[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2917 Amendment Ordered to be Printed Senate (AS)]

                                                                   IIIA
AMENDMENT NO. 2917
                                                        Calendar No. 65
Purpose: To provide for the energy security of the Nation.

       IN THE SENATE OF THE UNITED STATES -- 107th Congress , 2d Session

                 AMENDMENT NO. 2917 AS MODIFIED FURTHER

                                 S. 517

 To authorize funding the Department of Energy to enhance its mission 
  areas through technology transfer and partnerships for fiscal years 
               2002 through 2006, and for other purposes.

                             March 5, 2002

Proposed by Mr. Daschle (for himself and Mr. Bingaman).
Viz:
    Strike all after the enacting clause and insert the following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Energy Policy Act of 2002''.

SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short title.
Sec. 2. Table of contents.
   DIVISION A--RELIABLE AND DIVERSE POWER GENERATION AND TRANSMISSION

                     TITLE I--REGIONAL COORDINATION

Sec. 101. Policy on regional coordination.
Sec. 102. Federal support for regional coordination.
                         TITLE II--ELECTRICITY

            Subtitle A--Amendments to the Federal Power Act

Sec. 201. Definitions.
Sec. 202. Electric utility mergers.
Sec. 203. Market-based rates.
Sec. 204. Refund effective date.
Sec. 205. Transmission interconnections.
Sec. 206. Open access transmission by certain utilities.
Sec. 207. Electric reliability standards.
Sec. 208. Market transparency rules.
Sec. 209. Access to transmission by intermittent generators.
Sec. 210. Enforcement.
    Subtitle B--Amendments to the Public Utility Holding Company Act

Sec. 221. Short title.
Sec. 222. Definitions.
Sec. 223. Repeal of the Public Utility Holding Company Act of 1935.
Sec. 224. Federal access to books and records.
Sec. 225. State access to books and records.
Sec. 226. Exemption authority.
Sec. 227. Affiliate transactions.
Sec. 228. Applicability.
Sec. 229. Effect on other regulations.
Sec. 230. Enforcement.
Sec. 231. Savings provisions.
Sec. 232. Implementation.
Sec. 233. Transfer of resources.
Sec. 234. Inter-agency review of competition in the wholesale and 
                            retail markets for electric energy.
Sec. 235. GAO study on implementation.
Sec. 236. Effective date.
Sec. 237. Authorization of appropriations.
Sec. 238. Conforming amendments to the Federal Power Act.
Subtitle C--Amendments to the Public Utility Regulatory Policies Act of 
                                  1978

Sec. 241. Real-time pricing standard.
Sec. 242. Adoption of additional standards.
Sec. 243. Technical assistance.
Sec. 244. Cogeneration and small power production purchase and sale 
                            requirements.
Sec. 245. Net metering.
                    Subtitle D--Consumer Protections

Sec. 251. Information disclosure.
Sec. 252. Consumer privacy.
Sec. 253. Unfair trade practices.
Sec. 254. Applicable procedures.
Sec. 255. Federal Trade Commission enforcement.
Sec. 256. State authority.
Sec. 257. Application of subtitle.
Sec. 258. Definitions.
       Subtitle E--Renewable Energy and Rural Construction Grants

Sec. 261. Renewable energy production incentive.
Sec. 262. Assessment of renewable energy resources.
Sec. 263. Federal purchase requirement.
Sec. 264. Rural construction grants.
Sec. 265. Renewable portfolio standard.
Sec. 266. Renewable energy on Federal land.
                  TITLE III--HYDROELECTRIC RELICENSING

Sec. 301. Alternative mandatory conditions and fishways.
Sec. 302. Charges for tribal lands.
Sec. 303. Disposition of hydroelectric charges.
Sec. 304. Annual licenses.
Sec. 305. Enforcement.
Sec. 306. Establishment of hydroelectric relicensing procedures.
Sec. 307. Relicensing study.
Sec. 308. Data collection procedures.
                        TITLE IV--INDIAN ENERGY

Sec. 401. Comprehensive Indian energy program.
Sec. 402. Office of Indian Energy Policy and Programs.
Sec. 403. Conforming amendments.
Sec. 404. Siting energy facilities on tribal lands.
Sec. 405. Indian Mineral Development Act review.
Sec. 406. Renewable energy study.
Sec. 407. Federal Power Marketing Administrations.
Sec. 408. Feasibility study of combined wind and hydropower 
                            demonstration project.
                         TITLE V--NUCLEAR POWER

             Subtitle A--Price-Anderson Act Reauthorization

Sec. 501. Short title.
Sec. 502. Extension of Department of Energy indemnification authority.
Sec. 503. Department of Energy liability limit.
Sec. 504. Incidents outside the United States.
Sec. 505. Reports.
Sec. 506. Inflation adjustment.
Sec. 507. Civil penalties.
Sec. 508. Effective date.
                  Subtitle B--Miscellaneous Provisions

Sec. 511. Uranium sales.
Sec. 512. Reauthorization of thorium reimbursement.
Sec. 513. Fast Flux Test Facility.
     DIVISION B--DOMESTIC OIL AND GAS PRODUCTION AND TRANSPORTATION

                    TITLE VI--OIL AND GAS PRODUCTION

Sec. 601. Permanent authority to operate the Strategic Petroleum 
                            Reserve.
Sec. 602. Federal onshore leasing programs for oil and gas.
Sec. 603. Oil and gas lease acreage limitations.
Sec. 604. Orphaned and abandoned wells on Federal lands.
Sec. 605. Orphaned and abandoned oil and gas well program.
Sec. 606. Offshore development.
Sec. 607. Coalbed methane study.
Sec. 608. Fiscal policies to maximize recovery of domestic oil and gas 
                            resources.
Sec. 609. Strategic Petroleum Reserve.
                    TITLE VII--NATURAL GAS PIPELINES

                 Subtitle A--Alaska Natural Gas Pipeline

Sec. 701. Short title.
Sec. 702. Findings.
Sec. 703. Purposes.
Sec. 704. Issuance of certificate of public convenience and necessity.
Sec. 705. Environmental reviews.
Sec. 706. Federal coordinator.
Sec. 707. Judicial review.
Sec. 708. Loan guarantee.
Sec. 709. Study of alternative means of construction.
Sec. 710. Savings clause.
Sec. 711. Clarification of authority to amend terms and conditions to 
                            meet current project requirements.
Sec. 712. Definitions.
Sec. 713. Sense of the Senate.
                    Subtitle B--Operating Pipelines

Sec. 721. Application of the Historic Preservation Act to operating 
                            pipelines.
Sec. 722. Environmental review and permitting of natural gas pipeline 
                            projects.
    DIVISION C--DIVERSIFYING ENERGY DEMAND AND IMPROVING EFFICIENCY

                     TITLE VIII--FUELS AND VEHICLES

             Subtitle A--CAFE Standards and Related Matters

Sec. 801. Average fuel economy standards for passenger automobiles and 
                            light trucks.
Sec. 802. Fuel economy truth in testing.
Sec. 803. Ensuring safety of passenger automobiles and light trucks.
Sec. 804. High occupancy vehicle exception.
Sec. 805. Credit trading program.
Sec. 806. Green labels for fuel economy.
Sec. 807. Light truck challenge.
Sec. 808. Secretary of Transportation to certify benefits.
Sec. 809. Department of Transportation engineering award program.
Sec. 810. Cooperative technology agreements.
              Subtitle B--Alternative and Renewable Fuels

Sec. 811. Increased use of alternative fuels by federal fleets.
Sec. 812. Exception to HOV passenger requirements for alternative fuel 
                            vehicles.
Sec. 813. Data collection.
Sec. 814. Green school bus pilot program.
Sec. 815. Fuel cell bus development and demonstration program.
Sec. 816. Authorization of appropriations.
Sec. 817. Biodiesel fuel use credits.
Sec. 818. Neighborhood electric vehicles.
Sec. 819. Renewable content of motor vehicle fuel.
            Subtitle C--Additional Fuel Efficiency Measures

Sec. 821. Fuel efficiency of the federal fleet of automobiles.
Sec. 822. Assistance for State programs to retire fuel-inefficient 
                            motor vehicles.
Sec. 823. Idling reduction systems in heavy duty vehicles.
                 Subtitle D--Federal Reformulated Fuels

Sec. 831. Short title.
Sec. 832. Leaking underground storage tanks.
Sec. 833. Authority for water quality protection from fuels.
Sec. 834. Elimination of oxygen content requirement for reformulated 
                            gasoline.
Sec. 835. Public health and environmental impacts of fuels and fuel 
                            additives.
Sec. 836. Analyses of motor vehicle fuel changes.
Sec. 837. Additional opt-in areas under reformulated gasoline program.
Sec. 838. Federal enforcement of state fuels requirements.
Sec. 839. Fuel system requirements hamonization study.
  TITLE IX --ENERGY EFFICIENCY AND ASSISTANCE TO LOW INCOME CONSUMERS

      Subtitle A--Low Income Assistance and State Energy Programs

Sec. 901. Increased funding for LIHEAP, weatherization assistance, and 
                            State energy grants.
Sec. 902. State energy programs.
Sec. 903. Energy efficient schools.
Sec. 904. Low income community energy efficiency pilot program.
                 Subtitle B--Federal Energy Efficiency

Sec. 911. Energy management requirements.
Sec. 912. Energy use measurement and accountability.
Sec. 913. Federal building performance standards.
Sec. 914. Procurement of energy efficient products.
Sec. 915. Repeal of energy savings performance contract sunset.
Sec. 916. Energy savings performance contract definitions.
Sec. 917. Review of energy savings performance contract program.
Sec. 918. Federal Energy Bank.
Sec. 919. Energy and water saving measures in Congressional buildings.
        Subtitle C--Industrial Efficiency and Consumer Products

Sec. 921. Voluntary commitments to reduce industrial energy intensity.
Sec. 922. Authority to set standards for commercial products.
Sec. 923. Additional definitions.
Sec. 924. Additional test procedures.
Sec. 925. Energy labeling.
Sec. 926. Energy Star Program.
Sec. 927. Energy conservation standards for central air conditioners 
                            and heat pumps.
Sec. 928. Energy conservation standards for additional consumer and 
                            commercial products.
Sec. 929. Consumer education on energy efficiency benefits of air 
                            conditioning, heating, and ventilation 
                            maintenance.
                     Subtitle D--Housing Efficiency

Sec. 931. Capacity building for energy efficient, affordable housing.
Sec. 932. Increase of CDBG public services cap for energy conservation 
                            and efficiency activities.
Sec. 933. FHA mortgage insurance incentives for energy efficient 
                            housing.
Sec. 934. Public housing capital fund.
Sec. 935. Grants for energy-conserving improvements for assisted 
                            housing.
Sec. 936. North American Development Bank.
   DIVISION D--INTEGRATION OF ENERGY POLICY AND CLIMATE CHANGE POLICY

               TITLE X--CLIMATE CHANGE POLICY FORMULATION

                       Subtitle A--Global Warming

Sec. 1001. Sense of Congress on global warming.
                  Subtitle B--Climate Change Strategy

Sec. 1011. Short title.
Sec. 1012. Findings.
Sec. 1013. Purpose.
Sec. 1014. Definitions.
Sec. 1015. United States Climate Change Response Strategy.
Sec. 1016. National Office of Climate Change Response of the Executive 
                            Office of the President.
Sec. 1017. Technology innovation program implemented through the Office 
                            of Climate Change Technology of the 
                            Department of Energy.
Sec. 1018. Additional offices and activities.
Sec. 1019. United States Climate Change Response Strategy Review Board.
Sec. 1020. Authorization of appropriations.
               Subtitle C--Science and Technology Policy

Sec. 1031. Global climate change in the Office of Science and 
                            Technology Policy.
Sec. 1032. Establishment of Associate Director for Global Climate 
                            Change.
                  Subtitle D--Miscellaneous Provisions

Sec. 1041. Additional information for regulatory review.
Sec. 1042. Greenhouse gas emissions from federal facilities.
               TITLE XI--NATIONAL GREENHOUSE GAS DATABASE

Sec. 1101. Purpose.
Sec. 1102. Definitions.
Sec. 1103. Establishment of memorandum of agreement.
Sec. 1104. National Greenhouse Gas Database.
Sec. 1105. Report on statutory changes and harmonization.
Sec. 1106. Measurement and verification.
Sec. 1107. Independent review.
Sec. 1108. Authorization of appropriations.
       DIVISION E--ENHANCING RESEARCH, DEVELOPMENT, AND TRAINING

          TITLE XII--ENERGY RESEARCH AND DEVELOPMENT PROGRAMS

Sec. 1201. Short title.
Sec. 1202. Findings.
Sec. 1203. Definitions.
Sec. 1204. Construction with other laws.
                     Subtitle A--Energy Efficiency

Sec. 1211. Enhanced energy efficiency research and development.
Sec. 1212. Energy efficiency science initiative.
Sec. 1213. Next generation lighting initiative.
Sec. 1214. Railroad efficiency.
                      Subtitle B--Renewable Energy

Sec. 1221. Enhanced renewable energy research and development.
Sec. 1222. Bioenergy programs.
Sec. 1223. Hydrogen research and development.
                       Subtitle C--Fossil Energy

Sec. 1231. Enhanced fossil energy research and development.
Sec. 1232. Power plant improvement initiative.
Sec. 1233. Research and development for advanced safe and efficient 
                            coal mining technologies.
Sec. 1234. Ultra-deepwater and unconventional resource exploration and 
                            production technologies.
Sec. 1235. Research and development for new natural gas transportation 
                            technologies.
Sec. 1236. Authorization of appropriations for Office of Arctic Energy.
                       Subtitle D--Nuclear Energy

Sec. 1241. Enhanced nuclear energy research and development.
Sec. 1242. University nuclear science and engineering support.
Sec. 1243. Nuclear energy research initiative.
Sec. 1244. Nuclear energy plant optimization program.
Sec. 1245. Nuclear energy technology development program.
                 Subtitle E--Fundamental Energy Science

Sec. 1251. Enhanced programs in fundamental energy science.
Sec. 1252. Nanoscale science and engineering research.
Sec. 1253. Advanced scientific computing for energy missions.
Sec. 1254. Fusion energy sciences program and planning.
        Subtitle F--Energy, Safety, and Environmental Protection

Sec. 1261. Critical energy infrastructure protection research and 
                            development.
Sec. 1262. Pipeline integrity, safety, and reliability research and 
                            development.
Sec. 1263. Research and demonstration for remediation of groundwater 
                            from energy activities. 
          TITLE XIII--CLIMATE CHANGE RESEARCH AND DEVELOPMENT

               Subtitle A--Department of Energy Programs

Sec. 1301. Program goals.
Sec. 1302. Department of Energy global change science research.
Sec. 1303. Amendments to the Federal Nonnuclear Research and 
                            Development Act of 1974.
             Subtitle B--Department of Agriculture Programs

Sec. 1311. Carbon sequestration basic and applied research.
Sec. 1312. Carbon sequestration demonstration projects and outreach.
          Subtitle C--Clean Energy Technology Exports Program

Sec. 1321. Clean energy technology exports program.
Sec. 1322. International energy technology deployment program.
           Subtitle D--Climate Change Science and Information

      PART I--AMENDMENTS TO THE GLOBAL CHANGE RESEARCH ACT OF 1990

Sec. 1331. Amendment of Global Change Research Act of 1990.
Sec. 1332. Changes in definitions.
Sec. 1333. Change in committee name.
Sec. 1334. Change in national global change research plan.
Sec. 1335. Integrated Program Office.
             PART II--NATIONAL CLIMATE SERVICES MONITORING

Sec. 1341. Amendment of National Climate Program Act.
Sec. 1342. Changes in findings.
Sec. 1343. Tools for regional planning.
Sec. 1344. Authorization of appropriations.
Sec. 1345. National Climate Service Plan.
Sec. 1346. International Pacific Research and Cooperation.
Sec. 1347. Reporting on trends.
              PART III--OCEAN AND COASTAL OBSERVING SYSTEM

Sec. 1351. Ocean and coastal observing system.
Sec. 1352. Authorization of appropriations.
                 Subtitle E--Climate Change Technology

Sec. 1361. NIST greenhouse gas functions.
Sec. 1362. Development of new measurement technologies.
Sec. 1363. Enhanced environmental measurements and standards.
Sec. 1364. Technology development and diffusion.
Sec. 1365. Authorization of appropriations.
         Subtitle F--Climate Adaptation and Hazards Prevention

                   PART I--ASSESSMENT AND ADAPTATION

Sec. 1371. Regional climate assessment and adaptation program.
Sec. 1372. Coastal vulnerability and adaptation.
            PART II--FORECASTING AND PLANNING PILOT PROGRAMS

Sec. 1381. Remote sensing pilot projects.
Sec. 1382. Database establishment.
Sec. 1383. Definitions.
Sec. 1384. Authorization of appropriations.
      TITLE XIV--MANAGEMENT OF DOE SCIENCE AND TECHNOLOGY PROGRAMS

Sec. 1401. Definitions.
Sec. 1402. Availability of funds.
Sec. 1403. Cost sharing.
Sec. 1404. Merit review of proposals.
Sec. 1405. External technical review of departmental programs.
Sec. 1406. Improved coordination and management of civilian science and 
                            technology programs.
Sec. 1407. Improved coordination of technology transfer activities.
Sec. 1408. Technology infrastructure program.
Sec. 1409. Small business advocacy and assistance.
Sec. 1410. Other transactions.
Sec. 1411. Mobility of scientific and technical personnel.
Sec. 1412. National Academy of Sciences report.
Sec. 1413. Report on technology readiness and barriers to technology 
                            transfer.
                    TITLE XV--PERSONNEL AND TRAINING

Sec. 1501. Workforce trends and traineeship grants.
Sec. 1502. Postdoctoral and senior research fellowships in energy 
                            research.
Sec. 1503. Training guidelines for electric energy industry personnel.
Sec. 1504. National Center on Energy Management and Building 
                            Technologies.
Sec. 1505. Improved access to energy-related scientific and technical 
                            careers.
             DIVISION F--TECHNOLOGY ASSESSMENT AND STUDIES

                    TITLE XVI--TECHNOLOGY ASSESSMENT

Sec. 1601. National Science and Technology Assessment Service.
                          TITLE XVII--STUDIES

Sec. 1701. Regulatory reviews.
Sec. 1702. Assessment of dependence of Hawaii on oil.
Sec. 1703. Study of siting an electric transmission system on Amtrak 
                            right-of-way.
               DIVISION G--ENERGY INFRASTRUCTURE SECURITY

              TITLE XVIII--CRITICAL ENERGY INFRASTRUCTURE

               Subtitle A--Department of Energy Programs

Sec. 1801. Definitions.
Sec. 1802. Role of the Department of Energy.
Sec. 1803. Critical energy infrastructure programs.
Sec. 1804. Advisory Committee on Energy Infrastructure Security.
Sec. 1805. Best practices and standards for energy infrastructure 
                            security.
            Subtitle B--Department of the Interior Programs

Sec. 1811. Outer Continental Shelf energy infrastructure security.

   DIVISION A--RELIABLE AND DIVERSE POWER GENERATION AND TRANSMISSION

                     TITLE I--REGIONAL COORDINATION

SEC. 101. POLICY ON REGIONAL COORDINATION.

    (a) Statement of Policy.--It is the policy of the Federal 
Government to encourage States to coordinate, on a regional basis, 
State energy policies to provide reliable and affordable energy 
services to the public while minimizing the impact of providing energy 
services on communities and the environment.
    (b) Definition of Energy Services.--For purposes of this section, 
the term ``energy services'' means--
            (1) the generation or transmission of electric energy,
            (2) the transportation, storage, and distribution of crude 
        oil, residual fuel oil, refined petroleum product, or natural 
        gas, or
            (3) the reduction in load through increased efficiency, 
        conservation, or load control measures.

SEC. 102. FEDERAL SUPPORT FOR REGIONAL COORDINATION.

    (a) Technical Assistance.--The Secretary of Energy shall provide 
technical assistance to States and regional organizations formed by two 
or more States to assist them in coordinating their energy policies on 
a regional basis. Such technical assistance may include assistance in--
            (1) assessing future supply availability and demand 
        requirements,
            (2) planning and siting additional energy infrastructure, 
        including generating facilities, electric transmission 
        facilities, pipelines, refineries, and distributed generation 
        facilities to meet regional needs,
            (3) identifying and resolving problems in distribution 
        networks,
            (4) developing plans to respond to surge demand or 
        emergency needs, and
            (5) developing renewable energy, energy efficiency, 
        conservation, and load control programs.
    (b) Annual Conference on Regional Energy Coordination.--
            (1) Annual conference.--The Secretary of Energy shall 
        convene an annual conference to promote regional coordination 
        on energy policy and infrastructure issues.
            (2) Participation.--The Secretary of Energy shall invite 
        appropriate representatives of Federal, State, and regional 
        energy organizations, and other interested parties.
            (3) State and federal agency cooperation.--The Secretary of 
        Energy shall consult and cooperate with State and regional 
        energy organizations, the Secretary of the Interior, the 
        Secretary of Agriculture, the Secretary of Commerce, the 
        Secretary of the Treasury, the Chairman of the Federal Energy 
        Regulatory Commission, the Administrator of the Environmental 
        Protection Agency, and the Chairman of the Council on 
        Environmental Quality in the planning and conduct of the 
        conference.
            (4) Agenda.--The Secretary of Energy, in consultation with 
        the officials identified in paragraph (3) and participants 
        identified in paragraph (2), shall establish an agenda for each 
        conference that promotes regional coordination on energy policy 
        and infrastructure issues.
            (5) Recommendations.--Not later than 60 days after the 
        conclusion of each annual conference, the Secretary of Energy 
        shall report to the President and the Congress recommendations 
        arising out of the conference that may improve--
                    (A) regional coordination on energy policy and 
                infrastructure issues, and
                    (B) Federal support for regional coordination.

                         TITLE II--ELECTRICITY

            Subtitle A--Amendments to the Federal Power Act

SEC. 201. DEFINITIONS.

    (a) Definition of Electric Utility.--Section 3(22) of the Federal 
Power Act (16 U.S.C. 796(22)) is amended to read as follows:
            ``(22) `electric utility' means any person or Federal or 
        State agency (including any municipality) that sells electric 
        energy; such term includes the Tennessee Valley Authority and 
        each Federal power marketing agency.
    (b) Definition of Transmitting Utility.--Section 3(23) of the 
Federal Power Act (16 U.S.C. 796(23)) is amended to read as follows:
            ``(23) Transmitting utility.--The term `transmitting 
        utility' means an entity (including any entity described in 
        section 201(f)) that owns or operates facilities used for the 
        transmission of electric energy in--
                    ``(A) interstate commerce; or
                    ``(B) for the sale of electric energy at 
                wholesale.''.

SEC. 202. ELECTRIC UTILITY MERGERS.

    Section 203(a) of the Federal Power Act (16 U.S.C. 824b) is amended 
to read as follows:
    ``(a)(1) No public utility shall, without first having secured an 
order of the Commission authorizing it to do so--
            ``(A) sell, lease, or otherwise dispose of the whole of its 
        facilities subject to the jurisdiction of the Commission, or 
        any part thereof of a value in excess of $1,000,000,
            ``(B) merge or consolidate, directly or indirectly, such 
        facilities or any part thereof with the facilities of any other 
        person, by any means whatsoever,
            ``(C) purchase, acquire, or take any security of any other 
        public utility, or
            ``(D) purchase, lease, or otherwise acquire existing 
        facilities for the generation of electric energy or for the 
        production or transportation of natural gas.
    ``(2) No holding company in a holding company system that includes 
a transmitting utility or an electric utility company shall purchase, 
acquire, or take any security of, or, by any means whatsoever, directly 
or indirectly, merge or consolidate with a transmitting utility, an 
electric utility company, a gas utility company, or a holding company 
in a holding company system that includes a transmitting utility, an 
electric utility company, or a gas utility company, without first 
having secured an order of the Commission authorizing it to do so.
    ``(3) Upon application for such approval the Commission shall give 
reasonable notice in writing to the Governor and State commission of 
each of the States in which the physical property affected, or any part 
thereof, is situated, and to such other persons as it may deem 
advisable.
    ``(4) After notice and opportunity for hearing, if the Commission 
finds that the proposed disposition, consolidation, acquisition, or 
control will be consistent with the public interest, it shall approve 
the same.
    ``(5) For purposes of this subsection, the terms `electric utility 
company', `gas utility company', `holding company', and `holding 
company system' have the meaning given those terms in the Public 
Utility Holding Company Act of 2002.
    ``(6) Notwithstanding section 201(b)(1), facilities used for the 
generation of electric energy shall be subject to the jurisdiction of 
the Commission for purposes of this section.''.

SEC. 203. MARKET-BASED RATES.

    (a) Approval of Market-Based Rates.--Section 205 of the Federal 
Power Act (16 U.S.C. 824d) is amended by adding at the end the 
following:
    ``(h) The Commission may determine whether a market-based rate for 
the sale of electric energy subject to the jurisdiction of the 
Commission is just and reasonable and not unduly discriminatory or 
preferential. In making such determination, the Commission shall 
consider--
            ``(1) whether the seller and its affiliates have, or have 
        adequately mitigated, market power in the generation and 
        transmission of electric energy;
            ``(2) whether the sale is made in a competitive market;
            ``(3) whether market mechanisms, such as power exchanges 
        and bid auctions, function adequately;
            ``(4) the effect of demand response mechanisms;
            ``(5) the effect of mechanisms or requirements intended to 
        ensure adequate reserve margins; and
            ``(6) other such considerations as the Commission may deem 
        to be appropriate and in the public interest.''.
    (b) Revocation of Market-Based Rates.--Section 206 of the Federal 
Power Act (16 U.S.C. 824e) is amended by adding at the end the 
following:
    ``(f) Whenever the Commission, after a hearing had upon its own 
motion or upon complaint, finds that a rate charged by a public utility 
authorized to charge a market-based rate under section 205 is unjust, 
unreasonable, unduly discriminatory or preferential, the Commission 
shall determine the just and reasonable rate and fix the same by order 
in accordance with this section, or order such other action as will, in 
the judgment of the Commission, adequately ensure a just and reasonable 
market-based rate.''.

SEC. 204. REFUND EFFECTIVE DATE.

    Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b)) is 
amended by--
            (1) striking ``60 days after the filing of such complaint 
        nor later than 5 months after the expiration of such 60-day 
        period'' in the second sentence and inserting ``on which the 
        complaint is filed''; and
            (2) striking ``60 days after the publication by the 
        Commission of notice of its intention to initiate such 
        proceeding nor later than 5 months after the expiration of such 
        60-day period'' in the third sentence and inserting ``on which 
        the Commission publishes notice of its intention to initiate 
        such proceeding''.

SEC. 205. TRANSMISSION INTERCONNECTIONS.

    Section 210 of the Federal Power Act (16 U.S.C. 824i) is amended to 
read as follows:

                ``transmission interconnection authority

    ``Sec. 210. (a)(1) The Commission shall, by rule, establish 
technical standards and procedures for the interconnection of 
facilities used for the generation of electric energy with facilities 
used for the transmission of electric energy in interstate commerce. 
The rule shall provide--
            ``(A) criteria to ensure that an interconnection will not 
        unreasonably impair the reliability of the transmission system; 
        and
            ``(B) criteria for the apportionment or reimbursement of 
        the costs of making the interconnection.
    ``(2) Notwithstanding section 201(f), a transmitting utility shall 
interconnect its transmission facilities with the generation facilities 
of a power producer upon the application of the power producer if the 
power producer complies with the requirements of the rule.
    ``(b) Upon the application of a power producer or its own motion, 
the Commission may, after giving notice and an opportunity for a 
hearing to any entity whose interest may be affected, issue an order 
requiring--
            ``(1) the physical connection of facilities used for the 
        generation of electric energy with facilities used for the 
        transmission of electric energy in interstate commerce;
            ``(2) such action as may be necessary to make effective any 
        such physical connection;
            ``(3) such sale or exchange of electric energy or other 
        coordination, as may be necessary to carry out the purposes of 
        such order; or
            ``(4) such increase in transmission capacity as may be 
        necessary to carry out the purposes of such order.
    ``(c) As used in this section, the term `power producer' means an 
entity that owns or operates a facility used for the generation of 
electric energy.''.

SEC. 206. OPEN ACCESS TRANSMISSION BY CERTAIN UTILITIES.

    Part II of the Federal Power Act is further amended by inserting 
after section 211 the following:

          ``open access by unregulated transmitting utilities

    ``Sec. 211A. (1) Subject to section 212(h), the Commission may, by 
rule or order, require an unregulated transmitting utility to provide 
transmission services--
            ``(A) at rates that are comparable to those that the 
        unregulated transmitting utility charges itself, and
            ``(B) on terms and conditions (not relating to rates) that 
        are comparable to those under Commission rules that require 
        public utilities to offer open access transmission services and 
        that are not unduly discriminatory or preferential.
    ``(2) The Commission shall exempt from any rule or order under this 
subsection any unregulated transmitting utility that--
            ``(A) sells no more than 4,000,000 megawatt hours of 
        electricity per year,
            ``(B) does not own or operate any transmission facilities 
        that are necessary for operating an interconnected transmission 
        system (or any portion thereof), or
            ``(C) meets other criteria the Commission determines to be 
        in the public interest.
    ``(3) The rate changing procedures applicable to public utilities 
under subsections (c) and (d) of section 205 are applicable to 
unregulated transmitting utilities for purposes of this section.
    ``(4) In exercising its authority under paragraph (1), the 
Commission may remand transmission rates to an unregulated transmitting 
utility for review and revision where necessary to meet the 
requirements of paragraph (1).
    ``(5) The provision of transmission services under paragraph (1) 
does not preclude a request for transmission services under section 
211.
    ``(6) The Commission may not require a State or municipality to 
take action under this section that constitutes a private business use 
for purposes of section 141 of the Internal Revenue Code of 1986 (26 
U.S.C. 141).
    ``(7) For purposes of this subsection, the term `unregulated 
transmitting utility' means an entity that--
            ``(A) owns or operates facilities used for the transmission 
        of electric energy in interstate commerce, and
            ``(B) is either an entity described in section 201(f) or a 
        rural electric cooperative.''.

SEC. 207. ELECTRIC RELIABILITY STANDARDS.

    Part II of the Federal Power Act is further amended by adding at 
the end the following:

``SEC. 215. ELECTRIC RELIABILITY STANDARDS.

    ``(a) Duty of the Commission.--The Commission shall establish and 
enforce one or more systems of mandatory electric reliability standards 
to ensure the reliable operation of the interstate transmission system, 
which shall be applicable to--
            ``(1) any entity that sells, purchases, or transmits, 
        electric energy using the interstate transmission system, and
            ``(2) any entity that owns, operates, or maintains 
        facilities that are a part of the interstate transmission 
        system.
    ``(b) Standards.--In carrying out its responsibility under 
subsection (a), the Commission may adopt and enforce, in whole or in 
part, a reliability standard proposed or adopted by the North American 
Electric Reliability Council, a regional reliability council, a similar 
organization, or a State regulatory authority.
    ``(c) Enforcement.--In carrying out its responsibility under 
subsection (a), the Commission may certify one or more self-regulating 
reliability organizations (which may include the North American 
Electric Reliability Council, one or more regional reliability 
councils, one or more regional transmission organizations, or any 
similar organization) to ensure the reliable operation of the 
interstate transmission system and to monitor and enforce compliance of 
their members with electric reliability standards adopted under this 
section.
    ``(d) Cooperation With Canada and Mexico.--The Commission shall 
ensure that any self-regulating reliability organization certified 
under this section, one or more of whose members are interconnected 
with transmitting utilities in Canada or the Republic of Mexico, 
provide for the participation of such utilities in the governance of 
the organization and the adoption of reliability standards. Nothing in 
this section shall be construed to extend the jurisdiction of the 
Commission outside of the United States.
    ``(e) Preservation of State Authority.--Nothing in this section 
shall be construed to preempt the authority of any State to take action 
to ensure the safety, adequacy, and reliability of local distribution 
facilities service within the State, except where the exercise of such 
authority unreasonably impairs the reliability of the interstate 
transmission system.
    ``(f) Definitions.--For purposes of this section:
            ``(1) The term `interstate transmission system' means the 
        network of facilities used for the transmission of electric 
        energy in interstate commerce.
            ``(2) The term `reliability' means the ability of the 
        interstate transmission system to transmit sufficient electric 
        energy to supply the aggregate electric demand and energy 
        requirements of electricity consumers at all times and the 
        ability of the system to withstand sudden disturbances.''.

SEC. 208. MARKET TRANSPARENCY RULES.

    Part II of the Federal Power Act is further amended by adding at 
the end the following:

``SEC. 216. MARKET TRANSPARENCY RULES.

    ``(a) Commission Rules.--Not later than 180 days after the date of 
enactment of this section, the Commission shall issue rules 
establishing an electronic information system to provide information 
about the availability and price of wholesale electric energy and 
transmission services to the Commission, state commissions, buyers and 
sellers of wholesale electric energy, users of transmission services, 
and the public on a timely basis.
    ``(b) Information Required.--The Commission shall require--
            ``(1) each regional transmission organization to provide 
        statistical information about the available capacity and 
        capacity constraints of transmission facilities operated by the 
        organization; and
            ``(2) each broker, exchange, or other market-making entity 
        that matches offers to sell and offers to buy wholesale 
        electric energy in interstate commerce to provide statistical 
        information about the amount and sale price of sales of 
        electric energy at wholesale in interstate commerce it 
        transacts.
    ``(c) Timely Basis.--The Commission shall require the information 
required under subsection (b) to be posted on the Internet as soon as 
practicable and updated as frequently as practicable.
    ``(d) Protection of Sensitive Information.--The Commission shall 
exempt from disclosure commercial or financial information that the 
Commission, by rule or order, determines to be privileged, 
confidential, or otherwise sensitive.''.

SEC. 209. ACCESS TO TRANSMISSION BY INTERMITTENT GENERATORS.

    Part II of the Federal Power Act is further amended by adding at 
the end the following:

``SEC. 217. ACCESS TO TRANSMISSION BY INTERMITTENT GENERATORS.

    ``(a) Fair Treatment of Intermittent Generators.--The Commission 
shall ensure that all transmitting utilities provide transmission 
service to intermittent generators in a manner that does not penalize 
such generators, directly or indirectly, for characteristics that are--
            ``(1) inherent to intermittent energy resources; and
            ``(2) are beyond the control of such generators.
    ``(b) Policies.--The Commission shall ensure that the requirement 
in subsection (a) is met by adopting such policies as it deems 
appropriate which shall include, but not be limited to, the following:
            ``(1) Subject to the sole exception set forth in paragraph 
        (2), the Commission shall ensure that the rates transmitting 
        utilities charge intermittent generator customers for 
        transmission services do not directly or indirectly penalize 
        intermittent generator customers for scheduling deviations.
            ``(2) The Commission may exempt a transmitting utility from 
        the requirement set forth in subsection (b) if the transmitting 
        utility demonstrates that scheduling deviations by its 
        intermittent generator customers are likely to have a 
        substantial adverse impact on the reliability of the 
        transmitting utility's system. For purposes of administering 
        this exemption, there shall be a rebuttable presumption of no 
        adverse impact where intermittent generators collectively 
        constitute 20 percent or less of total generation 
        interconnected with transmitting utility's system and using 
        transmission services provided by transmitting utility.
            ``(3) The Commission shall ensure that to the extent any 
        transmission charges recovering the transmitting utility's 
        embedded costs are assessed to intermittent generators, they 
        are assessed to such generators on the basis of kilowatt-hours 
        generated rather than the intermittent generator's capacity.
            ``(4) The Commission shall require transmitting utilities 
        to offer to intermittent generators, and may require 
        transmitting utilities to offer to all transmission customers, 
        access to nonfirm transmission service pursuant to long-term 
        contracts of up to ten years duration under reasonable terms 
        and conditions.
    ``(c) Definitions.--As used in this section:
            ``(1) The term `intermittent generator' means a facility 
        that generates electricity using wind or solar energy and no 
        other energy source.
            ``(2) The term `nonfirm transmission service' means 
        transmission service provided on an `as available' basis.
            ``(3) The term `scheduling deviation' means delivery of 
        more or less energy than has previously been forecast in a 
        schedule submitted by an intermittent generator to a control 
        area operator or transmitting utility.''.

SEC. 210. ENFORCEMENT.

    (a) Complaints.--Section 306 of the Federal Power Act (16 U.S.C. 
825e) is amended by--
            (1) inserting ``electric utility,'' after ``Any person,''; 
        and
            (2) inserting ``transmitting utility,'' after ``licensee'' 
        each place it appears.
    (b) Investigations.--Section 307(a) of the Federal Power Act (16 
U.S.C. 825f(a)) is amended by inserting ``or transmitting utility'' 
after ``any person'' in the first sentence.
    (c) Review of Commission Orders.--Section 313(a) of the Federal 
Power Act (16 U.S.C. 8251) is amended by inserting ``electric 
utility,'' after ``Any person,'' in the first sentence.
    (d) Criminal Penalties.--Section 316(c) of the Federal Power Act 
(16 U.S.C. 825o(c)) is repealed.
    (e) Civil Penalties.--Section 316A of the Federal Power Act (16 
U.S.C. 825o-1) is amended by striking ``section 211, 212, 213, or 214'' 
each place it appears and inserting ``Part II''.

    Subtitle B--Amendments to the Public Utility Holding Company Act

SEC. 221. SHORT TITLE.

    This subtitle may be cited as the ``Public Utility Holding Company 
Act of 2002''.

SEC. 222. DEFINITIONS.

    For purposes of this subtitle:
            (1) The term ``affiliate'' of a company means any company, 
        5 percent or more of the outstanding voting securities of which 
        are owned, controlled, or held with power to vote, directly or 
        indirectly, by such company.
            (2) The term ``associate company'' of a company means any 
        company in the same holding company system with such company.
            (3) The term ``Commission'' means the Federal Energy 
        Regulatory Commission.
            (4) The term ``company'' means a corporation, partnership, 
        association, joint stock company, business trust, or any 
        organized group of persons, whether incorporated or not, or a 
        receiver, trustee, or other liquidating agent of any of the 
        foregoing.
            (5) The term ``electric utility company'' means any company 
        that owns or operates facilities used for the generation, 
        transmission, or distribution of electric energy for sale.
            (6) The terms ``exempt wholesale generator'' and ``foreign 
        utility company'' have the same meanings as in sections 32 and 
        33, respectively, of the Public Utility Holding Company Act of 
        1935 (15 U.S.C. 79z-5a, 79z-5b), as those sections existed on 
        the day before the effective date of this subtitle.
            (7) The term ``gas utility company'' means any company that 
        owns or operates facilities used for distribution at retail 
        (other than the distribution only in enclosed portable 
        containers or distribution to tenants or employees of the 
        company operating such facilities for their own use and not for 
        resale) of natural or manufactured gas for heat, light, or 
        power.
            (8) The term ``holding company'' means--
                    (A) any company that directly or indirectly owns, 
                controls, or holds, with power to vote, 10 percent or 
                more of the outstanding voting securities of a public 
                utility company or of a holding company of any public 
                utility company; and
                    (B) any person, determined by the Commission, after 
                notice and opportunity for hearing, to exercise 
                directly or indirectly (either alone or pursuant to an 
                arrangement or understanding with one or more persons) 
                such a controlling influence over the management or 
                policies of any public utility company or holding 
                company as to make it necessary or appropriate for the 
                rate protection of utility customers with respect to 
                rates that such person be subject to the obligations, 
                duties, and liabilities imposed by this subtitle upon 
                holding companies.
            (9) The term ``holding company system'' means a holding 
        company, together with its subsidiary companies.
            (10) The term ``jurisdictional rates'' means rates 
        established by the Commission for the transmission of electric 
        energy in interstate commerce, the sale of electric energy at 
        wholesale in interstate commerce, the transportation of natural 
        gas in interstate commerce, and the sale in interstate commerce 
        of natural gas for resale for ultimate public consumption for 
        domestic, commercial, industrial, or any other use.
            (11) The term ``natural gas company'' means a person 
        engaged in the transportation of natural gas in interstate 
        commerce or the sale of such gas in interstate commerce for 
        resale.
            (12) The term ``person'' means an individual or company.
            (13) The term ``public utility'' means any person who owns 
        or operates facilities used for transmission of electric energy 
        in interstate commerce or sales of electric energy at wholesale 
        in interstate commerce.
            (14) The term ``public utility company'' means an electric 
        utility company or a gas utility company.
            (15) The term ``State commission'' means any commission, 
        board, agency, or officer, by whatever name designated, of a 
        State, municipality, or other political subdivision of a State 
        that, under the laws of such State, has jurisdiction to 
        regulate public utility companies.
            (16) The term ``subsidiary company'' of a holding company 
        means--
                    (A) any company, 10 percent or more of the 
                outstanding voting securities of which are directly or 
                indirectly owned, controlled, or held with power to 
                vote, by such holding company; and
                    (B) any person, the management or policies of which 
                the Commission, after notice and opportunity for 
                hearing, determines to be subject to a controlling 
                influence, directly or indirectly, by such holding 
                company (either alone or pursuant to an arrangement or 
                understanding with one or more other persons) so as to 
                make it necessary for the rate protection of utility 
                customers with respect to rates that such person be 
                subject to the obligations, duties, and liabilities 
                imposed by this subtitle upon subsidiary companies of 
                holding companies.
            (17) The term ``voting security'' means any security 
        presently entitling the owner or holder thereof to vote in the 
        direction or management of the affairs of a company.

SEC. 223. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935.

    The Public Utility Holding Company Act of 1935 (15 U.S.C. 79 et 
seq.) is repealed.

SEC. 224. FEDERAL ACCESS TO BOOKS AND RECORDS.

    (a) In General.--Each holding company and each associate company 
thereof shall maintain, and shall make available to the Commission, 
such books, accounts, memoranda, and other records as the Commission 
deems to be relevant to costs incurred by a public utility or natural 
gas company that is an associate company of such holding company and 
necessary or appropriate for the protection of utility customers with 
respect to jurisdictional rates.
    (b) Affiliate Companies.--Each affiliate of a holding company or of 
any subsidiary company of a holding company shall maintain, and shall 
make available to the Commission, such books, accounts, memoranda, and 
other records with respect to any transaction with another affiliate, 
as the Commission deems to be relevant to costs incurred by a public 
utility or natural gas company that is an associate company of such 
holding company and necessary or appropriate for the protection of 
utility customers with respect to jurisdictional rates.
    (c) Holding Company Systems.--The Commission may examine the books, 
accounts, memoranda, and other records of any company in a holding 
company system, or any affiliate thereof, as the Commission deems to be 
relevant to costs incurred by a public utility or natural gas company 
within such holding company system and necessary or appropriate for the 
protection of utility customers with respect to jurisdictional rates.
    (d) Confidentiality.--No member, officer, or employee of the 
Commission shall divulge any fact or information that may come to his 
or her knowledge during the course of examination of books, accounts, 
memoranda, or other records as provided in this section, except as may 
be directed by the Commission or by a court of competent jurisdiction.

SEC. 225. STATE ACCESS TO BOOKS AND RECORDS.

    (a) In General.--Upon the written request of a State commission 
having jurisdiction to regulate a public utility company in a holding 
company system, the holding company or any associate company or 
affiliate thereof, other than such public utility company, wherever 
located, shall produce for inspection books, accounts, memoranda, and 
other records that--
            (1) have been identified in reasonable detail by the State 
        commission;
            (2) the State commission deems are relevant to costs 
        incurred by such public utility company; and
            (3) are necessary for the effective discharge of the 
        responsibilities of the State commission with respect to such 
proceeding.
    (b) Limitation.--Subsection (a) does not apply to any person that 
is a holding company solely by reason of ownership of one or more 
qualifying facilities under the Public Utility Regulatory Policies Act 
of 1978 (16 U.S.C. 2601 et seq.).
    (c) Confidentiality of Information.--The production of books, 
accounts, memoranda, and other records under subsection (a) shall be 
subject to such terms and conditions as may be necessary and 
appropriate to safeguard against unwarranted disclosure to the public 
of any trade secrets or sensitive commercial information.
    (d) Effect on State Law.--Nothing in this section shall preempt 
applicable State law concerning the provision of books, accounts, 
memoranda, and other records, or in any way limit the rights of any 
State to obtain books, accounts, memoranda, and other records under any 
other Federal law, contract, or otherwise.
    (e) Court Jurisdiction.--Any United States district court located 
in the State in which the State commission referred to in subsection 
(a) is located shall have jurisdiction to enforce compliance with this 
section.

SEC. 226. EXEMPTION AUTHORITY.

    (a) Rulemaking.--Not later than 90 days after the effective date of 
this subtitle, the Commission shall promulgate a final rule to exempt 
from the requirements of section 224 any person that is a holding 
company, solely with respect to one or more--
            (1) qualifying facilities under the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.);
            (2) exempt wholesale generators; or
            (3) foreign utility companies.
    (b) Other Authority.--The Commission shall exempt a person or 
transaction from the requirements of section 224, if, upon application 
or upon the motion of the Commission--
            (1) the Commission finds that the books, accounts, 
        memoranda, and other records of any person are not relevant to 
        the jurisdictional rates of a public utility or natural gas 
        company; or
            (2) the Commission finds that any class of transactions is 
        not relevant to the jurisdictional rates of a public utility or 
        natural gas company.

SEC. 227. AFFILIATE TRANSACTIONS.

    (a) Commission Authority Unaffected.--Nothing in this subtitle 
shall limit the authority of the Commission under the Federal Power Act 
(16 U.S.C. 791a et seq.) to require that jurisdictional rates are just 
and reasonable, including the ability to deny or approve the pass 
through of costs, the prevention of cross-subsidization, and the 
promulgation of such rules and regulations as are necessary or 
appropriate for the protection of utility consumers.
    (b) Recovery of Costs.--Nothing in this subtitle shall preclude the 
Commission or a State commission from exercising its jurisdiction under 
otherwise applicable law to determine whether a public utility company, 
public utility, or natural gas company may recover in rates any costs 
of an activity performed by an associate company, or any costs of goods 
or services acquired by such public utility company from an associate 
company.

SEC. 228. APPLICABILITY.

    Except as otherwise specifically provided in this subtitle, no 
provision of this subtitle shall apply to, or be deemed to include--
            (1) the United States;
            (2) a State or any political subdivision of a State;
            (3) any foreign governmental authority not operating in the 
        United States;
            (4) any agency, authority, or instrumentality of any entity 
        referred to in paragraph (1), (2), or (3); or
            (5) any officer, agent, or employee of any entity referred 
        to in paragraph (1), (2), or (3) acting as such in the course 
        of his or her official duty.

SEC. 229. EFFECT ON OTHER REGULATIONS.

    Nothing in this subtitle precludes the Commission or a State 
commission from exercising its jurisdiction under otherwise applicable 
law to protect utility customers.

SEC. 230. ENFORCEMENT.

    The Commission shall have the same powers as set forth in sections 
306 through 317 of the Federal Power Act (16 U.S.C. 825e-825p) to 
enforce the provisions of this subtitle.

SEC. 231. SAVINGS PROVISIONS.

    (a) In General.--Nothing in this subtitle prohibits a person from 
engaging in or continuing to engage in activities or transactions in 
which it is legally engaged or authorized to engage on the effective 
date of this subtitle.
    (b) Effect on Other Commission Authority.--Nothing in this subtitle 
limits the authority of the Commission under the Federal Power Act (16 
U.S.C. 791a et seq.) (including section 301 of that Act) or the Natural 
Gas Act (15 U.S.C. 717 et seq.) (including section 8 of that Act).

SEC. 232. IMPLEMENTATION.

    Not later than 18 months after the date of enactment of this 
subtitle, the Commission shall--
            (1) promulgate such regulations as may be necessary or 
        appropriate to implement this subtitle (other than section 
        225); and
            (2) submit to the Congress detailed recommendations on 
        technical and conforming amendments to Federal law necessary to 
        carry out this subtitle and the amendments made by this 
        subtitle.

SEC. 233. TRANSFER OF RESOURCES.

    All books and records that relate primarily to the functions 
transferred to the Commission under this subtitle shall be transferred 
from the Securities and Exchange Commission to the Commission.

SEC. 234. INTER-AGENCY REVIEW OF COMPETITION IN THE WHOLESALE AND 
              RETAIL MARKETS FOR ELECTRIC ENERGY.

    (a) Task Force.--There is established an inter-agency task force, 
to be known as the ``Electric Energy Market Competition Task Force'' 
(referred to in this section as the ``task force''), which shall 
consist of--
            (1) 1 member each from--
                    (A) the Department of Justice, to be appointed by 
                the Attorney General of the United States;
                    (B) the Federal Energy Regulatory Commission, to be 
                appointed by the chairman of that Commission; and
                    (C) the Federal Trade Commission, to be appointed 
                by the chairman of that Commission; and
            (2) 2 advisory members (who shall not vote), of whom--
                    (A) 1 shall be appointed by the Secretary of 
                Agriculture to represent the Rural Utility Service; and
                    (B) 1 shall be appointed by the Chairman of the 
                Securities and Exchange Commission to represent that 
                Commission.
    (b) Study and Report.--
            (1) Study.--The task force shall perform a study and 
        analysis of the protection and promotion of competition within 
        the wholesale and retail market for electric energy in the 
        United States.
            (2) Report.--
                    (A) Final report.--Not later than 1 year after the 
                effective date of this subtitle, the task force shall 
                submit a final report of its findings under paragraph 
                (1) to the Congress.
                    (B) Public comment.--At least 60 days before 
                submission of a final report to the Congress under 
                subparagraph (A), the task force shall publish a draft 
                report in the Federal Register to provide for public 
                comment.
    (c) Focus.--The study required by this section shall examine--
            (1) the best means of protecting competition within the 
        wholesale and retail electric market;
            (2) activities within the wholesale and retail electric 
        market that may allow unfair and unjustified discriminatory and 
        deceptive practices;
            (3) activities within the wholesale and retail electric 
        market, including mergers and acquisitions, that deny market 
        access or suppress competition;
            (4) cross-subsidization that may occur between regulated 
        and nonregulated activities; and
            (5) the role of State public utility commissions in 
        regulating competition in the wholesale and retail electric 
        market.
    (d) Consultation.--In performing the study required by this 
section, the task force shall consult with and solicit comments from 
its advisory members, the States, representatives of the electric power 
industry, and the public.

SEC. 235. GAO STUDY ON IMPLEMENTATION.

    (a) Study.--The Comptroller General shall conduct a study of the 
success of the Federal Government and the States during the 18-month 
period following the effective date of this subtitle in--
            (1) the prevention of anticompetitive practices and other 
        abuses by public utility holding companies, including cross-
        subsidization and other market power abuses; and
            (2) the promotion of competition and efficient energy 
        markets to the benefit of consumers.
    (b) Report to Congress.--Not earlier than 18 months after the 
effective date of this subtitle or later than 24 months after that 
effective date, the Comptroller General shall submit a report to the 
Congress on the results of the study conducted under subsection (a), 
including probable causes of its findings and recommendations to the 
Congress and the States for any necessary legislative changes.

SEC. 236. EFFECTIVE DATE.

    This subtitle shall take effect 18 months after the date of 
enactment of this subtitle.

SEC. 237. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such funds as may be 
necessary to carry out this subtitle.

SEC. 238. CONFORMING AMENDMENTS TO THE FEDERAL POWER ACT.

    (a) Conflict of Jurisdiction.--Section 318 of the Federal Power Act 
(16 U.S.C. 825q) is repealed.
    (b) Definitions.--
            (1) Section 201(g) of the Federal Power Act (16 U.S.C. 
        824(g)) is amended by striking ``1935'' and inserting ``2002''.
            (2) Section 214 of the Federal Power Act (16 U.S.C. 824m) 
        is amended by striking ``1935'' and inserting ``2002''.

Subtitle C--Amendments to the Public Utility Regulatory Policies Act of 
                                  1978

SEC. 241. REAL-TIME PRICING STANDARD.

    (a) Adoption of Standard.--Section 111(d) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by 
adding at the end the following:
            ``(11) Real-time pricing.--(A) Each electric utility shall, 
        at the request of an electric consumer, provide electric 
        service under a real-time rate schedule, under which the rate 
        charged by the electric utility varies by the hour (or smaller 
        time interval) according to changes in the electric utility's 
        wholesale power cost. The real-time pricing service shall 
        enable the electric consumer to manage energy use and cost 
        through real-time metering and communications technology.
            ``(B) For purposes of implementing this paragraph, any 
        reference contained in this section to the date of enactment of 
        the Public Utility Regulatory Policies Act of 1978 shall be 
        deemed to be a reference to the date of enactment of this 
        paragraph.
            ``(C) Notwithstanding subsections (b) and (c) of section 
        112, each State regulatory authority shall consider and make a 
        determination concerning whether it is appropriate to implement 
        the standard set out in subparagraph (A) not later than one 
        year after the date of enactment of this paragraph.''.
    (b) Special Rules for Real-Time Pricing Standard.--Section 115 of 
the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) is 
amended by adding at the end the following:
    ``(i) Real-Time Pricing.--In a State that permits third-party 
marketers to sell electric energy to retail electric consumers, the 
electric consumer shall be entitled to receive the same real-time 
metering and communication service as a direct retail electric consumer 
of the electric utility.''.

SEC. 242. ADOPTION OF ADDITIONAL STANDARDS.

    (a) Adoption of Standards.--Section 113(b) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2623(b)) is amended by 
adding at the end the following:
            ``(6) Distributed generation.-- Each electric utility shall 
        provide distributed generation, combined heat and power, and 
        district heating and cooling systems competitive access to the 
local distribution grid and competitive pricing of service, and shall 
use simplified standard contracts for the interconnection of generating 
facilities that have a power production capacity of 250 kilowatts or 
less.
            ``(7) Distribution interconnections.--No electric utility 
        may refuse to interconnect a generating facility with the 
        distribution facilities of the electric utility if the owner or 
        operator of the generating facility complies with technical 
        standards adopted by the State regulatory authority and agrees 
        to pay the costs established by such State regulatory 
        authority.
            ``(8) Minimum fuel and technology diversity standard.--Each 
        electric utility shall develop a plan to minimize dependence on 
        one fuel source and to ensure that the electric energy it sells 
        to consumers is generated using a diverse range of fuels and 
        technologies, including renewable technologies.
            ``(9) Fossil fuel efficiency.--Each electric utility shall 
        develop and implement a ten-year plan to increase the 
        efficiency of its fossil fuel generation and shall monitor and 
        report to its State regulatory authority excessive greenhouse 
        gas emissions resulting from the inefficient operation of its 
        fossil fuel generating plants.''.
    (b) Time for Adopting Standards.--Section 113 of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2623) is further amended by 
adding at the end the following:
    ``(d) Special Rule.--For purposes of implementing paragraphs (6), 
(7), (8), and (9) of subsection (b), any reference contained in this 
section to the date of enactment of the Public Utility Regulatory 
Policies Act of 1978 shall be deemed to be a reference to the date of 
enactment of this subsection.''.

SEC. 243. TECHNICAL ASSISTANCE.

    Section 132(c) of the Public Utility Regulatory Policies Act of 
1978 (16 U.S.C. 2642(c)) is amended to read as follows:
    ``(c) Technical Assistance for Certain Responsibilities.--The 
Secretary may provide such technical assistance as he determines 
appropriate to assist State regulatory authorities and electric 
utilities in carrying out their responsibilities under section 
111(d)(11) and paragraphs (6), (7), (8), and (9) of section 113(b).''.

SEC. 244. COGENERATION AND SMALL POWER PRODUCTION PURCHASE AND SALE 
              REQUIREMENTS.

    (a) Termination of Mandatory Purchase and Sale Requirements.--
Section 210 of the Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 824a-3) is amended by adding at the end the following:
    ``(m) Termination of Mandatory Purchase and Sale Requirements.--
            ``(1) In general.--After the date of enactment of this 
        subsection, no electric utility shall be required to enter into 
        a new contract or obligation to purchase or sell electric 
        energy under this section.
            ``(2) No effect on existing rights and remedies.--Nothing 
        in this subsection affects the rights or remedies of any party 
        with respect to the purchase or sale of electric energy or 
        capacity from or to a facility under this section under any 
        contract or obligation to purchase or to sell electric energy 
        or capacity on the date of enactment of this subsection, 
        including--
                    ``(A) the right to recover costs of purchasing such 
                electric energy or capacity; and
                    ``(B) in States without competition for retail 
                electric supply, the obligation of a utility to 
                provide, at just and reasonable rates for consumption 
                by a qualifying small power production facility or a 
                qualifying cogeneration facility, backup, standby, and 
                maintenance power.
            ``(3) Recovery of costs.--
                    ``(A) Regulation.--To ensure recovery by an 
                electric utility that purchases electric energy or 
                capacity from a qualifying facility pursuant to any 
                legally enforceable obligation entered into or imposed 
                under this section before the date of enactment of this 
                subsection, of all prudently incurred costs associated 
                with the purchases, the Commission shall issue and 
                enforce such regulations as may be required to ensure 
                that the electric utility shall collect the prudently 
                incurred costs associated with such purchases.
                    ``(B) Enforcement.--A regulation under subparagraph 
                (A) shall be enforceable in accordance with the 
                provisions of law applicable to enforcement of 
                regulations under the Federal Power Act (16 U.S.C. 791a 
                et seq.).''.
    (b) Elimination of Ownership Limitations.--
            (1) Section 3(17)(C) of the Federal Power Act (16 U.S.C. 
        796(17)(C)) is amended to read as follows:
                    ``(C) `qualifying small power production facility' 
                means a small power production facility that the 
                Commission determines, by rule, meets such requirements 
                (including requirements respecting minimum size, fuel 
                use, and fuel efficiency) as the Commission may, by 
                rule, prescribe.''.
            (2) Section 3(18)(B) of the Federal Power Act (16 U.S.C. 
        796(18)(B)) is amended to read as follows:
                    ``(B) `qualifying cogeneration facility' means a 
                cogeneration facility that the Commission determines, 
                by rule, meets such requirements (including 
                requirements respecting minimum size, fuel use, and 
                fuel efficiency) as the Commission may, by rule, 
                prescribe.''.

SEC. 245. NET METERING.

    Title VI of the Public Utility Regulatory Policies Act of 1978 is 
amended by adding at the end the following:

``SEC. 605. NET METERING FOR RENEWABLE ENERGY AND FUEL CELLS.

    ``(a) Definitions.--For purposes of this section:
            ``(1) The term `eligible on-site generating facility' 
        means--
                    ``(A) a facility on the site of a residential 
                electric consumer with a maximum generating capacity of 
                10 kilowatts or less that is fueled by solar energy, 
                wind energy, or fuel cells; or
                    ``(B) a facility on the site of a commercial 
                electric consumer with a maximum generating capacity of 
                500 kilowatts or less that is fueled solely by a 
                renewable energy resource, landfill gas, or a high 
                efficiency system.
            ``(2) The term `renewable energy resource' means solar, 
        wind, biomass, or geothermal energy.
            ``(3) The term `high efficiency system' means fuel cells or 
        combined heat and power.
            ``(4) The term `net metering service' means service to an 
        electric consumer under which electric energy generated by that 
        electric consumer from an eligible on-site generating facility 
        and delivered to the local distribution facilities may be used 
        to offset electric energy provided by the electric utility to 
the electric consumer during the applicable billing period.
    ``(b) Requirement To Provide Net Metering Service.--Each electric 
utility shall make available upon request net metering service to an 
electric consumer that the electric utility serves.
    ``(c) Rates and Charges.--
            ``(1) Identical charges.--An electric utility--
                    ``(A) shall charge the owner or operator of an on-
                site generating facility rates and charges that are 
                identical to those that would be charged other electric 
                consumers of the electric utility in the same rate 
                class; and
                    ``(B) shall not charge the owner or operator of an 
                on-site generating facility any additional standby, 
                capacity, interconnection, or other rate or charge.
            ``(2) Measurement.--An electric utility that sells electric 
        energy to the owner or operator of an on-site generating 
        facility shall measure the quantity of electric energy produced 
        by the on-site facility and the quantity of electric energy 
        consumed by the owner or operator of an on-site generating 
        facility during a billing period in accordance with normal 
        metering practices.
            ``(3) Electric energy supplied exceeding electric energy 
        generated.--If the quantity of electric energy sold by the 
        electric utility to an on-site generating facility exceeds the 
        quantity of electric energy supplied by the on-site generating 
        facility to the electric utility during the billing period, the 
        electric utility may bill the owner or operator for the net 
        quantity of electric energy sold, in accordance with normal 
        metering practices.
            ``(4) Electric energy generated exceeding electric energy 
        supplied.--If the quantity of electric energy supplied by the 
        on-site generating facility to the electric utility exceeds the 
        quantity of electric energy sold by the electric utility to the 
        on-site generating facility during the billing period--
                    ``(A) the electric utility may bill the owner or 
                operator of the on-site generating facility for the 
                appropriate charges for the billing period in 
                accordance with paragraph (2); and
                    ``(B) the owner or operator of the on-site 
                generating facility shall be credited for the excess 
                kilowatt-hours generated during the billing period, 
                with the kilowatt-hour credit appearing on the bill for 
                the following billing period.
    ``(d) Safety and Performance Standards.--
            ``(1) An eligible on-site generating facility and net 
        metering system used by an electric consumer shall meet all 
        applicable safety, performance, reliability, and 
        interconnection standards established by the National 
        Electrical Code, the Institute of Electrical and Electronics 
        Engineers, and Underwriters Laboratories.
            ``(2) The Commission, after consultation with State 
        regulatory authorities and nonregulated electric utilities and 
        after notice and opportunity for comment, may adopt, by rule, 
        additional control and testing requirements for on-site 
        generating facilities and net metering systems that the 
        Commission determines are necessary to protect public safety 
        and system reliability.
    ``(e) Application.--This section applies to each electric utility 
during any calendar year in which the total sales of electric energy by 
such utility for purposes other than resale exceeded 1,000,000,000 
kilowatt-hours during the preceding calendar year.''.

                    Subtitle D--Consumer Protections

SEC. 251. INFORMATION DISCLOSURE.

    (a) Offers and Solicitations.--The Federal Trade Commission shall 
issue rules requiring each electric utility that makes an offer to sell 
electric energy, or solicits electric consumers to purchase electric 
energy to provide the electric consumer a statement containing the 
following information--
            (1) the nature of the service being offered, including 
        information about interruptibility of service;
            (2) the price of the electric energy, including a 
        description of any variable charges;
            (3) a description of all other charges associated with the 
        service being offered, including access charges, exit charges, 
        back-up service charges, stranded cost recovery charges, and 
        customer service charges; and
            (4) information the Federal Trade Commission determines is 
        technologically and economically feasible to provide, is of 
        assistance to electric consumers in making purchasing 
        decisions, and concerns--
                    (A) the product or its price;
                    (B) the share of electric energy that is generated 
                by each fuel type; and
                    (C) the environmental emissions produced in 
                generating the electric energy.
    (b) Periodic Billings.--The Federal Trade Commission shall issue 
rules requiring any electric utility that sells electric energy to 
transmit to each of its electric consumers, in addition to the 
information transmitted pursuant to section 115(f) of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625(f)), a clear 
and concise statement containing the information described in 
subsection (a)(4) for each billing period (unless such information is 
not reasonably ascertainable by the electric utility).

SEC. 252. CONSUMER PRIVACY.

    (a) Prohibition.--The Federal Trade Commission shall issue rules 
prohibiting any electric utility that obtains consumer information in 
connection with the sale or delivery of electric energy to an electric 
consumer from using, disclosing, or permitting access to such 
information unless the electric consumer to whom such information 
relates provides prior written approval.
    (b) Permitted Use.--The rules issued under this section shall not 
prohibit any electric utility from using, disclosing, or permitting 
access to consumer information referred to in subsection (a) for any of 
the following purposes:
            (1) To facilitate an electric consumer's change in 
        selection of an electric utility under procedures approved by 
        the State or State regulatory authority.
            (2) To initiate, render, bill, or collect for the sale or 
        delivery of electric energy to electric consumers or for 
        related services.
            (3) To protect the rights or property of the person 
        obtaining such information.
            (4) To protect retail electric consumers from fraud, abuse, 
        and unlawful subscription in the sale or delivery of electric 
        energy to such consumers.
            (5) For law enforcement purposes.
            (6) For purposes of compliance with any Federal, State, or 
        local law or regulation authorizing disclosure of information 
        to a Federal, State, or local agency.
    (c) Aggregate Consumer Information.--The rules issued under this 
subsection may permit a person to use, disclose, and permit access to 
aggregate consumer information and may require an electric utility to 
make such information available to other electric utilities upon 
request and payment of a reasonable fee.
    (d) Definitions.--As used in this section:
            (1) The term ``aggregate consumer information'' means 
        collective data that relates to a group or category of retail 
        electric consumers, from which individual consumer identities 
        and characteristics have been removed.
            (2) The term ``consumer information'' means information 
        that relates to the quantity, technical configuration, type, 
        destination, or amount of use of electric energy delivered to 
        any retail electric consumer.

SEC. 253. UNFAIR TRADE PRACTICES.

    (a) Slamming.--The Federal Trade Commission shall issue rules 
prohibiting the change of selection of an electric utility except with 
the informed consent of the electric consumer.
    (b) Cramming.--The Federal Trade Commission shall issue rules 
prohibiting the sale of goods and services to an electric consumer 
unless expressly authorized by law or the electric consumer.

SEC. 254. APPLICABLE PROCEDURES.

    The Federal Trade Commission shall proceed in accordance with 
section 553 of title 5, United States Code, when prescribing a rule 
required by this subtitle.

SEC. 255. FEDERAL TRADE COMMISSION ENFORCEMENT.

    Violation of a rule issued under this subtitle shall be treated as 
a violation of a rule under section 18 of the Federal Trade Commission 
Act (15 U.S.C. 57a) respecting unfair or deceptive acts or practices. 
All functions and powers of the Federal Trade Commission under such Act 
are available to the Federal Trade Commission to enforce compliance 
with this subtitle notwithstanding any jurisdictional limits in such 
Act.

SEC. 256. STATE AUTHORITY.

    Nothing in this subtitle shall be construed to preclude a State or 
State regulatory authority from prescribing and enforcing additional 
laws, rules, or procedures regarding the practices which are the 
subject of this section, so long as such laws, rules, or procedures are 
not inconsistent with the provisions of this section or with any rule 
prescribed by the Federal Trade Commission pursuant to it.

SEC. 257. APPLICATION OF SUBTITLE.

    The provisions of this subtitle apply to each electric utility if 
the total sales of electric energy by such utility for purposes other 
than resale exceed 500 million kilowatt-hours per calendar year. The 
provisions of this subtitle do not apply to the operations of an 
electric utility to the extent that such operations relate to sales of 
electric energy for purposes of resale.

SEC. 258. DEFINITIONS.

    As used in this subtitle:
            (1) The term ``aggregate consumer information'' means 
        collective data that relates to a group or category of electric 
        consumers, from which individual consumer identities and 
        identifying characteristics have been removed.
            (2) The term ``consumer information'' means information 
        that relates to the quantity, technical configuration, type, 
        destination, or amount of use of electric energy delivered to 
        an electric consumer.
            (3) The terms ``electric consumer'', ``electric utility'', 
        and ``State regulatory authority'' have the meanings given such 
        terms in section 3 of the Public Utility Regulatory Policies 
        Act of 1978 (16 U.S.C. 2602).

       Subtitle E--Renewable Energy and Rural Construction Grants

SEC. 261. RENEWABLE ENERGY PRODUCTION INCENTIVE.

    (a) Incentive Payments.--Section 1212(a) of the Energy Policy Act 
of 1992 (42 U.S.C. 13317(a)) is amended by striking ``and which 
satisfies'' and all that follows through ``Secretary shall establish.'' 
and inserting the following:
    ``. 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.''.
    (b) Qualified Renewable Energy Facility.--Section 1212(b) of the 
Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is amended--
            (1) by striking ``a State or any political'' and all that 
        follows through ``nonprofit electrical cooperative'' and 
        inserting the following: ``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
            (2) by inserting ``landfill gas, incremental hydropower, 
        ocean'' after ``wind, biomass,''.
    (c) Eligibility Window.--Section 1212(c) of the Energy Policy Act 
of 1992 (42 U.S.C. 13317(c)) is amended 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''.
    (d) Payment Period.--Section 1212(d) of the Energy Policy Act of 
1992 (42 U.S.C. 13317(d)) is amended 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''.
    (e) Amount of Payment.--Section 1212(e)(1) of the Energy Policy Act 
of 1992 (42 U.S.C. 13317(e)(1)) is amended by inserting ``landfill gas, 
incremental hydropower, ocean'' after ``wind, biomass,''.
    (f) Sunset.--Section 1212(f) of the Energy Policy Act of 1992 (42 
U.S.C. 13317(f)) is amended by striking ``the expiration of'' and all 
that follows through ``of this section'' and inserting ``September 30, 
2023''.
    (g) Incremental Hydropower; Authorization of Appropriations.--
Section 1212 of the Energy Policy Act of 1992 (42 U.S.C. 13317) is 
further amended by striking subsection (g) and inserting the following:
    ``(g) Incremental Hydropower.--
            ``(1) Programs.--Subject to subsection (h)(2), if an 
        incremental hydropower program meets the requirements of this 
        section, as determined by the Secretary, the incremental 
        hydropower program shall be eligible to receive incentive 
        payments under this section.
            ``(2) Definition of Incremental Hydropower.--In this 
        subsection, the term `incremental hydropower' means additional 
generating capacity achieved from increased efficiency or additions of 
new capacity at a hydroelectric facility in existence on the date of 
enactment of this paragraph.
    ``(h) Authorization of Appropriations.--
            ``(1) In general.--Subject to paragraph (2), there are 
        authorized to be appropriated such sums as may be necessary to 
        carry out this section for fiscal years 2003 through 2023.
            ``(2) Limitation on funds used for incremental hydropower 
        programs.--Not more than 30 percent of the amounts made 
        available under paragraph (1) shall be used to carry out 
        programs described in subsection (g)(2).
            ``(3) Availability of funds.--Funds made available under 
        paragraph (1) shall remain available until expended.''.

SEC. 262. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

    (a) Resource Assessment.--Not later than 3 months after the date of 
enactment of this title, and each year thereafter, the Secretary of 
Energy shall review the available assessments of renewable energy 
resources available within the United States, including solar, wind, 
biomass, ocean, geothermal, and hydroelectric energy resources, and 
undertake new assessments as necessary, taking into account changes in 
market conditions, available technologies and other relevant factors.
    (b) Contents of Reports.--Not later than one year after the date of 
enactment of this title, and each year thereafter, the Secretary shall 
publish a report based on the assessment under subsection (a). The 
report shall contain--
            (1) a detailed inventory describing the available amount 
        and characteristics of the renewable energy resources, and
            (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. 263. FEDERAL PURCHASE REQUIREMENT.

    (a) Requirement.--The President shall ensure that, of the total 
amount of electric energy the federal government consumes during any 
fiscal year--
            (1) not less than 3 percent in fiscal years 2003 through 
        2004,
            (2) not less than 5 percent in fiscal years 2005 through 
        2009, and
            (3) not less than 7.5 percent in fiscal year 2010 and each 
        fiscal year thereafter--

shall be renewable energy. The President shall encourage the use of 
innovative purchasing practices, including aggregation and the use of 
renewable energy derivatives, by federal agencies.
    (b) Definition.--For purposes of this section, the term ``renewable 
energy'' means electric energy generated from solar, wind, biomass, 
geothermal, fuel cells, or additional hydroelectric generation capacity 
achieved from increased efficiency or additions of new capacity at an 
existing hydroelectric dam.
    (c) Tribal Power Generation.--To the maximum extent practicable, 
the President shall ensure that not less than one-tenth of the amount 
specified in subsection (a) shall be renewable energy that is generated 
by an Indian tribe or by a corporation, partnership, or business 
association which is wholly or majority owned, directly or indirectly, 
by an Indian tribe. For purposes of this subsection, the term ``Indian 
tribe'' means any Indian tribe, band, nation, or other organized group 
or community, including any Alaska Native village or regional or 
village corporation as defined in or established pursuant to the Alaska 
Native Claims Settlement Act (43 U.S.C. 1601 et seq.), which is 
recognized as eligible for the special programs and services provided 
by the United States to Indians because of their status as Indians.

SEC. 264. RURAL CONSTRUCTION GRANTS.

    Section 313 of the Rural Electrification Act of 1936 (7 U.S.C. 
940c) is amended by adding after subsection (b) the following:
    ``(c) Rural and Remote Communities Electrification Grants.--The 
Secretary of Agriculture, in consultation with the Secretary of Energy 
and the Secretary of the Interior, may provide grants to eligible 
borrowers under this Act for the purpose of increasing energy 
efficiency, siting or upgrading transmission and distribution lines, or 
providing or modernizing electric facilities for--
            ``(1) a unit of local government of a State or territory; 
        or
            ``(2) an Indian tribe or Tribal College or University as 
        defined in section 316(b)(3) of the Higher Education Act (20 
        U.S.C. 1059c(b)(3)).
    ``(d) Grant Criteria.--The Secretary shall make grants based on a 
determination of cost-effectiveness and most effective use of the funds 
to achieve the stated purposes of this section.
    ``(e) Preference.--In making grants under this section, the 
Secretary shall give a preference to renewable energy facilities.
    ``(f) Definition.--For purposes of this section, the term `Indian 
tribe' means any Indian tribe, band, nation, or other organized group 
or community, including any Alaska Native village or regional or 
village corporation as defined in or established pursuant to the Alaska 
Native Claims Settlement Act (43 U.S.C. 1601 et seq.), which is 
recognized as eligible for the special programs and services provided 
by the United States to Indians because of their status as Indians;
    ``(g) Authorization.--For the purpose of carrying out subsection 
(c), there are authorized to be appropriated to the Secretary 
$20,000,000 for each of the seven fiscal years following the date of 
enactment of this subsection.''.

SEC. 265. RENEWABLE PORTFOLIO STANDARD.

    Title VI of the Public Utility Regulatory Policies Act of 1978 is 
further amended by adding at the end the following:

``SEC. 606. FEDERAL RENEWABLE PORTFOLIO STANDARD.

    ``(a) Minimum Renewable Generation Requirement.--For each calendar 
year beginning with 2003, each retail electric supplier shall submit to 
the Secretary renewable energy credits in an amount equal to the 
required annual percentage, specified in subsection (b), of the total 
electric energy sold by the retail electric supplier to electric 
consumers in the calendar year. The retail electric supplier shall make 
this submission before April 1 of the following calendar year.
    ``(b) Required Annual Percentage.--
            ``(1) For calendar years 2003 and 2004, the required annual 
        percentage shall be determined by the Secretary in an amount 
        less than the amount in paragraph (2);
            ``(2) For calendar year 2005 the required annual percentage 
        shall be 2.5 percent of the retail electric supplier's base 
        amount; and
            ``(3) For each calendar year from 2006 through 2020, the 
        required annual percentage of the retail electric supplier's 
base amount shall be .5 percent greater than the required annual 
percentage for the calendar year immediately preceding.
    ``(c) Submission of Credits.--(1) A retail electric supplier may 
satisfy the requirements of subsection (a) through the submission of--
            ``(A) renewable energy credits issued under subsection (d) 
        for renewable energy generated by the retail electric supplier 
        in the calendar year for which credits are being submitted or 
        any of the two previous calendar years;
            ``(B) renewable energy credits obtained by purchase or 
        exchange under subsection (e);
            ``(C) renewable energy credits borrowed against future 
        years under subsection (f); or
            ``(D) any combination of credits under subparagraphs (A), 
        (B), and (C).
    ``(2) A credit may be counted toward compliance with subsection (a) 
only once.
    ``(d) Issuance of Credits.--(1) The Secretary shall establish, not 
later than one year after the date of enactment of this section, a 
program to issue, monitor the sale or exchange of, and track renewable 
energy credits.
    ``(2) Under the program, an entity that generates electric energy 
through the use of a renewable energy resource may apply to the 
Secretary for the issuance of renewable energy credits. The application 
shall indicate--
            ``(A) the type of renewable energy resource used to produce 
        the electricity,
            ``(B) the location where the electric energy was produced, 
        and
            ``(C) any other information the Secretary determines 
        appropriate.
    ``(3)(A) Except as provided in paragraphs (B) and (C), the 
Secretary shall issue to an entity one renewable energy credit for each 
kilowatt-hour of electric energy the entity generates in calendar year 
2002 and any succeeding year through the use of a renewable energy 
resource at an eligible facility.
    ``(B) For incremental hydropower the credits shall be calculated 
based on a normalized annual capacity factor for each facility, and not 
actual generation. The calculation of the credits for incremental 
hydropower shall not be based on any operational changes at the 
hydroelectric facility not directly associated with the efficiency 
improvements or capacity additions.
    ``(C) The Secretary shall issue two renewable energy credits for 
each kilowatt-hour of electric energy generated in calendar year 2002 
and any succeeding year through the use of a renewable energy resource 
at an eligible facility located on Indian land. For purposes of this 
paragraph, renewable energy generated by biomass cofired with other 
fuels is eligible for two credits only if the biomass was grown on the 
land eligible under this paragraph.
    ``(D) To be eligible for a renewable energy credit, the unit of 
electric energy generated through the use of a renewable energy 
resource may be sold or may be used by the generator. If both a 
renewable energy resource and a non-renewable energy resource are used 
to generate the electric energy, the Secretary shall issue credits 
based on the proportion of the renewable energy resource used. The 
Secretary shall identify renewable energy credits by type and date of 
generation.
    ``(4) In order to receive a renewable energy credit, the recipient 
of a renewable energy credit shall pay a fee, calculated by the 
Secretary, in an amount that is equal to the administrative costs of 
issuing, recording, monitoring the sale or exchange of, and tracking 
the credit. The Secretary shall retain the fee and use it to pay these 
administrative costs.
    ``(5) When a generator sells electric energy generated through the 
use of a renewable energy resource to a retail electric supplier under 
a contract subject to section 210 of this Act, the retail electric 
supplier is treated as the generator of the electric energy for the 
purposes of this section for the duration of the contract.
    ``(e) Credit Trading.--A renewable energy credit may be sold or 
exchanged by the entity to whom issued or by any other entity who 
acquires the credit. A renewable energy credit for any year that is not 
used to satisfy the minimum renewable generation requirement of 
subsection (a) for that year may be carried forward for use in another 
year.
    ``(f) Credit Borrowing.--At any time before the end of calendar 
year 2003, a retail electric supplier that has reason to believe that 
it will not have sufficient renewable energy credits to comply with 
subsection (a) may--
            ``(1) submit a plan to the Secretary demonstrating that the 
        retail electric supplier will earn sufficient credits within 
        the next 3 calendar years which, when taken into account, will 
        enable the retail electric supplier to meet the requirements of 
        subsection (a) for calendar year 2003 and the calendar year 
        involved; and
            (2) upon the approval of the plan by the Secretary, apply 
        credits that the plan demonstrates will be earned within the 
        next 3 calendar years to meet the requirements of subsection 
        (a) for each calendar year involved.
    ``(g) Enforcement.--The Secretary may bring an action in the 
appropriate United States district court to impose a civil penalty on a 
retail electric supplier that does not comply with subsection (a). A 
retail electric supplier who does not submit the required number of 
renewable energy credits under subsection (a) is subject to a civil 
penalty of not more than 3 cents each for the renewable energy credits 
not submitted.
    ``(h) Information Collection.--The Secretary may collect the 
information necessary to verify and audit--
            ``(1) the annual electric energy generation and renewable 
        energy generation of any entity applying for renewable energy 
        credits under this section,
            ``(2) the validity of renewable energy credits submitted by 
        a retail electric supplier to the Secretary, and
            ``(3) the quantity of electricity sales of all retail 
        electric suppliers.
    ``(i) Environmental Savings Clause.--Incremental hydropower shall 
be subject to all applicable environmental laws and licensing and 
regulatory requirements.
    ``(j) State Savings Clause.--This section does not preclude a State 
from requiring additional renewable energy generation in that State.
    ``(k) Definitions.--For purposes of this section--
            ``(1) The term `eligible facility' means--
                    ``(A) a facility for the generation of electric 
                energy from a renewable energy resource that is placed 
                in service on or after January 1, 2002; or
                    ``(B) a repowering or cofiring increment that is 
                placed in service on or after January 1, 2002 at a 
                facility for the generation of electric energy from a 
                renewable energy resource that was placed in service 
                before January 1, 2002.

        An eligible facility does not have to be interconnected to the 
        transmission or distribution system facilities of an electric 
        utility.
            ``(2) The term `generation offset' means reduced 
        electricity usage metered at a site where a customer consumes 
        electricity from a renewable energy technology.
            ``(3) The term `incremental hydropower' means additional 
        generation capacity achieved from increased efficiency or 
        additions of capacity after January 1, 2002 at a hydroelectric 
        dam that was placed in service before January 1, 2002.
            ``(4) The term `Indian land' means--
                    ``(A) any land within the limits of any Indian 
                reservation, pueblo or rancheria,
                    ``(B) any land not within the limits of any Indian 
                reservation, pueblo or rancheria title to which was on 
                the date of enactment of this paragraph either held by 
                the United States for the benefit of any Indian tribe 
                or individual or held by any Indian tribe or individual 
                subject to restriction by the United States against 
                alienation,
                    ``(C) any dependent Indian community, and
                    ``(D) any land conveyed to any Alaska Native 
                corporation under the Alaska Native Claims Settlement 
                Act.
            ``(5) The term `Indian tribe' means any Indian tribe, band, 
        nation, or other organized group or community, including any 
        Alaska Native village or regional or village corporation as 
        defined in or established pursuant to the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1601 et seq.), which is recognized as 
        eligible for the special programs and services provided by the 
        United States to Indians because of their status as Indians.
            ``(6) The term `renewable energy' means electric energy 
        generated by a renewable energy resource.
            ``(7) The term `renewable energy resource' means solar, 
        wind, biomass, ocean, or geothermal energy, a generation 
        offset, or incremental hydropower facility.
            ``(8) The term `repowering or cofiring increment' means the 
        additional generation from a modification that is placed in 
        service on or after January 1, 2002 to expand electricity 
        production at a facility used to generate electric energy from 
        a renewable energy resource or to cofire biomass that was 
        placed in service before January 1, 2002.
            ``(9) The term `retail electric supplier' means a person, 
        State agency, or Federal agency that sells electric energy to 
        electric consumers and sold not less than 500,000,000 kilowatt-
        hours of electric energy to electric consumers for purposes 
        other than resale during the preceding calendar year.
            ``(10) The term `retail electric supplier's base amount' 
        means the total amount of electric energy sold by the retail 
        electric supplier to electric customers during the most recent 
        calendar year for which information is available, excluding 
        electric energy generated by a renewable energy resource, 
        landfill gas, or a hydroelectric facility.
    ``(l) Sunset.--Subsection (a) of this section expires December 31, 
2020.''.

SEC. 266. RENEWABLE ENERGY ON FEDERAL LAND.

    (a) Cost-Share Demonstration Program.--Within 12 months after the 
date of enactment of this section, the Secretaries of the Interior, 
Agriculture, and Energy shall develop guidelines for a cost-share 
demonstration program for the development of wind and solar energy 
facilities on Federal land.
    (b) Definition of Federal Land.--As used in this section, the term 
``Federal land'' means land owned by the United States that is subject 
to the operation of the mineral leasing laws; and is either--
            (1) public land as defined in section 103(e) of the Federal 
        Land Policy and Management Act of 1976 (42 U.S.C. 1702(e)), or
            (2) a unit of the National Forest System as that term is 
        used in section 11(a) of the Forest and Rangeland Renewable 
        Resources Planning Act of 1974 (16 U.S.C. 1609(a)).
    (c) Rights-of-Ways.--The demonstration program shall provide for 
the issuance of rights-of-way pursuant to the provisions of title V of 
the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1761 et 
seq.) by the Secretary of the Interior with respect to Federal land 
under the jurisdiction of the Department of the Interior, and by the 
Secretary of Agriculture with respect to federal lands under the 
jurisdiction of the Department of Agriculture.
    (d) Available Sites.--For purposes of this demonstration program, 
the issuance of rights-of-way shall be limited to areas--
            (1) of high energy potential for wind or solar development;
            (2) that have been identified by the wind or solar energy 
        industry, through a process of nomination, application, or 
        otherwise, as being of particular interest to one or both 
        industries;
            (3) that are not located within roadless areas;
            (4) where operation of wind or solar facilities would be 
        compatible with the scenic, recreational, environmental, 
        cultural, or historic values of the Federal land, and would not 
        require the construction of new roads for the siting of lines 
        or other transmission facilities; and
            (5) where issuance of the right-of-way is consistent with 
        the land and resource management plans of the relevant land 
        management agencies.
    (e) Cost-Share Payments by DOE.--The Secretary of Energy, in 
cooperation with the Secretary of the Interior with respect to Federal 
land under the jurisdiction of the Department of the Interior, and the 
Secretary of Agriculture with respect to Federal land under the 
jurisdiction of the Department of Agriculture, shall determine if the 
portion of a project on federal land is eligible for financial 
assistance pursuant to this section. Only those projects that are 
consistent with the requirements of this section and further the 
purposes of this section shall be eligible. In the event a project is 
selected for financial assistance, the Secretary of Energy shall 
provide no more than 15 percent of the costs of the project on the 
federal land, and the remainder of the costs shall be paid by non-
Federal sources.
    (f) Revision of Land Use Plans.--The Secretary of the Interior 
shall consider development of wind and solar energy, as appropriate, in 
revisions of land use plans under section 202 of the Federal Land 
Policy and Management Act of 1976 (42 U.S.C. 1712); and the Secretary 
of Agriculture shall consider development of wind and solar energy, as 
appropriate, in revisions of land and resource management plans under 
section 5 of the Forest an Rangeland Renewable Resources Planning Act 
of 1974 (16 U.S.C. 1604). Nothing in this subsection shall preclude the 
issuance of a right-of-way for the development of a wind or solar 
energy project prior to the revision of a land use plan by the 
appropriate land management agency.
    (g) Report to Congress.--Within 24 months after the date of 
enactment of this section, the Secretary of the Interior shall develop 
and report to Congress recommendations on any statutory or regulatory 
changes the Secretary believes would assist in the development 
of renewable energy on Federal land. The report shall include--
            (1) a five-year plan developed by the Secretary of the 
        Interior, in cooperation with the Secretary of Agriculture, for 
        encouraging the development of wind and solar energy on Federal 
        land in an environmentally sound manner; and
            (2) an analysis of--
                    (A) whether the use of rights-of-ways is the best 
                means of authorizing use of Federal land for the 
                development of wind and solar energy, or whether such 
                resources could be better developed through a leasing 
                system, or other method;
                    (B) the desirability of grants, loans, tax credits 
                or other provisions to promote wind and solar energy 
                development on Federal land; and
                    (C) any problems, including environmental concerns, 
                which the Secretary of the Interior or the Secretary of 
                Agriculture have encountered in managing wind or solar 
                energy projects on Federal land, or believe are likely 
                to arise in relation to the development of wind or 
                solar energy on Federal land;
            (3) a list, developed in consultation with the Secretaries 
        of Energy and Defense, of lands under the jurisdiction of the 
        Departments of Energy and Defense that would be suitable for 
        development for wind or solar energy, and recommended statutory 
        and regulatory mechanisms for such development; and
            (4) an analysis, developed in consultation with the 
        Secretaries of Energy and Commerce, of the potential for 
        development of wind, solar, and ocean energy on the Outer 
        Continental Shelf, along with recommended statutory and 
        regulatory mechanisms for such development.

                  TITLE III--HYDROELECTRIC RELICENSING

SEC. 301. ALTERNATIVE MANDATORY 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. 302. CHARGES FOR TRIBAL LANDS.

    Section 10(e)(1) of the Federal Power Act (16 U.S.C. 803(e)(1) is 
amended by inserting after the second proviso the following:
``Provided further, that the Commission shall not issue a new or 
original license for projects involving tribal lands embraced within 
Indian reservations until annual charges required under this section 
have been fixed.''

SEC. 303. DISPOSITION OF HYDROELECTRIC CHARGES.

    Section 17 of the Federal Power Act (16 U.S.C. 810) is amended by 
striking ``to be expended under the direction of the Secretary of the 
Army in the maintenance and operation of dams and other navigation 
structures owned by the United States or in the construction, 
maintenance, or operation of headwater or other improvements of 
navigable waters of the United States.'' and inserting the following: 
``to be expended in the following manner on an annual basis: (A) fifty-
percent of the funds shall be expended by the Secretary of the Interior 
pursuant to a grant program to be established by the Secretary to 
support collaborative watershed restoration and education activities 
intended to promote the recovery of candidate, threatened, and 
endangered species under the Endangered Species Act of 1973; and (B) 
fifty-percent of the funds shall be expended by the Secretary of 
Agriculture, acting through the Chief of the Forest Service, for the 
Youth Conservation Corps program.''.

SEC. 304. ANNUAL LICENSES.

    Section 15(a) of the Federal Power Act (16 U.S.C. 808(a)) is 
amended by adding at the end the following:
            ``(4) Prior to issuing a fourth and subsequent annual 
        license under paragraph (1), the Commission shall first consult 
        with the Secretary of the Interior and the Secretary of 
        Commerce, and if the project is within any reservation, with 
        the Secretary under whose supervision such reservation falls.
            ``(5) Prior to issuing a fourth and subsequent annual 
        license under paragraph (1), the Commission shall publish a 
        written statement setting forth the reasons why the annual 
        license is needed, and describing the results of consultation 
        with the Secretary of the Interior, the Secretary of Commerce, 
        and the Secretary under whose supervision the reservation 
        falls. Such explanation shall also contain the best judgment of 
        the Commission as to whether the Commission anticipates issuing 
        an additional annual license.
            ``(6) At least 60 days prior to expiration of the seventh 
        and subsequent annual licenses issued under paragraph (1), the 
        Commission shall submit to Congress the written statement 
        required in paragraph (5).''.

SEC. 305. ENFORCEMENT.

    (a) Monitoring and Investigations of Mandatory Conditions and 
Fishway Prescriptions.--The first sentence of section 31(a) of the 
Federal Power Act (16 U.S.C. 823b(a)) is amended to read as follows:
``The Commission shall monitor and investigate compliance with each 
license and permit issued under this part, each condition imposed under 
section 4(e) or 4(h), each fishway prescription imposed under section 
18, and each exemption granted from any requirement of this part.''
    (b) Compliance Orders.--The third sentence of section 31(a) of the 
Federal Power Act (16 U.S.C. 823(a)) is amended to read as follows:
``After notice and opportunity for public hearing, the Commission may 
issue such orders as necessary to require compliance with the terms and 
conditions of licenses and permits issued under this part, with 
conditions imposed under section 4(e) or 4(h), with fishway 
prescriptions imposed under section 18, and with the terms and 
conditions of exemptions granted from any requirement of this part.''

SEC. 306. ESTABLISHMENT OF HYDROELECTRIC RELICENSING PROCEDURES.

    (a) Joint Procedures of the Commission and Resource Agencies.--
            (1) Within 18 months after the date of enactment of this 
        section, the Commission, the Secretary of the Interior, the 
        Secretary of Commerce, and the Secretary of Agriculture, shall, 
        after consultation with the interested states and public review 
        and comment, issue coordinated regulations governing the 
        issuance of a license under section 15 of the Federal Power Act 
        (16 U.S.C. 808).
            (2) Such regulations shall provide for--
                    (A) the participation of the Commission in the pre-
                application environmental scoping process conducted by 
                the resource agencies pursuant to section 15(b) of the 
                Federal Power Act (16 U.S.C. 808(b)), sufficient to 
                allow the Commission and the resource agencies to 
                coordinate environmental reviews and other regulatory 
                procedures of the Commission and the resource agencies 
                under Part I of the Federal Power Act, and under the 
                National Environmental Policy Act of 1969 (42 U.S.C. 
                4321 et seq.).
                    (B) issuance by the resource agencies of draft and 
                final mandatory conditions under section 4(e) of the 
                Federal Power Act (16 U.S.C. 797(e)), and draft and 
                final fishway prescriptions under section 18 of the 
                Federal Power Act (16 U.S.C. 811);
                    (C) to the maximum extent possible, identification 
                by the Commission staff in the draft analysis of the 
                license application conducted under the National 
                Environmental Policy Act, of all license articles and 
                license conditions the Commission is likely to include 
                in the license;
                    (D) coordination by the Commission and the resource 
                agencies of analysis under the National Environmental 
                Policy Act for final license articles and conditions 
                recommended by Commission staff, and the final 
                mandatory conditions and fishway prescriptions of the 
                resource agencies;
                    (E) procedures for ensuring coordination and 
                sharing, to the maximum extent possible, of 
                information, studies, data and analysis by the 
                Commission and the resource agencies to reduce the need 
                for duplicative studies and analysis by license 
                applicants and other parties to the license proceeding; 
                and
                    (F) procedures for ensuring resolution at an early 
                stage of the process of the scope and type of 
                reasonable and necessary information, studies, data, 
                and analysis to be provided by the license applicant.
    (b) Procedures of the Commission.--Within 18 months after the date 
of enactment of this section, the Commission shall, after consultation 
with the interested federal agencies and states and after public 
comment and review, issue additional regulations governing the issuance 
of a license under section 15 of the Federal Power Act (16 U.S.C. 808). 
Such regulations shall--
            (1) set a schedule for the Commission to issue--
                    (A) a tendering notice indicating that an 
                application has been filed with the Commission;
                    (B) advanced notice to resource agencies of the 
                issuance of the Ready for Environmental Analysis Notice 
                requesting submission of recommendations, conditions, 
                prescriptions, and comments;
                    (C) a license decision after completion of 
                environmental assessments or environmental impact 
                statements prepared pursuant to the National 
                Environmental Policy Act; and
                    (D) responses to petitions, motions, complaints and 
                requests for rehearing;
            (2) set deadlines for an applicant to conduct all needed 
        resource studies in support of its license application;
            (3) ensure a coordinated schedule for all major actions by 
        the applicant, the Commission, affected Federal and State 
        agencies, Indian Tribes and other parties, through final 
        decision on the application; and
            (4) provide for the adjustment of schedules if unavoidable 
        delays occur.

SEC. 307. RELICENSING STUDY.

    (a) In General.--The Federal Energy Regulatory Commission shall, 
jointly with the Secretary of Commerce, the Secretary of the Interior, 
and the Secretary of Agriculture, conduct a study of all new licenses 
issued for existing projects under section 15 of the Federal Power Act 
(16 U.S.C. 808) since January 1, 1994.
    (b) Scope.--The study shall analyze:
            (1) the length of time the Commission has taken to issue 
        each new license for an existing project;
            (2) the additional cost to the licensee attributable to new 
        license conditions;
            (3) the change in generating capacity attributable to new 
        license conditions;
            (4) the environmental benefits achieved by new license 
        conditions;
            (5) significant unmitigated environmental damage of the 
        project and costs to mitigate such damage; and
            (6) litigation arising from the issuance or failure to 
        issue new licenses for existing projects under section 15 of 
        the Federal Power Act or the imposition or failure to impose 
        new license conditions.
    (c) Definition.--As used in this section, the term ``new license 
condition'' means any condition imposed under--
            (1) section 4(e) of the Federal Power Act (16 U.S.C. 
        797(e)),
            (2) section 10(a) of the Federal Power Act (16 U.S.C. 
        803(a)),
            (2) section 10(e) of the Federal Power Act (16 U.S.C. 
        803(e)),
            (3) section 10(j) of the Federal Power Act (16 U.S.C. 
        803(j)),
            (4) section 18 of the Federal Power Act (16 U.S.C. 811), or
            (5) section 401(d) of the Clean Water Act (33 U.S.C. 
        1341(d)).
    (d) Consultation.--The Commission shall give interested persons and 
licensees an opportunity to submit information and views in writing.
    (e) Report.--The Commission shall report its findings to the 
Committee on Energy and Natural Resources of the United States Senate 
and the Committee on Energy and Commerce of the House of 
Representatives not later than 24 months after the date of enactment of 
this section.

SEC. 308. DATA COLLECTION PROCEDURES.

    Within 24 months after the date of enactment of this section, the 
Federal Energy Regulatory Commission, the Secretary of the Interior, 
the Secretary of Commerce, and the Secretary of Agriculture shall 
jointly develop procedures for ensuring complete and accurate 
information concerning the time and cost to parties in the 
hydroelectric licensing process under part I of the Federal Power Act 
(16 U.S.C. 791 et seq.). Such data shall be published regularly, but no 
less frequently than every three years.

                        TITLE IV--INDIAN ENERGY

SEC. 401. COMPREHENSIVE INDIAN ENERGY PROGRAM.

    Title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501-3506) 
is amended by adding after section 2606 the following:

``SEC. 2607. COMPREHENSIVE INDIAN ENERGY PROGRAM.

    ``(a) Definitions.--For purposes of this section--
            ``(1) the term `Director' means the Director of the Office 
        of Indian Energy Policy and Programs established by section 217 
        of the Department of Energy Organization Act, and
            ``(2) the term `Indian land' means--
                    ``(A) any land within the limits of an Indian 
                reservation, pueblo, or rancheria;
                    ``(B) any land not within the limits of an Indian 
                reservation, pueblo, or rancheria whose title on the 
                date of enactment of this section was held--
                            ``(i) in trust by the United States for the 
                        benefit of an Indian tribe,
                            ``(ii) by an Indian tribe subject to 
                        restriction by the United States against 
                        alienation, or
                            ``(iii) by a dependent Indian community; 
                        and
                    ``(C) land conveyed to an Alaska Native Corporation 
                under the Alaska Native Claims Settlement Act.
    ``(b) Indian Energy Education Planning and Management Assistance.--
            ``(1) The Director shall establish programs within the 
        Office of Indian Energy Policy and Programs to assist Indian 
        tribes in meeting their energy education, research and 
        development, planning, and management needs.
            ``(2) The Director may make grants, on a competitive basis, 
        to an Indian tribe for--
                    ``(A) renewable energy, energy efficiency, and 
                conservation programs;
                    ``(B) studies and other activities supporting 
                tribal acquisition of energy supplies, services, and 
                facilities;
                    ``(C) planning, constructing, developing, 
                operating, maintaining, and improving tribal electrical 
                generation, transmission, and distribution facilities; 
                and
                    ``(D) developing, constructing, and interconnecting 
                electric power transmission facilities with 
                transmission facilities owned and operated by a Federal 
                power marketing agency or an electric utility that 
                provides open access transmission service.
            ``(3) The Director may develop, in consultation with Indian 
        tribes, a formula for making grants under this section. The 
        formula may take into account the following--
                    ``(A) the total number of acres of Indian land 
                owned by an Indian tribe;
                    ``(B) the total number of households on the Indian 
                tribe's Indian land;
                    ``(C) the total number of households on the Indian 
                tribe's Indian land that have no electricity service or 
                are under-served; and
                    ``(D) financial or other assets available to the 
                Indian tribe from any source.
            ``(4) In making a grant under paragraph (2), the Director 
        shall give priority to an application received from an Indian 
        tribe that is not served or is served inadequately by an 
        electric utility, as that term is defined in section 3(4) of 
        the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
        2602(4)), or by a person, State agency, or any other non-
        federal entity that owns or operates a local distribution 
        facility used for the sale of electric energy to an electric 
        consumer.
            ``(5) There are authorized to be appropriated to the 
        Department of Energy such sums as may be necessary to carry out 
        the purposes of this section.
            ``(6) The Secretary is authorized to promulgate such 
        regulations as the Secretary determines to be necessary to 
        carry out the provisions of this subsection.
    ``(c) Loan Guarantee Program.--
            ``(1) Authority.--The Secretary may guarantee not more than 
        90 percent of the unpaid principal and interest due on any loan 
        made to any Indian tribe for energy development, including the 
        planning, development, construction, and maintenance of 
        electrical generation plants, and for transmission and delivery 
        mechanisms for electricity produced on Indian land. A loan 
        guaranteed under this subsection shall be made by--
                    ``(A) a financial institution subject to the 
                examination of the Secretary; or
                    ``(B) an Indian tribe, from funds of the Indian 
                tribe, to another Indian tribe.
            ``(2) Availability of appropriations.--Amounts appropriated 
        to cover the cost of loan guarantees shall be available without 
        fiscal year limitation to the Secretary to fulfill obligations 
        arising under this subsection.
            ``(3) Authorization of appropriations.--
                    ``(A) There are authorized to be appropriated to 
                the Secretary such sums as may be necessary to cover 
                the cost of loan guarantees, as defined by section 
                502(5) of the Federal Credit Reform Act of 1990 (2 
                U.S.C. 661a(5)).
                    ``(B) There are authorized to be appropriated to 
                the Secretary such sums as may be necessary to cover 
                the administrative expenses related to carrying out the 
                loan guarantee program established by this subsection.
            ``(4) Limitation on amount.--The aggregate outstanding 
        amount guaranteed by the Secretary of Energy at any one time 
        under this subsection shall not exceed $2,000,000,000.
            ``(5) Regulations.--The Secretary is authorized to 
        promulgate such regulations as the Secretary determines to be 
        necessary to carry out the provisions of this subsection.
    ``(d) Indian Energy Preference.--(1) An agency or department of the 
United States Government may give, in the purchase of electricity, oil, 
gas, coal, or other energy product or by-product, preference in such 
purchase to an energy and resource production enterprise, partnership, 
corporation, or other type of business organization majority or wholly 
owned and controlled by a tribal government.
    ``(2) In implementing this subsection, an agency or department 
shall pay no more than the prevailing market price for the energy 
product or by-product and shall obtain no less than existing market 
terms and conditions.
    ``(e) Effect on Other Laws.--This section does not--
            ``(1) limit the discretion vested in an Administrator of a 
        Federal power marketing agency to market and allocate Federal 
        power, or
            ``(2) alter Federal laws under which a Federal power 
        marketing agency markets, allocates, or purchases power.''.

SEC. 402. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.

    Title II of the Department of Energy Organization Act is amended by 
adding at the end the following:

             ``office of indian energy policy and programs

    ``Sec. 217. (a) There is established within the Department an 
Office of Indian Energy Policy and Programs. This Office shall be 
headed by a Director, who shall be appointed by the Secretary and 
compensated at the rate equal to that of level IV of the Executive 
Schedule under section 5315 of Title 5, United States Code.
    ``(b) The Director shall provide, direct, foster, coordinate, and 
implement energy planning, education, management, conservation, and 
delivery programs of the Department that--
            ``(1) promote tribal energy efficiency and utilization;
            ``(2) modernize and develop, for the benefit of Indian 
        tribes, tribal energy and economic infrastructure related to 
        natural resource development and electrification;
            ``(3) preserve and promote tribal sovereignty and self 
        determination related to energy matters and energy 
        deregulation;
            ``(4) lower or stabilize energy costs; and
            ``(5) electrify tribal members' homes and tribal lands.
    ``(c) The Director shall carry out the duties assigned the 
Secretary or the Director under title XXVI of the Energy Policy Act of 
1992 (25 U.S.C. 3501 et seq.).''.

SEC. 403. CONFORMING AMENDMENTS.

    (a) Authorization of Appropriations.--Section 2603(c) of the Energy 
Policy Act of 1992 (25 U.S.C. 3503(c)) is amended to read as follows:
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out the purposes of 
this section.''.
    (b) Table of Contents.--The table of contents of the Department of 
Energy Act is amended by inserting after the item relating to section 
216 the following new item:

``Sec. 217. Office of Indian Energy Policy and Programs.''.
    (c) Executive Schedule.--Section 5315 of title 5, United States 
Code, is amended by inserting ``Director, Office of Indian Energy 
Policy and Programs, Department of Energy.'' after ``Inspector General, 
Department of Energy.''.

SEC. 404. SITING ENERGY FACILITIES ON TRIBAL LANDS.

    (a) Definitions.--For purposes of this section:
            (1) Indian tribe.--The term ``Indian tribe'' means any 
        Indian tribe, band, nation, or other organized group or 
        community, which is recognized as eligible for the special 
        programs and services provided by the United States to Indians 
        because of their status as Indians, except that such term does 
        not include any Regional Corporation as defined in section 3(g) 
        of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(g)).
            (2) Interested party.--The term ``interested party'' means 
        a person whose interests could be adversely affected by the 
decision of an Indian tribe to grant a lease or right-of-way pursuant 
to this section.
            (3) Petition.--The term ``petition'' means a written 
        request submitted to the Secretary for the review of an action 
        (or inaction) of the Indian tribe that is claimed to be in 
        violation of the approved tribal regulations;
            (4) Reservation.--The term ``reservation'' means--
                    (A) with respect to a reservation in a State other 
                than Oklahoma, all land that has been set aside or that 
                has been acknowledged as having been set aside by the 
                United States for the use of an Indian tribe, the 
                exterior boundaries of which are more particularly 
                defined in a final tribal treaty, agreement, executive 
                order, federal statute, secretarial order, or judicial 
                determination;
                    (B) with respect to a reservation in the State of 
                Oklahoma, all land that is--
                            (i) within the jurisdictional area of an 
                        Indian tribe, and
                            (ii) within the boundaries of the last 
                        reservation of such tribe that was established 
                        by treaty, executive order, or secretarial 
                        order.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (6) Tribal lands.--The term ``tribal lands'' means any 
        tribal trust lands or other lands owned by an Indian tribe that 
        are within a reservation, or tribal trust lands located 
        contiguous thereto.
    (b) Leases Involving Generation, Transmission, Distribution or 
Energy Processing Facilities.--An Indian tribe may grant a lease of 
tribal land for electric generation, transmission, or distribution 
facilities, or facilities to process or refine renewable or 
nonrenewable energy resources developed on tribal lands, and such 
leases shall not require the approval of the Secretary if the lease is 
executed under tribal regulations approved by the Secretary under this 
subsection and the term of the lease does not exceed 30 years.
    (c) Rights-of-Way for Electric Generation, Transmission, 
Distribution or Energy Processing Facilities.--An Indian tribe may 
grant a right-of-way over tribal lands for a pipeline or an electric 
transmission or distribution line without separate approval by the 
Secretary, if--
            (1) the right-of-way is executed under and complies with 
        tribal regulations approved by the Secretary and the term of 
        the right-of-way does not exceed 30 years; and
            (2) the pipeline or electric transmission or distribution 
        line serves--
                    (A) an electric generation, transmission or 
                distribution facility located on tribal land; or
                    (B) a facility located on tribal land that 
                processes or refines renewable or nonrenewable energy 
                resources developed on tribal lands.
    (d) Renewals.--Leases or rights-of-way entered into under this 
subsection may be renewed at the discretion of the Indian tribe in 
accordance with the requirements of this section.
    (e) Tribal Regulation Requirements.--
            (1) The Secretary shall have the authority to approve or 
        disapprove tribal regulations required under this subsection. 
        The Secretary shall approve such tribal regulations if they are 
        comprehensive in nature, including provisions that address--
                    (A) securing necessary information from the lessee 
                or right-of-way applicant;
                    (B) term of the conveyance;
                    (C) amendments and renewals;
                    (D) consideration for the lease or right-of-way;
                    (E) technical or other relevant requirements;
                    (F) requirements for environmental review as set 
                forth in paragraph (3);
                    (G) requirements for complying with all applicable 
                environmental laws; and
                    (H) final approval authority.
            (2) No lease or right-of-way shall be valid unless 
        authorized in compliance with the approved tribal regulations.
            (3) An Indian tribe, as a condition of securing Secretarial 
        approval as contemplated in paragraph (1), must establish an 
        environmental review process that includes the following--
                    (A) an identification and evaluation of all 
                significant environmental impacts of the proposed 
                action as compared to a no action alternative;
                    (B) identification of proposed mitigation;
                    (C) a process for ensuring that the public is 
                informed of and has an opportunity to comment on the 
                proposed action prior to tribal approval of the lease 
                or right-of-way; and
                    (D) sufficient administrative support and technical 
                capability to carry out the environmental review 
                process.
            (4) The Secretary shall review and approve or disapprove 
        the regulations of the Indian tribe within 180 days of the 
        submission of such regulations to the Secretary. Any 
        disapproval of such regulations by the Secretary shall be 
        accompanied by written documentation that sets forth the basis 
        for the disapproval. The 180-day period may be extended by the 
        Secretary after consultation with the Indian tribe.
            (5) If the Indian tribe executes a lease or right-of-way 
        pursuant to tribal regulations required under this subsection, 
        the Indian tribe shall provide the Secretary with--
                    (A) a copy of the lease or right-of-way document 
                and all amendments and renewals thereto; and
                    (B) in the case of regulations or a lease or right-
                of-way that permits payment to be made directly to the 
                Indian tribe, documentation of the payments sufficient 
                to enable the Secretary to discharge the trust 
                responsibility of the United States as appropriate 
                under existing law.
            (6) The United States shall not be liable for losses 
        sustained by any party to a lease executed pursuant to tribal 
        regulations under this subsection, including the Indian tribe.
            (7)(A) An interested party may, after exhaustion of tribal 
        remedies, submit, in a timely manner, a petition to the 
        Secretary to review the compliance of the Indian tribe with any 
        tribal regulations approved under this subsection. If upon such 
        review, the Secretary determines that the regulations were 
violated, the Secretary may take such action as may be necessary to 
remedy the violation, including rescinding or holding the lease or 
right-of-way in abeyance until the violation is cured. The Secretary 
may also rescind the approval of the tribal regulations and reassume 
the responsibility for approval of leases or rights-of-way associated 
with the facilities addressed in this section.
            (B) If the Secretary seeks to remedy a violation described 
        in subparagraph (A), the Secretary shall--
                    (i) make a written determination with respect to 
                the regulations that have been violated;
                    (ii) provide the Indian tribe with a written notice 
                of the alleged violation together with such written 
                determination; and
                    (iii) prior to the exercise of any remedy or the 
                rescission of the approval of the regulations involved 
                and reassumption of the lease or right-of-way approval 
                responsibility, provide the Indian tribe with a hearing 
                and a reasonable opportunity to cure the alleged 
                violation.
            (C) The tribe shall retain all rights to appeal as provided 
        by regulations promulgated by the Secretary.
    (f) Agreements.--
            (1) Agreements between an Indian tribe and a business 
        entity that are directly associated with the development of 
        electric generation, transmission or distribution facilities, 
        or facilities to process or refine renewable or nonrenewable 
        energy resources developed on tribal lands, shall not 
        separately require the approval of the Secretary pursuant to 
        section 18 of title 25, United States Code, so long as the 
        activity that is the subject of the agreement has been the 
        subject of an environmental review process pursuant to 
        subsection (e) of this section.
            (2) The United States shall not be liable for any losses or 
        damages sustained by any party, including the Indian tribe, 
        that are associated with an agreement entered into under this 
        subsection.
    (g) Disclaimer.--Nothing in this section is intended to modify or 
otherwise affect the applicability of any provision of the Indian 
Mineral Leasing Act of 1938 (25 U.S.C. 396a-396g); Indian Mineral 
Development Act of 1982 (25 U.S.C. 2101-2108); Surface Mining Control 
and Reclamation Act of 1977 (30 U.S.C. 1201-1328); any amendments 
thereto; or any other laws not specifically addressed in this section.

SEC. 405. INDIAN MINERAL DEVELOPMENT ACT REVIEW.

    (a) In General.--The Secretary of the Interior shall conduct a 
review of the activities that have been conducted by the governments of 
Indian tribes under the authority of the Indian Mineral Development Act 
of 1982 (25 U.S.C. 2101 et seq.).
    (b) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall transmit to the Committee on 
Resources of the House of Representatives and the Committee on Indian 
Affairs and the Committee on Energy and Natural Resources of the Senate 
a report containing--
            (1) the results of the review;
            (2) recommendations designed to help ensure that Indian 
        tribes have the opportunity to develop their nonrenewable 
        energy resources; and
            (3) an analysis of the barriers to the development of 
        energy resources on Indian land, including federal policies and 
        regulations, and make recommendations regarding the removal of 
        those barriers.
    (c) Consultation.--The Secretary shall consult with Indian tribes 
on a government-to-government basis in developing the report and 
recommendations as provided in this subsection.

SEC. 406. RENEWABLE ENERGY STUDY.

    (a) In General.--Not later than 2 years after the date of the 
enactment of this Act, and once every 2 years thereafter, the Secretary 
of Energy shall transmit to the Committees on Energy and Commerce and 
Resources of the House of Representatives and the Committees on Energy 
and Natural Resources and Indian Affairs of the Senate a report on 
energy consumption and renewable energy development potential on Indian 
land. The report shall identify barriers to the development of 
renewable energy by Indian tribes, including federal policies and 
regulations, and make recommendations regarding the removal of such 
barriers.
    (b) Consultation.--The Secretary shall consult with Indian tribes 
on a government-to-government basis in developing the report and 
recommendations as provided in this section.

SEC. 407. FEDERAL POWER MARKETING ADMINISTRATIONS.

    Title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501) (as 
amended by section 201) is amended by adding the at the end of the 
following:

``SEC. 2608. FEDERAL POWER MARKETING ADMINISTRATIONS.

    ``(a) Definition of Administrator.--In this section, the term 
`Administrator' means--
            ``(1) the Administrator of the Bonneville Power 
        Administration; or
            ``(2) the Administrator of the Western Area Power 
        Administration.
    ``(b) Assistance for Transmission Studies.--
            ``(1) Each Administrator may provide technical assistance 
        to Indian tribes seeking to use the high-voltage transmission 
        system for delivery of electric power. The costs of such 
        technical assistance shall be funded--
                    ``(A) by the Administrator using non-reimbursable 
                funds appropriated for this purpose, or
                    ``(B) by the Indian tribe.
            ``(2) Priority for assistance for transmission studies.--In 
        providing discretionary assistance to Indian tribes under 
        paragraph (1), each Administrator shall give priority in 
        funding to Indian tribes that have limited financial capability 
        to conduct such studies.
    ``(c) Power Allocation Study.--
            ``(1) Not later than 2 years after the date of enactment of 
        this Act, the Secretary of Energy shall transmit to the 
        Committees on Energy and Commerce and Resources of the House of 
        Representatives and the Committees on Energy and Natural 
        Resources and Indian Affairs of the Senate a report on Indian 
        tribes' utilization of federal power allocations of the Western 
        Area Power Administration, or power sold by the Southwestern 
        Power Administration, and the Bonneville Power Administration 
        to or for the benefit of Indian tribes in their service areas. 
        The report shall identify--
                    ``(A) the amount of power allocated to tribes by 
                the Western Area Power Administration, and how the 
                benefit of that power is utilized by the tribes;
                    ``(B) the amount of power sold to tribes by other 
                Power Marketing Administrations; and
                    ``(C) existing barriers that impede tribal access 
                to and utilization of federal power, and opportunities 
                to remove such barriers and improve the ability of the 
                Power Marketing Administration to facilitate the 
                utilization of federal power by Indian tribes.
            ``(2) The Power Marketing Administrations shall consult 
        with Indian tribes on a government-to-government basis in 
        developing the report provided in this section.
    ``(d) Authorization for Appropriation.--There are authorized to be 
appropriated to the Secretary of Energy such sums as may be necessary 
to carry out the purposes of this section.''.

SEC. 408. FEASIBILITY STUDY OF COMBINED WIND AND HYDROPOWER 
              DEMONSTRATION PROJECT.

    (a) Study.--The Secretary of Energy, in coordination with the 
Secretary of the Army and the Secretary of the Interior, shall conduct 
a study of the cost and feasibility of developing a demonstration 
project that would use wind energy generated by Indian tribes and 
hydropower generated by the Army Corps of Engineers on the Missouri 
River to supply firming power to the Western Area Power Administration.
    (b) Scope of Study.--The study shall--
            (1) determine the feasibility of the blending of wind 
        energy and hydropower generated from the Missouri River dams 
        operated by the Army Corps of Engineers;
            (2) review historical purchase requirements and projected 
        purchase requirements for firming and the patterns of 
        availability and use of firming energy;
            (3) assess the wind energy resource potential on tribal 
        lands and projected cost savings through a blend of wind and 
        hydropower over a thirty-year period;
            (4) include a preliminary interconnection study and a 
        determination of resource adequacy of the Upper Great Plains 
        Region of the Western Area Power Administration;
            (5) determine seasonal capacity needs and associated 
        transmission upgrades for integration of tribal wind 
        generation; and
          (6) include an independent tribal engineer as a study team 
        member.
    (c) Report.--The Secretary of Energy and Secretary of the Army 
shall submit a report to Congress not later than one year after the 
date of enactment of this title. The Secretaries shall include in the 
report--
            (1) an analysis of the potential energy cost savings to the 
        customers of the Western Area Power Administration through the 
        blend of wind and hydropower;
            (2) an evaluation of whether a combined wind and hydropower 
        system can reduce reservoir fluctuation, enhance efficient and 
        reliable energy production and provide Missouri River 
management flexibility;
          (3) recommendations for a demonstration project which the 
        Western Area Power Administration could carry out in 
        partnership with an Indian tribal government or tribal 
        government energy consortium to demonstrate the feasibility and 
        potential of using wind energy produced on Indian lands to 
        supply firming energy to the Western Area Power Administration 
        or other Federal power marketing agency; and
           (4) an identification of the economic and environmental 
        benefits to be realized through such a federal-tribal 
        partnership and identification of how such a partnership could 
        contribute to the energy security of the United States.
     (d) Consultation.--The Secretary shall consult with Indian tribes 
on a government-to-government basis in developing the report and 
recommendations provided in this section.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated $500,000 to carry out this section, which shall remain 
available until expended. All costs incurred by the Western Area Power 
Administration associated with performing the tasks required under this 
section shall be non-reimbursable.

                         TITLE V--NUCLEAR POWER

             Subtitle A--Price-Anderson Act Reauthorization

SEC. 501. SHORT TITLE.

    This subtitle may be cited as the ``Price-Anderson Amendments Act 
of 2002''.

SEC. 502. EXTENSION OF DEPARTMENT OF ENERGY INDEMNIFICATION AUTHORITY.

    Section 170 d.(1)(A) of the Atomic Energy Act of 1954 (42 U.S.C. 
2210(d)(1)(A)) is amended by striking ``, until August 1, 2002,''.

SEC. 503. DEPARTMENT OF ENERGY LIABILITY LIMIT.

    (a) Indemnification of Department of Energy Contractors.--Section 
170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is amended 
by striking paragraph (2) and inserting the following:
            ``(2) In agreements of indemnification entered into under 
        paragraph (1), the Secretary--
                    ``(A) may require the contractor to provide and 
                maintain financial protection of such a type and in 
                such amounts as the Secretary shall determine to be 
                appropriate to cover public liability arising out of or 
                in connection with the contractual activity, and
                     ``(B) shall indemnify the persons indemnified 
                against such claims above the amount of the financial 
                protection required, in the amount of $10,000,000,000 
                (subject to adjustment for inflation under subsection 
                t.), in the aggregate, for all persons indemnified in 
                connection with such contract and for each nuclear 
                incident, including such legal costs of the contractor 
                as are approved by the Secretary.''.
    (b) Contract Amendments.--Section 170 d. of the Atomic Energy Act 
of 1954 (42 U.S.C. 2210(d)) is further amended by striking paragraph 
(3) and inserting the following:
             ``(3) All agreements of indemnification under which the 
        Department of Energy (or its predecessor agencies) may be 
        required to indemnify any person under this section shall be 
        deemed to be amended, on the date of the enactment of the 
        Price-Anderson Amendments Act of 2002, to reflect the amount of 
        indemnity for public liability and any applicable financial 
        protection required of the contractor under this subsection.''.
    (c) Liability Limit.--Section 170 e.(1)(B) of the Atomic Energy Act 
of 1954 (42 U.S.C. 2210(e)(1)(B)) is amended by striking ``paragraph 
(3)'' and inserting ``paragraph (2)(B)''.

SEC. 504. INCIDENTS OUTSIDE THE UNITED STATES.

    (a) Amount of Indemnification.--Section 170 d.(5) of the Atomic 
Energy Act of 1954 (42 U.S.C. 2210(d)(5)) is amended by striking 
``$100,000,000'' and inserting ``$500,000,000''.
     (b) Liability Limit.--Section 170 e.(4) of the Atomic Energy Act 
of 1954 (42 U.S.C. 2210(e)(4) is amended by striking ``$100,000,000'' 
and inserting ``$500,000,000''.

SEC. 505. REPORTS.

    Section 170 p. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(p)) 
is amended by striking ``August 1, 1998'' and inserting ``August 1, 
2008''.

SEC. 506. INFLATION ADJUSTMENT.

    Section 170 t. of the Atomic Energy Act of 1954 (42 U.S.C. 2210 
(t)) is amended--
            (1) by renumbering paragraph (2) as paragraph (3); and
            (2) by adding after paragraph (1) the following:
            ``(2) The Secretary shall adjust the amount of 
        indemnification provided under an agreement of indemnification 
        under subsection d. not less than once during each 5-year 
        period following July 1, 2002, in accordance with the aggregate 
        percentage change in the Consumer Price Index since--
                    ``(A) such date of enactment, in the case of the 
                first adjustment under this paragraph; or
                    ``(B) the previous adjustment under this 
                paragraph.''.

SEC. 507. CIVIL PENALTIES.

    (a) Repeal of Automatic Remission.--Section 234A b.(2) of the 
Atomic Energy of 1954 (42 U.S.C. 2282a (b)(2)) is amended by striking 
the last sentence.
    (b) Limitation for Not-For-Profit Institutions.--Subsection d. of 
section 234A of the Atomic Energy Act of 1954 (42 U.S.C. 2282a(d)) is 
amended to read as follows:
    ``d. (1) Notwithstanding subsection a., a civil penalty for a 
violation under subsection a. shall not exceed the amount of the fee 
paid under the contract under which such violation occurs for any not-
for-profit contractor, subcontractor, or supplier.
    ``(2) For purposes of this section, the term `not-for-profit' means 
that no part of the net earnings of the contractor, subcontractor, or 
supplier inures, or may lawfully inure, to the benefit of any natural 
person or for-profit artificial person.''.
    (c) Effective Date.--The amendments made by this section shall not 
apply to any violation of the Atomic Energy Act of 1954 occurring under 
a contract entered into before the date of enactment of this section.

SEC. 508. EFFECTIVE DATE.

    The amendments made by sections 503(a) and 504 shall not apply to 
any nuclear incident that occurs before the date of the enactment of 
this subtitle.

                  Subtitle B--Miscellaneous Provisions

SEC. 511. URANIUM SALES.

    (a) Inventory Sales.--Section 3112(d) of the USEC Privatization Act 
(42 U.S.C. 2297h-10(d)) is amended to read as follows:
    ``(d) Inventory Sales.--(1) In addition to the transfers authorized 
under subsections (b), (c), and (e), the Secretary may, from time to 
time, sell or transfer uranium (including natural uranium concentrates, 
natural uranium hexafluoride, enriched uranium, and depleted uranium) 
from the Department of Energy's stockpile.
            ``(2) Except as provided in subsections (b), (c), and (e), 
        the Secretary may not deliver uranium in any form for 
        consumption by end users in any year in excess of the following 
        amounts:

                ``Annual Maximum Deliveries to End Users

    ``Year:                                              (Million lbs. 
                                            U<INF>3</INF>O<INF>8</INF> 
                                                            equivalent)
                2003 through 2009..........................          3 
                2010.......................................          5 
                2011.......................................          5 
                2012.......................................          7 
                2013 and each year thereafter..............         10.
            ``(3) Except as provided in subsections (b), (c), and (e), 
        no sale or transfer of uranium in any form shall be made 
        unless--
                    ``(A) the President determines that the material is 
                not necessary for national security needs;
                    ``(B) the Secretary determines, based on the 
                written views of the Secretary of State and the 
                Assistant to the President for National Security 
                Affairs, that the sale or transfer will not adversely 
                affect the national security interests of the United 
                States;
                    ``(C) the Secretary determines that the sale of the 
                material will not have an adverse material impact on 
                the domestic uranium mining, conversion, or enrichment 
                industry, taking into account the sales of uranium 
                under the Russian HEU Agreement and the Suspension 
                Agreement; and
                    ``(D) the price paid to the Secretary will not be 
                less than the fair market value of the material.''.
    (b) Exempt Transfers and Sales.--Section 3112(e) of the USEC 
Privatization Act (42 U.S.C. 2297h-10(e)) is amended to read as 
follows:
    ``(e) Exempt Sales or Transfers.--Notwithstanding subsection 
(d)(2), the Secretary may transfer or sell uranium--
            ``(1) to the Tennessee Valley Authority for use pursuant to 
        the Department of Energy's highly enriched uranium or tritium 
        program, to the extent provided by law;
            ``(2) to research and test reactors under the University 
        Reactor Fuel Assistance and Support Program or the Reduced 
        Enrichment for Research and Test Reactors Program;
            ``(3) to USEC Inc. to replace contaminated uranium received 
        from the Department of Energy when the United States Enrichment 
        Corporation was privatized;
            ``(4) to any person for emergency purposes in the event of 
        a disruption in supply to end users in the United States; and
            ``(5) to any person for national security purposes, as 
        determined by the Secretary.''.

SEC. 512. REAUTHORIZATION OF THORIUM REIMBURSEMENT.

    (a) Reimbursement of Thorium Licensees.--Section 1001(b)(2)(C) of 
the Energy Policy Act of 1992 (42 U.S.C. 2296a) is amended--
            (1) by striking ``$140,000,000'' and inserting 
        ``$365,000,000''; and
            (2) by adding at the end the following: ``Such payments 
        shall not exceed the following amounts:
            ``(i) $90,000,000 in fiscal year 2002.
            ``(ii) $55,000,000 in fiscal year 2003.
            ``(iii) $20,000,000 in fiscal year 2004.
            ``(iv) $20,000,000 in fiscal year 2005.
            ``(v) $20,000,000 in fiscal year 2006.
            ``(vi) $20,000,000 in fiscal year 2007.
        Any amounts authorized to be paid in a fiscal year under this 
        subparagraph that are not paid in that fiscal year may be paid 
        in subsequent fiscal years.''.
    (b) Authorization of Appropriations.--Section 1003(a) of the Energy 
Policy Act of 1992 (42 U.S.C. 2296a-2) is amended by striking 
``$490,000,000'' and inserting ``$715,000,000''.
    (c) Decontamination and Decommissioning Fund.--Section 1802(a) of 
the Atomic Energy Act of 1954 (42 U.S.C. 2297g-1(a)) is amended--
            (1) by striking ``$488,333,333'' and inserting 
        ``$518,233,333''; and
            (2) by inserting after ``inflation'' the following: 
        ``beginning on the date of enactment of the Energy Policy Act 
        of 1992''.

SEC. 513. FAST FLUX TEST FACILITY.

    The Secretary of Energy shall not reactivate the Fast Flux Test 
Facility to conduct--
            (1) any atomic energy defense activity,
            (2) any space-related mission, or
            (3) any program for the production or utilization of 
        nuclear material if the Secretary has determined, in a record 
        of decision, that the program can be carried out at existing 
        operating facilities.

      DIVISION--DOMESTIC OIL AND GAS PRODUCTION AND TRANSPORTATION

                    TITLE VI--OIL AND GAS PRODUCTION

SEC. 601. PERMANENT AUTHORITY TO OPERATE THE STRATEGIC PETROLEUM 
              RESERVE.

    (a) Amendment to Title I of the Energy Policy and Conservation 
Act.--Title I of the Energy Policy and Conservation Act (42 U.S.C. 6211 
et seq.) is amended--
            (1) by striking section 166 (42 U.S.C. 6246) and 
        inserting--
    ``Sec. 166. There are authorized to be appropriated to the 
Secretary such sums as may be necessary to carry out this part, to 
remain available until expended.''; and
            (2) by striking part E (42 U.S.C. 6251; relating to the 
        expiration of title I of the Act) and its heading.
    (b) Amendment to Title II of the Energy Policy and Conservation 
Act.--Title II of the Energy Policy and Conservation Act (42 U.S.C. 
6271 et seq.) is amended--
            (1) by striking section 256(h) (42 U.S.C. 6276(h)) and 
        inserting--
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as may be necessary to carry 
out this part, to remain available until expended.''.
            (2) by striking section 273(e) (42 U.S.C. 6283(e); relating 
        to the expiration of summer fill and fuel budgeting programs); 
        and
            (3) by striking part D (42 U.S.C. 6285; relating to the 
        expiration of title II of the Act) and its heading.
    (c) Technical Amendments.--The table of contents for the Energy 
Policy and Conservation Act is amended by striking the items relating 
to part D of title I and part D of title II.

SEC. 602. FEDERAL ONSHORE LEASING PROGRAMS FOR OIL AND GAS.

    (a) Timely Action on Leases and Permits.--To ensure timely action 
on oil and gas leases and applications for permits to drill on lands 
otherwise available for leasing, the Secretary of the Interior shall--
            (1) ensure expeditious compliance with the requirements 
        section 102(2)(C) of the National Environmental Policy Act of 
        1969 (42 U.S.C. 4332(2)(C));
            (2) improve consultation and coordination with the States;
            (3) improve the collection, storage, and retrieval of 
        information related to such leasing activities; and
            (4) improve inspection and enforcement activities related 
        to oil and gas leases.
    (b) Authorization of Appropriations.--For the purpose of carrying 
out paragraphs (1) through (4) of subsection (a), there are authorized 
to be appropriated to the Secretary of the Interior $60,000,000 for 
each of the fiscal years 2003 through 2006, in addition to amounts 
otherwise authorized to be appropriated for the purpose of carrying out 
section 17 of the Mineral Leasing Act (30 U.S.C. 226).

SEC. 603. OIL AND GAS LEASE ACREAGE LIMITATIONS.

    Section 27(d)(1) of the Mineral Leasing Act (30 U.S.C. 184(d)(1)) 
is amended by inserting after ``acreage held in special tar sand 
areas'' the following: ``as well as acreage under any lease any portion 
of which has been committed to a Federally approved unit or cooperative 
plan or communitization agreement, or for which royalty, including 
compensatory royalty or royalty in kind, was paid in the preceding 
calendar year,''.

SEC. 604. ORPHANED AND ABANDONED WELLS ON FEDERAL LAND.

    (a) Establishment.--(1) The Secretary of the Interior, in 
cooperation with the Secretary of Agriculture, shall establish a 
program to ensure within three years after the date of enactment of 
this Act, remediation, reclamation, and closure of orphaned oil and gas 
wells located on lands administered by the land management agencies 
within the Department of the Interior and the U.S. Forest Service that 
are--
            (A) abandoned;
            (B) orphaned; or
            (C) idled for more than 5 years and having no beneficial 
        use.
    (2) The program shall include a means of ranking critical sites for 
priority in remediation based on potential environmental harm, other 
land use priorities, and public health and safety.
    (3) The program shall provide that responsible parties be 
identified wherever possible and that the costs of remediation be 
recovered.
    (4) In carrying out the program, the Secretary of the Interior 
shall work cooperatively with the Secretary of Agriculture and the 
states within which the federal lands are located, and shall consult 
with the Secretary of Energy, and the Interstate Oil and Gas Compact 
Commission.
    (b) Plan.--Within six months from the date of enactment of this 
section, the Secretary of the Interior, in cooperation with the 
Secretary of Agriculture, shall prepare a plan for carrying out the 
program established under subsection (a). Copies of the plan shall be 
transmitted to the Committee on Energy and Natural Resources of the 
Senate and the Committee on Resources of the House of Representatives.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of the Interior $5,000,000 for each of 
fiscal years 2003 through 2005 to carry out the activities provided for 
in this section.

SEC. 605. ORPHANED AND ABANDONED OIL AND GAS WELL PROGRAM.

    (a) Establishment.--The Secretary of Energy shall establish a 
program to provide technical assistance to the various oil and gas 
producing states to facilitate state efforts over a ten-year period to 
ensure a practical and economical remedy for environmental problems 
caused by orphaned and abandoned exploration or production well sites 
on state and private lands. The Secretary shall work with the states, 
through the Interstate Oil and Gas Compact Commission, to assist the 
states in quantifying and mitigating environmental risks of onshore 
abandoned and orphaned wells on state and private lands.
    (b) Program Elements.--The program should include--
            (1) mechanisms to facilitate identification of responsible 
        parties wherever possible;
            (2) criteria for ranking critical sites based on factors 
        such as other land use priorities, potential environmental harm 
        and public visibility; and
            (3) information and training programs on best practices for 
        remediation of different types of sites.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy for the activities under this 
section $5,000,000 for each of fiscal years 2003 through 2005 to carry 
out the provisions of this section.

SEC. 606. OFFSHORE DEVELOPMENT.

    Section 5 of the Outer Continental Shelf Lands Act of 1953 (43 
U.S.C. 1334) is amended by adding at the end the following:
    ``(k) Suspension of Operations for Subsalt Exploration.--
Notwithstanding any other provision of law or regulation, the Secretary 
may grant a request for a suspension of operations under any lease to 
allow the lessee to reprocess or reinterpret geologic or geophysical 
data beneath allocthonous salt sheets, when in the Secretary's judgment 
such suspension is necessary to prevent waste caused by the drilling of 
unnecessary wells, and to maximize ultimate recovery of hydrocarbon 
resources under the lease. Such suspension shall be limited to the 
minimum period of time the Secretary determines is necessary to achieve 
the objectives of this subsection.''.

SEC. 607. COALBED METHANE STUDY.

    (a) Study.--The National Academy of Sciences shall conduct a study 
on the effects of coalbed methane production on surface and water 
resources.
    (b) Data Analysis.--The study shall analyze available hydrogeologic 
and water quality data, along with other pertinent environmental or 
other information to determine--
            (1) adverse effects associated with surface or subsurface 
        disposal of waters produced during extraction of coalbed 
        methane;
            (2) depletion of groundwater aquifers or drinking water 
        sources associated with production of coalbed methane;
            (3) any other significant adverse impacts to surface or 
        water resources associated with production of coalbed methane; 
        and
            (4) production techniques or other factors that can 
        mitigate adverse impacts from coalbed methane development.
    (c) Recommendations.--The study shall analyze existing Federal and 
State laws and regulations, and make recommendations as to changes, if 
any, to Federal law necessary to address adverse impacts to surface or 
water resources attributable to coalbed methane development.
    (d) Completion of Study.--The National Academy of Sciences shall 
submit the study to the Secretary of the Interior within 18 months 
after the date of enactment of this Act, and shall make the study 
available to the public at the same time.
    (e) Report to Congress.--The Secretary of the Interior shall report 
to Congress within 6 months of her receipt of the study on--
            (1) the findings and recommendations of the study;
            (2) the Secretary's agreement or disagreement with each of 
        its findings and recommendations; and
            (3) any recommended changes in funding to address the 
        effects of coalbed methane production on surface and water 
        resources.

SEC. 608. FISCAL POLICIES TO MAXIMIZE RECOVERY OF DOMESTIC OIL AND GAS 
              RESOURCES.

    (a) Evaluation.--The Secretary of Energy, in coordination with the 
Secretaries of the Interior, Commerce, and Treasury, Indian tribes and 
the Interstate Oil and Gas Compact Commission, shall evaluate the 
impact of existing Federal and State tax and royalty policies on the 
development of domestic oil and gas resources and on revenues to 
Federal, State, local and tribal governments.
    (b) Scope.--The evaluation under subsection (a) shall--
            (1) analyze the impact of fiscal policies on oil and 
        natural gas exploration, development drilling, and production 
        under different price scenarios, including the impact of the 
        individual and corporate Alternative Minimum Tax, state and 
        local production taxes and fixed royalty rates during low price 
        periods;
            (2) assess the effect of existing federal and state fiscal 
        policies on investment under different geological and 
        developmental circumstances, including but not limited to 
        deepwater environments, subsalt formations, deep and deviated 
        wells, coalbed methane and other unconventional oil and gas 
        formations;
            (3) assess the extent to which federal and state fiscal 
        policies negatively impact the ultimate recovery of resources 
        from existing fields and smaller accumulations in offshore 
        waters, especially in water depths less than 800 meters, of the 
        Gulf of Mexico;
            (4) compare existing federal and state policies with tax 
        and royalty regimes in other countries with particular emphasis 
        on similar geological, developmental and infrastructure 
        conditions; and
            (5) evaluate how alternative tax and royalty policies, 
        including counter-cyclical measures, could increase recovery of 
        domestic oil and natural gas resources and revenues to Federal, 
        State, local and tribal governments.
    (c) Policy Recommendations.--Based upon the findings of the 
evaluation under subsection (a), a report describing the findings and 
recommendations for policy changes shall be provided to the President, 
the Congress, the Governors of the member states of the Interstate Oil 
and Gas Compact Commission, and Indian tribes having an oil and gas 
lease approved by the Secretary of the Interior. The recommendations 
should ensure that the public interest in receiving the economic 
benefits of tax and royalty revenues is balanced with the broader 
national security and economic interests in maximizing recovery of 
domestic resources. The report should include recommendations regarding 
actions to--
            (1) ensure stable development drilling during periods of 
        low oil and/or natural gas prices to maintain reserve 
        replacement and deliverability;
            (2) minimize the negative impact of a volatile investment 
        climate on the oil and gas service industry and domestic oil 
        and gas exploration and production;
            (3) ensure a consistent level of domestic activity to 
        encourage the education and retention of a technical workforce; 
        and
            (4) maintain production capability during periods of low 
        oil and/or natural gas prices.
    (d) Royalty Guidelines.--The recommendations required under (c) 
should include guidelines for private resource holders as to the 
appropriate level of royalties given geology, development cost, and the 
national interest in maximizing recovery of oil and gas resources.
    (e) Report.--The study under subsection (a) shall be completed not 
later than 18 months after the date of enactment of this section. The 
report and recommendations required in (c) shall be transmitted to the 
President, the Congress, Indian tribes, and the Governors of the member 
States of the Interstate Oil and Gas Compact Commission.

SEC. 609. STRATEGIC PETROLEUM RESERVE.

    (a) Full Capacity.--The President shall
            (1) fill the Strategic Petroleum Reserve established 
        pursuant to part B of title I of the Energy Policy and 
        Conservation Act (42 U.S.C. 6231 et seq.) to full capacity as 
        soon as practicable;
            (2) acquire petroleum for the Strategic Petroleum Reserve 
        by the most practicable and cost-effective means, including the 
        acquisition of crude oil the United States is entitled to 
        receive in kind as royalties from production on Federal lands; 
        and
            (3) ensure that the fill rate minimizes impacts on 
        petroleum markets.
    (b) Recommendations.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Energy shall submit to Congress 
a plan to--
            (1) eliminate any infrastructure impediments that may limit 
        maximum drawdown capability; and
            (2) determine whether the capacity of the Strategic 
        Petroleum Reserve on the date of enactment of this section is 
        adequate in light of the increasing consumption of petroleum 
        and the reliance on imported petroleum.

                    TITLE VII--NATURAL GAS PIPELINES

                Subtitle A--Alaska Natural Gas Pipeline

SEC. 701. SHORT TITLE.

    This subtitle may be cited as the ``Alaska Natural Gas Pipeline Act 
of 2002''.

SEC. 702. FINDINGS.

    The Congress finds that:
            (1) Construction of a natural gas pipeline system from the 
        Alaskan North Slope to United States markets is in the national 
        interest and will enhance national energy security by providing 
        access to the significant gas reserves in Alaska needed to meet 
        the anticipated demand for natural gas.
            (2) The Commission issued a certificate of public 
        convenience and necessity for the Alaska Natural Gas 
        Transportation System, which remains in effect.

SEC. 703. PURPOSES.

    The purposes of this subtitle are--
            (1) to expedite the approval, construction, and initial 
        operation of one or more transportation systems for the 
        delivery of Alaska natural gas to the contiguous United States;
            (2) to ensure access to such transportation systems on an 
        equal and nondiscriminatory basis and to promote competition in 
        the exploration, development and production of Alaska natural 
        gas; and
            (3) to provide federal financial assistance to any 
        transportation system for the transport of Alaska natural gas 
        to the contiguous United States, for which an application for a 
        certificate of public convenience and necessity is filed with 
        the Commission not later than 6 months after the date of 
        enactment of this subtitle.

SEC. 704. ISSUANCE OF CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY.

    (a) Authority of the Commission.--Notwithstanding the provisions of 
the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719-719o), 
the Commission may, pursuant to section 7(c) of the Natural Gas Act (15 
U.S.C. 717f(c)), consider and act on an application for the issuance of 
a certificate of public convenience and necessity authorizing the 
construction and operation of an Alaska natural gas transportation 
project other than the Alaska Natural Gas Transportation System.
    (b) Issuance of Certificate.--
            (1) The Commission shall issue a certificate of public 
        convenience and necessity authorizing the construction and 
        operation of an Alaska natural gas transportation project under 
        this section if the applicant has--
                    (A) entered into a contract to transport Alaska 
                natural gas through the proposed Alaska natural gas 
                transportation project for use in the contiguous United 
                States; and
                    (B) satisfied the requirements of section 7(e) of 
                the Natural Gas Act (15 U.S.C. 717f(e)).
            (2) In considering an application under this section, the 
        Commission shall presume that--
                    (A) a public need exists to construct and operate 
                the proposed Alaska natural gas transportation project; 
                and
                    (B) sufficient downstream capacity will exist to 
                transport the Alaska natural gas moving through such 
                project to markets in the contiguous United States.
    (c) Expedited Approval Process.--The Commission shall issue a final 
order granting or denying any application for a certificate of public 
and convenience and necessity under section 7(c) of the Natural Gas Act 
(15 U.S.C. 717f(c)) and this section not more than 60 days after the 
issuance of the final environmental impact statement for that project 
pursuant to section 705.
    (d) Reviews and Actions of Other Federal Agencies.--All reviews 
conducted and actions taken by any federal officer or agency relating 
to an Alaska natural gas transportation project authorized under this 
section shall be expedited, in a manner consistent with completion of 
the necessary reviews and approvals by the deadlines set forth in this 
subtitle.
    (e) Regulations.--The Commission may issue regulations to carry out 
the provisions of this section.

SEC. 705. ENVIRONMENTAL REVIEWS.

    (a) Compliance With NEPA.--The issuance of a certificate of public 
convenience and necessity authorizing the construction and operation of 
any Alaska natural gas transportation project under section 704 shall 
be treated as a major federal action significantly affecting the 
quality of the human environment within the meaning of section 
102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 
4332(2)(C)).
    (b) Designation of Lead Agency.--The Commission shall be the lead 
agency for purposes of complying with the National Environmental Policy 
Act of 1969, and shall be responsible for preparing the statement 
required by section 102(2)(c) of that Act (42 U.S.C. 4332(2)(c)) with 
respect to an Alaska natural gas transportation project under section 
704. The Commission shall prepare a single environmental statement 
under this section, which shall consolidate the environmental reviews 
of all Federal agencies considering any aspect of the project.
    (c) Other Agencies.--All Federal agencies considering aspects of 
the construction and operation of an Alaska natural gas transportation 
project under section 704 shall cooperate with the Commission, and 
shall comply with deadlines established by the Commission in the 
preparation of the statement under this section. The statement prepared 
under this section shall be used by all such agencies to satisfy their 
responsibilities under section 102(2)(C) of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4332(2)(C)) with respect to such project.
    (d) Expedited Process.--The Commission shall issue a draft 
statement under this section not later than 12 months after the 
Commission determines the application to be complete and shall issue 
the final statement not later than 6 months after the Commission issues 
the draft statement, unless the Commission for good cause finds that 
additional time is needed.
    (e) Updated Environmental Reviews Under ANGTA.--The Secretary of 
Energy shall require the sponsor of the Alaska Natural Gas 
Transportation System to submit such updated environmental data, 
reports, permits, and impact analyses as the Secretary determines are 
necessary to develop detailed terms, conditions, and compliance plans 
required by section 5 of the President's Decision.

SEC. 706. FEDERAL COORDINATOR.

    (a) Establishment.--There is established as an independent 
establishment in the executive branch, the Office of the Federal 
Coordinator for Alaska Natural Gas Transportation Projects.
    (b) The Federal Coordinator.--The Office shall be headed by a 
Federal Coordinator for Alaska Natural Gas Transportation Projects, who 
shall--
            (1) be appointed by the President, by and with the advice 
        of the Senate,
            (2) hold office at the pleasure of the President, and
            (3) be compensated at the rate prescribed for level III of 
        the Executive Schedule (5 U.S.C. 5314).
    (c) Duties.--The Federal Coordinator shall be responsible for--
            (1) coordinating the expeditious discharge of all 
        activities by Federal agencies with respect to an Alaska 
        natural gas transportation project; and
            (2) ensuring the compliance of Federal agencies with the 
        provisions of this subtitle.

SEC. 707. JUDICIAL REVIEW.

    (a) Exclusive Jurisdiction.--The United States Court of Appeals for 
the District of Columbia Circuit shall have exclusive jurisdiction to 
determine--
            (1) the validity of any final order or action (including a 
        failure to act) of the Commission under this subtitle;
            (2) the constitutionality of any provision of this 
        subtitle, or any decision made or action taken thereunder; or
            (3) the adequacy of any environmental impact statement 
        prepared under the National Environmental Policy Act of 1969 
        with respect to any action under this subtitle.
    (b) Deadline for Filing Claim.--Claims arising under this subtitle 
may be brought not later than 60 days after the date of the decision or 
action giving rise to the claim.

SEC. 708. LOAN GUARANTEE.

    (a) Authority.--The Secretary of Energy may guarantee not more than 
80 percent of the principal of any loan made to the holder of a 
certificate of public convenience and necessity issued under section 
704(b) of this Act or section 9 of the Alaska Natural Gas 
Transportation Act of 1976 (15 U.S.C. 719g) for the purpose of 
constructing an Alaska natural gas transportation project.
    (b) Conditions--
            (1) The Secretary of Energy may not guarantee a loan under 
        this section unless the guarantee has filed an application for 
        a certificate of public convenience and necessity under section 
        704(b) of this Act or for an amended certificate under section 
        9 of the Alaska Natural Gas Transportation Act of 1976 (15 
        U.S.C. 719g) with the Commission not later than 6 months after 
        the date of enactment of this subtitle.
            (2) A loan guaranteed under this section shall be made by a 
        financial institution subject to the examination of the 
        Secretary.
            (3) Loan requirements, including term, maximum size, 
        collateral requirements and other features shall be determined 
        by the Secretary.
    (c) Limitation on Amount.--Commitments to guarantee loans may be 
made by the Secretary of Energy only to the extent that the total loan 
principal, any part of which is guaranteed, will not exceed 
$10,000,000,000.
    (d) Regulations.--The Secretary of Energy may issue regulations to 
carry out the provisions of this section.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as may be necessary to cover 
the cost of loan guarantees, as defined by section 502(5) of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)).

SEC. 709. STUDY OF ALTERNATIVE MEANS OF CONSTRUCTION.

    (a) Requirement of Study.--If no application for the issuance of a 
certificate of public convenience and necessity authorizing the 
construction and operation of an Alaska natural gas transportation 
project has been filed with the Commission within 6 months after the 
date of enactment of this title, the Secretary of Energy shall conduct 
a study of alternative approaches to the construction and operation of 
the project.
    (b) Scope of Study.--The study shall consider the feasibility of 
establishing a government corporation to construct an Alaska natural 
gas transportation project, and alternative means of providing federal 
financing and ownership (including alternative combinations of 
government and private corporate ownership) of the project.
    (c) Consultation.--In conducting the study, the Secretary of Energy 
shall consult with the Secretary of the Treasury and the Secretary of 
the Army (acting through the Commanding General of the Corps of 
Engineers).
    (d) Report.--If the Secretary of Energy is required to conduct a 
study under subsection (a), he shall submit a report containing the 
results of the study, his recommendations, and any proposals for 
legislation to implement his recommendations to the Congress within 6 
months after the expiration of the Secretary of Energy's authority to 
guarantee a loan under section 708.

SEC. 710. SAVINGS CLAUSE.

    Nothing in this subtitle affects any decision, certificate, permit, 
right-of-way, lease, or other authorization issued under section 9 of 
the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719g).

SEC. 711. CLARIFICATION OF AUTHORITY TO AMEND TERMS AND CONDITIONS TO 
              MEET CURRENT PROJECT REQUIREMENTS.

    Any Federal officer or agency responsible for granting or issuing 
any certificate, permit, right-of-way, lease, or other authorization 
under section 9 of the Alaska Natural Gas Transportation Act of 1976 
(15 U.S.C. 719g) may add to, amend, or abrogate any term or condition 
included in such certificate, permit, right-of-way, lease, or other 
authorization to meet current project requirements (including the 
physical design, facilities, and tariff specifications), so long as 
such action does not compel a change in the basic nature and general 
route of the Alaska Natural Gas Transportation System as designated and 
described in section 2 of the President's Decision, or would otherwise 
prevent or impair in any significant respect the expeditious 
construction and initial operation of such transportation system.

SEC. 712. DEFINITIONS.

    For purposes of this subtitle:
            (1) The term ``Alaska natural gas'' has the meaning given 
        such term by section 4(1) of the Alaska Natural Gas 
        Transportation Act of 1976 (15 U.S.C. 719b(1)).
            (2) The term ``Alaska natural gas transportation project'' 
        means any other natural gas pipeline system that carries Alaska 
natural gas from the North Slope of Alaska to the border between Alaska 
and Canada (including related facilities subject to the jurisdiction of 
the Commission) that is authorized under either--
                    (A) the Alaska Natural Gas Transportation Act of 
                1976 (15 U.S.C. 719-719o); or
                    (B) section 704 of this subtitle.
            (3) The term ``Alaska Natural Gas Transportation System'' 
        means the Alaska natural gas transportation project authorized 
        under the Alaska Natural Gas Transportation Act of 1976 and 
        designated and described in section 2 of the President's 
        Decision.
            (4) The term ``Commission'' means the Federal Energy 
        Regulatory Commission.
            (5) The term ``natural gas company'' means a person engaged 
        in the transportation of natural gas in interstate commerce or 
        the sale in interstate commerce of such gas for resale; and
            (6) The term ``President's Decision'' means the Decision 
        and Report to Congress on the Alaska Natural Gas Transportation 
        system issued by the President on September 22, 1977 pursuant 
        to section 7 of the Alaska Natural Gas Transportation Act of 
        1976 (15 U.S.C. 719c) and approved by Public Law 95-158.

SEC. 713. SENSE OF THE SENATE.

    It is the sense of the Senate that an Alaska natural gas 
transportation project will provide significant economic benefits to 
the United States and Canada. In order to maximize those benefits, the 
Senate urges the sponsors of the pipeline project to make every effort 
to use steel that is manufactured or produced in North America and to 
negotiate a project labor agreement to expedite construction of the 
pipeline.

                    Subtitle B--Operating Pipelines

SEC. 721. APPLICATION OF HISTORIC PRESERVATION ACT TO OPERATING 
              PIPELINES.

    Section 7 of the Natural Gas Act (15 U.S.C. 717(f)) is amended by 
adding at the end the following:
            ``(i)(1) Notwithstanding the National Historic Preservation 
        Act (16 U.S.C. 470 et seq.), a transportation facility shall 
        not be eligible for inclusion on the National Register of 
        Historic Places unless--
                    ``(A) the Commission has permitted the abandonment 
                of the transportation facility pursuant to subsection 
                (b), or
                    ``(B) the owner of the facility has given written 
                consent to such eligibility.
            ``(2) Any transportation facility considered eligible for 
        inclusion on the National Register of Historic Places prior to 
        the date of enactment of this subsection shall no longer be 
        eligible unless the owner of the facility gives written consent 
        to such eligibility.''.

SEC. 722. ENVIRONMENTAL REVIEW AND PERMITTING OF NATURAL GAS PIPELINE 
              PROJECTS.

    (a) Interagency Review.--The Chairman of the Council on 
Environmental Quality, in coordination with the Federal Energy 
Regulatory Commission, shall establish an interagency task force to 
develop an interagency memorandum of understanding to expedite the 
environmental review and permitting of natural gas pipeline projects.
    (b) Membership of Interagency Task Force.--The task force shall 
consist of--
            (1) the Chairman of the Council on Environmental Quality, 
        who shall serve as the Chairman of the interagency task force,
            (2) the Chairman of the Federal Energy Regulatory 
        Commission,
            (3) the Director of the Bureau of Land Management,
            (4) the Director of the U.S. Fish and Wildlife Service,
            (5) the Commanding General, U.S. Army Corps of Engineers,
            (6) the Chief of the Forest Service,
            (7) the Administrator of the Environmental Protection 
        Agency,
            (8) the Chairman of the Advisory Council on Historic 
        Preservation, and
            (9) the heads of such other agencies as the Chairman of the 
        Council on Environmental Quality and the Chairman of the 
        Federal Energy Regulatory Commission deem appropriate.
    (c) Memorandum of Understanding.--The agencies represented by the 
members of the interagency task force shall enter into the memorandum 
of understanding not later than one year after the date of the 
enactment of this section.

    DIVISION C--DIVERSIFYING ENERGY DEMAND AND IMPROVING EFFICIENCY

                     TITLE VIII--FUELS AND VEHICLES

             Subtitle A--CAFE Standards and Related Matters

SEC. 801. AVERAGE FUEL ECONOMY STANDARDS FOR PASSENGER AUTOMOBILES AND 
              LIGHT TRUCKS.

    (a) Increased Standards.--Section 32902 of title 49, United States 
Code, is amended--
            (1) by striking ``Non-Passenger Automobiles.--'' in 
        subsection (a) and inserting ``Prescription of Standards by 
        Regulation.--'';
            (2) by striking ``(except passenger automobiles)'' in 
        subsection (a) and inserting ``(except passenger automobiles 
        and light trucks)''; and
            (3) by striking subsection (b) and inserting the following:
    ``(b) Standards for Passenger Automobiles and Light Trucks.--
            ``(1) In general.--The Secretary of Transportation, after 
        consultation with the Administrator of the Environmental 
        Protection Agency, shall prescribe average fuel economy 
        standards for passenger automobiles and light trucks 
        manufactured by a manufacturer in each model year beginning 
        with model year 2007 in order to achieve a combined average 
        fuel economy standard for passenger automobiles and light 
        trucks for model year 2015 of at least 35 miles per gallon.
            ``(2) Annual progress toward standard required.--In 
        prescribing average fuel economy standards under paragraph (1), 
        the Secretary shall prescribe appropriate annual fuel economy 
        standard increases for passenger automobiles and light trucks 
        that--
                    ``(A) increase the applicable average fuel economy 
                standard ratably over the 9 model-year period beginning 
                with model year 2007 and ending with model year 2015;
                    ``(B) require that each manufacturer achieve--
                            ``(i) a fuel economy standard for passenger 
                        automobiles manufactured by that manufacturer 
                        of at least 33.2 miles per gallon no later than 
                        model year 2012; and
                            ``(ii) a fuel economy standard for light 
                        trucks manufactured by that manufacturer of at 
                        least 26.3 miles per gallon no later than model 
                        year 2012; and
                    ``(C) for any model year within that 9 model-year 
                period does not result in an average fuel economy 
                standard lower than--
                            ``(i) 27.5 miles per gallon for passenger 
                        automobiles; or
                            ``(ii) 20.7 miles per gallon for light duty 
                        trucks.
            ``(3) Deadline for regulations.--The Secretary shall 
        promulgate the regulations required by paragraphs (1) and (2) 
        in final form no later than 18 months after the date of 
        enactment of the Energy Policy Act of 2002.
            ``(4) Default standards.--If the Secretary fails to meet 
        the requirement of paragraph (3), the average fuel economy 
        standard for passenger automobiles and light trucks 
        manufactured by a manufacturer in each model year beginning 
        with model year 2005 is the average fuel economy standard set 
        forth in the following tables:

``For model year                    The average fuel economy standard 
                                            for passenger automobiles 
                                            is:
    ``2007.........................
                                        28 miles per gallon
    ``2008.........................
                                        28.5 miles per gallon
    ``2009.........................
                                        30 miles per gallon
    ``2010.........................
                                        31 miles per gallon
    ``2011.........................
                                        32.5 miles per gallon
    ``2012.........................
                                        34 miles per gallon
    ``2013.........................
                                        35 miles per gallon
    ``2014.........................
                                        36.5 miles per gallon
    ``2015 and thereafter..........
                                        38.3 miles per gallon

``For model year                    The average fuel economy standard 
                                            for light trucks is:
    ``2007.........................
                                        21.5 miles per gallon
    ``2008.........................
                                        22.5 miles per gallon
    ``2009.........................
                                        23.5 miles per gallon
    ``2010.........................
                                        24.5 miles per gallon
    ``2011.........................
                                        26 miles per gallon
    ``2012.........................
                                        27.5 miles per gallon
    ``2013.........................
                                        29.5 miles per gallon
    ``2014.........................
                                        31 miles per gallon
    ``2015 and thereafter..........
                                        32 miles per gallon
            ``(5) Combined standard for model years after model year 
        2012.--Unless the default standards under paragraph (4) are in 
        effect, for model years after model year 2012, the Secretary 
        may by rulemaking establish--
                    ``(A) separate average fuel economy standards for 
                passenger automobiles and light trucks manufactured by 
                a manufacturer; or
                    ``(B) a combined average fuel economy standard for 
                passenger automobiles and light trucks manufactured by 
                a manufacturer.'';
            (4) by striking ``the standard'' in subsection (c)(1) and 
        inserting ``a standard'';
            (5) by striking the first and last sentences of subsection 
        (c)(2); and
            (6) by striking ``(and submit the amendment to Congress 
        when required under subsection (c)(2) of this section)'' in 
        subsection (g).
    (b) Definition of Light Trucks.--
            (1) In general.--Section 32901(a) of title 49, United 
        States Code, is amended by adding at the end the following:
            ``(17) `light truck' means an automobile that the Secretary 
        decides by regulation--
                    ``(A) is manufactured primarily for transporting 
                not more than 10 individuals;
                    ``(B) is rated at not more than 10,000 pounds gross 
                vehicle weight;
                    ``(C) is not a passenger automobile; and
                    ``(D) does not fall within the exceptions from the 
                definition of `medium duty passenger vehicle' under 
                section 86.1803-01 of title 40, Code of Federal 
                Regulations.''.
            (2) Deadline for regulations.--The Secretary of 
        Transportation--
                    (A) shall issue proposed regulations implementing 
                the amendment made by paragraph (1) not later than 1 
                year after the date of the enactment of this Act; and
                    (B) shall issue final regulations implementing the 
                amendment not later than 18 months after the date of 
                the enactment of this Act.
            (3) Effective date.--Regulations prescribed under paragraph 
        (1) shall apply beginning with model year 2007.
    (c) Applicability of Existing Standards.--This section does not 
affect the application of section 32902 of title 49, United States 
Code, to passenger automobiles or non-passenger automobiles 
manufactured before model year 2005.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation to carry out the 
provisions of chapter 329 of title 49, United States Code, $25,000,000 
for each of fiscal years 2003 through 2015.

SEC. 802. FUEL ECONOMY TRUTH IN TESTING.

    (a) In General.--Section 32907 of title 49, United States Code, is 
amended by adding at the end the following:
    ``(c) Improved Testing Procedures.--
            ``(1) In general.--The Administrator of the Environmental 
        Protection Agency shall conduct--
                    ``(A) an ongoing examination of the accuracy of 
                fuel economy testing of passenger automobiles and light 
                trucks by the Administrator performed in accordance 
                with the procedures in effect as of the date of 
                enactment of the Energy Policy Act of 2002 for the 
                purpose of determining whether, and to what extent, the 
                fuel economy of passenger automobiles and light trucks 
                as tested by the Administrator differs from the fuel 
                economy reasonably to be expected from those 
                automobiles and trucks when driven by average drivers 
                under average driving conditions; and
                    ``(B) an assessment of the extent to which fuel 
                economy changes during the life of passenger 
                automobiles and light trucks.''.
            ``(2) Report.--The Administrator of the Environmental 
        Protection Agency shall, within 12 months after the date of 
        enactment of the Energy Policy Act of 2002 and annually 
        thereafter, submit to the Committee on Commerce, Science, and 
        Transportation of the Senate and the Committee on Commerce of 
        the House of Representatives a report on the results of the 
        study required by paragraph (1). The report shall include--
                    ``(A) a comparison between--
                            ``(i) fuel economy measured, for each model 
                        in the applicable model year, through testing 
                        procedures in effect as of the date of 
                        enactment of the Energy Policy Act of 2002; and
                            ``(ii) fuel economy of such passenger 
                        automobiles and light trucks during actual on-
                        road performance, as determined under that 
                        paragraph;
                    ``(B) a statement of the percentage difference, if 
                any, between actual on-road fuel economy and fuel 
                economy measured by test procedures of the 
                Environmental Protection Administration; and
                    ``(C) a plan to reduce, by model year 2015, the 
                percentage difference identified under subparagraph (B) 
                by using uniform test methods that reflect actual on-
                the-road fuel economy consumers experience under normal 
                driving conditions to no greater than 5 percent.''.

SEC. 803. ENSURING SAFETY OF PASSENGER AUTOMOBILES AND LIGHT TRUCKS.

    (a) In General.--The Secretary of Transportation shall exercise 
such authority under Federal law as the Secretary may have to ensure 
that--
            (1) passenger automobiles and light trucks (as those terms 
        are defined in section 32901 of title 49, United States Code) 
        are safe;
            (2) progress is made in improving the overall safety of 
        passenger automobiles and light trucks; and
            (3) progress is made in maximizing United States 
        employment.
    (b) Improved Crashworthiness.--Subchapter II of chapter 301 of 
title 49, United States Code, is amended by adding at the end the 
following:
``Sec. 30128. Improved crashworthiness
    ``(a) Rollovers.--Within 3 years after the date of enactment of the 
Energy Policy Act of 2002, the Secretary of Transportation, through the 
National Highway Traffic Safety Administration, shall prescribe a motor 
vehicle safety standard under this chapter for rollover crashworthiness 
standards that includes--
            ``(1) dynamic roof crush standards;
            ``(2) improved seat structure and safety belt design;
            ``(3) side impact head protection airbags; and
            ``(4) roof injury protection measures.
    ``(b) Heavy Vehicle Harm Reduction Compatibility Standard.--
            ``(1) Within 3 years after the date of enactment of the 
        Energy Policy Act of 2002, the Secretary, through the National 
        Highway Traffic Safety Administration, shall prescribe a 
        Federal motor vehicle safety standard under this chapter that 
will reduce the aggressivity of light trucks by 30 percent, using a 
baseline of model year 2002, and will improve vehicle compatibility in 
collisions between light trucks and cars, in order to protect against 
unnecessary death and injury.
            ``(2) The Secretary should review the effectiveness of this 
        standard every five years following final issuance of the 
        standard and shall issue, through the National Highway Traffic 
        Safety Administration, upgrades to the standard to reduce 
        fatalities and injuries related to vehicle compatibility and 
        light truck aggressivity.''.
    (c) Conforming Amendment.--The chapter analysis for chapter 301 of 
title 49, United States Code, is amended by inserting after the item 
relating to section 30127 the following: ``30128. Improved 
crashworthiness''.

SEC. 804. 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 it is a hybrid vehicle or is 
certified by the Secretary of Transportation, after consultation with 
the Administrator of the Environmental Protection Agency, to be a 
vehicle that runs only on an alternative fuel.
    (b) Hybrid Vehicle Defined.--In this section, the term ``hybrid 
vehicle'' means a motor vehicle--
            (1) which--
                    (A) 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; 
                        or
                    (B) recovers kinetic energy through regenerative 
                braking and provides at least 13 percent maximum power 
                from the electrical storage device;
            (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. 805. CREDIT TRADING PROGRAM.

    (a) In General.--Section 32903 of title 49, United States Code, is 
amended by adding at the end the following:
    ``(g) Vehicle Credit Trading System.--
            ``(1) In general.--The Secretary of Transportation, with 
        technical assistance from the Administrator of the 
        Environmental Protection Agency, may establish a system under 
        which manufacturers with credits under this section may sell 
        those credits to other manufacturers or transfer them among a 
        manufacturer's fleets.
            ``(2) Purposes.--The purposes of the system are:
                    ``(A) Reducing the adverse effects of inefficient 
                consumption of fuel by passenger automobiles and light 
                trucks.
                    ``(B) Accelerating introduction of advanced 
                technology vehicles into use in the United States.
                    ``(C) Encouraging manufacturers to exceed the 
                average fuel economy standards established by section 
                32902.
                    ``(D) Reducing emissions of carbon dioxide by 
                passenger automobiles and light trucks.
                    ``(E) Decreasing the United States' consumption of 
                oil as vehicular fuel.
                    ``(F) Providing manufacturers flexibility in 
                meeting the average fuel economy standards established 
                by section 32902.
                    ``(G) Increasing consumer choice.
            ``(3) Program requirements.--The system established under 
        paragraph (1) shall--
                    ``(A) make only credits accrued after the date of 
                enactment of the Energy Policy Act of 2002 eligible for 
                transfer or sale;
                    ``(B) use techniques and methods that minimize 
                reporting costs for manufacturers;
                    ``(C) provide for monitoring and verification of 
                credit purchases;
                    ``(D) require participating manufacturers to report 
                monthly sales of vehicles to the Administrator of the 
                Environmental Protection Agency; and
                    ``(E) make manufacturer-specific credit, transfer, 
                sale, and purchase information publicly available 
                through annual reports and monthly posting of 
                transactions on the Internet.
            ``(4) Credits may be traded between passenger automobiles 
        and light trucks and between domestic and import fleets.--The 
        system shall provide that credits earned under this section--
                    ``(A) with respect to passenger automobiles may be 
                applied with respect to light trucks;
                    ``(B) with respect to light trucks may be applied 
                with respect to passenger automobiles;
                    ``(C) with respect to passenger automobiles 
                manufactured domestically may be applied with respect 
                to passenger automobiles not manufactured domestically; 
                and
                    ``(D) with respect to passenger automobiles not 
                manufactured domestically may be applied with respect 
                to passenger automobiles manufactured domestically.
            ``(5) Report.--The Secretary and the Administrator shall 
        jointly submit an annual report to the Congress--
                    ``(A) describing the effectiveness of the credits 
                provided by this subsection achieving the purposes 
                described in paragraph (2); and
                    ``(B) setting forth a full accounting of all 
                credits, transfers, sales, and purchases for the most 
                recent model year for which data is available.''.
    (b) No Carryback of Credits.--Section 32903(a) of title 49, United 
States Code, is amended--
            (1) by striking ``applied to--'' and inserting ``applied--
        '';
            (2) by inserting ``for model years before model year 2006, 
        to'' in paragraph (1) before ``any'';
            (3) by striking ``and'' after the semicolon in paragraph 
        (1);
            (4) by striking ``earned.'' in paragraph (2) and inserting 
        ``earned; and''; and
            (5) by adding at the end the following:
            ``(3) for model years after 2001, in accordance with the 
        vehicle credit trading system established under subsection (g), 
        to any of the 3 consecutive model years immediately after the 
        model year for which the credit was earned.''.
    (c) Use of Credit Value To Calculate Civil Penalty.--Section 
32912(b) of title 49, United States Code, is amended--
            (1) by inserting ``and is unable to purchase sufficient 
        credits under section 32903(g) to comply with the standard'' 
        after ``title'' the first place it appears; and
            (2) by striking all after ``penalty'' and inserting ``of 
        the greater of--
            ``(1) an amount determined by multiplying--
                    ``(A) the number of credits necessary to enable the 
                manufacturer to meet that standard; by
                    ``(B) 1.5 times the previous year's weighted 
                average open market price of a credit under section 
                32903(g); or
            ``(2) $5 multiplied by each 0.1 of a mile a gallon by which 
        the applicable average fuel economy standard under section 
        32902 exceeds the average fuel economy--
                    ``(A) calculated under section 32904(a)(1)(A) or 
                (B) for automobiles to which the standard applied 
                manufactured by the manufacturer during the model year;
                    ``(B) multiplied by the number of those 
                automobiles; and
                    ``(C) reduced by the credits available to the 
                manufacturer under section 32903 for the model year.''.
    (d) Conforming Amendments.--Section 32903 of title 49, United 
States Code, is amended--
            (1) by inserting ``or light trucks'' after ``passenger 
        automobiles'' each place it appears in subsection (c);
            (2) by inserting after ``manufacturer.'' in subsection (d) 
        ``Credits earned with respect to passenger automobiles may be 
        used with respect to nonpassenger automobiles and light duty 
        trucks.''; and
            (3) by inserting after ``manufacturer.'' in subsection (e) 
        ``Credits earned with respect to non-passenger automobiles or 
        light trucks may be used with respect to passenger 
        automobiles.''.

SEC. 806. GREEN LABELS FOR FUEL ECONOMY.

    Section 32908 of title 49, United States Code, is amended--
            (1) by striking ``title.'' in subsection (a)(1) and 
        inserting ``title, and a light truck (as defined in section 
        32901(17) after model year 2005; and'';
            (2) by redesignating subparagraph (F) of subsection (b)(1) 
        as subparagraph (H), and inserting after subparagraph (E) the 
        following:
                    ``(F) a label (or a logo imprinted on a label 
                required by this paragraph) that--
                            ``(i) reflects an automobile's performance 
                        on the basis of criteria developed by the 
                        Administrator to reflect the fuel economy and 
                        greenhouse gas and other emissions consequences 
                        of operating the automobile over its likely 
                        useful life;
                            ``(ii) permits consumers to compare 
                        performance results under clause (i) among all 
                        passenger automobiles and light duty trucks (as 
                        defined in section 32901) and with vehicles in 
                        the vehicle class to which it belongs; and
                            ``(iii) is designed to encourage the 
                        manufacture and sale of passenger automobiles 
                        and light trucks that meet or exceed applicable 
                        fuel economy standards under section 32902.
                    ``(G) a fuelstar under paragraph (5).''; and
            (3) by adding at the end of subsection (b) the following:
            ``(4) Green label program.--
                    ``(A) Marketing analysis.--Within 2 years after the 
                date of enactment of the Energy Policy Act of 2002, the 
                Administrator shall complete a study of social 
                marketing strategies with the goal of maximizing 
                consumer understanding of point-of-sale labels or logos 
                described in paragraph (1)(F).
                    ``(B) Criteria.--In developing criteria for the 
                label or logo, the Administrator shall also consider, 
                among others as appropriate, the following factors:
                            ``(i) The amount of greenhouse gases that 
                        will be emitted over the life-cycle of the 
                        automobile.
                            ``(ii) The fuel economy of the automobile.
                            ``(iii) The recyclability of the 
                        automobile.
                            ``(iv) Any other pollutants or harmful 
                        byproducts related to the automobile, which may 
                        include those generated during manufacture of 
                        the automobile, those issued during use of the 
                        automobile, or those generated after the 
                        automobile ceases to be operated.
            ``(5) Fuelstar program.--The Secretary, in consultation 
        with the Administrator, shall establish a program, to be known 
        as the `fuelstar' program, under which stars shall be imprinted 
        on or attached to the label required by paragraph (1) that 
        will, consistent with the findings of the marketing analysis 
        required under subsection 4(A), provide consumer incentives 
to purchase vehicles that exceed the applicable fuel economy standard.

SEC. 807. LIGHT TRUCK CHALLENGE.

    (a) In General.--The Secretary of Transportation shall conduct an 
open competition for a project to demonstrate the feasibility of 
multiple fuel hybrid electric vehicle powertrains in sport utility 
vehicles and light trucks. The Secretary shall execute a contract with 
the entity determined by the Secretary to be the winner of the 
competition under which the Secretary will provide $10,000,000 to that 
entity in each of fiscal years 2003 and 2004 to carry out the project.
    (b) Project Requirements.--Under the contract, the Secretary shall 
require the entity to which the contract is awarded to--
            (1) select a current model year production vehicle;
            (2) modify that vehicle so that it--
                    (A) meets all existing vehicle performance 
                characteristics of the sport utility vehicle or light 
                truck selected for the project;
                    (B) improves the vehicle's fuel economy rating by 
                50 percent or more (as measured by gasoline 
                consumption); and
            (3) meet the requirements of paragraph (2) in such a way 
        that incorporation of the modification in the manufacturer's 
        production process would not increase the vehicle's incremental 
        production costs by more than 10 percent.
    (c) Eligible Entrants.--The competition conducted by the Secretary 
shall be open to any entity, or consortium of nongovernmental entities, 
educational institutions, and not-for-profit organizations, that--
            (1) has the technical capability and resources needed to 
        complete the project successfully; and
            (2) has sufficient financial resources in addition to the 
        contract amount, if necessary, to complete the contract 
        successfully.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation $10,000,000 for each of 
fiscal years 2003 and 2004 to carry out this section.

SEC. 808. SECRETARY OF TRANSPORTATION TO CERTIFY BENEFITS.

    Beginning with model year 2005, the Secretary of Transportation, in 
consultation with the Administrator of the Environmental Protection 
Agency, shall determine and certify annually to the Congress--
            (1) the annual reduction in United States consumption of 
        petroleum used for vehicle fuel, and
            (2) the annual reduction in greenhouse gas emissions,
properly attributable to the implementation of the average fuel economy 
standards imposed under section 32902 of title 49, United States Code, 
as a result of the amendments made by this Act.

SEC. 809. DEPARTMENT OF TRANSPORTATION ENGINEERING AWARD PROGRAM.

    (a) Engineering Team Awards.--The Secretary of Transportation shall 
establish an engineering award program to recognize the engineering 
team of any manufacturer of passenger automobiles or light trucks (as 
such terms are defined in section 32901 of title 49, United States 
Code) whose work directly results in production models of--
            (1) the first large sport utility vehicle, van, or light 
        truck to achieve a fuel economy rating of 30 miles per gallon 
        under section 32902 of such title;
            (2) the first mid-sized sport utility vehicle, van, or 
        light truck to achieve a fuel economy rating of 35 miles per 
        gallon under section 32902 of such title; and
            (3) the first small sport utility vehicle, van, or light 
        truck to achieve a fuel economy rating of 40 miles per gallon 
        under section 32902 of such title.
    (b) Manufacturer's Award.--The Secretary of Transportation shall 
establish an Oil Independence Award to recognize the first manufacturer 
of domestically-manufactured (within the meaning of section 32903 of 
title 49, United States Code) passenger automobiles and light trucks to 
achieve a combined fuel economy rating of 37 miles per gallon under 
section 32902 of such title.
    (c) Requirements for Participation in Engineering Team Awards 
Program.--In establishing the engineering team awards program under 
subsection (a), the Secretary shall establish eligibility requirements 
that include--
            (1) a requirement that the vehicle, van, or truck be 
        domestically-manufactured or manufacturable (if a prototype) 
        within the meaning of section 32903 of title 49, United States 
        Code;
            (2) a requirement that the vehicle, van, or truck meet all 
        applicable Federal standards for emissions and safety (except 
        that crash testing shall not be required for a prototype); and
            (3) such additional requirements as the Secretary may 
        require in order to carry out the program.
    (d) Amount of Prize.--The Secretary shall award a prize of not less 
than $10,000 to each engineering team determined by the Secretary to 
have successfully met the requirements of subsection (a)(1), (2), or 
(3). The Secretary shall provide for recognition of any manufacturer to 
have met the requirements of subsection (b) with appropriate ceremonies 
and activities, and may provide a monetary award in an amount 
determined by the Secretary to be appropriate.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation such sums as may be 
necessary to carry out this section.

SEC. 810. COOPERATIVE TECHNOLOGY AGREEMENTS.

    (a) In General.--The Secretary of Transportation, in cooperation 
with the Administrator of the Environmental Protection Agency, may 
execute a cooperative research and development agreement with any 
manufacturer of passenger automobiles or light trucks (as those terms 
are defined in section 32901 of title 49, United States Code) to 
implement, utilize, and incorporate in production government-developed 
or jointly-developed fuel economy technology that will result in 
improvements in the average fuel economy of any class of vehicles 
produced by that manufacturer of at least 55 percent greater than the 
average fuel economy of that class of vehicles for model year 2000.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation and the Administrator 
of the Environmental Protection Agency such sums as may be necessary to 
carry out this section.

              Subtitle B--Alternative and Renewable Fuels

SEC. 811. INCREASED USE OF ALTERNATIVE FUELS BY FEDERAL FLEETS.

    (a) Requirement To Use Alternative Fuels.--Section 400AA(a)(3)(E) 
of the Energy Policy and Conservation Act (42 U.S.C. 6374(a)(3)(E)) is 
amended to read as follows:
                    ``(E) Dual fueled vehicles acquired pursuant to 
                this section shall be operated on alternative fuels. If 
                the Secretary determines that all dual fueled vehicles 
                acquired pursuant to this section cannot operate on 
                alternative fuels at all times, he may waive the 
                requirement in part, but only to the extent that:
                            ``(i) Not later than September 30, 2003, 
                        not less than 50 percent of the total annual 
                        volume of fuel used in such dual fueled 
                        vehicles shall be from alternative fuels.
                            ``(ii) Not later than September 30, 2005, 
                        not less than 75 percent of the total annual 
                        volume of fuel used in such dual fueled 
                        vehicles shall be from alternative fuels.''.
    (b) Definition of ``Dedicated Vehicle''.--Section 400AA(g)(4)(B) of 
the Energy Policy and Conservation Act (42 U.S.C. 6374(g)(4)(B)) is 
amended by inserting after ``solely on alternative fuel'' the 
following: ``, including a three-wheeled enclosed electric vehicle 
having a vehicle identification number''.

SEC. 812. EXCEPTION TO HOV PASSENGER REQUIREMENTS FOR ALTERNATIVE FUEL 
              VEHICLES.

    Section 102(a)(1) of title 23, United States Code, is amended by 
inserting after ``required'' the following: ``(unless, in the 
discretion of the State transportation department, the vehicle is being 
operated on, or is being fueled by, an alternative fuel (as defined in 
section 301(2) of the Energy Policy Act of 1992 (42 U.S.C. 
13211(2)))''.

SEC. 813. DATA COLLECTION.

    Section 205 of the Department of Energy Organization Act (42 U.S.C. 
7135) is amended by adding at the end the following:
    ``(m) In order to improve the ability to evaluate the effectiveness 
of the Nation's renewable fuels mandate, the Administrator shall 
conduct and publish the results of a survey of renewable fuels 
consumption in the motor vehicle fuels market in the United States 
monthly, and in a manner designed to protect the confidentiality of 
individual responses. In conducting the survey, the Administrator shall 
collect information both on a national basis and a regional basis, 
including--
            (1) the quantity of renewable fuels produced;
            (2) the cost of production;
            (3) the cost of blending and marketing;
            (4) the quantity of renewable fuels consumed;
            (5) the quantity of renewable fuels imported; and
            (6) market price data.

SEC. 814. GREEN SCHOOL BUS PILOT PROGRAM.

    (a) Establishment.--The Secretary of Energy and the Secretary of 
Transportation shall jointly establish a pilot program for awarding 
grants on a competitive basis to eligible entities for the 
demonstration and commercial application of alternative fuel school 
buses and ultra-low sulfur diesel school buses.
    (b) Requirements.--Not later than 3 months after the date of the 
enactment of this Act, the Secretary shall establish and publish in the 
Federal register grant 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 instead 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 instead 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 only 
be used to demonstrate the use of new alternative fuel school buses or 
ultra-low sulfur diesel school buses that--
            (1) have a gross vehicle weight greater than 14,000 pounds;
            (2) are powered by a heavy duty engine;
            (3) in the case of alternative fuel school buses, emit not 
        more than--
                    (A) for buses manufactured in model year 2002, 2.5 
                grams per brake horsepower-hour of nonmethane 
                hydrocarbons and oxides of nitrogen and .01 grams per 
                brake horsepower-hour of 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) in the case of ultra-low sulfur diesel school buses, 
        emit not more than the lesser of--
                    (A) the emissions of nonmethane hydrocarbons, 
                oxides of nitrogen, and particulate matter of the best 
                performing technology of the same class of ultra-low 
                sulfur diesel school buses commercially available at 
                the time the grant is made; or
                    (B) the applicable following amounts--
                            (i) for buses manufactured in model year 
                        2002 or 2003, 3.0 grams per brake horsepower-
                        hour of oxides of nitrogen and .01 grams per 
                        brake horsepower-hour of particulate matter; 
                        and
                            (ii) for buses manufactured in model years 
                        2004 through 2006, 2.5 grams per brake 
                        horsepower-hour of nonmethane hydrocarbons and 
                        oxides of nitrogen and .01 grams per brake 
                        horsepower-hour of particulate matter.
    (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. 815. 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 815 may be used for carrying out this section for the 
period encompassing fiscal years 2003 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. 816. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary of Energy 
for carrying out sections 814 and 815, to remain available until 
expended--
            (1) $50,000,000 for fiscal year 2003;
            (2) $60,000,000 for fiscal year 2004;
            (3) $70,000,000 for fiscal year 2005; and
            (4) $80,000,000 for fiscal year 2006.

SEC. 817. BIODIESEL FUEL USE CREDIT.

    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. 818. NEIGHBORHOOD ELECTRIC VEHICLES.

    Section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211) is 
amended--
            (1) by striking ``or a dual fueled vehicle'' and inserting 
        ``, a dual fueled vehicle, or a neighborhood electric 
        vehicle'';
            (2) by striking ``and'' at the end of paragraph (13);
            (3) by striking the period at the end of subparagraph (14) 
        and inserting ``; and''; and
            (4) by adding at the end the following:
            ``(15) the term `neighborhood electric vehicle' means a 
        motor vehicle that qualifies as both--
                    ``(A) a low-speed vehicle, as such term is defined 
                in section 571.3(b) of title 49, Code of Federal 
                Regulations; and
                    ``(B) a zero-emission vehicle, as such term is 
                defined in section 86.1703-99 of title 40, Code of 
                Federal Regulations.''.

SEC. 819. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL.

    (a) In General.--Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended--
            (1) by redesignating subsection (o) as subsection (q); and
            (2) by inserting after subsection (n) the following:
    ``(o) Renewable Fuel Pprogram.--
            ``(1) Definitions.--In this section:
                    ``(A) Cellulosic biomass ethanol.--The term 
                `cellulosic biomass ethanol' means ethanol derived from 
                any lignocellulosic or hemicellulosic matter that is 
                available on a renewable or recurring basis, 
                including--
                            ``(i) dedicated energy crops and trees;
                            ``(ii) wood and wood residues;
                            ``(iii) plants;
                            ``(iv) grasses;
                            ``(v) agricultural commodities and 
                        residues;
                            ``(vi) fibers;
                            ``(vii) animal wastes and other waste 
                        materials; and
                            ``(viii) municipal solid waste.
                    ``(B) Renewable fuel.--
                            ``(i) In general.--The term `renewable 
                        fuel' means motor vehicle fuel that--
                                    ``(I)(aa) is produced from grain, 
                                starch, oilseeds, or other biomass; or
                                    ``(bb) is natural gas produced from 
                                a biogas source, including a landfill, 
                                sewage waste treatment plant, feedlot, 
                                or other place where decaying organic 
                                material is found; and
                                    ``(II) is used to replace or reduce 
                                the quantity of fossil fuel present in 
                                a fuel mixture used to operate a motor 
                                vehicle.
                            ``(ii) Inclusion.--The term `renewable 
                        fuel' includes cellulosic biomass ethanol and 
                        biodiesel (as defined in section 312(f) of the 
                        Energy Policy Act of 1992 (42 U.S.C. 13220(f)).
                    ``(C) Small refinery.--The term `small refinery' 
                means a refinery for which average aggregate daily 
                crude oil throughput for the calendar year (as 
                determined by dividing the aggregate throughput for the 
                calendar year by the number of days in the calendar 
                year) does not exceed 75,000 barrels.
            ``(2) Renewable fuel program.--
                    ``(A) In general.--Not later than one year from 
                enactment of this provision, the Administrator shall 
                promulgate regulations ensuring that gasoline sold or 
                dispensed to consumers in the United States, on an 
                annual average basis, contains the applicable volume of 
                renewable fuel as specified in subparagraph (B). 
                Regardless of the date of promulgation, such 
                regulations shall contain compliance provisions for 
                refiners, blenders, distributors and importers, as 
                appropriate, to ensure that the requirements of this 
                section are met, but shall not restrict where 
                renewables can be used, or impose any per-gallon 
                obligation for the use of renewables. If the 
                Administrator does not promulgate such regulations, the 
                applicable percentage, on a volume percentage of 
                gasoline basis, shall be 1.62 in 2004.
                    ``(B) Applicable volume.--
                            (i) Calendar years 2004 through 2012.--For 
                        the purpose of subparagraph (A), the applicable 
                        volume for any of calendar years 2004 through 
                        2012 shall be determined in accordance with the 
                        following table:

                  Applicable volume of renewable fuel

``Calendar year:                               (In billions of gallons)
                2004.......................................         2.3

                2005.......................................         2.6

                2006.......................................         2.9

                2007.......................................         3.2

                2008.......................................         3.5

                2009.......................................         3.9

                2010.......................................         4.3

                2011.......................................         4.7

                2012.......................................        5.0.
                            ``(ii) Calendar year 2013 and thereafter.--
                        For the purpose of subparagraph (A), the 
                        applicable volume for calendar year 2013 and 
                        each calendar year thereafter shall be equal to 
                        the product obtained by multiplying--
                                    ``(I) the number of gallons of 
                                gasoline that the Administrator 
                                estimates will be sold or introduced 
                                into commerce in the calendar year; and
                                    ``(II) the ratio that--
                                            ``(aa) 5.0 billion gallons 
                                        of renewable fuels; bears to
                                            ``(bb) the number of 
                                        gallons of gasoline sold or 
                                        introduced into commerce in 
                                        calendar year 2012.
            ``(3) Applicable percentages.--Not later than October 31 of 
        each calendar year, through 2011, the Administrator of the 
        Energy Information Administration shall provide the 
        Administrator an estimate of the volumes of gasoline sales in 
        the United States for the coming calendar year. Based on such 
        estimates, the Administrator shall by November 30 of each 
        calendar year, through 2011, determine and publish in the 
        Federal Register, the renewable fuel obligation, on a volume 
        percentage of gasoline basis, applicable to refiners, blenders, 
        distributors and importers, as appropriate, for the coming 
        calendar year, to ensure that the requirements of paragraph (2) 
        are met. For each calendar year, the Administrator shall 
        establish a single applicable percentage that applies to all 
        parties, and make provision to avoid redundant obligations. In 
        determining the applicable percentages, the Administrator shall 
        make adjustments to account for the use of renewable fuels by 
        exempt small refiners during the previous year.
            ``(4) Cellulosic biomass ethanol.--For the purpose of 
        paragraph (2), 1 gallon of cellulosic biomass ethanol shall be 
        considered to be the equivalent of 1.5 gallon of renewable 
        fuel.
            ``(5) Credit program.--
                    ``(A) In general.--The regulations promulgated to 
                carry out this subsection shall provide for the 
                generation of an appropriate amount of credits by any 
                person that refines, blends, distributes or imports 
                gasoline that contains a quantity of renewable fuel 
                that is greater than the quantity required under 
                paragraph (2). Such regulations shall provide for the 
                generation of an appropriate amount of credits for 
                biodiesel fuel. If a small refinery notifies the 
                Administrator that it waives the exemption provided by 
                this Act, the regulations shall provide for the 
                generation of credits by the small refinery beginning 
                in the year following such notification.
                    ``(B) Use of credits.--A person that generates 
                credits under subparagraph (A) may use the credits, or 
                transfer all or a portion of the credits to another 
                person, for the purpose of complying with paragraph 
                (2).
                    ``(C) Life of credits.--A credit generated under 
                this paragraph shall be valid to show compliance:
                            (i) in the calendar year in which the 
                        credit was generated or the next calendar year, 
                        or
                            (ii) in the calendar year in which the 
                        credit was generated or next two consecutive 
                        calendar years if the Administrator promulgates 
                        regulations under paragraph (6).
                    ``(D) Inability to purchase sufficient credits.--
                The regulations promulgated to carry out this 
                subsection shall include provisions allowing any person 
                that is unable to generate or purchase sufficient 
                credits to meet the requirements under paragraph (2) to 
                carry forward a renewables deficit provided that, in 
                the calendar year following the year in which the 
                renewables deficit is created, such person shall 
                achieve compliance with the renewables requirement 
                under paragraph (2), and shall generate or purchase 
                additional renewables credits to offset the renewables 
                deficit of the previous year.
            ``(6) Seasonal variations in renewable fuel use.--
                    ``(A) Study.--For each of calendar years 2004 
                through 2012, the Administrator of the Energy 
                Information Administration, shall conduct a study of 
                renewable fuels blending to determine whether there are 
                excessive seasonal variations in the use of renewable 
                fuels.
                    ``(B) Regulation of excessive seasonal 
                variations.--If, for any calendar year, the 
                Administrator of the Energy Information Administration, 
                based on the study under subparagraph (A), makes the 
                determinations specified in subparagraph (C), the 
                Administrator shall promulgate regulations to ensure 
                that 35 percent or more of the quantity of renewable 
                fuels necessary to meet the requirement of paragraph 
                (2) is used during each of the periods specified in 
                subparagraph (D) of each subsequent calendar year.
                    ``(C) Determinations.--The determinations referred 
                to in subparagraph (B) are that--
                            ``(i) less than 35 percent of the quantity 
                        of renewable fuels necessary to meet the 
                        requirement of paragraph (2) has been used 
                        during 1 of the periods specified in 
                        subparagraph (D) of the calendar year; and
                            ``(ii) a pattern of excessive seasonal 
                        variation described in clause (i) will continue 
                        in subsequent calendar years.
                    ``(D) Periods.--The two periods referred to in this 
                paragraph are--
                            ``(i) April through September; and
                            ``(ii) January through March and October 
                        through December.
                    ``(E) Exclusions.--Renewable fuels blended or 
                consumed in 2004 in a state which has received a waiver 
                under section 209(b) shall not be included in the study 
                in subparagraph (A).
            ``(7) Waivers.--
                    ``(A) In general.--The Administrator, in 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy, may waive the requirement of 
                paragraph (2) in whole or in part on petition by 1 or 
                more States by reducing the national quantity of 
                renewable fuel required under this subsection--
                            ``(i) based on a determination by the 
                        Administrator, after public notice and 
                        opportunity for comment, that implementation of 
                        the requirement would severely harm the economy 
                        or environment of a State, a region, or the 
                        United States; or
                            ``(ii) based on a determination by the 
                        Administrator, after public notice and 
                        opportunity for comment, that there is an 
                        inadequate domestic supply or distribution 
                        capacity to meet the requirement.
                    ``(B) Petitions for waivers.--The Administrator, in 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy--
                            ``(i) shall approve or deny a State 
                        petition for a waiver of the requirement of 
                        paragraph (2) within 180 days after the date on 
                        which the petition is received; but
                            ``(ii) may extend that period for up to 60 
                        additional days to provide for public notice 
                        and opportunity for comment and for 
                        consideration of the comments submitted.
                    ``(C) Termination of waivers.--A waiver granted 
                under subparagraph (A) shall terminate after 1 year, 
                but may be renewed by the Administrator after 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy.
            ``(8) Study and waiver for initial year of program.--Not 
        later than 180 days from enactment, the Secretary of Energy 
        shall complete for the Administrator a study assessing whether 
        the renewable fuels requirement under paragraph (2) will likely 
        result in significant adverse consumer impacts in 2004, on a 
        national, regional or state basis. Such study shall evaluate 
        renewable fuel supplies and prices, blendstock supplies, and 
        supply and distribution system capabilities. Based on such 
        study, the Secretary shall make specific recommendations to the 
        Administrator regarding waiver of the requirements of paragraph 
        (2), in whole or in part, to avoid any such adverse impacts. 
        Within 270 days from enactment, the Administrator shall, 
        consistent with the recommendations of the Secretary waive, in 
        whole or in part, the renewable fuels requirement under 
        paragraph (2) by reducing the national quantity of renewable 
        fuel required under this subsection in 2004. This provision 
        shall not be interpreted as limiting the Administrator's 
        authority to waive the requirements of paragraph (2) in whole, 
        or in part, under paragraph (7), pertaining to waivers.
            ``(9) Small refineries.--
                    ``(A) In general.--The requirement of paragraph (2) 
                shall not apply to small refineries until January 1, 
                2008. Not later than December 31, 2006, the Secretary 
                of Energy shall complete for the Administrator a study 
                to determine whether the requirement of paragraph (2) 
                would impose a disproportionate economic hardship on 
                small refineries. For any small refinery that the 
                Secretary of Energy determines would experience a 
                disproportionate economic hardship, the Administrator 
                shall extend the small refinery exemption for such 
                small refinery for no less than two additional years.
                    ``(B) Economic hardship.--
                            ``(i) A small refinery may at any time 
                        petition the Administrator for an extension of 
                        the exemption from the requirement of paragraph 
                        (2) for the reason of disproportionate economic 
                        hardship. In evaluating a hardship petition, 
                        the Administrator, in consultation with the 
                        Secretary of Energy, shall consider the 
                        findings of the study in addition to other 
                        economic factors.
                            ``(ii) Deadline for action on petitions.--
                        The Administrator shall act on any petition 
                        submitted by a small refinery for a hardship 
                        exemption not later than 90 days after the 
                        receipt of the petition.
                    ``(C) Credit program.--If a small refinery notifies 
                the Administrator that it waives the exemption provided 
                by this Act, the regulations shall provide for the 
                generation of credits by the small refinery beginning 
                in the year following such notification.
                    ``(D) Opt-in for small refiners.--A small refinery 
                shall be subject to the requirements of this section if 
                it notifies the Administrator that it waives the 
                exemption under subparagraph (A).
            ``(10) Study.--Not later than 180 days after the date of 
        enactment, the Secretary of Energy shall complete for the 
        Administrator a study assessing whether the renewable fuels 
        requirement under paragraph (2) will likely result in 
        significant adverse consumer impacts in 2004, on a national, 
        regional or state basis. Such study shall evaluate renewable 
        fuel supplies and prices, blendstock supplies, and supply and 
        distribution system capabilities. Based on such study, the 
        Secretary shall make specific recommendations to the 
        Administrator regarding waiver of the requirements of paragraph 
        (2), in whole or in part, to avoid any such adverse impacts. 
        Within 270 days after the date of enactment, the Administrator 
        shall, consistent with the recommendations of the Secretary 
        waive, in whole or in part, the renewable fuels requirement 
        under paragraph (2) by reducing the national quantity of 
        renewable fuel required under this subsection in 2004. This 
        provision shall not be interpreted as limiting the 
        Administrator's authority to waive the requirements of 
        paragraph (2) in whole, or in part, under paragraph (7), 
        pertaining to waivers.''.
    (b) Penalties and Enforcement.--Section 211(d) of the Clean Air Act 
(42 U.S.C. 7545(d)) is amended--
            (1) in paragraph (1)--
                    (A) in the first sentence, by striking ``or (n)'' 
                each place it appears and inserting ``(n) or (o)''; and
                    (B) in the second sentence, by striking ``or (m)'' 
                and inserting ``(m), or (o)''; and
            (2) in the first sentence of paragraph (2), by striking 
        ``and (n)'' each place it appears and inserting ``(n), and 
        (o)''.
    (c) Exclusion From Ethanol Waiver.--Section 211(h) of the Clean Air 
Act (42 U.S.C. 7545(h)) is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following:
        ``(5) Exclusion from ethanol waiver.--
                    ``(A) Promulgation of regulations.--Upon 
                notification, accompanied by supporting documentation, 
                from the Governor of a State that the Reid vapor 
                pressure limitation established by paragraph (4) will 
                increase emissions that contribute to air pollution in 
                any area in the State, the Administrator shall, by 
                regulation, apply, in lieu of the Reid vapor pressure 
                limitation established by paragraph (4), the Reid vapor 
                pressure limitation established by paragraph (1) to all 
                fuel blends containing gasoline and 10 percent 
                denatured anhydrous ethanol that are sold, offered for 
                sale, dispensed, supplied, offered for supply, 
                transported or introduced into commerce in the area 
                during the high ozone season.
                    ``(B) Deadline for promulgation.--The Administrator 
                shall promulgate regulations under subparagraph (A) not 
                later than 90 days after the date of receipt of a 
                notification from a Governor under that subparagraph.
                    ``(C) Effective date.--
                            ``(i) In general.--With respect to an area 
                        in a State for which the Governor submits a 
                        notification under subparagraph (A), the 
                        regulations under that subparagraph shall take 
                        effect on the later of--
                                    ``(I) the first day of the first 
                                high ozone season for the area that 
                                begins after the date of receipt of the 
                                notification; or
                                    ``(II) 1 year after the date of 
                                receipt of the notification.
                            ``(ii) Extension of effective date based on 
                        determination of insufficient supply.--
                                    ``(I) In general.--If, after 
                                receipt of a notification with respect 
                                to an area from a Governor of a State 
                                under subparagraph (A), the 
                                Administrator determines, on the 
                                Administrator's own motion or on 
                                petition of any person and after 
                                consultation with the Secretary of 
                                Energy, that the promulgation of 
                                regulations described in subparagraph 
                                (A) would result in an insufficient 
                                supply of gasoline in the State, the 
                                Administrator, by regulation--
                                            ``(aa) shall extend the 
                                        effective date of the 
                                        regulations under clause (i) 
                                        with respect to the area for 
                                        not more than 1 year; and
                                            ``(bb) may renew the 
                                        extension under item (aa) for 2 
                                        additional periods, each of 
                                        which shall not exceed 1 year.
                                    ``(II) Deadline for action on 
                                petitions.--The Administrator shall act 
                                on any petition submitted under 
                                subclause (I) not later than 180 days 
                                after the date of receipt of the 
                                petition.''.
    (d) Survey of Renewable Fuel Market.--
            (1) Survey and report.--Not later than December 1, 2005, 
        and annually thereafter, the Administrator shall--
                    (A) conduct, with respect to each conventional 
                gasoline use area and each reformulated gasoline use 
                area in each State, a survey to determine the market 
                shares of--
                            (i) conventional gasoline containing 
                        ethanol;
                            (ii) reformulated gasoline containing 
                        ethanol;
                        (iii) conventional gasoline containing 
                        renewable fuel; and
                            (iv) reformulated gasoline containing 
                        renewable fuel; and
                    (B) submit to Congress, and make publicly 
                available, a report on the results of the survey under 
                subparagraph (A).
            (2) Recordkeeping and reporting requirements.--The 
        Administrator may require any refiner, blender, importer, or 
        distributor to keep such records and make such reports as are 
        necessary to ensure that the survey conducted under paragraph 
        (1) is accurate. The Administrator shall rely, to the extent 
        practicable, on existing reporting and recordkeeping 
        requirements to avoid duplicative requirements.
            (3) Applicable law.--Activities carried out under this 
        subsection shall be conducted in a manner designed to protect 
        confidentiality of individual responses.
    (e) Renewable Fuels Safe Harbor.--
            (1) In general.--Notwithstanding any other provision of 
        federal or state law, no renewable fuel, as defined by this 
        Act, used or intended to be used as a motor vehicle fuel, nor 
        any motor vehicle fuel containing such renewable fuel, shall be 
        deemed defective in design or manufacture by virtue of the fact 
        that it is, or contains, such a renewable fuel, if it does not 
        violate a control or prohibition imposed by the Administrator 
        under section 211 of the Clean Air Act, as amended by this Act, 
        and the manufacturer is in compliance with all requests for 
        information under section 211(b) of the Clean Air Act, as 
        amended by this Act. In the event that the safe harbor under 
        this section does not apply, the existence of a design defect 
        or manufacturing defect shall be determined under otherwise 
        applicable law.
            (2) Effective date.--This section shall be effective as of 
        the date of enactment and shall apply with respect to all 
        claims filed on or after that date.

            Subtitle C--Additional Fuel Efficiency Measures

SEC. 821. FUEL EFFICIENCY 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. 822. ASSISTANCE FOR STATE PROGRAMS TO RETIRE FUEL-INEFFICIENT 
              MOTOR VEHICLES.

    (a) Establishment.--The Secretary shall establish a program, to be 
known as the ``National Motor Vehicle Efficiency Improvement Program.'' 
Under this program, the Secretary shall provide grants to States to 
operate programs to offer owners of passenger automobiles and light-
duty trucks manufactured in model years more than 15 years prior to the 
fiscal year in which appropriations are made under subsection (d) 
financial incentives to voluntarily--
            (1) scrap such automobiles and to replace them with 
        automobiles with higher fuel efficiency; or
            (2) repair such vehicles to improve their fuel economy.
    (b) State Plan.--Not later than 180 days after the date of 
enactment of an appropriations act containing funds authorized under 
subsection (d), to be eligible to receive funds under the program, the 
Governor of a State shall submit to the Secretary a plan to carry out a 
program under this subtitle in that State.
    (c) Eligibility Criteria.--The Secretary shall approve a State plan 
and provide the funds under subsection (d), if the State plan--
            (1) for voluntary vehicle scrappage programs--
                    (A) requires that all passenger automobiles and 
                light-duty trucks turned in be scrapped;
                    (B) requires that prior to scrapping a vehicle, the 
                state provide public notification of the intent to 
                scrap and allow for the salvage of valuable parts from 
                the vehicle;
                    (C) requires that all passenger automobiles and 
                light-duty trucks turned in be currently registered in 
                the State in order to be eligible;
                    (D) requires that all passenger automobiles and 
                light-duty trucks turned in be operational at the time 
                that they are turned in;
                    (E) restricts automobile owners (except not-for-
                profit organizations) from turning in more than one 
                passenger automobile and one light-duty truck in a 12-
                month period;
                    (F) provides an appropriate payment to the person 
                recycling the scrapped passenger automobile or light-
                duty truck for each turned-in passenger automobile or 
                light-duty truck;
                    (G) provides a minimum payment to the automobile 
                owner for each passenger automobile and light-duty 
                truck turned in;
                    (H) provides, in addition to the payment under 
                subparagraph (G), an additional credit that may be 
                redeemed by the owner of the turned-in passenger 
                automobile or light-duty truck at the time of purchase 
                of new fuel-efficient automobile; and
                    (I) estimates the fuel efficiency benefits of the 
                program, and reports the estimated results to the 
                Secretary annually; and
            (2) for voluntary vehicle repair programs--
                    (A) requires the vehicle owner contribute at least 
                20 percent of the cost of the repairs;
                    (B) sets a ceiling beyond which the vehicle owner 
                is responsible for the cost of repairs;
                    (C) allows the vehicle owner to opt out of the 
                program if the cost of the repairs is considered to be 
                too great; and
                    (D) estimates the fuel economy benefits of the 
                program and reports the estimated results to the 
                Secretary annually.
    (d) Authorization of Appropriations.--There are hereby authorized 
to be appropriated to the Secretary to carry out this section such sums 
as may be necessary, to remain available until expended.
    (e) Allocation Formula.--The amounts appropriated pursuant to 
subsection (d) shall be allocated among the States on the basis of the 
population of the States as contained in the most recent reliable 
census data available from the Bureau of the Census, Department of 
Commerce, for all States at the time that the Secretary needs to 
compute shares under this subsection.
    (f) Definitions.--In this section:
            (1) Automobile.--The term ``automobile'' has the meaning 
        given such term in section 32901(3) of title 49, United States 
        Code.
            (2) Fuel-efficient automobile.--
                    (A) The term ``fuel-efficient automobile'' means a 
                passenger automobile or a light-duty truck that has an 
                average fuel economy greater than the average fuel 
                economy standard prescribed pursuant to section 32902 
                of title 49, United States Code, or other law, 
                applicable to such passenger automobile or light-duty 
                truck.
                    (B) The term ``average fuel economy'' has the 
                meaning given such term in section 32901(5) of title 
                49, United States Code.
                    (C) The term ``average fuel economy standard'' has 
                the meaning given such term in section 32901(6) of 
                title 49, United States Code.
                    (D) The term ``fuel economy'' has the meaning given 
                such term in section 32901(10) of title 49, United 
                States Code.
            (3) Light-duty truck.--The term ``light-duty truck'' means 
        an automobile that is not a passenger automobile. Such term 
        shall include a pickup truck, a van, or a four-wheel-drive 
        general utility vehicle, as those terms are defined in section 
        600.002-85 of title 40, Code of Federal Regulations.
            (4) Passenger automobile.--The term ``passenger 
        automobile'' has the meaning given such term by section 
        32901(16) of title 49, United States Code.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (6) State.--The term ``State'' means any of the several 
        States and the District of Columbia.

SEC. 823. IDLING REDUCTION SYSTEMS IN HEAVY DUTY VEHICLES.

    Title III of the Energy Policy and Conservation Act (42 U.S.C. 6291 
et seq.) is amended by adding at the end the following:

                    ``part k--reducing truck idling

``SEC. 400AAA. REDUCING TRUCK IDLING.

    ``(a) Study.--Not later than 18 months after the date of enactment 
of this section, the Secretary shall, in consultation with the 
Secretary of Transportation, commence a study to analyze the potential 
fuel savings resulting from long duration idling of main drive engines 
in heavy-duty vehicles.
    ``(b) Regulations.--Upon completion of the study under subsection 
(a), the Secretary may issue regulations requiring the installation of 
idling reduction systems on all newly manufactured heavy duty vehicles.
    ``(c) Definitions.--As used in this section:
            ``(1) The term `heavy-duty vehicle' means a vehicle that 
        has a gross vehicle weight rating greater than 8,500 pounds and 
        is powered by a diesel engine.
            ``(2) The term `idling reduction system' means a device or 
        system of devices used to reduce long duration idling of a 
        diesel engine in a vehicle.
            ``(3) The term `long duration idling' means the operation 
        of a main drive engine of a heavy-duty vehicle for a period of 
        more than 15 consecutive minutes when the main drive engine is 
        not engaged in gear, except that such term does not include 
        idling as a result of traffic congestion or other impediments 
        to the movement of a heavy-duty vehicle.
            ``(4) The term `vehicle' has the meaning given such term in 
        section 4 of title 1, United States Code.''.

                 Subtitle D--Federal Reformulated Fuels

SEC. 831. SHORT TITLE.

    This subtitle may be cited as the ``Federal Reformulated Fuels Act 
of 2002''.

SEC. 832. LEAKING UNDERGROUND STORAGE TANKS.

    (a) Use of Lust Funds for Remediation of Contamination From Ether 
Fuel Additives.--Section 9003(h) of the Solid Waste Disposal Act (42 
U.S.C. 6991b(h)) is amended--
            (1) in paragraph (7)(A)--
                    (A) by striking ``paragraphs (1) and (2) of this 
                subsection'' and inserting ``paragraphs (1), (2), and 
                (12)''; and
                    (B) by inserting ``and section 9010'' before 
                ``if''; and
            (2) by adding at the end the following:
            ``(12) Remediation of contamination from ether fuel 
        additives.--
                    ``(A) In general.--The Administrator and the States 
                may use funds made available under section 9013(1) to 
                carry out corrective actions with respect to a release 
                of methyl tertiary butyl ether or other ether fuel 
                additive that presents a threat to human health, 
                welfare, or the environment.
                    ``(B) Applicable authority.--Subparagraph (A) shall 
                be carried out--
                            ``(i) in accordance with paragraph (2), 
                        except that a release with respect to which a 
                        corrective action is carried out under 
                        subparagraph (A) shall not be required to be 
                        from an underground storage tank; and
                            ``(ii) in the case of a State, in 
                        accordance with a cooperative agreement entered 
                        into by the Administrator and the State under 
                        paragraph (7).''.
    (b) Release Prevention and Compliance.--Subtitle I of the Solid 
Waste Disposal Act (42 U.S.C. 6991 et seq.) is amended by striking 
section 9010 and inserting the following:

``SEC. 9010. RELEASE PREVENTION AND COMPLIANCE.

    ``Funds made available under section 9013(2) from the Leaking 
Underground Storage Tank Trust Fund may be used for conducting 
inspections, or for issuing orders or bringing actions under this 
subtitle--
            ``(1) by a State (pursuant to section 9003(h)(7)) acting 
        under--
                    ``(A) a program approved under section 9004; or
                    ``(B) State requirements regulating underground 
                storage tanks that are similar or identical to this 
                subtitle, as determined by the Administrator; and
            ``(2) by the Administrator, acting under this subtitle or a 
        State program approved under section 9004.

``SEC. 9011. BEDROCK BIOREMEDIATION.

    ``The Administrator shall establish, at an institution of higher 
education (as defined in section 101 of the Higher Education Act of 
1965 (20 U.S.C. 1001)) with established expertise in bioremediation of 
contaminated bedrock aquifers, a resource center--
            ``(1) to conduct research concerning bioremediation of 
        methyl tertiary butyl ether in contaminated underground 
        aquifers, including contaminated bedrock; and
            ``(2) to provide for States a technical assistance 
        clearinghouse for information concerning innovative 
        technologies for bioremediation described in paragraph (1).

``SEC. 9012. SOIL REMEDIATION.

    ``The Administrator may establish a program to conduct research 
concerning remediation of methyl tertiary butyl ether contamination of 
soil, including granitic or volcanic soil.

``SEC. 9013. AUTHORIZATION OF APPROPRIATIONS.

    ``In addition to amounts made available under section 2007(f), 
there are authorized to be appropriated from the Leaking Underground 
Storage Tank Trust Fund, notwithstanding section 9508(c)(1) of the 
Internal Revenue Code of 1986--
            ``(1) to carry out section 9003(h)(12), $200,000,000 for 
        fiscal year 2003, to remain available until expended;
            ``(2) to carry out section 9010--
                    ``(A) $50,000,000 for fiscal year 2003; and
                    ``(B) $30,000,000 for each of fiscal years 2004 
                through 2008;
            ``(3) to carry out section 9011--
                    ``(A) $500,000 for fiscal year 2003; and
                    ``(B) $300,000 for each of fiscal years 2004 
                through 2008; and
            ``(4) to carry out section 9012--
                    ``(A) $100,000 for fiscal year 2003; and
                    ``(B) $50,000 for each of fiscal years 2004 through 
                2008.
    (c) Technical Amendments.--
            (1) Section 1001 of the Solid Waste Disposal Act (42 U.S.C. 
        prec. 6901) is amended by striking the item relating to section 
        9010 and inserting the following:

``Sec. 9010. Release prevention and compliance.
``Sec. 9011. Bedrock bioremediation.
``Sec. 9012. Soil remediation.
``Sec. 9013. Authorization of appropriations.''.
            (2) Section 9001(3)(A) of the Solid Waste Disposal Act (42 
        U.S.C. 6991(3)(A)) is amended by striking ``sustances'' and 
        inserting ``substances''.
            (3) Section 9003(f)(1) of the Solid Waste Disposal Act (42 
        U.S.C. 6991b(f)(1)) is amended by striking ``subsection (c) and 
        (d) of this section'' and inserting ``subsections (c) and 
        (d)''.
            (4) Section 9004(a) of the Solid Waste Disposal Act (42 
        U.S.C. 6991c(a)) is amended in the second sentence by striking 
        ``referred to'' and all that follows and inserting ``referred 
        to in subparagraph (A) or (B), or both, of section 9001(2).''.
            (5) Section 9005 of the Solid Waste Disposal Act (42 U.S.C. 
        6991d) is amended--
                    (A) in subsection (a), by striking ``study taking'' 
                and inserting ``study, taking'';
                    (B) in subsection (b)(1), by striking ``relevent'' 
                and inserting ``relevant''; and
                    (C) in subsection (b)(4), by striking 
                ``Evironmental'' and inserting ``Environmental''.

SEC. 833. AUTHORITY FOR WATER QUALITY PROTECTION FROM FUELS.

    (a) Findings.--Congress finds that--
            (1) since 1979, methyl tertiary butyl ether (referred to in 
        this section as ``MTBE'') has been used nationwide at low 
        levels in gasoline to replace lead as an octane booster or 
        anti-knocking agent;
            (2) Public Law 101-549 (commonly known as the ``Clean Air 
        Act Amendments of 1990'') (42 U.S.C. 7401 et seq.) established 
        a fuel oxygenate standard under which reformulated gasoline 
        must contain at least 2 percent oxygen by weight;
            (3) at the time of the adoption of the fuel oxygen 
        standard, Congress was aware that significant use of MTBE could 
        result from the adoption of that standard, and that the use of 
        MTBE would likely be important to the cost-effective 
        implementation of that program;
            (4) Congress is aware that gasoline and its component 
        additives have leaked from storage tanks, with consequences for 
        water quality;
            (5) the fuel industry responded to the fuel oxygenate 
        standard established by Public Law 101-549 by making 
        substantial investments in--
                    (A) MTBE production capacity; and
                    (B) systems to deliver MTBE-containing gasoline to 
                the marketplace;
            (6) when leaked or spilled into the environment, MTBE may 
        cause serious problems of drinking water quality;
            (7) in recent years, MTBE has been detected in water 
        sources throughout the United States;
            (8) MTBE can be detected by smell and taste at low 
        concentrations;
            (9) while small quantities of MTBE can render water 
        supplies unpalatable, the precise human health effects of MTBE 
        consumption at low levels are yet unknown;
            (10) in the report entitled ``Achieving Clean Air and Clean 
        Water: The Report of the Blue Ribbon Panel on Oxygenates in 
        Gasoline'' and dated September 1999, Congress was urged--
                    (A) to eliminate the fuel oxygenate standard;
                    (B) to greatly reduce use of MTBE; and
                    (C) to maintain the environmental performance of 
                reformulated gasoline;
            (11) Congress has--
                    (A) reconsidered the relative value of MTBE in 
                gasoline; and
                    (B) decided to eliminate use of MTBE as a fuel 
                additive;
            (12) the timeline for elimination of use of MTBE as a fuel 
        additive must be established in a manner that achieves an 
        appropriate balance among the goals of--
                    (A) environmental protection;
                    (B) adequate energy supply; and
                    (C) reasonable fuel prices; and
            (13) it is appropriate for Congress to provide some limited 
        transition assistance--
                    (A) to merchant producers of MTBE who produced MTBE 
                in response to a market created by the oxygenate 
                requirement contained in the Clean Air Act; and
                    (B) for the purpose of mitigating any fuel supply 
                problems that may result from elimination of a widely-
                used fuel additive.
    (b) Purposes.--The purposes of this section are--
            (1) to eliminate use of MTBE as a fuel oxygenate; and
            (2) to provide assistance to merchant producers of MTBE in 
        making the transition from producing MTBE to producing other 
        fuel additives.
    (c) Authority for Water Quality Protection From Fuels.--Section 
211(c) of the Clean Air Act (42 U.S.C. 7545(c)) is amended--
            (1) in paragraph (1)(A)--
                    (A) by inserting ``fuel or fuel additive or'' after 
                ``Administrator any''; and
                    (B) by striking ``air pollution which'' and 
                inserting ``air pollution, or water pollution, that'';
            (2) in paragraph (4)(B), by inserting ``or water quality 
        protection,'' after ``emission control,''; and
            (3) by adding at the end the following:
            ``(5) Prohibition on use of mtbe.--
                    ``(A) In general.--Subject to subparagraph (E), not 
                later than 4 years after the date of enactment of this 
                paragraph, the use of methyl tertiary butyl ether in 
                motor vehicle fuel in any State other than a State 
                described in subparagraph (C) is prohibited.
                    ``(B) Regulations.--The Administrator shall 
                promulgate regulations to effect the prohibition in 
                subparagraph (A).
                    ``(C) States that authorize use.--A State described 
                in this subparagraph is a State that submits to the 
                Administrator a notice that the State authorizes use of 
                methyl tertiary butyl ether in motor vehicle fuel sold 
                or used in the State.
                    ``(D) Publication of notice.--The Administrator 
                shall publish in the Federal Register each notice 
                submitted by a State under subparagraph (B).
                    ``(E) Trace quantities.--In carrying out 
                subparagraph (A), the Administrator may allow trace 
                quantities of methyl tertiary butyl ether, not to 
                exceed 0.5 percent by volume, to be present in motor 
                vehicle fuel in cases that the Administrator determines 
                to be appropriate.
            ``(6) MTBE merchant producer conversion assistance.--
                    ``(A) In general.--
                            ``(i) Grants.--The Secretary of Energy, in 
                        consultation with the Administrator, may make 
                        grants to merchant producers of methyl tertiary 
                        butyl ether in the United States to assist the 
                        producers in the conversion of eligible 
                        production facilities described in subparagraph 
                        (C) to the production of iso-octane and 
                        alkylates.
                            ``(ii) Determination.--The Administrator, 
                        in consultation with the Secretary of Energy, 
                        may determine that transition assistance for 
                        the production of iso-octane and alkylates is 
                        inconsistent with the provisions of 
                        subparagraph (B) and, on that basis, may deny 
                        applications for grants authorized by this 
                        provision.
                    ``(B) The Secretary of Energy, in consultation with 
                the Administrator, may also further make grants to 
                merchant producers of MTBE in the United States to 
                assist the producers in the conversion of eligible 
                production facilities described in subparagraph (C) to 
                the production of such other fuel additives that, 
                consistent with 211(c)--
                            ``(i) unless the Administrator determines 
                        that such fuel additives may reasonably be 
                        anticipated to endanger public health or the 
                        environment;
                            ``(ii) have been registered and have been 
                        tested or are being tested in accordance with 
                        the requirements of this section; and
                            ``(iii) will contribute to replacing 
                        gasoline volumes lost as a result of paragraph 
                        (5).
                    ``(C) Eligible production facilities.--A production 
                facility shall be eligible to receive a grant under 
                this paragraph if the production facility--
                            ``(i) is located in the United States; and
                            ``(ii) produced methyl tertiary butyl ether 
                        for consumption in nonattainment areas during 
                        the period--
                                    ``(I) beginning on the date of 
                                enactment of this paragraph; and
                                    ``(II) ending on the effective date 
                                of the prohibition on the use of methyl 
                                tertiary butyl ether under paragraph 
                                (5).
                    ``(D) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $250,000,000 for each of fiscal years 2003 
                through 2005.''.
    (d) No Effect on Law Concerning State Authority.--The amendments 
made by subsection (c) have no effect on the law in effect on the day 
before the date of enactment of this Act regarding the authority of 
States to limit the use of methyl tertiary butyl ether in motor vehicle 
fuel.

SEC. 834. ELIMINATION OF OXYGEN CONTENT REQUIREMENT FOR REFORMULATED 
              GASOLINE.

    (a) Elimination.--
            (1) In general.--Section 211(k) of the Clean Air Act (42 
        U.S.C. 7545(k)) is amended--
                    (A) in paragraph (2)--
                            (i) in the second sentence of subparagraph 
                        (A), by striking ``(including the oxygen 
                        content requirement contained in subparagraph 
                        (B))'';
                            (ii) by striking subparagraph (B); and
                            (iii) by redesignating subparagraphs (C) 
                        and (D) as subparagraphs (B) and (C), 
                        respectively;
                    (B) in paragraph (3)(A), by striking clause (v);
                    (C) in paragraph (7)--
                            (i) in subparagraph (A)--
                                    (I) by striking clause (i); and
                                    (II) by redesignating clauses (ii) 
                                and (iii) as clauses (i) and (ii), 
                                respectively; and
                            (ii) in subparagraph (C)--
                                    (I) by striking clause (ii); and
                                    (II) by redesignating clause (iii) 
                                as clause (ii); and
            (2) Effective date.--The amendments made by paragraph (1) 
        take effect 270 days after the date of enactment of this Act, 
        except that such amendments shall take effect upon enactment in 
        any State that has received a waiver under section 209(b) of 
        the Clean Air Act.
    (b) Maintenance of Toxic Air Pollutant Emission Reductions.--
Section 211(k)(1) of the Clean Air Act (42 U.S.C. 7545(k)(1)) is 
amended--
            (1) by striking ``Within 1 year after the enactment of the 
        Clean Air Act Amendments of 1990,'' and inserting the 
        following:
                    ``(A) In general.--Not later than November 15, 
                1991,''; and
            (2) by adding at the end the following:
                    ``(B) Maintenance of toxic air pollutant emissions 
                reductions from reformulated gasoline.--
                            ``(i) Definitions.--In this subparagraph:
                                    ``(I) PADD.--The term `PADD' means 
                                a Petroleum Administration for Defense 
                                District.
                            ``(ii) Regulations regarding emissions of 
                        toxic air pollutants.--Not later than 270 days 
                        after the date of enactment of this 
                        subparagraph, the Administrator shall 
                        establish, for each refinery or importer (other 
                        than a refinery or importer in a State that has 
                        received a waiver under section 209(b) with 
                        regard to gasoline produced for use in that 
                        state), standards for toxic air pollutants from 
                        use of the reformulated gasoline produced or 
                        distributed by the refinery or importer that 
                        maintain the reduction of the average annual 
                        aggregate emissions of toxic air pollutants for 
                        reformulated gasoline produced or distributed 
                        by the refinery or importer during calendar 
                        years 1999 and 2000, determined on the basis of 
                        data collected by the Administrator with 
                        respect to the refinery or importer.
                            (iii) Standards applicable to specific 
                        refineries or importers.--
                                    ``(I) Applicability of standards.--
                                For any calendar year, the standards 
                                applicable to a refinery or importer 
                                under clause (ii) shall apply to the 
                                quantity of gasoline produced or 
                                distributed by the refinery or importer 
                                in the calendar year only to the extent 
                                that the quantity is less than or equal 
                                to the average annual quantity of 
                                reformulated gasoline produced or 
                                distributed by the refinery or importer 
                                during calendar years 1999 and 2000.
                                    ``(II) Applicability of other 
                                standards.--For any calendar year, the 
                                quantity of gasoline produced or 
                                distributed by a refinery or importer 
                                that is in excess of the quantity 
                                subject to subclause (I) shall be 
                                subject to standards for toxic air 
                                pollutants promulgated under 
                                subparagraph (A) and paragraph (3)(B).
                            ``(iv) Credit program.--The Administrator 
                        shall provide for the granting and use of 
                        credits for emissions of toxic air pollutants 
                        in the same manner as provided in paragraph 
                        (7).
                            ``(v) Regional protection of toxics 
                        reduction baselines.--
                                    ``(I) In general.--Not later than 
                                60 days after the date of enactment of 
                                this subparagraph, and not later than 
                                April 1 of each calendar year that 
                                begins after that date of enactment, 
                                the Administrator shall publish in the 
                                Federal Register a report that 
                                specifies, with respect to the previous 
                                calendar year--
                                            ``(aa) the quantity of 
                                        reformulated gasoline produced 
                                        that is in excess of the 
                                        average annual quantity of 
                                        reformulated gasoline produced 
                                        in 1999 and 2000; and
                                            ``(bb) the reduction of the 
                                        average annual aggregate 
                                        emissions of toxic air 
                                        pollutants in each PADD, based 
                                        on retail survey data or data 
                                        from other appropriate sources.
                                    ``(II) Effect of failure to 
                                maintain aggregate toxics reductions.--
                                If, in any calendar year, the reduction 
                                of the average annual aggregate 
                                emissions of toxic air pollutants in a 
                                PADD fails to meet or exceed the 
                                reduction of the average annual 
                                aggregate emissions of toxic air 
                                pollutants in the PADD in calendar 
                                years 1999 and 2000, the Administrator, 
                                not later than 90 days after the date 
                                of publication of the report for the 
                                calendar year under subclause (I), 
                                shall
                                            ``(aa) identify, to the 
                                        maximum extent practicable, the 
                                        reasons for the failure, 
                                        including the sources, volumes, 
                                        and characteristics of 
                                        reformulated gasoline that 
                                        contributed to the failure; and
                                            ``(bb) promulgate revisions 
                                        to the regulations promulgated 
                                        under clause (ii), to take 
                                        effect not earlier than 180 
                                        days but not later than 270 
                                        days after the date of 
                                        promulgation, to provide that, 
                                        notwithstanding clause 
                                        (iii)(II), all reformulated 
                                        gasoline produced or 
                                        distributed at each refinery or 
                                        importer shall meet the 
                                        standards applicable under 
                                        clause (iii) not later than 
                                        April 1 of the year following 
                                        the report in subclause (II) 
                                        and for subsequent years.
                            ``(vi) Regulations to control hazardous air 
                        pollutants from motor vehicles and motor 
                        vehicle fuels.--Not later than July 1, 2004, 
                        the Administrator shall promulgate final 
                        regulations to control hazardous air pollutants 
                        from motor vehicles and motor vehicle fuels, as 
                        provided for in section 80.1045 of title 40, 
                        Code of Federal Regulations (as in effect on 
                        the date of enactment of this subparagraph).''.
    (c) Consolidation in Reformulated Gasoline Regulations.--Not later 
than 180 days after the date of enactment of this Act, the 
Administrator shall revise the reformulated gasoline regulations under 
subpart D of part 80 of title 40, Code of Federal Regulations, to 
consolidate the regulations applicable to VOC-Control Regions 1 and 2 
under section 80.41 of that title by eliminating the less stringent 
requirements applicable to gasoline designated for VOC-Control Region 2 
and instead applying the more stringent requirements applicable to 
gasoline designated for VOC-Control Region 1.
    (d) Savings Clause.--Nothing in this section is intended to affect 
or prejudice any legal claims or actions with respect to regulations 
promulgated by the Administrator prior to enactment of this Act 
regarding emissions of toxic air pollutants from motor vehicles.
    (e) Determination Regarding a State Petition.--Section 211(k) of 
the Clean Air Act (42 U.S.C. 7545(k)) is amended by inserting after 
paragraph (10) the following:
            ``(11) Determination regarding a state petition.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this section, not less than thirty days 
                after enactment of this paragraph the Administrator 
                must determine the adequacy of any petition received 
                from a Governor of a State to exempt gasoline sold in 
                that State from the requirements of (k)(2)(B).
                    ``(B) If the determination in (A) is not made 
                within thirty days of enactment of this paragraph, the 
                petition shall be deemed approved.''.

SEC. 835. PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS OF FUELS AND FUEL 
              ADDITIVES.

    Section 211(b) of the Clean Air Act (42 U.S.C. 7545(b)) is 
amended--
            (1) in paragraph (2)--
                    (A) by striking ``may also'' and inserting ``shall, 
                on a regular basis,''; and
            (B) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) to conduct tests to determine potential 
                public health and environmental effects of the fuel or 
                additive (including carcinogenic, teratogenic, or 
                mutagenic effects); and''; and
            (2) by adding at the end the following:
            ``(4) Study on certain fuel additives and blendstocks.--
                    ``(A) In general. Not later than 2 years after the 
                date of enactment of this paragraph, the Administrator 
                shall--
                            ``(i) conduct a study on the effects on 
                        public health, air quality, and water resources 
                        of increased use of, and the feasibility of 
                        using as substitutes for methyl tertiary butyl 
                        ether in gasoline--
                                    ``(I) ethyl tertiary butyl ether;
                                    ``(II) tertiary amyl methyl ether;
                                    ``(III) di-isopropyl ether;
                                    ``(IV) tertiary butyl alcohol;
                                    ``(V) other ethers and heavy 
                                alcohols, as determined by then 
                                Administrator;
                                    ``(VI) ethanol;
                                    ``(VII) iso-octane; and
                                    ``(VIII) alkylates; and
                            ``(ii) conduct a study on the effects on 
                        public health, air quality, and water resources 
                        of the adjustment for ethanol-blended 
                        reformulated gasoline to the VOC performance 
                        requirements otherwise applicable under 
                        sections 211(k)(1) and 211(k)(3) of the Clean 
                        Air Act.
                                    ``(iii) submit to the Committee on 
                                Environment and Public Works of the 
                                Senate and the Committee on Energy and 
                                Commerce of the House of 
                                Representatives a report describing the 
                                results of these studies.
                    ``(B) Contracts for study.--In carrying out this 
                paragraph, the Administrator may enter into 1 or more 
                contracts with nongovernmental entities including but 
                not limited to National Energy Laboratories and 
                institutions of higher education (as defined in section 
                101 of the Higher Education Act of 1965 (20 U.S.C. 
                1001)).''.

SEC. 836. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) (as amended by 
section 819(a)) is amended by inserting after subsection (o) the 
following:
    ``(p) Analyses of Motor Vehicle Fuel Changes and Emissions Model.--
            ``(1) Anti-backsliding analysis.--
                    ``(A) Draft analysis.--Not later than 4 years after 
                the date of enactment of this paragraph, the 
                Administrator shall publish for public comment a draft 
                analysis of the changes in emissions of air pollutants 
                and air quality due to the use of motor vehicle fuel 
                and fuel additives resulting from implementation of the 
                amendments made by the Federal Reformulated Fuels Act 
                of 2002.
                    ``(B) Final analysis.--After providing a reasonable 
                opportunity for comment but not later than 5 years 
                after the date of enactment of this paragraph, the 
                Administrator shall publish the analysis in final form.
            ``(2) Emissions model.--For the purposes of this 
        subsection, as soon as the necessary data are available, the 
        Administrator shall develop and finalize an emissions model 
        that reasonably reflects the effects of gasoline 
        characteristics or components on emissions from vehicles in the 
        motor vehicle fleet during calendar year 2005.''.

SEC. 837. ADDITIONAL OPT-IN AREAS UNDER REFORMULATED GASOLINE PROGRAM.

    Section 211(k)(6) of the Clean Air Act (42 U.S.C. 7545(k)(6)) is 
amended--
            (1) by striking ``(6) Opt-in areas.--(A) Upon'' and 
        inserting the following:
            ``(6) Opt-in areas.--
                    ``(A) Classified areas.--
                            ``(i) In general.--Upon'';
            (2) in subparagraph (B), by striking ``(B) If'' and 
        inserting the following:
                            ``(ii) Effect of insufficient domestic 
                        capacity to produce reformulated gasoline.--
                        If'';
            (3) in subparagraph (A)(ii) (as redesignated by paragraph 
        (2))--
                    (A) in the first sentence, by striking 
                ``subparagraph (A)'' and inserting ``clause (i)''; and
                    (B) in the second sentence, by striking ``this 
                paragraph'' and inserting ``this subparagraph''; and
            (4) by adding at the end the following:
                    ``(B) Ozone transport region.--
                            ``(i) Application of prohibition.--
                                    ``(I) In general.--In addition to 
                                the provisions of subparagraph (A), 
                                upon the application of the Governor of 
                                a State in the ozone transport region 
                                established by section 184(a), the 
                                Administrator, not later than 180 days 
                                after the date of receipt of the 
                                application, shall apply the 
                                prohibition specified in paragraph (5) 
                                to any area in the State (other than an 
                                area classified as a marginal, 
                                moderate, serious, or severe ozone 
                                nonattainment area under subpart 2 of 
                                part D of title I) unless the 
                                Administrator determines under clause 
                                (iii) that there is insufficient 
                                capacity to supply reformulated 
                                gasoline.
                                    ``(II) Publication of 
                                application.--As soon as practicable 
                                after the date of receipt of an 
                                application under subclause (I), the 
                                Administrator shall publish the 
                                application in the Federal Register.
                            ``(ii) Period of applicability.--Under 
                        clause (i), the prohibition specified in 
                        paragraph (5) shall apply in a State--
                                    ``(I) commencing as soon as 
                                practicable but not later than 2 years 
                                after the date of approval by the 
                                Administrator of the application of the 
                                Governor of the State; and
                                    ``(II) ending not earlier than 4 
                                years after the commencement date 
                                determined under subclause (I).
                            ``(iii) Extension of commencement date 
                        based on insufficient capacity.--
                                    ``(I) In general.--If, after 
                                receipt of an application from a 
                                Governor of a State under clause (i), 
                                the Administrator determines, on the 
                                Administrator's own motion or on 
                                petition of any person, after 
                                consultation with the Secretary of 
                                Energy, that there is insufficient 
                                capacity to supply reformulated 
                                gasoline, the Administrator, by 
                                regulation--
                                        ``(aa) shall extend the 
                                        commencement date with respect 
                                        to the State under clause 
                                        (ii)(I) for not more than 1 
                                        year; and
                                        ``(bb) may renew the extension 
                                        under item (aa) for 2 
                                        additional periods, each of 
                                        which shall not exceed 1 year.
                                    ``(II) Deadline for action on 
                                petitions.--The Administrator shall act 
                                on any petition submitted under 
                                subclause (I) not later than 180 days 
                                after the date of receipt of the 
                                petition.''.

SEC. 838. FEDERAL ENFORCEMENT OF STATE FUELS REQUIREMENTS.

    Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) 
is amended--
            (1) by striking ``(C) A State'' and inserting the 
        following:
                    ``(C) Authority of state to control fuels and fuel 
                additives for reasons of necessity.--
                            ``(i) In general.--A State''; and
            (2) by adding at the end the following:
                            ``(ii) Enforcement by the administrator.--
                        In any case in which a State prescribes and 
                        enforces a control or prohibition under clause 
                        (i), the Administrator, at the request of the 
                        State, shall enforce the control or prohibition 
                        as if the control or prohibition had been 
                        adopted under the other provisions of this 
                        section.''.

SEC. 839. FUEL SYSTEM REQUIREMENTS HARMONIZATION STUDY.

    (a) Study.--
            (1) In general.--The Administrator of the Environmental 
        Protection Agency and the Secretary of Energy shall jointly 
        conduct a study of Federal, State, and local requirements 
        concerning motor vehicle fuels, including--
                    (A) requirements relating to reformulated gasoline, 
                volatility (measured in Reid vapor pressure), 
                oxygenated fuel, and diesel fuel; and
                    (B) other requirements that vary from State to 
                State, region to region, or locality to locality.
            (2) Required elements.--The study shall assess--
                    (A) the effect of the variety of requirements 
                described in paragraph (1) on the supply, quality, and 
                price of motor vehicle fuels available to the consumer;
                    (B) the effect of the requirements described in 
                paragraph (1) on achievement of--
                            (i) national, regional, and local air 
                        quality standards and goals; and
                            (ii) related environmental and public 
                        health protection standards and goals;
                    (C) the effect of Federal, State, and local motor 
                vehicle fuel regulations, including multiple motor 
                vehicle fuel requirements, on--
                            (i) domestic refineries;
                            (ii) the fuel distribution system; and
                            (iii) industry investment in new capacity;
                    (D) the effect of the requirements described in 
                paragraph (1) on emissions from vehicles, refineries, 
                and fuel handling facilities;
                    (E) the feasibility of developing national or 
                regional motor vehicle fuel slates for the 48 
                contiguous States that, while protecting and improving 
                air quality at the national, regional, and local 
                levels, could--
                            (i) enhance flexibility in the fuel 
                        distribution infrastructure and improve fuel 
                        fungibility;
                            (ii) reduce price volatility and costs to 
                        consumers and producers;
                            (iii) provide increased liquidity to the 
                        gasoline market; and
                            (iv) enhance fuel quality, consistency, and 
                        supply; and
                    (F) the feasibility of providing incentives, and 
                the need for the development of national standards 
                necessary, to promote cleaner burning motor vehicle 
                fuel.
    (b) Report.--
            (1) In general.--Not later than June 1, 2006, the 
        Administrator of the Environmental Protection Agency and the 
        Secretary of Energy shall submit to Congress a report on the 
        results of the study conducted under subsection (a).
            (2) Recommendations.--
                    (A) In general.--The report shall contain 
                recommendations for legislative and administrative 
                actions that may be taken--
                            (i) to improve air quality;
                            (ii) to reduce costs to consumers and 
                        producers; and
                            (iii) to increase supply liquidity.
                    (B) Required considerations.--The recommendations 
                under subparagraph (A) shall take into account the need 
                to provide advance notice of required modifications to 
                refinery and fuel distribution systems in order to 
                ensure an adequate supply of motor vehicle fuel in all 
                States.
            (3) Consultation.--In developing the report, the 
        Administrator of the Environmental Protection Agency and the 
        Secretary of Energy shall consult with--
                    (A) the Governors of the States;
                    (B) automobile manufacturers;
                    (C) motor vehicle fuel producers and distributors; 
                and
                    (D) the public.

   TITLE IX--ENERGY EFFICIENCY AND ASSISTANCE TO LOW INCOME CONSUMERS

      Subtitle A--Low Income Assistance and State Energy Programs

SEC. 901. INCREASED FUNDING FOR LIHEAP, WEATHERIZATION ASSISTANCE, AND 
              STATE ENERGY GRANTS.

    (a) LIHEAP.--(1) 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 2003 through 
2005.''.
    (2) Section 2602(e) of the Low-Income Home Energy Assistance Act of 
1981 (42 U.S.C. 8621(e) is amended by striking ``$600,000,000'' and 
inserting ``$1,000,000,000''.
    (3) Section 2609A(a) of the Low-Income Energy Assistance Act of 
1981 (42 U.S.C. 8628a(a)) is amended by striking ``not more than 
$300,000'' and inserting: ``not more than $750,000''.
    (b) Weatherization Assistance.--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: ``$325,000,000 for fiscal year 2003, $400,000,000 for 
fiscal year 2004, and $500,000,000 for fiscal year 2005.''.

SEC. 902. 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 adding at 
the end the following:
    ``(g) The Secretary shall, at least once every three years, invite 
the Governor of each State to review and, if necessary, revise the 
energy conservation plan of the 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 
that may be carried out in pursuit of common energy conservation 
goals.''.
    (b) State Energy Conservation Goals.--Section 364 of the Energy 
Policy and Conservation Act (42 U.S.C. 6324) is amended to read as 
follows:
    ``Sec. 364. Each State energy conservation plan with respect to 
which assistance is made available under this part on or after the date 
of enactment of the Energy Policy Act of 2002 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 calendar year 2010 as compared 
to calendar year 1990, and may contain interim goals.''.
    (c) State Energy Conservation Grants.--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: ``$100,000,000 for each of fiscal years 2003 and 2004; 
$125,000,000 for fiscal year 2005; and such sums as may be necessary 
for each fiscal year thereafter.''.

SEC. 903. ENERGY EFFICIENT SCHOOLS.

    (a) Establishment.--There is established in the Department of 
Energy the High Performance Schools Program (in this section referred 
to as the ``Program'').
    (b) Grants.--The Secretary of Energy may make grants to a State 
energy office--
            (1) to assist school districts in the State to improve the 
        energy efficiency of school buildings;
            (2) to administer the Program; and
            (3) to promote participation in the Program.
    (c) Grants To Assist School Districts.--The Secretary shall 
condition grants under subsection (b)(1) on the State energy office 
using the grants to assist school districts that have demonstrated--
            (1) a need for the grants to build additional school 
        buildings to meet increasing elementary or secondary 
        enrollments or to renovate existing school buildings; and
            (2) a commitment to use the grant funds to develop high 
        performance school buildings in accordance with a plan that the 
        State energy office, in consultation with the State educational 
        agency, has determined is feasible and appropriate to achieve 
        the purposes for which the grant is made.
    (d) Grants for Administration.--Grants under subsection (b)(2) 
shall be used to--
            (1) evaluate compliance by school districts with 
        requirements of this section;
            (2) distribute information and materials to clearly define 
        and promote the development of high performance school 
        buildings for both new and existing facilities;
            (3) organize and conduct programs for school board members, 
        school personnel, architects, engineers, and others to advance 
        the concepts of high performance school buildings;
            (4) obtain technical services and assistance in planning 
        and designing high performance school buildings; or
            (5) collect and monitor data and information pertaining to 
        the high performance school building projects.
    (e) Grants To Promote Participation.--Grants under subsection 
(b)(3) shall be used for promotional and marketing activities, 
including facilitating private and public financing, promoting the use 
of energy savings performance contracts, working with school 
administrations, students, and communities, and coordinating public 
benefit programs.
    (f) Supplementing Grant Funds.--The State energy office shall 
encourage qualifying school districts to supplement funds awarded 
pursuant to this section with funds from other sources in the 
implementation of their plans.
    (g) Allocations.--Except as provided in subsection (h), funds 
appropriated to carry out this section shall be allocated as follows:
            (1) 70 percent shall be used to make grants under 
        subsection (b)(1);
            (2) 15 percent shall be used to make grants under 
        subsection (b)(2); and
            (3) 15 percent shall be used to make grants under 
        subsection (b)(3).
    (h) Other Funds.--The Secretary of Energy may retain an amount, not 
to exceed $300,000 per year, 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 school buildings.
    (i) Authorization of Appropriations.--For grants under subsection 
(b) there are authorized to be appropriated--
            (1) $200,000,000 for fiscal year 2003;
            (2) $210,000,000 for fiscal year 2004;
            (3) $220,000,000 for fiscal year 2005;
            (4) $230,000,000 for fiscal year 2006; and
            (5) such sums as may be necessary for fiscal year 2007 and 
        each fiscal year thereafter through fiscal year 2012.
    (j) Definitions.--For purposes of this section:
            (1) High performance school building.--The term ``high 
        performance school building'' means a school building that, in 
        its design, construction, operation, and maintenance--
                    (A) maximizes use of renewable energy and energy-
                efficient technologies and systems;
                    (B) is cost-effective on a life-cycle basis;
                    (C) achieves either--
                            (i) the applicable Energy Star building 
                        energy performance ratings, or
                            (ii) energy consumption levels at least 30 
                        percent below those of the most recent version 
                        of ASHRAE Standard 90.1;
                    (D) uses affordable, environmentally preferable, 
                and durable materials;
                    (E) enhances indoor environmental quality;
                    (F) protects and conserves water; and
                    (G) optimizes site potential.
            (2) Renewable energy.--The term ``renewable energy'' means 
        energy produced by solar, wind, biomass, ocean, geothermal, or 
        hydroelectric power.
            (3) School.--The term ``school'' means--
                    (A) an ``elementary school'' as that term is 
                defined in section 14101(14) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 8801(14)),
                    (B) a ``secondary school'' as that term is defined 
                in section 14101(25) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 8801(25)), or
                    (C) an elementary or secondary Indian school funded 
                by the Bureau of Indian Affairs.
            (4) State educational agency.--The term ``State educational 
        agency'' has the same meaning given such term in section 
        14101(28) of the Elementary and Secondary Education Act of 1965 
        (20 U.S.C. 8801(28)).
            (5) State energy office.--The term ``State energy office'' 
        means the State agency responsible for developing State energy 
        conservation plans under section 362 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6322), or, if no such agency 
        exists, a State agency designated by the Governor of the State.

SEC. 904. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT PROGRAM.

    (a) Grants.--The Secretary of Energy is authorized to make grants 
to private, non-profit community development organizations and Indian 
tribe economic development entities to improve energy efficiency, 
identify and develop alternative renewable and distributed energy 
supplies, and increase energy conservation in low income rural and 
urban communities.
    (b) Purpose of Grants.--The Secretary may make grants on a 
competitive basis to a community development organization for--
            (1) investments that develop alternative renewable and 
        distributed energy supplies;
            (2) energy efficiency projects and energy conservation 
        programs;
            (3) studies and other activities that improve energy 
        efficiency in low income rural and urban communities;
            (4) planning and development assistance for increasing the 
        energy efficiency of buildings and facilities; and
            (5) technical and financial assistance to local government 
        and private entities on developing new renewable and 
        distributed sources of power or combined heat and power 
        generation.
    (c) Definition.--For purposes of this section, the term ``Indian 
tribe''means any Indian tribe, band, nation, or other organized group 
or community, including any Alaskan Native Village or regional or 
village corporation as defined in or established pursuant to the Alaska 
Native Claims Settlement Act (43 U.S.C. 1601 et seq.), which is 
recognized as eligible for the special programs and services provided 
by the United States to Indians because of their status as Indians.
    (d) Authorization of Appropriations.--For the purposes of this 
section there are authorized to be appropriated to the Secretary of 
Energy an amount not to exceed $10 million for fiscal year 2003 and 
each fiscal year thereafter through fiscal year 2005.

                 Subtitle B--Federal Energy Efficiency

SEC. 911. ENERGY MANAGEMENT REQUIREMENTS.

    (a) Energy Reduction Goals.--Section 543(a)(1) of the National 
Energy Conservation Policy Act (42 U.S.C. 8253(a)(1)) is amended to 
read as follows:
            ``(1) Subject to paragraph (2), each agency shall apply 
        energy conservation measures to, and shall improve the design 
        for the construction of, the Federal buildings of the agency 
        (including each industrial or laboratory facility) so that the 
        energy consumption per gross square foot of the Federal 
        buildings of the agency in fiscal years 2002 through 2011 is 
        reduced, as compared with the energy consumption per gross 
        square foot of the Federal buildings of the agency in fiscal 
        year 2000, by the percentage specified in the following table:

``Fiscal Year                                      Percentage reduction
                2002.......................................           2
                2003.......................................           4
                2004.......................................           6
                2005.......................................           8
                2006.......................................          10
                2007.......................................          12
                2008.......................................          14
                2009.......................................          16
                2010.......................................          18
                2011.......................................          20
    (b) Review and Revision of Energy Performance Requirement.--Section 
543(a) of the National Energy Conservation Policy Act (42 U.S.C. 
8253(a)) is further amended by adding at the end the following:
            ``(3) Not later than December 31, 2010, the Secretary shall 
        review the results of the implementation of the energy 
        performance requirement established under paragraph (1) and 
        submit to Congress recommendations concerning energy 
        performance requirements for calendar years 2012 through 
        2021.''.
    (c) Exclusions.--Section 543(c)(1) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(c)(1)) is amended to read as 
follows:
            ``(1)(A) An agency may exclude, from the energy performance 
        requirement for a calendar year established under subsection 
        (a) and the energy management requirement established under 
        subsection (b), any Federal building or collection of Federal 
        buildings, if the head of the agency finds that--
                    ``(i) compliance with those requirements would be 
                impracticable;
                    ``(ii) the agency has completed and submitted all 
                federally required energy management reports;
                    ``(iii) the agency has achieved compliance with the 
                energy efficiency requirements of this Act, the Energy 
                Policy Act of 1992, Executives Orders, and other 
                federal law; and
                    ``(iv) the agency has implemented all practicable, 
                life-cycle cost-effective projects with respect to the 
                Federal building or collection of Federal buildings to 
                be excluded.
            ``(B) A finding of impracticability under subparagraph 
        (A)(i) shall be based on--
                    ``(i) the energy intensiveness of activities 
                carried out in the Federal building or collection of 
                Federal buildings; or
                    ``(ii) the fact that the Federal building or 
                collection of Federal buildings is used in the 
                performance of a national security function.''.
    (d) Review by Secretary.--Section 543(c)(2) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(c)(2)) is amended--
            (1) by striking ``impracticability standards'' and 
        inserting ``standards for exclusion''; and
            (2) by striking ``a finding of impracticability'' and 
        inserting ``the exclusion''.
    (e) Criteria.--Section 543(c) of the National Energy Conservation 
Policy Act (42 U.S.C. 8253(c)) is further amended by adding at the end 
the following:
            ``(3) Not later than 180 days after the date of enactment 
        of this paragraph, the Secretary shall issue guidelines that 
        establish criteria for exclusions under paragraph (1).''.
    (f) Reports.--Section 548(b) of the National Energy Conservation 
Policy Act (42 U.S.C. 8258(b)) is amended--
            (1) in the subsection heading, by inserting ``the president 
        and'' before ``congress''; and
            (2) by inserting ``President and'' before ``Congress''.
    (g) Conforming Amendment.--Section 550(d) of the National Energy 
Conservation Policy Act (42 U.S.C. 8258b(d)) is amended in the second 
sentence by striking ``the 20 percent reduction goal established under 
section 543(a) of the National Energy Conservation Policy Act (42 
U.S.C. 8253(a)).'' and inserting ``each of the energy reduction goals 
established under section 543(a).''.

SEC. 912. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.

    Section 543 of the National Energy Conservation Policy Act (42 
U.S.C. 8253) is further amended by adding at the end the following:
    ``(e) Metering of Energy Use.--
            ``(1) Deadline.--By October 1, 2004, all Federal buildings 
        shall be metered or submetered in accordance with guidelines 
        established by the Secretary under paragraph (2).
            ``(2) Guidelines.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this subsection, the 
                Secretary, in consultation with the Department of 
                Defense, the General Service Administration and 
                representatives from the metering industry, energy 
                services industry, national laboratories, universities 
                and federal facility energy managers, shall establish 
                guidelines for agencies to carry out paragraph (1).
                    ``(B) Requirements for guidelines.--The guidelines 
                shall--
                            ``(i) take into consideration--
                                    ``(I) the cost of metering and 
                                submetering and the reduced cost of 
                                operation and maintenance expected to 
                                result from metering and submetering;
                                    ``(II) the extent to which metering 
                                and submetering are expected to result 
                                in increased potential for energy 
                                management, increased potential for 
                                energy savings and energy efficiency 
                                improvement, and cost and energy 
                                savings due to utility contract 
                                aggregation; and
                                    ``(III) the measurement and 
                                verification protocols of the 
                                Department of Energy;
                            ``(ii) include recommendations concerning 
                        the amount of funds and the number of trained 
                        personnel necessary to gather and use the 
                        metering information to track and reduce energy 
                        use;
                            ``(iii) establish 1 or more dates, not 
                        later than 1 year after the date of issuance of 
                        the guidelines, on which the requirement 
                        specified in paragraph (1) shall take effect; 
                        and
                            ``(iv) establish exclusions from the 
                        requirement specified in paragraph (1) based on 
                        the de minimus quantity of energy use of a 
                        Federal building, industrial process, or 
                        structure.
    ``(f) Use of Energy Consumption Data in Federal Buildings.--
            ``(1) In general.--Beginning not later than January 1, 
        2003, each agency shall use, to the maximum extent practicable, 
        for the purposes of efficient use of energy and reduction in 
        the cost of electricity used in the Federal buildings of the 
        agency, interval consumption data that measure on a real-time 
        or daily basis consumption of electricity in the Federal 
        buildings of the agency.
            ``(2) Plan.--As soon as practicable after the date of 
        enactment of this subsection, in a report submitted by the 
        agency under section 548(a), each agency shall submit to the 
        Secretary a plan describing how the agency will implement the 
        requirement of paragraph (1), including how the agency will 
        designate personnel primarily responsible for achieving the 
        requirement.''.

SEC. 913. FEDERAL BUILDING PERFORMANCE STANDARDS.

    (a) Revised Standards.--Section 305(a) of the Energy Conservation 
and Production Act (42 U.S.C. 6834(a)) is amended--
            (1) in paragraph (2)(A), by striking ``CABO Model Energy 
        Code, 1992'' and inserting ``the 2000 International Energy 
        Conservation Code''; and
            (2) by adding at the end the following:
            ``(3) Revised federal building energy efficiency 
        performance standards.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this paragraph, the Secretary of 
                Energy shall establish, by rule, revised Federal 
                building energy efficiency performance standards that 
                require that, if cost-effective--
                            ``(i) new commercial buildings and 
                        multifamily high rise residential buildings be 
                        constructed so as to achieve the applicable 
                        Energy Star building energy performance ratings 
                        or energy consumption levels at least 30 
                        percent below those of the most recent ASHRAE 
                        Standard 90.1, whichever results in the greater 
                        increase in energy efficiency;
                            ``(ii) new residential buildings (other 
                        than those described in clause (i)) be 
                        constructed so as to achieve the applicable 
                        Energy Star building energy performance ratings 
                        or achieve energy consumption levels at least 
                        30 percent below the requirements of the most 
                        recent version of the International Energy 
                        Conservation Code, whichever results in the 
                        greater increase in energy efficiency; and
                            ``(iii) sustainable design principles are 
                        applied to the siting, design, and construction 
                        of all new and replacement buildings.
                    ``(B) Additional revisions.--Not later than 1 year 
                after the date of approval of amendments to ASHRAE 
                Standard 90.1 or the 2000 International Energy 
                Conservation Code, the Secretary of Energy shall 
                determine, based on the cost-effectiveness of the 
                requirements under the amendments, whether the revised 
                standards established under this paragraph should be 
                updated to reflect the amendments.
                    ``(C) Statement on compliance of new buildings.--In 
                the budget request of the Federal agency for each 
                fiscal year and each report submitted by the Federal 
                agency under section 548(a) of the National Energy 
                Conservation Policy Act (42 U.S.C. 8258(a)), the head 
                of each Federal agency shall include--
                            ``(i) a list of all new Federal buildings 
                        of the Federal agency; and
                            ``(ii) a statement concerning whether the 
                        Federal buildings meet or exceed the revised 
                        standards established under this paragraph, 
                        including a monitoring and commissioning report 
                        that is in compliance with the measurement and 
                        verification protocols of the Department of 
                        Energy.
                    ``(D) Authorization of appropriations.--There are 
                authorized to be appropriated such sums as are 
                necessary to carry out this paragraph and to implement 
                the revised standards established under this 
                paragraph.''.
    (b) Energy Labeling Program.--Section 305(a) of the Energy 
Conservation and Production Act (42 U.S.C. 6834(a)) is further amended 
by adding at the end the following:
    ``(e) Energy Labeling Program.--The Secretary of Energy, in 
cooperation with the Administrator of the Environmental Protection 
Agency, shall develop an energy labeling program for new Federal 
buildings that exceed the revised standards established under 
subsection (a)(3) by 15 percent or more.''.

SEC. 914. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

    (a) Requirements.--Part 3 of title V of the National Energy 
Conservation Policy Act is amended by adding at the end the following:

``SEC. 552. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

    ``(a) Definitions.--In this section:
            ``(1) Energy star product.--The term `Energy Star product' 
        means a product that is rated for energy efficiency under an 
        Energy Star program.
            ``(2) Energy star program.--The term `Energy Star program' 
        means the program established by section 324A of the Energy 
        Policy and Conservation Act.
            ``(3) Executive agency.--The term `executive agency' has 
        the meaning given the term in section 4 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403).
            ``(4) FEMP designated product.--The term `FEMP designated 
        product' means a product that is designated under the Federal 
        Energy Management Program of the Department of Energy as being 
        among the highest 25 percent of equivalent products for energy 
        efficiency.
    ``(b) Procurement of Energy Efficient Products.--
            ``(1) Requirement.--To meet the requirements of an 
        executive agency for an energy consuming product, the head of 
        the executive agency shall, except as provided in paragraph 
        (2), procure--
                    ``(A) an Energy Star product; or
                    ``(B) a FEMP designated product.
            ``(2) Exceptions.--The head of an executive agency is not 
        required to procure an Energy Star product or FEMP designated 
        product under paragraph (1) if--
                    ``(A) an Energy Star product or FEMP designated 
                product is not cost effective over the life cycle of 
                the product; or
                    ``(B) no Energy Star product or FEMP designated 
                product is reasonably available that meets the 
                requirements of the executive agency.
            ``(3) Procurement planning.--The head of an executive 
        agency shall incorporate into the specifications for all 
        procurements involving energy consuming products and systems, 
        and into the factors for the evaluation of offers received for 
        the procurement, criteria for energy efficiency that are 
        consistent with the criteria used for rating Energy Star 
        products and for rating FEMP designated products.
    ``(c) Listing of Energy Efficient Products in Federal Catalogs.--
Energy Star and FEMP designated products shall be clearly identified 
and prominently displayed in any inventory or listing of products by 
the General Services Administration or the Defense Logistics Agency.
    (b) Conforming Amendment.--The table of contents in section 1(b) of 
the National Energy Conservation Policy Act (42 U.S.C. 8201 note) is 
amended by inserting after the item relating to section 551 the 
following:

``Sec. 552. Federal Government procurement of energy efficient 
                            products.''
    (c) Regulations.--Not later than 180 days after the effective date 
specified in subsection (f), the Secretary of Energy shall issue 
guidelines to carry out section 552 of the National Energy Conservation 
Policy Act (as added by subsection (a)).
    (d) Designation of Energy Star Products.--The Administrator of the 
Environmental Protection Agency and the Secretary of Energy shall 
expedite the process of designating products as Energy Star products 
(as defined in section 552 of the National Energy Conservation Policy 
Act (as added by subsection (a)).
    (e) Designation of Electric Motors.--In the case of electric motors 
of 1 to 500 horsepower, agencies shall select only premium efficient 
motors that meet a standard designated by the Secretary. The Secretary 
shall designate such a standard within 120 days of the enactment of 
this paragraph, after considering the recommendations of associated 
electric motor manufacturers and energy efficiency groups.
    (f) Effective Date.--Subsection (a) and the amendment made by that 
subsection take effect on the date that is 180 days after the date of 
enactment of this Act.

SEC. 915. REPEAL OF ENERGY SAVINGS PERFORMANCE CONTRACT SUNSET.

    Section 801(c) of the National Energy Conservation Policy Act (42 
U.S.C. 8287(c)) is repealed.

SEC. 916. ENERGY SAVINGS PERFORMANCE CONTRACT DEFINITIONS.

    (a) 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) 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--
                    ``(A) the lease or purchase of operating equipment, 
                improvements, altered operation and maintenance, or 
                technical services;
                    ``(B) the increased efficient use of existing 
                energy sources by cogeneration or heat recovery, 
                excluding any cogeneration process for other than a 
                federally owned building or buildings or other 
                federally owned facilities; or
                    ``(C) the increased efficient use of existing water 
                sources.''.
    (b) 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 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.''.
    (c) 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, 
                more efficient treatment of wastewater or stormwater, 
                improvements in operation or maintenance efficiencies, 
                retrofit activities or other related activities, not at 
                a Federal hydroelectric facility.''.

SEC. 917. 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. 918. FEDERAL ENERGY BANK.

    Part 3 of title V of the National Energy Conservation Policy Act is 
amended by adding at the end the following:

``SEC. 553. FEDERAL ENERGY BANK.

    ``(a) Definitions.--In this section:
            ``(1) Bank.--The term `Bank' means the Federal Energy Bank 
        established by subsection (b).
            ``(2) Energy or water efficiency project.--The term `energy 
        or water efficiency project' means a project that assists a 
        Federal agency in meeting or exceeding the energy or water 
        efficiency requirements of--
                    ``(A) this part;
                    ``(B) title VIII;
                    ``(C) subtitle F of title I of the Energy Policy 
                Act of 1992 (42 U.S.C. 8262 et seq.); or
                    ``(D) any applicable Executive order, including 
                Executive Order No. 13123.
            ``(3) Federal agency.--The term `Federal agency' means--
                    ``(A) an Executive agency (as defined in section 
                105 of title 5, United States Code);
                    ``(B) the United States Postal Service;
                    ``(C) Congress and any other entity in the 
                legislative branch; and
                    ``(D) a Federal court and any other entity in the 
                judicial branch.
    ``(b) Establishment of Bank.--
            ``(1) In general.--There is established in the Treasury of 
        the United States a fund to be known as the `Federal Energy 
        Bank', consisting of--
                    ``(A) such amounts as are deposited in the Bank 
                under paragraph (2);
                    ``(B) such amounts as are repaid to the Bank under 
                subsection (c)(2)(D); and
                    ``(C) any interest earned on investment of amounts 
                in the Bank under paragraph (3).
            ``(2) Deposits in bank.--
                    ``(A) In general.--Subject to the availability of 
                appropriations and to subparagraph (B), the Secretary 
                of the Treasury shall deposit in the Bank an amount 
                equal to $250,000,000 in fiscal year 2003 and in each 
                fiscal year thereafter.
                    ``(B) Maximum amount in bank.--Deposits under 
                subparagraph (A) shall cease beginning with the fiscal 
                year following the fiscal year in which the amounts in 
the Bank (including amounts on loan from the Bank) become equal to or 
exceed $1,000,000,000.
            ``(3) Investment of amounts.--The Secretary of the Treasury 
        shall invest such portion of the Bank as is not, in the 
        judgment of the Secretary, required to meet current 
        withdrawals. Investments may be made only in interest-bearing 
        obligations of the United States.
    ``(c) Loans From the Bank.--
            ``(1) In general.--The Secretary of the Treasury shall 
        transfer from the Bank to the Secretary such amounts as are 
        appropriated to carry out the loan program under paragraph (2).
            ``(2) Loan program.--
                    ``(A) Establishment.--
                            ``(i) In general.--In accordance with 
                        subsection (d), the Secretary, in consultation 
                        with the Secretary of Defense, the 
                        Administrator of General Services, and the 
                        Director of the Office of Management and 
                        Budget, shall establish a program to make loans 
                        of amounts in the Bank to any Federal agency 
                        that submits an application satisfactory to the 
                        Secretary in order to pay the costs of a 
                        project described in subparagraph (C).
                            ``(ii) Commencement of operations.--The 
                        Secretary may begin--
                                    ``(I) accepting applications for 
                                loans from the Bank in fiscal year 
                                2002; and
                                    ``(II) making loans from the Bank 
                                in fiscal year 2003.
                    ``(B) Energy savings performance contracting 
                funding.--To the extent practicable, an agency shall 
                not submit a project for which energy performance 
                contracting funding is available and is acceptable to 
                the Federal agency under title VIII.
                    ``(C) Purposes of loan.--
                            ``(i) In general.--A loan from the Bank may 
                        be used to pay--
                                    ``(I) the costs of an energy or 
                                water efficiency project, or a 
                                renewable or alternative energy 
                                project, for a new or existing Federal 
                                building (including selection and 
                                design of the project);
                                    ``(II) the costs of an energy 
                                metering plan and metering equipment 
                                installed pursuant to section 543(e) or 
                                for the purpose of verification of the 
                                energy savings under an energy savings 
                                performance contract under title VIII; 
                                or
                                    ``(III) at the time of contracting, 
                                the costs of cofunding of an energy 
                                savings performance contract (including 
                                a utility energy service agreement) in 
                                order to shorten the payback period of 
                                the project that is the subject of the 
                                energy savings performance contract.
                            ``(ii) Limitation.--A Federal agency may 
                        use not more than 10 percent of the amount of a 
                        loan under subclause (I) or (II) of clause (i) 
                        to pay the costs of administration and proposal 
                        development (including data collection and 
                        energy surveys).
                            ``(iii) Renewable and alternative energy 
                        projects.--Not more than 25 percent of the 
                        amount on loan from the Bank at any time may be 
                        loaned for renewable energy and alternative 
                        energy projects (as defined by the Secretary in 
                        accordance with applicable law (including 
                        Executive Orders)).
                    ``(D) Repayments.--
                            ``(i) In general.--Subject to clauses (ii) 
                        through (iv), a Federal agency shall repay to 
                        the Bank the principal amount of a loan plus 
                        interest at a rate determined by the President, 
                        in consultation with the Secretary and the 
                        Secretary of the Treasury.
                            ``(ii) Waiver or reduction of interest.--
                        The Secretary may waive or reduce the rate of 
                        interest required to be paid under clause (i) 
                        if the Secretary determines that payment of 
                        interest by a Federal agency at the rate 
                        determined under that clause is not required to 
                        fund the operations of the Bank.
                            ``(iii) Determination of interest rate.--
                        The interest rate determined under clause (i) 
                        shall be at a rate that is sufficient to ensure 
                        that, beginning not later than October 1, 2007, 
                        interest payments will be sufficient to fully 
                        fund the operations of the Bank.
                            ``(iv) Insufficiency of appropriations.--
                                    ``(I) Request for appropriations.--
                                As part of the budget request of the 
                                Federal agency for each fiscal year, 
                                the head of each Federal agency shall 
                                submit to the President a request for 
                                such amounts as are necessary to make 
                                such repayments as are expected to 
                                become due in the fiscal year under 
                                this subparagraph.
                                    ``(II) Suspension of repayment 
                                requirement.--If, for any fiscal year, 
                                sufficient appropriations are not made 
                                available to a Federal agency to make 
                                repayments under this subparagraph, the 
                                Bank shall suspend the requirement of 
                                repayment under this subparagraph until 
                                such appropriations are made available.
                    ``(E) Federal agency energy budgets.--Until a loan 
                is repaid, a Federal agency budget submitted by the 
                President to Congress for a fiscal year shall not be 
                reduced by the value of energy savings accrued as a 
                result of any energy conservation measure implemented 
                using amounts from the Bank.
                    ``(F) No rescission or reprogramming.--A Federal 
                agency shall not rescind or reprogram loan amounts made 
                available from the Bank except as permitted under 
                guidelines issued under subparagraph (G).
                    ``(G) Guidelines.--The Secretary shall issue 
                guidelines for implementation of the loan program under 
                this paragraph, including selection criteria, maximum 
                loan amounts, and loan repayment terms.
    ``(d) Selection Criteria.--
            ``(1) In general.--The Secretary shall establish criteria 
        for the selection of projects to be awarded loans in accordance 
        with paragraph (2).
            ``(2) Selection criteria.--
                    ``(A) In general.--The Secretary may make loans 
                from the Bank only for a project that--
                            ``(i) is technically feasible;
                            ``(ii) is determined to be cost-effective 
                        using life cycle cost methods established by 
                        the Secretary;
                            ``(iii) includes a measurement and 
                        management component, based on the measurement 
                        and verification protocols of the Department of 
                        Energy, to--
                                    ``(I) commission energy savings for 
                                new and existing Federal facilities;
                                    ``(II) monitor and improve energy 
                                efficiency management at existing 
                                Federal facilities; and
                                    ``(III) verify the energy savings 
                                under an energy savings performance 
                                contract under title VIII; and
                            ``(iv)(I) in the case of renewable energy 
                        or alternative energy project, has a simple 
                        payback period of not more than 15 years; and
                            ``(II) in the case of any other project, 
                        has a simple payback period of not more than 10 
                        years.
                    ``(B) Priority.--In selecting projects, the 
                Secretary shall give priority to projects that--
                            ``(i) are a component of a comprehensive 
                        energy management project for a Federal 
                        facility; and
                            ``(ii) are designed to significantly reduce 
                        the energy use of the Federal facility.
    ``(e) Reports and Audits.--
            ``(1) Reports to the secretary.--Not later than 1 year 
        after the completion of installation of a project that has a 
        cost of more than $1,000,000, and annually thereafter, a 
        Federal agency shall submit to the Secretary a report that--
                    ``(A) states whether the project meets or fails to 
                meet the energy savings projections for the project; 
                and
                    ``(B) for each project that fails to meet the 
                energy savings projections, states the reasons for the 
                failure and describes proposed remedies.
            ``(2) Audits.--The Secretary may audit, or require a 
        Federal agency that receives a loan from the Bank to audit, any 
        project financed with amounts from the Bank to assess the 
        performance of the project.
            ``(3) Reports to congress.--At the end of each fiscal year, 
        the Secretary shall submit to Congress a report on the 
        operations of the Bank, including a statement of--
                    ``(A) the total receipts by the Bank;
                    ``(B) the total amount of loans from the Bank to 
                each Federal agency; and
                    ``(C) the estimated cost and energy savings 
                resulting from projects funded with loans from the 
                Bank.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to such sums as are necessary to carry out this 
section.''.

SEC. 919. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL BUILDINGS.

    (a) In General.--Part 3 of title V of the National Energy 
Conservation Policy Act is amended by adding at the end:

``SEC. 554. ENERGY AND WATER SAVINGS MEASURES IN CONGRESSIONAL 
              BUILDINGS.

    ``(a) In General.--The Architect of the Capitol--
            ``(1) shall develop, update, and implement a cost-effective 
        energy conservation and management plan (referred to in this 
        section as the `plan') for all facilities administered by the 
        Congress (referred to in this section as `congressional 
        buildings') to meet the energy performance requirements for 
        Federal buildings established under section 543(a)(1).
            ``(2) shall submit the plan to Congress, not later than 180 
        days after the date of enactment of this section.
    ``(b) Plan Requirements.--The plan shall include--
            ``(1) a description of the life-cycle cost analysis used to 
        determine the cost-effectiveness of proposed energy efficiency 
        projects;
            ``(2) a schedule of energy surveys to ensure complete 
        surveys of all congressional buildings every five years to 
        determine the cost and payback period of energy and water 
        conservation measures;
            ``(3) a strategy for installation of life cycle cost 
        effective energy and water conservation measures;
            ``(4) the results of a study of the costs and benefits of 
        installation of submetering in congressional buildings; and
            ``(5) information packages and `how-to' guides for each 
        Member and employing authority of Congress that detail simple, 
        cost-effective methods to save energy and taxpayer dollars in 
        the workplace.
    ``(c) Contracting Authority.--The Architect--
            ``(1) may contract with nongovernmental entities and use 
        private sector capital to finance energy conservation projects 
        and meet energy performance requirements; and
            ``(2) may use innovative contracting methods that will 
        attract private sector funding for the installation of energy 
        efficient and renewable energy technology, such as energy 
        savings performance contracts described in title VIII.
    ``(d) Capitol Visitor Center.--The Architect--
            ``(1) shall ensure that state-of-the-art energy efficiency 
        and renewable energy technologies are used in the construction 
        and design of the Visitor Center; and
            ``(2) shall include in the Visitor Center an exhibit on the 
        energy efficiency and renewable energy measures used in 
        congressional buildings.
    ``(e) Annual Report.--The Architect shall submit to Congress 
annually a report on congressional energy management and conservation 
programs required under this section that describes in detail--
            ``(1) energy expenditures and savings estimates for each 
        facility;
            ``(2) energy management and conservation projects; and
            ``(3) future priorities to ensure compliance with this 
        section.''.
    (b) Repeal.--Section 310 of the Legislative Branch Appropriations 
Act, 1999 (40 U.S.C. 166i), is repealed.

        Subtitle C--Industrial Efficiency and Consumer Products

SEC. 921. VOLUNTARY COMMITMENTS TO REDUCE INDUSTRIAL ENERGY INTENSITY.

    (a) Voluntary Agreements.--The Secretary of Energy shall enter into 
voluntary agreements with one or more persons in industrial sectors 
that consume significant amounts of primary energy per unit of physical 
output to reduce the energy intensity of their production activities.
    (b) Goal.--Voluntary agreements under this section shall have a 
goal of reducing energy intensity by not less than 2.5 percent each 
year from 2002 through 2012.
    (c) Recognition.--The Secretary of Energy, in cooperation with the 
Administrator of the Environmental Protection Agency and other 
appropriate federal agencies, shall develop mechanisms to recognize and 
publicize the achievements of participants in voluntary agreements 
under this section.
    (d) Definition.--In this section, the term ``energy intensity'' 
means the primary energy consumed per unit of physical output in an 
industrial process.
    (e) Technical Assistance.--An entity that enters into an agreement 
under this section and continues to make a good faith effort to achieve 
the energy efficiency goals specified in the agreement shall be 
eligible to receive from the Secretary a grant or technical assistance 
as appropriate to assist in the achievement of those goals.
    (f) Report.--Not later than June 30, 2008 and June 30, 2012, the 
Secretary shall submit to Congress a report that evaluates the success 
of the voluntary agreements, with independent verification of a sample 
of the energy savings estimates provided by participating firms.

SEC. 922. AUTHORITY TO SET STANDARDS FOR COMMERCIAL PRODUCTS.

    Part B of title III of the Energy Policy and Conservation Act (42 
U.S.C. 6291 et seq.) is amended as follows:
            (1) In the heading for such part, by inserting ``AND 
        COMMERCIAL'' after ``CONSUMER''.
            (2) In section 321(2), by inserting ``or commercial'' after 
        ``consumer''.
            (3) In paragraphs (4), (5), and (15) of section 321, by 
        striking ``consumer'' each place it appears and inserting 
        ``covered''.
            (4) In section 322(a), by inserting ``or commercial'' after 
        ``consumer'' the first place it appears in the material 
        preceding paragraph (1).
            (5) In section 322(b), by inserting ``or commercial'' after 
        ``consumer'' each place it appears.
            (6) In section 322 (b)(1)(B) and (b)(2)(A), by inserting 
        ``or per-business in the case of a commercial product'' after 
        ``per-household'' each place it appears.
            (7) In section 322 (b)(2)(A), by inserting ``or businesses 
        in the case of commercial products'' after ``households'' each 
        place it appears.
            (8) In section 322 (B)(2)(C)--
                    (A) by striking ``term'' and inserting ``terms''; 
                and
                    (B) by inserting ``and `business''' after 
                ```household'''.
            (9) In section 323 (b)(1)(B) by inserting ``or commercial'' 
        after ``consumer''.

SEC. 923. ADDITIONAL DEFINITIONS.

    Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 
6291) is amended by adding at the end the following:
            ``(32) The term `battery charger' means a device that 
        charges batteries for consumer products.
            ``(33) The term `commercial refrigerator, freezer and 
        refrigerator-freezer' means a refrigerator, freezer or 
        refrigerator-freezer that--
                    ``(A) is not a consumer product regulated under 
                this Act; and
                    ``(B) incorporates most components involved in the 
                vapor-compression cycle and the refrigerated 
                compartment in a single package.
            ``(34) The term `external power supply' means an external 
        power supply circuit that is used to convert household electric 
        current into either DC current or lower-voltage AC current to 
        operate a consumer product.
            ``(35) The term `illuminated exit sign' means a sign that--
                    ``(A) is designed to be permanently fixed in place 
                to identify an exit; and
                    ``(B) consists of--
                            ``(i) an electrically powered integral 
                        light source that illuminates the legend `EXIT' 
                        and any directional indicators; and
                            ``(ii) provides contrast between the 
                        legend, any directional indicators, and the 
                        background.
            ``(36)(A) Except as provided in subsection (B), the term 
        `low-voltage dry-type transformer' means a transformer that--
                    ``(i) has an input voltage of 600 volts or less;
                    ``(ii) is air-cooled;
                    ``(iii) does not use oil as a coolant; and
                    ``(iv) is rated for operation at a frequency of 60 
                Hertz.
            ``(B) The term `low-voltage dry-type transformer' does not 
        include--
                    ``(i) transformers with multiple voltage taps, with 
                the highest voltage tap equaling at least 20 percent 
                more than the lowest voltage tap;
                    ``(ii) transformers that are designed to be used in 
                a special purpose application, such as transformers 
                commonly known as drive transformers, rectifier 
                transformers, autotrans- formers, Uninterruptible Power 
                System transformers, impedance transformers, harmonic 
                transformers, regulating transformers, sealed and 
                nonventilating transformers, machine tool transformers, 
                welding transformers, grounding transformers, or 
                testing transformers; or
                    ``(iii) any transformer not listed in clause (ii) 
                that is excluded by the Secretary by rule because the 
                transformer is designed for a special application and 
                the application of standards to the transformer would 
                not result in significant energy savings.
            ``(37) The term ``standby mode'' means the lowest amount of 
        electric power used by a household appliance when not 
        performing its active functions, as defined on an individual 
        product basis by the Secretary.
            ``(38) The term `torchiere' means a portable electric lamp 
        with a reflector bowl that directs light upward so as to give 
        indirect illumination.
            ``(39) The term `transformer' means a device consisting of 
        2 or more coils of insulated wire that transfers alternating 
        current by electromagnetic induction from one coil to another 
        to change the original voltage or current value.
            ``(40) The term `unit heater' means a self-contained fan-
        type heater designed to be installed within the heated space, 
        except that such term does not include a warm air furnace.

SEC. 924. ADDITIONAL TEST PROCEDURES.

    (a) Exit Signs.--Section 323(b) of the Energy Policy and 
Conservation Act (42 U.S.C. 6293) is amended by adding at the end the 
following:
            ``(9) Test procedures for illuminated exit signs shall be 
        based on the test method used under the Energy Star program of 
        the Environmental Protection Agency for illuminated exit signs, 
        as in effect on the date of enactment of this paragraph.
            ``(10) Test procedures for low voltage dry-type 
        distribution transformers shall be based on the `Standard Test 
        Method for Measuring the Energy Consumption of Distribution 
        Transformers' prescribed by the National Electrical 
        Manufacturers Association (NEMA TP 2-1998). The Secretary may 
        review and revise this test procedure based on future revisions 
        to such standard test method.
    (b) Additional Consumer and Commercial Products.--Section 323 of 
the Energy Policy and Conservation Act (42 U.S.C. 6293) is further 
amended by adding at the end the following:
    ``(f) Additional Consumer and Commercial Products.--The Secretary 
shall within 24 months after the date of enactment of this subsection 
prescribe testing requirements for suspended ceiling fans, refrigerated 
bottled or canned beverage vending machines, commercial unit heaters, 
and commercial refrigerators, freezers and refrigerator-freezers. Such 
testing requirements shall be based on existing test procedures used in 
industry to the extent practical and reasonable. In the case of 
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.''.

SEC. 925. ENERGY LABELING.

    (a) Rulemaking on Effectiveness of Consumer Product Labeling.--
Paragraph (2) of section 324(a) of the Energy Policy and Conservation 
Act (42 U.S.C. 6294(a)(2)) is amended by adding at the end the 
following:
                    ``(F) Not later than three months after the date of 
                enactment of this subparagraph, the Commission shall 
                initiate a rulemaking to consider the effectiveness of 
                the current consumer products labeling program in 
                assisting consumers in making purchasing decisions and 
                improving energy efficiency and to consider changes to 
                the labeling rules that would improve the effectiveness 
                of consumer product labels. Such rulemaking shall be 
                completed within 15 months of the date of enactment of 
                this subparagraph.''.
    (b) Rulemaking on Labeling for Additional Products.--Section 324(a) 
of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)) is 
further amended by adding at the end the following:
            ``(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 subsections (u) 
        and (v) of section 325, and within 18 months of enactment of 
        this paragraph for products referred to in subsections (w) 
        through (y) of section 325, prescribe, by rule, labeling 
        requirements for such products. Labeling requirements adopted 
        under this paragraph shall take effect on the same date as the 
        standards set pursuant to sections 325(v) through (y).

SEC. 926. ENERGY STAR PROGRAM.

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

                         ``energy star program.

    ``Sec. 324A. (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;
            ``(3) preserve the integrity of the Energy Star label; and
            ``(4) solicit the comments of interested parties in 
        establishing a new Energy Star product category or in revising 
        a product category, and upon adoption of a new or revised 
        product category provide an explanation of the decision that 
        responds to significant public comments.''.

SEC. 927. ENERGY CONSERVATION STANDARDS FOR CENTRAL AIR CONDITIONERS 
              AND HEAT PUMPS.

    Section 325(d) of the Energy Policy and Conservation Act (42 U.S.C. 
6295(d)) is amended to read as follows:
            ``(1) Except as provided in paragraph (3), the seasonal 
        energy efficiency ratio of central air conditioners and central 
        air conditioning heat pumps manufactured on or after January 
        23, 2006 shall be no less than 13.0.
            ``(2) Except as provided in paragraph (4), the heating 
        seasonal performance factor of central air conditioning heat 
        pumps manufactured on or after January 23, 2006 shall be no 
        less than 7.7.
            ``(3) The seasonal energy efficiency ratio of central air 
        conditioners or central air conditioning heat pumps 
        manufactured on or after January 23, 2006 shall be no less than 
        12.0 for products that--
                    ``(A) have a rated cooling capacity equal to or 
                less than 30,000 Btu per hour;
                    ``(B) have an outdoor or indoor unit having at 
                least two overall exterior dimensions or an overall 
                displacement that--
                            ``(i) is substantially smaller than those 
                        of other units that are currently installed in 
                        site-built single family homes, and of a 
                        similar cooling or heating capacity, and
                            ``(ii) if increased would result in a 
                        significant increase in the cost of 
                        installation or would result in a significant 
                        loss in the utility of the product to the 
                        consumer; and
                    ``(C) were available for purchase in the United 
                States as of December 1, 2000.
            ``(4) The heating seasonal performance factor of central 
        air conditioning heat pumps manufactured on or after January 
        25, 2006 shall not be less than 7.4 for products that meet the 
        criteria in paragraph (3).
            ``(5) The Secretary may postpone the requirements of 
        paragraphs (3) and (4) for specific product types until a date 
        no later than January 23, 2010.
            ``(6) The Secretary shall publish a final rule not later 
        than January 1, 2006 to determine whether the standards in 
        effect for central air conditioners and central air 
        conditioning heat pumps should be amended. Such rule shall 
        provide that any amendment shall apply to products manufactured 
        on or after January 1, 2011.''.

SEC. 928. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL CONSUMER AND 
              COMMERCIAL PRODUCTS.

    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.--
            ``(1) Initial rulemaking.--
                    ``(A) The Secretary shall, within 18 months after 
                the date of enactment of this subsection, prescribe by 
                notice and comment, definitions of standby mode and 
                test procedures for the standby mode power use of 
                battery chargers and external power supplies. In 
                establishing these test procedures, the Secretary shall 
                consider, among other factors, existing test procedures 
                used for measuring energy consumption in standby mode 
                and assess the current and projected future market for 
                battery chargers and external power supplies. This 
                assessment shall include estimates of the significance 
                of potential energy savings from technical improvements 
                to these products and suggested product classes for 
                standards. Prior to the end of this time period, the 
                Secretary shall hold a scoping workshop to discuss and 
                receive comments on plans for developing energy 
                conservation standards for standby mode energy use for 
                these products.
                    ``(B) The Secretary shall, within 3 years after the 
                date of enactment of this subsection, issue a final 
                rule that determines whether energy conservation 
                standards shall be promulgated for battery chargers and 
                external power supplies or classes thereof. For each 
                product class, any such standards shall be set at the 
                lowest level of standby energy use that--
                            (i) meets the criteria of subsections (o), 
                        (p), (q), (r), (s) and (t); and
                            (ii) will result in significant overall 
                        annual energy savings, considering both standby 
                        mode and other operating modes.
            ``(2) Designation of additional covered products.--
                    ``(A) Not later than 180 days after the date of 
                enactment of this subsection, the Secretary shall 
                publish for public comment and public hearing a notice 
                to determine whether any noncovered products should be 
                designated as covered products for the purpose of 
                instituting a rulemaking under this section to 
                determine whether an energy conservation standard 
                restricting standby mode energy consumption, should be 
                promulgated; providing that any restriction on standby 
                mode energy consumption shall be limited to major 
                sources of such consumption.
                    ``(B) In making the determinations pursuant to 
                subparagraph (A) of whether to designate new covered 
                products and institute rulemakings, the Secretary 
                shall, among other relevant factors and in addition to 
                the criteria in section 322(b), consider--
                            ``(i) standby mode power consumption 
                        compared to overall product energy consumption; 
                        and
                            ``(ii) the priority and energy savings 
                        potential of standards which may be promulgated 
                        under this subsection compared to other 
                        required rulemakings under this section and the 
available resources of the Department to conduct such rulemakings.
                    ``(C) Not later than one year after the date of 
                enactment of this subsection, the Secretary shall issue 
                a determination of any new covered products for which 
                he intends to institute rulemakings on standby mode 
                pursuant to this section and he shall state the dates 
                by which he intends to initiate those rulemakings.
            ``(3) Review of standby energy use in covered products.--In 
        determining pursuant to section 323 whether test procedures and 
        energy conservation standards pursuant to section 325 should be 
        revised, the Secretary shall consider for covered products 
        which are major sources of standby mode energy consumption 
        whether to incorporate standby mode into such test procedures 
        and energy conservation standards, taking into account, among 
        other relevant factors, the criteria for non-covered products 
        in subparagraph (B) of this subsection.
            ``(4) Rulemaking for standby mode.--
                    ``(A) Any rulemaking instituted under this 
                subsection or for covered products under this section 
                which restricts standby mode power consumption shall be 
                subject to the criteria and procedures for issuing 
                energy conservation standards set forth in section 325 
                and the criteria set forth in paragraph 2(B) of this 
                subsection.
                    ``(B) No standard can be proposed for new covered 
                products or covered products in a standby mode unless 
                the Secretary has promulgated applicable test 
                procedures for each product pursuant to section 323.
                    ``(C) The provisions of section 327 shall apply to 
                new covered products which are subject to the 
                rulemakings for standby mode after a final rule has 
                been issued.
            ``(5) Effective date.--Any standard promulgated under this 
        subsection shall be applicable to products manufactured or 
        imported three years after the date of promulgation.
            ``(6) Voluntary programs to reduce standby mode energy 
        use.--The Secretary and the Administrator shall collaborate and 
        develop programs, including programs pursuant to section 324A 
        and other voluntary industry agreements or codes of conduct, 
        which are designed to reduce standby mode energy use.
    ``(v) Suspended Ceiling Fans, Vending Machines, Unit Heaters, and 
Commercial Refrigerators, Freezers and Refrigerator-Freezers.--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 suspended 
ceiling fans, refrigerated bottled or canned beverage vending machines, 
unit heaters, and commercial refrigerators, freezers and refrigerator-
freezers. In establishing standards under this subsection, the 
Secretary shall use the criteria and procedures contained in 
subsections (l) and (m). Any standard prescribed under this subsection 
shall apply to products manufactured 3 years after the date of 
publication of a final rule establishing such standard.
    ``(w) Illuminated Exit Signs.--Illuminated exit signs manufactured 
on or after January 1, 2005 shall meet the Energy Star Program 
performance requirements for illuminated exit signs prescribed by the 
Environmental Protection Agency as in effect on the date of enactment 
of this subsection.
    ``(x) Torchieres.--Torchieres manufactured on or after January 1, 
2005--
            ``(1) shall consume not more than 190 watts of power; and
            ``(2) shall not be capable of operating with lamps that 
        total more than 190 watts.
    ``(y) Low Voltage Dry-Type Transformers.--The efficiency of low 
voltage dry-type transformers manufactured on or after January 1, 2005 
shall be the Class I Efficiency Levels for low voltage dry-type 
transformers specified in Table 4-2 of the `Guide for Determining 
Energy Efficiency for Distribution Transformers' published by the 
National Electrical Manufacturers Association (NEMA TP-1-1996).''.

SEC. 929. 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 at the end the following:
    ``(c) HVAC Maintenance.--(1) For the purpose of ensuring that 
installed air conditioning and heating systems operate at their maximum 
rated efficiency levels, the Secretary shall, within 180 days of the 
date of enactment of this subsection, carry out a program to educate 
homeowners and small business owners concerning the energy savings 
resulting from properly conducted maintenance of air conditioning, 
heating, and ventilating systems.
    ``(2) The Secretary may carry out the program in cooperation with 
industry trade associations, industry members, and energy efficiency 
organizations.''.

                     Subtitle D--Housing Efficiency

SEC. 931. 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. 932. 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. 933. 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. 934. 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. 935. 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. 936. 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 D--INTEGRATION OF ENERGY POLICY AND CLIMATE CHANGE POLICY 
               TITLE X--CLIMATE CHANGE POLICY FORMULATION

                       Subtitle A--Global Warming

SEC. 1001. SENSE OF CONGRESS ON GLOBAL WARMING.

    (a) Findings. The Congress makes the following findings:
            (1) Evidence continues to build that increases in 
        atmospheric concentrations of man-made greenhouse gases are 
        contributing to global climate change.
            (2) The Intergovernmental Panel on Climate Change (IPCC) 
        has concluded that ``there is new and stronger evidence that 
        most of the warming observed over the last 50 years is 
        attributable to human activities'' and that the Earth's average 
        temperature can be expected to rise between 2.5 and 10.4 
        degrees Fahrenheit in this century.
            (3) The National Academy of Sciences confirmed the findings 
        of the IPCC, stating that ``the IPCC's conclusion that most of 
        the observed warming of the last 50 years is likely to have 
        been due to the increase of greenhouse gas concentrations 
        accurately reflects the current thinking of the scientific 
        community on this issue'' and that ``there is general agreement 
        that the observed warming is real and particularly strong 
        within the past twenty years''.
            (4) The IPCC has stated that in the last 40 years, the 
        global average sea level has risen, ocean heat content has 
        increased, and snow cover and ice extent have decreased, which 
        threatens to inundate low-lying island nations and coastal 
        regions throughout the world.
            (5) The Environmental Protection Agency has found that 
        global warming may harm the United States by altering crop 
        yields, accelerating sea level rise, and increasing the spread 
        of tropical infectious diseases.
            (6) In 1992, the United States ratified the United Nations 
        Framework Convention of Climate Change, done at New York on May 
        9, 1992, the ultimate objective of which is the ``stabilization 
        of greenhouse gas concentrations in the atmosphere at a level 
        that would prevent dangerous anthropogenic interference with 
        the climate system'', and which stated in part ``the Parties to 
        the Convention are to implement policies with the aim of 
        returning . . . to their 1990 levels anthropogenic emissions of 
        carbon dioxide and other greenhouse gases.''
            (7) There is a shared international responsibility to 
        address this problem, as industrial nations are the largest 
        historic and current emitters of greenhouse gases and 
        developing nations' emissions will significantly increase in 
        the future.
            (8) The United Nations Framework Convention on Climate 
        Change further states that ``developed country Parties should 
        take the lead in combating climate change and the adverse 
        effects thereof'', as these nations are the largest historic 
        and current emitters of greenhouse gases.
            (9) Senate Resolution 98 of July 1997, which expressed that 
        developing nations, especially the largest emitters, must also 
        be included in any future, binding climate change treaty and 
        such a treaty must not result in serious harm to the United 
        States economy, should not cause the United States to abandon 
        its shared responsibility to help find a solution to the global 
        climate change dilemma.
            (10) American businesses need to know how governments 
        worldwide will respond to the threat of global warming.
            (11) The United States has benefitted and will continue to 
        benefit from investments in the research, development and 
        deployment of a range of clean energy and efficiency 
        technologies that can mitigate global warming and that can make 
        the United States economy more productive, bolster energy 
        security, create jobs, and protect the environment.
    (b) Sense of Congress.--It is the sense of the United States 
Congress that the United States should demonstrate international 
leadership and responsibility in mitigating the health, environmental, 
and economic threats posed by global warming by:
            (1) taking responsible action to ensure significant and 
        meaningful reductions in emissions of greenhouse gases from all 
        sectors;
            (2) creating flexible international and domestic 
        mechanisms, including joint implementation, technology 
        deployment, emissions trading and carbon sequestration projects 
        that will reduce, avoid, and sequester greenhouse gas 
        emissions; and
            (3) participating in international negotiations, including 
        putting forth a proposal at the next meeting of the Conference 
        of the Parties, with the objective of securing United States' 
        participation in a revised Kyoto Protocol or other future 
        binding climate change agreements in a manner that is 
        consistent with the environmental objectives of the Framework 
        Convention on Climate Change, that protects the economic 
        interests of the United States, and recognizes the shared 
        international responsibility for addressing climate change, 
        including developing country participation.

                  Subtitle B--Climate Change Strategy

SEC. 1011. SHORT TITLE.

    This title may be cited as the ``Climate Change Strategy and 
Technology Innovation Act of 2002''.

SEC. 1012. FINDINGS.

    Congress finds that--
            (1) evidence continues to build that increases in 
        atmospheric concentrations of greenhouse gases are contributing 
        to global climate change;
            (2) in 1992, the Senate ratified the United Nations 
        Framework Convention on Climate Change, done at New York on May 
        9, 1992, the ultimate objective of which is the ``stabilization 
        of greenhouse gas concentrations in the atmosphere at a level 
        that would prevent dangerous anthropogenic interference with 
        the climate system'';
            (3) although science currently cannot determine precisely 
        what atmospheric concentrations are ``dangerous'', the current 
        trajectory of greenhouse gas emissions will lead to a continued 
        rise in greenhouse gas concentrations in the atmosphere, not 
        stabilization;
            (4) the remaining scientific uncertainties call for 
        temperance of human actions, but not inaction;
            (5) greenhouse gases are associated with a wide range of 
        human activities, including energy production, transportation, 
        agriculture, forestry, manufacturing, buildings, and other 
        activities;
            (6) the economic consequences of poorly designed climate 
        change response strategies, or of inaction, may cost the global 
        economy trillions of dollars;
            (7) a large share of this economic burden would be borne by 
        the United States;
            (8) stabilization of greenhouse gas concentrations in the 
        atmosphere will require transformational change in the global 
        energy system and other emitting sectors at an almost 
        unimaginable level--a veritable industrial revolution is 
        required;
            (9) such a revolution can occur only if the revolution is 
        preceded by research and development that leads to bold 
        technological breakthroughs;
            (10) over the decade preceding the date of enactment of 
        this Act--
                    (A) energy research and development budgets in the 
                public and private sectors have declined precipitously 
                and have not been focused on the climate change 
                response challenge; and
                    (B) the investments that have been made have not 
                been guided by a comprehensive strategy;
            (11) the negative trends in research and development 
        funding described in paragraph (10) must be reversed with a 
        focus on not only traditional energy research and development, 
        but also bolder, breakthrough research;
            (12) much more progress could be made on the issue of 
        climate change if the United States were to adopt a new 
        approach for addressing climate change that included, as an 
        ultimate long-term goal--
                    (A) stabilization of greenhouse gas concentrations 
                in the atmosphere at a level that would prevent 
                dangerous anthropogenic interference with the climate 
                system; and
                    (B) a response strategy with 4 key elements 
                consisting of--
                            (i) definition of interim emission 
                        mitigation levels, that, coupled with specific 
                        mitigation approaches and after taking into 
                        account actions by other nations (if any), 
                        would result in stabilization of greenhouse gas 
                        concentrations;
                            (ii) technology development, including--
                                    (I) a national commitment to double 
                                energy research and development by the 
                                United States public and private 
                                sectors; and
                                    (II) in carrying out such research 
                                and development, a national commitment 
                                to provide a high degree of emphasis on 
                                bold, breakthrough technologies that 
                                will make possible a profound 
                                transformation of the energy, 
                                transportation, industrial, 
                                agricultural, and building sectors of 
                                the United States;
                            (iii) climate adaptation research that--
                                    (I) focuses on response actions 
                                necessary to adapt to climate change 
                                that may have already occurred;
                                    (II) focuses on response actions 
                                necessary to adapt to climate change 
                                that may occur under any future climate 
                                change scenario;
                            (iv) climate science research that--
                                    (I) builds on the substantial 
                                scientific understanding of climate 
                                change that exists as of the date of 
                                enactment of this Act;
                                    (II) focuses on resolving the 
                                remaining scientific, technical, and 
                                economic uncertainties to aid in the 
                                development of sound response 
                                strategies; and
            (13) inherent in each of the 4 key elements of the response 
        strategy is consideration of the international nature of the 
        challenge, which will require--
                    (A) establishment of joint climate response 
                strategies and joint research programs;
                    (B) assistance to developing countries and 
                countries in transition for building technical and 
                institutional capacities and incentives for addressing 
                the challenge; and
                    (C) promotion of public awareness of the issue.

SEC. 1013. PURPOSE.

    The purpose of this title is to implement the new approach 
described in section 1012(12) by developing a national focal point for 
climate change response through--
            (1) the establishment of the National Office of Climate 
        Change Response within the Executive Office of the President to 
        develop the United States Climate Change Response Strategy 
        that--
                    (A) incorporates the 4 key elements of that new 
                approach;
                    (B) is supportive of and integrated in the overall 
                energy, transportation, industrial, agricultural, 
                forestry, and environmental policies of the United 
                States;
                    (C) takes into account--
                            (i) the diversity of energy sources and 
                        technologies;
                            (ii) supply-side and demand-side solutions; 
                        and
                            (iii) national infrastructure, energy 
                        distribution, and transportation systems;
                    (D) provides for the inclusion and equitable 
                participation of Federal, State, tribal, and local 
                government agencies, nongovernmental organizations, 
                academia, scientific bodies, industry, the public, and 
                other interested parties;
                    (E) incorporates new models of Federal-State 
                cooperation;
                    (F) defines a comprehensive energy technology 
                research and development program that--
                            (i) recognizes the important contributions 
                        that research and development programs in 
                        existence on the date of enactment of this 
                        title make toward addressing the climate change 
                        response challenge; and
                            (ii) includes an additional research and 
                        development agenda that focuses on the bold, 
                        breakthrough technologies that are critical to 
                        the long-term stabilization of greenhouse gas 
                        concentrations in the atmosphere;
                    (G) includes consideration of other efforts to 
                address critical environmental and health concerns, 
                including clean air, clean water, and responsible land 
                use policies; and
                    (H) incorporates initiatives to promote the 
                deployment of clean energy technologies developed in 
                the United States and abroad;
            (2) the establishment of the Interagency Task Force, 
        chaired by the Director of the White House Office, to serve as 
        the primary mechanism through which the heads of Federal 
        agencies work together to develop and implement the Strategy;
            (3) the establishment of the Office of Climate Change 
        Technology within the Department of Energy--
                    (A) to manage, as its primary responsibility, an 
                innovative research and development program that 
                focuses on the bold, breakthrough technologies that are 
                critical to the long-term stabilization of greenhouse 
                gas concentrations in the atmosphere; and
                    (B) to provide analytical support and data to the 
                White House Office, other agencies, and the public;
            (4) the establishment of an independent review board--
                    (A) to review the Strategy and annually assess 
                United States and international progress toward the 
                goal of stabilization of greenhouse gas concentrations 
                in the atmosphere at a level that would prevent 
                dangerous anthropogenic interference with the climate 
                system; and
                    (B) to assess--
                            (i) the performance of each Federal agency 
                        that has responsibilities under the Strategy; 
                        and
                            (ii) the adequacy of the budget of each 
                        such Federal agency to fulfill the 
                        responsibilities of the Federal agency under 
                        the Strategy; and
            (5) the establishment of offices in, or the carrying out of 
        activities by, the Department of Agriculture, the Department of 
        Transportation, the Department of Commerce, the Environmental 
        Protection Agency, and other Federal agencies as necessary to 
        carry out this title.

SEC. 1014. DEFINITIONS.

    In this title:
            (1) Climate-friendly technology.--The term ``climate-
        friendly technology'' means any energy supply or end-use 
        technology that, over the life of the technology and compared 
        to similar technology in commercial use as of the date of 
        enactment of this Act--
                    (A) results in reduced emissions of greenhouse 
                gases;
                    (B) may substantially lower emissions of other 
                pollutants; and
                    (C) may generate substantially smaller or less 
                hazardous quantities of solid or liquid waste.
            (2) Department.--The term ``Department'' means the 
        Department of Energy.
            (3) Department office.--The term ``Department Office'' 
        means the Office of Climate Change Technology of the Department 
        established by section 1017(a).
            (4) Federal agency.--The term ``Federal agency'' has the 
        meaning given the term ``agency'' in section 551 of title 5, 
        United States Code.
            (5) Greenhouse gas.--The term ``greenhouse gas'' means--
                    (A) an anthropogenic gaseous constituent of the 
                atmosphere (including carbon dioxide, methane, nitrous 
                oxide, chlorofluorocarbons, hydrofluorocarbons, 
                perfluorocarbons, sulfur hexafluoride, and tropospheric 
                ozone) that absorbs and re-emits infrared radiation and 
                influences climate; and
                    (B) an anthropogenic aerosol (such as black soot) 
                that absorbs solar radiation and influences climate.
            (6) Interagency task force.--The term ``Interagency Task 
        Force'' means the United States Climate Change Response 
        Interagency Task Force established under section 1016(d).
            (7) Key element.--The term ``key element'', with respect to 
        the Strategy, means--
                    (A) definition of interim emission mitigation 
                levels, that, coupled with specific mitigation 
                approaches and after taking into account actions by 
                other nations (if any), would result in stabilization 
                of greenhouse gas concentrations;
                    (B) technology development, including--
                            (i) a national commitment to double energy 
                        research and development by the United States 
                        public and private sectors; and
                            (ii) in carrying out such research and 
                        development, a national commitment to provide a 
                        high degree of emphasis on bold, breakthrough 
                        technologies that will make possible a profound 
                        transformation of the energy, transportation, 
                        industrial, agricultural, and building sectors 
                        of the United States;
                    (C) climate adaptation research that--
                            (i) focuses on response actions necessary 
                        to adapt to climate change that may have 
                        already occurred;
                            (ii) focuses on response actions necessary 
                        to adapt to climate change that may occur under 
                        any future climate change scenario; and
                    (D) climate science research that--
                            (i) builds on the substantial scientific 
                        understanding of climate change that exists as 
                        of the date of enactment of this Act; and
                            (ii) focuses on resolving the remaining 
                        scientific, technical, and economic 
                        uncertainties to aid in the development of 
                        sound response strategies.
            (8) Qualified individual.--
                    (A) In general.--The term ``qualified individual'' 
                means an individual who has demonstrated expertise and 
                leadership skills to draw on other experts in diverse 
                fields of knowledge that are relevant to addressing the 
                climate change response challenge.
                    (B) Fields of knowledge.--The fields of knowledge 
                referred to in subparagraph (A) are--
                            (i) the science of primary and secondary 
                        climate change impacts;
                            (ii) energy and environmental economics;
                            (iii) technology transfer and diffusion;
                            (iv) the social dimensions of climate 
                        change;
                            (v) climate change adaptation strategies;
                            (vi) fossil, nuclear, and renewable energy 
                        technology;
                            (vii) energy efficiency and energy 
                        conservation;
                            (viii) energy systems integration;
                            (ix) engineered and terrestrial carbon 
                        sequestration;
                            (x) transportation, industrial, and 
                        building sector concerns;
                            (xi) regulatory and market-based mechanisms 
                        for addressing climate change;
                            (xii) risk and decision analysis;
                            (xiii) strategic planning; and
                            (xiv) the international implications of 
                        climate change response strategies.
            (9) Review board.--The term ``Review Board'' means the 
        United States Climate Change Response Strategy Review Board 
        established by section 1019.
            (10) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (11) Stabilization of greenhouse gas concentrations.--The 
        term ``stabilization of greenhouse gas concentrations'' means 
        the stabilization of greenhouse gas concentrations in the 
        atmosphere at a level that would prevent dangerous 
        anthropogenic interference with the climate system, recognizing 
        that such a level should be achieved within a time frame 
        sufficient to allow ecosystems to adapt naturally to climate 
        change, to ensure that food production is not threatened and to 
        enable economic development to proceed in a sustainable manner, 
        as contemplated by the United Nations Framework Convention on 
        Climate Change, done at New York on May 9, 1992.
            (12) Strategy.--The term ``Strategy'' means the United 
        States Climate Change Response Strategy developed under section 
        1015.
            (13) White house office.--The term ``White House Office'' 
        means the National Office of Climate Change Response of the 
        Executive Office of the President established by section 
        1016(a).

SEC. 1015. UNITED STATES CLIMATE CHANGE RESPONSE STRATEGY.

    (a) In General.--The Director of the White House Office shall 
develop the United States Climate Change Response Strategy, which 
shall--
            (1) have the long-term goal of stabilization of greenhouse 
        gas concentrations through actions taken by the United States 
        and other nations;
            (2) recognize that accomplishing the long-term goal of 
        stabilization will take from many decades to more than a 
        century, but acknowledging that significant actions must begin 
        in the near term;
            (3) build on the 4 key elements;
            (4) be developed on the basis of an examination of a broad 
        range of emissions levels and dates for achievement of those 
        levels (including those evaluated by the Intergovernmental 
        Panel on Climate Change and those consistent with U.S. treaty 
        commitments) that, after taking into account by actions other 
        nations (if any), would culminate in the stabilization of 
        greenhouse gas concentrations;
            (5) consider the broad range of activities and actions that 
        can be taken by United States entities to reduce, avoid, or 
        sequester greenhouse gas emissions both within the United 
        States and in other nations through the use of market 
        mechanisms, which may include but not limited to mitigation 
        activities, terrestrial sequestration, earning offsets through 
        carbon capture or project-based activities, trading of 
        emissions credits in domestic and international markets, and 
        the application of the resulting credits from any of the above 
        within the United States;
            (6) minimize any adverse short-term and long-term social, 
        economic, national security, and environmental impacts, 
        including ensuring that the strategy is developed in an 
        economically and environmentally sound manner;
            (7) incorporate mitigation approaches leading to the 
        development and deployment of advanced technologies and 
        practices that will reduce, avoid, or sequester greenhouse gas 
        emissions;
            (8) recognize that the climate change response strategy is 
        intended to guide the nation's effort to address climate 
        change, but it shall not create a legal obligation on the part 
        of any person or entity other than the duties of the Director 
        of the White House Office and Interagency Task Force in the 
        development of the strategy;
            (9) be consistent with the goals of energy, transportation, 
        industrial, agricultural, forestry, environmental, economic, 
        and other relevant policies of the United States;
            (10) be consistent with the goals of energy, 
        transportation, industrial, agricultural, forestry, 
        environmental, and other relevant policies of the United 
        States;
            (11) have a scope that considers the totality of United 
        States public, private, and public-private sector actions that 
        bear on the long-term goal;
            (12) be based on an evaluation of a wide range of 
        approaches for achieving the long-term goal, including 
        evaluation of--
                    (A) a variety of cost-effective Federal and State 
                policies, programs, standards, and incentives;
                    (B) policies that integrate and promote innovative, 
                market-based solutions in the United States and in 
                foreign countries; and
                    (C) participation in other international 
                institutions, or in the support of international 
                activities, that are established or conducted to 
                facilitate stabilization of greenhouse gas 
                concentrations;
            (13) in the final recommendations of the Strategy, 
        emphasize response strategies that achieve the long-term goal 
        and provide specific recommendations concerning--
                    (A) measures determined to be appropriate for 
                short-term implementation, giving preference to cost-
                effective and technologically feasible measures that 
                will--
                            (i) produce measurable net reductions in 
                        United States emissions that lead toward 
                        achievement of the long-term goal; and
                            (ii) minimize any adverse short-term and 
                        long-term economic, environmental, national 
                        security, and social impacts on the United 
                        States;
                    (B) the development of technologies that have the 
                potential for long-term implementation--
                            (i) giving preference to technologies that 
                        have the potential to reduce significantly the 
                        overall cost of stabilization of greenhouse gas 
                        concentrations; and
                            (ii) considering a full range of energy 
                        sources, energy conversion and use 
                        technologies, and efficiency options;
                    (C) such changes in institutional and technology 
                systems as are necessary to adapt to climate change in 
                the short-term and the long-term;
                    (D) such review, modification, and enhancement of 
                the scientific, technical, and economic research 
                efforts of the United States, and improvements to the 
                data resulting from research, as are appropriate to 
                improve the accuracy of predictions concerning climate 
                change and the economic and social costs and 
                opportunities relating to climate change; and
                    (E) changes that should be made to project and 
                grant evaluation criteria under other Federal research 
                and development programs so that those criteria do not 
                inhibit development of climate-friendly technologies;
            (14) be developed in a manner that provides for meaningful 
        participation by, and consultation among, Federal, State, 
        tribal, and local government agencies, nongovernmental 
        organizations, academia, scientific bodies, industry, the 
        public, and other interested parties in accordance with 
        subsections (b)(4)(C)(iv)(II) and (d)(3)(B)(iii) of section 
        1016;
            (15) address how the United States should engage State, 
        tribal, and local governments in developing and carrying out a 
        response to climate change;
            (16) promote, to the maximum extent practicable, public 
        awareness, outreach, and information-sharing to further the 
        understanding of the full range of climate change-related 
        issues;
            (17) provide a detailed explanation of how the measures 
        recommended by the Strategy will ensure that they do not result 
        in serious harm to the economy of the United States;
            (18) provide a detailed explanation of how the measures 
        recommended by the Strategy will achieve the long-term goal of 
        stabilization of greenhouse gas concentrations;
            (19) include any recommendations for legislative and 
        administrative actions necessary to implement the Strategy;
            (20) serve as a framework for climate change response 
        actions by all Federal agencies;
            (21) recommend which Federal agencies are, or should be, 
        responsible for the various aspects of implementation of the 
        Strategy and any budgetary implications;
            (22) address how the United States should engage foreign 
        governments in developing an international response to climate 
        change; and
            (23) be subject to review by an independent review board in 
        accordance with section 1019.
    (b) Submission to Congress.--Not later than 1 year after the date 
of enactment of this title, the President shall submit to Congress the 
Strategy.
    (c) Updating.--Not later than 2 years after the date of submission 
of the Strategy to Congress under subsection (b), and at the end of 
each 2-year period thereafter, the President shall submit to Congress 
an updated version of the Strategy.
    (d) Progress Reports.--Not later than 1 year after the date of 
submission of the Strategy to Congress under subsection (b), and at the 
end of each 1-year period thereafter, the President shall submit to 
Congress a report that--
            (1) describes the progress on implementation of the 
        Strategy; and
            (2) provides recommendations for improvement of the 
        Strategy and the implementation of the Strategy.
    (e) Alignment With Energy, Transportation, Industrial, 
Agricultural, Forestry, and Other Policies.--The President, the 
Director of the White House Office, the Secretary, and the other 
members of the Interagency Task Force shall work together to align the 
actions carried out under the Strategy and actions associated with the 
energy, transportation, industrial, agricultural, forestry, and other 
relevant policies of the United States so that the objectives of both 
the Strategy and the policies are met without compromising the climate 
change-related goals of the Strategy or the goals of the policies.

SEC. 1016. NATIONAL OFFICE OF CLIMATE CHANGE RESPONSE OF THE EXECUTIVE 
              OFFICE OF THE PRESIDENT.

    (a) Establishment.--
            (1) In general.--There is established, within the Executive 
        Office of the President, the National Office of Climate Change 
        Response.
            (2) Focus.--The White House Office shall have the focus of 
        achieving the long-term goal of stabilization of greenhouse gas 
        concentrations while minimizing adverse short-term and long-
        term economic and social impacts.
            (3) Duties.--Consistent with paragraph (2), the White House 
        Office shall--
                    (A) establish policies, objectives, and priorities 
                for the Strategy;
                    (B) in accordance with subsection (d), establish 
                the Interagency Task Force to serve as the primary 
                mechanism through which the heads of Federal agencies 
                shall assist the Director of the White House Office in 
                developing and implementing the Strategy;
                    (C) to the maximum extent practicable, ensure that 
                the Strategy is based on objective, quantitative 
                analysis, drawing on the analytical capabilities of 
                Federal and State agencies, especially the Department 
                Office;
                    (D) advise the President concerning necessary 
                changes in organization, management, budgeting, and 
                personnel allocation of Federal agencies involved in 
                climate change response activities; and
                    (E) advise the President and notify a Federal 
                agency if the policies and discretionary programs of 
                the agency are not well aligned with, or are not 
                contributing effectively to, the long-term goal of 
                stabilization of greenhouse gas concentrations.
    (b) Director of the White House Office.--
            (1) In general.--The White House Office shall be headed by 
        a Director, who shall report directly to the President.
            (2) Appointment.--The Director of the White House Office 
        shall be a qualified individual appointed by the President, by 
        and with the advice and consent of the Senate.
            (3) Duties of the director of the white house office.--
                    (A) Strategy.--In accordance with section 1015, the 
                Director of the White House Office shall coordinate the 
                development and updating of the Strategy.
                    (B) Interagency task force.--The Director of the 
                White House Office shall serve as Chairperson of the 
                Interagency Task Force.
                    (C) Advisory duties.--
                            (i) Climate, energy, transportation, 
                        industrial, agricultural, building, forestry, 
                        and other programs.--The Director of the White 
                        House Office, using an integrated perspective 
                        considering the totality of actions in the 
                        United States, shall advise the President and 
                        the heads of Federal agencies on--
                                    (I) the extent to which United 
                                States energy, transportation, 
                                industrial, agricultural, forestry, 
                                building, and other relevant programs 
                                are capable of producing progress on 
                                the long-term goal of stabilization of 
                                greenhouse gas concentrations; and
                                    (II) the extent to which proposed 
                                or newly created energy, 
                                transportation, industrial, 
                                agricultural, forestry, building, and 
                                other relevant programs positively or 
                                negatively affect the ability of the 
                                United States to achieve the long-term 
                                goal of stabilization of greenhouse gas 
                                concentrations.
                            (ii) Tax, trade, and foreign policies.--The 
                        Director of the White House Office, using an 
                        integrated perspective considering the totality 
                        of actions in the United States, shall advise 
                        the President and the heads of Federal agencies 
                        on--
                                    (I) the extent to which the United 
                                States tax policy, trade policy, and 
                                foreign policy are capable of producing 
                                progress on the long-term goal of 
                                stabilization of greenhouse gas 
                                concentrations; and
                                    (II) the extent to which proposed 
                                or newly created tax policy, trade 
                                policy, and foreign policy positively 
                                or negatively affect the ability of the 
                                United States to achieve the long-term 
                                goal of stabilization of greenhouse gas 
                                concentrations.
                            (iii) International treaties.--The 
                        Secretary of State, acting in conjunction with 
                        the Interagency Task Force and using the 
                        analytical tools available to the White House 
                        Office, shall provide to the Director of the 
                        White House Office an opinion that--
                                    (I) specifies, to the maximum 
                                extent practicable, the economic and 
                                environmental costs and benefits of any 
                                proposed international treaties or 
                                components of treaties that have an 
                                influence on greenhouse gas management; 
                                and
                                    (II) assesses the extent to which 
                                the treaties advance the long-term goal 
                                of stabilization of greenhouse gas 
                                concentrations, while minimizing 
                                adverse short-term and long-term 
                                economic and social impacts and 
                                considering other impacts.
                            (iv) Consultation.--
                                    (I) With members of interagency 
                                task force.--To the extent practicable 
                                and appropriate, the Director of the 
                                White House Office shall consult with 
                                all members of the Interagency Task 
                                Force and other interested parties 
                                before providing advice to the 
                                President.
                                    (II) With other interested 
                                parties.--The Director of the White 
                                House Office shall establish a process 
                                for obtaining the meaningful 
                                participation of Federal, State, 
                                tribal, and local government agencies, 
                                nongovernmental organizations, 
                                academia, scientific bodies, industry, 
                                the public, and other interested 
                                parties in the formulation of advice to 
                                be provided to the President.
                    (D) Public education, awareness, outreach, and 
                information-sharing.--The Director of the White House 
                Office, to the maximum extent practicable, shall 
                promote public awareness, outreach, and information-
                sharing to further the understanding of the full range 
                of climate change-related issues.
            (4) Annual reports.--The Director of the White House 
        Office, in consultation with the Interagency Task Force and 
        other interested parties, shall prepare an annual report for 
        submission by the President to Congress that--
                    (A) assesses progress in implementation of the 
                Strategy;
                    (B) assesses progress, in the United States and in 
                foreign countries, toward the long-term goal of 
                stabilization of greenhouse gas concentrations;
                    (C) assesses progress toward meeting climate 
                change-related international obligations;
                    (D) makes recommendations for actions by the 
                Federal Government designed to close any gap between 
                progress-to-date and the measures that are necessary to 
                achieve the long-term goal of stabilization of 
                greenhouse gas concentrations; and
                    (E) addresses the totality of actions in the United 
                States that relate to the 4 key elements.
            (5) Analysis.--During development of the Strategy, 
        preparation of the annual reports submitted under paragraph 
        (5), and provision of advice to the President and the heads of 
        Federal agencies, the Director of the White House Office shall 
        place significant emphasis on the use of objective, 
        quantitative analysis, taking into consideration any 
        uncertainties associated with the analysis.
    (c) Staff.--
            (1) In general.--The Director of the White House Office 
        shall employ a professional staff of not more than 25 
        individuals to carry out the duties of the White House Office.
            (2) Intergovernmental personnel and fellowships.--The 
        Director of the White House Office may use the authority 
        provided by the Intergovernmental Personnel Act of 1970 (42 
        U.S.C. 4701 et seq.) and subchapter VI of chapter 33 of title 
        5, United States Code, and fellowships, to obtain staff from 
        academia, scientific bodies, nonprofit organizations, and 
        national laboratories, for appointments of a limited term.
    (d) Interagency Task Force.--
            (1) In general.--The Director of the White House Office 
        shall establish the United States Climate Change Response 
        Interagency Task Force.
            (2) Composition.--The Interagency Task Force shall be 
        composed of--
                    (A) the Director of the White House Office, who 
                shall serve as Chairperson;
                    (B) the Secretary of State;
                    (C) the Secretary;
                    (D) the Secretary of Commerce;
                    (E) the Secretary of the Treasury;
                    (F) the Secretary of Transportation;
                    (G) the Secretary of Agriculture;
                    (H) the Administrator of the Environmental 
                Protection Agency;
                    (I) the Administrator of the Agency for 
                International Development;
                    (J) the United States Trade Representative;
                    (K) the National Security Advisor;
                    (L) the Chairman of the Council of Economic 
                Advisers;
                    (M) the Chairman of the Council on Environmental 
                Quality;
                    (N) the Director of the Office of Science and 
                Technology Policy;
                    (O) the Chairperson of the Subcommittee on Global 
                Change Research (which performs the functions of the 
                Committee on Earth and Environmental Sciences 
                established by section 102 of the Global Change 
                Research Act of 1990 (15 U.S.C. 2932)); and
                    (P) the heads of such other Federal agencies as the 
                Chairperson determines should be members of the 
                Interagency Task Force.
            (3) Strategy.--
                    (A) In general.--The Interagency Task Force shall 
                serve as the primary forum through which the Federal 
                agencies represented on the Interagency Task Force 
                jointly--
                            (i) assist the Director of the White House 
                        Office in developing and updating the Strategy; 
                        and
                            (ii) assist the Director of the White House 
                        Office in preparing annual reports under 
                        subsection (b)(5).
                    (B) Required elements.--In carrying out 
                subparagraph (A), the Interagency Task Force shall--
                            (i) take into account the long-term goal 
                        and other requirements of the Strategy 
                        specified in section 1015(a);
                            (ii) consult with State, tribal, and local 
                        government agencies, nongovernmental 
                        organizations, academia, scientific bodies, 
                        industry, the public, and other interested 
                        parties; and
                            (iii) build consensus around a Strategy 
                        that is based on strong scientific, technical, 
                        and economic analyses.
            (4) Working groups.--The Chairperson of the Interagency 
        Task Force may establish such topical working groups as are 
        necessary to carry out the duties of the Interagency Task 
        Force.
    (e) Provision of Support Staff.--In accordance with procedures 
established by the Chairperson of the Interagency Task Force, the 
Federal agencies represented on the Interagency Task Force shall 
provide staff from the agencies to support information, data 
collection, and analyses required by the Interagency Task Force.
    (f) Hearings.--On request of the Chairperson, the Interagency Task 
Force may hold such hearings, meet and act at such times and places, 
take such testimony, and receive such evidence as the Interagency Task 
Force considers to be appropriate.

SEC. 1017. TECHNOLOGY INNOVATION PROGRAM IMPLEMENTED THROUGH THE OFFICE 
              OF CLIMATE CHANGE TECHNOLOGY OF THE DEPARTMENT OF ENERGY.

    (a) Establishment of Office of Climate Change Technology of the 
Department of Energy.--
            (1) In general.--There is established, within the 
        Department, the Office of Climate Change Technology.
            (2) Duties.--The Department Office shall--
                    (A) manage an energy technology research and 
                development program that directly supports the Strategy 
                by--
                            (i) focusing on high-risk, bold, 
                        breakthrough technologies that--
                                    (I) have significant promise of 
                                contributing to the national climate 
                                change policy of long-term 
                                stabilization of greenhouse gas 
                                concentrations by--
                                            (aa) mitigating the 
                                        emissions of greenhouse gases;
                                            (bb) removing and 
                                        sequestering greenhouse gases 
                                        from emission streams; or
                                            (cc) removing and 
                                        sequestering greenhouse gases 
                                        from the atmosphere;
                                    (II) are not being addressed 
                                significantly by other Federal 
                                programs; and
                                    (III) would represent a substantial 
                                advance beyond technology available on 
                                the date of enactment of this title;
                            (ii) forging fundamentally new research and 
                        development partnerships among various 
                        Department, other Federal, and State programs, 
                        particularly between basic science and energy 
                        technology programs, in cases in which such 
                        partnerships have significant potential to 
                        affect the ability of the United States to 
                        achieve stabilization of greenhouse gas 
                        concentrations at the lowest possible cost;
                            (iii) forging international research and 
                        development partnerships that are in the 
                        interests of the United States and make 
                        progress on stabilization of greenhouse gas 
                        concentrations;
                            (iv) making available, through monitoring, 
                        experimentation, and analysis, data that are 
                        essential to proving the technical and economic 
                        viability of technology central to addressing 
                        climate change; and
                            (v) transitioning research and development 
                        programs to other program offices of the 
                        Department once such a research and development 
                        program crosses the threshold of high-risk 
                        research and moves into the realm of more 
                        conventional technology development;
                    (B) prepare annual reports in accordance with 
                subsection (b)(6);
                    (C) identify the total contribution of all 
                Department programs to climate change response;
                    (D) provide substantial analytical support to the 
                White House Office, particularly support in the 
                development of the Strategy and associated progress 
                reporting; and
                    (E) advise the Secretary on climate change-related 
                issues, including necessary changes in Department 
                organization, management, budgeting, and personnel 
                allocation in the programs involved in climate change 
                response-related activities.
    (b) Director of the Department Office.--
            (1) In general.--The Department Office shall be headed by a 
        Director, who shall report directly to the Secretary.
            (2) Appointment.--The Director of the Department Office 
        shall be an employee of the Federal Government who is a 
        qualified individual appointed by the President.
            (3) Term.--The Director of the Department Office shall be 
        appointed for a term of 4 years.
            (4) Vacancies.--A vacancy in the position of the Director 
        of the Department Office shall be filled in the same manner as 
        the original appointment was made.
            (5) Duties of the director of the department office.--
                    (A) Technology development.--The Director of the 
                Department Office shall manage the energy technology 
                research and development program described in 
                subsection (a)(2)(A).
                    (B) Strategy.--The Director of the Department 
                Office shall support development of the Strategy 
                through the provision of staff and analytical support.
            (C) Interagency task force.--Through active participation 
        in the Interagency Task Force, the Director of the Department 
        Office shall--
                            (i) based on the analytical capabilities of 
                        the Department Office, share analyses of 
                        alternative climate change response strategies 
                        with other members of the Interagency Task 
                        Force to assist all members in understanding--
                                    (I) the scale of the climate change 
                                response challenge; and
                                    (II) how the actions of the Federal 
                                agencies of the members positively or 
                                negatively contribute to climate change 
                                solutions; and
                            (ii) determine how the energy technology 
                        research and development program described in 
                        subsection (a)(2)(A) can be designed for 
                        maximum impact on the long-term goal of 
                        stabilization of greenhouse gas concentrations.
                    (D) Tools, data, and capabilities.--The Director of 
                the Department Office shall foster the development of 
                tools, data, and capabilities to ensure that--
                            (i) the United States has a robust 
                        capability for evaluating alternative climate 
                        change response scenarios; and
                            (ii) the Department Office provides long-
                        term analytical continuity during the terms of 
                        service of successive Presidents.
                    (E) Advisory duties.--The Director of the 
                Department Office shall advise the Secretary on all 
                aspects of climate change response.
            (6) Annual reports.--The Director of the Department Office 
        shall prepare an annual report for submission by the Secretary 
        to Congress and the White House Office that--
                    (A) assesses progress toward meeting the goals of 
                the energy technology research and development program 
                described in subsection (a)(2)(A);
                    (B) assesses the activities of the Department 
                Office;
                    (C) assesses the contributions of all energy 
                technology research and development programs of the 
                Department (including science programs) to the long-
                term goal and other requirements of the Strategy 
                specified in section 1015(a); and
                    (D) makes recommendations for actions by the 
                Department and other Federal agencies to address the 
                components of technology development that are necessary 
                to support the Strategy.
            (7) Analysis.--During development of the Strategy, annual 
        reports submitted under paragraph (6), and advice to the 
        Secretary, the Director of the Department Office shall place 
        significant emphasis on the use of objective, quantitative 
        analysis, taking into consideration any associated 
        uncertainties.
    (c) Staff.--The Director of the Department Office shall employ a 
professional staff of not more than 25 individuals to carry out the 
duties of the Department Office.
    (d) Intergovernmental Personnel and Fellowships.--The Department 
Office may use the authority provided by the Intergovernmental 
Personnel Act of 1970 (42 U.S.C. 4701 et seq.), subchapter VI of 
chapter 33 of title 5, United States Code, and other Departmental 
personnel authorities, to obtain staff from academia, scientific 
bodies, nonprofit organizations, industry, and national laboratories, 
for appointments of a limited term.
    (e) Relationship to Other Department Programs.--Each project 
carried out by the Department Office shall be--
            (1) initiated only after consultation with 1 or more other 
        appropriate program offices of the Department that support 
        research and development in areas relating to the project;
            (2) managed by the Department Office; and
            (3) in the case of a project that reaches a sufficient 
        level of maturity, with the concurrence of the Department 
        Office and an appropriate office described in paragraph (1), 
        transferred to the appropriate office, along with the funds 
        necessary to continue the project to the point at which non-
        Federal funding can provide substantial support for the 
        project.
    (f) Analysis of Strategic Climate Change Response.--
            (1) In general.--
                    (A) Goal.--The Department Office shall foster the 
                development and application of advanced computational 
                tools, data, and capabilities that, together with the 
                capabilities of other federal agencies, support 
                integrated assessment of alternative climate change 
                response scenarios and implementation of the Strategy.
                    (B) Participation and support.--Projects supported 
                by the Department Office may include participation of, 
                and be supported by, other Federal agencies that have a 
                role in the development, commercialization, or transfer 
                of energy, transportation, industrial, agricultural, 
                forestry, or other climate change-related technology.
            (2) Programs.--
                    (A) In general.--The Department Office shall--
                            (i) develop and maintain core analytical 
                        competencies and complex, integrated 
                        computational modeling capabilities that, 
                        together with the capabilities of other Federal 
                        agencies, are necessary to support the design 
                        and implementation of the Strategy; and
                            (ii) track United States and international 
                        progress toward the long-term goal of 
                        stabilization of greenhouse gas concentrations.
                    (B) International carbon dioxide sequestration 
                monitoring and data program.--In consultation with 
                Federal, State, academic, scientific, private sector, 
                nongovernmental, tribal, and international carbon 
                capture and sequestration technology programs, the 
                Department Office shall design and carry out an 
                international carbon dioxide sequestration monitoring 
                and data program to collect, analyze, and make 
                available the technical and economic data to 
                ascertain--
                            (i) whether engineered sequestration and 
                        terrestrial sequestration will be acceptable 
                        technologies from regulatory, economic, and 
                        international perspectives;
                            (ii) whether carbon dioxide sequestered in 
                        geological formations or ocean systems is 
                        stable and has inconsequential leakage rates on 
                        a geologic time-scale; and
                            (iii) the extent to which forest, 
                        agricultural, and other terrestrial systems are 
                        suitable carbon sinks.
            (3) Areas of expertise.--
                    (A) In general.--The Department Office shall 
                develop and maintain expertise in integrated 
                assessment, modeling, and related capabilities 
                necessary--
                            (i) to understand the relationship between 
                        natural, agricultural, industrial, energy, and 
                        economic systems;
                            (ii) to design effective research and 
                        development programs; and
                            (iii) to develop and implement the 
                        Strategy.
                    (B) Technology transfer and diffusion.--The 
                expertise described in clause (i) shall include 
                knowledge of technology transfer and technology 
                diffusion in United States markets and foreign markets.
            (4) Dissemination of information.--The Department Office 
        shall ensure, to the maximum extent practicable, that technical 
        and scientific knowledge relating to greenhouse gas emission 
        reduction, avoidance, and sequestration is broadly disseminated 
        through publications, fellowships, and training programs.
            (5) Assessments.--In a manner consistent with the Strategy, 
        the Department shall conduct assessments of deployment of 
        climate-friendly technology.
            (6) Use of private sector funding.--
                    (A) In general.--The Department Office shall create 
                an operating model that allows for collaboration, 
                division of effort, and cost sharing with industry on 
                individual climate change response projects.
                    (B) Requirements.--Although cost sharing in some 
                cases may be appropriate, the Department Office shall 
                focus on long-term high-risk research and development 
                and should not make industrial partnerships or cost 
                sharing a requirement, if such a requirement would bias 
                the activities of the Department Office toward 
                incremental innovations.
                    (C) Reevaluation on transition.--At such time as 
                any bold, breakthrough research and development program 
                reaches a sufficient level of technological maturity 
                such that the program is transitioned to a program 
                office of the Department other than the Department 
                Office, the cost-sharing requirements and criteria 
                applicable to the program should be reevaluated.
                    (D) Publication in federal register.--Each cost-
                sharing agreement entered into under this subparagraph 
                shall be published in the Federal Register.

SEC. 1018. ADDITIONAL OFFICES AND ACTIVITIES.

    The Secretary of Agriculture, the Secretary of Transportation, the 
Secretary of Commerce, the Administrator of the Environmental 
Protection Agency, and the heads of other Federal agencies may 
establish such offices and carry out such activities, in addition to 
those established or authorized by this Act, as are necessary to carry 
out this Act.

SEC. 1019. UNITED STATES CLIMATE CHANGE RESPONSE STRATEGY REVIEW BOARD.

    (a) Establishment.--There is established as an independent 
establishment within the executive branch the United States Climate 
Change Response Strategy Review Board.
    (b) Membership.--
            (1) Composition.--The Review Board shall consist of 11 
        members who shall be appointed, not later than 90 days after 
        the date of enactment of this Act, by the President by and with 
        the advice and consent of the Senate, from among qualified 
        individuals nominated by the National Academy of Sciences in 
        accordance with paragraph (2).
            (2) Nominations.--Not later than 60 days after the date of 
        enactment of this Act, after taking into strong consideration 
        the guidance and recommendations of a broad range of scientific 
        and technical societies that have the capability of 
        recommending qualified individuals, the National Academy of 
        Sciences shall nominate for appointment to the Review Board not 
        fewer than 22 individuals who--
                    (A) are--
                            (i) qualified individuals; or
                            (ii) experts in a field of knowledge 
                        specified in section 1014(9)(B); and
                    (B) as a group represent broad, balanced expertise.
            (3) Prohibition on federal government employment.--A member 
        of the Review Board shall not be an employee of the Federal 
        Government.
            (4) Terms; vacancies.--
                    (A) Terms.--
                            (i) In general.--Subject to clause (ii), 
                        each member of the Review Board shall be 
                        appointed for a term of 4 years.
                            (ii) Initial terms.--
                                    (I) Commencement date.--The term of 
                                each member initially appointed to the 
                                Review Board shall commence 120 days 
                                after the date of enactment of this 
                                title.
                                    (II) Termination date.--Of the 11 
                                members initially appointed to the 
                                Review Board, 5 members shall be 
                                appointed for a term of 2 years and 6 
                                members shall be appointed for a term 
                                of 4 years, to be designated by the 
                                President at the time of appointment.
                    (B) Vacancies.--
                            (i) In general.--A vacancy on the Review 
                        Board shall be filled in the manner described 
                        in this subparagraph.
                            (ii) Nominations by the national academy of 
                        sciences.--Not later than 60 days after the 
                        date on which a vacancy commences, the National 
                        Academy of Sciences shall--
                                    (I) after taking into strong 
                                consideration the guidance and 
                                recommendations of a broad range of 
                                scientific and technical societies that 
                                have the capability of recommending 
                                qualified individuals, nominate, from 
                                among qualified individuals, not fewer 
                                than 2 individuals to fill the vacancy; 
                                and
                                    (II) submit the names of the 
                                nominees to the President.
                            (iii) Selection.--Not later than 30 days 
                        after the date on which the nominations under 
                        clause (ii) are submitted to the President, the 
                        President shall select from among the nominees 
                        an individual to fill the vacancy.
                            (iv) Senate confirmation.--An individual 
                        appointed to fill a vacancy on the Review Board 
                        shall be appointed by and with the advice and 
                        consent of the Senate.
            (5) Applicability of ethics in government act of 1978.--A 
        member of the Review Board shall be deemed to be an individual 
        subject to the Ethics in Government Act of 1978 (5 U.S.C. 
        App.).
            (6) Chairperson; vice chairperson.--The members of the 
        Review Board shall select a Chairperson and a Vice Chairperson 
        of the Review Board from among the members of the Review Board.
    (c) Duties.--
            (1) In general.--Not later than 180 days after the date of 
        submission of the initial Strategy under section 1015(b), each 
        updated version of the Strategy under section 1015(c), and each 
        progress report under section 1015(d), the Review Board shall 
        submit to the President, Congress, and the heads of Federal 
        agencies as appropriate a report assessing the adequacy of the 
        Strategy or report.
            (2) Comments.--In reviewing the Strategy or a report under 
        paragraph (1), the Review Board shall consider and comment on--
                    (A) the adequacy of effort and the appropriateness 
                of focus of the totality of all public, private, and 
                public-private sector actions of the United States with 
                respect to the 4 key elements;
                    (B) the extent to which actions of the United 
                States, with respect to climate change, complement or 
                leverage international research and other efforts 
                designed to manage global emissions of greenhouse 
                gases, to further the long-term goal of stabilization 
                of greenhouse gas concentrations;
                    (C) the funding implications of any recommendations 
                made by the Review Board; and
                    (D)(i) the effectiveness with which each Federal 
                agency is carrying out the responsibilities of the 
                Federal agency with respect to the short-term and long-
                term greenhouse gas management goals; and
                    (ii) the adequacy of the budget of each such 
                Federal agency to carry out those responsibilities.
            (3) Additional recommendations.--
                    (A) In general.--Subject to subparagraph (B), the 
                Review Board, at the request of the President or 
                Congress, may provide recommendations on additional 
                climate change-related topics.
                    (B) Secondary duty.-- The provision of 
                recommendations under subparagraph (A) shall be a 
                secondary duty to the primary duty of the Review Board 
                of providing independent review of the Strategy and the 
                reports under paragraphs (1) and (2).
    (d) Powers.--
            (1) Hearings.--
                    (A) In general.--On request of the Chairperson or a 
                majority of the members of the Review Board, the Review 
                Board may hold such hearings, meet and act at such 
                times and places, take such testimony, and receive such 
                evidence as the Review Board considers to be 
                appropriate.
                    (B) Administration of oaths.--Any member of the 
                Review Board may administer an oath or affirmation to 
                any witness that appears before the Review Board.
            (2) Production of documents.--
                    (A) In general.--On request of the Chairperson or a 
                majority of the members of the Review Board, and 
                subject to applicable law, the Secretary or head of a 
                Federal agency represented on the Interagency Task 
                Force, or a contractor of such an agency, shall provide 
                the Review Board with such records, files, papers, 
                data, and information as are necessary to respond to 
                any inquiry of the Review Board under this Act.
                    (B) Inclusion of work in progress.--Subject to 
                applicable law, information obtainable under 
                subparagraph (A)--
                            (i) shall not be limited to final work 
                        products; but
                            (ii) shall include draft work products and 
                        documentation of work in progress.
            (3) Postal services.--The Review Board may use the United 
        States mails in the same manner and under the same conditions 
        as other agencies of the Federal Government.
    (e) Compensation of Members.--A member of the Review Board shall be 
compensated at a rate equal to the daily equivalent of the annual rate 
of basic pay prescribed for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code, for each day (including 
travel time) during which the member is engaged in the performance of 
the duties of the Review Board.
    (f) Travel Expenses.--A member of the Review Board shall be allowed 
travel expenses, including per diem in lieu of subsistence, at rates 
authorized for an employee of an agency under subchapter I of chapter 
57 of title 5, United States Code, while away from the home or regular 
place of business of the member in the performance of the duties of the 
Review Board.
    (g) Staff.--
            (1) In general.--The Chairperson of the Review Board may, 
        without regard to the provisions of title 5, United States 
        Code, regarding appointments in the competitive service, 
        appoint and terminate an executive director and such other 
        additional personnel as are necessary to enable the Review 
        Board to perform the duties of the Review Board.
            (2) Confirmation of executive director.--The employment of 
        an executive director shall be subject to confirmation by the 
        Review Board.
            (3) Compensation.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the Chairperson of the Review Board may fix the 
                compensation of the executive director and other 
                personnel without regard to the provisions of chapter 
                51 and subchapter III of chapter 53 of title 5, United 
                States Code, relating to classification of positions 
                and General Schedule pay rates.
                    (B) Maximum rate of pay.--The rate of pay for the 
                executive director and other personnel shall not exceed 
                the rate payable for level V of the Executive Schedule 
                under section 5316 of title 5, United States Code.
    (h) Procurement of Temporary and Intermittent Services.--The 
Chairperson of the Review Board may procure temporary and intermittent 
services in accordance with section 3109(b) of title 5, United States 
Code, at rates for individuals that do not exceed the daily equivalent 
of the annual rate of basic pay prescribed for level V of the Executive 
Schedule under section 5316 of that title.

SEC. 1020. AUTHORIZATION OF APPROPRIATIONS.

    (a) White House Office.--
            (1) Use of available appropriations.--From funds made 
        available to Federal agencies for the fiscal year in which this 
        Title is enacted, the President shall provide such sums as are 
        necessary to carry out the duties of the White House Office 
        under this title until the date on which funds are made 
        available under paragraph (2).
            (2) Authorization of appropriations.--There is authorized 
        to be appropriated to the White House Office to carry out the 
        duties of the White House Office under this Title $5,000,000 
        for each of fiscal years 2003 through 2011, to remain available 
        through September 30, 2011.
    (b) Department Office.--
            (1) Use of available appropriations.--From funds made 
        available to Federal agencies for the fiscal year in which this 
        title is enacted, the President shall provide such sums as are 
        necessary to carry out the duties of the Department Office 
        under this Title until the date on which funds are made 
        available under paragraph (2).
            (2) Authorization of appropriations.--There is authorized 
        to be appropriated to the Department Office to carry out the 
        duties of the Department Office under this title $4,750,000,000 
        for the period of fiscal years 2003 through 2011, to remain 
        available through September 30, 2011.
    (c) Review Board.--
            (1) Use of available appropriations.--From funds made 
        available to Federal agencies for the fiscal year in which this 
        title is enacted, the President shall provide such sums as are 
        necessary to carry out the duties of the Review Board under 
        this title until the date on which funds are made available 
        under paragraph (2).
            (2) Authorization of appropriations.--There is authorized 
        to be appropriated to the Review Board to carry out the duties 
        of the Review Board under this title $3,000,000 for each of 
        fiscal years 2003 through 2011, to remain available until 
        expended.
    (d) Additional Amounts.-- Amounts authorized to be appropriated 
under this section shall be in addition to--
            (1) amounts made available to carry out the United States 
        Global Change Research Program under the Global Change Research 
        Act of 1990 (15 U.S.C. 2921 et seq.); and
            (2) amounts made available under other provisions of law 
        for energy research and development.

               Subtitle C--Science and Technology Policy

SEC. 1031. GLOBAL CLIMATE CHANGE IN THE OFFICE OF SCIENCE AND 
              TECHNOLOGY POLICY.

    Section 101(b) of the National Science and Technology Policy, 
Organization, and Priorities Act of 1976 (42 U.S.C. 6601(b)) is 
amended--
            (1) by redesignating paragraphs (7) through (13) as 
        paragraphs (8) through (14), respectively; and
            (2) by inserting after paragraph (6) the following:
            ``(7) improving efforts to understand, assess, predict, 
        mitigate, and respond to global climate change;''.

SEC. 1032. ESTABLISHMENT OF ASSOCIATE DIRECTOR FOR GLOBAL CLIMATE 
              CHANGE.

    Section 203 of the National Science and Technology Policy, 
Organization, and Priorities Act of 1976 (42 U.S.C. 6612) is amended--
            (1) by striking ``four'' in the second sentence and 
        inserting ``five''; and
            (2) by striking ``title.'' in the second sentence and 
        inserting ``title, one of whom shall be responsible for global 
        climate change science and technology under the Office of 
        Science and Technology Policy.''.

                  Subtitle D--Miscellaneous Provisions

SEC. 1041. ADDITIONAL INFORMATION FOR REGULATORY REVIEW.

    In each case that an agency prepares and submits a Statement of 
Energy Effects pursuant to Executive Order 13211 of May 18, 2001 
(relating to actions concerning regulations that significantly affect 
energy supply, distribution, or use), or as part of compliance with 
Executive Order 12866 of September 30, 1993 (relating to regulatory 
planning and review) or its successor, the agency shall also submit an 
estimate of the change in net annual greenhouse gas emissions resulting 
from the proposed significant energy action. In the case in which there 
is an increase in net annual greenhouse gas emissions as a result of 
the proposed significant energy action, the agency shall indicate what 
policies or measures will be undertaken to mitigate or offset the 
increased emissions.

SEC. 1042. GREENHOUSE GAS EMISSIONS FROM FEDERAL FACILITIES.

    (a) Methodology.--
            (1) In general.--Not later than one year after the date of 
        enactment of this section, the Secretary of Energy, Secretary 
        of Agriculture, Secretary of Commerce, and Administrator of the 
        Environmental Protection Agency shall publish a jointly 
        developed methodology for preparing estimates of annual net 
        greenhouse gas emissions from all Federally owned, leased, or 
        operated facilities and emission sources, including mobile 
        sources.
            (2) Indirect and other emissions.--The methodology under 
        paragraph (1) shall include emissions resulting from any 
        Federal procurement action with an annual Federal expenditure 
        of greater than $100 million, indirect emissions associated 
        with Federal electricity consumption, and other emissions 
        resulting from Federal actions that the heads of the agencies 
        under paragraph (1) may jointly decide to include in the 
        estimates.
    (b) Publication.--Not later than 18 months after the date of 
enactment of this section, and annually thereafter, the Secretary of 
Energy shall publish an estimate of annual net greenhouse gas emissions 
from all Federally owned, leased, or operated facilities and emission 
sources, using the methodology published under subsection (a).

               TITLE XI--NATIONAL GREENHOUSE GAS DATABASE

SEC. 1101. PURPOSE.

    The purpose of this title is to establish a greenhouse gas 
inventory, reductions registry, and information system that--
            (1) is complete, consistent, transparent, and accurate;
            (2) will create reliable and accurate data that can be used 
        by public and private entities to design efficient and 
        effective greenhouse gas emission reduction strategies; and,
            (3) will encourage and acknowledge greenhouse gas emissions 
        reductions.

SEC. 1102. DEFINITIONS.

    In this title--
            (1) Database.--The term ``database'' means the National 
        Greenhouse Gas Database established under section 1104.
            (2) Designated Agency or Agencies.--The term ``Designated 
        Agency or Agencies'' means the Department or Departments and/or 
        Agency or Agencies given the responsibility for a function or 
        program under the Memorandum of Agreement entered into pursuant 
        to Section 1103.
            (3) Direct emissions.--The term ``direct emissions'' means 
        greenhouse gas emissions by an entity from a facility that is 
        owned or controlled by that entity.
            (4) Entity.--The term ``entity'' means--
                    (A) a person located in the United States; or
                    (B) a public or private entity, to the extent that 
                the entity operates in the United States.
            (5) Facility.--The term ``facility'' means all buildings, 
        structures, or installations located on any one or more of 
        contiguous or adjacent property or properties, or a fleet of 20 
        or more transportation vehicles, under common control of the 
        same entity.
            (6) Greenhouse gas.--The term ``greenhouse gas'' means--
                    (A) carbon dioxide;
                    (B) methane;
                    (C) nitrous oxide;
                    (D) hydrofluororcarbons;
                    (E) perfluorocarbons; and
                    (F) sulfur hexafluoride.
            (7) Indirect emissions.--The term `indirect emissions' 
        means greenhouse gas emissions that are a consequence of the 
        activities of an entity but that are emitted from a facility 
        owned or controlled by another entity and are not already 
        reported as direct emissions by a covered entity.
            (8) Sequestration.--The term `sequestration' means the 
        capture, long-term separation, isolation, or removal of 
        greenhouse gases from the atmosphere, including through a 
        biological or geologic method such as reforestation or an 
        underground reservoir.

SEC. 1103. ESTABLISHMENT OF MEMORANDUM OF AGREEMENT.

    (a) Not later than one year after the date of enactment of this 
title, the President, acting through the Chairman of the Council on 
Environmental Quality, shall direct the Department of Energy, the 
Department of Commerce, the Department of Agriculture, the Department 
of Transportation and the Environmental Protection Agency, to enter 
into a Memorandum of Agreement that will--
            (1) recognize and maintain existing statutory and 
        regulatory authorities, functions and programs that collect 
        data on greenhouse gas emissions and effects and that are 
        necessary for the operation of the National Greenhouse Gas 
        Database;
            (2) distribute additional responsibilities and activities 
        identified by this title to Federal departments or agencies 
        according to their mission and expertise and to maximize the 
        use of existing resources; and
            (3) provide for the comprehensive collection and analysis 
        of data on the emissions related to product use, including 
        fossil fuel and energy consuming appliances and vehicles.
    (b) The Memorandum of Agreement entered into under subsection (a) 
shall, at a minimum, retain the following functions for the respective 
Departments and agencies:
            (1) The Department of Energy shall be primarily responsible 
        for developing, maintaining, and verifying the emissions 
        reduction registry, under both this title and its authority 
        under section 1605(b) of the Energy Policy Act of 1992 (42 
        U.S.C. 13385(b)).
            (2) The Department of Commerce shall be primarily 
        responsible for the development of measurement standards for 
        emissions monitoring and verification technologies and methods 
        to ensure that there is a consistent and technically accurate 
        record of emissions, reductions and atmospheric concentrations 
        of greenhouse gases for the database under this title.
            (3) The Environmental Protection Agency shall be primarily 
        responsible for emissions monitoring, measurement, verification 
        and data collection, pursuant to this title and existing 
        authority under Titles IV and VIII of the Clean Air Act, and 
        including mobile source emissions information from 
        implementation of the Corporate Average Fuel Economy program 
        (49 U.S.C. Chapter 329), and the Agency's role in completing 
        the national inventory for compliance with the United Nations 
        Framework Convention on Climate Change.
    (c) The Chairman shall publish a draft version of the Memorandum of 
Agreement in the Federal Register and solicit comments on it as soon as 
practicable and publish the final Memorandum of Agreement in the 
Federal Register not later than 15 months after the date of enactment 
of this title.
    (d) The final Memorandum of Agreement shall not be subject to 
judicial review.

SEC. 1104. NATIONAL GREENHOUSE GAS DATABASE.

    (a) Establishment.--The Designated Agency or Agencies, working in 
consultation with the private sector and nongovernmental organizations, 
shall establish, operate and maintain a database to be known as the 
National Greenhouse Gas Database to collect, verify, and analyze 
information on--
            (1) greenhouse gas emissions by entities located in the 
        United States; and
            (2) greenhouse gas emission reductions by entities based in 
        the United States.
    (b) National Greenhouse Gas Database Components.--The database 
shall consist of an inventory of greenhouse gas emissions and a 
registry of greenhouse gas emissions reductions.
    (c) Deadline.--Not later than 2 years after the date of enactment 
of this title, the Designated Agency or Agencies shall promulgate a 
rule to implement a comprehensive system for greenhouse gas emissions 
reporting, inventorying and reductions registration. The Designated 
Agency or Agencies shall ensure that the system is designed to maximize 
completeness, transparency, and accuracy and to minimize measurement 
and reporting costs for covered entities.
    (d) Required Elements of Database Reporting System.--
            (1) Mandatory reporting.--
                    (A) Beginning one year after promulgation of the 
                final rule issued under subsection (c), each entity 
                that exceeds the greenhouse gas emissions threshold in 
                paragraph (2) shall report annually to the Designated 
                Agency or Agencies, for inclusion in the National 
                Greenhouse Gas Database, the entity-wide emissions of 
                greenhouse gases in the previous calendar year. Such 
                reports are due annually to the Designated Agency or 
                Agencies, but must be submitted no later than April 30 
                of each calendar year in support of the previous years' 
                emission reporting requirements.
                    (B) Each report submitted shall include--
                            (i) direct emissions from stationary 
                        sources;
                            (ii) direct emissions from vehicles owned 
                        or controlled by a covered entity;
                            (iii) direct emissions from any land use 
                        activities that release significant quantities 
                        of greenhouse gases;
                            (iv) indirect emissions from all outsourced 
                        activities, contract manufacturing, wastes 
                        transferred from the control of an entity, and 
                        other relevant instances, as determined to be 
                        practicable under the rule;
                            (v) indirect emissions from electricity, 
                        heat, and steam imported from another entity, 
                        as determined to be practicable under the rule;
                            (vi) the production, distribution or import 
                        of greenhouse gases listed under section 1102 
                        by an entity; and
                            (vii) such other categories, which the 
                        designated Agency or Agencies determine by 
                        rule, after public notice and comment, should 
                        be included to accomplish the purposes of this 
                        title.
                    (C) Each report shall include total mass quantities 
                for each greenhouse gas emitted, and in terms of carbon 
                dioxide equivalent.
                    (D) Each report shall include the greenhouse gas 
                emissions per unit of output by an entity, such as tons 
                of carbon dioxide per kilowatt-hour or a similar 
                metric.
                    (E) The first report shall be required to be 
                submitted not later than April 30 of the fourth year 
                after the date of enactment of this title.
            (2) Threshold for reporting.--
                    (A) An entity shall not be required to make a 
                report under paragraph (1) unless--
                            (i) the total greenhouse gas emissions of 
                        at least one facility owned by an entity in the 
                        calendar year for reporting exceeds 10,000 
                        metric tons of carbon dioxide equivalent, or a 
                        greater level as determined by rule; or
                            (ii) the total quantity of greenhouse gases 
                        produced, distributed or imported by the entity 
                        exceeds 10,000 metric tons of carbon dioxide 
                        equivalent, or a greater level as determined by 
                        rule.
                    (B) The final rule promulgated under section 
                1104(c) and subsequent revisions to that rule with 
                respect to the threshold for reporting in subparagraph 
                (A) shall capture information on no less than 75 
                percent of anthropogenic greenhouse gas emissions from 
                entities.
            (3) Method of reporting.--Entity-wide emissions shall be 
        reported at the facility level.
            (4) Additional voluntary reporting.--An entity may 
        voluntarily report to the Designated Agency or Agencies, for 
        inclusion in the registry portion of the national database--
                    (A) with respect to the preceding calendar year and 
                any greenhouse gas emitted by the entity--
                            (i) project reductions from facilities 
                        owned or controlled by the reporting entity in 
                        the United States;
                            (ii) transfers of project reductions to and 
                        from any other entity;
                            (iii) project reductions and transfers of 
                        project reductions outside the United States;
                            (iv) other indirect emissions that are not 
                        required to be reported undersubsection (d); 
                        and
                            (v) product use phase emissions; and
                    (B) with respect to greenhouse gas emissions 
                reductions activities carried out since 1990 and 
                verified according to rules implementing subparagraphs 
                (6) and (8) of this subsection and submitted to the 
                Designated Agency or Agencies before the date that is 
                three years after the date of enactment of this title, 
                those reductions that have been reported or submitted 
                by an entity under section 1605(b) of the Energy Policy 
                Act of 1992 (42 U.S.C. 13385(b)) or under other Federal 
                or State voluntary greenhouse gas reduction programs.
            (5) Types of activities.--Under paragraph (4), an entity 
        may report projects that reduce greenhouse gas emissions or 
        sequester a greenhouse gas, including--
                    (A) fuel switching;
                    (B) energy efficiency improvements;
                    (C) use of renewable energy;
                    (D) use of combined heat and power systems;
                    (E) management of cropland, grassland, and grazing 
                land;
                    (F) forestry activities that increase forest carbon 
                stocks or reduce forest carbon missions;
                    (G) carbon capture and storage;
                    (H) methane recovery; and
                    (I) greenhouse gas offset investments.
            (6) Provision of verification information by reporting 
        entities.--Each reporting entity shall provide information 
        sufficient for the Designated Agency or Agencies to verify, in 
        accordance with measurement and verification criteria developed 
        under Section 1106, that the greenhouse gas report of the 
        reporting entity--
                    (A) has been accurately reported; and
                    (B) in the case of each additional voluntary 
                report, represents--
                            (i) actual reductions in direct greenhouse 
                        gas emissions relative to historic emission 
                        levels and net of any increases in direct 
                        emissions and indirect emissions described in 
                        clauses (iv) and (v) of paragraph (1)(B), or
                            (ii) actual increases in net sequestration.
            (7) Independent third-party verification.--A reporting 
        entity may--
                    (A) obtain independent third-party verification; 
                and
                    (B) present the results of the third-party 
                verification to the Designated Agency or Agencies for 
                consideration by the Designated Agency or Agencies in 
                carrying out paragraph (1).
            (8) Data quality.--The rule under subsection (c) shall 
        establish procedures and protocols needed to--
                    (A) prevent the reporting of some or all of the 
                same greenhouse gas emissions or emission reductions by 
                more than one reporting entity;
                    (B) provide for corrections to errors in data 
                submitted to the database;
                    (C) provide for adjustment to data by reporting 
                entities that have had a significant organizational 
                change (including mergers, acquisitions, and 
                divestiture), in order to maintain comparability among 
                data in the database over time;
                    (D) provide for adjustments to reflect new 
                technologies or methods for measuring or calculating 
                greenhouse gas emissions; and
                    (E) account for changes in registration of 
                ownership of emissions reductions resulting from a 
                voluntary private transaction between reporting 
                entities.
            (9) Availability of data.--The Designated Agency or 
        Agencies shall ensure that information in the database is 
        published, accessible to the public, and made available in 
        electronic format on the Internet, except in cases where the 
        Designated Agency or Agencies determine that publishing or 
        making available the information would disclose information 
        vital to national security.
            (10) Data infrastructure.--The Designated Agency or 
        Agencies shall ensure that the database established by this Act 
        shall utilize and is integrated with existing Federal, 
        regional, and state greenhouse gas data collection and 
        reporting systems to the maximum extent possible and avoid 
        duplication of such systems.
            (11) Additional issues to be considered.--In promulgating 
        the rules for and implementing the Database, the Designated 
        Agency or Agencies shall consider a broad range of issues 
        involved in establishing an effective database, including the 
        following:
                    (A) Units for reporting.--The appropriate units for 
                reporting each greenhouse gas, and whether to require 
                reporting of emission efficiency rates (including 
                emissions per kilowatt-hour for electricity generators) 
                in addition to mass emissions of greenhouse gases,
                    (B) International consistency.--The greenhouse gas 
                reduction and sequestration methods and standards 
                applied in other countries, as applicable or relevant; 
                and
                    (C) Data sufficiency.--The extent to which 
                available fossil fuels, greenhouse gas emissions, and 
                greenhouse gas production and importation data are 
                adequate to implement a comprehensive National 
                Greenhouse Gas Database.
    (e) Enforcement.--The Attorney General may, at the request of the 
Designated Agency or Agencies, bring a civil action in United States 
District Court against an entity that fails to comply with reporting 
requirements under this section, to impose a civil penalty of not more 
than $25,000 for each day that the failure to comply continues.
    (f) Annual Report.--The Designated Agency or Agencies shall publish 
an annual report that--
            (1) describes the total greenhouse gas emissions and 
        emission reductions reported to the database;
            (2) provides entity-by-entity and sector-by-sector analyses 
        of the emissions and emission reductions reported; and
            (3) describes the atmospheric concentrations of greenhouse 
        gases and tracks such information over time.

SEC. 1105. REPORT ON STATUTORY CHANGES AND HARMONIZATION.

    Not later than 3 years after the date of enactment of this title, 
the President shall submit to Congress a report identifying any changes 
needed to this title or to other provisions of law to improve the 
accuracy or operation of the Greenhouse Gas Database and related 
programs under this title.

SEC. 1106. MEASUREMENT AND VERIFICATION.

    The Designated Agency or Agencies shall, not later than 1 year 
after the date of enactment of this title, design and develop 
comprehensive measurement and verification methods and standards to 
ensure a consistent and technically accurate record of greenhouse gas 
emissions, reductions, and atmospheric concentrations for use in the 
national greenhouse gas database. The Agency or Agencies shall 
periodically review and revise these methods and standards as 
necessary.

SEC. 1107. INDEPENDENT REVIEW.

    (a) The General Accounting Office shall submit a report to Congress 
five years after the date of enactment of this title, and every three 
years thereafter, providing a review of the efficacy of the 
implementation and operation of the National Greenhouse Gas Database 
established in section 1104 and making recommendations for improvements 
to the programs created pursuant to this title and changes to the law 
that will achieve a consistent and technically accurate record of 
greenhouse gas emissions, reductions, and atmospheric concentrations 
and the other purposes of this title.
    (b) The Designated Agency or Agencies shall enter into an agreement 
with the National Academy of Sciences to review the scientific methods, 
assumptions and standards used by the Agency or Agencies implementing 
this title, and to report to Congress not later than four years after 
the date of enactment of this title with recommendations for improving 
those methods and standards or related elements of the programs or 
structure of the reporting and registry system established by this 
title.

SEC. 1108. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated such sums as are necessary 
to carry out the activities and programs included in this title.

       DIVISION E--ENHANCING RESEARCH, DEVELOPMENT, AND TRAINING

          TITLE XII--ENERGY RESEARCH AND DEVELOPMENT PROGRAMS

SEC. 1201. SHORT TITLE.

    This division may be cited as the ``Energy Science and Technology 
Enhancement Act of 2002''.

SEC. 1202. FINDINGS.

    The Congress finds the following:
            (1) A coherent national energy strategy requires an energy 
        research and development program that supports basic energy 
        research and provides mechanisms to develop, demonstrate, and 
        deploy new energy technologies in partnership with industry.
            (2) An aggressive national energy research, development, 
        demonstration, and technology deployment program is an integral 
        part of a national climate change strategy, because it can 
        reduce--
                    (A) United States energy intensity by 1.9 percent 
                per year from 1999 to 2020;
                    (B) United States energy consumption in 2020 by 8 
                quadrillion Btu from otherwise expected levels; and
                    (C) United States carbon dioxide emissions from 
                expected levels by 166 million metric tons in carbon 
                equivalent in 2020.
            (3) An aggressive national energy research, development, 
        demonstration, and technology deployment program can help 
        maintain domestic United States production of energy, increase 
        United States hydrocarbon reserves by 14 percent, and lower 
        natural gas prices by 20 percent, compared to estimates for 
        2020.
            (4) An aggressive national energy research, development, 
        demonstration, and technology deployment program is needed if 
        United States suppliers and manufacturers are to compete in 
        future markets for advanced energy technologies.

SEC. 1203. DEFINITIONS.

    In this title:
            (1) Department.--The term ``Department'' means the 
        Department of Energy.
            (2) Departmental mission.--The term ``departmental 
        mission'' means any of the functions vested in the Secretary of 
        Energy by the Department of Energy Organization Act (42 U.S.C. 
        7101 et seq.) or other law.
            (3) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given that 
        term in section 1201(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1141(a));
            (4) National laboratory.--The term ``National Laboratory'' 
        means any of the following multi-purpose laboratories owned by 
        the Department of Energy--
                    (A) Argonne National Laboratory;
                    (B) Brookhaven National Laboratory;
                    (C) Idaho National Engineering and Environmental 
                Laboratory;
                    (D) Lawrence Berkeley National Laboratory;
                    (E) Lawrence Livermore National Laboratory;
                    (F) Los Alamos National Laboratory;
                    (G) National Energy Technology Laboratory;
                    (H) National Renewable Energy Laboratory;
                    (I) Oak Ridge National Laboratory;
                    (J) Pacific Northwest National Laboratory; or
                    (K) Sandia National Laboratory.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (6) Technology deployment.--The term ``technology 
        deployment'' means activities to promote acceptance and 
        utilization of technologies in commercial application, 
        including activities undertaken pursuant to section 7 of the 
        Federal Nonnuclear Energy Research and Development Act of 1974 
        (42 U.S.C. 5906) or section 6 of the Renewable Energy and 
        Energy Efficiency Technology Competitiveness Act of 1989 (42 
        U.S.C. 12007).

SEC. 1204. CONSTRUCTION WITH OTHER LAWS.

    Except as otherwise provided in this title and title XIV, the 
Secretary shall carry out the research, development, demonstration, and 
technology deployment programs authorized by this title in accordance 
with the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.), the 
Federal Nonnuclear Research and Development Act of 1974 (42 U.S.C. 5901 
et seq.), the Energy Policy Act of 1992 (42 U.S.C. 13201 et seq.), or 
any other Act under which the Secretary is authorized to carry out such 
activities.

                     Subtitle A--Energy Efficiency

SEC. 1211. ENHANCED ENERGY EFFICIENCY RESEARCH AND DEVELOPMENT.

    (a) Program Direction.--The Secretary shall conduct balanced energy 
research, development, demonstration, and technology deployment 
programs to enhance energy efficiency in buildings, industry, power 
technologies, and transportation.
    (b) Program Goals.--
            (1) Energy-efficient housing.--The goal of the energy-
        efficient housing program shall be to develop, in partnership 
        with industry, enabling technologies (including lighting 
        technologies), designs, production methods, and supporting 
        activities that will, by 2010--
                    (A) cut the energy use of new housing by 50 
                percent, and
                    (B) reduce energy use in existing homes by 30 
                percent.
            (2) Industrial energy efficiency.--The goal of the 
        industrial energy efficiency program shall be to develop, in 
        partnership with industry, enabling technologies, designs, 
        production methods, and supporting activities that will, by 
        2010, enable energy-intensive industries such as the following 
        industries to reduce their energy intensity by at least 25 
        percent--
                    (A) the wood product manufacturing industry;
                    (B) the pulp and paper industry;
                    (C) the petroleum and coal products manufacturing 
                industry;
                    (D) the mining industry;
                    (E) the chemical manufacturing industry;
                    (F) the glass and glass product manufacturing 
                industry;
                    (G) the iron and steel mills and ferroalloy 
                manufacturing industry;
                    (H) the primary aluminum production industry;
                    (I) the foundries industry; and
                    (J) U.S. agriculture.
            (3) Transportation energy efficiency.--The goal of the 
        transportation energy efficiency program shall be to develop, 
        in partnership with industry, technologies that will enable the 
        achievement--
                    (A) by 2010, passenger automobiles with a fuel 
                economy of 80 miles per gallon;
                    (B) by 2010, light trucks (classes 1 and 2a) with a 
                fuel economy of 60 miles per gallon;
                    (C) by 2010, medium trucks and buses (classes 2b 
                through 6 and class 8 transit buses) with a fuel 
                economy, in ton-miles per gallon, that is three times 
                that of year 2000 equivalent vehicles;
                    (D) by 2010, heavy trucks (classes 7 and 8) with a 
                fuel economy, in ton-miles per gallon, that is two 
                times that of year 2000 equivalent vehicles; and
                    (E) by 2015, the production of fuel-cell powered 
                passenger vehicles with a fuel economy of 110 miles per 
                gallon.
            (4) Energy efficient distributed generation.--The goals of 
        the energy efficient on-site generation program shall be to 
        help remove environmental and regulatory barriers to on-site, 
        or distributed, generation and combined heat and power by 
        developing technologies by 2015 that achieve--
                    (A) electricity generating efficiencies greater 
                than 40 percent for on-site generation technologies 
                based upon natural gas, including fuel cells, 
                microturbines, reciprocating engines and industrial gas 
                turbines;
                    (B) combined heat and power total (electric and 
                thermal) efficiencies of more than 85 percent;
                    (C) fuel flexibility to include hydrogen, biofuels 
                and natural gas;
                    (D) near zero emissions of pollutants that form 
                smog and acid rain;
                    (E) reduction of carbon dioxide emissions by at 
                least 40 percent;
                    (F) packaged system integration at end user 
                facilities providing complete services in heating, 
                cooling, electricity and air quality; and
                    (G) increased reliability for the consumer and 
                greater stability for the national electricity grid.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out research, development, 
demonstration, and technology deployment activities under this 
subtitle--
            (1) $700,000,000 for fiscal year 2003;
            (2) $784,000,000 for fiscal year 2004;
            (3) $878,000,000 for fiscal year 2005; and
            (4) $983,000,000 for fiscal year 2006.
    (d) Limitation on Use of Funds.--None of the funds authorized to be 
appropriated in subsection (c) may be used for the following programs 
of the Department--
            (1) Weatherization Assistance Program;
            (2) State Energy Program; or
            (3) Federal Energy Management Program.

SEC. 1212. ENERGY EFFICIENCY SCIENCE INITIATIVE.

    (a) Establishment and Authorization of Appropriations.--From 
amounts authorized under section 1211(c), there are authorized to be 
appropriated not more than $50,000,000 in any fiscal year, for an 
Energy Efficiency Science Initiative to be managed by the Assistant 
Secretary in the Department with responsibility for energy conservation 
under section 203(a)(9) of the Department of Energy Organization Act 
(42 U.S.C. 7133(a)(9)), in consultation with the Director of the Office 
of Science, for grants to be competitively awarded and subject to peer 
review for research relating to energy efficiency.
    (b) Report.--The Secretary of Energy shall submit to the Committee 
on Science and the Committee on Appropriations of the United States 
House of Representatives, and to the Committee on Energy and Natural 
Resources and the Committee on Appropriations of the United States 
Senate, an annual report on the activities of the Energy Efficiency 
Science Initiative, including a description of the process used to 
award the funds and an explanation of how the research relates to 
energy efficiency.

SEC. 1213. NEXT GENERATION LIGHTING INITIATIVE.

    (a) Establishment.--There is established in the Department a Next 
Generation Lighting Initiative to research, develop, and conduct 
demonstration activities on advanced solid-state lighting technologies 
based on white light emitting diodes.
    (b) Objectives.--
            (1) In general.--The objectives of the initiative shall be 
        to develop, by 2011, advanced solid-state lighting technologies 
        based on white light emitting diodes that, compared to 
        incandescent and fluorescent lighting technologies, are--
                    (A) longer lasting;
                    (B) more energy-efficient; and
                    (C) cost-competitive.
            (2) Inorganic white light emitting diode.--The objective of 
        the initiative with respect to inorganic white light emitting 
        diodes shall be to develop an inorganic white light emitting 
        diode that has an efficiency of 160 lumens per watt and a 10-
        year lifetime.
            (3) Organic white light emitting diode.--The objective of 
        the initiative with respect to organic white light emitting 
        diodes shall be to develop an organic white light emitting 
        diode with an efficiency of 100 lumens per watt with a 5-year 
        lifetime that--
                    (A) illuminates over a full color spectrum;
                    (B) covers large areas over flexible surfaces; and
                    (C) does not contain harmful pollutants typical of 
                fluorescent lamps such as mercury.
    (c) Consortium.--
            (1) In general.--The Secretary shall initiate and manage 
        basic and manufacturing-related research on advanced solid-
        state lighting technologies based on white light emitting 
        diodes for the initiative, in cooperation with the Next 
        Generation Lighting Initiative Consortium.
            (2) Composition.--The consortium shall be composed of 
        firms, national laboratories, and other entities so that the 
        consortium is representative of the United States solid state 
        lighting research, development, and manufacturing expertise as 
        a whole.
            (3) Funding.--The consortium shall be funded by--
                    (A) participation fees; and
                    (B) grants provided under subsection (e)(1).
            (4) Eligibility.--To be eligible to receive a grant under 
        subsection (e)(1), the consortium shall--
                    (A) enter into a consortium participation agreement 
                that--
                            (i) is agreed to by all participants; and
                            (ii) describes the responsibilities of 
                        participants, participation fees, and the scope 
                        of research activities; and
                    (B) develop an annual program plan.
            (5) Intellectual property.--Participants in the consortium 
        shall have royalty-free nonexclusive rights to use intellectual 
        property derived from consortium research conducted under 
        subsection (e)(1).
    (d) Planning Board.--
            (1) In general.--Not later than 90 days after the 
        establishment of the consortium, the Secretary shall establish 
        and appoint the members of a planning board, to be known as the 
        ``Next Generation Lighting Initiative Planning Board'', to 
        assist the Secretary in carrying out this section.
            (2) Composition.--The planning board shall be composed of--
                    (A) 4 members from universities, national 
                laboratories, and other individuals with expertise in 
                advanced solid-state lighting and technologies based on 
                white light emitting diodes; and
                    (B) 3 members from a list of not less than 6 
                nominees from industry submitted by the consortium.
            (3) Study.--
                    (A) In general.--Not later than 90 days after the 
                date on which the Secretary appoints members to the 
                planning board, the planning board shall complete a 
                study on strategies for the development and 
                implementation of advanced solid-state lighting 
                technologies based on white light emitting diodes.
                    (B) Requirements.--The study shall develop a 
                comprehensive strategy to implement, through the 
                initiative, the use of white light emitting diodes to 
                increase energy efficiency and enhance United States 
                competitiveness.
                    (C) Implementation.--As soon as practicable after 
                the study is submitted to the Secretary, the Secretary 
                shall implement the initiative in accordance with the 
                recommendations of the planning board.
            (4) Termination.--The planning board shall terminate upon 
        completion of the study under paragraph (3).
    (e) Grants.--
            (1) Fundamental research.--The Secretary, through the 
        consortium, shall make grants to conduct basic and 
        manufacturing-related research related to advanced solid-state 
        lighting technologies based on white light emitting diode 
        technologies.
            (2) Technology development and demonstration.--The 
        Secretary shall enter into grants, contracts, and cooperative 
        agreements to conduct or promote technology research, 
        development, or demonstration activities. In providing funding 
        under this paragraph, the Secretary shall give preference to 
        participants in the consortium.
            (3) Continuing assessment.--The consortium, in 
        collaboration with the Secretary, shall formulate annual 
        operating and performance objectives, develop technology 
        roadmaps, and recommend research and development priorities for 
        the initiative. The Secretary may also establish or utilize 
        advisory committees, or enter into appropriate arrangements 
        with the National Academy of Sciences, to conduct periodic 
        reviews of the initiative. The Secretary shall consider the 
        results of such assessment and review activities in making 
        funding decisions under paragraphs (1) and (2) of this 
        subsection.
            (4) Technical assistance.--The National Laboratories shall 
        cooperate with and provide technical assistance to persons 
        carrying out projects under the initiative.
            (5) Audits.--
                    (A) In general.--The Secretary shall retain an 
                independent, commercial auditor to determine the extent 
                to which funds made available under this section have 
                been expended in a manner that is consistent with the 
                objectives under subsection (b) and, in the case of 
                funds made available to the consortium, the annual 
                program plan of the consortium under subsection 
                (c)(4)(B).
                    (B) Reports.--The auditor shall submit to Congress, 
                the Secretary, and the Comptroller General of the 
                United States an annual report containing the results 
                of the audit.
            (6) Applicable law.--Grants, contracts, and cooperative 
        agreements under this section shall not be subject to the 
        Federal Acquisition Regulation.
    (f) Protection of Information.--Information obtained by the Federal 
Government on a confidential basis under this section shall be 
considered to constitute trade secrets and commercial or financial 
information obtained from a person and privileged or confidential under 
section 552(b)(4) of title 5, United States Code.
    (g) Authorization of Appropriations.--In addition to amounts 
authorized under section 1211(c), there are authorized to be 
appropriated for activities under this section $50,000,000 for each of 
fiscal years 2003 through 2011.
    (h) Definitions.--In this section:
            (1) Advanced solid-state lighting.--The term ``advanced 
        solid-state lighting'' means a semiconducting device package 
        and delivery system that produces white light using externally 
        applied voltage.
            (2) Consortium.--The term ``consortium'' means the Next 
        Generation Lighting Initiative Consortium under subsection (c).
            (3) Initiative.--The term ``initiative'' means the Next 
        Generation Lighting Initiative established under subsection 
        (a).
            (4) Inorganic white light emitting diode.--The term 
        ``inorganic white light emitting diode'' means an inorganic 
        semiconducting package that produces white light using 
        externally applied voltage.
            (5) Organic white light emitting diode.--The term ``organic 
        white light emitting diode'' means an organic semiconducting 
        compound that produces white light using externally applied 
        voltage.
            (6) White light emitting diode.--The term ``white light 
        emitting diode'' means--
                    (A) an inorganic white light emitting diode; or
                    (B) an organic white light emitting diode.

SEC. 1214. RAILROAD EFFICIENCY.

    (a) Establishment.--The Secretary shall, in cooperation with the 
Secretaries of Transportation and Defense, and the Administrator of the 
Environmental Protection Agency, establish a public-private research 
partnership involving the federal government, railroad carriers, 
locomotive manufacturers, and the Association of American Railroads. 
The goal of the initiative shall include developing and demonstrating 
locomotive technologies that increase fuel economy, reduce emissions, 
improve safety, and lower costs.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out the requirements of this section $60,000,000 
for fiscal year 2003 and $70,000,000 for fiscal year 2004.

                      Subtitle B--Renewable Energy

SEC. 1221. ENHANCED RENEWABLE ENERGY RESEARCH AND DEVELOPMENT.

    (a) Program Direction.--The Secretary shall conduct balanced energy 
research, development, demonstration, and technology deployment 
programs to enhance the use of renewable energy.
    (b) Program Goals.--
            (1) Wind power.--The goals of the wind power program shall 
        be to develop, in partnership with industry, a variety of 
        advanced wind turbine designs and manufacturing technologies 
        that are cost-competitive with fossil-fuel generated 
        electricity, with a focus on developing advanced low wind speed 
        technologies that, by 2007, will enable the expanding 
        utilization of widespread class 3 and 4 winds.
            (2) Photovoltaics.--The goal of the photovoltaic program 
        shall be to develop, in partnership with industry, total 
        photovoltaic systems with installed costs of $4000 per peak 
        kilowatt by 2005 and $2000 per peak kilowatt by 2015.
            (3) Solar thermal electric systems.--The goal of the solar 
        thermal electric systems program shall be to develop, in 
        partnership with industry, solar power technologies (including 
        baseload solar power) that are competitive with fossil-fuel 
        generated electricity by 2015, by combining high-efficiency and 
        high-temperature receivers with advanced thermal storage and 
        power cycles.
            (4) Biomass-based power systems.--The goal of the biomass 
        program shall be to develop, in partnership with industry, 
        integrated power-generating systems, advanced conversion, and 
        feedstock technologies capable of producing electric power that 
        is cost-competitive with fossil-fuel generated electricity by 
        2010, together with the production of fuels, chemicals, and 
        other products under paragraph (6).
            (5) Geothermal energy.--The goal of the geothermal program 
        shall be to develop, in partnership with industry, technologies 
        and processes based on advanced hydrothermal systems and 
        advanced heat and power systems, including geothermal heat pump 
        technology, with a specific focus on--
                    (A) improving exploration and characterization 
                technology to increase the probability of drilling 
                successful wells from 20 percent to 40 percent by 2006;
                    (B) reducing the cost of drilling by 2008 to an 
                average cost of $150 per foot; and
                    (C) developing enhanced geothermal systems 
                technology with the potential to double the useable 
                geothermal resource base.
            (6) Biofuels.--The goal of the biofuels program shall be to 
        develop, in partnership with industry, advanced biochemical and 
        thermochemical conversion technologies capable of making liquid 
        and gaseous fuels from cellulosic feedstocks, that are price-
        competitive with gasoline or diesel, in either internal 
        combustion engines or fuel cell vehicles, by 2010.
            (7) Hydrogen-based energy systems.--The goals of the 
        hydrogen program shall be to support research and development 
        on technologies for production, storage, and use of hydrogen, 
        including fuel cells and, specifically, fuel-cell vehicle 
        development activities under section 1211.
            (8) Hydropower.--The goal of the hydropower program shall 
        be to develop, in partnership with industry, a new generation 
        of turbine technologies that are less damaging to fish and 
        aquatic ecosystems.
            (9) Electric energy systems and storage.--The goals of the 
        electric energy and storage program shall be to develop, in 
        partnership with industry--
                    (A) generators and transmission, distribution, and 
                storage systems that combine high capacity with high 
                efficiency;
                    (B) technologies to interconnect distributed energy 
                resources with electric power systems, comply with any 
                national interconnection standards, have a minimum 10-
                year useful life;
                    (C) advanced technologies to increase the average 
                efficiency of electric transmission facilities in rural 
                and remote areas, giving priority for demonstrations to 
                advanced transmission technologies that are being or 
                have been field tested;
                    (D) the use of new transmission technologies, 
                including composite conductor materials, advanced 
                protection devices, controllers, and other cost-
                effective methods and technologies;
                    (E) the use of superconducting materials in power 
                delivery equipment such as transmission and 
                distribution cables, transformers, and generators;
                    (F) energy management technologies for enterprises 
                with aggregated loads and distributed generation, such 
                as power parks;
                    (G) economic and system models to measure the costs 
                and benefits of improved system performance;
                    (H) hybrid distributed energy systems to optimize 
                two or more distributed or on-site generation 
                technologies; and
                    (I) real-time transmission and distribution system 
                control technologies that provide for continual 
                exchange of information between generation, 
                transmission, distribution, and end-user facilities.
    (c) Special Projects.--In carrying out this section, the Secretary 
shall demonstrate--
            (1) the use of advanced wind power technology, biomass, 
        geothermal energy systems, and other renewable energy 
        technologies to assist in delivering electricity to rural and 
        remote locations; and
            (2) the combined use of wind power and coal gasification 
        technologies.
    (d) Financial Assistance to Rural Areas.--In carrying out special 
projects under subsection (c), the Secretary may provide financial 
assistance to rural electric cooperatives and other rural entities.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out research, development, 
demonstration, and technology deployment activities under this 
subtitle--
            (1) $500,000,000 for fiscal year 2003;
            (2) $595,000,000 for fiscal year 2004;
            (3) $683,000,000 for fiscal year 2005; and
            (4) $733,000,000 for fiscal year 2006.

SEC. 1222. BIOENERGY PROGRAMS.

    (a) Program Direction.--The Secretary shall carry out research, 
development, demonstration, and technology development activities 
related to bioenergy, including programs under paragraphs (4) and (6) 
of section 1221(b).
    (b) Authorization of Appropriations.--
            (1) Biopower energy systems.--From amounts authorized under 
        section 1221(e), there are authorized to be appropriated to the 
        Secretary for biopower energy systems--
                    (A) $60,300,000 for fiscal year 2003;
                    (B) $69,300,000 for fiscal year 2004;
                    (C) $79,600,000 for fiscal year 2005; and
                    (D) $86,250,000 for fiscal year 2006.
            (2) Biofuels energy systems.--From amounts authorized under 
        section 1221(e), there are authorized to be appropriated to the 
        Secretary for biofuels energy systems--
                    (A) $57,500,000 for fiscal year 2003;
                    (B) $66,125,000 for fiscal year 2004;
                    (C) $76,000,000 for fiscal year 2005; and
                    (D) $81,400,000 for fiscal year 2006.
            (3) Integrated bioenergy research and development.--The 
        Secretary may use funds authorized under paragraph (1) or (2) 
        for programs, projects, or activities that integrate 
        applications for both biopower and biofuels, including cross-
        cutting research and development in feedstocks and economic 
        analysis.

SEC. 1223. HYDROGEN RESEARCH AND DEVELOPMENT.

    (a) Short Title.--This section may be cited as the ``Hydrogen 
Future Act of 2002''.
    (b) Purposes.--Section 102(b) of the Spark M. Matsunaga Hydrogen 
Research, Development, and Demonstration Act of 1990 (42 U.S.C. 
12401(b)) is amended by striking paragraphs (2) and (3) and inserting 
the following:
            ``(2) to direct the Secretary to develop a program of 
        technology assessment, information transfer, and education in 
        which Federal agencies, members of the transportation, energy, 
        and other industries, and other entities may participate;
            ``(3) to develop methods of hydrogen production that 
        minimize production of greenhouse gases, including developing--
                    ``(A) efficient production from non-renewable 
                resources; and
                    ``(B) cost-effective production from renewable 
                resources such as biomass, geothermal, wind, and solar 
                energy; and
            ``(4) to foster the use of hydrogen as a major energy 
        source, including developing the use of hydrogen in--
                    ``(A) isolated villages, islands, and communities 
                in which other energy sources are not available or are 
                very expensive; and
                    ``(B) foreign economic development, to avoid 
                environmental damage from increased fossil fuel use.''.
    (c) Report to Congress.--Section 103 of the Spark M. Matsunaga 
Hydrogen Research, Development, and Demonstration Act of 1990 (42 
U.S.C. 12402) is amended--
            (1) in subsection (a), by striking ``January 1, 1999,'' and 
        inserting ``1 year after the date of enactment of the Hydrogen 
        Future Act of 2002, and biennially thereafter,'';
            (2) in subsection (b), by striking paragraphs (1) and (2) 
        and inserting the following:
            ``(1) an analysis of hydrogen-related activities throughout 
        the United States Government to identify productive areas for 
        increased intragovernmental collaboration;
            ``(2) recommendations of the Hydrogen Technical Advisory 
        Panel established by section 108 for any improvements in the 
        program that are needed, including recommendations for 
        additional legislation; and
            ``(3) to the extent practicable, an analysis of State and 
        local hydrogen-related activities.''; and
            (3) by adding at the end the following:
    ``(c) Coordination Plan.--The report under subsection (a) shall be 
based on a comprehensive coordination plan for hydrogen energy prepared 
by the Secretary in consultation with other Federal agencies.''.
    (d) Hydrogen Research and Development.--Section 104 of the Spark M. 
Matsunaga Hydrogen Research, Development, and Demonstration Act of 1990 
(42 U.S.C. 12403) is amended--
            (1) in subsection (b)(1), by striking ``marketplace;'' and 
        inserting ``marketplace, including foreign markets, 
        particularly where an energy infrastructure is not well 
        developed;'';
            (2) in subsection (e), by striking ``this chapter'' and 
        inserting ``this Act'';
            (3) by striking subsection (g) and inserting the following:
    ``(g) Cost Sharing.--
            ``(1) Inability to fund entire cost.--The Secretary shall 
        not consider a proposal submitted by a person from industry 
        unless the proposal contains a certification that--
                    ``(A) reasonable efforts to obtain non-Federal 
                funding in the amount necessary to pay 100 percent of 
                the cost of the project have been made; and
                    ``(B) non-Federal funding in that amount could not 
                reasonably be obtained.
            ``(2) Non-federal share.--
                    ``(A) In general.--The Secretary shall require a 
                commitment from non-Federal sources of at least 25 
                percent of the cost of the project.
                    ``(B) Reduction or elimination.--The Secretary may 
                reduce or eliminate the cost-sharing requirement under 
                subparagraph (A) for the proposed research and 
                development project, including for technical analyses, 
                economic analyses, outreach activities, and educational 
                programs, if the Secretary determines that reduction or 
                elimination is necessary to achieve the objectives of 
                this Act.''; and
            (4) in subsection (i), by striking ``this chapter'' and 
        inserting ``this Act''.
    (e) Demonstrations.--Section 105 of the Spark M. Matsunaga Hydrogen 
Research, Development, and Demonstration Act of 1990 (42 U.S.C. 12404) 
is amended by striking subsection (c) and inserting the following:
    ``(c) Non-Federal Share.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall require a commitment from non-Federal sources 
        of at least 50 percent of the costs directly relating to a 
        demonstration project under this section.
            ``(2) Reduction.--The Secretary may reduce the non-Federal 
        requirement under paragraph (1) if the Secretary determines 
        that the reduction is appropriate considering the technological 
        risks involved in the project and is necessary to meet the 
        objectives of this Act.''.
    (f) Technology Transfer.--Section 106 of the Spark M. Matsunaga 
Hydrogen Research, Development, and Demonstration Act of 1990 (42 
U.S.C. 12405) is amended--
            (1) in subsection (a)--
                    (A) in the first sentence--
                            (i) by striking ``The Secretary shall 
                        conduct a program designed to accelerate wider 
                        application'' and inserting the following:
            ``(1) In general.--The Secretary shall conduct a program 
        designed to--
                    ``(A) accelerate wider application''; and
                            (ii) by striking ``private sector'' and 
                        inserting ``private sector; and
                    ``(B) accelerate wider application of hydrogen 
                technologies in foreign countries to increase the 
                global market for the technologies and foster global 
                economic development without harmful environmental 
                effects.''; and
                    (B) in the second sentence, by striking ``The 
                Secretary'' and inserting the following:
            ``(2) Advice and assistance.--The Secretary''; and
            (2) in subsection (b)--
                    (A) in paragraph (2), by redesignating 
                subparagraphs (A) through (D) as clauses (i) through 
                (iv), respectively, and indenting appropriately;
                    (B) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively, and indenting 
                appropriately;
                    (C) by striking ``The Secretary, in'' and inserting 
                the following:
            ``(1) In general.--The Secretary, in'';
                    (D) by striking ``The information'' and inserting 
                the following:
            ``(2) Activities.--The information''; and
                    (E) in paragraph (1) (as designated by subparagraph 
                (C))--
                            (i) in subparagraph (A) (as redesignated by 
                        subparagraph (B)), by striking ``an inventory'' 
                        and inserting ``an update of the inventory''; 
                        and
                            (ii) in subparagraph (B) (as redesignated 
                        by subparagraph (B)), by striking ``develop'' 
                        and all that follows through ``to improve'' and 
                        inserting ``develop with the National 
                        Aeronautics and Space Administration, the 
                        Department of Energy, other Federal agencies as 
                        appropriate, and industry, an information 
                        exchange program to improve''.
    (g) Technical Panel Review.--
            (1) In general.--Section 108 of the Spark M. Matsunaga 
        Hydrogen Research, Development, and Demonstration Act of 1990 
        (42 U.S.C. 12407) is amended--
                    (A) in subsection (b)--
                            (i) by striking ``(b) Membership.--The 
                        technical panel shall be appointed'' and 
                        inserting the following:
    ``(b) Membership.--
            ``(1) In general.--The technical panel shall be comprised 
        of not fewer than 9 nor more than 15 members appointed'';
                            (ii) by striking the second sentence and 
                        inserting the following:
            ``(2) Terms.--
                    ``(A) In general.--The term of a member of the 
                technical panel shall be not more than 3 years.
                    ``(B) Staggered terms.--The Secretary may appoint 
                members of the technical panel in a manner that allows 
                the terms of the members serving at any time to expire 
                at spaced intervals so as to ensure continuity in the 
                functioning of the technical panel.
                    ``(C) Reappointment.--A member of the technical 
                panel whose term expires may be reappointed.''; and
                            (iii) by striking ``The technical panel 
                        shall have a chairman,'' and inserting the 
                        following:
            ``(3) Chairperson.--The technical panel shall have a 
        chairperson,''; and
                    (B) in subsection (d)--
                            (i) in the matter preceding paragraph (1), 
                        by striking ``the following items'';
                            (ii) in paragraph (1), by striking ``and'' 
                        at the end;
                            (iii) in paragraph (2), by striking the 
                        period at the end and inserting ``; and''; and
                            (iv) by adding at the end the following:
            ``(3) the plan developed by the interagency task force 
        under section 202(b) of the Hydrogen Future Act of 1996.''.
            (2) New appointments.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary--
                    (A) shall review the membership composition of the 
                Hydrogen Technical Advisory Panel; and
                    (B) may appoint new members consistent with the 
                amendments made by subsection (a).
    (h) Authorization of Appropriations.--Section 109 of the Spark M. 
Matsunaga Hydrogen Research, Development, and Demonstration Act of 1990 
(42 U.S.C. 12408) is amended--
            (1) in paragraph (8), by striking ``and'';
            (2) in paragraph (9), by striking the period and inserting 
        a semicolon; and
            (3) by adding at the end the following:
            ``(10) $65,000,000 for fiscal year 2003;
            ``(11) $70,000,000 for fiscal year 2004;
            ``(12) $75,000,000 for fiscal year 2005; and
            ``(13) $80,000,000 for fiscal year 2006.''.
    (i) Fuel Cells.--
            (1) Integration of fuel cells with hydrogen production 
        systems.--Section 201 of the Hydrogen Future Act of 1996 is 
        amended--
                    (A) in subsection (a)--
                            (i) by striking ``(a) Not later than 180 
                        days after the date of enactment of this 
                        section, and subject'' and inserting ``(a) In 
                        General.--Subject''; and
                    (B) by striking ``with--'' and all that follows and 
                inserting ``into Federal, State, and local government 
                facilities for stationary and transportation 
                applications.'';
            (2) in subsection (b), by striking ``gas is'' and inserting 
        ``basis'';
            (3) in subsection (c)(2), by striking ``systems described 
        in subsections (a)(1) and (a)(2)'' and inserting ``projects 
        proposed''; and
            (4) by striking subsection (d) and inserting the following:
    ``(d) Non-Federal Share.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall require a commitment from non-Federal sources 
        of at least 50 percent of the costs directly relating to a 
        demonstration project under this section.
            ``(2) Reduction.--The Secretary may reduce the non-Federal 
        requirement under paragraph (1) if the Secretary determines 
        that the reduction is appropriate considering the technological 
        risks involved in the project and is necessary to meet the 
        objectives of this Act.''.
            (2) Cooperative and cost-sharing agreements; integration of 
        technical information.--Title II of the Hydrogen Future Act of 
        1996 (42 U.S.C. 12403 note; Public Law 104-271) is amended by 
        striking section 202 and inserting the following:

``SEC. 202. INTERAGENCY TASK FORCE.

    ``(a) Establishment.--Not later than 120 days after the date of 
enactment of this section, the Secretary shall establish an interagency 
task force led by a Deputy Assistant Secretary of the Department of 
Energy and comprised of representatives of--
        ``(1) the Office of Science and Technology Policy;
        ``(2) the Department of Transportation;
            ``(3) the Department of Defense;
            ``(4) the Department of Commerce (including the National 
        Institute for Standards and Technology);
            ``(5) the Environmental Protection Agency;
            ``(6) the National Aeronautics and Space Administration; 
        and
            ``(7) other agencies as appropriate.
    ``(b) Duties.--
            ``(1) In general.--The task force shall develop a plan for 
        carrying out this title.
            ``(2) Focus of plan.--The plan shall focus on development 
        and demonstration of integrated systems and components for--
                    ``(A) hydrogen production, storage, and use in 
                Federal, State, and local government buildings and 
                vehicles;
                    ``(B) hydrogen-based infrastructure for buses and 
                other fleet transportation systems that include zero-
                emission vehicles; and
                    ``(C) hydrogen-based distributed power generation, 
                including the generation of combined heat, power, and 
                hydrogen.

``SEC. 203. COOPERATIVE AND COST-SHARING AGREEMENTS.

    ``The Secretary shall enter into cooperative and cost-sharing 
agreements with Federal, State, and local agencies for participation by 
the agencies in demonstrations at facilities administered by the 
agencies, with the aim of integrating high efficiency hydrogen systems 
using fuel cells into the facilities to provide immediate benefits and 
promote a smooth transition to hydrogen as an energy source.

``SEC. 204. INTEGRATION AND DISSEMINATION OF TECHNICAL INFORMATION.

    ``The Secretary shall--
            ``(1) integrate all the technical information that becomes 
        available as a result of development and demonstration projects 
        under this title;
            ``(2) make the information available to all Federal and 
        State agencies for dissemination to all interested persons; and
            ``(3) foster the exchange of generic, nonproprietary 
        information and technology developed under this title among 
        industry, academia, and Federal, State, and local governments, 
        to help the United States economy attain the economic benefits 
        of the information and technology.

``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated, for activities under 
this title--
            ``(1) $25,000,000 for fiscal year 2003;
            ``(2) $30,000,000 for fiscal year 2004;
            ``(3) $35,000,000 for fiscal year 2005; and
            ``(4) $40,000,000 for fiscal year 2006.''.

                       Subtitle C--Fossil Energy

SEC. 1231. ENHANCED FOSSIL ENERGY RESEARCH AND DEVELOPMENT.

    (a) Program Direction.--The Secretary shall conduct a balanced 
energy research, development, demonstration, and technology deployment 
program to enhance fossil energy.
    (b) Program Goals.--
            (1) Core fossil research and development.--The goals of the 
        core fossil research and development program shall be to reduce 
        emissions from fossil fuel use by developing technologies, 
        including precombustion technologies, by 2015 with the 
        capability of realizing--
                    (A) electricity generating efficiencies of 60 
                percent for coal and 75 percent for natural gas;
                    (B) combined heat and power thermal efficiencies of 
                more than 85 percent;
                    (C) fuels utilization efficiency of 75 percent for 
                the production of liquid transportation fuels from 
                coal;
                    (D) near zero emissions of mercury and of emissions 
                that form fine particles, smog, and acid rain;
                    (E) reduction of carbon dioxide emissions by at 
                least 40 percent through efficiency improvements and 
                100 percent with sequestration; and
                    (F) improved reliability, efficiency, reductions of 
                air pollutant emissions, or reductions in solid waste 
                disposal requirements.
            (2) Offshore oil and natural gas resources.--The goal of 
        the offshore oil and natural gas resources program shall be to 
        develop technologies to--
                    (A) extract methane hydrates in coastal waters of 
                the United States, and
                    (B) develop natural gas and oil reserves in the 
                ultra-deepwater of the Central and Western Gulf of 
                Mexico.
            (3) Onshore oil and natural gas resources.--The goal of the 
        onshore oil and natural gas resources program shall be to 
        advance the science and technology available to domestic 
        onshore petroleum producers, particularly independent 
        operators, through--
                    (A) advances in technology for exploration and 
                production of domestic petroleum resources, 
                particularly those not accessible with current 
                technology;
                    (B) improvement in the ability to extract 
                hydrocarbons from known reservoirs and classes of 
                reservoirs; and
                    (C) development of technologies and practices that 
                reduce the threat to the environment from petroleum 
                exploration and production and decrease the cost of 
                effective environmental compliance.
            (4) Transportation fuels.--The goals of the transportation 
        fuels program shall be to increase the price elasticity of oil 
        supply and demand by focusing research on--
                    (A) reducing the cost of producing transportation 
                fuels from coal and natural gas; and
                    (B) indirect liquefaction of coal and biomass.
    (c) Authorization of Appropriations.--
          (1) In general.--There are authorized to be appropriated to 
        the Secretary for carrying out research, development, 
        demonstration, and technology deployment activities under this 
        section--
                    (A) $485,000,000 for fiscal year 2003;
                    (B) $508,000,000 for fiscal year 2004;
                    (C) $532,000,000 for fiscal year 2005; and
                    (D) $558,000,000 for fiscal year 2006.
            (2) Limits on use of funds.--
                    (A) None of the funds authorized in paragraph (1) 
                may be used for--
                            (i) fossil energy environmental 
                        restoration;
                            (ii) import/export authorization;
                            (iii) program direction; or
                            (iv) general plant projects.
                    (B) Coal-based projects.--The coal-based projects 
                funded under this section shall be consistent with the 
                goals in subsection (b). The program shall emphasize 
                carbon capture and sequestration technologies and 
                gasification technologies, including gasification 
                combined cycle, gasification fuel cells, gasification 
                co-production, hybrid gasification/combustion, or other 
                technology with the potential to address the goals in 
                subparagraphs (D) or (E) of subsection (b)(1).

SEC. 1232. POWER PLANT IMPROVEMENT INITIATIVE.

    (a) Program Direction.--The Secretary shall conduct a balanced 
energy research, development, demonstration, and technology deployment 
program to demonstrate commercial applications of advanced lignite and 
coal-based technologies applicable to new or existing power plants 
(including co-production plants) that advance the efficiency, 
environmental performance, and cost-competitiveness substantially 
beyond technologies that are in operation or have been demonstrated by 
the date of enactment of this subtitle.
    (b) Technical Milestones.--
            (1) In general.--The Secretary shall set technical 
        milestones specifying efficiency and emissions levels that 
        projects shall be designed to achieve. The milestones shall 
        become more restrictive over the life of the program.
            (2) 2010 efficiency milestones.--The milestones shall be 
        designed to achieve by 2010 interim thermal efficiency of--
                    (A) 45 percent for coal of more than 9,000 Btu;
                    (B) 44 percent for coal of 7,000 to 9,000 Btu; and
                    (C) 42 percent for coal of less than 7,000 Btu.
            (3) 2020 efficiency milestones.--The milestones shall be 
        designed to achieve by 2020 thermal efficiency of--
                    (A) 60 percent for coal of more than 9,000 Btu;
                    (B) 59 percent for coal of 7,000 to 9,000 Btu; and
                    (C) 57 percent for coal of less than 7,000 Btu.
            (4) Emissions Milestones.--The milestones shall include 
        near zero emissions of mercury and greenhouse gases and of 
        emissions that form fine particles, smog, and acid rain.
            (5) Regional and quality differences.--The Secretary may 
        consider regional and quality differences in developing the 
        efficiency milestones.
    (c) Project Criteria.--The demonstration activities proposed to be 
conducted at a new or existing coal-based electric generation unit 
having a nameplate rating of not less than 100 megawatts, excluding a 
co-production plant, shall include at least one of the following--
            (1) a means of recycling or reusing a significant portion 
        of coal combustion wastes produced by coal-based generating 
        units, excluding practices that are commercially available by 
        the date of enactment of this subtitle;
            (2) a means of capture and sequestering emissions, 
        including greenhouse gases, in a manner that is more effective 
        and substantially below the cost of technologies that are in 
        operation or that have been demonstrated by the date of 
        enactment of this subtitle;
            (3) a means of controlling sulfur dioxide and nitrogen 
        oxide or mercury in a manner that improves environmental 
        performance beyond technologies that are in operation or that 
        have been demonstrated by the date of enactment of this 
        subtitle--
                    (A) in the case of an existing unit, achieve an 
                overall thermal design efficiency improvement compared 
                to the efficiency of the unit as operated, of not less 
                than--
                            (i) 7 percent for coal of more than 9,000 
                        Btu;
                            (ii) 6 percent for coal of 7,000 to 9,000 
                        Btu; or
                            (iii) 4 percent for coal of less than 7,000 
                        Btu; or
                    (B) in the case of a new unit, achieve the 
                efficiency milestones set for in subsection (b) 
                compared to the efficiency of a typical unit as 
                operated on the date of enactment of this subtitle, 
                before any retrofit, repowering, replacement, or 
                installation.
    (d) Study.--The Secretary, in consultation with the Administrator 
of the Environmental Protection Agency, the Secretary of the Interior, 
and interested entities (including coal producers, industries using 
coal, organizations to promote coal or advanced coal technologies, 
environmental organizations, and organizations representing workers), 
shall conduct an assessment that identifies performance criteria that 
would be necessary for coal-based technologies to meet, to enable 
future reliance on coal in an environmentally sustainable manner for 
electricity generation, use as a chemical feedstock, and use as a 
transportation fuel.
    (e) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        the Secretary for carrying out activities under this section 
        $200,000,000 for each of fiscal years 2003 through 2011.
            (2) Limitation on funding of projects.--Eighty percent of 
        the funding under this section shall be limited to--
                    (A) carbon capture and sequestration technologies;
                    (B) gasification technologies, including 
                gasification combined cycle, gasification fuel cells, 
                gasification co-production, or hybrid gasification/
                combustion; or
                    (C) or other technology either by itself or in 
                conjunction with other technologies has the potential 
                to achieve near zero emissions.

SEC. 1233. RESEARCH AND DEVELOPMENT FOR ADVANCED SAFE AND EFFICIENT 
              COAL MINING TECHNOLOGIES.

    (a) Establishment.--The Secretary of Energy shall establish a 
cooperative research partnership involving appropriate Federal 
agencies, coal producers, including associations, equipment 
manufacturers, universities with mining engineering departments, and 
other relevant entities to--
            (1) develop mining research priorities identified by the 
        Mining Industry of the Future Program and in the 
        recommendations from relevant reports of the National Academy 
        of Sciences on mining technologies;
            (2) establish a process for conducting joint industry-
        government research and development; and
            (3) expand mining research capabilities at institutions of 
        higher education.
    (b) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out activities under this section, $12,000,000 in fiscal 
        year 2003 and $15,000,000 in fiscal year 2004.
            (2) Limit on use of funds.--Not less than 20 percent of any 
        funds appropriated in a given fiscal year under this subsection 
        shall be dedicated to research carried out at institutions of 
        higher education.

SEC. 1234. ULTRA-DEEPWATER AND UNCONVENTIONAL RESOURCE EXPLORATION AND 
              PRODUCTION TECHNOLOGIES.

    (a) Definitions.--In this section:
            (1) Advisory committee.--The term ``Advisory Committee'' 
        means the Ultra-Deepwater and Unconventional Resource 
        Technology Advisory Committee established under subsection (c).
            (2) Award.--The term ``award'' means a cooperative 
        agreement, contract, award or other types of agreement as 
        appropriate.
            (3) Deepwater.--The term ``deepwater'' means a water depth 
        that is greater than 200 but less than 1,500 meters.
            (4) Eligible award recipient.--The term ``eligible award 
        recipient'' includes--
                    (A) a research institution;
                    (B) an institution of higher education;
                    (C) a corporation; and
                    (D) a managing consortium formed among entities 
                described in subparagraphs (A) through (C).
            (5) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001).
            (6) Managing consortium.--The term ``managing consortium'' 
        means an entity that--
                    (A) exists as of the date of enactment of this 
                section;
                    (B)(i) is an organization described in section 
                501(c)(3) of the Internal Revenue Code of 1986; and
                    (ii) is exempt from taxation under section 501(a) 
                of that Code;
                    (C) is experienced in planning and managing 
                programs in natural gas or other petroleum exploration 
                and production research, development, and 
                demonstration; and
                    (D) has demonstrated capabilities and experience in 
                representing the views and priorities of industry, 
                institutions of higher education and other research 
                institutions in formulating comprehensive research and 
                development plans and programs.
            (7) Program.--The term ``program'' means the program of 
        research, development, and demonstration established under 
        subsection (b)(1)(A).
            (8) Ultra-deepwater.--The term ``ultra-deepwater'' means a 
        water depth that is equal to or greater than 1,500 meters.
            (9) Ultra-deepwater architecture.--The term ``ultra-
        deepwater architecture'' means the integration of technologies 
        to explore and produce natural gas or petroleum products 
        located at ultra-deepwater depths.
            (10) Ultra-deepwater resource.--The term ``ultra-deepwater 
        resource'' means natural gas or any other petroleum resource 
        (including methane hydrate) located in an ultra-deepwater area.
            (11) Unconventional resource.--The term ``unconventional 
        resource'' means natural gas or any other petroleum resource 
        located in a formation on physically or economically 
        inaccessible land currently available for lease for purposes of 
        natural gas or other petroleum exploration or production.
    (b) Ultra-Deepwater and Unconventional Exploration and Production 
Program.--
            (1) Establishment.--
                    (A) In general.--The Secretary shall establish a 
                program of research into, and development and 
                demonstration of, ultra-deepwater resource and 
                unconventional resource exploration and production 
                technologies.
                    (B) Location; Implementation.--The program under 
                this subsection shall be carried out--
                            (i) in areas on the outer Continental Shelf 
                        that, as of the date of enactment of this 
                        section, are available for leasing; and
                            (ii) on unconventional resources.
            (2) Components.--The program shall include one or more 
        programs for long-term research into--
                    (A) new deepwater ultra-deepwater resource and 
                unconventional resource exploration and production 
                technologies; or
                    (B) environmental mitigation technologies for 
                production of ultra-deepwater resource and 
                unconventional resource.
    (c) Advisory Committee.--
            (1) Establishment.--Not later than 30 days after the date 
        of enactment of this section, the Secretary shall establish an 
        advisory committee to be known as the ``Ultra-Deepwater and 
        Unconventional Resource Technology Advisory Committee''.
            (2) Membership.--
                    (A) Composition.--Subject to subparagraph (B), the 
                advisory committee shall be composed of 7 members 
                appointed by the Secretary that--
                            (i) have extensive operational knowledge of 
                        and experience in the natural gas and other 
                        petroleum exploration and production industry; 
                        and
                            (ii) are not Federal employees or employees 
                        of contractors to a federal agency.
                    (B) Expertise.--Of the members of the advisory 
                committee appointed under subparagraph (A)--
                            (i) at least 4 members shall have extensive 
                        knowledge of ultra-deepwater resource 
                        exploration and production technologies; and
                            (ii) at least 3 members shall have 
                        extensive knowledge of unconventional resource 
                        exploration and production technologies.
            (3) Duties.--The advisory committee shall advise the 
        Secretary in the implementation of this section.
            (4) Compensation.--A member 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) Awards.--
            (1) Types of Awards.--
                    (A) Ultra-deepwater resources.--
                            (i) In general.--The Secretary shall make 
                        awards for research into, and development and 
                        demonstration of, ultra-deepwater resource 
                        exploration and production technologies--
                                    (I) to maximize the value of the 
                                ultra-deepwater resources of the United 
                                States;
                                    (II) to increase the supply of 
                                ultra-deepwater resources by lowering 
                                the cost and improving the efficiency 
                                of exploration and production of such 
                                resources; and
                                    (III) to improve safety and 
                                minimize negative environmental impacts 
                                of that exploration and production.
                            (ii) Ultra-deepwater architecture.--In 
                        furtherance of the purposes described in clause 
                        (i), the Secretary shall, where appropriate, 
                        solicit proposals from a managing consortium to 
                        develop and demonstrate next-generation 
                        architecture for ultra-deepwater resource 
                        production.
                    (B) Unconventional resources.--The Secretary shall 
                make awards--
                            (i) to carry out research into, and 
                        development and demonstration of, technologies 
                        to maximize the value of unconventional 
                        resources; and
                            (ii) to develop technologies to 
                        simultaneously--
                                    (I) increase the supply of 
                                unconventional resources by lowering 
                                the cost and improving the efficiency 
                                of exploration and production of 
                                unconventional resources; and
                                    (II) improve safety and minimize 
                                negative environmental impacts of that 
                                exploration and production.
            (2) Conditions.--An award made under this subsection shall 
        be subject to the following conditions:
                    (A) Multiple entities.--If an award recipient is 
                composed of more than one eligible organization, the 
                recipient shall provide a signed contract, agreed to by 
                all eligible organizations comprising the award 
                recipient, that defines, in a manner that is consistent 
                with all applicable law in effect as of the date of the 
                contract, all rights to intellectual property for--
                            (i) technology in existence as of that 
                        date; and
                            (ii) future inventions conceived and 
                        developed using funds provided under the award.
                    (B) Components of application.--An application for 
                an award for a demonstration project shall describe 
                with specificity any intended commercial applications 
                of the technology to be demonstrated.
                    (C) Cost sharing.--Non-Federal cost sharing shall 
                be in accordance with section 1403.
    (e) Plan and Funding.--
            (1) In general.--The Secretary, and where appropriate, a 
        managing consortium under subsection (d)(1)(A)(ii), shall 
        formulate annual operating and performance objectives, develop 
        multi-year technology roadmaps, and establish research and 
        development priorities for the funding of activities under this 
        section which will serve as guidelines for making awards 
        including cost-matching objectives.
            (2) Industry input.--In carrying out this program, the 
        Secretary shall promote maximum industry input through the use 
        of managing consortia or other organizations in planning and 
        executing the research areas and conducting workshops or 
        reviews to ensure that this program focuses on industry 
        problems and needs.
    (f) Auditing.--
            (1) In general.--The Secretary shall retain an independent, 
        commercial auditor to determine the extent to which funds 
        authorized by this section, provided through a managing 
        consortium, are expended in a manner consistent with the 
        purposes of this section.
            (2) Reports.--The auditor retained under paragraph (1) 
        shall submit to the Secretary, and the Secretary shall transmit 
        to the appropriate congressional committees, an annual report 
        that describes--
                    (A) the findings of the auditor under paragraph 
                (1); and
                    (B) a plan under which the Secretary may remedy any 
                deficiencies identified by the auditor.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as may be necessary to carry 
out this section.
    (h) Termination of Authority.--The authority provided by this 
section shall terminate on September 30, 2009.
    (i) Savings Provision.--Nothing in this section is intended to 
displace, duplicate or diminish any previously authorized research 
activities of the Department of Energy.

SEC. 1235. RESEARCH AND DEVELOPMENT FOR NEW NATURAL GAS TRANSPORTATION 
              TECHNOLOGIES.

    The Secretary of Energy shall conduct a comprehensive five-year 
program for research, development and demonstration to improve the 
reliability, efficiency, safety and integrity of the natural gas 
transportation and distribution infrastructure and for distributed 
energy resources (including microturbines, fuel cells, advanced engine-
generators, gas turbines, reciprocating engines, hybrid power 
generation systems, and all ancillary equipment for dispatch, control 
and maintenance).

SEC. 1236. AUTHORIZATION OF APPROPRIATIONS FOR OFFICE OF ARCTIC ENERGY.

    There are authorized to be appropriated to the Secretary for the 
Office of Arctic Energy under section 3197 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 (Public Law 
106-398) such sums as may be necessary, but not to exceed $25,000,000 
for each of fiscal years 2003 through 2011.

                       Subtitle D--Nuclear Energy

SEC. 1241. ENHANCED NUCLEAR ENERGY RESEARCH AND DEVELOPMENT.

    (a) Program Direction.--The Secretary shall conduct an energy 
research, development, demonstration, and technology deployment program 
to enhance nuclear energy.
    (b) Program Goals.--The program shall--
            (1) support research related to existing United States 
        nuclear power reactors to extend their lifetimes and increase 
        their reliability while optimizing their current operations for 
        greater efficiencies;
            (2) examine advanced proliferation-resistant and passively 
        safe reactor designs, new reactor designs with higher 
        efficiency, lower cost, and improved safety, proliferation-
        resistant and high burn-up nuclear fuels, minimization of 
        generation of radioactive materials, improved nuclear waste 
        management technologies, and improved instrumentation science;
            (3) attract new students and faculty to the nuclear 
        sciences and nuclear engineering and related fields (including 
        health physics and nuclear and radiochemistry) through--
                    (A) university-based fundamental research for 
                existing faculty and new junior faculty;
                    (B) support for the re-licensing of existing 
                training reactors at universities in conjunction with 
                industry; and
                    (C) completing the conversion of existing training 
                reactors with proliferation resistant fuels that are 
                low enriched and to adapt those reactors to new 
                investigative uses;
            (4) maintain a national capability and infrastructure to 
        produce medical isotopes and ensure a well trained cadre of 
        nuclear medicine specialists in partnership with industry;
            (5) ensure that our nation has adequate capability to power 
        future satellite and space missions; and
            (6) maintain, where appropriate through a prioritization 
        process, a balanced research infrastructure so that future 
        research programs can use these facilities.
    (c) Authorization of Appropriations.--
            (1) Core nuclear research programs.--There are authorized 
        to be appropriated to the Secretary for carrying out research, 
        development, demonstration, and technology deployment 
        activities under subsection (b)(1) through (3)--
                    (A) $100,000,000 for fiscal year 2003;
                    (B) $110,000,000 for fiscal year 2004;
                    (C) $120,000,000 for fiscal year 2005; and
                    (D) $130,000,000 for fiscal year 2006.
            (2) Supporting nuclear activities.--There are authorized to 
        be appropriated to the Secretary for carrying out activities 
        under subsection (b)(4) through (6), as well as nuclear 
        facilities management and program direction--
                    (A) $200,000,000 for fiscal year 2003;
                    (B) $202,000,000 for fiscal year 2004;
                    (C) $207,000,000 for fiscal year 2005; and
                    (D) $212,000,000 for fiscal year 2006.

SEC. 1242. UNIVERSITY NUCLEAR SCIENCE AND ENGINEERING SUPPORT.

    (a) Establishment.--The Secretary shall support a program to 
maintain the nation's human resource investment and infrastructure in 
the nuclear sciences and engineering and related fields (including 
health physics and nuclear and radiochemistry), consistent with 
departmental missions related to civilian nuclear research and 
development.
    (b) Duties.--In carrying out the program under this section, the 
Secretary shall--
            (1) develop a 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) support fundamental nuclear sciences and engineering 
        research through the Nuclear Engineering Education Research 
        Program;
            (4) encourage collaborative nuclear research between 
        industry, national laboratories and universities through the 
        Nuclear Energy Research Initiative; and
            (5) support communication and outreach related to nuclear 
        science and engineering.
    (c) Maintaining University Research and Training Reactors and 
Associated Infrastructure.--Activities under this section may include:
            (1) Converting research reactors to low-enrichment fuels, 
        upgrading operational instrumentation, and sharing of reactors 
        among universities.
            (2) Providing technical assistance, in collaboration with 
        the U.S. nuclear industry, in re-licensing and upgrading 
        training reactors as part of a student training program.
            (3) Providing funding for reactor improvements as part of a 
        focused effort that emphasizes research, training, and 
        education.
    (d) University-National Laboratory Interactions.--The Secretary 
shall develop--
            (1) a sabbatical fellowship program for university 
        professors to spend extended periods of time at National 
        Laboratories in the areas of nuclear science and technology; 
        and
            (2) a visiting scientist program in which National 
        Laboratory staff can spend time in academic nuclear science and 
        engineering departments. The Secretary may provide for 
        fellowships for students to spend time at National Laboratories 
        in the area of nuclear science with a member of the Laboratory 
        staff acting as a mentor.
    (e) Operating and Maintenance Costs.--Funding for a research 
project provided under this section may be used to offset a portion of 
the operating and maintenance costs of a university research reactor 
used in the research project, on a cost-shared basis with the 
university.
    (f) Authorization of Appropriations.--From amounts authorized under 
section 1241(c)(1), the following amounts are authorized for activities 
under this section--
            (1) $33,000,000 for fiscal year 2003;
            (2) $37,900,000 for fiscal year 2004;
            (3) $43,600,000 for fiscal year 2005; and
            (4) $50,100,000 for fiscal year 2006.

SEC. 1243. NUCLEAR ENERGY RESEARCH INITIATIVE.

    (a) Establishment.--The Secretary shall support a Nuclear Energy 
Research Initiative for grants for research relating to nuclear energy.
    (b) Authorization of Appropriations.--From amounts authorized under 
section 1241(c), there are authorized to be appropriated to the 
Secretary for activities under this section such sums as are necessary 
for each fiscal year.

SEC. 1244. NUCLEAR ENERGY PLANT OPTIMIZATION PROGRAM.

    (a) Establishment.--The Secretary shall support a Nuclear Energy 
Plant Optimization Program for grants to improve nuclear energy plant 
reliability, availability, and productivity. Notwithstanding section 
1403, the program shall require industry cost-sharing of at least 50 
percent and be subject to annual review by the Nuclear Energy Research 
Advisory Committee of the Department.
    (b) Authorization of Appropriations.--From amounts authorized under 
section 1241(c), there are authorized to be appropriated to the 
Secretary for activities under this section such sums as are necessary 
for each fiscal year.

SEC. 1245. NUCLEAR ENERGY TECHNOLOGY DEVELOPMENT PROGRAM.

    (a) Establishment.--The Secretary shall support a Nuclear Energy 
Technology Development Program to develop a technology roadmap to 
design and develop new nuclear energy powerplants in the United States.
    (b) Generation IV Reactor Study.--The Secretary shall, as part of 
the program under subsection (a), also 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 deployment. The study shall examine advanced proliferation-
resistant and passively safe reactor designs, new reactor designs with 
higher efficiency, lower cost and improved safety, proliferation-
resistant and high burn-up fuels, minimization of generation of 
radioactive materials, improved nuclear waste management technologies, 
and improved instrumentation science. Not later than December 31, 2002, 
the Secretary shall submit to Congress a report describing the results 
of the study.
    (c) Authorization of Appropriations.--From amounts authorized to be 
appropriated under section 1241(c), there are authorized to be 
appropriated to the Secretary for activities under this section such 
sums as are necessary for each fiscal year.

                 Subtitle E--Fundamental Energy Science

SEC. 1251. ENHANCED PROGRAMS IN FUNDAMENTAL ENERGY SCIENCE.

    (a) Program Direction.--The Secretary, acting through the Office of 
Science, shall--
            (1) conduct a comprehensive program of fundamental 
        research, including research on chemical sciences, physics, 
        materials sciences, biological and environmental 
sciences, geosciences, engineering sciences, plasma sciences, 
mathematics, and advanced scientific computing;
            (2) maintain, upgrade and expand the scientific user 
        facilities maintained by the Office of Science and ensure that 
        they are an integral part of the departmental mission for 
        exploring the frontiers of fundamental science;
            (3) maintain a leading-edge research capability in the 
        energy-related aspects of nanoscience and nanotechnology, 
        advanced scientific computing and genome research; and
            (4) ensure that its fundamental science programs, where 
        appropriate, help inform the applied research and development 
        programs of the Department.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for carrying out research, development, 
demonstration, and technology deployment activities under this 
subtitle--
            (1) $3,785,000,000 for fiscal year 2003;
            (2) $4,153,000,000 for fiscal year 2004;
            (3) $4,586,000,000 for fiscal year 2005; and
            (4) $5,000,000,000 for fiscal year 2006.

SEC. 1252. NANOSCALE SCIENCE AND ENGINEERING RESEARCH.

    (a) Establishment.--The Secretary, acting through the Office of 
Science, shall support a program of research and development in 
nanoscience and nanoengineering consistent with the Department's 
statutory authorities related to research and development. The program 
shall include efforts to further the understanding of the chemistry, 
physics, materials science and engineering of phenomena on the scale of 
1 to 100 nanometers.
    (b) Duties of the Office of Science.--In carrying out the program 
under this section, the Office of Science shall--
            (1) support both individual investigators and 
        multidisciplinary teams of investigators;
            (2) pursuant to subsection (c), develop, plan, construct, 
        acquire, or operate special equipment or facilities for the use 
        of investigators conducting research and development in 
        nanoscience and nanoengineering;
            (3) support technology transfer activities to benefit 
        industry and other users of nanoscience and nanoengineering; 
        and
            (4) coordinate research and development activities with 
        industry and other federal agencies.
    (c) Nanoscience and Nanoengineering Research Centers and Major 
Instrumentation.--
            (1) Authorization.--From amounts authorized to be 
        appropriated under section 1251(b), the amounts specified under 
        subsection (d)(2) shall, subject to appropriations, be 
        available for projects to develop, plan, construct, acquire, or 
        operate special equipment, instrumentation, or facilities for 
        investigators conducting research and development in 
        nanoscience and nanoengineering.
            (2) Projects.--Projects under paragraph (1) may include the 
        measurement of properties at the scale of 1 to 100 nanometers, 
        manipulation at such scales, and the integration of 
        technologies based on nanoscience or nanoengineering into bulk 
        materials or other technologies.
            (3) Facilities.--Facilities under paragraph (1) may include 
        electron microcharacterization facilities, microlithography 
        facilities, scanning probe facilities and related 
        instrumentation science.
            (4) Collaboration.--The Secretary shall encourage 
        collaborations among universities, laboratories and industry at 
        facilities under this subsection. At least one facility under 
        this subsection shall have a specific mission of technology 
        transfer to other institutions and to industry.
    (d) Authorization of Appropriations.--
            (1) Total authorization.--From amounts authorized to be 
        appropriated under section 1251(b), the following amounts are 
        authorized for activities under this section--
                    (A) $270,000,000 for fiscal year 2003;
                    (B) $290,000,000 for fiscal year 2004;
                    (C) $310,000,000 for fiscal year 2005; and
                    (D) $330,000,000 for fiscal year 2006.
            (2) Nanoscience and nanoengineering research centers and 
        major instrumentation.--Of the amounts under paragraph (1), the 
        following amounts are authorized to carry out subsection (c)--
                    (A) $135,000,000 for fiscal year 2003;
                    (B) $150,000,000 for fiscal year 2004;
                    (C) $120,000,000 for fiscal year 2005; and
                    (D) $100,000,000 for fiscal year 2006.

SEC. 1253. ADVANCED SCIENTIFIC COMPUTING FOR ENERGY MISSIONS.

    (a) Establishment.--The Secretary, acting through the Office of 
Science, shall support a program to advance the Nation's computing 
capability across a diverse set of grand challenge computationally 
based science problems related to departmental missions.
    (b) Duties of the Office of Science.--In carrying out the program 
under this section, the Office of Science shall--
            (1) advance basic science through computation by developing 
        software to solve grand challenge science problems on new 
        generations of computing platforms,
            (2) enhance the foundations for scientific computing by 
        developing the basic mathematical and computing systems 
        software needed to take full advantage of the computing 
        capabilities of computers with peak speeds of 100 teraflops or 
        more, some of which may be unique to the scientific problem of 
        interest,
            (3) enhance national collaboratory and networking 
        capabilities by developing software to integrate geographically 
        separated researchers into effective research teams and to 
        facilitate access to and movement and analysis of large 
        (petabyte) data sets, and
            (4) maintain a robust scientific computing hardware 
        infrastructure to ensure that the computing resources needed to 
        address DOE missions are available; explore new computing 
        approaches and technologies that promise to advance scientific 
        computing.
    (c) High-Performance Computing Act Program.--Section 203(a) of the 
High-Performance Computing Act of 1991 (15 U.S.C. 5523(a)) is amended--
            (1) in paragraph (3), by striking ``and'';
            (2) in paragraph (4), by striking the period and inserting 
        ``; and''; and
            (3) by adding after paragraph (4) the following: ``(5) 
        conduct an integrated program of research, development, and 
        provision of facilities to develop and deploy to scientific and 
        technical users the high-performance computing and 
        collaboration tools needed to fulfill the statutory missions of 
        the Department of Energy in conducting basic and applied energy 
        research.''.
    (d) Coordination With the DOE National Nuclear Security Agency 
Accelerated Strategic Computing Initiative and Other National Computing 
Programs.--The Secretary shall ensure that this program, to the extent 
feasible, is integrated and consistent with--
            (1) the Accelerated Strategic Computing Initiative of the 
        National Nuclear Security Agency; and
            (2) other national efforts related to advanced scientific 
        computing for science and engineering.
    (e) Authorization of Appropriations.--From amounts authorized under 
section 1251(b), the following amounts are authorized for activities 
under this section--
            (1) $285,000,000 for fiscal year 2003;
            (2) $300,000,000 for fiscal year 2004;
            (3) $310,000,000 for fiscal year 2005; and
            (4) $320,000,000 for fiscal year 2006.

SEC. 1254. FUSION ENERGY SCIENCES PROGRAM AND PLANNING.

    (a) Overall Plan for Fusion Energy Sciences Program.--
            (1) In general.--Not later than 6 months after the date of 
        enactment of this subtitle, the Secretary, after consultation 
        with the Fusion Energy Sciences Advisory Committee, shall 
        develop and transmit to the Congress a plan to ensure a strong 
        scientific base for the Fusion Energy Sciences Program within 
        the Office of Science and to enable the experiments described 
        in subsections (b) and (c).
            (2) Objectives of plan.--The plan under this subsection 
        shall include as its objectives--
                    (A) to ensure that existing fusion research 
                facilities and equipment are more fully utilized with 
                appropriate measurements and control tools;
                    (B) to ensure a strengthened fusion science theory 
                and computational base;
                    (C) to encourage and ensure that the selection of 
                and funding for new magnetic and inertial fusion 
                research facilities is based on scientific innovation 
                and cost effectiveness;
                    (D) to improve the communication of scientific 
                results and methods between the fusion science 
                community and the wider scientific community;
                    (E) to ensure that adequate support is provided to 
                optimize the design of the magnetic fusion burning 
                plasma experiments referred to in subsections (b) and 
                (c); and
                    (F) to ensure that inertial confinement fusion 
                facilities are utilized to the extent practicable for 
                the purpose of inertial fusion energy research and 
                development.
    (b) Plan for United States Fusion Experiment.--
            (1) In general.--The Secretary, after consultation with the 
        Fusion Energy Sciences Advisory Committee, shall develop a plan 
        for construction in the United States 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.
            (2) Requirements of plan.--The plan described in paragraph 
        (1) shall--
                    (A) address key burning plasma physics issues; and
                    (B) 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) Plan for Participation in an International Experiment.--In 
addition to the plan described in subsection (b), the Secretary, after 
consultation with the Fusion Energy Sciences Advisory Committee, 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 (b). If the 
Secretary elects to develop a plan under this subsection, he shall 
include the information described in subsection (b)(2), and an estimate 
of the cost of United States participation in such an international 
experiment. The Secretary shall request a review by the National 
Academy of Sciences of a plan developed under this subsection, and 
shall transmit the plan and the review to the Congress no later than 
July 1, 2004.
    (d) Authorization for Research and Development.--The Secretary, 
through the Office of Science, may conduct any research and development 
necessary to fully develop the plans described in this section.
    (e) Authorization of Appropriations.--From amounts authorized under 
section 1251(b) for fiscal year 2003, $335,000,000 are authorized for 
fiscal year 2003 for activities under this section and for activities 
of the Fusion Energy Sciences Program.

        Subtitle F--Energy, Safety, and Environmental Protection

SEC. 1261. CRITICAL ENERGY INFRASTRUCTURE PROTECTION RESEARCH AND 
              DEVELOPMENT.

    (a) In General.--The Secretary shall carry out a research, 
development, demonstration and technology deployment program, in 
partnership with industry, on critical energy infrastructure 
protection, consistent with the roles and missions outlined for the 
Secretary in Presidential Decision Directive 63, entitled ``Critical 
Infrastructure Protection''. The program shall have the following 
goals:
            (1) Increase the understanding of physical and information 
        system disruptions to the energy infrastructure that could 
        result in cascading or widespread regional outages.
            (2) Develop energy infrastructure assurance ``best 
        practices'' through vulnerability and risk assessments.
            (3) Protect against, mitigate the effect of, and improve 
        the ability to recover from disruptive incidents within the 
        energy infrastructure.
    (b) Program Scope.--The program under subsection (a) shall include 
research, development, deployment, technology demonstration for--
            (1) analysis of energy infrastructure interdependencies to 
        quantify the impacts of system vulnerabilities in relation to 
        each other;
            (2) probabilistic risk assessment of the energy 
        infrastructure to account for unconventional and terrorist 
        threats;
            (3) incident tracking and trend analysis tools to assess 
        the severity of threats and reported incidents to the energy 
        infrastructure; and
            (4) integrated multi-sensor, warning and mitigation 
        technologies to detect, integrate, and localize events 
        affecting the energy infrastructure including real time control 
        to permit the reconfiguration of energy delivery systems.
    (c) Regional Coordination.--The program under this section shall 
cooperate with Departmental activities to promote regional coordination 
under section 102 of this Act, to ensure that the technologies and 
assessments developed by the program are transferred in a timely manner 
to State and local authorities, and to the energy industries.
    (d) Coordination With Industry Research Organizations.--The 
Secretary may enter into grants, contracts, and cooperative agreements 
with industry research organizations to facilitate industry 
participation in research under this section and to fulfill applicable 
cost-sharing requirements.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section--
            (1) $25,000,000 for fiscal year 2003;
            (2) $26,000,000 for fiscal year 2004;
            (3) $27,000,000 for fiscal year 2005; and
            (4) $28,000,000 for fiscal year 2006.
    (f) Critical Energy Infrastructure Facility Defined.--For purposes 
of this section, the term ``critical energy infrastructure facility'' 
means a physical or cyber-based system or service for the generation, 
transmission or distribution of electrical energy, or the production, 
refining, transportation, or storage of petroleum, natural gas, or 
petroleum product, the incapacity or destruction of which would have a 
debilitating impact on the defense or economic security of the United 
States. The term shall not include a facility that is licensed by the 
Nuclear Regulatory Commission under section 103 or 104b of the Atomic 
Energy Act of 1954 (42 U.S.C. 2133 and 2134(b)).

SEC. 1262. PIPELINE INTEGRITY, SAFETY, AND RELIABILITY RESEARCH AND 
              DEVELOPMENT.

    (a) In General.--The Secretary of Transportation, in coordination 
with the Secretary of Energy, shall develop and implement an 
accelerated cooperative program of research and development to ensure 
the integrity of natural gas and hazardous liquid pipelines. This 
research and development program shall include materials inspection 
techniques, risk assessment methodology, and information systems 
surety.
    (b) Purpose.--The purpose of the cooperative research program shall 
be to promote research and development to--
            (1) ensure long-term safety, reliability and service life 
        for existing pipelines;
            (2) expand capabilities of internal inspection devices to 
        identify and accurately measure defects and anomalies;
            (3) develop inspection techniques for pipelines that cannot 
        accommodate the internal inspection devices available on the 
        date of enactment;
            (4) develop innovative techniques to measure the structural 
        integrity of pipelines to prevent pipeline failures;
            (5) develop improved materials and coatings for use in 
        pipelines;
            (6) improve the capability, reliability, and practicality 
        of external leak detection devices;
            (7) identify underground environments that might lead to 
        shortened service life;
            (8) enhance safety in pipeline siting and land use;
            (9) minimize the environmental impact of pipelines;
            (10) demonstrate technologies that improve pipeline safety, 
        reliability, and integrity;
            (11) provide risk assessment tools for optimizing risk 
        mitigation strategies; and
            (12) provide highly secure information systems for 
        controlling the operation of pipelines.
    (c) Areas.--In carrying out this section, the Secretary of 
Transportation, in coordination with the Secretary of Energy, shall 
consider research and development on natural gas, crude oil, and 
petroleum product pipelines for--
            (1) early crack, defect, and damage detection, including 
        real-time damage monitoring;
            (2) automated internal pipeline inspection sensor systems;
            (3) land use guidance and set back management along 
        pipeline rights-of-way for communities;
            (4) internal corrosion control;
            (5) corrosion-resistant coatings;
            (6) improved cathodic protection;
            (7) inspection techniques where internal inspection is not 
        feasible, including measurement of structural integrity;
            (8) external leak detection, including portable real-time 
        video imaging technology, and the advancement of computerized 
        control center leak detection systems utilizing real-time 
        remote field data input;
            (9) longer life, high strength, non-corrosive pipeline 
        materials;
            (10) assessing the remaining strength of existing pipes;
            (11) risk and reliability analysis models, to be used to 
        identify safety improvements that could be realized in the near 
        term resulting from analysis of data obtained from a pipeline 
        performance tracking initiative;
            (12) identification, monitoring, and prevention of outside 
        force damage, including satellite surveillance; and
            (13) any other areas necessary to ensuring the public 
        safety and protecting the environment.
    (d) Research and Development Program Plan.--Within 240 days after 
the date of enactment of this section, the Secretary of Transportation, 
in coordination with the Secretary of Energy and the Pipeline Integrity 
Technical Advisory Committee, shall prepare and submit to the Congress 
a five-year program plan to guide activities under this section. In 
preparing the program plan, the Secretary shall consult with 
appropriate representatives of the natural gas, crude oil, and 
petroleum product pipeline industries to select and prioritize 
appropriate project proposals. The Secretary may also seek the advice 
of utilities, manufacturers, institutions of higher learning, Federal 
agencies, the pipeline research institutions, national laboratories, 
State pipeline safety officials, environmental organizations, pipeline 
safety advocates, and professional and technical societies.
    (e) Implementation.--The Secretary of Transportation shall have 
primary responsibility for ensuring the five-year plan provided for in 
subsection (d) is implemented as intended by this section. In carrying 
out the research, development, and demonstration activities under this 
section, the Secretary of Transportation and the Secretary of Energy 
may use, to the extent authorized under applicable provisions of law, 
contracts, cooperative agreements, cooperative research and development 
agreements under the Stevenson-Wydler Technology Innovation Act of 1980 
(15 U.S.C. 3701 et seq.), grants, joint ventures, other transactions, 
and any other form of agreement available to the Secretary consistent 
with the recommendations of the Advisory Committee.
    (f) Reports to Congress.--The Secretary of Transportation shall 
report to the Congress annually as to the status and results to date of 
the implementation of the research and development program plan. The 
report shall include the activities of the Departments of 
Transportation and Energy, the natural laboratories, universities, and 
any other research organizations, including industry research 
organizations.
    (g) Pipeline Integrity Technical Advisory Committee.--
            (1) Establishment.--The Secretary of Transportation shall 
        enter into appropriate arrangements with the National Academy 
        of Sciences to establish and manage the Pipeline Integrity 
        Technical Advisory Committee for the purpose of advising the 
        Secretary of Transportation and the Secretary of Energy on the 
        development and implementation of the research and development 
        program plan under subsection (d). The Advisory Committee shall 
        have an ongoing role in evaluating the progress and results of 
        the research, development, and demonstration carried out under 
        this section.
            (2) Membership.--The National Academy of Sciences shall 
        appoint the members of the Pipeline Integrity Technical 
        Advisory Committee after consultation with the Secretary of 
        Transportation and the Secretary of Energy. Members appointed 
        to the Advisory Committee should have the necessary 
        qualifications to provide technical contributions to the 
        purposes of the Advisory Committee.
    (h) Authorization of Appropriations.--(1) There are authorized to 
be appropriated to the Secretary of Transportation for carrying out 
this section $3,000,000, to be derived from user fees under section 
60301 of title 49, United States Code, for each of the fiscal years 
2003 through 2006.
    (2) Of the amounts available in the Oil Spill Liability Trust Fund 
established by section 9509 of the Internal Revenue Code of 1986 (26 
U.S.C. 9509), $3,000,000 shall be transferred to the Secretary of 
Transportation, as provided in appropriation Acts, to carry out 
programs for detection, prevention and mitigation of oil spills under 
this section for each of the fiscal years 2003 through 2006.
    (3) There are authorized to be appropriated to the Secretary of 
Energy for carrying out this section such sums as may be necessary for 
each of the fiscal years 2003 through 2006.

SEC. 1263. RESEARCH AND DEMONSTRATION FOR REMEDIATION OF GROUNDWATER 
              FROM ENERGY ACTIVITIES.

    (a) In General.--The Secretary shall carry out a research, 
development, demonstration, and technology deployment program to 
improve methods for environmental restoration of groundwater 
contaminated by energy activities, including oil and gas production, 
surface and underground mining of coal, and in-situ extraction of 
energy resources.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $10,000,000 for 
each of fiscal years 2003 through 2006.

      TITLE XIII--CLIMATE CHANGE-RELATED RESEARCH AND DEVELOPMENT

               Subtitle A--Department of Energy Programs

SEC. 1301. PROGRAM GOALS.

    The goals of the research, development, demonstration, and 
technology deployment programs under this subtitle shall be to--
            (1) provide a sound scientific understanding of the human 
        and natural forces that influence the Earth's climate system, 
        particularly those forces related to energy production and use;
            (2) help mitigate climate change from human activities 
        related to energy production and use; and
            (3) reduce, avoid, or sequester emissions of greenhouse 
        gases in furtherance of the goals of the United National 
        Framework Convention on Climate Change, done at New York on May 
        9, 1992, in a manner that does not result in serious harm to 
        the U.S. economy.

SEC. 1302. DEPARTMENT OF ENERGY GLOBAL CHANGE SCIENCE RESEARCH.

    (a) Program Direction.--The Secretary, acting through the Office of 
Science, shall conduct a comprehensive research program to understand 
and address the effects of energy production and use on the global 
climate system.
    (b) Program Elements.--
            (1) Climate modeling.--The Secretary shall--
                    (A) conduct observational and analytical research 
                to acquire and interpret the data needed to describe 
                the radiation balance from the surface of the Earth to 
                the top of the atmosphere;
                    (B) determine the factors responsible for the 
                Earth's radiation balance and incorporate improved 
                understanding of such factors in climate models;
                    (C) improve the treatment of aerosols and clouds in 
                climate models;
                    (D) reduce the uncertainty in decade-to-century 
                model-based projections of climate change; and
                    (E) increase the availability and utility of 
                climate change simulations to researchers and policy 
                makers interested in assessing the relationship between 
                energy and climate change.
            (2) Carbon cycle.--The Secretary shall--
                    (A) carry out field research and modeling 
                activities--
                            (i) to understand and document the net 
                        exchange of carbon dioxide between major 
                        terrestrial ecosystems and the atmosphere; or
                            (ii) to evaluate the potential of proposed 
                        methods of carbon sequestration;
                    (B) develop and test carbon cycle models; and
                    (C) acquire data and develop and test models to 
                simulate and predict the transport, transformation, and 
                fate of energy-related emissions in the atmosphere.
            (3) Ecological processes.--The Secretary shall carry out 
        long-term experiments of the response of intact terrestrial 
        ecosystems to--
                    (A) alterations in climate and atmospheric 
                composition; or
                    (B) land-use changes that affect ecosystem extent 
                and function.
            (4) Integrated assessment.--The Secretary shall develop and 
        improve methods and tools for integrated analyses of the 
        climate change system from emissions of aerosols and greenhouse 
        gases to the consequences of these emissions on climate and the 
        resulting effects of human-induced climate change on economic 
        and social systems, with emphasis on critical gaps in 
        integrated assessment modeling, including modeling of 
        technology innovation and diffusion and the development of 
        metrics of economic costs of climate change and policies for 
        mitigating or adapting to climate change.
    (c) Authorization of Appropriations.--From amounts authorized under 
section 1440(c), there are authorized to be appropriated to the 
Secretary for carrying out activities under this section--
            (1) $150,000,000 for fiscal year 2003;
            (2) $175,000,000 for fiscal year 2004;
            (3) $200,000,000 for fiscal year 2005; and
            (4) $230,000,000 for fiscal year 2006.
    (d) Limitation on Funds.--Funds authorized to be appropriated under 
this section shall not be used for the development, demonstration, or 
deployment of technology to reduce, avoid, or sequester greenhouse gas 
emissions.

SEC. 1303. AMENDMENTS TO THE FEDERAL NONNUCLEAR RESEARCH AND 
              DEVELOPMENT ACT OF 1974.

    Section 6 of the Federal Nonnuclear Energy Research and Development 
Act of 1974 (42 U.S.C. 5905) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3) by striking the period at the 
                end and inserting ``, and''; and
                    (C) by adding at the end the following:
            ``(4) solutions to the effective management of greenhouse 
        gas emissions in the long term by the development of 
        technologies and practices designed to--
                    ``(A) reduce or avoid anthropogenic emissions of 
                greenhouse gases;
                    ``(B) remove and sequester greenhouse gases from 
                emissions streams; and
                    ``(C) remove and sequester greenhouse gases from 
                the atmosphere.''; and
            (2) in subsection (b)--
                    (A) in paragraph (2), by striking ``subsection 
                (a)(1) through (3)'' and inserting ``paragraphs (1) 
                through (4) of subsection (a)''; and
                    (B) in paragraph (3)--
                            (i) in subparagraph (R), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (S), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(T) to pursue a long-term climate technology 
                strategy designed to demonstrate a variety of 
                technologies by which stabilization of greenhouse gases 
                might be best achieved, including accelerated research, 
                development, demonstration and deployment of--
                            ``(i) renewable energy systems;
                            ``(ii) advanced fossil energy technology;
                            ``(iii) advanced nuclear power plant 
                        design;
                            ``(iv) fuel cell technology for 
                        residential, industrial and transportation 
                        applications;
                            ``(v) carbon sequestration practices and 
                        technologies, including agricultural and 
                        forestry practices that store and sequester 
                        carbon;
                            ``(vi) efficient electrical generation, 
                        transmission and distribution technologies; and
                            ``(vii) efficient end use energy 
                        technologies.''.

             Subtitle B--Department of Agriculture Programs

SEC. 1311. CARBON SEQUESTRATION BASIC AND APPLIED RESEARCH.

    (a) Basic Research.--
            (1) In general.--The Secretary of Agriculture shall carry 
        out research in the areas of soil science that promote 
        understanding of--
                    (A) the net sequestration of organic carbon in 
                soil; and
                    (B) net emissions of other greenhouse gases from 
                agriculture.
            (2) Agricultural research service.--The Secretary of 
        Agriculture, acting through the Agricultural Research Service, 
        shall collaborate with other Federal agencies in developing 
        data and carrying out research addressing soil carbon fluxes 
        (losses and gains) and net emissions of methane and nitrous 
        oxide from cultivation and animal management activities.
            (3) Cooperative state research, extension, and education 
        service.--
                    (A) In general.--The Secretary of Agriculture, 
                acting through the Cooperative State Research, 
                Extension, and Education Service, shall establish a 
                competitive grant program to carry out research on the 
                matters described in paragraph (1) in land grant 
                universities and other research institutions.
                    (B) Consultation on research topics.--Before 
                issuing a request for proposals for basic research 
                under paragraph (1), the Cooperative State Research, 
                Extension, and Education Service shall consult with the 
                Agricultural Research Service to ensure that proposed 
                research areas are complementary with and do not 
                duplicate research projects underway at the 
                Agricultural Research Service or other Federal 
                agencies.
    (b) Applied Research.--
            (1) In general.--The Secretary of Agriculture shall carry 
        out applied research in the areas of soil science, agronomy, 
        agricultural economics and other agricultural sciences to--
                    (A) promote understanding of--
                            (i) how agricultural and forestry practices 
                        affect the sequestration of organic and 
                        inorganic carbon in soil and net emissions of 
                        other greenhouse gases;
                            (ii) how changes in soil carbon pools are 
                        cost-effectively measured, monitored, and 
                        verified; and
                            (iii) how public programs and private 
                        market approaches can be devised to incorporate 
                        carbon sequestration in a broader societal 
                        greenhouse gas emission reduction effort;
                    (B) develop methods for establishing baselines for 
                measuring the quantities of carbon and other greenhouse 
                gases sequestered; and
                    (C) evaluate leakage and performance issues.
            (2) Requirements.--To the maximum extent practicable, 
        applied research under paragraph (1) shall--
                    (A) draw on existing technologies and methods; and
                    (B) strive to provide methodologies that are 
                accessible to a nontechnical audience.
            (3) Minimization of adverse environmental impacts.--All 
        applied research under paragraph (1) shall be conducted with an 
        emphasis on minimizing adverse environmental impacts.
            (4) Natural resources conservation service.--The Secretary 
        of Agriculture, acting through the Natural Resources 
        Conservation Service, shall collaborate with other Federal 
        agencies, including the National Institute of Standards and 
        Technology, in developing new measuring techniques and 
        equipment or adapting existing techniques and equipment to 
        enable cost-effective and accurate monitoring and verification, 
        for a wide range of agricultural and forestry practices, of--
                    (A) changes in soil carbon content in agricultural 
                soils, plants, and trees; and
                    (B) net emissions of other greenhouse gases.
            (5) Cooperative state research, extension, and education 
        service.--
                    (A) In general.--The Secretary of Agriculture, 
                acting through the Cooperative State Research, 
                Extension, and Education Service, shall establish a 
                competitive grant program to encourage research on the 
                matters described in paragraph (1) by land grant 
                universities and other research institutions.
                    (B) Consultation on research topics.--Before 
                issuing a request for proposals for applied research 
                under paragraph (1), the Cooperative State Research, 
                Extension, and Education Service shall consult with the 
                National Resources Conservation Service and the 
                Agricultural Research Service to ensure that proposed 
                research areas are complementary with and do not 
                duplicate research projects underway at the 
                Agricultural Research Service or other Federal 
                agencies.
    (c) Research Consortia.--
            (1) In general.--The Secretary of Agriculture may designate 
        not more than 2 research consortia to carry out research 
        projects under this section, with the requirement that the 
        consortia propose to conduct basic research under subsection 
        (a) and applied research under subsection (b).
            (2) Selection.--The consortia shall be selected in a 
        competitive manner by the Cooperative State Research, 
        Extension, and Education Service.
            (3) Eligible consortium participants.--Entities eligible to 
        participate in a consortium include--
                    (A) land grant colleges and universities;
                    (B) private research institutions;
                    (C) State geological surveys;
                    (D) agencies of the Department of Agriculture;
                    (E) research centers of the National Aeronautics 
                and Space Administration and the Department of Energy;
                    (F) other Federal agencies;
                    (G) representatives of agricultural businesses and 
                organizations with demonstrated expertise in these 
                areas; and
                    (H) representatives of the private sector with 
                demonstrated expertise in these areas.
            (4) Reservation of funding.--If the Secretary of 
        Agriculture designates 1 or 2 consortia, the Secretary of 
        Agriculture shall reserve for research projects carried out by 
        the consortium or consortia not more than 25 percent of the 
        amounts made available to carry out this section for a fiscal 
        year.
    (d) Standards of Precision.--
            (1) Conference.--Not later than 3 years after the date of 
        enactment of this subtitle, the Secretary of Agriculture, 
        acting through the Agricultural Research Service and in 
        consultation with the Natural Resources Conservation Service, 
        shall convene a conference of key scientific experts on carbon 
        sequestration and measurement techniques from various sectors 
        (including the government, academic, and private sectors) to--
                    (A) discuss benchmark standards of precision for 
                measuring soil carbon content and net emissions of 
                other greenhouse gases;
                    (B) designate packages of measurement techniques 
                and modeling approaches to achieve a level of precision 
                agreed on by the participants in the conference; and
                    (C) evaluate results of analyses on baseline, 
                permanence, and leakage issues.
            (2) Development of benchmark standards.--
                    (A) In general.--The Secretary shall develop 
                benchmark standards for measuring the carbon content of 
                soils and plants (including trees) based on--
                            (i) information from the conference under 
                        paragraph (1);
                            (ii) research conducted under this section; 
                        and
                            (iii) other information available to the 
                        Secretary.
                    (B) Opportunity for public comment.--The Secretary 
                shall provide an opportunity for the public to comment 
                on benchmark standards developed under subparagraph 
                (A).
            (3) Report.--Not later than 180 days after the conclusion 
        of the conference under paragraph (1), the Secretary of 
        Agriculture shall submit to the Committee on Agriculture of the 
        House of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report on the results 
        of the conference.
    (e) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section $25,000,000 for each of fiscal years 
        2003 through 2006.
            (2) Allocation.--Of the amounts made available to carry out 
        this section for a fiscal year, at least 50 percent shall be 
        allocated for competitive grants by the Cooperative State 
        Research, Extension, and Education Service.

SEC. 1312. CARBON SEQUESTRATION DEMONSTRATION PROJECTS AND OUTREACH.

    (a) Demonstration Projects.--
            (1) Development of monitoring programs.--
                    (A) In general.--The Secretary of Agriculture, 
                acting through the Natural Resources Conservation 
                Service and in cooperation with local extension agents, 
                experts from land grant universities, and other local 
                agricultural or conservation organizations, shall 
                develop user-friendly, programs that combine 
                measurement tools and modeling techniques into 
                integrated packages to monitor the carbon sequestering 
                benefits of conservation practices and net changes in 
                greenhouse gas emissions.
                    (B) Benchmark levels of precision.--The programs 
                developed under subparagraph (A) shall strive to 
                achieve benchmark levels of precision in measurement in 
                a cost-effective manner.
            (2) Projects.--
                    (A) In general.--The Secretary of Agriculture, 
                acting through the Farm Service Agency, shall establish 
                a program under which projects use the monitoring 
                programs developed under paragraph (1) to demonstrate 
                the feasibility of methods of measuring, verifying, and 
                monitoring--
                            (i) changes in organic carbon content and 
                        other carbon pools in agricultural soils, 
                        plants, and trees; and
                            (ii) net changes in emissions of other 
                        greenhouse gases.
                    (B) Evaluation of implications.--The projects under 
                subparagraph (A) shall include evaluation of the 
                implications for reassessed baselines, carbon or other 
                greenhouse gas leakage, and permanence of 
                sequestration.
                    (C) Submission of proposals.--Proposals for 
                projects under subparagraph (A) shall be submitted by 
                the appropriate agency of each State, in cooperation 
                with interested local ,jurisdictions and State 
                agricultural and conservation organizations.
                    (D) Limitation.--Not more than 10 projects under 
                subparagraph (A) may be approved in conjunction with 
                applied research projects under section 1331(b) until 
                benchmark measurement and assessment standards are 
                established under section 1331(d).
    (b) Outreach.--
            (1) In general.--The Cooperative State Research, Extension, 
        and Education Service shall widely disseminate information 
        about the economic and environmental benefits that can be 
        generated by adoption of conservation practices (including 
        benefits from increased sequestration of carbon and reduced 
        emission of other greenhouse gases).
            (2) Project results.--The Cooperative State Research, 
        Extension, and Education Service shall inform farmers, 
        ranchers, and State agricultural and energy offices in each 
        State of--
                    (A) the results of demonstration projects under 
                subsection (a)(2) in the State; and
                    (B) the ways in which the methods demonstrated in 
                the projects might be applicable to the operations of 
                those farmers and ranchers.
            (3) Policy outreach.--On a periodic basis, the Cooperative 
        State Research, Extension, and Education Service shall 
        disseminate information on the policy nexus between global 
        climate change mitigation strategies and agriculture, so that 
        farmers and ranchers may better understand the global 
        implications of the activities of farmers and ranchers.
    (c) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section $10,000,000 for each of fiscal years 
        2003 through 2006.
            (2) Allocation.--Of the amounts made available to carry out 
        this section for a fiscal year, at least 50 percent shall be 
        allocated for demonstration projects under subsection (a)(2).

          Subtitle C--Clean Energy Technology Exports Program

SEC. 1321. CLEAN ENERGY TECHNOLOGY EXPORTS PROGRAM.

    (a) Definitions.--In this section:
            (1) Clean energy technology.--The term ``clean energy 
        technology'' means an energy supply or end-use technology that, 
        over its lifecycle and compared to a similar technology already 
        in commercial use in developing countries, countries in 
        transition, and other partner countries--
                    (A) emits substantially lower levels of pollutants 
                or greenhouse gases; and
                    (B) may generate substantially smaller or less 
                toxic volumes of solid or liquid waste.
            (2) Interagency working group.--The term ``interagency 
        working group'' means the Interagency Working Group on Clean 
        Energy Technology Exports established under subsection (b).
    (b) Interagency Working Group.--
            (1) Establishment.--Not later than 90 days after the date 
        of enactment of this section, the Secretary of Energy, the 
        Secretary of Commerce, and the Administrator of the U.S. Agency 
        for International Development shall jointly establish a 
        Interagency Working Group on Clean Energy Technology Exports. 
        The interagency working group will focus on opening and 
        expanding energy markets and transferring clean energy 
        technology to the developing countries, countries in 
        transition, and other partner countries that are expected to 
        experience, over the next 20 years, the most significant growth 
        in energy production and associated greenhouse gas emissions, 
        including through technology transfer programs under the 
        Framework Convention on Climate Change, other international 
        agreements, and relevant Federal efforts.
            (2) Membership.--The interagency working group shall be 
        jointly chaired by representatives appointed by the agency 
        heads under paragraph (1) and shall also include 
        representatives from the Department of State, the Department of 
        Treasury, the Environmental Protection Agency, the Export-
        Import Bank, the Overseas Private Investment Corporation, the 
        Trade and Development Agency, and other federal agencies as 
        deemed appropriate by all three agency heads under paragraph 
        (1).
            (3) Duties.--The interagency working group shall--
                    (A) analyze technology, policy, and market 
                opportunities for international development, 
                demonstration, and deployment of clean energy 
                technology;
                    (B) investigate issues associated with building 
                capacity to deploy clean energy technology in 
                developing countries, countries in transition, and 
                other partner countries, including--
                            (i) energy-sector reform;
                            (ii) creation of open, transparent, and 
                        competitive markets for energy technologies;
                            (iii) availability of trained personnel to 
                        deploy and maintain the technology; and
                            (iv) demonstration and cost-buydown 
                        mechanisms to promote first adoption of the 
                        technology;
                    (C) examine relevant trade, tax, international, and 
                other policy issues to assess what policies would help 
                open markets and improve U.S. clean energy technology 
                exports in support of the following areas--
                            (i) enhancing energy innovation and 
                        cooperation, including energy sector and market 
                        reform, capacity building, and financing 
                        measures;
                            (ii) improving energy end-use efficiency 
                        technologies, including buildings and 
                        facilities, vehicle, industrial, and co-
                        generation technology initiatives; and
                            (iii) promoting energy supply technologies, 
                        including fossil, nuclear, and renewable 
                        technology initiatives.
                    (D) establish an advisory committee involving the 
                private sector and other interested groups on the 
                export and deployment of clean energy technology;
                    (E) monitor each agency's progress towards meeting 
                goals in the 5-year strategic plan submitted to 
                Congress pursuant to the Energy and Water Development 
                Appropriations Act, 2001, and the Energy and Water 
                Development Appropriations Act, 2002;
                    (F) make recommendations to heads of appropriate 
                Federal agencies on ways to streamline federal programs 
                and policies to improve each agency's role in the 
                international development, demonstration, and 
                deployment of clean energy technology;
                    (G) make assessments and recommendations regarding 
                the distinct technological, market, regional, and 
                stakeholder challenges necessary to carry out the 
                program; and
                    (H) recommend conditions and criteria that will 
                help ensure that United States funds promote sound 
                energy policies in participating countries while 
                simultaneously opening their markets and exporting 
                United States energy technology.
    (c) Federal Support for Clean Energy Technology Transfer.--
Notwithstanding any other provision of law, each federal agency or 
government corporation carrying out an assistance program in support of 
the activities of United States persons in the environment or energy 
sector of a developing country, country in transition, or other partner 
country shall support, to the maximum extent practicable, the transfer 
of United States clean energy technology as part of that program.
    (d) Annual Report.--Not later than April 1, 2002, and each year 
thereafter, the Interagency Working Group shall submit a report to 
Congress on its activities during the preceding calendar year. The 
report shall include a description of the technology, policy, and 
market opportunities for international development, demonstration, and 
deployment of clean energy technology investigated by the Interagency 
Working Group in that year, as well as any policy recommendations to 
improve the expansion of clean energy markets and U.S. clean energy 
technology exports.
    (e) Report on Use of Funds.--Not later than October 1, 2002, and 
each year thereafter, the Secretary of State, in consultation with 
other federal agencies, shall submit a report to Congress indicating 
how United States funds appropriated for clean energy technology 
exports and other relevant federal programs are being directed in a 
manner that promotes sound energy policy commitments in developing 
countries, countries in transition, and other partner countries, 
including efforts pursuant to multi-lateral environmental agreements.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the departments, agencies, and entities of the United 
States described in subsection (b) such sums as may be necessary to 
support the transfer of clean energy technology, consistent with the 
subsidy codes of the World Trade Organization, as part of assistance 
programs carried out by those departments, agencies, and entities in 
support of activities of United States persons in the energy sector of 
a developing country, country in transition, or other partner country.

SEC. 1322. INTERNATIONAL ENERGY TECHNOLOGY DEPLOYMENT PROGRAM.

    (a) In General.--Section 1608 of the Energy Policy Act of 1992 (42 
U.S.C. 13387) is amended by striking subsection (l) and inserting the 
following:
    ``(l) International Energy Technology Deployment Program.--
            ``(1) Definitions.--In this subsection:
                    ``(A) International energy deployment project.--The 
                term `international energy deployment project' means a 
                project to construct an energy production facility 
                outside the United States--
                            ``(i) the output of which will be consumed 
                        outside the United States; and
                            ``(ii) the deployment of which will result 
                        in a greenhouse gas reduction per unit of 
                        energy produced when compared to the technology 
                        that would otherwise be implemented--
                                    ``(I) 10 percentage points or more, 
                                in the case of a unit placed in service 
                                before January 1, 2010;
                                    ``(II) 20 percentage points or 
                                more, in the case of a unit placed in 
                                service after December 31, 2009, and 
                                before January 1, 2020; or
                                    ``(III) 30 percentage points or 
                                more, in the case of a unit placed in 
                                service after December 31, 2019, and 
                                before January 1, 2030.
                    ``(B) Qualifying international energy deployment 
                project.--The term `qualifying international energy 
                deployment project' means an international energy 
                deployment project that--
                            ``(i) is submitted by a United States firm 
                        to the Secretary in accordance with procedures 
                        established by the Secretary by regulation;
                            ``(ii) uses technology that has been 
                        successfully developed or deployed in the 
                        United States;
                            ``(iii) meets the criteria of subsection 
                        (k);
                            ``(iv) is approved by the Secretary, with 
                        notice of the approval being published in the 
                        Federal Register; and
                            ``(v) complies with such terms and 
                        conditions as the Secretary establishes by 
                        regulation.
                    ``(C) United states.--For purposes of this 
                paragraph, the term `United States', when used in a 
                geographical sense, means the 50 States, the District 
                of Columbia, Puerto Rico, Guam, the Virgin Islands, 
                American Samoa, and the Commonwealth of the Northern 
                Mariana Islands.
            ``(2) Pilot program for financial assistance.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this subsection, the Secretary 
                shall, by regulation, provide for a pilot program for 
                financial assistance for qualifying international 
                energy deployment projects.
                    ``(B) Selection criteria.--After consultation with 
                the Secretary of State, the Secretary of Commerce, and 
                the United States Trade Representative, the Secretary 
                shall select projects for participation in the program 
                based solely on the criteria under this title and 
                without regard to the country in which the project is 
                located.
                    ``(C) Financial assistance.--
                            ``(i) In general.--A United States firm 
                        that undertakes a qualifying international 
                        energy deployment project that is selected to 
                        participate in the pilot program shall be 
                        eligible to receive a loan or a loan guarantee 
                        from the Secretary.
                            ``(ii) Rate of interest.--The rate of 
                        interest of any loan made under clause (i) 
                        shall be equal to the rate for Treasury 
                        obligations then issued for periods of 
                        comparable maturities.
                            ``(iii) Amount.--The amount of a loan or 
                        loan guarantee under clause (i) shall not 
                        exceed 50 percent of the total cost of the 
                        qualified international energy deployment 
                        project.
                            ``(iv) Developed countries.--Loans or loan 
                        guarantees made for projects to be located in a 
                        developed country, as listed in Annex I of the 
                        United Nations Framework Convention on Climate 
                        Change, shall require at least a 50 percent 
                        contribution towards the total cost of the loan 
                        or loan guarantee by the host country.
                            ``(v) Developing countries.--Loans or loan 
                        guarantees made for projects to be located in a 
                        developing country (those countries not listed 
                        in Annex I of the United Nations Framework 
                        Convention on Climate Change) shall require at 
                        least a 10 percent contribution towards the 
                        total cost of the loan or loan guarantee by the 
                        host country.
                            ``(vi) Capacity building research.--
                        Proposals made for projects to be located in a 
                        developing country may include a research 
                        component intended to build technological 
                        capacity within the host country. Such research 
                        must be related to the technologies being 
                        deployed and must involve both an institution 
                        in the host country and an industry, university 
                        or national laboratory participant from the 
                        United States. The host institution shall 
                        contribute at least 50 percent of funds 
                        provided for the capacity building research.
                    ``(D) Coordination with other programs.--A 
                qualifying international energy deployment project 
                funded under this section shall not be eligible as a 
                qualifying clean coal technology under section 415 of 
                the Clean Air Act (42 U.S.C. 7651n).
                    ``(E) Report.--Not later than 5 years after the 
                date of enactment of this subsection, the Secretary 
                shall submit to the President a report on the results 
                of the pilot projects.
                    ``(F) Recommendation.--Not later than 60 days after 
                receiving the report under subparagraph (E), the 
                President shall submit to Congress a recommendation, 
                based on the results of the pilot projects as reported 
                by the Secretary of Energy, concerning whether the 
                financial assistance program under this section should 
                be continued, expanded, reduced, or eliminated.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary to carry out 
        this section $100,000,000 for each of fiscal years 2003 through 
        2011, to remain available until expended.''.

           Subtitle D--Climate Change Science and Information

      PART I--AMENDMENTS TO THE GLOBAL CHANGE RESEARCH ACT OF 1990

SEC. 1331. AMENDMENT OF GLOBAL CHANGE RESEARCH ACT OF 1990.

    Except as otherwise expressly provided, whenever in this subtitle 
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 Global 
Change Research Act of 1990 (15 U.S.C. 2921 et seq.).

SEC. 1332. CHANGES IN DEFINITIONS.

    Paragraph (1) of section 2 (15 U.S.C. 2921) is amended by striking 
``Earth and'' and inserting ``Climate and''.

SEC. 1333. CHANGE IN COMMITTEE NAME.

    Section 102 (15 U.S.C. 2932) is amended--
            (1) by striking ``EARTH AND'' in the section heading and 
        inserting ``CLIMATE AND''; and
            (2) by striking ``Earth and'' in subsection (a) and 
        inserting ``Climate and''.

SEC. 1334. CHANGE IN NATIONAL GLOBAL CHANGE RESEARCH PLAN.

    Section 104 (15 U.S.C. 2934) is amended--
            (1) by adding at the end of subsection (c) the following:
            ``(6) Methods for integrating information to provide 
        predictive tools for planning and decision making by 
        governments, communities and the private sector.'';
            (2) by inserting ``local, State, and Federal'' before 
        ``policy makers'' in subsection (d)(3);
            (3) by striking ``and'' in subsection (d)(2);
            (4) by striking ``change.'' in subsection (d)(3) and 
        inserting ``change; and'';
            (5) by adding at the end of subsection (d) the following:
            ``(4) establish a common assessment and modeling framework 
        that may be used in both research and operations to predict and 
        assess the vulnerability of natural and managed ecosystems and 
        of human society in the context of other environmental and 
        social changes.''; and
            (6) by adding at the end the following:
    ``(g) Strategic Plan; Revised Implementation Plan.--The Chairman of 
the Council, through the Committee, shall develop a strategic plan for 
the United States Global Climate Change Research Program for the 10-
year period beginning in 2002 and submit the plan to the Congress 
within 180 days after the date of enactment of the Global Climate 
Change Act of 2002. The Chairman, through the Committee, shall also 
submit a revised implementation plan under subsection (a).''.

SEC. 1335. INTEGRATED PROGRAM OFFICE.

    Section 105 (15 U.S.C. 2935) is amended--
            (1) by redesignating subsections (a), (b), and (c) as 
        subsections (b), (c), and (d), respectively; and
            (2) inserting before subsection (b), as redesignated, the 
        following:
    ``(a) Integrated Program Office.--
            ``(1) Establishment.--There is established in the Office of 
        Science and Technology Policy an integrated program office for 
        the global change research program.
            ``(2) Organization.--The integrated program office 
        established under paragraph (1) shall be headed by the 
        associate director with responsibility for climate change 
        science and technology and shall include a representative from 
        each Federal agency participating in the global change research 
        program.
            ``(3) Function.--The integrated program office shall--
                    ``(A) manage, working in conjunction with the 
                Committee, interagency coordination and program 
                integration of global change research activities and 
                budget requests;
                    ``(B) ensure that the activities and programs of 
                each Federal agency or department participating in the 
                program address the goals and objectives identified in 
                the strategic research plan and interagency 
                implementation plans;
                    ``(C) ensure program and budget recommendations of 
                the Committee are communicated to the President and are 
                integrated into the climate change action strategy;
                    ``(D) review, solicit, and identify, and allocate 
                funds for, partnership projects that address critical 
                research objectives or operational goals of the 
                program, including projects that would fill research 
                gaps identified by the program, and for which project 
                resources are shared among at least 2 agencies 
                participating in the program; and
                    ``(E) review and provide recommendations on, in 
                conjunction with the Committee, all annual 
                appropriations requests from Federal agencies or 
                departments participating in the program.
            ``(4) Grant Authority.--The Integrated Program Office may 
        authorize 1 or more of the departments or agencies 
        participating in the program to enter into contracts and make 
        grants, using funds appropriated for use by the Office of 
        Science and Technology Policy for the purpose of carrying out 
        the responsibilities of that Office.
            ``(5) Funding.--For fiscal year 2003, and each fiscal year 
        thereafter, not less than $13,000,000 shall be made available 
        to the Integrated Program Office from amounts appropriated to 
        or for the use of the Office of Science and Technology 
        Policy.'';
            (3) by striking ``Committee.'' in paragraph (2) of 
        subsection (c), as redesignated, and inserting ``Committee and 
        the Integrated Program Office.''; and
            (4) by inserting ``and the Integrated Program Office'' 
        after ``Committee'' in paragraph (1) of subsection (d), as 
        redesignated.

           PART II--NATIONAL CLIMATE SERVICES AND MONITORING

SEC. 1341. AMENDMENT OF NATIONAL CLIMATE PROGRAM ACT.

    Except as otherwise expressly provided, whenever in this subtitle 
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 National 
Climate Program Act (15 U.S.C. 2901 et seq.).

SEC. 1342. CHANGES IN FINDINGS.

    Section 2 (15 U.S.C. 2901) is amended--
            (1) by striking ``Weather and climate change affect'' in 
        paragraph (1) and inserting ``Weather, climate change, and 
        climate variability affect public safety, environmental 
        security, human health,'';
            (2) by striking ``climate'' in paragraph (2) and inserting 
        ``climate, including seasonal and decadal fluctuations,'';
            (3) by striking ``changes.'' in paragraph (5) and inserting 
        ``changes and providing free exchange of meteorological 
        data.''; and
            (4) by adding at the end the following:
            ``(7) The present rate of advance in research and 
        development is inadequate and new developments must be 
        incorporated rapidly into services for the benefit of the 
        public.
            ``(8) The United States lacks adequate infrastructure and 
        research to meet national climate monitoring and prediction 
        needs.''.

SEC. 1343. TOOLS FOR REGIONAL PLANNING.

    Section 5(d) (15 U.S.C. 2904(d)) is amended--
            (1) by redesignating paragraphs (4) through (9) as 
        paragraphs (5) through (10), respectively;
            (2) by inserting after paragraph (3) the following:
            ``(4) methods for improving modeling and predictive 
        capabilities and developing assessment methods to guide 
        national, regional, and local planning and decision-making on 
        land use, water hazards, and related issues;''
            (3) by inserting ``sharing,'' after ``collection,'' in 
        paragraph (5), as redesignated;
            (4) by striking ``experimental'' each place it appears in 
        paragraph (9), as redesignated;
            (5) by striking ``preliminary'' in paragraph (10), as 
        redesignated;
            (6) by striking ``this Act,'' the first place it appears in 
        paragraph (10), as redesignated, and inserting ``the Global 
        Climate Change Act of 2002,''; and
            (7) by striking ``this Act,'' the second place it appears 
        in paragraph (10), as redesignated, and inserting ``that 
        Act,''.

SEC. 1344. AUTHORIZATION OF APPROPRIATIONS.

    Section 9 (15 U.S.C. 2908) is amended--
            (1) by striking ``1979,'' and inserting ``2002,'';
            (2) by striking ``1980,'' and inserting ``2003,'';
            (3) by striking ``1981,'' and inserting ``2004,''; and
            (4) by striking ``$25,500,000'' and inserting 
        ``$75,500,000''.

SEC. 1345. NATIONAL CLIMATE SERVICE PLAN.

    The Act (15 U.S.C. 2901 et seq.) is amended by inserting after 
section 5 the following:

``SEC. 6. NATIONAL CLIMATE SERVICE PLAN.

    ``Within one year after the date of enactment of the Global Climate 
Change Act of 2002, the Secretary of Commerce shall submit to the 
Senate Committee on Commerce, Science, and Transportation and the House 
Science Committee a plan of action for a National Climate Service under 
the National Climate Program. The plan shall set forth recommendations 
and funding estimates for--
            ``(1) a national center for operational climate monitoring 
        and predicting with the functional capacity to monitor and 
        adjust observing systems as necessary to reduce bias;
            ``(2) the design, deployment, and operation of an adequate 
        national climate observing system that builds upon existing 
        environmental monitoring systems and closes gaps in coverage by 
        existing systems;
            ``(3) the establishment of a national coordinated modeling 
        strategy, including a national climate modeling center to 
        provide a dedicated capability for climate modeling and a 
        regular schedule of projections on a long and short term time 
        schedule and at a range of spatial scales;
            ``(4) improvements in modeling and assessment capabilities 
        needed to integrate information to predict regional and local 
        climate changes and impacts;
            ``(5) in coordination with the private sector, improving 
        the capacity to assess the impacts of predicted and projected 
        climate changes and variations;
            ``(6) a program for long term stewardship, quality control, 
        development of relevant climate products, and efficient access 
        to all relevant climate data, products, and critical model 
        simulations; and
            ``(7) mechanisms to coordinate among Federal agencies, 
        State, and local government entities and the academic community 
        to ensure timely and full sharing and dissemination of climate 
        information and services, both domestically and 
        internationally.''.

SEC. 1346. INTERNATIONAL PACIFIC RESEARCH AND COOPERATION.

    The Secretary of Commerce, in cooperation with the Administrator of 
the National Aeronautics and Space Administration, shall conduct 
international research in the Pacific region that will increase 
understanding of the nature and predictability of climate variability 
in the Asia- Pacific sector, including regional aspects of global 
environmental change. Such research activities shall be conducted in 
cooperation with other nations of the region. There are authorized to 
be appropriated for purposes of this section $1,500,000 to the National 
Oceanic and Atmospheric Administration, $1,500,000 to the National 
Aeronautics and Space Administration, and $500,000 for the Pacific ENSO 
Applications Center.

SEC. 1347. REPORTING ON TRENDS.

    (a) Atmospheric Monitoring and Verification Program.--The Secretary 
of Commerce, in coordination with relevant Federal agencies, shall, as 
part of the National Climate Service, establish an atmospheric 
monitoring and verification program utilizing aircraft, satellite, 
ground sensors, and modeling capabilities to monitor, measure, and 
verify atmospheric greenhouse gas levels, dates, and emissions. Where 
feasible, the program shall measure emissions from identified sources 
participating in the reporting system for verification purposes. The 
program shall use measurements and standards that are consistent with 
those utilized in the greenhouse gas measurement and reporting system 
established under subsection (a) and the registry established under 
section 1102.
    (b) Annual Reporting.--The Secretary of Commerce shall issue an 
annual report that identifies greenhouse emissions and trends on a 
local, regional, and national level. The report shall also identify 
emissions or reductions attributable to individual or multiple sources 
covered by the greenhouse gas measurement and reporting system 
established under section 1102.

              PART III--OCEAN AND COASTAL OBSERVING SYSTEM

SEC. 1351. OCEAN AND COASTAL OBSERVING SYSTEM.

    (a) Establishment.--The President, through the National Ocean 
Research Leadership Council, established by section 7902(a) of title 
10, United States Code, shall establish and maintain an integrated 
ocean and coastal observing system that provides for long-term, 
continuous, and real-time observations of the oceans and coasts for the 
purposes of--
            (1) understanding, assessing and responding to human-
        induced and natural processes of global change;
            (2) improving weather forecasts and public warnings;
            (3) strengthening national security and military 
        preparedness;
            (4) enhancing the safety and efficiency of marine 
        operations;
            (5) supporting efforts to restore the health of and manage 
        coastal and marine ecosystems and living resources;
            (6) monitoring and evaluating the effectiveness of ocean 
        and coastal environmental policies;
            (7) reducing and mitigating ocean and coastal pollution; 
        and
            (8) providing information that contributes to public 
        awareness of the state and importance of the oceans.
    (b) Council Functions.--In addition to its responsibilities under 
section 7902(a) of such title, the Council shall be responsible for 
planning and coordinating the observing system and in carrying out this 
responsibility shall--
            (1) develop and submit to the Congress, within 6 months 
        after the date of enactment of this Act, a plan for 
        implementing a national ocean and coastal observing system 
        that--
                    (A) uses an end-to-end engineering and development 
                approach to develop a system design and schedule for 
                operational implementation;
                    (B) determines how current and planned observing 
                activities can be integrated in a cost-effective 
                manner;
                    (C) provides for regional and concept demonstration 
                projects;
                    (D) describes the role and estimated budget of each 
                Federal agency in implementing the plan;
                    (E) contributes, to the extent practicable, to the 
                National Global Change Research Plan under section 104 
                of the Global Change Research Act of 1990 (15 U.S.C. 
                2934); and
                    (F) makes recommendations for coordination of ocean 
                observing activities of the United States with those of 
                other nations and international organizations;
            (2) serve as the mechanism for coordinating Federal ocean 
        observing requirements and activities;
            (3) work with academic, State, industry and other actual 
        and potential users of the observing system to make effective 
        use of existing capabilities and incorporate new technologies;
            (4) approve standards and protocols for the administration 
        of the system, including--
                    (A) a common set of measurements to be collected 
                and distributed routinely and by uniform methods;
                    (B) standards for quality control and assessment of 
                data;
                    (C) design, testing and employment of forecast 
                models for ocean conditions;
                    (D) data management, including data transfer 
                protocols and archiving; and
                    (E) designation of coastal ocean observing regions; 
                and
            (5) in consultation with the Secretary of State, provide 
        representation at international meetings on ocean observing 
        programs and coordinate relevant Federal activities with those 
        of other nations.
    (c) System Elements.--The integrated ocean and coastal observing 
system shall include the following elements:
            (1) A nationally coordinated network of regional coastal 
        ocean observing systems that measure and disseminate a common 
        set of ocean observations and related products in a uniform 
        manner and according to sound scientific practice, but that are 
        adapted to local and regional needs.
            (2) Ocean sensors for climate observations, including the 
        Arctic Ocean and sub-polar seas.
            (3) Coastal, relocatable, and cabled sea floor 
        observatories.
            (4) Broad bandwidth communications that are capable of 
        transmitting high volumes of data from open ocean locations at 
        low cost and in real time.
            (5) Ocean data management and assimilation systems that 
        ensure full use of new sources of data from space-borne and in 
        situ sensors.
            (6) Focused research programs.
            (7) Technology development program to develop new observing 
        technologies and techniques, including data management and 
        dissemination.
            (8) Public outreach and education.

SEC. 1352. AUTHORIZATION OF APPROPRIATIONS.

    For development and implementation of an integrated ocean and 
coastal observation system under this title, including financial 
assistance to regional coastal ocean observing systems, there are 
authorized to be appropriated $235,000,000 in fiscal year 2003, 
$315,000,000 in fiscal year 2004, $390,000,000 in fiscal year 2005, and 
$445,000,000 in fiscal year 2006.

                 Subtitle E--Climate Change Technology

SEC. 1361. NIST GREENHOUSE GAS FUNCTIONS.

    Section 2(c) of the National Institute of Standards and Technology 
Act (15 U.S.C. 272(c)) is amended--
            (1) striking ``and'' after the semicolon in paragraph (21);
            (2) by redesignating paragraph (22) as paragraph (23); and
            (3) by inserting after paragraph (21) the following:
            ``(22) perform research to develop enhanced measurements, 
        calibrations, standards, and technologies which will enable the 
        reduced production in the United States of greenhouse gases 
        associated with global warming, including carbon dioxide, 
        methane, nitrous oxide, ozone, perfluorocarbons, 
        hydrofluorocarbons, and sulphur hexafluoride; and''.

SEC. 1362. DEVELOPMENT OF NEW MEASUREMENT TECHNOLOGIES.

    (a) In General.--The Secretary of Commerce shall initiate a program 
to develop, with technical assistance from appropriate Federal 
agencies, innovative standards and measurement technologies (including 
technologies to measure carbon changes due to changes in land use 
cover) to calculate--
            (1) greenhouse gas emissions and reductions from 
        agriculture, forestry, and other land use practices;
            (2) non-carbon dioxide greenhouse gas emissions from 
        transportation;
            (3) greenhouse gas emissions from facilities or sources 
        using remote sensing technology; and
            (4) any other greenhouse gas emission or reductions for 
        which no accurate or reliable measurement technology exists.

SEC. 1363. ENHANCED ENVIRONMENTAL MEASUREMENTS AND STANDARDS.

    The National Institute of Standards and Technology Act (15 U.S.C. 
271 et seq.) is amended--
            (1) by redesignating sections 17 through 32 as sections 18 
        through 33, respectively; and
            (2) by inserting after section 16 the following:

``SEC. 17. CLIMATE CHANGE STANDARDS AND PROCESSES.

    ``(a) In General.--The Director shall establish within the 
Institute a program to perform and support research on global climate 
change standards and processes, with the goal of providing scientific 
and technical knowledge applicable to the reduction of greenhouse gases 
(as defined in section 4 of the Global Climate Change Act of 2002).
    ``(b) Research Program.--
            ``(1) In general.--The Director is authorized to conduct, 
        directly or through contracts or grants, a global climate 
        change standards and processes research program.
            ``(2) Research projects.--The specific contents and 
        priorities of the research program shall be determined in 
        consultation with appropriate Federal agencies, including the 
        Environmental Protection Agency, the National Oceanic and 
        Atmospheric Administration, and the National Aeronautics and 
        Space Administration. The program generally shall include basic 
        and applied research--
                    ``(A) to develop and provide the enhanced 
                measurements, calibrations, data, models, and reference 
                material standards which will enable the monitoring of 
                greenhouse gases;
                    ``(B) to assist in establishing of a baseline 
                reference point for future trading in greenhouse gases 
                and the measurement of progress in emissions reduction;
                    ``(C) that will be exchanged internationally as 
                scientific or technical information which has the 
                stated purpose of developing mutually recognized 
                measurements, standards, and procedures for reducing 
                greenhouse gases; and
                    ``(D) to assist in developing improved industrial 
                processes designed to reduce or eliminate greenhouse 
                gases.
    ``(c) National Measurement Laboratories.--
            ``(1) In general.--In carrying out this section, the 
        Director shall utilize the collective skills of the National 
        Measurement Laboratories of the National Institute of Standards 
        and Technology to improve the accuracy of measurements that 
        will permit better understanding and control of these 
        industrial chemical processes and result in the reduction or 
        elimination of greenhouse gases.
            ``(2) Material, process, and building research.--The 
        National Measurement Laboratories shall conduct research under 
        this subsection that includes--
                    ``(A) developing material and manufacturing 
                processes which are designed for energy efficiency and 
                reduced greenhouse gas emissions into the environment;
                    ``(B) developing environmentally-friendly, `green' 
                chemical processes to be used by industry; and
                    ``(C) enhancing building performance with a focus 
                in developing standards or tools which will help 
                incorporate low or no-emission technologies into 
                building designs.
            ``(3) Standards and tools.--The National Measurement 
        Laboratories shall develop standards and tools under this 
        subsection that include software to assist designers in 
        selecting alternate building materials, performance data on 
        materials, artificial intelligence-aided design procedures for 
        building subsystems and `smart buildings', and improved test 
        methods and rating procedures for evaluating the energy 
        performance of residential and commercial appliances and 
        products.
    ``(d) National Voluntary Laboratory Accreditation Program.--The 
Director shall utilize the National Voluntary Laboratory Accreditation 
Program under this section to establish a program to include specific 
calibration or test standards and related methods and protocols 
assembled to satisfy the unique needs for accreditation in measuring 
the production of greenhouse gases. In carrying out this subsection the 
Director may cooperate with other departments and agencies of the 
Federal Government, State and local governments, and private 
organizations.''.

SEC. 1364. TECHNOLOGY DEVELOPMENT AND DIFFUSION.

    (a) Advanced Technology Program Competitions.--The Director of the 
National Institute of Standards and Technology, through the Advanced 
Technology Program, may hold a portion of the Institute's competitions 
in thematic areas, selected after consultation with industry, 
academics, and other Federal Agencies, designed to develop and 
commercialize enabling technologies to address global climate change by 
significantly reducing greenhouse gas emissions and concentrations in 
the atmosphere.
    (b) Manufacturing Extension Partnership Program for ``Green'' 
Manufacturing.--The Director of the National Institute of Standards and 
Technology, through the Manufacturing Extension Partnership Program, 
may develop a program to support the implementation of new ``green'' 
manufacturing technologies and techniques by the more than 380,000 
small manufacturers.

SEC. 1365. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Director to carry 
out functions pursuant to sections 1345, 1351, and 1361 through 1363, 
$10,000,000 for fiscal years 2002 through 2006.

         Subtitle F--Climate Adaptation and Hazards Prevention

                   PART I--ASSESSMENT AND ADAPTATION

SEC. 1371. REGIONAL CLIMATE ASSESSMENT AND ADAPTATION PROGRAM.

    (a) In General.--The President shall establish within the 
Department of Commerce a National Climate Change Vulnerability and 
Adaptation Program for regional impacts related to increasing 
concentrations of greenhouse gases in the atmosphere and climate 
variability.
    (b) Coordination.--In designing such program the Secretary shall 
consult with the Federal Emergency Management Agency, the Environmental 
Protection Agency, the Army Corps of Engineers, the Department of 
Transportation, and other appropriate Federal, State, and local 
government entities.
    (c) Vulnerability Assessments.--The program shall--
            (1) evaluate, based on predictions developed under this Act 
        and the National Climate Program Act (15 U.S.C. 2901 et seq.), 
        regional vulnerability to phenomena associated with climate 
        change and climate variability, including--
                    (A) increases in severe weather events;
                    (B) sea level rise and shifts in the hydrological 
                cycle;
                    (C) natural hazards, including tsunami, drought, 
                flood and fire; and
                    (D) alteration of ecological communities, including 
                at the ecosystem or watershed levels; and
            (2) build upon predictions and other information developed 
        in the National Assessments prepared under the Global Change 
        Research Act of 1990 (15 U.S.C. 2921 et seq.).
    (d) Preparedness Recommendations.--The program shall submit a 
report to Congress within 2 years after the date of enactment of this 
Act that identifies and recommends implementation and funding 
strategies for short and long-term actions that may be taken at the 
national, regional, State, and local level--
            (1) to minimize threats to human life and property,
            (2) to improve resilience to hazards,
            (3) to minimize economic impacts; and
            (4) to reduce threats to critical biological and ecological 
        processes.
    (e) Information and Technology.--The Secretary shall make available 
appropriate information and other technologies and products that will 
assist national, regional, State, and local efforts to reduce loss of 
life and property, and coordinate dissemination of such technologies 
and products.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Commerce $4,500,000 to implement the 
requirements of this section.

SEC. 1372. COASTAL VULNERABILITY AND ADAPTATION.

    (a) Coastal Vulnerability.--Within 2 years after the date of 
enactment of this Act, the Secretary shall, in consultation with the 
appropriate Federal, State, and local governmental entities, conduct 
regional assessments of the vulnerability of coastal areas to hazards 
associated with climate change, climate variability, sea level rise, 
and fluctuation of Great Lakes water levels. The Secretary may also 
establish, as warranted, longer term regional assessment programs. The 
Secretary may also consult with the governments of Canada and Mexico as 
appropriate in developing such regional assessments. In preparing the 
regional assessments, the Secretary shall collect and compile current 
information on climate change, sea level rise, natural hazards, and 
coastal erosion and mapping, and specifically address impacts on Arctic 
regions and the Central, Western, and South Pacific regions. The 
regional assessments shall include an evaluation of--
            (1) social impacts associated with threats to and potential 
        losses of housing, communities, and infrastructure;
            (2) physical impacts such as coastal erosion, flooding and 
        loss of estuarine habitat, saltwater intrusion of aquifers and 
        saltwater encroachment, and species migration; and
            (3) economic impact on local, State, and regional 
        economies, including the impact on abundance or distribution of 
        economically important living marine resources.
    (b) Coastal Adaptation Plan.--The Secretary shall, within 3 years 
after the date of enactment of this Act, submit to the Congress a 
national coastal adaptation plan, composed of individual regional 
adaptation plans that recommend targets and strategies to address 
coastal impacts associated with climate change, sea level rise, or 
climate variability. The plan shall be developed with the participation 
of other Federal, State, and local government agencies that will be 
critical in the implementation of the plan at the State and local 
levels. The regional plans that will make up the national coastal 
adaptation plan shall be based on the information contained in the 
regional assessments and shall identify special needs associated with 
Arctic areas and the Central, Western, and South Pacific regions. The 
Plan shall recommend both short and long-term adaptation strategies and 
shall include recommendations regarding--
            (1) Federal flood insurance program modifications;
            (2) areas that have been identified as high risk through 
        mapping and assessment;
            (3) mitigation incentives such as rolling easements, 
        strategic retreat, State or Federal acquisition in fee simple 
        or other interest in land, construction standards, and zoning;
            (4) land and property owner education;
            (5) economic planning for small communities dependent upon 
        affected coastal resources, including fisheries; and
            (6) funding requirements and mechanisms.
    (c) Technical Planning Assistance.--The Secretary, through the 
National Ocean Service, shall establish a coordinated program to 
provide technical planning assistance and products to coastal States 
and local governments as they develop and implement adaptation or 
mitigation strategies and plans. Products, information, tools and 
technical expertise generated from the development of the regional 
assessments and the regional adaptation plans will be made available to 
coastal States for the purposes of developing their own State and local 
plans.
    (d) Coastal Adaptation Grants.--The Secretary shall provide grants 
of financial assistance to coastal States with Federally approved 
coastal zone management programs to develop and begin implementing 
coastal adaptation programs if the State provides a Federal-to-State 
match of 4 to 1 in the first fiscal year, 2.3 to 1 in the second fiscal 
year, 2 to 1 in the third fiscal year, and 1 to 1 thereafter. 
Distribution of these funds to coastal states shall be based upon the 
formula established under section 306(c) of the Coastal Zone Management 
Act of 1972 (16 U.S.C. 1455(c)), adjusted in consultation with the 
States as necessary to provide assistance to particularly vulnerable 
coastlines.
    (e) Coastal Response Pilot Program.--
            (1) In general.--The Secretary shall establish a 4-year 
        pilot program to provide financial assistance to coastal 
        communities most adversely affected by the impact of climate 
        change or climate variability that are located in States with 
        Federally approved coastal zone management programs.
            (2) Eligible projects.--A project is eligible for financial 
        assistance under the pilot program if it--
                    (A) will restore or strengthen coastal resources, 
                facilities, or infrastructure that have been damaged by 
                such an impact, as determined by the Secretary;
                    (B) meets the requirements of the Coastal Zone 
                Management Act (16 U.S.C. 1451 et seq.) and is 
                consistent with the coastal zone management plan of the 
                State in which it is located; and
                    (C) will not cost more than $100,000.
            (3) Funding share.--The Federal funding share of any 
        project under this subsection may not exceed 75 percent of the 
        total cost of the project. In the administration of this 
        paragraph--
                    (A) the Secretary may take into account in-kind 
                contributions and other non-cash support of any project 
                to determine the Federal funding share for that 
                project; and
                    (B) the Secretary may waive the requirements of 
                this paragraph for a project in a community if--
                            (i) the Secretary determines that the 
                        project is important; and
                            (ii) the economy and available resources of 
                        the community in which the project is to be 
                        conducted are insufficient to meet the non-
                        Federal share of the projects's costs.
    (f) Definitions.--Any term used in this section that is defined in 
section 304 of the Coastal Zone Management Act of 1972 (16 U.S.C. 1453) 
has the meaning given it by that section.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated $3,000,000 annually for regional assessments under 
subsection (a), and $3,000,000 annually for coastal adaptation grants 
under subsection (d).

            PART II--FORECASTING AND PLANNING PILOT PROGRAMS

SEC. 1381. REMOTE SENSING PILOT PROJECTS.

    (a) In General.--The Administrator of the National Aeronautics and 
Space Administration shall establish, through the National Oceanic and 
Atmospheric Administration's Coastal Services Center, a program of 
grants for competitively awarded pilot projects to explore the 
integrated use of sources of remote sensing and other geospatial 
information to address State, local, regional, and tribal agency needs 
to forecast a plan for adaptation to coastal zone and land use changes 
that may result as a consequence of global climate change or climate 
variability.
    (b) Preferred Projects.--In awarding grants under this section, the 
Center shall give preference to projects that--
            (1) focus on areas that are most sensitive to the 
        consequences of global climate change or climate variability;
            (2) make use of existing public or commercial data sets;
            (3) integrate multiple sources of geospatial information, 
        such as geographic information system data, satellite-provided 
        positioning data, and remotely sensed data, in innovative ways;
            (4) offer diverse, innovative approaches that may serve as 
        models for establishing a future coordinated framework for 
        planning strategies for adaptation to coastal zone and land use 
        changes related to global climate change or climate 
        variability;
            (5) include funds or in-kind contributions from non-Federal 
        sources;
            (6) involve the participation of commercial entities that 
        process raw or lightly processed data, often merging that data 
        with other geospatial information, to create data products that 
        have significant value added to the original data; and
            (7) taken together demonstrate as diverse a set of public 
        sector applications as possible.
    (c) Opportunities.--In carrying out this section, the Center shall 
seek opportunities to assist--
            (1) in the development of commercial applications 
        potentially available from the remote sensing industry; and
            (2) State, local, regional, and tribal agencies in applying 
        remote sensing and other geospatial information technologies 
        for management and adaptation to coastal and land use 
        consequences of global climate change or climate variability.
    (d) Duration.--Assistance for a pilot project under subsection (a) 
shall be provided for a period of not more than 3 years.
    (e) Responsibilities of Grantees.--Within 180 days after completion 
of a grant project, each recipient of a grant under subsection (a) 
shall transmit a report to the Center on the results of the pilot 
project and conduct at least one workshop for potential users to 
disseminate the lessons learned from the pilot project as widely as 
feasible.
    (f) Regulations.--The Center shall issue regulations establishing 
application, selection, and implementation procedures for pilot 
projects, and guidelines for reports and workshops required by this 
section.

SEC. 1382. DATABASE ESTABLISHMENT.

    The Center shall establish and maintain an electronic, Internet-
accessible database of the results of each pilot project completed 
under section 1381.

SEC. 1383. DEFINITIONS.

    In this subtitle:
            (1) Center.--The term ``Center'' means the Coastal Services 
        Center of the National Oceanic and Atmospheric Administration.
            (2) Geospatial information.--The term ``geospatial 
        information'' means knowledge of the nature and distribution of 
        physical and cultural features on the landscape based on 
        analysis of data from airborne or spaceborne platforms or other 
        types and sources of data.
            (3) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given that 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).

SEC. 1384. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Administrator to 
carry out the provisions of this subtitle--
            (1) $17,500,000 for fiscal year 2003;
            (2) $20,000,000 for fiscal year 2004;
            (3) $22,500,000 for fiscal year 2005; and
            (4) $25,000,000 for fiscal year 2006.

      TITLE XIV--MANAGEMENT OF DOE SCIENCE AND TECHNOLOGY PROGRAMS

SEC. 1401. DEFINITIONS.

    In this title:
            (1) Applicability of definitions.--The definitions in 
        section 1203 shall apply.
            (2) Single-purpose research facility.--The term ``single-
        purpose research facility'' means any of the following 
        primarily single purpose entities owned by the Department of 
        Energy--
                    (A) Ames Laboratory;
                    (B) East Tennessee Technology Park;
                    (C) Environmental Measurement Laboratory;
                    (D) Fernald Environmental Management Project;
                    (E) Fermi National Accelerator Laboratory;
                    (F) Kansas City Plant;
                    (G) Nevada Test Site;
                    (H) New Brunswick Laboratory;
                    (I) Pantex Weapons Facility;
                    (J) Princeton Plasma Physics Laboratory;
                    (K) Savannah River Technology Center;
                    (L) Stanford Linear Accelerator Center;
                    (M) Thomas Jefferson National Accelerator Facility;
                    (N) Y-12 facility at Oak Ridge National Laboratory;
                    (O) Waste Isolation Pilot Plant; or
                    (P) other similar organization of the Department 
                designated by the Secretary that engages in technology 
                transfer, partnering, or licensing activities.

SEC. 1402. AVAILABILITY OF FUNDS.

    Funds authorized to be appropriated to the Department of Energy 
under title XII, title XIII, and title XV shall remain available until 
expended.

SEC. 1403. COST SHARING.

    (a) Research and Development.--For research and development 
projects funded from appropriations authorized under subtitles A 
through D of title XII, 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 Deployment.--For demonstration and technology 
deployment activities funded from appropriations authorized under 
subtitles A through D of title XII, the Secretary shall require a 
commitment from non-federal sources of at least 50 percent of the costs 
of the project directly and specifically related to any demonstration 
or technology deployment activity. The Secretary may reduce or 
eliminate 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 one or more goals of this title.
    (c) Calculation of Amount.--In calculating the amount of the non-
Federal commitment under subsection (a) or (b), the Secretary shall 
include cash, personnel, services, equipment, and other resources.

SEC. 1404. MERIT REVIEW OF PROPOSALS.

    Awards of funds authorized under title XII, subtitle A of title 
XIII, and title XV shall be made only after an independent review of 
the scientific and technical merit of the proposals for such awards has 
been made by the Department of Energy.

SEC. 1405. EXTERNAL TECHNICAL REVIEW OF DEPARTMENTAL PROGRAMS.

    (a) National Energy Research and Development Advisory Boards.--(1) 
The Secretary shall establish an advisory board to oversee Department 
research and development programs in each of the following areas--
            (A) energy efficiency;
            (B) renewable energy;
            (C) fossil energy;
            (D) nuclear energy; and
            (E) climate change technology, with emphasis on 
        integration, collaboration, and other special features of the 
        cross-cutting technologies supported by the Office of Climate 
        Change Technology.
    (2) The Secretary may designate an existing advisory board within 
the Department to fulfill the responsibilities of an advisory board 
under this subsection, or may enter into appropriate arrangements with 
the National Academy of Sciences to establish such an advisory board.
    (b) Utilization of Existing Committees.--The Secretary of Energy 
shall continue to use the scientific program advisory committees 
chartered under the Federal Advisory Committee Act by the Office of 
Science to oversee research and development programs under that Office.
    (c) Membership.--Each advisory board under this section shall 
consist of experts drawn from industry, academia, federal laboratories, 
research institutions, or state, local, or tribal governments, as 
appropriate.
    (d) Meetings and Purposes.--Each advisory board under this section 
shall meet at least semi-annually to review and advise on the progress 
made by the respective research, development, demonstration, and 
technology deployment program. The advisory board shall also review the 
adequacy and relevance of the goals established for each program by 
Congress and the President, and may otherwise advise on promising 
future directions in research and development that should be considered 
by each program.

SEC. 1406. IMPROVED COORDINATION AND MANAGEMENT OF CIVILIAN SCIENCE AND 
              TECHNOLOGY PROGRAMS.

    (a) Effective Top-Level Coordination of Research and Development 
Programs.--Section 202(b) of the Department of Energy Organization Act 
(42 U.S.C. 7132(b)) is amended to read as follows:
    ``(b)(1) There shall be in the Department an Under Secretary for 
Energy and Science, who shall be appointed by the President, by and 
with the advice and consent of the Senate. The Under Secretary shall be 
compensated at the rate provided for at level III of the Executive 
Schedule under section 5314 of title 5, United States Code.
    ``(2) The Under Secretary for Energy and Science shall be appointed 
from among persons who--
            ``(A) have extensive background in scientific or 
        engineering fields; and
            ``(B) are well qualified to manage the civilian research 
        and development programs of the Department of Energy.
    ``(3) The Under Secretary for Energy and Science shall--
            ``(A) serve as the Science and Technology Advisor to the 
        Secretary;
            ``(B) monitor the Department's research and development 
        programs in order to advise the Secretary with respect to any 
        undesirable duplication or gaps in such programs;
            ``(C) advise the Secretary with respect to the well-being 
        and management of the multipurpose laboratories under the 
        jurisdiction of the Department;
            ``(D) advise the Secretary with respect to education and 
        training activities required for effective short- and long-term 
        basic and applied research activities of the Department;
            ``(E) advise the Secretary with respect to grants and other 
        forms of financial assistance required for effective short- and 
        long-term basic and applied research activities of the 
        Department; and
            ``(F) exercise authority and responsibility over Assistant 
        Secretaries carrying out energy research and development and 
        energy technology functions under sections 203 and 209, as well 
        as other elements of the Department assigned by the Secretary.
    (b) Reconfiguration of Position of Director of the Office of 
Science.--Section 209 of the Department of Energy Organization Act (41 
U.S.C. 7139) is amended to read as follows--
    ``(a) There shall be within the Department an Office of Science, to 
be headed by an Assistant Secretary of Science, who shall be appointed 
by the President, by and with the advice and consent of the Senate, and 
who shall be compensated at the rate provided for level IV of the 
Executive Schedule under section 5315 of title 5, United States Code.
    ``(b) The Assistant Secretary of Science shall be in addition to 
the Assistant Secretaries provided for under section 203 of this Act.
    ``(c) It shall be the duty and responsibility of the Assistant 
Secretary of Science to carry out the fundamental science and 
engineering research functions of the Department, including the 
responsibility for policy and management of such research, as well as 
other functions vested in the Secretary which he may assign to the 
Assistant Secretary.''.
    (c) Additional Assistant Secretary Position to Enable Improved 
Management of Nuclear Energy Issues.--
            (1) Section 203(a) of the Department of Energy Organization 
        Act (42 U.S.C. 7133(a)) is amended by striking ``There shall be 
        in the Department six Assistant Secretaries'' and inserting 
        ``Except as provided in section 209, there shall be in the 
        Department seven Assistant Secretaries''.
            (2) It is the Sense of the Senate that the leadership for 
        departmental missions in nuclear energy should be at the 
        Assistant Secretary level.
    (d) Technical and Conforming Amendments.--
            (1) Section 202 of the Department of Energy Organization 
        Act (42 U.S.C. 7132) is further amended by adding the following 
        at the end:
    ``(d) There shall be in the Department an Under Secretary, who 
shall be appointed by the President, by and with the advice and consent 
of the Senate, and who shall perform such functions and duties as the 
Secretary shall prescribe, consistent with this section. The Under 
Secretary shall be compensated at the rate provided for level III of 
the Executive Schedule under section 5314 of title 5, United States 
Code.
    ``(e) There shall be in the Department a General Counsel, who shall 
be appointed by the President, by and with the advice and consent of 
the Senate. The General Counsel shall be compensated at the rate 
provided for level IV of the Executive Schedule under section 5315 of 
title 5, United States Code.''.
            (2) Section 5314 of title 5, United States Code, is amended 
        by striking ``Under Secretaries of Energy (2)'' and inserting 
        ``Under Secretaries of Energy (3)''.
            (3) Section 5315 of title 5, United States Code, is amended 
        by--
                    (A) striking ``Director, Office of Science, 
                Department of Energy.''; and
                    (B) striking ``Assistant Secretaries of Energy 
                (6)'' and inserting ``Assistant Secretaries of Energy 
                (8)''.
            (4) The table of contents for the Department of Energy 
        Organization Act (42 U.S.C. 7101 note) is amended--
                    (A) by striking ``Section 209'' and inserting 
                ``Sec. 209'';
                    (B) by striking ``213.'' and inserting ``Sec. 
                213'';
                    (C) by striking ``214.'' and inserting ``Sec. 
                214.'';
                    (D) by striking ``215.'' and inserting ``Sec. 
                215.''; and
                    (E) by striking ``216.'' and inserting ``Sec. 
                216.''.

SEC. 1407. IMPROVED COORDINATION OF TECHNOLOGY TRANSFER ACTIVITIES.

    (a) Technology Transfer Coordinator.--The Secretary shall appoint a 
Technology Transfer Coordinator to perform oversight of and policy 
development for technology transfer activities at the Department. The 
Technology Transfer Coordinator shall coordinate the activities of the 
Technology Partnerships Working Group, and shall oversee the 
expenditure of funds allocated to the Technology Partnership Working 
Group.
    (b) Technology Partnership Working Group.--The Secretary shall 
establish a Technology Partnership Working Group, which shall consist 
of representatives of the National Laboratories and single-purpose 
research facilities, to--
            (1) coordinate technology transfer activities occurring at 
        National Laboratories and single-purpose research facilities;
            (2) exchange information about technology transfer 
        practices; and
            (3) develop and disseminate to the public and prospective 
        technology partners information about opportunities and 
        procedures for technology transfer with the Department.

SEC 1408. TECHNOLOGY INFRASTRUCTURE PROGRAM.

    (a) Establishment.--The Secretary shall establish a Technology 
Infrastructure Program in accordance with this section.
    (b) Purpose.--The purpose of the Technology Infrastructure Program 
shall be to improve the ability of National Laboratories or single-
purpose research facilities to support departmental missions by--
            (1) stimulating the development of technology clusters that 
        can support departmental missions at the National Laboratories 
        or single-purpose research facilities;
            (2) improving the ability of National Laboratories or 
        single-purpose research facilities to leverage and benefit from 
        commercial research, technology, products, processes, and 
        services; and
            (3) encouraging the exchange of scientific and 
        technological expertise between National Laboratories or 
        single-purpose research facilities and--
                    (A) institutions of higher education,
                    (B) technology-related business concerns,
                    (C) nonprofit institutions, and
                    (D) agencies of State, tribal, or local 
                governments,

        that can support departmental missions at the National 
        Laboratories and single-purpose research facilities.
    (c) Projects.--The Secretary shall authorize the Director of each 
National Laboratory or facility to implement the Technology 
Infrastructure Program at such National Laboratory or single-purpose 
research facility through projects that meet the requirements of 
subsections (d) and (e).
    (d) Program Requirements.--Each project funded under this section 
shall meet the following requirements:
            (1) Minimum participants.--Each project shall at a minimum 
        include--
                    (A) a National Laboratory or single-purpose 
                research facility; and
                    (B) one of the following entities--
                            (i) a business,
                            (ii) an institution of higher education,
                            (iii) a nonprofit institution, or
                            (iv) an agency of a State, local, or tribal 
                        government.
            (2) Cost sharing.--
                    (A) Minimum amount.--Not less than 50 percent of 
                the costs of each project funded under this section 
                shall be provided from non-Federal sources.
                    (B) Qualified funding and resources.--(i) The 
                calculation of costs paid by the non-Federal sources to 
                a project shall include cash, personnel, services, 
                equipment, and other resources expended on the project.
                    (ii) Independent research and development expenses 
                of government contractors that qualify for 
                reimbursement under section 31-205-18(e) of the Federal 
                Acquisition Regulations issued pursuant to section 
                25(c)(1) of the Office of Federal Procurement Policy 
                Act (41 U.S.C. 421(c)(1)) may be credited towards costs 
                paid by non-Federal sources to a project, if the 
                expenses meet the other requirements of this section.
                    (iii) No funds or other resources expended either 
                before the start of a project under this section or 
                outside the project's scope of work shall be credited 
                toward the costs paid by the non-Federal sources to the 
                project.
            (3) Competitive selection.--All projects in which a party 
        other than the Department, a National Laboratory, or a single-
        purpose research facility receives funding under this section 
        shall, to the extent practicable, be competitively selected by 
        the National Laboratory or facility using procedures determined 
        to be appropriate by the Secretary.
            (4) Accounting standards.--Any participant that receives 
        funds under this section, other than a National Laboratory or 
        single-purpose research facility, may use generally accepted 
        accounting principles for maintaining accounts, books, and 
        records relating to the project.
            (5) Limitations.--No Federal funds shall be made available 
        under this section for--
                    (A) construction; or
                    (B) any project for more than five years.
    (e) Selection Criteria.--
            (1) Threshold funding criteria.--The Secretary shall 
        allocate funds under this section only if the Director of the 
        National Laboratory or single-purpose research facility 
        managing the project determines that the project is likely to 
        improve the ability of the National Laboratory or single-
        purpose research facility to achieve technical success in 
        meeting departmental missions.
            (2) Additional criteria.--The Secretary shall require the 
        Director of the National Laboratory or single-purpose research 
        facility managing a project under this section to consider the 
        following criteria in selecting a project to receive Federal 
        funds--
                    (A) the potential of the project to succeed, based 
                on its technical merit, team members, management 
                approach, resources, and project plan;
                    (B) the potential of the project to promote the 
                development of a commercially sustainable technology 
                cluster, which will derive most of the demand for its 
                products or services from the private sector, and which 
                will support departmental missions at the participating 
                National Laboratory or single-purpose research 
                facility;
                    (C) the potential of the project to promote the use 
                of commercial research, technology, products, 
                processes, and services by the participating National 
                Laboratory or single-purpose research facility to 
                achieve its departmental mission or the commercial 
                development of technological innovations made at the 
                participating National Laboratory or single-purpose 
                research facility;
                    (D) the commitment shown by non-Federal 
                organizations to the project, based primarily on the 
                nature and amount of the financial and other resources 
                they will risk on the project;
                    (E) the extent to which the project involves a wide 
                variety and number of institutions of higher education, 
                nonprofit institutions, and technology-related business 
                concerns that can support the missions of the 
                participating National Laboratory or single-purpose 
                research facility and that will make substantive 
                contributions to achieving the goals of the project;
                    (F) the extent of participation in the project by 
                agencies of State, tribal, or local governments that 
                will make substantive contributions to achieving the 
                goals of the project;
                    (G) the extent to which the project focuses on 
                promoting the development of technology-related 
                business concerns that are small business concerns or 
                involves such small business concerns substantively in 
                the project; and
                    (H) such other criteria as the Secretary determines 
                to be appropriate.
    (f) Report to Congress.--Not later than January 1, 2004, the 
Secretary shall report to Congress on whether the Technology 
Infrastructure Program should be continued and, if so, how the program 
should be managed.
    (g) Definitions.--In this section:
            (1) Technology cluster.--The term ``technology cluster'' 
        means a concentration of--
                    (A) technology-related business concerns;
                    (B) institutions of higher education; or
                    (C) other nonprofit institutions,
        that reinforce each other's performance in the areas of 
        technology development through formal or informal 
        relationships.
            (2) Technology-related business concern.--The term 
        ``technology-related business concern'' means a for-profit 
        corporation, company, association, firm, partnership, or small 
        business concern that--
                    (A) conducts scientific or engineering research,
                    (B) develops new technologies,
                    (C) manufactures products based on new 
                technologies, or
                    (D) performs technological services.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for activities under this section 
$10,000,000 for each of fiscal years 2003 and 2004.

SEC. 1409. SMALL BUSINESS ADVOCACY AND ASSISTANCE.

    (a) Small Business Advocate.--The Secretary shall require the 
Director of each National Laboratory, and may require the Director of a 
single-purpose research facility, to appoint a small business advocate 
to--
            (1) increase the participation of small business concerns, 
        including socially and economically disadvantaged small 
        business concerns, in procurement, collaborative research, 
        technology licensing, and technology transfer activities 
        conducted by the National Laboratory or single-purpose research 
        facility;
            (2) report to the Director of the National Laboratory or 
        single-purpose research facility on the actual participation of 
        small business concerns in procurement and collaborative 
        research along with recommendations, if appropriate, on how to 
        improve participation;
            (3) make available to small business concerns training, 
        mentoring, and clear, up-to-date information on how to 
        participate in the procurement and collaborative research, 
        including how to submit effective proposals;
            (4) increase the awareness inside the National Laboratory 
        or single-purpose research facility of the capabilities and 
        opportunities presented by small business concerns; and
            (5) establish guidelines for the program under subsection 
        (b) and report on the effectiveness of such program to the 
        Director of the National Laboratory or single-purpose research 
        facility.
    (b) Establishment of Small Business Assistance Program.--The 
Secretary shall require the Director of each National Laboratory, and 
may require the director of a single-purpose research facility, to 
establish a program to provide small business concerns--
            (1) assistance directed at making them more effective and 
        efficient subcontractors or suppliers to the National 
        Laboratory or single-purpose research facility; or
            (2) general technical assistance, the cost of which shall 
        not exceed $10,000 per instance of assistance, to improve the 
        small business concern's products or services.
    (c) Use of Funds.--None of the funds expended under subsection (b) 
may be used for direct grants to the small business concerns.
    (d) Definitions.--In this section:
            (1) Small business concern.--The term ``small business 
        concern'' has the meaning given such term in section 3 of the 
        Small Business Act (15 U.S.C. 632).
            (2) Socially and economically disadvantaged small business 
        concerns.--The term ``socially and economically disadvantaged 
        small business concerns'' has the meaning given such term in 
        section 8(a)(4) of the Small Business Act (15 U.S.C. 
        637(a)(4)).

SEC. 1410. OTHER TRANSACTIONS.

    (a) In General.--Section 646 of the Department of Energy 
Organization Act (42 U.S.C. 7256) is amended by adding at the end the 
following:
    ``(g) Other Transactions Authority.--(1) In addition to other 
authorities granted to the Secretary to enter into procurement 
contracts, leases, cooperative agreements, grants, and other similar 
arrangements, the Secretary may enter into other transactions with 
public agencies, private organizations, or persons on such terms as the 
Secretary may deem appropriate in furtherance of basic, applied, and 
advanced research functions now or hereafter vested in the Secretary. 
Such other transactions shall not be subject to the provisions of 
section 9 of the Federal Nonnuclear Energy Research and Development Act 
of 1974 (42 U.S.C. 5908).
    ``(2)(A) The Secretary of Energy shall ensure that--
            ``(i) to the maximum extent practicable, no transaction 
        entered into under paragraph (1) provides for research that 
        duplicates research being conducted under existing programs 
        carried out by the Department of Energy; and
            ``(ii) to the extent that the Secretary determines 
        practicable, the funds provided by the Government under a 
        transaction authorized by paragraph (1) do not exceed the total 
        amount provided by other parties to the transaction.
    ``(B) A transaction authorized by paragraph (1) may be used for a 
research project when the use of a standard contract, grant, or 
cooperative agreement for such project is not feasible or appropriate.
    ``(3)(A) The Secretary shall not disclose any trade secret or 
commercial or financial information submitted by a non-Federal entity 
under paragraph (1) that is privileged and confidential.
    ``(B) The Secretary shall not disclose, for five years after the 
date the information is received, any other information submitted by a 
non-Federal entity under paragraph (1), including any proposal, 
proposal abstract, document supporting a proposal, business plan, or 
technical information that is privileged and confidential.
    ``(C) The Secretary may protect from disclosure, for up to five 
years, any information developed pursuant to a transaction under 
paragraph (1) that would be protected from disclosure under section 
552(b)(4) of title 5, United States Code, if obtained from a person 
other than a Federal agency.''.
    (b) Implementation.--Not later than six months after the date of 
enactment of this section, the Department shall establish guidelines 
for the use of other transactions.

SEC. 1411. MOBILITY OF SCIENTIFIC AND TECHNICAL PERSONNEL.

    Not later than two years after the enactment of this section, the 
Secretary, acting through the Technology Transfer Coordinator under 
section 1407, shall determine whether each contractor operating a 
National Laboratory or single-purpose research facility has policies 
and procedures that do not create disincentives to the transfer of 
scientific and technical personnel among the contractor-operated 
National Laboratories or contractor-operated single-purpose research 
facilities.

SEC. 1412. NATIONAL ACADEMY OF SCIENCES REPORT.

    Within 90 days after the date of enactment of this Act, the 
Secretary shall contract with the National Academy of Sciences to--
            (1) conduct a study on the obstacles to accelerating the 
        innovation cycle for energy technology, and
            (2) report to the Congress recommendations for shortening 
        the cycle of research, development, and deployment.

SEC. 1413. REPORT ON TECHNOLOGY READINESS AND BARRIERS TO TECHNOLOGY 
              TRANSFER.

    (a) In General.--The Secretary, acting through the Technology 
Partnership Working Group and in consultation with representatives of 
affected industries, universities, and small business concerns, shall--
            (1) assess the readiness for technology transfer of energy 
        technologies developed through projects funded from 
        appropriations authorized under subtitles A through D of title 
        XIV, and
            (2) identify barriers to technology transfer and 
        cooperative research and development agreements between the 
        Department or a National Laboratory and a non- federal person; 
        and
            (3) make recommendations for administrative or legislative 
        actions needed to reduce or eliminate such barriers.
    (b) Report.--The Secretary provide a report to Congress and the 
President on activities carried out under this section not later than 
one year after the date of enactment of this section, and shall update 
such report on a biennial basis, taking into account progress toward 
eliminating barriers to technology transfer identified in previous 
reports under this section.

                    TITLE XV--PERSONNEL AND TRAINING

SEC. 1501. WORKFORCE TRENDS AND TRAINEESHIP GRANTS.

    (a) Workforce Trends.--
            (1) Monitoring.--The Secretary of Energy (in this title 
        referred to as the ``Secretary''), acting through the 
        Administrator of the Energy Information Administration, in 
        consultation with the Secretary of Labor, shall monitor trends 
        in the workforce of skilled technical personnel supporting 
        energy technology industries, including renewable energy 
        industries, companies developing and commercializing devices to 
        increase energy-efficiency, the oil and gas industry, nuclear 
        power industry, the coal industry, and other industrial sectors 
        as the Secretary may deem appropriate.
            (2) Annual reports.--The Administrator of the Energy 
        Information Administration shall include statistics on energy 
        industry workforce trends in the annual reports of the Energy 
        Information Administration.
            (3) Special reports.--The Secretary shall report to the 
        appropriate committees of Congress whenever the Secretary 
        determines that significant shortfalls of technical personnel 
        in one or more energy industry segments are forecast or have 
        occurred.
    (b) Traineeship Grants for Technically Skilled Personnel.--
            (1) Grant programs.--The Secretary shall establish grant 
        programs in the appropriate offices of the Department to 
        enhance training of technically skilled personnel for which a 
        shortfall is determined under subsection (a).
            (2) Eligible institutions.--As determined by the Secretary 
        to be appropriate to the particular workforce shortfall, the 
        Secretary shall make grants under paragraph (1) to--
                    (A) an institution of higher education;
                    (B) a postsecondary educational institution 
                providing vocational and technical education (within 
                the meaning given those terms in section 3 of the Carl 
                D. Perkins Vocational and Technical Education Act of 
                1998 (20 U.S.C. 2302));
                    (C) appropriate agencies of State, local, or tribal 
                governments; or
                    (D) joint labor and management training 
                organizations with state or federally recognized 
                apprenticeship programs and other employee-based 
                training organizations as the Secretary considers 
                appropriate.
    (c) Definition.--For purposes of this section, the term ``skilled 
technical personnel'' means journey and apprentice level workers who 
are enrolled in or have completed a state or federally recognized 
apprenticeship program and other skilled workers in energy technology 
industries.
    (d) Authorization of Appropriations.--From amounts authorized under 
section 1241(c), there are authorized to be appropriated to the 
Secretary for activities under this section such sums as may be 
necessary for each fiscal year.

SEC. 1502. POSTDOCTORAL AND SENIOR RESEARCH FELLOWSHIPS IN ENERGY 
              RESEARCH.

    (a) Postdoctoral Fellowships.--The Secretary shall establish a 
program of fellowships to encourage outstanding young scientists and 
engineers to pursue postdoctoral research appointments in energy 
research and development at institutions of higher education of their 
choice. In establishing a program under this subsection, the Secretary 
may enter into appropriate arrangements with the National Academy of 
Sciences to help administer the program.
    (b) Distinguished Senior Research Fellowships.--The Secretary shall 
establish a program of fellowships to allow outstanding senior 
researchers in energy research and development and their research 
groups to explore research and development topics of their choosing for 
a fixed period of time. Awards under this program shall be made on the 
basis of past scientific or technical accomplishment and promise for 
continued accomplishment during the period of support, which shall not 
be less than 3 years.
    (c) Authorization of Appropriations.--From amounts authorized under 
section 1241(c), there are authorized to be appropriated to the 
Secretary for activities under this section such sums as may be 
necessary for each fiscal year.

SEC. 1503. TRAINING GUIDELINES FOR ELECTRIC ENERGY INDUSTRY PERSONNEL.

    (a) Model Guidelines.--The Secretary shall, in cooperation with 
electric generation, transmission, and distribution companies and 
recognized representatives of employees of those entities, develop 
model employee training guidelines to support electric supply system 
reliability and safety.
    (b) Content of Guidelines.--The guidelines under this section shall 
include--
            (1) requirements for worker training, competency, and 
        certification, developed using criteria set forth by the 
        Utility Industry Group recognized by the National Skill 
        Standards Board; and
            (2) consolidation of existing guidelines on the 
        construction, operation, maintenance, and inspection of 
        electric supply generation, transmission and distribution 
        facilities such as those established by the National Electric 
        Safety Code and other industry consensus standards.

SEC. 1504. NATIONAL CENTER ON ENERGY MANAGEMENT AND BUILDING 
              TECHNOLOGIES.

    The Secretary shall establish a National Center on Energy 
Management and Building Technologies, to carry out research, education, 
and training activities to facilitate the improvement of energy 
efficiency and indoor air quality in industrial, commercial and 
residential buildings. The National Center shall be established in 
cooperation with--
            (1) recognized representatives of employees in the heating, 
        ventilation, and air conditioning industry;
            (2) contractors that install and maintain heating, 
        ventilation and air conditioning systems and equipment;
            (3) manufacturers of heating, ventilation and air-
        conditioning systems and equipment;
            (4) representatives of the advanced building envelope 
        industry, including design, windows, lighting, and insulation 
        industries; and
            (5) other entities as appropriate.

SEC. 1505. IMPROVED ACCESS TO ENERGY-RELATED SCIENTIFIC AND TECHNICAL 
              CAREERS.

    (a) Department of Energy Science Education Programs.--Section 3164 
of the Department of Energy Science Education Enhancement Act (42 
U.S.C. 7381a) is amended by adding at the end the following:
    ``(c) Programs for Women and Minority Students.--In carrying out a 
program under subsection (a), the Secretary shall give priority to 
activities that are designed to encourage women and minority students 
to pursue scientific and technical careers.''.
    (b) Partnerships With Historically Black Colleges and Universities, 
Hispanic-Servicing Institutions, and Tribal Colleges.--The Department 
of Energy Science Education Enhancement Act (42 U.S.C. 7381 et seq.) is 
amended--
            (1) by redesignating sections 3167 and 3168 as sections 
        3168 and 3169, respectively; and
            (2) by inserting after section 3166 the following:

``SEC. 3167. PARTNERSHIPS WITH HISTORICALLY BLACK COLLEGES AND 
              UNIVERSITIES, HISPANIC-SERVING INSTITUTIONS, AND TRIBAL 
              COLLEGES.

    ``(a) Definitions.--In this section:
            ``(1) Hispanic-serving institution.--The term `Hispanic-
        serving institution' has the meaning given the term in section 
        502(a) of the Higher Education Act of 1965 (20 U.S.C. 
        1101a(a)).
            ``(2) Historically black college or university.--The term 
        `historically Black college or university' has the meaning 
        given the term `part B institution' in section 322 of the 
        Higher Education Act of 1965 (20 U.S.C. 1061).
            ``(3) National laboratory.--The term `National Laboratory' 
        has the meaning given the term in section 1203 of the Energy 
        Science and Technology Enhancement Act of 2002.
            ``(4) Science facility.--The term `science facility' has 
        the meaning given the term `single-purpose research facility' 
        in section 1401 of the Energy Science and Technology 
        Enhancement Act of 2002.
            ``(5) Tribal college.--The term `tribal college' has the 
        meaning given the term `tribally controlled college or 
        university' in section 2(a) of the Tribally Controlled College 
        or University Assistance Act of 1978 (25 U.S.C. 1801(a)).
    ``(b) Education Partnership.--
            ``(1) In general.--The Secretary shall direct the Director 
        of each National Laboratory, and may direct the head of any 
        science facility, to increase the participation of historically 
        Black colleges or universities, Hispanic-serving institutions, 
        or tribal colleges in activities that increase the capacity of 
        the historically Black colleges or universities, Hispanic-
        serving institutions, or tribal colleges to train personnel in 
        science or engineering.
            ``(2) Activities.--An activity under paragraph (1) may 
        include--
                    ``(A) collaborative research;
                    ``(B) a transfer of equipment;
                    ``(C) training of personnel at a National 
                Laboratory or science facility; and
                    ``(D) a mentoring activity by personnel at a 
                National Laboratory or science facility.
    ``(c) Report.--Not later than 2 years after the date of enactment 
of this section, the Secretary shall submit 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 activities carried out under 
this section.''.

             DIVISION F--TECHNOLOGY ASSESSMENT AND STUDIES

                    TITLE XVI--TECHNOLOGY ASSESSMENT

SEC. 1601. NATIONAL SCIENCE AND TECHNOLOGY ASSESSMENT SERVICE.

    The National Science and Technology Policy, Organization, and 
Priorities Act of 1976 (42 U.S.C. 6601 et seq.) is amended by adding at 
the end the following:

    ``TITLE VII--NATIONAL SCIENCE AND TECHNOLOGY ASSESSMENT SERVICE

``SEC. 701. ESTABLISHMENT.

    ``There is hereby created a Science and Technology Assessment 
Service (hereinafter referred to as the `Service'), which shall be 
within and responsible to the legislative branch of the Government.

``SEC. 702. COMPOSITION.

    ``The Service shall consist of a Science and Technology Board 
(hereinafter referred to as the `Board') which shall formulate and 
promulgate the policies of the Service, and a Director who shall carry 
out such policies and administer the operations of the Service.

``SEC. 703. FUNCTIONS AND DUTIES.

    ``The Service shall coordinate and develop information for Congress 
relating to the uses and application of technology to address current 
national science and technology policy issues. In developing such 
technical assessments for Congress, the Service shall utilize, to the 
extent practicable, experts selected in coordination with the National 
Research Council.

``SEC. 704. INITIATION OF ACTIVITIES.

    ``Science and technology assessment activities undertaken by the 
Service may be initiated upon the request of--
            ``(1) the Chairman of any standing, special, or select 
        committee of either House of the Congress, or of any joint 
        committee of the Congress, acting for himself or at the request 
        of the ranking minority member or a majority of the committee 
        members;
            ``(2) the Board; or
            ``(3) the Director.

``SEC. 705. ADMINISTRATION AND SUPPORT.

    ``The Director of the Science and Technology Assessment Service 
shall be appointed by the Board and shall serve for a term of 6 years 
unless sooner removed by the Board. The Director shall receive basic 
pay at the rate provided for level III of the Executive Schedule under 
section 5314 of title 5, United States Code. The Director shall 
contract for administrative support from the Library of Congress.

``SEC. 706. AUTHORITY.

    ``The Service shall have the authority, within the limits of 
available appropriations, to do all things necessary to carry out the 
provisions of this section, including, but without being limited to, 
the authority to--
            ``(1) make full use of competent personnel and 
        organizations outside the Office, public or private, and form 
        special ad hoc task forces or make other arrangements when 
        appropriate;
            ``(2) enter into contracts or other arrangements as may be 
        necessary for the conduct of the work of the Office with any 
        agency or instrumentality of the United States, with any State, 
        territory, or possession or any political subdivision thereof, 
        or with any person, firm, association, corporation, or 
        educational institution, with or without reimbursement, without 
        performance or other bonds, and without regard to section 3709 
        of the Revised Statutes (41 U.S.C. 51);
            ``(3) accept and utilize the services of voluntary and 
        uncompensated personnel necessary for the conduct of the work 
        of the Service and provide transportation and subsistence as 
        authorized by section 5703 of title 5, United States Code, for 
        persons serving without compensation; and
            ``(4) prescribe such rules and regulations as it deems 
        necessary governing the operation and organization of the 
        Service.

``SEC. 707. BOARD.

    ``The Board shall consist of 13 members as follows--
            ``(1) 6 Members of the Senate, appointed by the President 
        pro tempore of the Senate, 3 from the majority party and 3 from 
        the minority party;
            ``(2) 6 Members of the House of Representatives appointed 
        by the Speaker of the House of Representatives, 3 from the 
        majority party and 3 from the minority party; and
            ``(3) the Director, who shall not be a voting member.

``SEC. 708. REPORT TO CONGRESS.

    ``The Service shall submit to the Congress an annual report which 
shall include, but not be limited to, an evaluation of technology 
assessment techniques and identification, insofar as may be feasible, 
of technological areas and programs requiring future analysis. The 
annual report shall be submitted not later than March 15 of each year.

``SEC. 709. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to the Service such sums 
as are necessary to fulfill the requirements of this title.''.

                          TITLE XVII--STUDIES

SEC. 1701. REGULATORY REVIEWS.

    (a) Regulatory Reviews.--Not later than one year after the date of 
enactment of this section and every five years thereafter, each Federal 
agency shall review relevant regulations and standards to identify--
            (1) existing regulations and standards that act as barriers 
        to--
                    (A) market entry for emerging energy technologies 
                (including fuel cells, combined heat and power, 
                distributed power generation, and small-scale renewable 
                energy), and
                    (B) market development and expansion for existing 
                energy technologies (including combined heat and power, 
                small-scale renewable energy, and energy recovery in 
                industrial processes), and
            (2) actions the agency is taking or could take to--
                    (A) remove barriers to market entry for emerging 
                energy technologies and to market expansion for 
                existing technologies,
                    (B) increase energy efficiency and conservation, or
                    (C) encourage the use of new and existing processes 
                to meet energy and environmental goals.
    (b) Report to Congress.--Not later than 18 months after the date of 
enactment of this section, and every five years thereafter, the 
Director of the Office of Science and Technology Policy shall report to 
the Congress on the results of the agency reviews conducted under 
subsection (a).
    (c) Contents of the Report.--The report shall--
            (1) identify all regulatory barriers to--
                    (A) the development and commercialization of 
                emerging energy technologies and processes, and
                    (B) the further development and expansion of 
                existing energy conservation technologies and 
                processes,
            (2) actions taken, or proposed to be taken, to remove such 
        barriers, and
            (3) recommendations for changes in laws or regulations that 
        may be needed to--
                    (A) expedite the siting and development of energy 
                production and distribution facilities,
                    (B) encourage the adoption of energy efficiency and 
                process improvements,
                    (C) facilitate the expanded use of existing energy 
                conservation technologies, and
                    (D) reduce the environmental impacts of energy 
                facilities and processes through transparent and 
                flexible compliance methods.

SEC. 1702. ASSESSMENT OF DEPENDENCE OF HAWAII ON OIL.

    (a) Study.--Not later than 60 days after the enactment of this Act, 
the Secretary of Energy shall initiate a study that assesses the 
economic risk posed by the dependence of Hawaii on oil as the principal 
source of energy.
    (b) Scope of the Study.--The Secretary shall assess--
            (1) the short- and long-term threats to the economy of 
        Hawaii posed by insecure supply and volatile prices;
            (2) the impact on availability and cost of refined 
        petroleum products if oil-fired electric generation is 
        displaced by other sources;
            (3) the feasibility of increasing the contribution of 
        renewable sources to the overall energy requirements of Hawaii; 
        and
            (4) the feasibility of using liquid natural gas as a source 
        of energy to supplement oil.
    (c) Report.--Not later than 300 days after the date of enactment of 
this section, the Secretary shall prepare, in consultation with 
appropriate agencies of the State of Hawaii, industry representatives, 
and citizen groups, and shall submit to Congress a report detailing the 
Secretary's findings, conclusions, and recommendations. The report 
shall include--
            (1) a detailed analysis of the availability, economics, 
        infrastructure needs, and recommendations to increase the 
        contribution of renewable energy sources to the overall energy 
        requirements of Hawaii; and
            (2) a detailed analysis of the use of liquid natural gas, 
        including--
                    (A) the availability of supply,
                    (B) economics,
                    (C) environmental and safety considerations,
                    (D) technical limitations,
                    (E) infrastructure and transportation requirements, 
                and
                    (F) siting and facility configurations, including--
                            (i) onshore and offshore alternatives, and
                            (ii) environmental and safety 
                        considerations of both onshore and offshore 
                        alternatives.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy such sums as may be necessary 
to carry out the purposes of this section.

SEC. 1703. STUDY OF SITING AN ELECTRIC TRANSMISSION SYSTEM ON AMTRAK 
              RIGHT-OF-WAY.

    (a) Study.--The Secretary of Energy shall contract with Amtrak to 
conduct a study of the feasibility of building and operating a new 
electric transmission system on the Amtrak right-of-way in the 
Northeast Corridor.
    (b) Scope of the Study.--The study shall focus on siting the new 
system on the Amtrak right-of-way within the Northeastern Corridor 
between Washington, D.C., and New Rochelle, New York, including the 
Amtrak right-of-way between Philadelphia, Pennsylvania and Harrisburg, 
Pennsylvania.
    (c) Contents of the Study.--The study shall consider--
            (1) alternative geographic configuration of a new 
        electronic transmission system on the Amtrak right-of-way;
            (2) alternative technologies for the system;
            (3) the estimated costs of building and operating each 
        alternative;
            (4) alternative means of financing the system;
            (5) the environmental risks and benefits of building and 
        operating each alternative as well as environmental risks and 
        benefits of building and operating the system on the Northeast 
        Corridor rather than at other locations;
            (6) engineering and technological obstacles to building and 
        operating each alternative; and
            (7) the extent to which each alternative would enhance the 
        reliability of the electric transmission grid and enhance 
        competition in the sale of electric energy at wholesale within 
        the Northeast Corridor.
    (d) Recommendations.--The study shall recommend the optimal 
geographic configuration, the optimal technology, the optimal 
engineering design, and the optimal means of financing for the new 
system from among the alternatives considered.
    (e) Report.--The Secretary of Energy shall submit the completed 
study to the Committee on Energy and Natural Resources of the United 
States Senate and the Committee on Energy and Commerce of the House of 
Representatives not later than 270 days after the date of enactment of 
this section.
    (f) Definitions.--For purposes of this section--
            (1) the term ``Amtrak'' means the National Railroad 
        Passenger Corporation established under chapter 243 of title 
        49, United States Code; and
            (2) the term ``Northeast Corridor'' shall have the meaning 
        given such term under section 24102(7) of title 49, United 
        States Code.

               DIVISION G--ENERGY INFRASTRUCTURE SECURITY

              TITLE XVIII--CRITICAL ENERGY INFRASTRUCTURE

               Subtitle A--Department of Energy Programs

SEC. 1801. DEFINITIONS.

    In this title:
            (1) Critical energy infrastructure.--
                    (A) In general.--The term ``critical energy 
                infrastructure'' means a physical or cyber-based system 
                or service for--
                            (i) the generation, transmission, or 
                        distribution of electric energy; or
                            (ii) the production, refining, or storage 
                        of petroleum, natural gas, or petroleum 
                        product--
                the incapacity or destruction of which would have a 
                debilitating impact on the defense or economic security 
                of the United States.
                    (B) Exclusion.--The term shall not include a 
                facility that is licensed by the Nuclear Regulatory 
                Commission under section 103 or 104 b. of the Atomic 
                Energy Act of 1954 (42 U.S.C. 2133 and 2134(b)).
            (2) Department; national laboratory; secretary.--The terms 
        ``Department'', ``National Laboratory'', and ``Secretary'' have 
        the meaning given such terms in section 1203.

SEC. 1802. ROLE OF THE DEPARTMENT OF ENERGY.

    Section 102 of the Department of Energy Organization Act (42 U.S.C. 
7112) is amended by adding at the end the following:
            ``(20) To ensure the safety, reliability, and security of 
        the nation's energy infrastructure, and to respond to any 
        threat to or disruption of such infrastructure, through 
        activities including--
                    ``(A) research and development;
                    ``(B) financial assistance, technical assistance, 
                and cooperative activities with States, industry, and 
                other interested parties; and
                    ``(C) education and public outreach activities.''.

SEC. 1803. CRITICAL ENERGY INFRASTRUCTURE PROGRAMS.

    (a) Programs.--In addition to the authorities otherwise provided by 
law (including section 1261), the Secretary is authorized to establish 
programs of financial, technical, or administrative assistance to--
            (1) enhance the security of critical energy infrastructure 
        in the United States;
            (2) develop and disseminate, in cooperation with industry, 
        best practices for critical energy infrastructure assurance; 
        and
            (3) protect against, mitigate the effect of, and improve 
        the ability to recover from disruptive incidents affecting 
        critical energy infrastructure.
    (b) Requirements.--A program established under this section shall--
            (1) be undertaken in consultation with the advisory 
        committee established under section 1804;
            (2) have available to it the scientific and technical 
        resources of the Department, including resources at a National 
        Laboratory; and
            (3) be consistent with any overall Federal plan for 
        national infrastructure security developed by the President or 
        his designee.

SEC. 1804. ADVISORY COMMITTEE ON ENERGY INFRASTRUCTURE SECURITY.

    (a) Establishment.--The Secretary shall establish an advisory 
committee, or utilize an existing advisory committee within the 
Department, to advise the Secretary on policies and programs related to 
the security of U.S. energy infrastructure.
    (b) Balanced Membership.--The Secretary shall ensure that the 
advisory committee established or utilized under subsection (a) has a 
membership with an appropriate balance among the various interests 
related to energy infrastructure security, including--
            (1) scientific and technical experts;
            (2) industrial managers;
            (3) worker representatives;
            (4) insurance companies or organizations;
            (5) environmental organizations;
            (6) representatives of State, local, and tribal 
        governments; and
            (7) such other interests as the Secretary may deem 
        appropriate.
    (c) Expenses.--Members of the advisory committee established or 
utilized under subsection (a) shall serve without compensation, and 
shall be allowed travel expenses, including per diem in lieu of 
subsistence, at rates authorized for an employee of an agency under 
subchapter I of chapter 57 of title 5, United States Code, while away 
from the home or regular place of business of the member in the 
performance of the duties of the committee.

SEC. 1805. BEST PRACTICES AND STANDARDS FOR ENERGY INFRASTRUCTURE 
              SECURITY.

    The Secretary, in consultation with the advisory committee under 
section 1804, shall enter into appropriate arrangements with one or 
more standard-setting organizations, or similar organizations, to 
assist the development of industry best practices and standards for 
security related to protecting critical energy infrastructure.

            Subtitle B--Department of the Interior Programs

SEC. 1811. OUTER CONTINENTAL SHELF ENERGY INFRASTRUCTURE SECURITY.

    (a) Definitions.--In this section:
            (1) Approved state plan.--The term ``approved State plan'' 
        means a State plan approved by the Secretary under subsection 
        (c)(3).
            (2) Coastline.--The term ``coastline'' has the same meaning 
        as the term ``coast line'' as defined in subsection 2(c) of the 
        Submerged Lands Act (43 U.S.C. 1301(c)).
            (3) Critical ocs energy infrastructure facility.--The term 
        ``OCS critical energy infrastructure facility'' means--
                    (A) a facility located in an OCS Production State 
                or in the waters of such State related to the 
                production of oil or gas on the Outer Continental 
                Shelf; or
                    (B) a related facility located in an OCS Production 
                State or in the waters of such State that carries out a 
                public service, transportation, or infrastructure 
                activity critical to the operation of an Outer 
                Continental Shelf energy infrastructure facility, as 
                determined by the Secretary.
            (4) Distance.--The term ``distance'' means the minimum 
        great circle distance, measured in statute miles.
            (5) Leased tract.--
                    (A) In general.--The term ``leased tract'' means a 
                tract that--
                            (i) is subject to a lease under section 6 
                        or 8 of the Outer Continental Shelf Lands Act 
                        (43 U.S.C. 1335, 1337) for the purpose of 
                        drilling for, developing, and producing oil or 
                        natural gas resources; and
                            (ii) consists of a block, a portion of a 
                        block, a combination of blocks or portions of 
                        blocks, or a combination of portions of blocks, 
                        as--
                                    (I) specified in the lease; and
                                    (II) depicted on an outer 
                                Continental Shelf official protraction 
                                diagram.
                    (B) Exclusion.--The term ``leased tract'' does not 
                include a tract described in subparagraph (A) that is 
                located in a geographic area subject to a leasing 
                moratorium on January 1, 2001, unless the lease was in 
                production on that date.
            (6) OCS political subdivision.--The term ``OCS political 
        subdivision'' means a county, parish, borough or any equivalent 
        subdivision of an OCS Production State all or part of which 
        subdivision lies within the coastal zone (as defined in section 
        304(1) of the Coastal Zone Management Act of 1972 (16 U.S.C. 
        1453(1)).
            (7) OCS production state.--The term ``OCS Production 
        State'' means the State of--
                    (A) Alaska;
                    (B) Alabama;
                    (C) California;
                    (D) Florida;
                    (F) Louisiana;
                    (G) Mississippi; or
                    (H) Texas.
            (8) Production.--The term ``production'' has the meaning 
        given the term in section 2 of the Outer Continental Shelf 
        Lands Act (43 U.S.C. 1331).
            (9) Program.--The term ``program'' means the Outer 
        Continental Shelf Energy Infrastructure Security Program 
        established under subsection (b).
            (10) Qualified outer continental shelf revenues.--The term 
        ``qualified Outer Continental Shelf revenues'' means all 
        amounts received by the United States from each leased tract or 
        portion of a leased tract lying seaward of the zone defined and 
        governed by section 8(g) of the Outer Continental Shelf Lands 
        Act (43 U.S.C. 1331 et seq.), or lying within such zone but to 
        which section 8(g) does not apply, the geographic center of 
        which lies within a distance of 200 miles from any part of the 
        coastline of any State, including bonus bids, rents, royalties 
        (including payments for royalties taken in kind and sold), net 
        profit share payments, and related late payment interest. Such 
        term does not include any revenues from a leased tract or 
        portion of a leased tract that is included within any area of 
        the Outer Continental Shelf where a moratorium on new leasing 
        was in effect as of January 1, 2001, unless the lease was 
        issued prior to the establishment of the moratorium and was in 
        production on January 1, 2001.
            (11) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (12) State plan.--The term ``State plan'' means a State 
        plan described in subsection (b).
    (b) Establishment.--The Secretary shall establish a program, to be 
known as the ``Outer Continental Shelf Energy Infrastructure Security 
Program,'' under which the Secretary shall provide funds to OCS 
Production States to implement approved State plans to provide security 
against hostile and natural threats to critical OCS energy 
infrastructure facilities and support of any necessary public service 
or transportation activities that are needed to maintain the safety and 
operation of critical energy infrastructure activities. For purposes of 
this program, restoration of any coastal wetland shall be considered to 
be an activity that secures critical OCS energy infrastructure 
facilities from a natural threat.
    (c) State Plans.--
            (1) Initial plan.--Not later than 180 days after the date 
        of enactment of this Act, to be eligible to receive funds under 
        the program, the Governor of an OCS Production State shall 
        submit to the Secretary a plan to provide security against 
        hostile and natural threats to critical energy infrastructure 
        facilities in the OCS Production State and to support any of 
the necessary public service or transportation activities that are 
needed to maintain the safety and operation of critical energy 
infrastructure facilities. Such plan shall include
                    (A) the name of the State agency that will have the 
                authority to represent and act for the State in dealing 
                with the Secretary for purposes of this section;
                    (B) a program for the implementation of the plan 
                which describes how the amounts provided under this 
                section will be used;
                    (C) a contact for each OCS political subdivision 
                and description of how such political subdivisions will 
                use amounts provided under this section, including a 
                certification by the Governor that such uses are 
                consistent with the requirements of this section; and
                    (D) Measures for taking into account other relevant 
                Federal resources and programs.
            (2) Annual reviews.--Not later than 1 year after the date 
        of submission of the plan and annually thereafter, the Governor 
        of an OCS Production State shall--
                    (A) review the approved State plan; and
                    (B) submit to the Secretary any revised State plan 
                resulting from the review.
            (3) Approval of plans.--
                    (A) In general.--In consultation with appropriate 
                Federal security officials and the Secretaries of 
                Commerce and Energy, the Secretary shall--
                            (i) approve each State plan; or
                            (ii) recommend changes to the State plan.
                    (B) Resubmission of state plans.--If the Secretary 
                recommends changes to a State plan under subparagraph 
                (A)(ii), the Governor of the OCS Production State may 
                resubmit a revised State plan to the Secretary for 
                approval.
            (4) Availability of plans.--The Secretary shall provide to 
        Congress a copy of each approved State plan.
            (5) Consultation and public comment.--
                    (A) Consultation.--The Governor of an OCS 
                Production State shall develop the State plan in 
                consultation with Federal, State, and local law 
                enforcement and public safety officials, industry, 
                Indian tribes, the scientific community, and other 
                persons as appropriate.
                    (B) Public comment.--The Governor of an OCS 
                Production State may solicit public comments on the 
                State plan to the extent that the Governor determines 
                to be appropriate.
    (d) Allocation of amounts by the secretary.--The Secretary shall 
allocate the amounts made available for the purposes of carrying out 
the program provided for by this section among OCS Production States as 
follows:
            (1) 25 percent of the amounts shall be divided equally 
        among OCS Production States; and
            (2) 75 percent of the amounts shall be divided among OCS 
        Production States on the basis of the proximity of each OCS 
        Production State to offshore locations at which oil and gas are 
        being produced.
    (e) Calculation.--The amount for each OCS Production State under 
paragraph (d)(2) shall be calculated based on the ratio of qualified 
OCS revenues generated off the coastline of the OCS Production State to 
the qualified OCS revenues generated off the coastlines of all OCS 
Production States for the prior five-year period. Where there is more 
than one OCS Production State within 200 miles of a leased tract, the 
amount of each OCS Production State's payment under paragraph (d)(2) 
for such leased tract shall be inversely proportional to the distance 
between the nearest point on the coastline of such State and the 
geographic center of each leased tract or portion of the leased tract 
(to the nearest whole mile) that is within 200 miles of that coastline, 
as determined by the Secretary. A leased tract or portion of a leased 
tract shall be excluded if the tract or portion is located in a 
geographic area where a moratorium on new leasing was in effect on 
January 1, 2001, unless the lease was issued prior to the establishment 
of the moratorium and was in production on January 1, 2001.
    (f) Payments to ocs political subdivisions.--Thirty-five percent of 
each OCS Production State's allocable share as determined under 
subsection (e) shall be paid directly to the OCS political subdivisions 
by the Secretary based on the following formula:
            (1) 25 percent shall be allocated based on the ratio of 
        such OCS political subdivision's population to the population 
        of all OCS political subdivisions in the OCS Production State.
            (2) 25 percent shall be allocated based on the ratio of 
        such OCS political subdivision's coastline miles to the 
        coastline miles of all OCS political subdivisions in the OCS 
        Production State. For purposes of this subsection, those OCS 
        political subdivisions without coastlines shall be considered 
        to have a coastline that is the average length of the 
        coastlines of all political subdivisions in the state.
            (3) 50 percent shall be allocated based on the relative 
        distance of such OCS political subdivision from any leased 
        tract used to calculate that OCS Production State's allocation 
        using ratios that are inversely proportional to the distance 
        between the point in the coastal political subdivision closest 
        to the geographic center of each leased tract or portion, as 
        determined by the Secretary. For purposes of the calculations 
        under this subparagraph, a leased tract or portion of a leased 
        tract shall be excluded if the leased tract or portion is 
        located in a geographic area where a moratorium on new leasing 
        was in effect on January 1, 2001, unless the lease was issued 
        prior to the establishment of the moratorium and was in 
        production on January 1, 2001.
    (g) Failure To Have Plan Approved.--Any amount allocated to an OCS 
Production State or OCS political subdivision but not disbursed because 
of a failure to have an approved Plan under this section shall be 
allocated equally by the Secretary among all other OCS Production 
States in a manner consistent with this subsection except that the 
Secretary shall hold in escrow such amount until the final resolution 
of any appeal regarding the disapproval of a plan submitted under this 
section. The Secretary may waive the provisions of this paragraph and 
hold an OCS Production State's allocable share in escrow if the 
Secretary determines that such State is making a good faith effort to 
develop and submit, or update, a Plan.
    (h) Use of Amounts Allocated by the Secretary.--
            (1) In general.--Amounts allocated by the Secretary under 
        subsection (d) may be used only in accordance with a plan 
        approved pursuant to subsection (c) for--
                    (A) activities to secure critical OCS energy 
                infrastructure facilities from human or natural 
                threats; and
                    (B) support of any necessary public service or 
                transportation activities that are needed to maintain 
                the safety and operation of critical OCS energy 
                infrastructure facilities.
            (2) Restoration of coastal wetland.--For the purpose of 
        subparagraph (1)(A), restoration of any coastal wetland shall 
        be considered to be an activity that secures critical OCS 
        energy infrastructure facilities from a natural threat.
    (i) Failure to have use.--Any amount allocated to an OCS political 
subdivision but not disbursed because of a failure to have a qualifying 
use as described in subsection (h) shall be allocated by the Secretary 
to the OCS Production State in which the OCS political subdivision is 
located except that the Secretary shall hold in escrow such amount 
until the final resolution of any appeal regarding the use of the 
funds.
    (j) Compliance With Authorized Uses.--If the Secretary determines 
that any expenditure made by an OCS Production State or an OCS 
political subdivision is not consistent with the uses authorized in 
subsection (h), the Secretary shall not disburse any further amounts 
under this section to that OCS Production State or OCS political 
subdivision until the amounts used for the inconsistent expenditure 
have been repaid or obligated for authorized uses.
    (k) Rulemaking.--The Secretary may promulgate such rules and 
regulations as may be necessary to carry out the purposes of this 
section, including rules and regulations setting forth an appropriate 
process for appeals.
    (l) Authorization of Appropriations.--There are hereby authorized 
to be appropriated $450,000,000 for each of the fiscal years 2003 
through 2008 to carry out the purposes of this section.
                           Amendment No. 2917

                                 S. 517