavy duty engines
or 2008 and later model year ottocycle heavy
duty engines, as applicable.
``(ii) Heavy duty hybrid motor vehicle.--
For purposes of this paragraph, the term `heavy
duty hybrid motor vehicle' means a new
qualified hybrid motor vehicle which has a
gross vehicle weight rating of more than 10,000
pounds and draws propulsion energy from both of
the following onboard sources of stored energy:
``(I) An internal combustion or
heat engine using consumable fuel
which, for 2002 and later model
vehicles, has received a certificate of
conformity under the Clean Air Act and
meets or exceeds a level of not greater
than 3.0 grams per brake horsepower-
hour of oxides of nitrogen and 0.01 per
brake horsepower-hour of particulate
matter.
``(II) A rechargeable energy
storage system.
``(iii) Maximum available power.--
``(I) Passenger automobile or light
truck.--For purposes of subparagraph
(A)(i), the term `maximum available
power' means the maximum power
available from the battery or other
electrical storage device, during a
standard 10 second pulse power test,
divided by the sum of the battery or
other electrical storage device and the
SAE net power of the heat engine.
``(II) Heavy duty hybrid motor
vehicle.--For purposes of subparagraph
(A)(ii), the term `maximum available
power' means the maximum power
available from the battery or other
electrical storage device, during a
standard 10 second pulse power test,
divided by the vehicle's total traction
power. The term `total traction power'
means the sum of the electric motor
peak power and the heat engine peak
power of the vehicle, except that if
the electric motor is the sole means by
which the vehicle can be driven, the
total traction power is the peak
electric motor power.
``(iv) Like vehicle.--For purposes of
subparagraph (B)(iii), the term `like vehicle'
for a new qualified hybrid motor vehicle
derived from a conventional production vehicle
produced in the same model year means a model
that is equivalent in the following areas:
``(I) Body style (2-door or 4-
door).
``(II) Transmission (automatic or
manual).
``(III) Acceleration performance
(<plus-minus> 0.05 seconds).
``(IV) Drivetrain (2-wheel drive or
4-wheel drive).
``(V) Certification by the
Administrator of the Environmental
Protection Agency.
``(v) Lifetime fuel savings.--For purposes
of subsection (c)(2)(D), the term `lifetime
fuel savings' shall be calculated by dividing
120,000 by the difference between the 2000
model year city fuel economy for the vehicle
inertia weight class and the city fuel economy
for the new qualified hybrid motor vehicle.
``(3) New qualified hybrid motor vehicle.--For purposes of
this subsection, the term `new qualified hybrid motor vehicle'
means a motor vehicle--
``(A) which draws propulsion energy from onboard
sources of stored energy which are both--
``(i) an internal combustion or heat engine
using combustible fuel, and
``(ii) a rechargeable energy storage
system,
``(B) which, in the case of a passenger automobile
or light truck, for 2002 and later model vehicles, has
received a certificate of conformity under the Clean
Air Act and meets or exceeds the equivalent qualifying
California low emission vehicle standard under section
243(e)(2) of the Clean Air Act for that make and model
year,
``(C) the original use of which commences with the
taxpayer,
``(D) which is acquired for use or lease by the
taxpayer and not for resale, and
``(E) which is made by a manufacturer.
``(d) New Qualified Alternative Fuel Motor Vehicle Credit.--
``(1) Allowance of credit.--Except as provided in paragraph
(5), the credit determined under this subsection is an amount
equal to the applicable percentage of the incremental cost of
any new qualified alternative fuel motor vehicle placed in
service by the taxpayer during the taxable year.
``(2) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage with respect to any new
qualified alternative fuel motor vehicle is--
``(A) 50 percent, plus
``(B) 30 percent, if such vehicle--
``(i) has received a certificate of
conformity under the Clean Air Act and meets or
exceeds the most stringent standard available
for certification under the Clean Air Act for
that make and model year vehicle (other than a
zero emission standard), or
``(ii) has received an order from an
applicable State certifying the vehicle for
sale or lease in California and meets or
exceeds the most stringent standard available
for certification under the State laws of
California (enacted in accordance with a waiver
granted under section 209(b) of the Clean Air
Act) for that make and model year vehicle
(other than a zero emission standard).
``(3) Incremental cost.--For purposes of this subsection,
the incremental cost of any new qualified alternative fuel
motor vehicle is equal to the amount of the excess of the
manufacturer's suggested retail price for such vehicle over
such price for a gasoline or diesel fuel motor vehicle of the
same model, to the extent such amount does not exceed--
``(A) $5,000, if such vehicle has a gross vehicle
weight rating of not more than 8,500 pounds,
``(B) $10,000, if such vehicle has a gross vehicle
weight rating of more than 8,500 pounds but not more
than 14,000 pounds,
``(C) $25,000, if such vehicle has a gross vehicle
weight rating of more than 14,000 pounds but not more
than 26,000 pounds, and
``(D) $40,000, if such vehicle has a gross vehicle
weight rating of more than 26,000 pounds.
``(4) Qualified alternative fuel motor vehicle defined.--
For purposes of this subsection--
``(A) In general.--The term `qualified alternative
fuel motor vehicle' means any motor vehicle--
``(i) which is only capable of operating on
an alternative fuel,
``(ii) the original use of which commences
with the taxpayer,
``(iii) which is acquired by the taxpayer
for use or lease, but not for resale, and
``(iv) which is made by a manufacturer.
``(B) Alternative fuel.--The term `alternative
fuel' means compressed natural gas, liquefied natural
gas, liquefied petroleum gas, hydrogen, and any liquid
at least 85 percent of the volume of which consists of
methanol.
``(5) Credit for mixed-fuel vehicles.--
``(A) In general.--In the case of a mixed-fuel
vehicle placed in service by the taxpayer during the
taxable year, the credit determined under this
subsection is an amount equal to--
``(i) in the case of a 75/25 mixed-fuel
vehicle, 70 percent of the credit which would
have been allowed under this subsection if such
vehicle was a qualified alternative fuel motor
vehicle, and
``(ii) in the case of a 95/5 mixed-fuel
vehicle, 95 percent of the credit which would
have been allowed under this subsection if such
vehicle was a qualified alternative fuel motor
vehicle.
``(B) Mixed-fuel vehicle.--For purposes of this
subsection, the term `mixed-fuel vehicle' means any
motor vehicle described in subparagraph (C) or (D) of
paragraph (3), which--
``(i) is certified by the manufacturer as
being able to perform efficiently in normal
operation on a combination of an alternative
fuel and a petroleum-based fuel,
``(ii) either--
``(I) has received a certificate of
conformity under the Clean Air Act, or
``(II) has received an order from
an applicable State certifying the
vehicle for sale or lease in California
and meets or exceeds the low emission
vehicle standard under section 88.105-
94 of title 40, Code of Federal
Regulations, for that make and model
year vehicle,
``(iii) the original use of which commences
with the taxpayer,
``(iv) which is acquired by the taxpayer
for use or lease, but not for resale, and
``(v) which is made by a manufacturer.
``(C) 75/25 mixed-fuel vehicle.--For purposes of
this subsection, the term `75/25 mixed-fuel vehicle'
means a mixed-fuel vehicle which operates using at
least 75 percent alternative fuel and not more than 25
percent petroleum-based fuel.
``(D) 95/5 mixed-fuel vehicle.--For purposes of
this subsection, the term `95/5 mixed-fuel vehicle'
means a mixed-fuel vehicle which operates using at
least 95 percent alternative fuel and not more than 5
percent petroleum-based fuel.
``(e) Advanced Lean Burn Technology Motor Vehicle Credit.--
``(1) In general.--For purposes of subsection (a), the
advanced lean burn technology motor vehicle credit determined
under this subsection with respect to a new qualified advanced
lean burn technology motor vehicle placed in service by the
taxpayer during the taxable year is the credit amount
determined under paragraph (2).
``(2) Credit amount.--
``(A) Increase for fuel efficiency.--The credit
amount determined under this paragraph shall be--
``(i) $1,000, if such vehicle achieves at
least 125 percent but less than 150 percent of
the 2000 model year city fuel economy,
``(ii) $1,500, if such vehicle achieves at
least 150 percent but less than 175 percent of
the 2000 model year city fuel economy,
``(iii) $2,000, if such vehicle achieves at
least 175 percent but less than 200 percent of
the 2000 model year city fuel economy,
``(iv) $2,500, if such vehicle achieves at
least 200 percent but less than 225 percent of
the 2000 model year city fuel economy,
``(v) $3,000, if such vehicle achieves at
least 225 percent but less than 250 percent of
the 2000 model year city fuel economy, and
``(vi) $3,500, if such vehicle achieves at
least 250 percent of the 2000 model year city
fuel economy.
For purposes of clause (i), the 2000 model year city
fuel economy with respect to a vehicle shall be
determined using the tables provided in subsection
(b)(2)(B) with respect to such vehicle.
``(B) Conservation credit.--The amount determined
under subparagraph (A) with respect to an advanced lean
burn technology motor vehicle shall be increased by--
``(i) $250, if such vehicle achieves a
lifetime fuel savings of at least 1,500 gallons
of gasoline, and
``(ii) $500, if such vehicle achieves a
lifetime fuel savings of at least 2,500 gallons
of gasoline.
``(C) Option to use like vehicle.--At the option of
the vehicle manufacturer, the increase for fuel
efficiency and conservation credit may be calculated by
comparing the new advanced lean-burn technology motor
vehicle to a like vehicle.
``(3) Definitions.--For purposes of this subsection.--
``(A) Advanced lean burn technology motor
vehicle.--The term `advanced lean burn technology motor
vehicle' means a motor vehicle with an internal
combustion engine that--
``(i) is designed to operate primarily
using more air than is necessary for complete
combustion of the fuel,
``(ii) incorporates direct injection,
``(iii) achieves at least 125 percent of
the 2000 model year city fuel economy, and
``(iv) for 2004 and later model vehicles,
has received a certificate that such vehicle
meets or exceeds the Bin 5, Tier 2 emission
levels (for passenger vehicles) or Bin 8, Tier
2 emission levels (for light trucks)
established in regulations prescribed by the
Administrator of the Environmental Protection
Agency under section 202(i) of the Clean Air
Act for that make and model year vehicle.
``(B) Like vehicle.--The term `like vehicle' for an
advanced lean burn technology motor vehicle derived
from a conventional production vehicle produced in the
same model year means a model that is equivalent in the
following areas:
``(i) Body style (2-door or 4-door),
``(ii) Transmission (automatic or manual),
``(iii) Acceleration performance
(<plus-minus> 0.05 seconds).
``(iv) Drivetrain (2-wheel drive or 4-wheel
drive).
``(v) Certification by the Administrator of
the Environmental Protection Agency.
``(C) Lifetime fuel savings.--The term `lifetime
fuel savings' shall be calculated by dividing 120,000
by the difference between the 2000 model year city fuel
economy for the vehicle inertia weight class and the
city fuel economy for the new qualified hybrid motor
vehicle.
``(f) Limitation Based on Amount of Tax.--The credit allowed under
subsection (a) for the taxable year shall not exceed the excess of--
``(1) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(2) the sum of the credits allowable under subpart A and
sections 27, 29, and 30A for the taxable year.
``(g) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Consumable fuel.--The term `consumable fuel' means
any solid, liquid, or gaseous matter which releases energy when
consumed by an auxiliary power unit.
``(2) Motor vehicle.--The term `motor vehicle' has the
meaning given such term by section 30(c)(2).
``(3) 2000 model year city fuel economy.--The 2000 model
year city fuel economy with respect to any vehicle shall be
measured under rules similar to the rules under section
4064(c).
``(4) Other terms.--The terms `automobile', `passenger
automobile', `light truck', and `manufacturer' have the
meanings given such terms in regulations prescribed by the
Administrator of the Environmental Protection Agency for
purposes of the administration of title II of the Clean Air Act
(42 U.S.C. 7521 et seq.).
``(5) Reduction in basis.--For purposes of this subtitle,
the basis of any property for which a credit is allowable under
subsection (a) shall be reduced by the amount of such credit so
allowed.
``(6) No double benefit.--The amount of any deduction or
credit allowable under this chapter (other than the credit
allowable under this section)--
``(A) for any incremental cost taken into account
in computing the amount of the credit determined under
subsection (d) shall be reduced by the amount of such
credit attributable to such cost, and
``(B) with respect to a vehicle described under
subsection (b) or (c), shall be reduced by the amount
of credit allowed under subsection (a) for such vehicle
for the taxable year.
``(7) Property used by tax-exempt entities.--In the case of
a credit amount which is allowable with respect to a motor
vehicle which is acquired by an entity exempt from tax under
this chapter, the person which sells or leases such vehicle to
the entity shall be treated as the taxpayer with respect to the
vehicle for purposes of this section and the credit shall be
allowed to such person, but only if the person clearly
discloses to the entity in any sale or lease document the
specific amount of any credit otherwise allowable to the entity
under this section and reduces the sale or lease price of such
vehicle by an equivalent amount of such credit.
``(8) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any property which ceases
to be property eligible for such credit (including recapture in
the case of a lease period of less than the economic life of a
vehicle).
``(9) Property used outside united states, etc., not
qualified.--No credit shall be allowed under subsection (a)
with respect to any property referred to in section 50(b) or
with respect to the portion of the cost of any property taken
into account under section 179.
``(10) Election to not take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects to not have this section apply to such vehicle.
``(11) Carryforward allowed.--
``(A) In general.--If the credit amount allowable
under subsection (a) for a taxable year exceeds the
amount of the limitation under subsection (f) for such
taxable year (referred to as the `unused credit year'
in this paragraph), such excess shall be allowed as a
credit carryforward for each of the 20 taxable years
following the unused credit year.
``(B) Rules.--Rules similar to the rules of section
39 shall apply with respect to the credit carryforward
under subparagraph (A).
``(12) Interaction with air quality and motor vehicle
safety standards.--Unless otherwise provided in this section, a
motor vehicle shall not be considered eligible for a credit
under this section unless such vehicle is in compliance with--
``(A) the applicable provisions of the Clean Air
Act for the applicable make and model year of the
vehicle (or applicable air quality provisions of State
law in the case of a State which has adopted such
provision under a waiver under section 209(b) of the
Clean Air Act), and
``(B) the motor vehicle safety provisions of
sections 30101 through 30169 of title 49, United States
Code.
``(h) Regulations.--
``(1) In general.--The Secretary shall promulgate such
regulations as necessary to carry out the provisions of this
section.
``(2) Administrator of environmental protection agency.--
The Administrator of the Environmental Protection Agency, in
coordination with the Secretary of Transportation and the
Secretary of the Treasury, shall prescribe such regulations as
necessary to determine whether a motor vehicle meets the
requirements to be eligible for a credit under this section.
``(i) Termination.--This section shall not apply to any property
placed in service after--
``(1) in the case of a new qualified fuel cell motor
vehicle (as described in subsection (b)), December 31, 2011,
and
``(2) in the case of any other property, December 31,
2007.''.
(b) Conforming Amendments.--
(1) Section 1016(a) is amended by striking ``and'' at the
end of paragraph (29), by striking the period at the end of
paragraph (30) and inserting ``, and'', and by adding at the
end the following:
``(31) to the extent provided in section 30B(g)(5).''.
(2) Section 6501(m) is amended by inserting ``30B(g)(10),''
after ``30(d)(4),''.
(3) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 30A the following:
``Sec. 30B. Alternative motor vehicle
credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2001, in taxable
years ending after such date.
SEC. 3105. EXTENSION OF DEDUCTION FOR CERTAIN REFUELING PROPERTY.
(a) In General.--Section 179A(f) (relating to termination) is
amended by striking ``2004'' and inserting ``2007''.
(b) Modification of Phaseout.--Subparagraph (B) of section
179A(b)(1) is amended--
(1) in clause (i), by striking ``2002'' and inserting
``2005'',
(2) in clause (ii), by striking ``2003'' and inserting
``2006'', and
(3) in clause (iii), by striking ``2004'' and inserting
``2007''.
SEC. 3106. MODIFICATION OF CREDIT FOR QUALIFIED ELECTRIC VEHICLES.
(a) Amount of Credit.--
(1) In general.--Section 30(a) (relating to allowance of
credit) is amended by striking ``10 percent of''.
(2) Limitation of credit according to type of vehicle.--
Section 30(b) (relating to limitations) is amended--
(A) by striking paragraphs (1) and (2) and
inserting the following:
``(1) Limitation according to type of vehicle.--The amount
of the credit allowed under subsection (a) for any vehicle
shall not exceed the greatest of the following amounts
applicable to such vehicle:
``(A) In the case of a vehicle which conforms to
the Motor Vehicle Safety Standard 500 prescribed by the
Secretary of Transportation, the lesser of--
``(i) 10 percent of the manufacturer's
suggested retail price of the vehicle, or
``(ii) $4,000.
``(B) In the case of a vehicle not described in
subparagraph (A) with a gross vehicle weight rating not
exceeding 8,500 pounds--
``(i) $4,000, or
``(ii) $5,000, if such vehicle is--
``(I) capable of a driving range of
at least 70 miles on a single charge of
the vehicle's rechargeable batteries
and measured pursuant to the urban
dynamometer schedules under appendix I
to part 86 of title 40, Code of Federal
Regulations, or
``(II) capable of a payload
capacity of at least 1,000 pounds.
``(C) In the case of a vehicle with a gross vehicle
weight rating exceeding 8,500 pounds but not exceeding
14,000 pounds, $10,000.
``(D) In the case of a vehicle with a gross vehicle
weight rating exceeding 14,000 pounds but not exceeding
26,000 pounds, $20,000.
``(E) In the case of a vehicle with a gross vehicle
weight rating exceeding 26,000 pounds, $40,000.'', and
(B) by redesignating paragraph (3) as paragraph
(2).
(3) Conforming amendments.--
(A) Section 53(d)(1)(B)(iii) is amended by striking
``section 30(b)(3)(B)'' and inserting ``section
30(b)(2)(B)''.
(B) Section 55(c)(2) is amended by striking
``30(b)(3)'' and inserting ``30(b)(2)''.
(b) Qualified Battery Electric Vehicle.--
(1) In general.--Section 30(c)(1)(A) (defining qualified
electric vehicle) is amended to read as follows:
``(A) which is--
``(i) operated solely by use of a battery
or battery pack, or
``(ii) powered primarily through the use of
an electric battery or battery pack using a
flywheel or capacitor which stores energy
produced by an electric motor through
regenerative braking to assist in vehicle
operation,''.
(2) Leased vehicles.--Section 30(c)(1)(C) is amended by
inserting ``or lease'' after ``use''.
(3) Conforming amendments.--
(A) Subsections (a), and (c) of section 30 are each
amended by inserting ``battery'' after ``qualified''
each place it appears.
(B) The heading of subsection (c) of section 30 is
amended by inserting ``Battery'' after ``Qualified''.
(C) The heading of section 30 is amended by
inserting ``battery'' after ``qualified''.
(D) The item relating to section 30 in the table of
sections for subpart B of part IV of subchapter A of
chapter 1 is amended by inserting ``battery'' after
``qualified''.
(E) Section 179A(c)(3) is amended by inserting
``battery'' before ``electric''.
(F) The heading of paragraph (3) of section 179A(c)
is amended by inserting ``battery'' before
``electric''.
(c) Additional Special Rules.--Section 30(d) (relating to special
rules) is amended by adding at the end the following:
``(5) No double benefit.--The amount of any deduction or
credit allowable under this chapter for any cost taken into
account in computing the amount of the credit determined under
subsection (a) shall be reduced by the amount of such credit
attributable to such cost.
``(6) Property used by tax-exempt entities.--In the case of
a credit amount which is allowable with respect to a vehicle
which is acquired by an entity exempt from tax under this
chapter, the person which sells or leases such vehicle to the
entity shall be treated as the taxpayer with respect to the
vehicle for purposes of this section and the credit shall be
allowed to such person, but only if the person clearly
discloses to the entity in any sale or lease contract the
specific amount of any credit otherwise allowable to the entity
under this section and reduces the sale or lease price of such
vehicle by an equivalent amount of such credit.
``(7) Carryforward allowed.--
``(A) In general.--If the credit amount allowable
under subsection (a) for a taxable year exceeds the
amount of the limitation under subsection (b)(3) for
such taxable year, such excess shall be allowed as a
credit carryforward for each of the 20 taxable years
following such taxable year.
``(B) Rules.--Rules similar to the rules of section
39 shall apply with respect to the credit carryforward
under subparagraph (A).''.
(d) Extension.--Section 30(e) (relating to termination) is amended
by striking ``2004'' and inserting ``2007''.
(e) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2001, in taxable
years ending after such date.
SEC. 3107. TAX CREDIT FOR ENERGY EFFICIENT APPLIANCES.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
(relating to business-related credits) is amended by adding at the end
the following new section:
``SEC. 45G. ENERGY EFFICIENT APPLIANCE CREDIT.
``(a) General Rule.--For purposes of section 38, the energy
efficient appliance credit determined under this section for the
taxable year is an amount equal to the applicable amount determined
under subsection (b) with respect to the eligible production of
qualified energy efficient appliances produced by the taxpayer during
the calendar year ending with or within the taxable year.
``(b) Applicable Amount; Eligible Production.--For purposes of
subsection (a)--
``(1) Applicable amount.--The applicable amount is--
``(A) $50 in the case of an energy efficient
clothes washer described in subsection (d)(2)(A) or an
energy efficient refrigerator described in subsection
(d)(3)(B)(i), and
``(B) $100 in the case of any other energy
efficient clothes washer or energy efficient
refrigerator.
``(2) Eligible production.--
``(A) In general.--The eligible production of each
category of qualified energy efficient appliances is
the excess of--
``(i) the number of appliances in such
category which are produced by the taxpayer
during such calendar year, over
``(ii) the average number of appliances in
such category which were produced by the
taxpayer during calendar years 1998, 1999, and
2000.
``(B) Categories.--For purposes of subparagraph
(A), the categories are--
``(i) energy efficient clothes washers
described in subsection (d)(2)(A),
``(ii) energy efficient clothes washers
described in subsection (d)(2)(B),
``(iii) energy efficient refrigerators
described in subsection (d)(3)(B)(i), and
``(iv) energy efficient refrigerators
described in subsection (d)(3)(B)(ii).
``(C) Special rule for 2001 production.--For
purposes of determining eligible production for
calendar year 2001--
``(i) only production after the date of the
enactment of this section shall be taken into
account under subparagraph (A)(i), and
``(ii) the amount taken into account under
subparagraph (A)(ii) shall be an amount which
bears the same ratio to the amount which would
(but for this subparagraph) be taken into
account under subparagraph (A)(ii) as--
``(I) the number of days in
calendar year 2001 after the date of
the enactment of this section, bears to
``(II) 365.
``(c) Limitation on Maximum Credit.--
``(1) In general.--The maximum amount of credit allowed
under subsection (a) with respect to a taxpayer for all taxable
years shall be--
``(A) $30,000,000 with respect to the credit
determined under subsection (b)(1)(A), and
``(B) $30,000,000 with respect to the credit
determined under subsection (b)(1)(B).
``(2) Limitation based on gross receipts.--The credit
allowed under subsection (a) with respect to a taxpayer for the
taxable year shall not exceed an amount equal to 2 percent of
the average annual gross receipts of the taxpayer for the 3
taxable years preceding the taxable year in which the credit is
determined.
``(3) Gross receipts.--For purposes of this subsection, the
rules of paragraphs (2) and (3) of section 448(c) shall apply.
``(d) Qualified Energy Efficient Appliance.--For purposes of this
section:
``(1) In general.--The term `qualified energy efficient
appliance' means--
``(A) an energy efficient clothes washer, or
``(B) an energy efficient refrigerator.
``(2) Energy efficient clothes washer.--The term `energy
efficient clothes washer' means a residential clothes washer,
including a residential style coin operated washer, which is
manufactured with--
``(A) a 1.26 MEF or greater, or
``(B) a 1.42 MEF (1.5 MEF for washers produced
after 2004) or greater.
``(3) Energy efficient refrigerator.--The term `energy
efficient refrigerator' means an automatic defrost
refrigerator-freezer which--
``(A) has an internal volume of at least 16.5 cubic
feet, and
``(B) consumes--
``(i) 10 percent less kw/hr/yr than the
energy conservation standards promulgated by
the Department of Energy for refrigerators
produced during 2001, and
``(ii) 15 percent less kw/hr/yr than such
energy conservation standards for refrigerators
produced after 2001.
``(4) MEF.--The term `MEF' means Modified Energy Factor (as
determined by the Secretary of Energy).
``(e) Special Rules.--
``(1) In general.--Rules similar to the rules of
subsections (c), (d), and (e) of section 52 shall apply for
purposes of this section.
``(2) Aggregation rules.--All persons treated as a single
employer under subsection (a) or (b) of section 52 or
subsection (m) or (o) of section 414 shall be treated as 1
person for purposes of subsection (a).
``(f) Verification.--The taxpayer shall submit such information or
certification as the Secretary, in consultation with the Secretary of
Energy, determines necessary to claim the credit amount under
subsection (a).
``(g) Termination.--This section shall not apply--
``(1) with respect to energy efficient refrigerators
described in subsection (d)(3)(B)(i) produced after 2004, and
``(2) with respect to all other qualified energy efficient
appliances produced after 2006.''.
(b) Limitation on Carryback.--Section 39(d) (relating to transition
rules) is amended by adding at the end the following new paragraph:
``(11) No carryback of energy efficient appliance credit
before effective date.--No portion of the unused business
credit for any taxable year which is attributable to the energy
efficient appliance credit determined under section 45G may be
carried to a taxable year ending before the date of the
enactment of section 45G.''.
(c) Conforming Amendment.--Section 38(b) (relating to general
business credit) 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 new
paragraph:
``(16) the energy efficient appliance credit determined
under section 45G(a).''.
(d) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amended by inserting after the
item relating to section 45F the following new item:
``Sec. 45G. Energy efficient appliance
credit.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
SEC. 3108. CREDIT FOR ENERGY EFFICIENCY IMPROVEMENTS TO EXISTING HOMES.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
(relating to nonrefundable personal credits) is amended by inserting
after section 25D the following new section:
``SEC. 25E. ENERGY EFFICIENCY IMPROVEMENTS TO EXISTING HOMES.
``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to 20 percent of the amount paid
or incurred by the taxpayer for qualified energy efficiency
improvements installed during such taxable year.
``(b) Limitations.--
``(1) Maximum credit.--The credit allowed by this section
with respect to a dwelling shall not exceed $2,000.
``(2) Prior credit amounts for taxpayer on same dwelling
taken into account.--If a credit was allowed to the taxpayer
under subsection (a) with respect to a dwelling in 1 or more
prior taxable years, the amount of the credit otherwise
allowable for the taxable year with respect to that dwelling
shall not exceed the amount of $2,000 reduced by the sum of the
credits allowed under subsection (a) to the taxpayer with
respect to the dwelling for all prior taxable years.
``(3) Limitation based on amount of tax.--The credit
allowed under subsection (a) for the taxable year shall not
exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under this
subpart (other than this section and section 23) and
section 27 for the taxable year.
``(c) Carryforward of Unused Credit.--If the credit allowable under
subsection (a) exceeds the limitation imposed by subsection (b)(3) for
such taxable year, such excess shall be carried to the succeeding
taxable year and added to the credit allowable under subsection (a) for
such succeeding taxable year.
``(d) Qualified Energy Efficiency Improvements.--For purposes of
this section, the term `qualified energy efficiency improvements' means
any energy efficient building envelope component which meets the
prescriptive criteria for such component established by the 1998
International Energy Conservation Code, if--
``(1) such component is installed in or on a dwelling--
``(A) located in the United States, and
``(B) owned and used by the taxpayer as the
taxpayer's principal residence (within the meaning of
section 121),
``(2) the original use of such component commences with the
taxpayer, and
``(3) such component reasonably can be expected to remain
in use for at least 5 years.
If the aggregate cost of such components with respect to any dwelling
exceeds $1,000, such components shall be treated as qualified energy
efficiency improvements only if such components are also certified in
accordance with subsection (e) as meeting such criteria.
``(e) Certification.--The certification described in subsection (d)
shall be--
``(1) determined on the basis of the technical
specifications or applicable ratings (including product
labeling requirements) for the measurement of energy
efficiency, based upon energy use or building envelope
component performance, for the energy efficient building
envelope component,
``(2) provided by a local building regulatory authority, a
utility, a manufactured home production inspection primary
inspection agency (IPIA), or an accredited home energy rating
system provider who is accredited by or otherwise authorized to
use approved energy performance measurement methods by the Home
Energy Ratings Systems Council or the National Association of
State Energy Officials, and
``(3) made in writing in a manner that specifies in readily
verifiable fashion the energy efficient building envelope
components installed and their respective energy efficiency
levels.
``(f) Definitions and Special Rules.--
``(1) Tenant-stockholder in cooperative housing
corporation.--In the case of an individual who is a tenant-
stockholder (as defined in section 216) in a cooperative
housing corporation (as defined in such section), such
individual shall be treated as having paid his tenant-
stockholder's proportionate share (as defined in section
216(b)(3)) of the cost of qualified energy efficiency
improvements made by such corporation.
``(2) Condominiums.--
``(A) In general.--In the case of an individual who
is a member of a condominium management association
with respect to a condominium which he owns, such
individual shall be treated as having paid his
proportionate share of the cost of qualified energy
efficiency improvements made by such association.
``(B) Condominium management association.--For
purposes of this paragraph, the term `condominium
management association' means an organization which
meets the requirements of paragraph (1) of section
528(c) (other than subparagraph (E) thereof) with
respect to a condominium project substantially all of
the units of which are used as residences.
``(3) Building envelope component.--The term `building
envelope component' means insulation material or system which
is specifically and primarily designed to reduce the heat loss
or gain of a dwelling when installed in or on such dwelling,
exterior windows (including skylights) and doors, and metal
roofs with appropriate pigmented coatings which are
specifically and primarily designed to reduce the heat gain of
a dwelling when installed in or on such dwelling.
``(4) Manufactured homes included.--For purposes of this
section, the term `dwelling' includes a manufactured home which
conforms to Federal Manufactured Home Construction and Safety
Standards (24 CFR 3280).
``(g) Basis Adjustment.--For purposes of this subtitle, if a credit
is allowed under this section for any expenditure with respect to any
property, the increase in the basis of such property which would (but
for this subsection) result from such expenditure shall be reduced by
the amount of the credit so allowed.
``(h) Application of Section.--This section shall apply to
qualified energy efficiency improvements installed after December 31,
2001 and before January 1, 2007.''.
(b) Conforming Amendments.--
(1) Subsection (a) of section 1016 is amended by striking
``and'' at the end of paragraph (30), by striking the period at
the end of paragraph (31) and inserting ``, and'', and by
adding at the end the following new paragraph:
``(32) to the extent provided in section 25E(g), in the
case of amounts with respect to which a credit has been allowed
under section 25E.''.
(2) The table of sections for subpart A of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 25D the following new item:
``Sec. 25E. Energy efficiency
improvements to existing
homes.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after December 31, 2001.
SEC. 3109. BUSINESS CREDIT FOR CONSTRUCTION OF NEW ENERGY EFFICIENT
HOME.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
(relating to business related credits) is amended by inserting after
section 45G the following new section:
``SEC. 45H. NEW ENERGY EFFICIENT HOME CREDIT.
``(a) In General.--For purposes of section 38, in the case of an
eligible contractor, the credit determined under this section for the
taxable year is an amount equal to the aggregate adjusted bases of all
energy efficient property installed in a qualified new energy efficient
home during construction of such home.
``(b) Limitations.--
``(1) Maximum credit.--
``(A) In general.--The credit allowed by this
section with respect to a dwelling shall not exceed
$2,000.
``(B) Prior credit amounts on same dwelling taken
into account.--If a credit was allowed under subsection
(a) with respect to a dwelling in 1 or more prior
taxable years, the amount of the credit otherwise
allowable for the taxable year with respect to that
dwelling shall not exceed the amount of $2,000 reduced
by the sum of the credits allowed under subsection (a)
with respect to the dwelling for all prior taxable
years.
``(2) Coordination with rehabilitation and energy
credits.--For purposes of this section--
``(A) the basis of any property referred to in
subsection (a) shall be reduced by that portion of the
basis of any property which is attributable to
qualified rehabilitation expenditures (as defined in
section 47(c)(2)) or to the energy percentage of energy
property (as determined under section 48(a)), and
``(B) expenditures taken into account under either
section 47 or 48(a) shall not be taken into account
under this section.
``(c) Definitions.--For purposes of this section--
``(1) Eligible contractor.--The term `eligible contractor'
means the person who constructed the new energy efficient home,
or in the case of a manufactured home which conforms to Federal
Manufactured Home Construction and Safety Standards (24 CFR
3280), the manufactured home producer of such home.
``(2) Energy efficient property.--The term `energy
efficient property' means any energy efficient building
envelope component, and any energy efficient heating or cooling
appliance.
``(3) Qualified new energy efficient home.--The term
`qualified new energy efficient home' means a dwelling--
``(A) located in the United States,
``(B) the construction of which is substantially
completed after December 31, 2001,
``(C) the original use of which is as a principal
residence (within the meaning of section 121) which
commences with the person who acquires such dwelling
from the eligible contractor, and
``(D) which is certified to have a level of annual
heating and cooling energy consumption that is at least
30 percent below the annual level of heating and
cooling energy consumption of a comparable dwelling
constructed in accordance with the standards of the
1998 International Energy Conservation Code.
``(4) Construction.--The term `construction' includes
reconstruction and rehabilitation.
``(5) Acquire.--The term `acquire' includes purchase and,
in the case of reconstruction and rehabilitation, such term
includes a binding written contract for such reconstruction or
rehabilitation.
``(6) Building envelope component.--The term `building
envelope component' means insulation material or system which
is specifically and primarily designed to reduce the heat loss
or gain of a dwelling when installed in or on such dwelling,
exterior windows (including skylights) and doors, and metal
roofs with appropriate pigmented coatings which are
specifically and primarily designed to reduce the heat gain of
a dwelling when installed in or on such dwelling.
``(7) Manufactured home included.--The term `dwelling'
includes a manufactured home conforming to Federal Manufactured
Home Construction and Safety Standards (24 CFR 3280).
``(d) Certification.--
``(1) Method.--A certification described in subsection
(c)(3)(D) shall be determined on the basis of one of the
following methods:
``(A) The technical specifications or applicable
ratings (including product labeling requirements) for
the measurement of energy efficiency for the energy
efficient building envelope component or energy
efficient heating or cooling appliance, based upon
energy use or building envelope component performance.
``(B) An energy performance measurement method that
utilizes computer software approved by organizations
designated by the Secretary.
``(2) Provider.--Such certification shall be provided by--
``(A) in the case of a method described in
paragraph (1)(A), a local building regulatory
authority, a utility, a manufactured home production
inspection primary inspection agency (IPIA), or an
accredited home energy rating systems provider who is
accredited by, or otherwise authorized to use, approved
energy performance measurement methods by the Home
Energy Ratings Systems Council or the National
Association of State Energy Officials, or
``(B) in the case of a method described in
paragraph (1)(B), an individual recognized by an
organization designated by the Secretary for such
purposes.
``(3) Form.--Such certification shall be made in writing in
a manner that specifies in readily verifiable fashion the
energy efficient building envelope components and energy
efficient heating or cooling appliances installed and their
respective energy efficiency levels, and in the case of a
method described in subparagraph (B) of paragraph (1),
accompanied by written analysis documenting the proper
application of a permissible energy performance measurement
method to the specific circumstances of such dwelling.
``(4) Regulations.--
``(A) In general.--In prescribing regulations under
this subsection for energy performance measurement
methods, the Secretary shall prescribe procedures for
calculating annual energy costs for heating and cooling
and cost savings and for the reporting of the results.
Such regulations shall--
``(i) be based on the National Home Energy
Rating Technical Guidelines of the National
Association of State Energy Officials, the Home
Energy Rating Guidelines of the Home Energy
Rating Systems Council, or the modified 1998
California Residential ACM manual,
``(ii) provide that any calculation
procedures be developed such that the same
energy efficiency measures allow a home to
qualify for the credit under this section
regardless of whether the house uses a gas or
oil furnace or boiler or an electric heat pump,
and
``(iii) require that any computer software
allow for the printing of the Federal tax forms
necessary for the credit under this section and
explanations for the homebuyer of the energy
efficient features that were used to comply
with the requirements of this section.
``(B) Providers.--For purposes of paragraph (2)(B),
the Secretary shall establish requirements for the
designation of individuals based on the requirements
for energy consultants and home energy raters specified
by the National Association of State Energy Officials.
``(e) Basis Adjustment.--For purposes of this subtitle, if a credit
is allowed under this section for any expenditure with respect to any
property, the increase in the basis of such property which would (but
for this subsection) result from such expenditure shall be reduced by
the amount of the credit so allowed.
``(f) Application of Section.--Subsection (a) shall apply to
dwellings purchased during the period beginning on January 1, 2002, and
ending on December 31, 2006.''.
(b) Credit Made Part of General Business Credit.--Subsection (b) of
section 38 (relating to current year business credit) 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 thereof the following new paragraph:
``(17) the new energy efficient home credit determined
under section 45H.''.
(c) Denial of Double Benefit.--Section 280C (relating to certain
expenses for which credits are allowable) is amended by adding at the
end thereof the following new subsection:
``(d) New Energy Efficient Home Expenses.--No deduction shall be
allowed for that portion of expenses for a new energy efficient home
otherwise allowable as a deduction for the taxable year which is equal
to the amount of the credit determined for such taxable year under
section 45H.''.
(d) Limitation on Carryback.--Subsection (d) of section 39 is
amended by adding at the end the following new paragraph:
``(12) No carryback of new energy efficient home credit
before effective date.--No portion of the unused business
credit for any taxable year which is attributable to the credit
determined under section 45H may be carried back to any taxable
year ending before January 1, 2002.''.
(e) Deduction for Certain Unused Business Credits.--Subsection (c)
of section 196 is amended by striking ``and'' at the end of paragraph
(9), by striking the period at the end of paragraph (10) and inserting
``, and'', and by adding after paragraph (10) the following new
paragraph:
``(11) the new energy efficient home credit determined
under section 45H.''.
(f) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amended by inserting after the
item relating to section 45G the following new item:
``Sec. 45H. New energy efficient home
credit.''.
(g) Effective Date.--The amendments made by this section shall
apply to taxable years ending after December 31, 2001.
SEC. 3110. ALLOWANCE OF DEDUCTION FOR ENERGY EFFICIENT COMMERCIAL
BUILDING PROPERTY.
(a) In General.--Part VI of subchapter B of chapter 1 (relating to
itemized deductions for individuals and corporations) is amended by
inserting after section 179A the following new section:
``SEC. 179B. DEDUCTION FOR ENERGY EFFICIENT COMMERCIAL BUILDING
PROPERTY.
``(a) Allowance of Deduction.--
``(1) In general.--There shall be allowed as a deduction an
amount equal to energy efficient commercial building property
expenditures made by a taxpayer for the taxable year.
``(2) Maximum amount of deduction.--The amount of energy
efficient commercial building property expenditures taken into
account under paragraph (1) shall not exceed an amount equal to
the product of--
``(A) $2.25, and
``(B) the square footage of the building with
respect to which the expenditures are made.
``(3) Year deduction allowed.--The deduction under
paragraph (1) shall be allowed for the taxable year in which
the building is placed in service.
``(b) Energy Efficient Commercial Building Property Expenditures.--
For purposes of this section, the term `energy efficient commercial
building property expenditures' means an amount paid or incurred for
energy efficient commercial building property installed on or in
connection with new construction or reconstruction of property--
``(1) for which depreciation is allowable under section
167,
``(2) which is located in the United States, and
``(3) the construction or erection of which is completed by
the taxpayer.
Such property includes all residential rental property, including low-
rise multifamily structures and single family housing property which is
not within the scope of Standard 90.1-1999 (described in subsection
(c)). Such term includes expenditures for labor costs properly
allocable to the onsite preparation, assembly, or original installation
of the property.
``(c) Energy Efficient Commercial Building Property.--For purposes
of subsection (b)--
``(1) In general.--The term `energy efficient commercial
building property' means any property which reduces total
annual energy and power costs with respect to the lighting,
heating, cooling, ventilation, and hot water supply systems of
the building by 50 percent or more in comparison to a reference
building which meets the requirements of Standard 90.1-1999 of
the American Society of Heating, Refrigerating, and Air
Conditioning Engineers and the Illuminating Engineering Society
of North America using methods of calculation under paragraph
(2) and certified by qualified professionals as provided under
subsection (f).
``(2) Methods of calculation.--The Secretary, in
consultation with the Secretary of Energy, shall promulgate
regulations which describe in detail methods for calculating
and verifying energy and power consumption and cost, taking
into consideration the provisions of the 1998 California
Nonresidential ACM Manual. These procedures shall meet the
following requirements:
``(A) In calculating tradeoffs and energy
performance, the regulations shall prescribe the costs
per unit of energy and power, such as kilowatt hour,
kilowatt, gallon of fuel oil, and cubic foot or Btu of
natural gas, which may be dependent on time of usage.
``(B) The calculational methodology shall require
that compliance be demonstrated for a whole building.
If some systems of the building, such as lighting, are
designed later than other systems of the building, the
method shall provide that either--
``(i) the expenses taken into account under
subsection (a) shall not occur until the date
designs for all energy-using systems of the
building are completed,
``(ii) the energy performance of all
systems and components not yet designed shall
be assumed to comply minimally with the
requirements of such Standard 90.1-1999, or
``(iii) the expenses taken into account
under subsection (a) shall be a fraction of
such expenses based on the performance of less
than all energy-using systems in accordance
with subparagraph (C).
``(C) The expenditures in connection with the
design of subsystems in the building, such as the
envelope, the heating, ventilation, air conditioning
and water heating system, and the lighting system shall
be allocated to the appropriate building subsystem
based on system-specific energy cost savings targets in
regulations promulgated by the Secretary of Energy
which are equivalent, using the calculation
methodology, to the whole building requirement of 50
percent savings.
``(D) The calculational methods under this
subparagraph need not comply fully with section 11 of
such Standard 90.1-1999.
``(E) The calculational methods shall be fuel
neutral, such that the same energy efficiency features
shall qualify a building for the deduction under this
subsection regardless of whether the heating source is
a gas or oil furnace or an electric heat pump.
``(F) The calculational methods shall provide
appropriate calculated energy savings for design
methods and technologies not otherwise credited in
either such Standard 90.1-1999 or in the 1998
California Nonresidential ACM Manual, including the
following:
``(i) Natural ventilation.
``(ii) Evaporative cooling.
``(iii) Automatic lighting controls such as
occupancy sensors, photocells, and timeclocks.
``(iv) Daylighting.
``(v) Designs utilizing semi-conditioned
spaces that maintain adequate comfort
conditions without air conditioning or without
heating.
``(vi) Improved fan system efficiency,
including reductions in static pressure.
``(vii) Advanced unloading mechanisms for
mechanical cooling, such as multiple or
variable speed compressors.
``(viii) The calculational methods may take
into account the extent of commissioning in the
building, and allow the taxpayer to take into
account measured performance that exceeds
typical performance.
``(3) Computer software.--
``(A) In general.--Any calculation under this
subsection shall be prepared by qualified computer
software.
``(B) Qualified computer software.--For purposes of
this paragraph, the term `qualified computer software'
means software--
``(i) for which the software designer has
certified that the software meets all
procedures and detailed methods for calculating
energy and power consumption and costs as
required by the Secretary,
``(ii) which provides such forms as
required to be filed by the Secretary in
connection with energy efficiency of property
and the deduction allowed under this section,
and
``(iii) which provides a notice form which
summarizes the energy efficiency features of
the building and its projected annual energy
costs.
``(d) Allocation of Deduction for Public Property.--In the case of
energy efficient commercial building property installed on or in public
property, the Secretary shall promulgate a regulation to allow the
allocation of the deduction to the person primarily responsible for
designing the property in lieu of the public entity which is the owner
of such property. Such person shall be treated as the taxpayer for
purposes of this section.
``(e) Notice to Owner.--The qualified individual shall provide an
explanation to the owner of the building regarding the energy
efficiency features of the building and its projected annual energy
costs as provided in the notice under subsection (c)(3)(B)(iii).
``(f) Certification.--The Secretary, in consultation with the
Secretary of Energy, shall establish requirements for certification and
compliance procedures similar to the procedures under section 45H(d).
``(g) Basis Reduction.--For purposes of this title, the basis of
any property shall be reduced by the amount of the deduction with
respect to such property which is allowed by subsection (a).
``(h) Termination.--This section shall not apply to property placed
in service after December 31, 2006.''.
(b) Conforming Amendments.--
(1) Section 1016(a) is amended by striking ``and'' at the
end of paragraph (31), by striking the period at the end of
paragraph (32) and inserting ``, and'', and by inserting the
following new paragraph:
``(33) to the extent provided in section 179B(g).''.
(2) Section 1245(a) is amended by inserting ``179B,'' after
``179A,'' both places it appears in paragraphs (2)(C) and
(3)(C).
(3) Section 1250(b)(3) is amended by inserting before the
period at the end of the first sentence ``or by section 179B''.
(4) Section 263(a)(1) is amended by striking ``or'' at the
end of subparagraph (G), by striking the period at the end of
subparagraph (H) and inserting ``, or'', and by inserting after
subparagraph (H) the following new subparagraph:
``(I) expenditures for which a deduction is allowed
under section 179B.''.
(5) Section 312(k)(3)(B) is amended by striking ``or 179A''
each place it appears in the heading and text and inserting ``,
179A, or 179B''.
(c) Clerical Amendment.--The table of sections for part VI of
subchapter B of chapter 1 is amended by adding after section 179A the
following new item:
``Sec. 179B. Deduction for energy
efficient commercial building
property.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.
SEC. 3111. ALLOWANCE OF DEDUCTION FOR QUALIFIED ENERGY MANAGEMENT
DEVICES AND RETROFITTED QUALIFIED METERS.
(a) In General.--Part VI of subchapter B of chapter 1 (relating to
itemized deductions for individuals and corporations) is amended by
inserting after section 179B the following new section:
``SEC. 179C. DEDUCTION FOR QUALIFIED ENERGY MANAGEMENT DEVICES AND
RETROFITTED METERS.
``(a) Allowance of Deduction.--In the case of a taxpayer who is a
supplier of electric energy or natural gas or a provider of electric
energy or natural gas services, there shall be allowed as a deduction
an amount equal to the cost of each qualified energy management device
placed in service during the taxable year.
``(b) Maximum Deduction.--The deduction allowed by this section
with respect to each qualified energy management device shall not
exceed $30.
``(c) Qualified Energy Management Device.--The term `qualified
energy management device' means any tangible property to which section
168 applies if such property is a meter or metering device--
``(1) which is acquired and used by the taxpayer to enable
consumers to manage their purchase or use of electricity or
natural gas in response to energy price and usage signals, and
``(2) which permits reading of energy price and usage
signals on at least a daily basis.
``(d) Property Used Outside the United States Not Qualified.--No
deduction shall be allowed under subsection (a) with respect to
property which is used predominantly outside the United States or with
respect to the portion of the cost of any property taken into account
under section 179.
``(e) Basis Reduction.--
``(1) In general.--For purposes of this title, the basis of
any property shall be reduced by the amount of the deduction
with respect to such property which is allowed by subsection
(a).
``(2) Ordinary income recapture.--For purposes of section
1245, the amount of the deduction allowable under subsection
(a) with respect to any property that is of a character subject
to the allowance for depreciation shall be treated as a
deduction allowed for depreciation under section 167.''.
(b) Conforming Amendments.--
(1) Section 263(a)(1) is amended by striking ``or'' at the
end of subparagraph (H), by striking the period at the end of
subparagraph (I) and inserting ``, or'', and by inserting after
subparagraph (I) the following new subparagraph:
``(J) expenditures for which a deduction is allowed
under section 179C.''.
(2) Section 312(k)(3)(B) is amended by striking ``or 179B''
each place it appears in the heading and text and inserting ``,
179B, or 179C''.
(3) Section 1016(a) is amended by striking ``and'' at the
end of paragraph (32), by striking the period at the end of
paragraph (33) and inserting ``, and'', and by inserting after
paragraph (33) the following new paragraph:
``(34) to the extent provided in section 179C(e)(1).''.
(4) Section 1245(a) is amended by inserting ``179C,'' after
``179B,'' both places it appears in paragraphs (2)(C) and
(3)(C).
(5) The table of contents for subpart B of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 179B the following new item:
``Sec. 179C. Deduction for qualified
energy management devices and
retrofitted meters.''.
(c) Effective Date.--The amendments made by this section shall
apply to qualified energy management devices placed in service after
the date of the enactment of this Act.
SEC. 3112. THREE-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF
QUALIFIED ENERGY MANAGEMENT DEVICES.
(a) In General.--Subparagraph (A) of section 168(e)(3) (relating to
classification of property) 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 new clause:
``(iv) any qualified energy management
device.''.
(b) Definition of Qualified Energy Management Device.--Section
168(i) (relating to definitions and special rules) is amended by
inserting at the end the following new paragraph:
``(15) Qualified energy management device.--The term
`qualified energy management device' means any qualified energy
management device as defined in section 179C(c) which is placed
in service by a taxpayer who is a supplier of electric energy
or natural gas or a provider of electric energy or natural gas
services.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
SEC. 3113. ENERGY CREDIT FOR COMBINED HEAT AND POWER SYSTEM PROPERTY.
(a) In General.--Subparagraph (A) of section 48(a)(3) (defining
energy property) is amended by striking ``or'' at the end of clause
(ii), by adding ``or'' at the end of clause (iii), and by inserting
after clause (iii) the following new clause:
``(iv) combined heat and power system
property,''.
(b) Combined Heat and Power System Property.--Subsection (a) of
section 48 is amended by redesignating paragraphs (5) and (6) as
paragraphs (6) and (7), respectively, and by inserting after paragraph
(4) the following new paragraph:
``(5) Combined heat and power system property.--For
purposes of this subsection--
``(A) Combined heat and power system property.--The
term `combined heat and power system property' means
property comprising a system--
``(i) which uses the same energy source for
the simultaneous or sequential generation of
electrical power, mechanical shaft power, or
both, in combination with the generation of
steam or other forms of useful thermal energy
(including heating and cooling applications),
``(ii) which has an electrical capacity of
more than 50 kilowatts or a mechanical energy
capacity of more than 67 horsepower or an
equivalent combination of electrical and
mechanical energy capacities,
``(iii) which produces--
``(I) at least 20 percent of its
total useful energy in the form of
thermal energy, and
``(II) at least 20 percent of its
total useful energy in the form of
electrical or mechanical power (or
combination thereof),
``(iv) the energy efficiency percentage of
which exceeds 60 percent (70 percent in the
case of a system with an electrical capacity in
excess of 50 megawatts or a mechanical energy
capacity in excess of 67,000 horsepower, or an
equivalent combination of electrical and
mechanical energy capacities), and
``(v) which is placed in service after
December 31, 2001, and before January 1, 2007.
``(B) Special rules.--
``(i) Energy efficiency percentage.--For
purposes of subparagraph (A)(iv), the energy
efficiency percentage of a system is the
fraction--
``(I) the numerator of which is the
total useful electrical, thermal, and
mechanical power produced by the system
at normal operating rates, and
``(II) the denominator of which is
the lower heating value of the primary
fuel source for the system.
``(ii) Determinations made on btu basis.--
The energy efficiency percentage and the
percentages under subparagraph (A)(iii) shall
be determined on a Btu basis.
``(iii) Input and output property not
included.--The term `combined heat and power
system property' does not include property used
to transport the energy source to the facility
or to distribute energy produced by the
facility.
``(iv) Public utility property.--
``(I) Accounting rule for public
utility property.--If the combined heat
and power system property is public
utility property (as defined in section
168(i)(1)), the taxpayer may only claim
the credit under the subsection if,
with respect to such property, the
taxpayer uses a normalization method of
accounting.
``(II) Certain exception not to
apply.--The matter in paragraph (3)
which follows subparagraph (D) shall
not apply to combined heat and power
system property.
``(C) Extension of depreciation recovery period.--
If a taxpayer is allowed credit under this section for
combined heat and power system property and such
property would (but for this subparagraph) have a class
life of 15 years or less under section 168, such
property shall be treated as having a 22-year class
life for purposes of section 168.''.
(c) No Carryback of Energy Credit Before Effective Date.--
Subsection (d) of section 39 is amended by adding at the end the
following new paragraph:
``(13) No carryback of energy credit before effective
date.--No portion of the unused business credit for any taxable
year which is attributable to the energy credit with respect to
property described in section 48(a)(5) may be carried back to a
taxable year ending before January 1, 2002.''.
(d) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2001.
SEC. 3114. NEW NONREFUNDABLE PERSONAL CREDITS ALLOWED AGAINST REGULAR
AND MINIMUM TAXES.
(a) In General.--Paragraph (1) of section 26(a) is amended by
striking ``and 25B'' and inserting ``25B, 25C, 25D, and 25E''.
(b) Conforming Amendments.--
(1) Section 24(b)(3)(B) is amended by striking ``and 25B''
and inserting ``, 25B, 25C, 25D, and 25E''.
(2) Section 25(e)(1)(C) is amended by inserting ``25C, 25D,
and 25E'' after ``25B,''.
(3) Section 25B(g)(2) is amended by striking ``section 23''
and inserting ``sections 23, 25C, 25D, and 25E''.
(4) Section 904(h) is amended by striking ``and 25B'' and
inserting ``25B, 25C, 25D, and 25E''.
(5) Section 1400C(d) is amended by striking ``and 25B'' and
inserting ``25B, 25C, 25D, and 25E''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.
SEC. 3115. PHASEOUT OF 4.3-CENT MOTOR FUEL EXCISE TAXES ON RAILROADS
AND INLAND WATERWAY TRANSPORTATION WHICH REMAIN IN
GENERAL FUND.
(a) Taxes on Trains.--
(1) In general.--Clause (ii) of section 4041(a)(1)(C) is
amended by striking subclauses (I), (II), and (III) and
inserting the following new subclauses:
``(I) 3.3 cents per gallon after
September 30, 2001, and before January
1, 2005,
``(II) 2.3 cents per gallon after
December 31, 2004, and before January
1, 2007,
``(III) 1.3 cents per gallon after
December 31, 2006, and before January
1, 2009,
``(IV) 0.3 cent per gallon after
December 31, 2008, and before January
1, 2010, and
``(V) 0 after December 31, 2009.''.
(2) Conforming amendments.--
(A) Subsection (d) of section 4041 is amended by
redesignating paragraph (3) as paragraph (4) and by
inserting after paragraph (2) the following new
paragraph:
``(3) Diesel fuel used in trains.--In the case of any sale
for use (or use) after September 30, 2010, there is hereby
imposed a tax of 0.1 cent per gallon on any liquid other than
gasoline (as defined in section 4083)--
``(A) sold by any person to an owner, lessee, or
other operator of a diesel-powered train for use as a
fuel in such train, or
``(B) used by any person as a fuel in a diesel-
powered train unless there was a taxable sale of such
fuel under subparagraph (A).
No tax shall be imposed by this paragraph on the sale or use of
any liquid if tax was imposed on such liquid under section
4081.''.
(B) Subsection (f) of section 4082 is amended by
striking ``section 4041(a)(1)'' and inserting
``subsections (a)(1) and (d)(3) of section 4041''.
(C) Subparagraph (B) of section 6421(f)(3) is
amended to read as follows:
``(B) so much of the rate specified in section
4081(a)(2)(A) as does not exceed the rate applicable
under section 4041(a)(1)(C)(ii).''.
(D) Subparagraph (B) of section 6427(l)(3) is
amended to read as follows:
``(B) so much of the rate specified in section
4081(a)(2)(A) as does not exceed the rate applicable
under section 4041(a)(1)(C)(ii).''.
(b) Fuel Used on Inland Waterways.--Subparagraph (C) of section
4042(b)(2) is amended to read as follows:
``(C) The deficit reduction rate is--
``(i) 3.3 cents per gallon after September
30, 2001, and before January 1, 2005,
``(ii) 2.3 cents per gallon after December
31, 2004, and before January 1, 2007,
``(iii) 1.3 cents per gallon after December
31, 2006, and before January 1, 2009,
``(iv) 0.3 cent per gallon after December
31, 2008, and before January 1, 2010, and
``(v) 0 after December 31, 2009.''.
(c) Effective Date.--The amendments made by this section shall take
effect on October 1, 2001.
SEC. 3116. REDUCED MOTOR FUEL EXCISE TAX ON CERTAIN MIXTURES OF DIESEL
FUEL.
(a) In General.--Clause (iii) of section 4081(a)(2)(A) is amended
by inserting before the period ``(19.7 cents per gallon in the case of
a diesel-water fuel emulsion at least 14 percent of which is water)''.
(b) Refunds for Tax-Paid Purchases.--
(1) In general.--Section 6427 is amended by redesignating
subsections (m) through (p) as subsections (n) through (q),
respectively, and by inserting after subsection (l) the
following new subsection:
``(m) Diesel Fuel Used To Produce Emulsion.--
``(1) In general.--Except as provided in subsection (k), if
any diesel fuel on which tax was imposed by section 4081 at the
regular tax rate is used by any person in producing an emulsion
described in section 4081(a)(2)(A) which is sold or used in
such person's trade or business, the Secretary shall pay
(without interest) to such person an amount equal to the excess
of the regular tax rate over the incentive tax rate with
respect to such fuel.
``(2) Definitions.--For purposes of paragraph (1)--
``(A) Regular tax rate.--The term `regular tax
rate' means the aggregate rate of tax imposed by
section 4081 determined without regard to the
parenthetical in section 4081(a)(2)(A).
``(B) Incentive tax rate.--The term `incentive tax
rate' means the aggregate rate of tax imposed by
section 4081 determined with regard to the
parenthetical in section 4081(a)(2)(A).''.
(c) Effective Date.--The amendments made by this section shall take
effect on October 1, 2001.
SEC. 3117. CREDIT FOR INVESTMENT IN QUALIFYING ADVANCED CLEAN COAL
TECHNOLOGY.
(a) Allowance of Qualifying Advanced Clean Coal Technology Facility
Credit.--Section 46 (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 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 (relating to
rules for computing investment credit) is amended by inserting after
section 48 the following:
``SEC. 48A. 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
this section--
``(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.
``(d) Clean Coal Technology.--For purposes of this section, 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 after December 31, 2011.
``(l) National Limitation.--
``(1) In general.--Notwithstanding any other provision of
this section, the term `qualifying advanced clean coal
technology facility' shall include such a facility only to the
extent that such facility is allocated a portion of the
national megawatt limitation under this subsection.
``(2) National megawatt limitation.--The national megawatt
limitation under this subsection is 7,500 megawatts.
``(3) Allocation of limitation.--The national megawatt
limitation shall be allocated by the Secretary under rules
prescribed by the Secretary. Not later than 6 months after the
date of the enactment of this subsection, the Secretary shall
prescribe such regulations as may be necessary or appropriate
to carry out the purposes of this section, including
regulations--
``(A) to limit which facility qualifies as
`qualified advanced clean coal technology' in
subsection (c) to particular facilities, a portion of
particular facilities, or a portion of the production
from particular facilities, so that when all such
facilities (or portions thereof) are placed in service
over the ten year period in section (k), the
combination of facilities approved for tax credits
(and/or portions of facilities approved for tax
credits) will not exceed a combined capacity of 7,500
megawatts;
``(B) to provide a certification process in
consultation with the Secretary of Energy under
subsection (g) that will approve and allocate the 7,500
megawatts of available tax credits authority--
``(i) to encourage that facilities with the
highest thermal efficiencies and environmental
performance be placed in service as soon as
possible;
``(ii) to allocate credits to taxpayers
that have a definite and credible plan for
placing into commercial operation a qualifying
advanced clean coal technology facility,
including--
``(I) a site,
``(II) contractual commitments for
procurement and construction,
``(III) filings for all necessary
preconstruction approvals,
``(IV) a demonstrated record of
having successfully completed
comparable projects on a timely basis,
and
``(V) such other factors that the
Secretary shall determine are
appropriate;
``(iii) to allocate credits to a portion of
a facility (or a portion of the production from
a facility) if the Secretary determines that
such an allocation should maximize the amount
of efficient production encouraged with the
available tax credits;
``(C) to set progress requirements and conditional
approvals so that credits for approved projects that
become unlikely to meet the necessary conditions that
can be reallocated by the Secretary to other projects;
``(D) to reallocate credits that are not allocated
to 1 technology described in clauses (i) through (iv)
of subsection (c)(1)(A) because an insufficient number
of qualifying facilities requested credits for one
technology, to another technology described in another
subparagraph of subsection (c) in order to maximize the
amount of energy efficient production encouraged with
the available tax credits; and
``(E) to provide taxpayers with opportunities to
correct administrative errors and omissions with
respect to allocations and recordkeeping within a
reasonable period after their discovery, taking into
account the availability of regulations and other
administrative guidance from the Secretary.''.
(c) Recapture.--Section 50(a) (relating to other special rules) is
amended by adding at the end the following:
``(6) 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 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 advanced clean coal
technology facility (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 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 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
advanced clean coal technology facility.''.
(d) Transitional Rule.--Section 39(d) (relating to transitional
rules) is amended by adding at the end the following:
``(14) 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 advanced clean
coal technology facility credit determined under section 48A
may be carried back to a taxable year ending before January 1,
2002.''.
(e) Technical Amendments.--
(1) Section 49(a)(1)(C) 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 advanced clean coal technology
facility attributable to any qualified
investment (as defined by section 48A(c)).''.
(2) Section 50(a)(4) is amended by striking ``and (2)'' and
inserting ``, (2), and (6)''.
(3) Section 50(c) is amended by adding at the end the
following new paragraph:
``(6) Special rule for qualifying advanced clean coal
technology facilities.--Paragraphs (1) and (2) shall not apply
to any property with respect to the credit determined under
section 48A.''.
(4) The table of sections for subpart E of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 48 the following:
``Sec. 48A. 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 the enactment of the Revenue
Reconciliation Act of 1990).
SEC. 3118. 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
(relating to business related credits) is amended by adding after
section 45J the following:
``SEC. 45K. 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 48A shall have the meaning given such term
in section 48A.
``(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) is amended by
striking ``plus'' at the end of paragraph (18), by striking the period
at the end of paragraph (19) and inserting ``, plus'', and by adding at
the end the following:
``(20) the qualifying advanced clean coal technology
production credit determined under section 45K(a).''.
(c) Transitional Rule.--Section 39(d) (relating to transitional
rules) is amended by adding after paragraph (14) the following:
``(15) No carryback of section 45k 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 45K
may be carried back to a taxable year ending before the date of
the enactment of section 45K.''.
(d) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amended by adding at the end
the following:
``Sec. 45K. 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 the enactment of this Act.
TITLE II--RELIABILITY
SEC. 3201. NATURAL GAS GATHERING LINES TREATED AS 7-YEAR PROPERTY.
(a) In General.--Subparagraph (C) of section 168(e)(3) (relating to
classification of certain property) is amended by striking ``and'' at
the end of clause (i), by redesignating clause (ii) as clause (iii),
and by inserting after clause (i) the following new clause:
``(ii) any natural gas gathering line,
and''.
(b) Natural Gas Gathering Line.--Subsection (i) of section 168 is
amended by adding after paragraph (15) the following new paragraph:
``(16) Natural gas gathering line.--The term `natural gas
gathering line' means--
``(A) the pipe, equipment, and appurtenances
determined to be a gathering line by the Federal Energy
Regulatory Commission, or
``(B) the pipe, equipment, and appurtenances used
to deliver natural gas from the wellhead or a
commonpoint to the point at which such gas first
reaches--
``(i) a gas processing plant,
``(ii) an interconnection with a
transmission pipeline certificated by the
Federal Energy Regulatory Commission as an
interstate transmission pipeline,
``(iii) an interconnection with an
intrastate transmission pipeline, or
``(iv) a direct interconnection with a
local distribution company, a gas storage
facility, or an industrial consumer.''.
(c) Alternative System.--The table contained in section
168(g)(3)(B) is amended by inserting after the item relating to
subparagraph (C)(i) the following:
``(C)(ii)...................................................... 10''.
(d) Alternative Minimum Tax Exception.--Subparagraph (B) of section
56(a)(1) is amended by inserting before the period the following: ``or
in clause (ii) of section 168(e)(3)(C)''.
(e) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
SEC. 3202. NATURAL GAS DISTRIBUTION LINES TREATED AS 10-YEAR PROPERTY.
(a) In General.--Subparagraph (D) of section 168(e)(3) (relating to
classification of certain property) is amended by striking ``and'' at
the end of clause (i), by striking the period at the end of clause (ii)
and by inserting ``, and'', and by adding at the end the following new
clause:
``(iii) any natural gas distribution
line.''.
(b) Alternative System.--The table contained in section
168(g)(3)(B) is amended by inserting after the item relating to
subparagraph (D)(ii) the following:
``(D)(iii)..................................................... 20''.
(c) Alternative Minimum Tax Exception.--Subparagraph (B) of section
56(a)(1) is amended by inserting before the period the following: ``or
in clause (iii) of section 168(e)(3)(D)''.
(d) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
SEC. 3203. PETROLEUM REFINING PROPERTY TREATED AS 7-YEAR PROPERTY.
(a) In General.--Subparagraph (C) of section 168(e)(3) (relating to
classification of certain property), as amended by section 3201, is
amended by striking ``and'' at the end of clause (ii), by redesignating
clause (iii) as clause (iv), and by inserting after clause (ii) the
following new clause:
``(iii) any property used for the
distillation, fractionation, and catalytic
cracking of crude petroleum into gasoline and
its other components, and''.
(b) Alternative System.--The table contained in section
168(g)(3)(B), as amended by section 3201, is amended by inserting after
the item relating to subparagraph (C)(ii) the following:
``(C)(iii)..................................................... 10''.
(c) Alternative Minimum Tax Exception.--Subparagraph (B) of section
56(a)(1), as amended by section 3201, is amended by inserting ``or
(iii)'' after ``clause (ii)''.
(d) Effective Date.--The amendment made by this section shall apply
to property placed in service after the date of the enactment of this
Act.
SEC. 3204. EXPENSING OF CAPITAL COSTS INCURRED IN COMPLYING WITH
ENVIRONMENTAL PROTECTION AGENCY SULFUR REGULATIONS.
(a) In General.--Section 179(b) (relating to election to expense
certain depreciable business assets) is amended by adding at the end
the following new paragraph:
``(5) Limitation for small business refiners.--
``(A) In general.--In the case of a small business
refiner electing to expense qualified costs, in lieu of
the dollar limitations in paragraph (1), the limitation
on the aggregate costs which may be taken into account
under subsection (a) for any taxable year shall not
exceed 75 percent of the qualified costs.
``(B) Qualified costs.--For purposes of this
paragraph, the term `qualified costs' means costs paid
or incurred by a small business refiner for the purpose
of complying with the Highway Diesel Fuel Sulfur
Control Requirements of the Environmental Protection
Agency.
``(C) Small business refiner.--For purposes of this
paragraph, the term `small business refiner' means,
with respect to any taxable year, a refiner which,
within the refining operations of the business, employs
not more than 1,500 employees on business days during
such taxable year performing services in the refining
operations of such businesses and has an average total
capacity of 155,000 barrels per day or less.''.
(b) Effective Date.--The amendment made by this section shall apply
to expenses paid or incurred after the date of the enactment of this
Act.
SEC. 3205. ENVIRONMENTAL TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
(relating to business-related credits) is amended by adding at the end
the following new section:
``SEC. 45I. ENVIRONMENTAL TAX CREDIT.
``(a) In General.--For purposes of section 38, the amount of the
environmental tax credit determined under this section with respect to
any small business refiner for any taxable year is an amount equal to 5
cents for every gallon of 15 parts per million or less sulfur diesel
produced at a facility by such small business refiner.
``(b) Maximum Credit.--For any small business refiner, the
aggregate amount allowable as a credit under subsection (a) for any
taxable year with respect to any facility shall not exceed 25 percent
of the qualified capital costs incurred by such small business refiner
with respect to such facility not taken into account in determining the
credit under subsection (a) for any preceding taxable year.
``(c) Definitions.--For purposes of this section--
``(1) Small business refiner.--The term `small business
refiner' means, with respect to any taxable year, a refiner
which, within the refining operations of the business, employs
not more than 1,500 employees on business days during such
taxable year performing services in the refining operations of
such businesses and has an average total capacity of 155,000
barrels per day or less.
``(2) Qualified capital costs.--The term `qualified capital
costs' means, with respect to any facility, those costs paid or
incurred during the applicable period for compliance with the
applicable EPA regulations with respect to such facility,
including expenditures for the construction of new process
operation units or the dismantling and reconstruction of
existing process units to be used in the production of 15 parts
per million or less sulfur diesel fuel, associated adjacent or
offsite equipment (including tankage, catalyst, and power
supply), engineering, construction period interest, and
sitework.
``(3) Applicable epa regulations.--The term `applicable EPA
regulations' means the Highway Diesel Fuel Sulfur Control
Requirements of the Environmental Protection Agency.
``(4) Applicable period.--The term `applicable period'
means, with respect to any facility, the period beginning on
the day after the date of the enactment of this section and
ending with the date which is 1 year after the date on which
the taxpayer must comply with the applicable EPA regulations
with respect to such facility.
``(d) Reduction in Basis.--For purposes of this subtitle, if a
credit is determined under this section with respect to any property by
reason of qualified capital costs, the basis of such property shall be
reduced by the amount of the credit so determined.
``(e) Certification.--
``(1) Required.--Not later than the date which is 30 months
after the first day of the first taxable year in which the
environmental tax credit is allowed with respect to a facility,
the small business refiner must obtain certification from the
Secretary, in consultation with the Administrator of the
Environmental Protection Agency, that the taxpayer's qualified
capital costs with respect to such facility will result in
compliance with the applicable EPA regulations.
``(2) Contents of application.--An application for
certification shall include relevant information regarding unit
capacities and operating characteristics sufficient for the
Secretary, in consultation with the Administrator of the
Environmental Protection Agency, to determine that such
qualified capital costs are necessary for compliance with the
applicable EPA regulations.
``(3) Review period.--Any application shall be reviewed and
notice of certification, if applicable, shall be made within 60
days of receipt of such application.
``(4) Recapture.--Notwithstanding subsection (f), failure
to obtain certification under paragraph (1) constitutes a
recapture event under subsection (f) with an applicable
percentage of 100 percent.
``(f) Recapture of Environmental Tax Credit.--
``(1) In general.--Except as provided in subsection (e),
if, as of the close of any taxable year, there is a recapture
event with respect to any facility of the small business
refiner, then the tax of such refiner under this chapter for
such taxable year shall be increased by an amount equal to the
product of--
``(A) the applicable recapture percentage, and
``(B) the aggregate decrease in the credits allowed
under section 38 for all prior taxable years which
would have resulted if the qualified capital costs of
the taxpayer described in subsection (c)(2) with
respect to such facility had been zero.
``(2) Applicable recapture percentage.--
``(A) In general.--For purposes of this subsection,
the applicable recapture percentage shall be determined
from the following table:
The applicable
recapture
``If the recapture event occurs in:
percentage is:
Year 1............................... 100
Year 2............................... 80
Year 3............................... 60
Year 4............................... 40
Year 5............................... 20
Years 6 and thereafter............... 0.
``(B) Years.--For purposes of subparagraph (A),
year 1 shall begin on the first day of the taxable year
in which the qualified capital costs with respect to a
facility described in subsection (c)(2) are paid or
incurred by the taxpayer.
``(3) Recapture event defined.--For purposes of this
subsection, the term `recapture event' means--
``(A) Failure to comply.--The failure by the small
business refiner to meet the applicable EPA regulations
within the applicable period with respect to the
facility.
``(B) Cessation of operation.--The cessation of the
operation of the facility as a facility which produces
15 parts per million or less sulfur diesel after the
applicable period.
``(C) Change in ownership.--
``(i) In general.--Except as provided in
clause (ii), the disposition of a small
business refiner's interest in the facility
with respect to which the credit described in
subsection (a) was allowable.
``(ii) Agreement to assume recapture
liability.--Clause (i) shall not apply if the
person acquiring such interest in the facility
agrees in writing to assume the recapture
liability of the person disposing of such
interest in effect immediately before such
disposition. In the event of such an
assumption, the person acquiring the interest
in the facility shall be treated as the
taxpayer for purposes of assessing any
recapture liability (computed as if there had
been no change in ownership).
``(4) Special rules.--
``(A) Tax benefit rule.--The tax for the taxable
year shall be increased under paragraph (1) only with
respect to credits allowed by reason of this section
which were used to reduce tax liability. In the case of
credits not so used to reduce tax liability, the
carryforwards and carrybacks under section 39 shall be
appropriately adjusted.
``(B) No credits against tax.--Any increase in tax
under this subsection shall not be treated as a tax
imposed by this chapter for purposes of determining the
amount of any credit under this chapter or for purposes
of section 55.
``(C) No recapture by reason of casualty loss.--The
increase in tax under this subsection shall not apply
to a cessation of operation of the facility by reason
of a casualty loss to the extent such loss is restored
by reconstruction or replacement within a reasonable
period established by the Secretary.
``(g) Controlled Groups.--For purposes of this section, all persons
treated as a single employer under subsection (b), (c), (m), or (o) of
section 414 shall be treated as a single employer.''.
(b) Credit Made Part of General Business Credit.--Subsection (b) of
section 38 (relating to general business credit) is amended by striking
``plus'' at the end of paragraph (16), by striking the period at the
end of paragraph (17) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(18) in the case of a small business refiner, the
environmental tax credit determined under section 45I(a).''.
(c) Denial of Double Benefit.--Section 280C (relating to certain
expenses for which credits are allowable) is amended by adding after
subsection (d) the following new subsection:
``(e) Environmental Tax Credit.--No deduction shall be allowed for
that portion of the expenses otherwise allowable as a deduction for the
taxable year which is equal to the amount of the credit determined for
the taxable year under section 45I(a).''.
(d) Basis Adjustment.--Section 1016(a) (relating to adjustments to
basis) is amended by striking ``and'' at the end of paragraph (33), by
striking the period at the end of paragraph (34) and inserting ``,
and'', and by adding at the end the following new paragraph:
``(35) in the case of a facility with respect to which a
credit was allowed under section 45I, to the extent provided in
section 45I(d).''.
(e) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amended by adding at the end
the following new item:
``Sec. 45I. Environmental tax credit.''.
(f) Effective Date.--The amendments made by this section shall
apply to expenses paid or incurred after the date of the enactment of
this Act.
SEC. 3206. DETERMINATION OF SMALL REFINER EXCEPTION TO OIL DEPLETION
DEDUCTION.
(a) In General.--Paragraph (4) of section 613A(d) (relating to
certain refiners excluded) is amended to read as follows:
``(4) Certain refiners excluded.--If the taxpayer or a
related person engages in the refining of crude oil, subsection
(c) shall not apply to the taxpayer for a taxable year if the
average daily refinery runs of the taxpayer and the related
person for the taxable year exceed 75,000 barrels. For purposes
of this paragraph, the average daily refinery runs for any
taxable year shall be determined by dividing the aggregate
refinery runs for the taxable year by the number of days in the
taxable year.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2001.
SEC. 3207. TAX-EXEMPT BOND FINANCING OF CERTAIN ELECTRIC FACILITIES.
(a) In General.--Subpart A of part IV of subchapter B of chapter 1
(relating to tax exemption requirements for State and local bonds) is
amended by inserting after section 141 the following new section:
``SEC. 141A. TREATMENT OF GOVERNMENT-OWNED ELECTRIC OUTPUT FACILITIES.
``(a) Exceptions From Private Business Use Limitations Where Open
Access Requirements Met.--
``(1) General rule.--For purposes of this part, the term
`private business use' shall not include--
``(A) any permitted open access activity by a
governmental unit with respect to an electric output
facility owned by such unit, or
``(B) any permitted sale of electricity by a
governmental unit which is generated at an existing
generation facility owned by such unit.
``(2) Permitted open access activity.--For purposes of this
section--
``(A) In general.--The term `permitted open access
activity' means any activity meeting the open access
requirements of any of the following clauses with
respect to such electric output facility:
``(i) Transmission and ancillary
facility.--In the case of a transmission
facility or a facility providing ancillary
services, the provision of transmission service
and ancillary services meets the open access
requirements of this clause only if such
services are provided on a nondiscriminatory
open access basis--
``(I) pursuant to an open access
transmission tariff filed with and
approved by FERC, including an
acceptable reciprocity tariff, or
``(II) under a regional
transmission organization agreement
approved by FERC.
``(ii) Distribution facilities.--In the
case of a distribution facility, the delivery
of electric energy meets the open access
requirements of this clause only if such
delivery is made on a nondiscriminatory open
access basis.
``(iii) Generation facilities.--In the case
of a generation facility, the delivery of
electric energy generated by such facility
meets the open access requirements of this
clause only if--
``(I) such facility is directly
connected to distribution facilities
owned by the governmental unit which
owns the generation facility, and
``(II) such distribution facilities
meet the open access requirements of
clause (ii).
``(B) Special rules.--
``(i) Voluntarily filed tariffs.--
Subparagraph (A)(i)(I) shall apply in the case
of a voluntarily filed tariff only if the
governmental unit files a report with FERC
within 90 days after the date of the enactment
of this section relating to whether or not such
governmental unit will join a regional
transmission organization.
``(ii) Control of transmission facilities
by regional transmission organization.--A
governmental unit shall be treated as meeting
the open access requirements of subparagraph
(A)(i) if a regional transmission organization
controls the transmission facilities.
``(iii) ERCOT utility.--References to FERC
in subparagraph (A) shall be treated as
references to the Public Utility Commission of
Texas with respect to any ERCOT utility (as
defined in section 212(k)(2)(B) of the Federal
Power Act (16 U.S.C. 824k(k)(2)(B))).
``(3) Permitted sale.--For purposes of this subsection--
``(A) In general.--The term `permitted sale'
means--
``(i) any sale of electricity to an on-
system purchaser if the seller meets the open
access requirements of paragraph (2) with
respect to all distribution and transmission
facilities (if any) owned by such seller, and
``(ii) subject to subparagraphs (B) and
(C), any sale of electricity to a wholesale
native load purchaser, and any load loss sale,
if--
``(I) the seller meets the open
access requirements of paragraph (2)
with respect to all transmission
facilities (if any) owned by such
seller, or
``(II) in any case in which the
seller does not own any transmission
facilities, all persons providing
transmission services to the seller's
wholesale native load purchasers meet
the open access requirements of
paragraph (2) with respect to all
transmission facilities owned by such
persons.
``(B) Limitation on sales to wholesale native load
purchasers.--A sale to a wholesale native load
purchaser shall be treated as a permitted sale only to
the extent that--
``(i) such purchaser resells the
electricity directly at retail to persons
within the purchaser's distribution area, or
``(ii) such electricity is resold by such
purchaser through one or more wholesale
purchasers (each of whom as of June 30, 2000,
was a party to a requirements contract or a
firm power contract described in paragraph
(5)(B)(ii)) to retail purchasers in the
ultimate wholesale purchaser's distribution
area.
``(C) Load loss sales.--
``(i) In general.--The term `load loss
sale' means any sale at wholesale to the extent
that--
``(I) the aggregate sales at
wholesale during the recovery period
does not exceed the load loss
mitigation sales limit for such period,
and
``(II) the aggregate sales at
wholesale during the first calendar
year after the recovery period does not
exceed the excess carried under clause
(iv) to such year.
``(ii) Load loss mitigation sales limit.--
For purposes of clause (i), the load loss
mitigation sales limit for the recovery period
is the sum of the annual load losses for each
year of such period.
``(iii) Annual load loss.--A governmental
unit's annual load loss for each year of the
recovery period is the amount (if any) by
which--
``(I) the megawatt hours of
electric energy sold during such year
to wholesale native load purchasers
which do not constitute private
business use are less than
``(III) the megawatt hours of
electric energy sold during the base
year to wholesale native load
purchasers which do not constitute
private business use.
The annual load loss for any year shall not
exceed the portion of the amount determined
under the preceding sentence which is
attributable to open access requirements.
``(iv) Carryovers.--If the limitation under
clause (i) for the recovery period exceeds the
aggregate sales during such period which are
taken into account under clause (i), such
excess (but not more than 10 percent of such
limitation) may be carried over to the first
calendar year following the recovery period.
``(v) Recovery period.--The recovery period
is the 7-year period beginning with the start-
up year.
``(vi) Start-up year.--The start-up year is
the calendar year which includes the date of
the enactment of this section or, if later, at
the election of the governmental unit--
``(I) the first year that the
governmental unit offers
nondiscriminatory open transmission
access, or
``(II) the first year in which at
least 10 percent of the governmental
unit's wholesale customers' aggregate
retail native load is open to retail
competition.
``(4) On-system purchaser.--For purposes of this section,
the term `on-system purchaser' means any person whose electric
equipment is directly connected with any transmission or
distribution facility owned by the governmental unit owning the
existing generation facility if--
``(A) such person--
``(i) purchases electric energy from such
governmental unit at retail, and
``(ii)(I) was within such unit's
distribution area at the close of the base year
or
``(II) is a person as to whom the
governmental unit has a statutory service
obligation, or
``(B) is a wholesale native load purchaser from
such governmental unit.
``(5) Wholesale native load purchaser.--For purposes of
this section--
``(A) In general.--The term `wholesale native load
purchaser' means a wholesale purchaser as to whom the
governmental unit had--
``(i) a statutory service obligation at
wholesale at the close of the base year, or
``(ii) an obligation at the close of the
base year under a requirements or firm sales
contract if, as of June 30, 2000, such contract
had been in effect for (or had an initial term
of) at least 10 years.
``(B) Permitted sales under existing contracts.--A
private business use sale during any year to a
wholesale native load purchaser (other than a person to
whom the governmental unit had a statutory service
obligation) under a contract shall be treated as a
permitted sale by reason of being a load loss sale only
to the extent that the private business use sales under
the contract during such year exceed the lesser of--
``(i) the private business use sales under
the contract during the base year, or
``(ii) the maximum private business use
sales which would (but for this section) be
permitted without causing the bonds to be
private activity bonds.
This subparagraph shall only apply to the extent that
the sale is allocable to bonds issued before the date
of the enactment of this section (or bonds issued to
refund such bonds).
``(6) Special rules.--
``(A) Time of sale rule.--For purposes of
paragraphs (3)(C)(iii) and (5)(B), the determination of
whether a sale after the date of the enactment of this
section is a private business use shall be made with
regard to this section.
``(B) Joint action agencies.--To the extent
provided in regulations, a joint action agency, or a
member of (or a wholesale native load purchaser from) a
joint action agency, which is entitled to make a sale
described in subparagraph (A) or (B) in a year, may
transfer the entitlement to make that sale to the
member (or purchaser), or the joint action agency,
respectively.
``(b) Certain Bonds for Transmission and Distribution Facilities
Not Tax Exempt.--
``(1) In general.--Section 103 shall not apply to any bond
issued on or after the date of the enactment of this section if
any portion of the proceeds of the issue of which such bond is
a part is used (directly or indirectly) to finance--
``(A) any electric transmission facility, or
``(B) any start-up electric utility distribution
facility.
``(2) Exceptions relating to transmission facilities.--
Paragraph (1)(A) shall not apply to any bond issued to
finance--
``(A) any repair of a transmission facility in
service on the date of the enactment of this section,
so long as the repair does not--
``(i) increase the voltage level of such
facility over its level at the close of the
base year, or
``(ii) increase the thermal load limit of
such facility by more than 3 percent over such
limit at the close of the base year,
``(B) any qualifying upgrade of an electric
transmission facility in service on the date of the
enactment of this section, or
``(C) any transmission facility necessary to comply
with an obligation under a shared or reciprocal
transmission agreement in effect on such date.
``(3) Exception for local electric transmission facility.--
For purposes of this subsection--
``(A) In general.--In the case of a governmental
unit which owns distribution facilities, paragraph
(1)(A) shall not apply to any bond issued to finance an
electric transmission facility owned by such
governmental unit and located within such governmental
unit's distribution area, but only to the extent such
facility is, or will be, necessary to supply
electricity to serve the retail native load, or
wholesale native load, of such governmental unit or of
1 or more other governmental units owning distribution
facilities which are directly connected to such
electric transmission facility.
``(B) Retail load.--The term `retail load' means,
with respect to a governmental unit, the electric load
of end-users in the distribution area of the
governmental unit.
``(C) Wholesale native load.--The term `wholesale
native load' means--
``(i) the retail load of such unit's
wholesale native load purchasers (or of an
ultimate wholesale purchaser described in
subsection (a)(3)(B)(ii)), and
``(ii) the electric load of purchasers (not
described in clause (i)) under wholesale
requirements contracts which--
``(I) do not constitute private
business use (determined without regard
to this section), and
``(II) were in effect in the base
year.
``(D) Necessary to serve load.--For purposes of
determining whether a transmission facility is, or will
be, necessary to supply electricity to retail native
load or wholesale native load--
``(i) the governmental unit's available
transmission rights shall be taken into
account,
``(ii) electric reliability standards or
requirements of national or regional
reliability organizations, regional
transmission organizations and the Electric
Reliability Council of Texas shall be taken
into account, and
``(iii) transmission, siting and
construction decisions of regional transmission
organizations and State and Federal regulatory
and siting agencies, after a proceeding that
provides for public input, shall be presumptive
evidence regarding whether transmission
facilities are necessary to serve native load.
``(E) Qualifying upgrade.--The term `qualifying
upgrade' means an improvement or addition to
transmission facilities of the governmental unit in
service on the date of the enactment of this section
which--
``(i) is ordered or approved by a regional
transmission organization or by a State
regulatory or siting agency, after a proceeding
that provides for public input, and
``(ii) is, or will be, necessary to supply
electricity to serve the retail native load, or
wholesale native load, of such governmental
unit or of one or more governmental units
owning distribution facilities which are
directly connected to such transmission
facility.
``(4) Start-up electric utility distribution facility
defined.--For purposes of this subsection, the term `start-up
electric utility distribution facility' means any distribution
facility to provide electric service for sale to the public if
such facility is placed in service--
``(A) by a governmental unit that did not operate
an electric utility on the date of the enactment of
this section, and
``(B) during the first 10 years after the date such
governmental unit begins operating an electric utility.
A governmental unit is treated as having operated an electric
utility on the date of the enactment of this section if it
operates electric output facilities which were (on such date)
operated by another governmental unit to provide electric
service for sale to the public.
``(5) Exception for refunding bonds.--
``(A) In general.--Paragraph (1) shall not apply to
any eligible refunding bond.
``(B) Eligible refunding bond.--For purposes of
subparagraph (A), the term `eligible refunding bond'
means any bond (or series of bonds) issued to refund
any bond issued before the date of the enactment of
this section if the average maturity date of the issue
of which the refunding bond is a part is not later than
the average maturity date of the bonds to be refunded
by such issue.
``(c) Definitions; Special Rules.--For purposes of this section--
``(1) Base year.--The term `base year' means--
``(A) the calendar year preceding the start-up
year, or
``(B) at the election of the governmental unit, the
second or third calendar years preceding the start-up
year.
``(2) Distribution area.--The term `distribution area'
means the area in which a governmental unit owns distribution
facilities.
``(3) Electric output facility.--The term `electric output
facility' means an output facility that is an electric
generation, transmission, or distribution facility.
``(4) Distribution facility.--The term `distribution
facility' means an electric output facility that is not a
generation or transmission facility.
``(5) Transmission facility.--The term `transmission
facility' means an electric output facility (other than a
generation facility) that operates at an electric voltage of 69
kV or greater. To the extent provided in regulations, such term
includes any output facility that FERC determines is a
transmission facility under standards applied by FERC under the
Federal Power Act (as in effect on the date of the enactment of
this section).
``(6) Existing generation facility.--
``(A) In general.--The term `existing generation
facility' means any electric generation facility if--
``(i) such facility is originally placed in
service on or before the date of the enactment
of this Act and is owned by any governmental
unit on such date, or
``(ii) such facility is originally placed
in service after such date if the construction
of the facility commenced before June 1, 2000,
and such facility is owned by any governmental
unit when it is placed in service.
``(B) Denial of treatment to expansions.--Such term
shall not include any facility to the extent the
generating capacity of such facility as of any date is
3 percent above the greater of its nameplate or rated
capacity as of the date of the enactment of this
section (or, in the case of a facility described in
subparagraph (A)(ii), the date that the facility is
placed in service).
``(7) Regional transmission organization.--The term
`regional transmission organization' includes an independent
system operator.
``(8) FERC.--The term `FERC' means the Federal Energy
Regulatory Commission.
``(9) Government-owned facility.--An electric transmission
facility shall be treated as owned by a governmental unit as of
any date to the extent that--
``(A) such unit acquired (before the base year)
long-term firm transmission capacity (as determined
under regulations) of such facility for the purposes of
serving customers to which such unit had at the close
of the base year--
``(i) a statutory service obligation, or
``(ii) an obligation under a requirements
contract, and
``(B) such unit holds such capacity as of such
date.
``(10) Statutory service obligation.--The term `statutory
service obligation' means an obligation under State or Federal
law (exclusive of an obligation arising solely under a contract
entered into with a person) to provide electric distribution
services or electric sales services, as provided in such law.
``(11) Contract modifications.--A material modification of
a contract shall be treated as a new contract.
``(d) Election To Terminate Tax-Exempt Bond Financing for Certain
Electric Output Facilities.--
``(1) In general.--At the election of a governmental unit,
section 103(a) shall not apply to any bond issued by or on
behalf of such unit after the date of such election if any
portion of the proceeds of the issue of which such bond is a
part are used to provide any electric output facilities. Such
an election, once made, shall be irrevocable.
``(2) Other effects of election.--During the period that
the election under paragraph (1) is in effect with respect to a
governmental unit, the term `private activity bond' shall not
include--
``(A) any bond issued by such unit before the date
of the enactment of this section to provide an electric
output facility if, as of the date of the election,
such bond was not a private activity bond, and
``(B) any bond to which paragraph (1) does not
apply by reason of paragraph (3).
``(3) Exceptions for certain property.--
``(A) In general.--Paragraph (1) shall not apply to
any bond issued to provide property owned by a
governmental unit if such property is--
``(i) any qualifying transmission facility,
``(ii) any qualifying distribution
facility,
``(iii) any facility necessary to meet
Federal or State environmental requirements
applicable to an existing generation facility
owned by the governmental unit as of the date
of the election,
``(iv) any property to repair any existing
generation facility owned by the governmental
unit as of the date of the election,
``(v) any qualified facility (as defined in
section 45(c)(3)) producing electricity from
any qualified energy resource (as defined in
section 45(c)(1)), and
``(vi) any energy property (as defined in
section 48(a)(3)) placed in service during a
period that the energy percentage under section
48(a) is greater than zero.
``(B) Limitation on use by nongovernmental
persons.--Subparagraph (A) shall not apply to any
property constructed, acquired or financed for a
principal purpose of providing the facility (or the
output thereof) to nongovernmental persons.
``(4) Definitions.--For purposes of this subsection--
``(A) Qualifying distribution facility.--The term
`qualifying distribution facility' means a distribution
facility meeting the open access requirements of
subsection (a)(2)(A)(ii).
``(B) Qualifying transmission facility.--The term
`qualifying transmission facility' means a local
transmission facility (as defined in subsection (b)(3))
meeting the open access requirements of subsection
(a)(2)(A)(i).
``(5) Effect of election.--
``(A) In general.--An election under paragraph (1)
shall be binding on any successor in interest to, or
any related party with respect to, the electing
governmental unit. For purposes of this paragraph, a
governmental unit shall be treated as related to
another governmental unit if it is a member of the same
controlled group (as determined under regulations).
``(B) Treatment of electing governmental unit.--A
governmental unit which makes an election under
paragraph (1) shall be treated for purposes of section
141 as a person--
``(i) which is not a governmental unit, and
``(ii) which is engaged in a trade or
business,
with respect to its purchase of electricity generated
by an electric output facility placed in service after
the date of such election if such purchase is under a
contract executed after such date.''.
(b) Waiver of Certain Limitations Not To Apply to Distribution
Facilities.--Section 141(d)(5) is amended by inserting ``(except in the
case of an electric output facility that is a distribution facility)''
after ``this subsection''.
(c) Clerical Amendment.--The table of sections for subpart A of
part IV of subchapter B of chapter 1 is amended by inserting after the
item relating to section 141 the following new item:
``Sec. 141A. Treatment of government-
owned electric output
facilities.''.
(d) Effective Date.--
(1) In general.--The amendments made by this section shall
take effect on the date of the enactment of this Act, except
that a governmental unit may elect to have section 141A(a)(1)
of the Internal Revenue Code of 1986, as added by subsection
(a), take effect on April 14, 1996.
(2) Binding contracts.--The amendment made by subsection
(b) (relating to waiver of certain limitations not to apply to
distribution facilities) shall not apply to facilities acquired
pursuant to a contract which was entered into before the date
of the enactment of this Act and which was binding on such date
and at all times thereafter before such acquisition.
(3) Comparable treatment to bonds under 1954 code rules.--
References in the amendments made by this Act to sections of
the Internal Revenue Code of 1986 shall be deemed to include
references to comparable sections of the Internal Revenue Code
of 1954.
SEC. 3208. SALES OR DISPOSITIONS TO IMPLEMENT FEDERAL ENERGY REGULATORY
COMMISSION OR STATE ELECTRIC RESTRUCTURING POLICY.
(a) In General.--Section 1033 (relating to involuntary conversions)
is amended by redesignating subsection (k) as subsection (l) and by
inserting after subsection (j) the following new subsection:
``(k) Sales or Dispositions To Implement Federal Energy Regulatory
Commission or State Electric Restructuring Policy.--
``(1) In general.--For purposes of this subtitle, if a
taxpayer elects the application of this subsection to a
qualifying electric transmission transaction--
``(A) such transaction shall be treated as an
involuntary conversion to which this section applies,
and
``(B) exempt utility property shall be treated as
property which is similar or related in service or use
to the property disposed of in such transaction.
``(2) Extension of replacement period.--In the case of any
involuntary conversion described in paragraph (1), subsection
(a)(2)(B) shall be applied by substituting `4 years' for `2
years' in clause (i) thereof.
``(3) Qualifying electric transmission transaction.--For
purposes of this subsection, the term `qualifying electric
transmission transaction' means any sale or other disposition
before January 1, 2009, of--
``(A) property used in the trade or business of
providing electric transmission services, or
``(B) any stock or partnership interest in a
corporation or partnership, as the case may be, whose
principal trade or business consists of providing
electric transmission services,
but only if such sale or disposition is to an independent
transmission company.
``(4) Independent transmission company.--For purposes of
this subsection, the term `independent transmission company'
means--
``(A) a regional transmission organization approved
by the Federal Energy Regulatory Commission,
``(B) a person--
``(i) who the Federal Energy Regulatory
Commission determines in its authorization of
the transaction under section 203 of the
Federal Power Act (16 U.S.C. 823b) is not a
market participant within the meaning of such
Commission's rules applicable to regional
transmission organizations, and
``(ii) whose transmission facilities to
which the election under this subsection
applies are under the operational control of a
Federal Energy Regulatory Commission-approved
regional transmission organization before the
close of the period specified in such
authorization, but not later than the close of
the period applicable under subsection
(a)(2)(B) as extended under paragraph (2), or
``(C) in the case of facilities subject to the
exclusive jurisdiction of the Public Utility Commission
of Texas, a person which is approved by that Commission
as consistent with Texas State law regarding an
independent transmission organization.
``(5) Exempt utility property.--For purposes of this
subsection--
``(A) In general.--The term `exempt utility
property' means property used in the trade or business
of--
``(i) generating, transmitting,
distributing, or selling electricity, or
``(ii) producing, transmitting,
distributing, or selling natural gas.
``(B) Nonrecognition of gain by reason of
acquisition of stock.--Acquisition of control of a
corporation shall be taken into account under this
section with respect to a qualifying electric
transmission transaction only if the principal trade or
business of such corporation is a trade or business
referred to in subparagraph (A).
``(6) Special rule for consolidated groups.--In the case of
a corporation which is a member of an affiliated group filing a
consolidated return, such corporation shall be treated as
satisfying the purchase requirement of subsection (a)(2) with
respect to any qualifying electric transmission transaction
engaged in by such corporation to the extent such requirement
is satisfied by another member of such group.
``(7) Election.--An election under paragraph (1), once
made, shall be irrevocable.''.
(b) Exception From Gain Recognition under Section 1245.--Subsection
(b) of section 1245 is amended by adding at the end the following new
paragraph:
``(9) Dispositions to implement federal energy regulatory
commission or state electric restructuring policy.--At the
election of the taxpayer, the amount of gain which would (but
for this paragraph) be recognized under this section on any
qualified electric transmission transaction (as defined in
section 1033(k)) for which an election under section 1033 is
made shall be reduced by the aggregate reduction in the basis
of section 1245 property held by the taxpayer or, if
insufficient, by a member of an affiliated group which includes
the taxpayer at any time during the taxable year in which such
transaction occurred. The manner and amount of such reduction
shall be determined under regulations prescribed by the
Secretary.''.
(c) Effective Date.--The amendments made by this section shall
apply to transactions occurring after the date of the enactment of this
Act.
SEC. 3209. DISTRIBUTIONS OF STOCK TO IMPLEMENT FEDERAL ENERGY
REGULATORY COMMISSION OR STATE ELECTRIC RESTRUCTURING
POLICY.
(a) In General.--Subparagraph (A) of section 355(e)(3) (relating to
special rules relating to acquisitions) is amended by inserting after
clause (iv) the following new clause:
``(v) The acquisition of stock in any
controlled corporation in a qualifying electric
transmission transaction (as defined in section
1033(k)).''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to distributions after the date of the enactment of this Act.
SEC. 3210. MODIFICATIONS TO SPECIAL RULES FOR NUCLEAR DECOMMISSIONING
COSTS.
(a) Repeal of Limitation on Deposits Into Fund Based on Cost of
Service; Contributions After Funding Period.--Subsection (b) of section
468A is amended to read as follows:
``(b) Limitation on Amounts Paid Into Fund.--
``(1) In general.--The amount which a taxpayer may pay into
the Fund for any taxable year shall not exceed the ruling
amount applicable to such taxable year.
``(2) Contributions after funding period.--Notwithstanding
any other provision of this section, a taxpayer may pay into
the Fund in any taxable year after the last taxable year to
which the ruling amount applies. Payments may not be made under
the preceding sentence to the extent such payments would cause
the assets of the Fund to exceed the nuclear decommissioning
costs allocable to the taxpayer's current or former interest in
the nuclear powerplant to which the Fund relates. The
limitation under the preceding sentence shall be determined by
taking into account a reasonable rate of inflation for the
nuclear decommissioning costs and a reasonable after-tax rate
of return on the assets of the Fund until such assets are
anticipated to be expended.''.
(b) Clarification of Treatment of Fund Transfers.--Subsection (e)
of section 468A is amended by adding at the end the following new
paragraph:
``(8) Treatment of fund transfers.--If, in connection with
the transfer of the taxpayer's interest in a nuclear
powerplant, the taxpayer transfers the Fund with respect to
such powerplant to the transferee of such interest and the
transferee elects to continue the application of this section
to such Fund--
``(A) the transfer of such Fund shall not cause
such Fund to be disqualified from the application of
this section, and
``(B) no amount shall be treated as distributed
from such Fund, or be includible in gross income, by
reason of such transfer.''.
(c) Treatment of Certain Decommissioning Costs.--
(1) In general.--Section 468A is amended by redesignating
subsections (f) and (g) as subsections (g) and (h),
respectively, and by inserting after subsection (e) the
following new subsection:
``(f) Transfers Into Qualified Funds.--
``(1) In general.--Notwithstanding subsection (b), any
taxpayer maintaining a Fund to which this section applies with
respect to a nuclear powerplant may transfer into such Fund up
to an amount equal to the excess of the total nuclear
decommissioning costs with respect to such nuclear powerplant
over the portion of such costs taken into account in
determining the ruling amount in effect immediately before the
transfer.
``(2) Deduction for amounts transferred.--
``(A) In general.--The deduction allowed by
subsection (a) for any transfer permitted by this
subsection shall be allowed ratably over the remaining
estimated useful life (within the meaning of subsection
(d)(2)(A)) of the nuclear powerplant beginning with the
taxable year during which the transfer is made.
``(B) Denial of deduction for previously deducted
amounts.--No deduction shall be allowed for any
transfer under this subsection of an amount for which a
deduction was previously allowed or a corresponding
amount was not included in gross income. For purposes
of the preceding sentence, a ratable portion of each
transfer shall be treated as being from previously
deducted or excluded amounts to the extent thereof.
``(C) Transfers of qualified funds.--If--
``(i) any transfer permitted by this
subsection is made to any Fund to which this
section applies, and
``(ii) such Fund is transferred thereafter,
any deduction under this subsection for taxable years
ending after the date that such Fund is transferred
shall be allowed to the transferee and not to the
transferor. The preceding sentence shall not apply if
the transferor is an organization exempt from tax
imposed by this chapter.
``(D) Special rules.--
``(i) Gain or loss not recognized.--No gain
or loss shall be recognized on any transfer
permitted by this subsection.
``(ii) Transfers of appreciated property.--
If appreciated property is transferred in a
transfer permitted by this subsection, the
amount of the deduction shall be the adjusted
basis of such property.
``(3) New ruling amount required.--Paragraph (1) shall not
apply to any transfer unless the taxpayer requests from the
Secretary a new schedule of ruling amounts in connection with
such transfer.
``(4) No basis in qualified funds.--Notwithstanding any
other provision of law, the taxpayer's basis in any Fund to
which this section applies shall not be increased by reason of
any transfer permitted by this subsection.''.
(2) New ruling amount to take into account total costs.--
Subparagraph (A) of section 468A(d)(2) is amended to read as
follows:
``(A) fund the total nuclear decommissioning costs
with respect to such powerplant over the estimated
useful life of such powerplant, and''.
(d) Deduction for Nuclear Decommissioning Costs When Paid.--
Paragraph (2) of section 468A(c) is amended to read as follows:
``(2) Deduction of nuclear decommissioning costs.--In
addition to any deduction under subsection (a), nuclear
decommissioning costs paid or incurred by the taxpayer during
any taxable year shall constitute ordinary and necessary
expenses in carrying on a trade or business under section
162.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2001.
SEC. 3211. TREATMENT OF CERTAIN INCOME OF COOPERATIVES.
(a) Income From Open Access and Nuclear Decommissioning
Transactions.--
(1) In general.--Subparagraph (C) of section 501(c)(12) is
amended by striking ``or'' at the end of clause (i), by
striking the period at the end of clause (ii) and inserting a
comma, and by adding at the end the following new clauses:
``(iii) from any open access transaction
(other than income received or accrued directly
or indirectly from a member), or
``(iv) from any nuclear decommissioning
transaction.''.
(2) Definitions.--Paragraph (12) of section 501(c) is
amended by adding at the end the following new subparagraph:
``(E) For purposes of subparagraph (C)--
``(i) The term `open access transaction'
means any activity which would be a permitted
open access activity (as defined in section
141A(a)(2)) if the cooperative were a
governmental unit.
``(ii) The term `nuclear decommissioning
transaction' means--
``(I) any transfer into a trust,
fund, or instrument established to pay
any nuclear decommissioning costs if
the transfer is in connection with the
transfer of the cooperative's interest
in a nuclear powerplant or nuclear
powerplant unit,
``(II) any distribution from such a
trust, fund, or instrument, or
``(III) any earnings from such a
trust, fund, or instrument.''.
(b) Income From Load Loss Transactions Treated as Member Income.--
Paragraph (12) of section 501(c) is amended by adding after
subparagraph (E) the following new subparagraph:
``(F)(i) In the case of a mutual or cooperative
electric company, income received or accrued from a
load loss transaction shall be treated as an amount
collected from members for the sole purpose of meeting
losses and expenses.
``(ii) For purposes of clause (i), the term `load
loss transaction' means any sale (whether at wholesale
or at retail) which would be a load loss sale under
rules similar to the rules of section 141A(a)(3)(C).
``(iii) A company shall not fail to be treated as a
mutual cooperative company for purposes of this
paragraph by reason of the treatment under clause (i).
``(iv) A rule similar to the rule of this
subparagraph shall apply to an organization to which
section 1381 does not apply by reason of section
1381(a)(2)(C).''.
(c) Exception From Unrelated Business Taxable Income.--Subsection
(b) of section 512 (relating to modifications) is amended by adding at
the end the following new paragraph:
``(18) Treatment of load loss sales of mutual or
cooperative electric companies.--In the case of a mutual or
cooperative electric company described in section 501(c)(12),
there shall be excluded income which is treated as member
income under subparagraph (F) thereof.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 3212. REPEAL OF REQUIREMENT OF CERTAIN APPROVED TERMINALS TO OFFER
DYED DIESEL FUEL AND KEROSENE FOR NONTAXABLE PURPOSES.
Section 4101 (relating to certain approved terminals of registered
persons required to offer dyed diesel fuel and kerosene for nontaxable
purposes) is amended by striking subsection (e).
SEC. 3213. ARBITRAGE RULES NOT TO APPLY TO PREPAYMENTS FOR NATURAL GAS.
(a) In General.--Subsection (b) of section 148 (defining higher
yielding investments) is amended by adding at the end the following new
paragraph:
``(4) Exception for certain prepayments to ensure natural
gas supply.--The term `investment property' shall not include
any prepayment for the purpose of obtaining a supply of a
natural gas--
``(A) at least 85 percent of which is to be used in
the State in which the issuer is located, and
``(B) which is to be used in a business of one or
more utilities each of which is owned and operated by a
State or local government, any political subdivision or
instrumentality thereof, or any governmental unit
acting for or on behalf of such a utility.''.
(b) Private Loan Financing Test Not To Apply to Prepayments for
Natural Gas.--Paragraph (2) of section 141(c) (providing exceptions to
the private loan financing test) is amended by striking ``or'' at the
end of subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``, or'', and by adding at the end the
following new subparagraph:
``(C) arises from a transaction described in
section 148(b)(4).''.
(c) Effective Date.--The amendments made by this section shall
apply to obligations issued after October 22, 1986; except that section
148(b)(4)(A) of the Internal Revenue Code of 1986, as added by this
section, shall apply only to obligations issued after the date of the
enactment of this Act.
TITLE III--PRODUCTION
SEC. 3301. OIL AND GAS FROM MARGINAL WELLS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
(relating to business credits) is amended by adding at the end the
following:
``SEC. 45J. CREDIT FOR PRODUCING OIL AND GAS FROM MARGINAL WELLS.
``(a) General Rule.--For purposes of section 38, the marginal well
production credit for any taxable year is an amount equal to the
product of--
``(1) the credit amount, and
``(2) the qualified credit oil production and the qualified
natural gas production which is attributable to the taxpayer.
``(b) Credit Amount.--For purposes of this section--
``(1) In general.--The credit amount is--
``(A) $3 per barrel of qualified crude oil
production, and
``(B) 50 cents per 1,000 cubic feet of qualified
natural gas production.
``(2) Reduction as oil and gas prices increase.--
``(A) In general.--The $3 and 50 cents amounts
under paragraph (1) shall each be reduced (but not
below zero) by an amount which bears the same ratio to
such amount (determined without regard to this
paragraph) as--
``(i) the excess (if any) of the applicable
reference price over $15 ($1.67 for qualified
natural gas production), bears to
``(ii) $3 ($0.33 for qualified natural gas
production).
The applicable reference price for a taxable year is
the reference price of the calendar year preceding the
calendar year in which the taxable year begins.
``(B) Inflation adjustment.--In the case of any
taxable year beginning in a calendar year after 2001,
each of the dollar amounts contained in subparagraph
(A) shall be increased to an amount equal to such
dollar amount multiplied by the inflation adjustment
factor for such calendar year (determined under section
43(b)(3)(B) by substituting `2000' for `1990').
``(C) Reference price.--For purposes of this
paragraph, the term `reference price' means, with
respect to any calendar year--
``(i) in the case of qualified crude oil
production, the reference price determined
under section 29(d)(2)(C), and
``(ii) in the case of qualified natural gas
production, the Secretary's estimate of the
annual average wellhead price per 1,000 cubic
feet for all domestic natural gas.
``(c) Qualified Crude Oil and Natural Gas Production.--For purposes
of this section--
``(1) In general.--The terms `qualified crude oil
production' and `qualified natural gas production' mean
domestic crude oil or natural gas which is produced from a
qualified marginal well.
``(2) Limitation on amount of production which may
qualify.--
``(A) In general.--Crude oil or natural gas
produced during any taxable year from any well shall
not be treated or qualified crude oil production or
qualified natural gas production to the extent
production from the well during the taxable year
exceeds 1,095 barrels or barrel equivalents.
``(B) Proportionate reductions.--
``(i) Short taxable years.--In the case of
a short taxable year, the limitations under
this paragraph shall be proportionately reduced
to reflect the ratio which the number of days
in such taxable year bears to 365.
``(ii) Wells not in production entire
year.--In the case of a well which is not
capable of production during each day of a
taxable year, the limitations under this
paragraph applicable to the well shall be
proportionately reduced to reflect the ratio
which the number of days of production bears to
the total number of days in the taxable year.
``(3) Definitions.--
``(A) Qualified marginal well.--The term `qualified
marginal well' means a domestic well--
``(i) the production from which during the
taxable year is treated as marginal production
under section 613A(c)(6), or
``(ii) which, during the taxable year--
``(I) has average daily production
of not more than 25 barrel equivalents,
and
``(II) produces water at a rate not
less than 95 percent of total well
effluent.
``(B) Crude oil, etc.--The terms `crude oil',
`natural gas', `domestic', and `barrel' have the
meanings given such terms by section 613A(e).
``(C) Barrel equivalent.--The term `barrel
equivalent' means, with respect to natural gas, a
conversation ratio of 6,000 cubic feet of natural gas
to 1 barrel of crude oil.
``(d) Other Rules.--
``(1) Production attributable to the taxpayer.--In the case
of a qualified marginal well in which there is more than one
owner of operating interests in the well and the crude oil or
natural gas production exceeds the limitation under subsection
(c)(2), qualifying crude oil production or qualifying natural
gas production attributable to the taxpayer shall be determined
on the basis of the ratio which taxpayer's revenue interest in
the production bears to the aggregate of the revenue interests
of all operating interest owners in the production.
``(2) Operating interest required.--Any credit under this
section may be claimed only on production which is attributable
to the holder of an operating interest.
``(3) Production from nonconventional sources excluded.--In
the case of production from a qualified marginal well which is
eligible for the credit allowed under section 29 for the
taxable year, no credit shall be allowable under this section
unless the taxpayer elects not to claim the credit under
section 29 with respect to the well.
``(4) Noncompliance with pollution laws.--For purposes of
subsection (c)(3)(A), a marginal well which is not in
compliance with the applicable State and Federal pollution
prevention, control, and permit requirements for any period of
time shall not be considered to be a qualified marginal well
during such period.''.
(b) Credit Treated as Business Credit.--Section 38(b) is amended by
striking ``plus'' at the end of paragraph (17), by striking the period
at the end of paragraph (18) and inserting ``, plus'', and by adding at
the end the following:
``(19) the marginal oil and gas well production credit
determined under section 45J(a).''.
(c) Carryback.--Subsection (a) of section 39 (relating to carryback
and carryforward of unused credits generally) is amended by adding at
the end the following:
``(3) 10-year carryback for marginal oil and gas well
production credit.--In the case of the marginal oil and gas
well production credit--
``(A) this section shall be applied separately from
the business credit (other than the marginal oil and
gas well production credit),
``(B) paragraph (1) shall be applied by
substituting `10 taxable years' for `1 taxable years'
in subparagraph (A) thereof, and
``(C) paragraph (2) shall be applied--
``(i) by substituting `31 taxable years'
for `21 taxable years' in subparagraph (A)
thereof, and
``(ii) by substituting `30 taxable years'
for `20 taxable years' in subparagraph (A)
thereof.''.
(d) Coordination With Section 29.--Section 29(a) is amended by
striking ``There'' and inserting ``At the election of the taxpayer,
there''.
(e) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter I is amended by adding at the end
the following:
``Sec. 45J. Credit for producing oil and
gas from marginal wells.''.
(f) Effective Date.--The amendments made by this section shall
apply to production in taxable years beginning after December 31, 2001.
SEC. 3302. TEMPORARY SUSPENSION OF LIMITATION BASED ON 65 PERCENT OF
TAXABLE INCOME AND EXTENSION OF SUSPENSION OF TAXABLE
INCOME LIMIT WITH RESPECT TO MARGINAL PRODUCTION.
(a) Limitation Based on 65 Percent of Taxable Income.--Subsection
(d) of section 613A (relating to limitation on percentage depletion in
case of oil and gas wells) is amended by adding at the end the
following new paragraph:
``(6) Temporary suspension of taxable income limit.--
Paragraph (1) shall not apply to taxable years beginning after
December 31, 2001, and before January 1, 2007, including with
respect to amounts carried under the second sentence of
paragraph (1) to such taxable years.''.
(b) Extension of Suspension of Taxable Income Limit With Respect to
Marginal Production.--Subparagraph (H) of section 613A(c)(6) (relating
to temporary suspension of taxable income limit with respect to
marginal production) is amended by striking ``2002'' and inserting
``2007''.
(c) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after December 31, 2001.
SEC. 3303. DEDUCTION FOR DELAY RENTAL PAYMENTS.
(a) In General.--Section 263 (relating to capital expenditures) is
amended by adding after subsection (i) the following:
``(j) Delay Rental Payments for Domestic Oil and Gas Wells.--
``(1) In general.--Notwithstanding subsection (a), a
taxpayer may elect to treat delay rental payments incurred in
connection with the development of oil or gas within the United
States (as defined in section 638) as payments which are not
chargeable to capital account. Any payments so treated shall be
allowed as a deduction in the taxable year in which paid or
incurred.
``(2) Delay rental payments.--For purposes of paragraph
(1), the term `delay rental payment' means an amount paid for
the privilege of deferring development of an oil or gas well
under an oil or gas lease.''.
(b) Conforming Amendment.--Section 263A(c)(3) is amended by
inserting ``263(j),'' after `263(i),'.
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred in taxable years beginning after
December 31, 2001.
SEC. 3304. ELECTION TO EXPENSE GEOLOGICAL AND GEOPHYSICAL EXPENDITURES.
(a) In General.--Section 263 (relating to capital expenditures) is
amended by adding after subsection (j) the following:
``(k) Geological and Geophysical Expenditures for Domestic Oil and
Gas Wells.--Notwithstanding subsection (a), a taxpayer may elect to
treat geological and geophysical expenses incurred in connection with
the exploration for, or development of, oil or gas within the United
States (as defined in section 638) as expenses which are not chargeable
to capital account. Any expenses so treated shall be allowed as a
deduction in the taxable year in which paid or incurred.''.
(b) Conforming Amendment.--Section 263A(c)(3), as amended by
section 3303(b), is amended by inserting ``263(k),'' after ``263(j),''.
(c) Effective Date.--The amendments made by this section shall
apply to costs paid or incurred in taxable years beginning after
December 31, 2001.
SEC. 3305. FIVE-YEAR NET OPERATING LOSS CARRYBACK FOR LOSSES
ATTRIBUTABLE TO OPERATING MINERAL INTERESTS OF OIL AND
GAS PRODUCERS.
(a) In General.--Paragraph (1) of section 172(b) (relating to years
to which loss may be carried) is amended by adding at the end the
following new subparagraph:
``(H) Losses on operating mineral interests of oil
and gas producers.--In the case of a taxpayer which has
an eligible oil and gas loss (as defined in subsection
(j)) for a taxable year, such eligible oil and gas loss
shall be a net operating loss carryback to each of the
5 taxable years preceding the taxable year of such
loss.''.
(b) Eligible Oil and Gas Loss.--Section 172 is amended by
redesignating subsection (j) as subsection (k) and by inserting after
subsection (i) the following new subsection:
``(j) Eligible Oil and Gas Loss.--For purposes of this section--
``(1) In general.--The term `eligible oil and gas loss'
means the lesser of--
``(A) the amount which would be the net operating
loss for the taxable year if only income and deductions
attributable to operating mineral interests (as defined
in section 614(d)) in oil and gas wells are taken into
account, or
``(B) the amount of the net operating loss for such
taxable year.
``(2) Coordination with subsection (b)(2).--For purposes of
applying subsection (b)(2), an eligible oil and gas loss for
any taxable year shall be treated in a manner similar to the
manner in which a specified liability loss is treated.
``(3) Election.--Any taxpayer entitled to a 5-year
carryback under subsection (b)(1)(H) from any loss year may
elect to have the carryback period with respect to such loss
year determined without regard to subsection (b)(1)(H).''.
(c) Effective Date.--The amendments made by this section shall
apply to net operating losses for taxable years beginning after
December 31, 2001.
SEC. 3306. EXTENSION AND MODIFICATION OF CREDIT FOR PRODUCING FUEL FROM
A NONCONVENTIONAL SOURCE.
(a) In General.--Section 29 is amended by adding at the end the
following new subsection:
``(h) Extension for Other Facilities.--
``(1) Extension for oil and certain gas.--In the case of a
well for producing qualified fuels described in subparagraph
(A) or (B)(i) of subsection (c)(1)--
``(A) Application of credit for new wells.--
Notwithstanding subsection (f), this section shall
apply with respect to such fuels--
``(i) which are produced from a well
drilled after the date of the enactment of this
subsection and before January 1, 2007, and
``(ii) which are sold not later than the
close of the 4-year period beginning on the
date that such well is drilled, or, if earlier,
January 1, 2010.
``(B) Extension of credit for old wells.--
Subsection (f)(2) shall be applied by substituting
`2007' for `2003' with respect to wells described in
subsection (f)(1)(A) with respect to such fuels.
``(2) Extension for facilities producing qualified fuel
from landfill gas.--
``(A) In general.--In the case of a facility for
producing qualified fuel from landfill gas which was
placed in service after June 30, 1998, and before
January 1, 2007, this section shall apply to fuel
produced at such facility during the 5-year period
beginning on the later of--
``(i) the date such facility was placed in
service, or
``(ii) the date of the enactment of this
subsection.
``(B) Reduction of credit for certain landfill
facilities.--In the case of a facility to which
paragraph (1) applies and which is subject to the 1996
New Source Performance Standards/Emmissions Guidelines
of the Environmental Protection Agency, subsection
(a)(1) shall be applied by substituting `$2' for `$3'.
``(3) Special rules.--In determining the amount of credit
allowable under this section solely by reason of this
subsection--
``(A) Daily limit.--The amount of qualified fuels
sold during any taxable year which may be taken into
account by reason of this subsection with respect to
any project shall not exceed an average barrel-of-oil
equivalent of 200,000 cubic feet of natural gas per
day. Days before the date the project is placed in
service shall not be taken into account in determining
such average.
``(B) Extension period to commence with unadjusted
credit amount.--In the case of fuels sold during 2001
and 2002, the dollar amount applicable under subsection
(a)(1) shall be $3 (without regard to subsection
(b)(2)). In the case of fuels sold after 2002,
subparagraph (B) of subsection (d)(2) shall be applied
by substituting `2002' for `1979'.''.
(b) Effective Date.--The amendment made by this section shall apply
to fuel sold after the date of the enactment of this Act.
SEC. 3307. BUSINESS RELATED ENERGY CREDITS ALLOWED AGAINST REGULAR AND
MINIMUM TAX.
(a) In General.--Subsection (c) of section 38 (relating to
limitation based on amount of tax) is amended by redesignating
paragraph (3) as paragraph (4) and by inserting after paragraph (2) the
following new paragraph:
``(3) Special rules for specified energy credits.--
``(A) In general.--In the case of specified energy
credits--
``(i) this section and section 39 shall be
applied separately with respect to such
credits, and
``(ii) in applying paragraph (1) to such
credits--
``(I) the tentative minimum tax
shall be treated as being zero, and
``(II) the limitation under
paragraph (1) (as modified by subclause
(I)) shall be reduced by the credit
allowed under subsection (a) for the
taxable year (other than the specified
energy credits).
``(B) Specified energy credits.--For purposes of
this subsection, the term `specified energy credits'
means the credits determined under sections 45G, 45H,
45I, 45J, and 45K.''.
(b) Conforming Amendment.--Subclause (II) of section
38(c)(2)(A)(ii) is amended by inserting ``or the specified energy
credits'' after ``employment credit''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
SEC. 3308. TEMPORARY REPEAL OF ALTERNATIVE MINIMUM TAX PREFERENCE FOR
INTANGIBLE DRILLING COSTS.
(a) In General.--Clause (ii) of section 57(a)(2)(E) is amended by
adding at the end the following new sentence: ``The preceding sentence
shall not apply to taxable years beginning after December 31, 2001, and
before January 1, 2005.''.
(b) Effective Dates.--The amendment made by this section shall
apply to taxable years beginning after December 31, 2001.
SEC. 3309. ALLOWANCE OF ENHANCED RECOVERY CREDIT AGAINST THE
ALTERNATIVE MINIMUM TAX.
(a) In General.--Subparagraph (B) of section 38(c)(3), as amended
by section 3307, is amended by adding at the end the following new
sentence: ``For taxable years beginning before January 1, 2005, such
term includes the credit determined under section 43.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2001.
SEC. 3310. EXTENSION OF CERTAIN BENEFITS FOR ENERGY-RELATED BUSINESSES
ON INDIAN RESERVATIONS.
(a) Depreciation for Property on Indian Reservations.--Paragraph
(8) of section 168(j) (relating to termination) is amended by adding at
the end the following new sentence: ``The preceding sentence shall be
applied by substituting `December 31, 2006' for `December 31, 2003' in
the case of property placed in service as part of a facility for--
``(A) the generation or transmission of electricity
(including from any qualified energy resource, as
defined in section 45(c)),
``(B) an oil or gas well,
``(C) the transmission or refining of oil or gas,
or
``(D) the production of any qualified fuel (as
defined in section 29(c)).''.
(b) Employment of Indians.--Subsection (f) of section 45A (relating
to termination) is amended by adding at the end the following new
sentence: ``The preceding sentence shall be applied by substituting
`December 31, 2006' for `December 31, 2003' in the case of wages paid
for services performed at a facility described in section 168(j)(8).''.
DIVISION D
SEC. 4101. CAPACITY BUILDING FOR ENERGY-EFFICIENT, AFFORDABLE HOUSING.
Section 4(b) of the HUD Demonstration Act of 1993 (42 U.S.C. 9816
note) is amended--
(1) in paragraph (1), by inserting before the semicolon at
the end the following: ``, including capabilities regarding the
provision of energy efficient, affordable housing and
residential energy conservation measures''; and
(2) in paragraph (2), by inserting before the semicolon the
following: ``, including such activities relating to the
provision of energy efficient, affordable housing and
residential energy conservation measures that benefit low-
income families''.
SEC. 4102. INCREASE OF CDBG PUBLIC SERVICES CAP FOR ENERGY CONSERVATION
AND EFFICIENCY ACTIVITIES.
Section 105(a)(8) of the Housing and Community Development Act of
1974 (42 U.S.C. 5305(a)(8)) is amended--
(1) by inserting ``or efficiency'' after ``energy
conservation'';
(2) by striking ``, and except that'' and inserting ``;
except that''; and
(3) by inserting before the period at the end the
following: ``; and except that each percentage limitation under
this paragraph on the amount of assistance provided under this
title that may be used for the provision of public services is
hereby increased by 10 percent, but such percentage increase
may be used only for the provision of public services
concerning energy conservation or efficiency''.
SEC. 4103. FHA MORTGAGE INSURANCE INCENTIVES FOR ENERGY EFFICIENT
HOUSING.
(a) Single Family Housing Mortgage Insurance.--Section 203(b)(2) of
the National Housing Act (12 U.S.C. 1709(b)(2)) is amended, in the
first undesignated paragraph beginning after subparagraph (B)(iii)
(relating to solar energy systems)--
(1) by inserting ``or paragraph (10)''; and
(2) by striking ``20 percent'' and inserting ``30
percent''.
(b) Multifamily Housing Mortgage Insurance.--Section 207(c) of the
National Housing Act (12 U.S.C. 1713(c)) is amended, in the second
undesignated paragraph beginning after paragraph (3) (relating to solar
energy systems and residential energy conservation measures), by
striking ``20 percent'' and inserting ``30 percent''.
(c) Cooperative Housing Mortgage Insurance.--Section 213(p) of the
National Housing Act (12 U.S.C. 1715e(p)) is amended by striking ``20
per centum'' and inserting ``30 percent''.
(d) Rehabilitation and Neighborhood Conservation Housing Mortgage
Insurance.--Section 220(d)(3)(B)(iii) of the National Housing Act (12
U.S.C. 1715k(d)(3)(B)(iii)) is amended by striking ``20 per centum''
and inserting ``30 percent''.
(e) Low-Income Multifamily Housing Mortgage Insurance.--Section
221(k) of the National Housing Act (12 U.S.C. 1715l(k)) is amended by
striking ``20 per centum'' and inserting ``30 percent''.
(f) Elderly Housing Mortgage Insurance.--The proviso at the end of
section 213(c)(2) of the National Housing Act (12 U.S.C. 1715v(c)(2))
is amended by striking ``20 per centum'' and inserting ``30 percent''.
(g) Condominium Housing Mortgage Insurance.--Section 234(j) of the
National Housing Act (12 U.S.C. 1715y(j)) is amended by striking ``20
per centum'' and inserting ``30 percent''.
SEC. 4104. PUBLIC HOUSING CAPITAL FUND.
Section 9(d)(1) of the United States Housing Act of 1937 (42 U.S.C.
1437g(d)(1)) is amended--
(1) in subparagraph (I), by striking ``and'' at the end;
(2) in subparagraph (K), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(L) improvement of energy and water-use
efficiency by installing fixtures and fittings that
conform to the American Society of Mechanical
Engineers/American National Standards Institute
standards A112.19.2-1998 and A112.18.1-2000, or any
revision thereto, applicable at the time of
installation, and by increasing energy efficiency and
water conservation by such other means as the Secretary
determines are appropriate.''.
SEC. 4105. GRANTS FOR ENERGY-CONSERVING IMPROVEMENTS FOR ASSISTED
HOUSING.
Section 251(b)(1) of the National Energy Conservation Policy Act
(42 U.S.C. 8231(1)) is amended--
(1) by striking ``financed with loans'' and inserting
``assisted'';
(2) by inserting after ``1959,'' the following: ``which are
eligible multifamily housing projects (as such term is defined
in section 512 of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note)) and are
subject to a mortgage restructuring and rental assistance
sufficiency plans under such Act,''; and
(3) by inserting after the period at the end of the first
sentence the following new sentence: ``Such improvements may
also include the installation of energy and water conserving
fixtures and fittings that conform to the American Society of
Mechanical Engineers/American National Standards Institute
standards A112.19.2-1998 and A112.18.1-2000, or any revision
thereto, applicable at the time of installation.''.
SEC. 4106. NORTH AMERICAN DEVELOPMENT BANK.
Part 2 of subtitle D of title V of the North American Free Trade
Agreement Implementation Act (22 U.S.C. 290m-290m-3) is amended by
adding at the end the following:
``SEC. 545. SUPPORT FOR CERTAIN ENERGY POLICIES.
``Consistent with the focus of the Bank's Charter on environmental
infrastructure projects, the Board members representing the United
States should use their voice and vote to encourage the Bank to finance
projects related to clean and efficient energy, including energy
conservation, that prevent, control, or reduce environmental pollutants
or contaminants.''.
DIVISION E
SEC. 5000. SHORT TITLE.
This division may be cited as the ``Clean Coal Power Initiative Act
of 2001''.
SEC. 5001. 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 the 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 ways to convert 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.
SEC. 5002. DEFINITIONS.
In this division:
(1) Cost and performance goals.--The term ``cost and
performance goals'' means the cost and performance goals
established under section 5004.
(2) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
SEC. 5003. CLEAN COAL POWER INITIATIVE.
(a) In General.--The Secretary shall carry out a program under--
(1) this division;
(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.),
to achieve cost and performance goals established by the Secretary
under section 5004.
SEC. 5004. COST AND PERFORMANCE GOALS.
(a) Review and Assessment.--The Secretary shall perform an
assessment that establishes measurable cost and performance goals for
2005, 2010, 2015, and 2020 for the programs authorized by this
division. Such assessment shall be based on the latest scientific,
economic, and technical knowledge.
(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) institutions of higher learning, national laboratories,
and professional and technical societies;
(7) organizations representing workers;
(8) 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
(9) other appropriate Federal and State agencies.
(c) Timing.--The Secretary shall--
(1) not later than 120 days after the date of the 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 the enactment
of this Act, after taking into consideration any public
comments received, submit to the Committee on Energy and
Commerce and the Committee on Science of the House of
Representatives, and to the Senate, the final cost and
performance goals.
SEC. 5005. AUTHORIZATION OF APPROPRIATIONS.
(a) Clean Coal Power Initiative.--Except as provided in subsection
(b), there are authorized to be appropriated to the Secretary to carry
out the Clean Coal Power Initiative under section 5003 $200,000,000 for
each of the fiscal years 2002 through 2011, to remain available until
expended.
(b) Limit on use of Funds.--Notwithstanding subsection (a), no
funds may be used to carry out the activities authorized by this Act
after September 30, 2002, unless the Secretary has transmitted to the
Committee on Energy and Commerce and the Committee on Science of the
House of Representatives, and to the Senate, the report required by
this subsection and 1 month has elapsed since that transmission. The
report shall include, with respect to subsection (a), a 10-year plan
containing--
(1) a detailed assessment of whether the aggregate funding
levels provided under subsection (a) are the appropriate
funding levels for that program;
(2) a detailed description of how proposals will be
solicited and evaluated, including a list of all activities
expected to be undertaken;
(3) a detailed list of technical milestones for each coal
and related technology that will be pursued;
(4) recommendations for a mechanism for recoupment of
Federal funding for successful commercial projects; and
(5) a detailed description of how the program will avoid
problems enumerated in General Accounting Office reports on the
Clean Coal Technology Program, including problems that have
resulted in unspent funds and projects that failed either
financially or scientifically.
(c) Applicability.--Subsection (b) shall not apply to any project
begun before September 30, 2002.
SEC. 5006. PROJECT CRITERIA.
(a) In General.--The Secretary shall not provide funding under this
division for any project that does not advance efficiency,
environmental performance, and cost competitiveness well beyond the
level of technologies that are in operation or have been demonstrated
as of the date of the enactment of this Act.
(b) Technical Criteria for Clean Coal Power Initiative.--
(1) Gasification.--(A) In allocating the funds authorized
under section 5005(a), the Secretary shall ensure that at least
80 percent of the funds are used only for projects on coal-
based gasification technologies, including gasification
combined cycle, gasification fuel cells, gasification
coproduction and hybrid gasification/combustion.
(B) The Secretary shall set technical milestones specifying
emissions levels that coal gasification projects must be
designed to and reasonably expected to achieve. The milestones
shall get more restrictive through the life of the program. The
milestones shall be designed to achieve by 2020 coal
gasification projects able--
(i) to remove 99 percent of sulfur dioxide;
(ii) to emit no more than .05 lbs of NOx per
million BTU;
(iii) to achieve substantial reductions in mercury
emissions; and
(iv) to achieve a thermal efficiency of 60 percent
(higher heating value).
(2) Other projects.--For projects not described in
paragraph (1), the Secretary shall set technical milestones
specifying emissions levels that the projects must be designed
to and reasonably expected to achieve. The milestones shall get
more restrictive through the life of the program. The
milestones shall be designed to achieve by 2010 projects able--
(A) to remove 97 percent of sulfur dioxide;
(B) to emit no more than .08 lbs of NOx per million
BTU;
(C) to achieve substantial reductions in mercury
emissions; and
(D) to achieve a thermal efficiency of 45 percent
(higher heating value).
(c) Financial Criteria.--The Secretary shall not provide a funding
award under this division unless the recipient has documented to the
satisfaction of the Secretary that--
(1) the award recipient is financially viable without the
receipt of additional Federal funding;
(2) the recipient will provide sufficient information to
the Secretary for the Secretary to ensure that the award funds
are spent efficiently and effectively; and
(3) a market exists for the technology being demonstrated
or applied, as evidenced by statements of interest in writing
from potential purchasers of the technology.
(d) Financial Assistance.--The Secretary shall provide financial
assistance to projects that meet the requirements of subsections (a),
(b), and (c) and 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;
and
(3) 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 the enactment
of this Act.
(e) Federal Share.--The Federal share of the cost of a coal or
related technology project funded by the Secretary shall not exceed 50
percent.
(f) Applicability.--Neither the use of any particular technology,
nor the achievement of any emission reduction, by any facility
receiving assistance under this title shall be taken into account for
purposes of making any determination under the Clean Air Act in
applying the provisions of that Act to a facility not receiving
assistance under this title, including any determination concerning new
source performance standards, lowest achievable emission rate, best
available control technology, or any other standard, requirement, or
limitation.
SEC. 5007. STUDY.
(a) In General.--Not later than 1 year after the date of the
enactment of this Act, and once every 2 years thereafter through 2016,
the Secretary, in cooperation with other appropriate Federal agencies,
shall transmit to the Committee on Energy and Commerce and the
Committee on Science of the House of Representatives, and to the
Senate, a report containing the results of a study to--
(1) identify efforts (and the costs and periods of time
associated with those efforts) that, by themselves or in
combination with other efforts, may be capable of achieving the
cost and performance goals;
(2) develop recommendations for the Department of Energy to
promote the efforts identified under paragraph (1); and
(3) 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 5004(b).
SEC. 5008. CLEAN COAL CENTERS OF EXCELLENCE.
As part of the program authorized in section 5003, the Secretary
shall award competitive, merit-based grants to universities for the
establishment of Centers of Excellence for Energy Systems of the
Future. The Secretary shall provide grants to universities that can
show the greatest potential for advancing new clean coal technologies.
DIVISION F
SEC. 6001. SHORT TITLE.
This division may be cited as the ``Energy Security Act''.
TITLE I--GENERAL PROTECTIONS FOR ENERGY SUPPLY AND SECURITY
SEC. 6101. STUDY OF EXISTING RIGHTS-OF-WAY ON FEDERAL LANDS TO
DETERMINE CAPABILITY TO SUPPORT NEW PIPELINES OR OTHER
TRANSMISSION FACILITIES.
(a) In General.--Within 1 year after the date of the enactment of
this Act, the head of each Federal agency that has authorized a right-
of-way across Federal lands for transportation of energy supplies or
transmission of electricity shall review each such right-of-way and
submit a report to the Secretary of Energy and the Chairman of the
Federal Energy Regulatory Commission regarding--
(1) whether the right-of-way can be used to support new or
additional capacity; and
(2) what modifications or other changes, if any, would be
necessary to accommodate such additional capacity.
(b) Consultations and Considerations.--In performing the review,
the head of each agency shall--
(1) consult with agencies of State, tribal, or local units
of government as appropriate; and
(2) consider whether safety or other concerns related to
current uses might preclude the availability of a right-of-way
for additional or new transportation or transmission
facilities, and set forth those considerations in the report.
SEC. 6102. INVENTORY OF ENERGY PRODUCTION POTENTIAL OF ALL FEDERAL
PUBLIC LANDS.
(a) Inventory Requirement.--The Secretary of the Interior, in
consultation with the Secretary of Agriculture and the Secretary of
Energy, shall conduct an inventory of the energy production potential
of all Federal public lands other than national park lands and lands in
any wilderness area, with respect to wind, solar, coal, and geothermal
power production.
(b) Limitations.--
(1) In general.--The Secretary shall not include in the
inventory under this section the matters to be identified in
the inventory under section 604 of the Energy Act of 2000 (43
U.S.C. 6217).
(2) Wind and solar power.--The inventory under this
section--
(A) with respect to wind power production shall be
limited to sites having a mean average wind speed--
(i) exceeding 12.5 miles per hour at a
height of 33 feet; and
(ii) exceeding 15.7 miles per hour at a
height of 164 feet; and
(B) with respect to solar power production shall be
limited to areas rated as receiving 450 watts per
square meter or greater.
(c) Examination of Restrictions and Impediments.--The inventory
shall identify the extent and nature of any restrictions or impediments
to the development of such energy production potential.
(d) Geothermal Power.--The inventory shall include an update of the
1978 Assessment of Geothermal Resources by the United States Geological
Survey.
(e) Completion and Updating.--The Secretary--
(1) shall complete the inventory by not later than 2 years
after the date of the enactment of this Act; and
(2) shall update the inventory regularly thereafter.
(f) Reports.--The Secretary shall submit to the Committee on
Resources of the House of Representatives and to the Committee on
Energy and Natural Resources of the Senate and make publicly
available--
(1) a report containing the inventory under this section,
by not later than 2 years after the effective date of this
section; and
(2) each update of such inventory.
SEC. 6103. 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
fuel cells, combined heat and power, and distributed generation
(including small-scale renewable energy).
(b) Report to Congress.--No later than 18 months after date of the
enactment of this Act, each agency shall provide a report to the
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 this manner no less frequently than every
5 years, and report their findings to the 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. 6104. INTERAGENCY AGREEMENT ON ENVIRONMENTAL REVIEW OF INTERSTATE
NATURAL GAS PIPELINE PROJECTS.
(a) In General.--The Secretary of Energy, in coordination with the
Federal Energy Regulatory Commission, shall establish an administrative
interagency task force to develop an interagency agreement to expedite
and facilitate the environmental review and permitting of interstate
natural gas pipeline projects.
(b) Task Force Members.--The task force shall include a
representative of each of the Bureau of Land Management, the United
States Fish and Wildlife Service, the Army Corps of Engineers, the
Forest Service, the Environmental Protection Agency, the Advisory
Council on Historic Preservation, and such other agencies as the
Secretary of Energy and the Federal Energy Regulatory Commission
consider appropriate.
(c) Terms of Agreement.--The interagency agreement shall require
that agencies complete their review of interstate pipeline projects
within a specific period of time after referral of the matter by the
Federal Energy Regulatory Commission.
(d) Submittal of Agreement.--The Secretary of Energy shall submit a
final interagency agreement under this section to the Congress by not
later than 6 months after the effective date of this section.
SEC. 6105. ENHANCING ENERGY EFFICIENCY IN MANAGEMENT OF FEDERAL LANDS.
(a) Sense of the Congress.--It is the sense of Congress that
Federal land managing agencies should enhance the use of energy
efficient technologies in the management of natural resources.
(b) Energy Efficient Buildings.--To the extent economically
practicable, the Secretary of the Interior and the Secretary of
Agriculture shall seek to incorporate energy efficient technologies in
public and administrative buildings associated with management of the
National Park System, National Wildlife Refuge System, National Forest
System, and other public lands and resources managed by such
Secretaries.
(c) Energy Efficient Vehicles.--To the extent economically
practicable, the Secretary of the Interior and the Secretary of
Agriculture shall seek to use energy efficient motor vehicles,
including vehicles equipped with biodiesel or hybrid engine
technologies, in the management of the National Park System, National
Wildlife Refuge System, and other public lands and managed by the
Secretaries.
SEC. 6106. EFFICIENT INFRASTRUCTURE DEVELOPMENT.
(a) In General.--The Secretary of Energy and the Chairman of the
Federal Energy Regulatory Commission shall jointly undertake a study of
the location and extent of anticipated demand growth for natural gas
consumption in the Western States, herein defined as the area covered
by the Western System Coordinating Council.
(b) Contents.--The study under subsection (a) shall include the
following:
(1) A review of natural gas demand forecasts by Western
State officials, such as the California Energy Commission and
the California Public Utilities Commission, which indicate the
forecasted levels of demand for natural gas and the geographic
distribution of that forecasted demand.
(2) A review of the locations of proposed new natural gas-
fired electric generation facilities currently in the approval
process in the Western States, and their forecasted impact on
natural gas demand.
(3) A review of the locations of existing interstate
natural gas transmission pipelines, and interstate natural gas
pipelines currently in the planning stage or approval process,
throughout the Western States.
(4) A review of the locations and capacity of intrastate
natural gas pipelines in the Western States.
(5) Recommendations for the coordination of the development
of the natural gas infrastructure indicated in paragraphs (1)
through (4).
(c) Report.--The Secretary shall report the findings and
recommendations resulting from the study required by this section to
the Committee on Energy and Commerce of the House of Representatives
and to the Committee on Energy and Natural Resources of the Senate no
later than 6 months after the date of the enactment of this Act. The
Chairman of the Federal Energy Regulatory Commission shall report on
how the Commission will factor these results into its review of
applications of interstate pipelines within the Western States to the
Committee on Energy and Commerce of the House of Representatives and to
the Committee on Energy and Natural Resources of the Senate no later
than 6 months after the date of the enactment of this Act.
TITLE II--OIL AND GAS DEVELOPMENT
Subtitle A--Offshore Oil and Gas
SEC. 6201. SHORT TITLE.
This subtitle may be referred to as the ``Royalty Relief Extension
Act of 2001''.
SEC. 6202. LEASE SALES IN WESTERN AND CENTRAL PLANNING AREA OF THE GULF
OF MEXICO.
(a) In General.--For all tracts located in water depths of greater
than 200 meters in the Western and Central Planning Area of the Gulf of
Mexico, including that portion of the Eastern Planning Area of the Gulf
of Mexico encompassing whole lease blocks lying west of 87 degrees, 30
minutes West longitude, any oil or gas lease sale under the Outer
Continental Shelf Lands Act occurring within 2 years after the date of
the enactment of this Act shall use the bidding system authorized in
section 8(a)(1)(H) of the Outer Continental Shelf Lands Act (30 U.S.C.
1337(a)(1)(H)), except that the suspension of royalties shall be set at
a volume of not less than the following:
(1) 5 million barrels of oil equivalent for each lease in
water depths of 400 to 800 meters.
(2) 9 million barrels of oil equivalent for each lease in
water depths of 800 to 1,600 meters.
(3) 12 million barrels of oil equivalent for each lease in
water depths greater than 1,600 meters.
(b) Relationship to Existing Authority.--Except as expressly
provided in this section, nothing in this section is intended to limit
the authority of the Secretary of the Interior under the Outer
Continental Shelf Lands Act (43 U.S.C. 1301 et seq.) to provide royalty
suspension.
SEC. 6203. SAVINGS CLAUSE.
Nothing in this subtitle shall be construed to affect any offshore
pre-leasing, leasing, or development moratorium, including any
moratorium applicable to the Eastern Planning Area of the Gulf of
Mexico located off the Gulf Coast of Florida.
SEC. 6204. ANALYSIS OF GULF OF MEXICO FIELD SIZE DISTRIBUTION,
INTERNATIONAL COMPETITIVENESS, AND INCENTIVES FOR
DEVELOPMENT.
(a) In General.--The Secretary of the Interior and the Secretary of
Energy shall enter into appropriate arrangements with the National
Academy of Sciences to commission the Academy to perform the following:
(1) Conduct an analysis and review of existing Gulf of
Mexico oil and natural gas resource assessments, including--
(A) analysis and review of assessments recently
performed by the Minerals Management Service, the 1999
National Petroleum Council Gas Study, the Department of
Energy's Offshore Marginal Property Study, and the
Advanced Resources International, Inc. Deepwater Gulf
of Mexico model; and
(B) evaluation and comparison of the accuracy of
assumptions of the existing assessments with respect to
resource field size distribution, hydrocarbon
potential, and scenarios for leasing, exploration, and
development.
(2) Evaluate the lease terms and conditions offered by the
Minerals Management Service for Lease Sale 178, and compare the
financial incentives offered by such terms and conditions to
financial incentives offered by the terms and conditions that
apply under leases for other offshore areas that are competing
for the same limited offshore oil and gas exploration and
development capital, including offshore areas of West Africa
and Brazil.
(3) Recommend what level of incentives for all water depths
are appropriate in order to ensure that the United States
optimizes the domestic supply of oil and natural gas from the
offshore areas of the Gulf of Mexico that are not subject to
current leasing moratoria. Recommendations under this paragraph
should be made in the context of the importance of the oil and
natural gas resources of the Gulf of Mexico to the future
energy and economic needs of the United States.
(b) Report.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of the Interior shall submit a
report to the Committee on Resources in the House of Representatives
and the Committee on Energy and Natural Resources in the Senate,
summarizing the findings of the National Academy of Sciences pursuant
to subsection (a) and providing recommendations of the Secretary for
new policies or other actions that could help to further increase oil
and natural gas production from the Gulf of Mexico.
Subtitle B--Improvements to Federal Oil and Gas Management
SEC. 6221. SHORT TITLE.
This subtitle may be cited as the ``Federal Oil and Gas Lease
Management Improvement Demonstration Program Act of 2001''.
SEC. 6222. STUDY OF IMPEDIMENTS TO EFFICIENT LEASE OPERATIONS.
(a) In General.--The Secretary of the Interior and the Secretary of
Agriculture shall jointly undertake a study of the impediments to
efficient oil and gas leasing and operations on Federal onshore lands
in order to identify means by which unnecessary impediments to the
expeditious exploration and production of oil and natural gas on such
lands can be removed.
(b) Contents.--The study under subsection (a) shall include the
following:
(1) A review of the process by which Federal land managers
accept or reject an offer to lease, including the timeframes in
which such offers are acted upon, the reasons for any delays in
acting upon such offers, and any recommendations for expediting
the response to such offers.
(2) A review of the approval process for applications for
permits to drill, including the timeframes in which such
applications are approved, the impact of compliance with other
Federal laws on such timeframes, any other reasons for delays
in making such approvals, and any recommendations for
expediting such approvals.
(3) A review of the approval process for surface use plans
of operation, including the timeframes in which such
applications are approved, the impact of compliance with other
Federal laws on such timeframes, any other reasons for delays
in making such approvals, and any recommendations for
expediting such approvals.
(4) A review of the process for administrative appeal of
decisions or orders of officers or employees of the Bureau of
Land Management with respect to a Federal oil or gas lease,
including the timeframes in which such appeals are heard and
decided, any reasons for delays in hearing or deciding such
appeals, and any recommendations for expediting the appeals
process.
(c) Report.--The Secretaries shall report the findings and
recommendations resulting from the study required by this section to
the Committee on Resources of the House of Representatives and to the
Committee on Energy and Natural Resources of the Senate no later than 6
months after the date of the enactment of this Act.
SEC. 6223. ELIMINATION OF UNWARRANTED DENIALS AND STAYS.
(a) In General.--The Secretary shall ensure that unwarranted
denials and stays of lease issuance and unwarranted restrictions on
lease operations are eliminated from the administration of oil and
natural gas leasing on Federal land.
(b) Preparation of Leasing Plan or Analysis.--In preparing a
management plan or leasing analysis for oil or natural gas leasing on
Federal lands administered by the Bureau of Land Management or the
Forest Service, the Secretary concerned shall--
(1) identify and review the restrictions on surface use and
operations imposed under the laws (including regulations) of
the State in which the lands are located;
(2) consult with the appropriate State agency regarding the
reasons for the State restrictions identified under paragraph
(1);
(3) identify any differences between the State restrictions
identified under paragraph (1) and any restrictions on surface
use and operations that would apply under the lease; and
(4) prepare and provide upon request a written explanation
of such differences.
(c) Rejection of Offer To Lease.--
(1) In general.--If the Secretary rejects an offer to lease
Federal lands for oil or natural gas development on the ground
that the land is unavailable for oil and natural gas leasing,
the Secretary shall provide a written, detailed explanation of
the reasons the land is unavailable for leasing.
(2) Previous resource management decision.--If the
determination of unavailability is based on a previous resource
management decision, the explanation shall include a careful
assessment of whether the reasons underlying the previous
decision are still persuasive.
(3) Segregation of available land from unavailable land.--
The Secretary may not reject an offer to lease Federal land for
oil and natural gas development that is available for such
leasing on the ground that the offer includes land unavailable
for leasing. The Secretary shall segregate available land from
unavailable land, on the offeror's request following notice by
the Secretary, before acting on the offer to lease.
(d) Disapproval or Required Modification of Surface Use Plans of
Operations and Application for Permit To Drill.--The Secretary shall
provide a written, detailed explanation of the reasons for disapproving
or requiring modifications of any surface use plan of operations or
application for permit to drill with respect to oil or natural gas
development on Federal lands.
(e) Preservation of Federal Authority.--Nothing in this section or
in any identification, review, or explanation prepared under this
section shall be construed--
(1) to limit the authority of the Federal Government to
impose lease stipulations, restrictions, requirements, or other
terms that are different than those that apply under State law;
or
(2) to affect the procedures that apply to judicial review
of actions taken under this subsection.
SEC. 6224. LIMITATION ON COST RECOVERY FOR APPLICATIONS.
Notwithstanding sections 304 and 504 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1734, 1764) and section 9701 of title
31, United States Code, the Secretary shall not recover the Secretary's
costs with respect to applications and other documents relating to oil
and gas leases.
SEC. 6225. CONSULTATION WITH SECRETARY OF AGRICULTURE.
Section 17(h) of the Mineral Leasing Act (30 U.S.C. 226(h)) is
amended to read as follows:
``(h)(1) In issuing any lease on National Forest System lands
reserved from the public domain, the Secretary of the Interior shall
consult with the Secretary of Agriculture in determining stipulations
on surface use under the lease.
``(2)(A) A lease on lands referred to in paragraph (1) may not be
issued if the Secretary of Agriculture determines, after consultation
under paragraph (1) and consultation with the Regional Forester having
administrative jurisdiction over the National Forest System Lands
concerned, that the terms and conditions of the lease, including any
prohibition on surface occupancy for lease operations, will not be
sufficient to adequately protect such lands under the National Forest
Management Act of 1976 (16 U.S.C. 1600 et seq.).
``(B) The authority of the Secretary of Agriculture under this
paragraph may be delegated only to the Undersecretary of Agriculture
for Natural Resources and Environment.
``(3) The Secretary of Agriculture shall include in the record of
decision for a determination under paragraph (2)(A)--
``(A) any written statement regarding the determination
that is prepared by a Regional Forester consulted by the
Secretary under paragraph (2)(A) regarding the determination;
or
``(B) an explanation why such a statement by the Regional
Forester is not included.
Subtitle C--Miscellaneous
SEC. 6231. OFFSHORE SUBSALT DEVELOPMENT.
Section 5 of the Outer Continental Shelf Lands Act of 1953 (43
U.S.C. 1334) is amended by adding at the end the following:
``(k) Suspension of Operations for Subsalt Exploration.--
Notwithstanding any other provision of law or regulation, to prevent
waste caused by the drilling of unnecessary wells and to facilitate the
discovery of additional hydrocarbon reserves, the Secretary may grant a
request for a suspension of operations under any lease to allow the
reprocessing and reinterpretation of geophysical data to identify and
define drilling objectives beneath allocthonus salt sheets.''.
SEC. 6232. PROGRAM ON OIL AND GAS ROYALTIES IN KIND.
(a) Applicability of Section.--Notwithstanding any other provision
of law, the provisions of this section shall apply to all royalty in
kind accepted by the Secretary of the Interior under any Federal oil or
gas lease or permit under section 36 of the Mineral Leasing Act (30
U.S.C. 192), section 27 of the Outer Continental Shelf Lands Act (43
U.S.C. 1353), or any other mineral leasing law, in the period beginning
on the date of the enactment of this Act through September 30, 2006.
(b) Terms and Conditions.--All royalty accruing to the United
States under any Federal oil or gas lease or permit under the Mineral
Leasing Act (30 U.S.C. 181 et seq.) or the Outer Continental Shelf
Lands Act (43 U.S.C. 1331 et seq.) shall, on the demand of the
Secretary of the Interior, be paid in oil or gas. If the Secretary of
the Interior makes such a demand, the following provisions apply to
such payment:
(1) Delivery by, or on behalf of, the lessee of the royalty
amount and quality due under the lease satisfies the lessee's
royalty obligation for the amount delivered, except that
transportation and processing reimbursements paid to, or
deductions claimed by, the lessee shall be subject to review
and audit.
(2) Royalty production shall be placed in marketable
condition by the lessee at no cost to the United States.
(3) The Secretary of the Interior may--
(A) sell or otherwise dispose of any royalty oil or
gas taken in kind (other than oil or gas taken under
section 27(a)(3) of the Outer Continental Shlef Lands
Act (43 U.S.C. 1353(a)(3)) for not less than the market
price; and
(B) transport or process any oil or gas royalty
taken in kind.
(4) The Secretary of the Interior may, notwithstanding
section 3302 of title 31, United States Code, retain and use a
portion of the revenues from the sale of oil and gas royalties
taken in kind that otherwise would be deposited to
miscellaneous receipts, without regard to fiscal year
limitation, or may use royalty production, to pay the cost of--
(A) transporting the oil or gas,
(B) processing the gas, or
(C) disposing of the oil or gas.
(5) The Secretary may not use revenues from the sale of oil
and gas royalties taken in kind to pay for personnel, travel,
or other administrative costs of the Federal Government.
(c) Reimbursement of Cost.--If the lessee, pursuant to an agreement
with the United States or as provided in the lease, processes the
royalty gas or delivers the royalty oil or gas at a point not on or
adjacent to the lease area, the Secretary of the Interior shall--
(1) reimburse the lessee for the reasonable costs of
transportation (not including gathering) from the lease to the
point of delivery or for processing costs; or
(2) at the discretion of the Secretary of the Interior,
allow the lessee to deduct such transportation or processing
costs in reporting and paying royalties in value for other
Federal oil and gas leases.
(d) Benefit to the United States Required.--The Secretary may
receive oil or gas royalties in kind only if the Secretary determines
that receiving such royalties provides benefits to the United States
greater than or equal to those that would be realized under a
comparable royalty in value program.
(e) Report to Congress.--For each of the fiscal years 2002 through
2006 in which the United States takes oil or gas royalties in kind from
production in any State or from the Outer Continental Shelf, excluding
royalties taken in kind and sold to refineries under subsection (h),
the Secretary of the Interior shall provide a report to the Congress
describing--
(1) the methodology or methodologies used by the Secretary
to determine compliance with subsection (d), including
performance standards for comparing amounts received by the
United States derived from such royalties in kind to amounts
likely to have been received had royalties been taken in value;
(2) an explanation of the evaluation that led the Secretary
to take royalties in kind from a lease or group of leases,
including the expected revenue effect of taking royalties in
kind;
(3) actual amounts received by the United States derived
from taking royalties in kind, and costs and savings incurred
by the United States associated with taking royalties in kind;
and
(4) an evaluation of other relevant public benefits or
detriments associated with taking royalties in kind.
(f) Deduction of Expenses.--
(1) In general.--Before making payments under section 35 of
the Mineral Leasing Act (30 U.S.C. 191) or section 8(g) of the
Outer Continental Shelf Lands Act (30 U.S.C. 1337(g)) of
revenues derived from the sale of royalty production taken in
kind from a lease, the Secretary of the Interior shall deduct
amounts paid or deducted under subsections (b)(4) and (c), and
shall deposit such amounts to miscellaneous receipts.
(2) Accounting for deductions.--If the Secretary of the
Interior allows the lessee to deduct transportation or
processing costs under subsection (c), the Secretary may not
reduce any payments to recipients of revenues derived from any
other Federal oil and gas lease as a consequence of that
deduction.
(g) Consultation With States.--The Secretary of the Interior--
(1) shall consult with a State before conducting a royalty
in kind program under this title within the State, and may
delegate management of any portion of the Federal royalty in
kind program to such State except as otherwise prohibited by
Federal law; and
(2) shall consult annually with any State from which
Federal oil or gas royalty is being taken in kind to ensure to
the maximum extent practicable that the royalty in kind program
provides revenues to the State greater than or equal to those
which would be realized under a comparable royalty in value
program.
(h) Provisions for Small Refineries.--
(1) Preference.--If the Secretary of the Interior
determines that sufficient supplies of crude oil are not
available in the open market to refineries not having their own
source of supply for crude oil, the Secretary may grant
preference to such refineries in the sale of any royalty oil
accruing or reserved to the United States under Federal oil and
gas leases issued under any mineral leasing law, for processing
or use in such refineries at private sale at not less than the
market price.
(2) Proration among refineries in production area.--In
disposing of oil under this subsection, the Secretary of the
Interior may, at the discretion of the Secretary, prorate such
oil among such refineries in the area in which the oil is
produced.
(i) Disposition to Federal Agencies.--
(1) Onshore royalty.--Any royalty oil or gas taken by the
Secretary in kind from onshore oil and gas leases may be sold
at not less than the market price to any department or agency
of the United States.
(2) Offshore royalty.--Any royalty oil or gas taken in kind
from Federal oil and gas leases on the Outer Continental Shelf
may be disposed of only under section 27 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1353).
(j) Preference for Federal Low-Income Energy Assistance Programs.--
In disposing of royalty oil or gas taken in kind under this section,
the Secretary may grant a preference to any person, including any State
or Federal agency, for the purpose of providing additional resources to
any Federal low-income energy assistance program.
SEC. 6233. MARGINAL WELL PRODUCTION INCENTIVES.
To enhance the economics of marginal oil and gas production by
increasing the ultimate recovery from marginal wells when the cash
price of West Texas Intermediate crude oil, as posted on the Dow Jones
Commodities Index chart, is less than $15 per barrel for 180
consecutive pricing days or when the price of natural gas delivered at
Henry Hub, Louisiana, is less than $2.00 per million British thermal
units for 180 consecutive days, the Secretary shall reduce the royalty
rate as production declines for--
(1) onshore oil wells producing less than 30 barrels per
day;
(2) onshore gas wells producing less than 120 million
British thermal units per day;
(3) offshore oil wells producing less than 300 barrels of
oil per day; and
(4) offshore gas wells producing less than 1,200 million
British thermal units per day.
SEC. 6234. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES, DOCUMENTATION, AND
STUDIES.
(a) In General.--The Mineral Leasing Act (30 U.S.C. 181 et seq.) is
amended by inserting after section 37 the following:
``reimbursement for costs of certain analyses, documentation, and
studies
``Sec. 38. (a) In General.--The Secretary of the Interior may,
through royalty credits, reimburse a person who is a lessee, operator,
operating rights owner, or applicant for an oil or gas lease under this
Act for amounts paid by the person for preparation by the Secretary (or
a contractor or other person selected by the Secretary) of any project-
level analysis, documentation, or related study required under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with
respect to the lease.
``(b) Conditions.--The Secretary may provide reimbursement under
subsection (b) only if--
``(1) adequate funding to enable the Secretary to timely
prepare the analysis, documentation, or related study is not
appropriated;
``(2) the person paid the costs voluntarily; and
``(3) the person maintains records of its costs in
accordance with regulations prescribed by the Secretary.''.
(b) Application.--The amendments made by this section shall apply
with respect to any lease entered into before, on, or after the date of
the enactment of this Act.
(c) Deadline for Regulations.--The Secretary shall issue
regulations implementing the amendments made by this section by not
later than 90 days after the date of the enactment of this Act.
SEC. 6235. ENCOURAGEMENT OF STATE AND PROVINCIAL PROHIBITIONS ON OFF-
SHORE DRILLING IN THE GREAT LAKES.
(a) Findings.--The Congress finds the following:
(1) The water resources of the Great Lakes Basin are
precious public natural resources, shared and held in trust by
the States of Illinois, Indiana, Michigan, Minnesota, New York,
Ohio, Pennsylvania, and Wisconsin, and the Canadian Province of
Ontario.
(2) The environmental dangers associated with off-shore
drilling in the Great Lakes for oil and gas outweigh the
potential benefits of such drilling.
(3) In accordance with the Submerged Lands Act (43 U.S.C.
1301 et seq.), each State that borders any of the Great Lakes
has authority over the area between that State's coastline and
the boundary of Canada or another State.
(4) The States of Illinois, Michigan, New York,
Pennsylvania, and Wisconsin each have a statutory prohibition
of off-shore drilling in the Great Lakes for oil and gas.
(5) The States of Indiana, Minnesota, and Ohio do not have
such a prohibition.
(6) The Canadian Province of Ontario does not have such a
prohibition, and drilling for and production of gas occurs in
the Canadian portion of Lake Erie.
(b) Encouragement of State and Provincial Prohibitions.--The
Congress encourages--
(1) the States of Illinois, Michigan, New York,
Pennsylvania, and Wisconsin to continue to prohibit off-shore
drilling in the Great Lakes for oil and gas;
(2) the States of Indiana, Minnesota, and Ohio and the
Canadian Province of Ontario to enact a prohibition of such
drilling; and
(3) the Canadian Province of Ontario to require the
cessation of any such drilling and any production resulting
from such drilling.
TITLE III--GEOTHERMAL ENERGY DEVELOPMENT
SEC. 6301. ROYALTY REDUCTION AND RELIEF.
(a) Royalty Reduction.--Section 5(a) of the Geothermal Steam Act of
1970 (30 U.S.C. 1004(a)) is amended by striking ``not less than 10 per
centum or more than 15 per centum'' and inserting ``not more than 8 per
centum''.
(b) Royalty Relief.--
(1) In general.--Notwithstanding section 5 of the
Geothermal Steam Act of 1970 (30 U.S.C. 1004(a)) and any
provision of any lease under that Act, no royalty is required
to be paid--
(A) under any qualified geothermal energy lease
with respect to commercial production of heat or energy
from a facility that begins such production in the 5-
year period beginning on the date of the enactment of
this Act; or
(B) on qualified expansion geothermal energy.
(2) 3-year application.--Paragraph (1) applies only to
commercial production of heat or energy from a facility in the
first 3 years of such production.
(c) Definitions.--In this section:
(1) Qualified expansion geothermal energy.--The term
``qualified expansion geothermal energy''--
(A) subject to subparagraph (B), means geothermal
energy produced from a generation facility for which
the rated capacity is increased by more than 10 percent
as a result of expansion of the facility carried out in
the 5-year period beginning on the date of the
enactment of this Act; and
(B) does not include the rated capacity of the
generation facility on the date of the enactment of
this Act.
(2) Qualified geothermal energy lease.--The term
``qualified geothermal energy lease'' means a lease under the
Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.)--
(A) that was executed before the end of the 5-year
period beginning on the date of the enactment of this
Act; and
(B) under which no commercial production of any
form of heat or energy occurred before the date of the
enactment of this Act.
SEC. 6302. EXEMPTION FROM ROYALTIES FOR DIRECT USE OF LOW TEMPERATURE
GEOTHERMAL ENERGY RESOURCES.
Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) is
amended--
(1) in paragraph (c) by redesignating subparagraphs (1) and
(2) as subparagraphs (A) and (B);
(2) by redesignating paragraphs (a) through (d) in order as
paragraphs (1) through (4);
(3) by inserting ``(a) In General.--'' after ``Sec. 5.'';
and
(4) by adding at the end the following new subsection:
``(b) Exemption for Use of Low Temperature Resources.--
``(1) In general.--In lieu of any royalty or rental under
subsection (a), a lease for qualified development and direct
utilization of low temperature geothermal resources shall
provide for payment by the lessee of an annual fee of not less
than $100, and not more than $1,000, in accordance with the
schedule issued under paragraph (2).
``(2) Schedule.--The Secretary shall issue a schedule of
fees under this section under which a fee is based on the scale
of development and utilization to which the fee applies.
``(3) Definitions.--In this subsection:
``(A) Low temperature geothermal resources.--The
term `low temperature geothermal resources' means
geothermal steam and associated geothermal resources
having a temperature of less than 195 degrees
Fahrenheit.
``(B) Qualified development and direct
utilization.--The term `qualified development and
direct utilization' means development and utilization
in which all products of geothermal resources, other
than any heat utilized, are returned to the geothermal
formation from which they are produced.''.
SEC. 6303. AMENDMENTS RELATING TO LEASING ON FOREST SERVICE LANDS.
The Geothermal Steam Act of 1970 is amended--
(1) in section 15(b) (30 U.S.C. 1014(b))--
(A) by inserting ``(1)'' after ``(b)''; and
(B) in paragraph (1) (as designated by subparagraph
(A) of this paragraph) in the first sentence--
(i) by striking ``with the consent of,
and'' and inserting ``after consultation with
the Secretary of Agriculture and''; and
(ii) by striking ``the head of that
Department'' and inserting ``the Secretary of
Agriculture''; and
(2) by adding at the end the following:
``(2)(A) A geothermal lease for lands withdrawn or acquired in aid
of functions of the Department of Agriculture may not be issued if the
Secretary of Agriculture, after the consultation required by paragraph
(1) and consultation with any Regional Forester having administrative
jurisdiction over the lands concerned, determines that no terms or
conditions, including a prohibition on surface occupancy for lease
operations, would be sufficient to adequately protect such lands under
the National Forest Management Act of 1976 (16 U.S.C. 1600 et seq.).
``(B) The authority of the Secretary of Agriculture under this
paragraph may be delegated only to the Undersecretary of Agriculture
for Natural Resources and Environment.
``(3) The Secretary of Agriculture shall include in the record of
decision for a determination under paragraph (2)(A)--
``(A) any written statement regarding the determination
that is prepared by a Regional Forester consulted by the
Secretary under paragraph (2)(A) regarding the determination;
or
``(B) an explanation why such a statement by the Regional
Forester is not included.
SEC. 6304. DEADLINE FOR DETERMINATION ON PENDING NONCOMPETITIVE LEASE
APPLICATIONS.
Not later than 90 days after the date of the enactment of this Act,
the Secretary of the Interior shall, with respect to each application
pending on the date of the enactment of this Act for a lease under the
Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.), issue a final
determination of--
(1) whether or not to conduct a lease sale by competitive
bidding; and
(2) whether or not to award a lease without competitive
bidding.
SEC. 6305. OPENING OF PUBLIC LANDS UNDER MILITARY JURISDICTION.
(a) In General.--Except as otherwise provided in the Geothermal
Steam Act of 1970 (30 U.S.C. 1001 et seq.) and other provisions of
Federal law applicable to development of geothermal energy resources
within public lands, all public lands under the jurisdiction of a
Secretary of a military department shall be open to the operation of
such laws and development and utilization of geothermal steam and
associated geothermal resources, as that term is defined in section 2
of the Geothermal Steam Act of 1970 (30 U.S.C. 1001), without the
necessity for further action by the Secretary or the Congress.
(b) Conforming Amendment.--Section 2689 of title 10, United States
Code, is amended by striking ``including public lands,'' and inserting
``other than public lands,''.
(c) Treatment of Existing Leases.--Upon the expiration of any lease
in effect on the date of the enactment of this Act of public lands
under the jurisdiction of a military department for the development of
any geothermal resource, such lease may, at the option of the lessee--
(1) be treated as a lease under the Geothermal Steam Act of
1970 (30 U.S.C. 1001 et seq.), and be renewed in accordance
with such Act; or
(2) be renewed in accordance with the terms of the lease,
if such renewal is authorized by such terms.
(d) Regulations.--The Secretary of the Interior, with the advice
and concurrence of the Secretary of the military department concerned,
shall prescribe such regulations to carry out this section as may be
necessary. Such regulations shall contain guidelines to assist in
determining how much, if any, of the surface of any lands opened
pursuant to this section may be used for purposes incident to
geothermal energy resources development and utilization.
(e) Closure for Purposes of National Defense or Security.--In the
event of a national emergency or for purposes of national defense or
security, the Secretary of the Interior, at the request of the
Secretary of the military department concerned, shall close any lands
that have been opened to geothermal energy resources leasing pursuant
to this section.
SEC. 6306. APPLICATION OF AMENDMENTS.
The amendments made by this title apply with respect to any lease
executed before, on, or after the date of the enactment of this Act.
SEC. 6307. REVIEW AND REPORT TO CONGRESS.
The Secretary of the Interior shall promptly review and report to
the Congress regarding the status of all moratoria on and withdrawals
from leasing under the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et
seq.) of known geothermal resources areas (as that term is defined in
section 2 of that Act (30 U.S.C. 1001), specifying for each such area
whether the basis for such moratoria or withdrawal still applies.
SEC. 6308. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES, DOCUMENTATION, AND
STUDIES.
(a) In General.--The Geothermal Steam Act of 1970 (30 U.S.C. 1001
et seq.) is amended by adding at the end the following:
``reimbursement for costs of certain analyses, documentation, and
studies
``Sec. 38. (a) In General.--The Secretary of the Interior may,
through royalty credits, reimburse a person who is a lessee, operator,
operating rights owner, or applicant for a lease under this Act for
amounts paid by the person for preparation by the Secretary (or a
contractor or other person selected by the Secretary) of any project-
level analysis, documentation, or related study required under the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) with
respect to the lease.
``(b) Conditions.--The Secretary shall may provide reimbursement
under subsection (a) only if--
``(1) adequate funding to enable the Secretary to timely
prepare the analysis, documentation, or related study is not
appropriated;
``(2) the person paid the costs voluntarily; and
``(3) the person maintains records of its costs in
accordance with regulations prescribed by the Secretary.''.
(b) Application.--The amendments made by this section shall apply
with respect to any lease entered into before, on, or after the date of
the enactment of this Act.
(c) Deadline for Regulations.--The Secretary shall issue
regulations implementing the amendments made by this section by not
later than 90 days after the date of the enactment of this Act.
TITLE IV--HYDROPOWER
SEC. 6401. STUDY AND REPORT ON INCREASING ELECTRIC POWER PRODUCTION
CAPABILITY OF EXISTING FACILITIES.
(a) In General.--The Secretary of the Interior shall conduct a
study of the potential for increasing electric power production
capability at existing facilities under the administrative jurisdiction
of the Secretary.
(b) Content.--The study under this section shall include
identification and description in detail of each facility that is
capable, with or without modification, of producing additional
hydroelectric power, including estimation of the existing potential for
the facility to generate hydroelectric power.
(c) Report.--The Secretary shall submit to the Congress a report on
the findings, conclusions, and recommendations of the study under this
section by not later than 12 months after the date of the enactment of
this Act. The Secretary shall include in the report the following:
(1) The identifications, descriptions, and estimations
referred to in subsection (b).
(2) A description of activities the Secretary is currently
conducting or considering, or that could be considered, to
produce additional hydroelectric power from each identified
facility.
(3) A summary of action that has already been taken by the
Secretary to produce additional hydroelectric power from each
identified facility.
(4) The costs to install, upgrade, or modify equipment or
take other actions to produce additional hydroelectric power
from each identified facility.
(5) The benefits that would be achieved by such
installation, upgrade, modification, or other action, including
quantified estimates of any additional energy or capacity from
each facility identified under subsection (b).
(6) A description of actions that are planned, underway, or
might reasonably be considered to increase hydroelectric power
production by replacing turbine runners.
(7) A description of actions that are planned, underway, or
might reasonably be considered to increase hydroelectric power
production by performing generator uprates and rewinds.
(8) The impact of increased hydroelectric power production
on irrigation, fish, wildlife, Indian tribes, river health,
water quality, navigation, recreation, fishing, and flood
control.
(9) Any additional recommendations the Secretary considers
advisable to increase hydroelectric power production from, and
reduce costs and improve efficiency at, facilities under the
jurisdiction of the Secretary.
SEC. 6402. INSTALLATION OF POWERFORMER AT FOLSOM POWER PLANT,
CALIFORNIA.
(a) In General.--The Secretary of the Interior may install a
powerformer at the Bureau of Reclamation Folsom power plant in Folsom,
California, to replace a generator and transformer that are due for
replacement due to age.
(b) Reimbursable Costs.--Costs incurred by the United States for
installation of a powerformer under this section shall be treated as
reimbursable costs and shall bear interest at current long-term
borrowing rates of the United States Treasury at the time of
acquisition.
(c) Local Cost Sharing.--In addition to reimbursable costs under
subsection (b), the Secretary shall seek contributions from power users
toward the costs of the powerformer and its installation.
SEC. 6403. STUDY AND IMPLEMENTATION OF INCREASED OPERATIONAL
EFFICIENCIES IN HYDROELECTRIC POWER PROJECTS.
(a) In General.--The Secretary of Interior shall conduct a study of
operational methods and water scheduling techniques at all
hydroelectric power plants under the administrative jurisdiction of the
Secretary that have an electric power production capacity greater than
50 megawatts, to--
(1) determine whether such power plants and associated
river systems are operated so as to maximize energy and
capacity capabilities; and
(2) identify measures that can be taken to improve
operational flexibility at such plants to achieve such
maximization.
(b) Report.--The Secretary shall submit a report on the findings,
conclusions, and recommendations of the study under this section by not
later than 18 months after the date of the enactment of this Act,
including a summary of the determinations and identifications under
paragraphs (1) and (2) of subsection (a).
(c) Cooperation by Federal Power Marketing Administrations.--The
Secretary shall coordinate with the Administrator of each Federal power
marketing administration in--
(1) determining how the value of electric power produced by
each hydroelectric power facility that produces power marketed
by the administration can be maximized; and
(2) implementing measures identified under subsection
(a)(2).
(d) Limitation on Implementation of Measures.--Implementation under
subsections (a)(2) and (b)(2) shall be limited to those measures that
can be implemented within the constraints imposed on Department of the
Interior facilities by other uses required by law.
SEC. 6404. SHIFT OF PROJECT LOADS TO OFF-PEAK PERIODS.
(a) In General.--The Secretary of the Interior shall--
(1) review electric power consumption by Bureau of
Reclamation facilities for water pumping purposes; and
(2) make such adjustments in such pumping as possible to
minimize the amount of electric power consumed for such pumping
during periods of peak electric power consumption, including by
performing as much of such pumping as possible during off-peak
hours at night.
(b) Consent of Affected Irrigation Customers Required.--The
Secretary may not under this section make any adjustment in pumping at
a facility without the consent of each person that has contracted with
the United States for delivery of water from the facility for use for
irrigation and that would be affected by such adjustment.
(c) Existing Obligations Not Affected.--This section shall not be
construed to affect any existing obligation of the Secretary to provide
electric power, water, or other benefits from Bureau of Reclamation
facilities.
TITLE V--ARCTIC COASTAL PLAIN DOMESTIC ENERGY
SEC. 6501. SHORT TITLE.
This title may be cited as the ``Arctic Coastal Plain Domestic
Energy Security Act of 2001''.
SEC. 6502. DEFINITIONS.
In this title:
(1) Coastal plain.--The term ``Coastal Plain'' means that
area identified as such in the map entitled ``Arctic National
Wildlife Refuge'', dated August 1980, as referenced in section
1002(b) of the Alaska National Interest Lands Conservation Act
of 1980 (16 U.S.C. 3142(b)(1)), comprising approximately
1,549,000 acres.
(2) Secretary.--The term ``Secretary'', except as otherwise
provided, means the Secretary of the Interior or the
Secretary's designee.
SEC. 6503. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN.
(a) In General.--The Secretary shall take such actions as are
necessary--
(1) to establish and implement in accordance with this
title a competitive oil and gas leasing program under the
Mineral Leasing Act (30 U.S.C. 181 et seq.) that will result in
an environmentally sound program for the exploration,
development, and production of the oil and gas resources of the
Coastal Plain; and
(2) to administer the provisions of this title through
regulations, lease terms, conditions, restrictions,
prohibitions, stipulations, and other provisions that ensure
the oil and gas exploration, development, and production
activities on the Coastal Plain will result in no significant
adverse effect on fish and wildlife, their habitat, subsistence
resources, and the environment, and including, in furtherance
of this goal, by requiring the application of the best
commercially available technology for oil and gas exploration,
development, and production to all exploration, development,
and production operations under this title in a manner that
ensures the receipt of fair market value by the public for the
mineral resources to be leased.
(b) Repeal.--Section 1003 of the Alaska National Interest Lands
Conservation Act of 1980 (16 U.S.C. 3143) is repealed.
(c) Compliance With Requirements Under Certain Other Laws.--
(1) Compatibility.--For purposes of the National Wildlife
Refuge System Administration Act of 1966, the oil and gas
leasing program and activities authorized by this section in
the Coastal Plain are deemed to be compatible with the purposes
for which the Arctic National Wildlife Refuge was established,
and that no further findings or decisions are required to
implement this determination.
(2) Adequacy of the department of the interior's
legislative environmental impact statement.--The ``Final
Legislative Environmental Impact Statement'' (April 1987) on
the Coastal Plain prepared pursuant to section 1002 of the
Alaska National Interest Lands Conservation Act of 1980 (16
U.S.C. 3142) and section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is
deemed to satisfy the requirements under the National
Environmental Policy Act of 1969 that apply with respect to
actions authorized to be taken by the Secretary to develop and
promulgate the regulations for the establishment of a leasing
program authorized by this title before the conduct of the
first lease sale.
(3) Compliance with nepa for other actions.--Before
conducting the first lease sale under this title, the Secretary
shall prepare an environmental impact statement under the
National Environmental Policy Act of 1969 with respect to the
actions authorized by this title that are not referred to in
paragraph (2). Notwithstanding any other law, the Secretary is
not required to identify nonleasing alternative courses of
action or to analyze the environmental effects of such courses
of action. The Secretary shall only identify a preferred action
for such leasing and a single leasing alternative, and analyze
the environmental effects and potential mitigation measures for
those two alternatives. The identification of the preferred
action and related analysis for the first lease sale under this
title shall be completed within 18 months after the date of the
enactment of this Act. The Secretary shall only consider public
comments that specifically address the Secretary's preferred
action and that are filed within 20 days after publication of
an environmental analysis. Notwithstanding any other law,
compliance with this paragraph is deemed to satisfy all
requirements for the analysis and consideration of the
environmental effects of proposed leasing under this title.
(d) Relationship to State and Local Authority.--Nothing in this
title shall be considered to expand or limit State and local regulatory
authority.
(e) Special Areas.--
(1) In general.--The Secretary, after consultation with the
State of Alaska, the city of Kaktovik, and the North Slope
Borough, may designate up to a total of 45,000 acres of the
Coastal Plain as a Special Area if the Secretary determines
that the Special Area is of such unique character and interest
so as to require special management and regulatory protection.
The Secretary shall designate as such a Special Area the
Sadlerochit Spring area, comprising approximately 4,000 acres
as depicted on the map referred to in section 6502(1).
(2) Management.--Each such Special Area shall be managed so
as to protect and preserve the area's unique and diverse
character including its fish, wildlife, and subsistence
resource values.
(3) Exclusion from leasing or surface occupancy.--The
Secretary may exclude any Special Area from leasing. If the
Secretary leases a Special Area, or any part thereof, for
purposes of oil and gas exploration, development, production,
and related activities, there shall be no surface occupancy of
the lands comprising the Special Area.
(4) Directional drilling.--Notwithstanding the other
provisions of this subsection, the Secretary may lease all or a
portion of a Special Area under terms that permit the use of
horizontal drilling technology from sites on leases located
outside the area.
(f) Limitation on Closed Areas.--The Secretary's sole authority to
close lands within the Coastal Plain to oil and gas leasing and to
exploration, development, and production is that set forth in this
title.
(g) Regulations.--
(1) In general.--The Secretary shall prescribe such
regulations as may be necessary to carry out this title,
including rules and regulations relating to protection of the
fish and wildlife, their habitat, subsistence resources, and
environment of the Coastal Plain, by no later than 15 months
after the date of the enactment of this Act.
(2) Revision of regulations.--The Secretary shall
periodically review and, if appropriate, revise the rules and
regulations issued under subsection (a) to reflect any
significant biological, environmental, or engineering data that
come to the Secretary's attention.
SEC. 6504. LEASE SALES.
(a) In General.--Lands may be leased pursuant to this title to any
person qualified to obtain a lease for deposits of oil and gas under
the Mineral Leasing Act (30 U.S.C. 181 et seq.).
(b) Procedures.--The Secretary shall, by regulation, establish
procedures for--
(1) receipt and consideration of sealed nominations for any
area in the Coastal Plain for inclusion in, or exclusion (as
provided in subsection (c)) from, a lease sale;
(2) the holding of lease sales after such nomination
process; and
(3) public notice of and comment on designation of areas to
be included in, or excluded from, a lease sale.
(c) Lease Sale Bids.--Bidding for leases under this title shall be
by sealed competitive cash bonus bids.
(d) Acreage Minimum in First Sale.--In the first lease sale under
this title, the Secretary shall offer for lease those tracts the
Secretary considers to have the greatest potential for the discovery of
hydrocarbons, taking into consideration nominations received pursuant
to subsection (b)(1), but in no case less than 200,000 acres.
(e) Timing of Lease Sales.--The Secretary shall--
(1) conduct the first lease sale under this title within 22
months after the date of the enactment of this title; and
(2) conduct additional sales so long as sufficient interest
in development exists to warrant, in the Secretary's judgment,
the conduct of such sales.
SEC. 6505. GRANT OF LEASES BY THE SECRETARY.
(a) In General.--The Secretary may grant to the highest responsible
qualified bidder in a lease sale conducted pursuant to section 6504 any
lands to be leased on the Coastal Plain upon payment by the lessee of
such bonus as may be accepted by the Secretary.
(b) Subsequent Transfers.--No lease issued under this title may be
sold, exchanged, assigned, sublet, or otherwise transferred except with
the approval of the Secretary. Prior to any such approval the Secretary
shall consult with, and give due consideration to the views of, the
Attorney General.
SEC. 6506. LEASE TERMS AND CONDITIONS.
(a) In General.--An oil or gas lease issued pursuant to this title
shall--
(1) provide for the payment of a royalty of not less than
12\1/2\ percent in amount or value of the production removed or
sold from the lease, as determined by the Secretary under the
regulations applicable to other Federal oil and gas leases;
(2) provide that the Secretary may close, on a seasonal
basis, portions of the Coastal Plain to exploratory drilling
activities as necessary to protect caribou calving areas and
other species of fish and wildlife;
(3) require that the lessee of lands within the Coastal
Plain shall be fully responsible and liable for the reclamation
of lands within the Coastal Plain and any other Federal lands
that are adversely affected in connection with exploration,
development, production, or transportation activities conducted
under the lease and within the Coastal Plain by the lessee or
by any of the subcontractors or agents of the lessee;
(4) provide that the lessee may not delegate or convey, by
contract or otherwise, the reclamation responsibility and
liability to another person without the express written
approval of the Secretary;
(5) provide that the standard of reclamation for lands
required to be reclaimed under this title shall be, as nearly
as practicable, a condition capable of supporting the uses
which the lands were capable of supporting prior to any
exploration, development, or production activities, or upon
application by the lessee, to a higher or better use as
approved by the Secretary;
(6) contain terms and conditions relating to protection of
fish and wildlife, their habitat, and the environment as
required pursuant to section 6503(a)(2);
(7) provide that the lessee, its agents, and its
contractors use best efforts to provide a fair share, as
determined by the level of obligation previously agreed to in
the 1974 agreement implementing section 29 of the Federal
Agreement and Grant of Right of Way for the Operation of the
Trans-Alaska Pipeline, of employment and contracting for Alaska
Natives and Alaska Native Corporations from throughout the
State;
(8) prohibit the export of oil produced under the lease;
and
(9) contain such other provisions as the Secretary
determines necessary to ensure compliance with the provisions
of this title and the regulations issued under this title.
(b) Project Labor Agreements.--The Secretary, as a term and
condition of each lease under this title and in recognizing the
Government's proprietary interest in labor stability and in the ability
of construction labor and management to meet the particular needs and
conditions of projects to be developed under the leases issued pursuant
to this title and the special concerns of the parties to such leases,
shall require that the lessee and its agents and contractors negotiate
to obtain a project labor agreement for the employment of laborers and
mechanics on production, maintenance, and construction under the lease.
SEC. 6507. COASTAL PLAIN ENVIRONMENTAL PROTECTION.
(a) No Significant Adverse Effect Standard To Govern Authorized
Coastal Plain Activities.--The Secretary shall, consistent with the
requirements of section 6503, administer the provisions of this title
through regulations, lease terms, conditions, restrictions,
prohibitions, stipulations, and other provisions that--
(1) ensure the oil and gas exploration, development, and
production activities on the Coastal Plain will result in no
significant adverse effect on fish and wildlife, their habitat,
and the environment;
(2) require the application of the best commercially
available technology for oil and gas exploration, development,
and production on all new exploration, development, and
production operations; and
(3) ensure that the maximum amount of surface acreage
covered by production and support facilities, including
airstrips and any areas covered by gravel berms or piers for
support of pipelines, does not exceed 2,000 acres on the
Coastal Plain.
(b) Site-Specific Assessment and Mitigation.--The Secretary shall
also require, with respect to any proposed drilling and related
activities, that--
(1) a site-specific analysis be made of the probable
effects, if any, that the drilling or related activities will
have on fish and wildlife, their habitat, and the environment;
(2) a plan be implemented to avoid, minimize, and mitigate
(in that order and to the extent practicable) any significant
adverse effect identified under paragraph (1); and
(3) the development of the plan shall occur after
consultation with the agency or agencies having jurisdiction
over matters mitigated by the plan.
(c) Regulations To Protect Coastal Plain Fish and Wildlife
Resources, Subsistence Users, and the Environment.--Before implementing
the leasing program authorized by this title, the Secretary shall
prepare and promulgate regulations, lease terms, conditions,
restrictions, prohibitions, stipulations, and other measures designed
to ensure that the activities undertaken on the Coastal Plain under
this title are conducted in a manner consistent with the purposes and
environmental requirements of this title.
(d) Compliance With Federal and State Environmental Laws and Other
Requirements.--The proposed regulations, lease terms, conditions,
restrictions, prohibitions, and stipulations for the leasing program
under this title shall require compliance with all applicable
provisions of Federal and State environmental law and shall also
require the following:
(1) Standards at least as effective as the safety and
environmental mitigation measures set forth in items 1 through
29 at pages 167 through 169 of the ``Final Legislative
Environmental Impact Statement'' (April 1987) on the Coastal
Plain.
(2) Seasonal limitations on exploration, development, and
related activities, where necessary, to avoid significant
adverse effects during periods of concentrated fish and
wildlife breeding, denning, nesting, spawning, and migration.
(3) That exploration activities, except for surface
geological studies, be limited to the period between
approximately November 1 and May 1 each year and that
exploration activities shall be supported by ice roads, winter
trails with adequate snow cover, ice pads, ice airstrips, and
air transport methods, except that such exploration activities
may occur at other times, if--
(A) the Secretary determines, after affording an
opportunity for public comment and review, that special
circumstances exist necessitating that exploration
activities be conducted at other times of the year; and
(B) the Secretary finds that such exploration will
have no significant adverse effect on the fish and
wildlife, their habitat, and the environment of the
Coastal Plain.
(4) Design safety and construction standards for all
pipelines and any access and service roads, that--
(A) minimize, to the maximum extent possible,
adverse effects upon the passage of migratory species
such as caribou; and
(B) minimize adverse effects upon the flow of
surface water by requiring the use of culverts,
bridges, and other structural devices.
(5) Prohibitions on public access and use on all pipeline
access and service roads.
(6) Stringent reclamation and rehabilitation requirements,
consistent with the standards set forth in this title,
requiring the removal from the Coastal Plain of all oil and gas
development and production facilities, structures, and
equipment upon completion of oil and gas production operations,
except that the Secretary may exempt from the requirements of
this paragraph those facilities, structures, or equipment that
the Secretary determines would assist in the management of the
Arctic National Wildlife Refuge and that are donated to the
United States for that purpose.
(7) Appropriate prohibitions or restrictions on access by
all modes of transportation.
(8) Appropriate prohibitions or restrictions on sand and
gravel extraction.
(9) Consolidation of facility siting.
(10) Appropriate prohibitions or restrictions on use of
explosives.
(11) Avoidance, to the extent practicable, of springs,
streams, and river system; the protection of natural surface
drainage patterns, wetlands, and riparian habitats; and the
regulation of methods or techniques for developing or
transporting adequate supplies of water for exploratory
drilling.
(12) Avoidance or reduction of air traffic-related
disturbance to fish and wildlife.
(13) Treatment and disposal of hazardous and toxic wastes,
solid wastes, reserve pit fluids, drilling muds and cuttings,
and domestic wastewater, including an annual waste management
report, a hazardous materials tracking system, and a
prohibition on chlorinated solvents, in accordance with
applicable Federal and State environmental law.
(14) Fuel storage and oil spill contingency planning.
(15) Research, monitoring, and reporting requirements.
(16) Field crew environmental briefings.
(17) Avoidance of significant adverse effects upon
subsistence hunting, fishing, and trapping by subsistence
users.
(18) Compliance with applicable air and water quality
standards.
(19) Appropriate seasonal and safety zone designations
around well sites, within which subsistence hunting and
trapping shall be limited.
(20) Reasonable stipulations for protection of cultural and
archeological resources.
(21) All other protective environmental stipulations,
restrictions, terms, and conditions deemed necessary by the
Secretary.
(e) Considerations.--In preparing and promulgating regulations,
lease terms, conditions, restrictions, prohibitions, and stipulations
under this section, the Secretary shall consider the following:
(1) The stipulations and conditions that govern the
National Petroleum Reserve-Alaska leasing program, as set forth
in the 1999 Northeast National Petroleum Reserve-Alaska Final
Integrated Activity Plan/Environmental Impact Statement.
(2) The environmental protection standards that governed
the initial Coastal Plain seismic exploration program under
parts 37.31 to 37.33 of title 50, Code of Federal Regulations.
(3) The land use stipulations for exploratory drilling on
the KIC-ASRC private lands that are set forth in Appendix 2 of
the August 9, 1983, agreement between Arctic Slope Regional
Corporation and the United States.
(f) Facility Consolidation Planning.--
(1) In general.--The Secretary shall, after providing for
public notice and comment, prepare and update periodically a
plan to govern, guide, and direct the siting and construction
of facilities for the exploration, development, production, and
transportation of Coastal Plain oil and gas resources.
(2) Objectives.--The plan shall have the following
objectives:
(A) Avoiding unnecessary duplication of facilities
and activities.
(B) Encouraging consolidation of common facilities
and activities.
(C) Locating or confining facilities and activities
to areas that will minimize impact on fish and
wildlife, their habitat, and the environment.
(D) Utilizing existing facilities wherever
practicable.
(E) Enhancing compatibility between wildlife values
and development activities.
SEC. 6508. EXPEDITED JUDICIAL REVIEW.
(a) Filing of Complaint.--
(1) Deadline.--Subject to paragraph (2), any complaint
seeking judicial review of any provision of this title or any
action of the Secretary under this title shall be filed in any
appropriate district court of the United States--
(A) except as provided in subparagraph (B), within
the 90-day period beginning on the date of the action
being challenged; or
(B) in the case of a complaint based solely on
grounds arising after such period, within 90 days after
the complainant knew or reasonably should have known of
the grounds for the complaint.
(2) Venue.--Any complaint seeking judicial review of an
action of the Secretary under this title may be filed only in
the United States Court of Appeals for the District of
Columbia.
(3) Limitation on scope of certain review.--Judicial review
of a Secretarial decision to conduct a lease sale under this
title, including the environmental analysis thereof, shall be
limited to whether the Secretary has complied with the terms of
this division and shall be based upon the administrative record
of that decision. The Secretary's identification of a preferred
course of action to enable leasing to proceed and the
Secretary's analysis of environmental effects under this
division shall be presumed to be correct unless shown otherwise
by clear and convincing evidence to the contrary.
(b) Limitation on Other Review.--Actions of the Secretary with
respect to which review could have been obtained under this section
shall not be subject to judicial review in any civil or criminal
proceeding for enforcement.
SEC. 6509. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.
(a) Exemption.--Title XI of the Alaska National Interest Lands
Conservation Act of 1980 (16 U.S.C. 3161 et seq.) shall not apply to
the issuance by the Secretary under section 28 of the Mineral Leasing
Act (30 U.S.C. 185) of rights-of-way and easements across the Coastal
Plain for the transportation of oil and gas.
(b) Terms and Conditions.--The Secretary shall include in any
right-of-way or easement referred to in subsection (a) such terms and
conditions as may be necessary to ensure that transportation of oil and
gas does not result in a significant adverse effect on the fish and
wildlife, subsistence resources, their habitat, and the environment of
the Coastal Plain, including requirements that facilities be sited or
designed so as to avoid unnecessary duplication of roads and pipelines.
(c) Regulations.--The Secretary shall include in regulations under
section 6503(g) provisions granting rights-of-way and easements
described in subsection (a) of this section.
SEC. 6510. CONVEYANCE.
In order to maximize Federal revenues by removing clouds on title
to lands and clarifying land ownership patterns within the Coastal
Plain, the Secretary, notwithstanding the provisions of section
1302(h)(2) of the Alaska National Interest Lands Conservation Act (16
U.S.C. 3192(h)(2)), shall convey--
(1) to the Kaktovik Inupiat Corporation the surface estate
of the lands described in paragraph 2 of Public Land Order
6959, to the extent necessary to fulfill the Corporation's
entitlement under section 12 of the Alaska Native Claims
Settlement Act (43 U.S.C. 1611); and
(2) to the Arctic Slope Regional Corporation the subsurface
estate beneath such surface estate pursuant to the August 9,
1983, agreement between the Arctic Slope Regional Corporation
and the United States of America.
SEC. 6511. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE
ASSISTANCE.
(a) Financial Assistance Authorized.--
(1) In general.--The Secretary may use amounts available
from the Coastal Plain Local Government Impact Aid Assistance
Fund established by subsection (d) to provide timely financial
assistance to entities that are eligible under paragraph (2)
and that are directly impacted by the exploration for or
production of oil and gas on the Coastal Plain under this
title.
(2) Eligible entities.--The North Slope Borough, Kaktovik,
and other boroughs, municipal subdivisions, villages, and any
other community organized under Alaska State law shall be
eligible for financial assistance under this section.
(b) Use of Assistance.--Financial assistance under this section may
be used only for--
(1) planning for mitigation of the potential effects of oil
and gas exploration and development on environmental, social,
cultural, recreational and subsistence values;
(2) implementing mitigation plans and maintaining
mitigation projects; and
(3) developing, carrying out, and maintaining projects and
programs that provide new or expanded public facilities and
services to address needs and problems associated with such
effects, including firefighting, police, water, waste
treatment, medivac, and medical services.
(c) Application.--
(1) In general.--Any community that is eligible for
assistance under this section may submit an application for
such assistance to the Secretary, in such form and under such
procedures as the Secretary may prescribe by regulation.
(2) North slope borough communities.--A community located
in the North Slope Borough may apply for assistance under this
section either directly to the Secretary or through the North
Slope Borough.
(3) Application assistance.--The Secretary shall work
closely with and assist the North Slope Borough and other
communities eligible for assistance under this section in
developing and submitting applications for assistance under
this section.
(d) Establishment of Fund.--
(1) In general.--There is established in the Treasury the
Coastal Plain Local Government Impact Aid Assistance Fund.
(2) Use.--Amounts in the fund may be used only for
providing financial assistance under this section.
(3) Deposits.--Subject to paragraph (4), there shall be
deposited into the fund amounts received by the United States
as revenues derived from rents, bonuses, and royalties under on
leases and lease sales authorized under this title.
(4) Limitation on deposits.--The total amount in the fund
may not exceed $10,000,000.
(5) Investment of balances.--The Secretary of the Treasury
shall invest amounts in the fund in interest bearing government
securities.
(e) Authorization of Appropriations.--To provide financial
assistance under this section there is authorized to be appropriated to
the Secretary from the Coastal Plain Local Government Impact Aid
Assistance Fund $5,000,000 for each fiscal year.
SEC. 6512. REVENUE ALLOCATION.
(a) Federal and State Distribution.--
(1) In general.--Notwithstanding section 6504 of this Act,
the Mineral Leasing Act (30 U.S.C. 181 et. seq.), or any other
law, of the amount of adjusted bonus, rental, and royalty
revenues from oil and gas leasing and operations authorized
under this title--
(A) 50 percent shall be paid to the State of
Alaska; and
(B) the balance shall be deposited into the
Renewable Energy Technology Investment Fund and the
Royalties Conservation Fund as provided in this
section.
(2) Adjustments.--Adjustments to bonus, rental, and royalty
amounts from oil and gas leasing and operations authorized
under this title shall be made as necessary for overpayments
and refunds from lease revenues received in current or
subsequent periods before distribution of such revenues
pursuant to this section.
(3) Timing of payments to state.--Payments to the State of
Alaska under this section shall be made semiannually.
(b) Renewable Energy Technology Investment Fund.--
(1) Establishment and availability.--There is hereby
established in the Treasury of the United States a separate
account which shall be known as the ``Renewable Energy
Technology Investment Fund''.
(2) Deposits.--Fifty percent of adjusted revenues from
bonus payments for leases issued under this title shall be
deposited into the Renewable Energy Technology Investment Fund.
(3) Use, generally.--Subject to paragraph (4), funds
deposited into the Renewable Energy Technology Investment Fund
shall be used by the Secretary of Energy to finance research
grants, contracts, and cooperative agreements and expenses of
direct research by Federal agencies, including the costs of
administering and reporting on such a program of research, to
improve and demonstrate technology and develop basic science
information for development and use of renewable and
alternative fuels including wind energy, solar energy,
geothermal energy, and energy from biomass. Such research may
include studies on deployment of such technology including
research on how to lower the costs of introduction of such
technology and of barriers to entry into the market of such
technology.
(4) Use for adjustments and refunds.--If for any
circumstances, adjustments or refunds of bonus amounts
deposited pursuant to this title become warranted, 50 percent
of the amount necessary for the sum of such adjustments and
refunds may be paid by the Secretary from the Renewable Energy
Technology Investment Fund.
(5) Consultation and coordination.--Any specific use of the
Renewable Energy Technology Investment Fund shall be determined
only after the Secretary of Energy consults and coordinates
with the heads of other appropriate Federal agencies.
(6) Reports.--Not later than 1 year after the date of the
enactment of this Act and on an annual basis thereafter, the
Secretary of Energy shall transmit to the Committee on Science
of the House of Representatives and the Committee on Energy and
Natural Resources of the Senate a report on the use of funds
under this subsection and the impact of and efforts to
integrate such uses with other energy research efforts.
(c) Royalties Conservation Fund.--
(1) Establishment and availability.--There is hereby
established in the Treasury of the United States a separate
account which shall be known as the ``Royalties Conservation
Fund''.
(2) Deposits.--Fifty percent of revenues from rents and
royalty payments for leases issued under this title shall be
deposited into the Royalties Conservation Fund.
(3) Use, generally.--Subject to paragraph (4), funds
deposited into the Royalties Conservation Fund--
(A) may be used by the Secretary of the Interior
and the Secretary of Agriculture to finance grants,
contracts, cooperative agreements, and expenses for
direct activities of the Department of the Interior and
the Forest Service to restore and otherwise conserve
lands and habitat and to eliminate maintenance and
improvements backlogs on Federal lands, including the
costs of administering and reporting on such a program;
and
(B) may be used by the Secretary of the Interior to
finance grants, contracts, cooperative agreements, and
expenses--
(i) to preserve historic Federal
properties;
(ii) to assist States and Indian Tribes in
preserving their historic properties;
(iii) to foster the development of urban
parks; and
(iv) to conduct research to improve the
effectiveness and lower the costs of habitat
restoration.
(4) Use for adjustments and refunds.--If for any
circumstances, refunds or adjustments of royalty and rental
amounts deposited pursuant to this title become warranted, 50
percent of the amount necessary for the sum of such adjustments
and refunds may be paid from the Royalties Conservation Fund.
(d) Availability.--Moneys covered into the accounts established by
this section--
(1) shall be available for expenditure only to the extent
appropriated therefor;
(2) may be appropriated without fiscal-year limitation; and
(3) may be obligated or expended only as provided in this
section.
TITLE VI--CONSERVATION OF ENERGY BY THE DEPARTMENT OF THE INTERIOR
SEC. 6601. ENERGY CONSERVATION BY THE DEPARTMENT OF THE INTERIOR.
(a) In General.--The Secretary of the Interior shall--
(1) conduct a study to identify, evaluate, and recommend
opportunities for conserving energy by reducing the amount of
energy used by facilities of the Department of the Interior;
and
(2) wherever feasible and appropriate, reduce the use of
energy from traditional sources by encouraging use of
alternative energy sources, including solar power and power
from fuel cells, throughout such facilities and the public
lands of the United States.
(b) Reports.--The Secretary shall submit to the Congress--
(1) by not later than 90 days after the date of the
enactment of this Act, a report containing the findings,
conclusions, and recommendations of the study under subsection
(a)(1); and
(2) by not later than December 31 each year, an annual
report describing progress made in--
(A) conserving energy through opportunities
recommended in the report under paragraph (1); and
(B) encouraging use of alternative energy sources
under subsection (a)(2).
SEC. 6602. AMENDMENT TO BUY INDIAN ACT.
Section 23 of the Act of June 25, 1910 (25 U.S.C. 47; commonly
known as the ``Buy Indian Act'') is amended by inserting ``energy
products, and energy by-products,'' after ``printing,''.
TITLE VII--COAL
SEC. 6701. LIMITATION ON FEES WITH RESPECT TO COAL LEASE APPLICATIONS
AND DOCUMENTS.
Notwithstanding sections 304 and 504 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1734, 1764) and section 9701 of title
31, United States Code, the Secretary shall not recover the Secretary's
costs with respect to applications and other documents relating coal
leases.
SEC. 6702. MINING PLANS.
Section 2(d)(2) of the Mineral Leasing Act (30 U.S.C. 202a(2)) is
amended--
(1) by inserting ``(A)'' after ``(2)''; and
(2) by adding at the end the following:
``(B) The Secretary may establish a period of more than 40 years if
the Secretary determines that the longer period--
``(i) will ensure the maximum economic recovery of a coal
deposit; or
``(ii) the longer period is in the interest of the orderly,
efficient, or economic development of a coal resources.''.
SEC. 6703. PAYMENT OF ADVANCE ROYALTIES UNDER COAL LEASES.
(a) In General.--Section 7(b) of the Mineral Leasing Act of 1920
(30 U.S.C. 207(b)) is amended to read as follows:
``(b)(1) Each lease shall be subjected to the condition of diligent
development and continued operation of the mine or mines, except where
operations under the lease are interrupted by strikes, the elements, or
casualties not attributable to the lessee.
``(2)(A) The Secretary of the Interior, upon determining that the
public interest will be served thereby, may suspend the condition of
continued operation upon the payment of advance royalties.
``(B) Such advance royalties shall be computed based on the average
price for coal sold in the spot market from the same region during the
last month of each applicable continued operation year.
``(C) The aggregate number of years during the initial and any
extended term of any lease for which advance royalties may be accepted
in lieu of the condition of continued operation shall not exceed 20.
``(3) The amount of any production royalty paid for any year shall
be reduced (but not below zero) by the amount of any advance royalties
paid under such lease to the extent that such advance royalties have
not been used to reduce production royalties for a prior year.
``(4) This subsection shall be applicable to any lease or logical
mining unit in existence on the date of the enactment of this paragraph
or issued or approved after such date.
``(5) Nothing in this subsection shall be construed to affect the
requirement contained in the second sentence of subsection (a) relating
to commencement of production at the end of 10 years.''.
(b) Authority To Waive, Suspend, or Reduce Advance Royalties.--
Section 39 of the Mineral Leasing Act (30 U.S.C. 209) is amended by
striking the last sentence.
SEC. 6704. ELIMINATION OF DEADLINE FOR SUBMISSION OF COAL LEASE
OPERATION AND RECLAMATION PLAN.
Section 7(c) of the Mineral Leasing Act (30 U.S.C. 207(c)) is
amended by striking ``and not later than three years after a lease is
issued,''.
TITLE VIII--INSULAR AREAS ENERGY SECURITY
SEC. 6801. INSULAR AREAS ENERGY SECURITY.
Section 604 of the Act entitled ``An Act to authorize
appropriations for certain insular areas of the United States, and for
other purposes'', approved December 24, 1980 (Public Law 96-597; 94
Stat. 3480-3481), is amended--
(1) in subsection (a)(4) by striking the period and
inserting a semicolon;
(2) by adding at the end of subsection (a) the following
new paragraphs:
``(5) electric power transmission and distribution lines in
insular areas are inadequate to withstand damage caused by the
hurricanes and typhoons which frequently occur in insular areas
and such damage often costs millions of dollars to repair; and
``(6) the refinement of renewable energy technologies since
the publication of the 1982 Territorial Energy Assessment
prepared pursuant to subsection (c) reveals the need to
reassess the state of energy production, consumption,
infrastructure, reliance on imported energy, and indigenous
sources in regard to the insular areas.'';
(3) by amending subsection (e) to read as follows:
``(e)(1) The Secretary of the Interior, in consultation with the
Secretary of Energy and the chief executive officer of each insular
area, shall update the plans required under subsection (c) by--
``(A) updating the contents required by subsection (c);
``(B) drafting long-term energy plans for such insular
areas with the objective of reducing, to the extent feasible,
their reliance on energy imports by the year 2010 and
maximizing, to the extent feasible, use of indigenous energy
sources; and
``(C) drafting long-term energy transmission line plans for
such insular areas with the objective that the maximum
percentage feasible of electric power transmission and
distribution lines in each insular area be protected from
damage caused by hurricanes and typhoons.
``(2) Not later than May 31, 2003, the Secretary of the Interior
shall submit to Congress the updated plans for each insular area
required by this subsection.''; and
(4) by amending subsection (g)(4) to read as follows:
``(4) Power line grants for territories.--
``(A) In general.--The Secretary of the Interior is
authorized to make grants to governments of territories
of the United States to carry out eligible projects to
protect electric power transmission and distribution
lines in such territories from damage caused by
hurricanes and typhoons.
``(B) Eligible projects.--The Secretary may award
grants under subparagraph (A) only to governments of
territories of the United States that submit written
project plans to the Secretary for projects that meet
the following criteria:
``(i) The project is designed to protect
electric power transmission and distribution
lines located in one or more of the territories
of the United States from damage caused by
hurricanes and typhoons.
``(ii) The project is likely to
substantially reduce the risk of future damage,
hardship, loss, or suffering.
``(iii) The project addresses one or more
problems that have been repetitive or that pose
a significant risk to public health and safety.
``(iv) The project is not likely to cost
more than the value of the reduction in direct
damage and other negative impacts that the
project is designed to prevent or mitigate. The
cost benefit analysis required by this
criterion shall be computed on a net present
value basis.
``(v) The project design has taken into
consideration long-term changes to the areas
and persons it is designed to protect and has
manageable future maintenance and modification
requirements.
``(vi) The project plan includes an
analysis of a range of options to address the
problem it is designed to prevent or mitigate
and a justification for the selection of the
project in light of that analysis.
``(vii) The applicant has demonstrated to
the Secretary that the matching funds required
by subparagraph (D) are available.
``(C) Priority.--When making grants under this
paragraph, the Secretary shall give priority to grants
for projects which are likely to--
``(i) have the greatest impact on reducing
future disaster losses; and
``(ii) best conform with plans that have
been approved by the Federal Government or the
government of the territory where the project
is to be carried out for development or hazard
mitigation for that territory.
``(D) Matching requirement.--The Federal share of
the cost for a project for which a grant is provided
under this paragraph shall not exceed 75 percent of the
total cost of that project. The non-Federal share of
the cost may be provided in the form of cash or
services.
``(E) Treatment of funds for certain purposes.--
Grants provided under this paragraph shall not be
considered as income, a resource, or a duplicative
program when determining eligibility or benefit levels
for Federal major disaster and emergency assistance.
``(F) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
paragraph $5,000,000 for each fiscal year beginning
after the date of the enactment of this paragraph.''.
DIVISION G
SEC. 7101. BUY AMERICAN.
No funds authorized under this Act shall be available to any person
or entity that has been convicted of violating the Buy American Act (41
U.S.C. 10a-10c).
Passed the House of Representatives August 2 (legislative
day, August 1), 2001.
Attest:
JEFF TRANDAHL,
Clerk.
Calendar No. 145
107th CONGRESS
1st Session
H. R. 4
_______________________________________________________________________
AN ACT
To enhance energy conservation, research and development and to provide
for security and diversity in the energy supply for the American
people, and for other purposes.
_______________________________________________________________________
September 4, 2001
Read the second time and placed on the calendar