[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 597 Introduced in Senate (IS)]

  1st Session
                                 S. 597

  To provide for a comprehensive and balanced national energy policy.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 22, 2001

  Mr. Bingaman (for himself, Mr. Daschle, Mr. Akaka, Mr. Baucus, Mr. 
Breaux, Ms. Cantwell, Mr. Dorgan, Mr. Leahy, Mr. Reid, Mr. Schumer, Mr. 
 Kennedy, Mrs. Murray, Mr. Rockefeller, and Mr. Torricelli) introduced 
the following bill; which was read twice and referred to the Committee 
                    on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
  To provide for a comprehensive and balanced national energy policy.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Comprehensive and Balanced Energy 
Policy Act of 2001.''

SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

    (a) Divisions.--This Act is organized into five divisions as 
follows:

            (1) Division a.--National Energy Policy Planning and 
        Coordination.
            (2) Division b.--Reliable and Diverse Power Generation and 
        Transmission.
            (3) Division c.--Domestic Oil and Gas Production and 
        Transportation.
            (4) Division d.--Diversifying Energy Demand and Improving 
        Efficiency.
            (5) Division e.--Enhancing Research, Development, and 
        Training.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1.  Short title.
Sec. 2.  Table of contents.
      DIVISION A--NATIONAL ENERGY POLICY PLANNING AND COORDINATION

    TITLE I--INTEGRATION OF ENERGY POLICY AND CLIMATE CHANGE POLICY

      Subtitle A--National Commission on Energy and Climate Change

Sec. 101.  National Commission on Energy and Climate Change.
Sec. 102.  Duties of the Commission.
Sec. 103.  Powers of the Commission.
Sec. 104.  Commission personnel matters.
Sec. 105.  Termination.
Sec. 106.  Authorization of appropriations.
Sec. 107.  Definition of Commission.
       Subtitle B--International Clean Energy Technology Transfer

Sec. 111.  International Clean Energy Technology Transfer.
        TITLE II--REGIONAL COORDINATION ON ENERGY INFRASTRUCTURE

Sec. 201.  Policy on regional coordination.
Sec. 202.  Federal support for regional coordination.
               TITLE III--REGULATORY REVIEWS AND STUDIES

Sec. 301.  Regulatory reviews for new technologies and processes.
Sec. 302.  Review of FERC policies on transmission and wholesale power 
                            markets.
Sec. 303.  Study of policies to address volatility in domestic oil and 
                            gas investment.
Sec. 304.  Power marketing administration rights-of-way study.
Sec. 305.  Review of natural gas pipeline certification procedures.
Sec. 306.  Streamlining fuel specifications.
Sec. 307.  Study on financing for new technologies.
Sec. 308.  Study on the use of the Strategic Petroleum Reserve.
   DIVISION B--RELIABLE AND DIVERSE POWER GENERATION AND TRANSMISSION

           TITLE IV--ELECTRIC ENERGY TRANSMISSION RELIABILITY

See. 401.  Electric reliability organization and oversight.
Sec. 402.  Application of antitrust laws.
           TITLE V--IMPROVED ELECTRICITY CAPACITY AND ACCESS

Sec. 501.  Universal and affordable service.
Sec. 502.  Public benefits fund.
Sec. 503.  Rural construction grants.
Sec. 504.  Comprehensive Indian energy program.
Sec. 505.  Environmental disclosure to consumers.
Sec. 506.  Consumer protections.
Sec. 507.  Wholesale electricity market data.
Sec. 508.  Wholesale electric energy rates in the western energy 
                            market.
Sec. 509.  Natural gas rate ceiling in California.
Sec. 510.  Sale price in bundled natural gas transactions.
            TITLE VI--RENEWABLES AND DISTRIBUTED GENERATION

Sec. 601.  Assessment of available renewable energy resources.
Sec. 602.  Federal purchase requirement.
Sec. 603.  Interconnection standards.
Sec. 604.  Net metering.
Sec. 605.  Access to transmission by intermittent generators.
                  TITLE VII--HYDROELECTRIC RELICENSING

Sec. 701.  Alternative conditions.
Sec. 702.  Disposition of hydroelectric charges.
Sec. 703.  Relicensing study.
                            TITLE VIII--COAL

Sec. 801.  Definitions.
Subtitle A--National Coal-Based Technology Development and Applications 
                                Program

Sec. 811.  Cost and performance goals.
Sec. 812.  Study.
Sec. 813.  Technology research and development programs.
Sec. 814.  Authorization of appropriations.
             Subtitle B--Power Plant Improvement Initiative

Sec. 821.  Power plant improvement initiative program.
Sec. 822.  Financial assistance.
Sec. 823.  Funding.
              TITLE IX--PRICE-ANDERSON ACT REAUTHORIZATION

Sec. 901.  Short title.
Sec. 902.  Indemnification authority.
Sec. 903.  Maximum assessment.
Sec. 904.  DOE liability limit.
Sec. 905.  Incidents outside the United States.
Sec. 906.  Reports.
Sec. 907.  Inflation adjustment.
Sec. 908.  Civil penalties.
Sec. 909.  Effective date.
     DIVISION C--DOMESTIC OIL AND GAS PRODUCTION AND TRANSPORTATION

                    TITLE X--OIL AND GAS PRODUCTION

Sec. 1001.  Outer Continental Shelf Oil and Gas Lease Sale 181.
Sec. 1002.  Federal onshore leasing programs for oil and gas.
Sec. 1003.  Increasing production on State and private lands.
           TITLE XI--PIPELINE SAFETY RESEARCH AND DEVELOPMENT

Sec. 1101.  Pipeline integrity research and development.
Sec. 1102.  Pipeline integrity technical advisory committee.
Sec. 1103.  Authorization of appropriations.
    DIVISION D--DIVERSIFYING ENERGY DEMAND AND IMPROVING EFFICIENCY

                          TITLE XII--VEHICLES

Sec. 1201.  Vehicle fuel efficiency.
Sec. 1202.  Increased use of alternative fuels by federal fleets.
Sec. 1203.  Exception to HOV passenger requirements for alternative 
                            fuel vehicles.
                         TITLE XIII--FACILITIES

Sec. 1301.  Federal energy bank.
Sec. 1302.  Incentives for energy-efficient schools.
Sec. 1303.  Voluntary commitments to reduce industrial energy 
                            intensity.  
       DIVISION E--ENHANCING RESEARCH, DEVELOPMENT, AND TRAINING

              TITLE XIV--RESEARCH AND DEVELOPMENT PROGRAMS

Sec. 1401.  Short title and findings.
Sec. 1402.  Enhanced energy efficiency research and development.
Sec. 1403.  Enhanced renewable energy research and development.
Sec. 1404.  Enhanced fossil energy research and development.
Sec. 1405.  Enhanced nuclear energy research and development.
Sec. 1406.  Enhanced programs in fundamental energy science.
      TITLE XV--MANAGEMENT OF DOE SCIENCE AND TECHNOLOGY PROGRAMS

Sec. 1501.  Merit review.
Sec. 1502.  Cost sharing.
Sec. 1503.  Improved coordination and management of science and 
                            technology.
                   TITLE XVI--PERSONNEL AND TRAINING

Sec. 1601.  Workforce trends and traineeship grants.
Sec. 1602.  Training guidelines for electric energy industry personnel.

      DIVISION A--NATIONAL ENERGY POLICY PLANNING AND COORDINATION

    TITLE I--INTEGRATION OF ENERGY POLICY AND CLIMATE CHANGE POLICY

      Subtitle A--National Commission on Energy and Climate Change

SEC. 101. NATIONAL COMMISSION ON ENERGY AND CLIMATE CHANGE.

    (a) Establishment.--There is established a National Commission on 
Energy and Climate Change, which shall be an independent establishment 
within the executive branch.
    (b) Members.--
            (1) Appointment.--The Commission shall consist of 11 
        members who shall be appointed by the President not later than 
        30 days after the date of enactment of this title.
            (2) Composition.--The members of the Commission shall be--
                    (A) eminent in the field of--
                            (i) energy production, distribution, or 
                        conservation,
                            (ii) energy science or technology,
                            (iii) environmental sciences,
                            (iv) global change sciences, or
                            (v) energy economics; and
                    (B) selected to reflect a fair balance among the 
                points of view represented.
            (3) Political affiliation.--No more than 6 members of the 
        Commission may be members of the same political party as the 
        President. Not less than half of the members of the minority 
        party shall be appointed from among a list of 12 persons 
        nominated by the Democratic Leader of the United States Senate 
        and the Minority Leader of the United States House of 
        Representatives.
            (4) Chairperson.--The President shall designate a member of 
        the Commission to serve as its chairperson.
            (5) Term.--Members shall be appointed for the life of the 
        Commission and may be removed by the President only for 
        inefficiency, neglect of duty, or malfeasance in office.
            (6) Vacancies.--Any vacancy in the Commission shall be 
        filled in the same manner as the original appointment.

SEC. 102. DUTIES OF THE COMMISSION.

    (a) Energy and Climate Change Study.--
            (1) In general.--The Commission shall conduct a study of 
        measures that--
                    (A) could achieve stabilization of greenhouse gas 
                emissions in the United States--
                            (i) at the 1990 level by not later than 
                        2010; and
                            (ii) below the 1990 level by not later than 
                        2020;
                    (B) are consistent with the goals of an overall 
                United States energy and environmental policy; and
                    (C) will lead to the long-term stabilization of 
                greenhouse gas concentrations.
            (2) Types of measures.--The measures to be studied under 
        paragraph (1) shall include--
                    (A) a variety of cost-effective Federal and State 
                policies, programs, standards, and incentives;
                    (B) a domestic or international system that 
                integrates innovative, market-based solutions; and
                    (C) participation in other international 
                institutions, or in the support of international 
                activities, that are established to achieve 
                economically and environmentally sound greenhouse gas 
                stabilization solutions.
    (b) Recommendations.--The Commission shall develop recommendations 
concerning--
            (1) the measures described in subsection (a)(1) that the 
        Commission determines to be appropriate for implementation, 
        giving preference to cost-effective, voluntary, and 
        technologically feasible measures that will--
                    (A) produce measurable net reductions in United 
                States emissions that lead toward the stabilization 
                described in subsection (a)(1)(A); and
                    (B) minimize any adverse impacts on the economy of 
                the United States; and
            (2) the text of legislation and administrative actions that 
        would be necessary to effectuate the measures.
    (c) Strategy.--
            (1) In general.--Not later than one year after the date of 
        enactment of this title, the Commission shall develop and 
        submit to the Congress a United States greenhouse gas 
        management strategy that contains--
                    (A) a detailed statement of the findings and 
                conclusions of the Commission;
                    (B) the recommendations of the Commission for such 
                legislative and administrative actions as the 
                Commission considers appropriate; and
                    (C) appropriate funding recommendations to carry 
                out the recommendations under subparagraph (B).
            (2) Required recommendations.--Recommendations under 
        paragraph (1)(B) shall include specific recommendations 
        concerning--
                    (A) the development of--
                            (i) advanced technologies for a full range 
                        of energy sources;
                            (ii) enhanced energy efficiency and 
                        conservation measures; and
                            (iii) alternative energy technologies and 
                        energy sources;
                    (B) economically and environmentally sound emission 
                reduction strategies to stabilize atmospheric 
                concentrations of greenhouse gases;
                    (C) such changes in institutional and technological 
                systems as are necessary to adapt to climate change in 
                the near term and the long term; and
                    (D) such review, modification, and enhancement of 
                the scientific and economic research efforts of the 
                United States, and improvements to the data resulting 
                from such research, as are appropriate to improve the 
                accuracy of predictions concerning climate change and 
                economic costs and opportunities.

SEC. 103. POWERS OF THE COMMISSION.

    (a) Hearings.--The Commission may hold such hearings, sit and act 
at such times and places, take such testimony, and receive such 
evidence as the Commission considers advisable to carry out the duties 
of the Commission under this title.
    (b) Information From Federal Agencies.--The Commission may secure 
directly from any Federal department or agency such information as the 
Commission considers necessary to carry out the duties of the 
Commission under this title. Upon request of the Chairperson of the 
Commission, the head of such department or agency shall furnish such 
information to the Commission.
    (c) Postal Services.--The Commission may use the United States 
mails in the same manner and under the same conditions as other 
departments and agencies of the Federal Government.

SEC. 104. COMMISSION PERSONNEL MATTERS.

    (a) Compensation of Members.--A member of the Commission 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 Commission.
    (b) Travel Expenses.--A member of the Commission 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 
Commission.
    (c) Staff.--
            (1) Appointment.--The Chairperson of the Commission may, 
        without regard to the civil service laws and regulations, 
        appoint and terminate an executive director and such other 
        additional personnel as may be necessary to enable the 
        Commission to perform its duties. The appointment and 
        termination of the executive director shall be subject to 
        confirmation by the Commission.
            (2) Compensation.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the Chairperson of the Commission 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 may not exceed 
                the rate payable for level V of the Executive Schedule 
                under section 5316 of title 5, United States Code.
    (d) Detail of Government Employees.--Upon the request of the 
Chairperson of the Commission, the head of any Federal department or 
agency may detail employees to the Commission without reimbursement, 
and without interruption or loss of civil service status or privilege.
    (e) Procurement of Temporary or Intermittent Services.--The 
Chairperson of the Commission 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. 105. TERMINATION.

    The Commission shall terminate 90 days after the date on which the 
Commission submits the report under section 102(b).

SEC. 106. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to carry out this section, which shall remain available until 
expended.

SEC. 107. DEFINITION OF COMMISSION.

    For purposes of this title, the term ``Commission'' means the 
National Commission on Energy and Climate Change established by section 
101(a).

       Subtitle B--International Clean Energy Technology Transfer

SEC. 111. INTERNATIONAL CLEAN ENERGY TECHNOLOGY TRANSFER.

    (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 or countries in 
        transition--
                    (A) emits substantially lower levels of pollutants 
                or greenhouse gases; and
                    (B) generates 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 Transfer established under subsection (b).
    (b) Interagency Working Group.--
            (1) Establishment.--Not later than 180 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 Transfer. 
        The interagency working group will focus on the transfer of 
        clean energy technology to the developing countries and 
        countries in transition that are expected to experience, over 
        the next 20 years, the most significant growth in energy 
        production and associated greenhouse gas emissions.
            (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 and countries in transition, 
                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) consult with the private sector and other 
                interested groups on the export and deployment of clean 
                energy technology;
                    (D) 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;
                    (E) 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.
    (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 or country in transition shall support, 
to the maximum extent practicable, the transfer of United States clean 
energy technology as part of that program.
    (d) 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 or country in transition.

        TITLE II--REGIONAL COORDINATION ON ENERGY INFRASTRUCTURE

SEC. 201. 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. 202. FEDERAL SUPPORT FOR REGIONAL COORDINATION.

    (a) Technical Assistance.--The Secretary of Energy may 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 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) Federal agency cooperation.--The Secretary of Energy 
        shall consult and cooperate with 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 III--REGULATORY REVIEWS AND STUDIES

SEC. 301. REGULATORY REVIEWS FOR NEW TECHNOLOGIES AND PROCESSES.

    (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 its regulations and standards to identify--
            (1) existing regulations or standards that act as barriers 
        to market entry for emerging energy technologies (including 
        fuel cells, combined heat and power, distributed generation, 
        and small-scale renewable energy), and
            (2) actions the agency is taking or could take to--
                    (A) remove barriers to market entry for emerging 
                energy technologies,
                    (B) increase energy efficiency, or
                    (C) encourage the use of new 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 the development and 
        commercialization of emerging energy 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, and
                    (C) reduce the environmental impacts of energy 
                facilities through transparent and flexible compliance 
                methods.

SEC. 302. REVIEW OF FERC POLICIES ON TRANSMISSION AND WHOLESALE POWER 
              MARKETS.

    (a) Study.--The Federal Energy Regulatory Commission shall 
reevaluate its regulatory policies on the transmission of electric 
energy and wholesale power rates.
    (b) Scope of Study.--The study shall--
            (1) reevaluate the methods and models for determining 
        market power, taking into account the experience in the Western 
        power grid,
            (2) reevaluate the adequacy and appropriateness of the 
        Commission's definition of ``market power'' as applied to 
        wholesale power markets and the transmission grid,
            (3) analyze the impact of wholesale price volatility on 
        power markets and the effect on the national interest in a 
        reliable and affordable electricity system,
            (4) reevaluate the Commission's policies on transmission, 
        specifically identifying policy changes that may be needed to 
        ensure adequate construction of transmission capacity and 
        operating procedures to ensure the most efficient use of the 
        transmission grid, and
            (5) determine the adequacy of the Commission's voluntary 
        approach to forming regional transmission organizations.
    (c) Report.--The Commission shall report its findings to the 
Congress not later than 120 days after the date of the enactment of 
this section.

SEC. 303. STUDY OF POLICIES TO ADDRESS VOLATILITY IN DOMESTIC OIL AND 
              GAS INVESTMENT.

    (a) Study.--The Secretary of Energy, in close coordination with the 
Secretary of the Interior, the Secretary of Commerce, the Secretary of 
Treasury, and the Interstate Oil and Gas Compact Commission, shall 
evaluate the impact existing federal and state tax and royalty policies 
have on the development of domestic oil and gas resources.
    (b) Scope of Study.--The study under subsection (a) shall analyze--
            (1) the impact on development and drilling of different 
        price scenarios for oil and natural gas;
            (2) the impact of the Alternative Minimum Tax and fixed 
        royalty rates on maintaining development drilling during 
        periods of depressed prices;
            (3) the effect of Federal and state tax and royalty 
        policies on investment in different geological and 
        developmental circumstances, including but not limited to 
        deepwater environments, subsalt formations, well-depth 
        environments, coalbed methane and other unconventional gas 
        formations, and Arctic conditions; and
            (4) compare those policies with tax and royalty regimes in 
        other countries with similar geological, developmental and 
        infrastructure conditions.
    (c) Upon completion of the study under subsection (a), a report 
describing the findings and recommendations for policy changes shall be 
provided to the Congress and the Governors of the member states of the 
Interstate Oil and Gas Compact Commission. The recommendations should 
ensure that the public interest in receiving the economic benefits of 
tax and royalty revenues is balanced against the need for revised 
policies to--
            (1) maintain adequate natural gas development drilling 
        during periods of low world oil prices;
            (2) ameliorate the boom-bust cycles negatively affecting 
        the oil and gas service industry; and
            (3) ensure a consistent level of domestic activity to 
        encourage the education and retention of a technical workforce.
    (d) The study under subsection (a) shall be completed not later 
than 240 days after the date of enactment of this section. The report 
required in (b) shall be transmitted to Congress not later than 60 days 
following the completion of the study.

SEC. 304. POWER MARKETING ADMINISTRATION RIGHTS-OF-WAY STUDY.

    The Secretary of Energy shall conduct a study of the rights-of-way 
owned by the Federal power marketing agencies and the Tennessee Valley 
Authority to determine their location and whether they can be used by 
pipelines or other transmission services where new capacity is needed. 
Not later than one year after the date of enactment of this section, 
the Secretary shall transmit a report to Congress summarizing the 
results of the study.

SEC. 305. REVIEW OF NATURAL GAS PIPELINE CERTIFICATION PROCEDURES.

    (a) FERC Review.--The Federal Energy Regulatory Commission shall, 
in consultation with other appropriate Federal agencies, conduct a 
comprehensive review of policies, procedures, and regulations for the 
certification of natural gas pipelines to determine how to reduce the 
cost and time of obtaining a certificate. The Commission shall report 
its findings and any recommendations for legislation to the Committee 
on Energy and Natural Resources of the United States Senate and the 
Committee on Energy and Commerce of the United States House of 
Representatives not later than 6 months after the date of enactment of 
this section.
    (b) 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.
    (c) 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) and 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.
    (d) 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.

SEC. 306. STREAMLINING FUEL SPECIFICATIONS.

    (a) Report.--Not later than nine months after the date of enactment 
of this title, the Administrator of the Environmental Protection Agency 
and the Secretary of Energy shall jointly report to the Congress on the 
technical and economic feasibility of developing national or regional 
vehicle fuel specifications for the contiguous United States that 
would--
            (1) enhance flexibility in the distribution of fuels,
            (2) reduce price volatility and costs to consumers and 
        producers, and
            (3) meet local, regional, and national air quality 
        requirements and goals.
    (b) Recommendations.--The report shall include recommendations for 
appropriate changes to existing laws and regulations.
    (c) Consultation.--The Administrator and the Secretary shall 
consult with the Governors of the several States, automobile 
manufacturers, vehicle fuel producers and distributors, and the public 
in the preparation of the report.

SEC. 307. STUDY OF FINANCING FOR NEW TECHNOLOGIES.

    (a) Independent Assessment.--The Secretary of Energy shall 
commission an independent assessment of innovative financing techniques 
to facilitate construction of new electricity supply technologies that 
might not otherwise be built in a competitive electricity market.
    (b) Conduct of the Assessment.--The Secretary shall retain an 
independent contractor with proven expertise in financing large capital 
projects or in financial services consulting to conduct the assessment.
    (c) Content of the Assessment.--The assessment shall include a 
comprehensive examination of all available techniques to safeguard 
private investors against risks (including both market-based and 
govemment-imposed risks) that are beyond the control of the investors. 
Such techniques may include Federal loan guarantees, Federal price 
guarantees, special tax considerations, and direct Federal investment.
    (d) Report.--The Secretary shall submit the results of the 
independent assessment to the Congress not later than 9 months after 
the date of enactment of this section.

SEC. 308. STUDY ON THE USE OF THE STRATEGIC PETROLEUM RESERVE.

    (a) Report.--The Secretary of Energy shall report to the President 
and to the Committee on Energy and Natural Resources of the United 
States Senate and the Committee on Energy and Commerce of the United 
States House of Representatives, not later than 6 months after the date 
of enactment of this title, on whether section 161 of the Energy Policy 
and Conservation Act (42 U.S.C. 6241) should be amended to give the 
Secretary greater flexibility to drawdown and distribute the Reserve to 
mitigate price volatility or regional supply shortages.
    (b) Contents of the Report.--The Secretary shall include in the 
report--
            (1) an assessment of how extreme market conditions in the 
        past (including, in particular, the conditions between July 
        1990 and February 1991) may have been mitigated by more timely 
        use of the Reserve, and
            (2) specific recommendations for any changes in the 
        existing law the Secretary determines to be necessary or 
        desirable and a statement of the reasons for any such changes.

   DIVISION B--DIVERSE AND RELIABLE POWER GENERATION AND TRANSMISSION

           TITLE IV--ELECTRIC ENERGY TRANSMISSION RELIABILITY

SEC. 401. ELECTRIC RELIABILITY ORGANIZATION AND OVERSIGHT.

    (a) In General.--Part II of the Federal Power Act (16 U.S.C. 824-
824m) is amended by adding at the end the following:

``SEC. 216. ELECTRIC RELIABILITY ORGANIZATION AND OVERSIGHT.

    ``(a) Definitions.--As used in this section:
            ``(1) Affiliated regional reliability entity.--The term 
        `affiliated regional reliability entity' means an entity 
        delegated authority under the provisions of subsection (h).
            ``(2) Bulk power system.--The term `bulk power system' 
        means all facilities and control systems necessary for 
        operating an interconnected transmission grid (or any portion 
        thereof, including high-voltage transmission lines; 
        substations; control centers; communications; data, and 
        operations planning facilities; and the output of generating 
        units necessary to maintain transmission system reliability.
            ``(3) Electric reliability organization, or organization.--
        The term `Electric Reliability Organization' or `Organization' 
        means the organization approved by the Commission under 
        subsection (d)(4).
            ``(4) Entity rule.--The term `entity rule' means a rule 
        adopted by an affiliated regional reliability entity for a 
        specific region and designed to implement or enforce one or 
        more Organization Standards. An entity rule shall be approved 
        by the organization and once approved, shall be treated as an 
        Organization Standard.
            ``(5) Industry sector.--The term `industry sector' means a 
        group of users of the bulk power system with substantially 
        similar commercial interests, as determined by the Board of the 
        Electric Reliability Organization.
            ``(6) Interconnection.--The term `interconnection' means a 
        geographic area in which the operation of bulk power system 
        components is synchronized such that the failure of one or more 
        of such components may adversely affect the ability of the 
        operators of other components within the interconnection to 
        maintain safe and reliable operation of the facilities within 
        their control.
            ``(7) Organization standard.--The term `Organization 
        Standard' means a policy or standard duly adopted by the 
        Electric Reliability Organization to provide for the reliable 
        operation of a bulk power system.
            ``(8) Public interest group.--The term `public interest 
        group' means any nonprofit private or public organization that 
        has an interest in the activities of the Electric Reliability 
        Organization, including, but not limited to, ratepayer 
        advocates, environmental groups, and State and local government 
        organizations that regulate market participants and promulgate 
        government policy.
            ``(9) Variance.--The term `variance' means an exception or 
        variance from the requirements of an Organization Standard 
        (including a proposal for an Organization Standard where there 
        is no Organization Standard) that is adopted by an affiliated 
        regional reliability entity and applicable to all or a part of 
        the region for which the affiliated regional reliability entity 
        is responsible. A variance shall be approved by the 
        organization and once approved, shall be treated as an 
        Organization Standard.
            ``(10) System operator.--The term `system operator' means 
        any entity that operates or is responsible for the operation of 
        a bulk power system, including but not limited to a control 
        area operator, an independent system operator, a regional 
        transmission organization, a transmission company, a 
        transmission system operator, or a regional security 
        coordinator.
            ``(11) User of the bulk power system.--The term `user of 
        the bulk power system' means any entity that sells, purchases, 
        or transmits electric power over a bulk power system, or that 
        owns, operates, or maintains facilities or control systems that 
        are part of a bulk power system, or that is a system operator.
    ``(b) Commission Authority.--
            ``(1) Within the United States, the Commission shall have 
        jurisdiction over the Electric Reliability Organization, all 
        affiliated regional reliability entities, all system operators, 
        and all users of the bulk-power system, for purposes of 
        approving and enforcing compliance with the requirements of 
        this section.
            ``(2) The Commission may, by rule, define any other term 
        used in this section, provided such definition is consistent 
        with the definitions in, and the purpose and intent of, this 
        Act.
            ``(3) Not later than 90 days after the date of enactment of 
        this section, the Commission shall issue a proposed rule for 
        implementing the requirements of this section. The Commission 
        shall provide notice and opportunity for comment on the 
proposed rule. The Commission shall issue a final rule under this 
subsection within 180 days after the date of enactment of this section.
            ``(4) Nothing in this section shall be construed as 
        limiting or impairing any authority of the Commission under any 
        other provision of this Act, including its exclusive authority 
        to determine rates, terms, and conditions of transmission 
        services subject to its jurisdiction.
    ``(c) Existing Reliability Standards.--Following enactment of this 
section, and prior to the approval of an organization under subsection 
(d), any entity, including the North American Electric Reliability 
Council and its member regional reliability councils, may file any 
reliability standard, guidance, or practice that such entity would 
propose to be made mandatory and enforceable. The Commission, after 
allowing an opportunity to submit comments, may approve any such 
proposed mandatory standard, guidance, or practice, or any amendment 
thereto, if it finds that the standard, guidance, or practice, or 
amendment is just, reasonable, not unduly discriminatory or 
preferential, and in the public interest. The Commission may, without 
further proceeding or finding, grant its approval to any standard, 
guidance, or practice for which no substantive objections are filed in 
the comment period. Filed standards, guidances, or practices, including 
any amendments thereto, shall be mandatory and applicable according to 
their terms following approval by the Commission and shall remain in 
effect until--
            ``(1) withdrawn, disapproved, or superseded by an 
        Organization Standard, issued or approved by the Electric 
        Reliability Organization and made effective by the Commission 
        under subsection (e); or
            ``(2) disapproved by the Commission if, upon complaint or 
        upon its own motion and after notice and an opportunity for 
        comment, the Commission finds the standard, guidance, or 
        practice unjust, unreasonable, unduly discriminatory, or 
        preferential or not in the public interest. Standards, 
        guidances, or practices in effect pursuant to the provisions of 
        this subsection shall be enforceable by the Commission.
    ``(d) Organization Approval.--
            ``(1) Following the issuance of a final Commission rule 
        under subsection (b)(3), an entity may submit an application to 
        the Commission for approval as the Electric Reliability 
        Organization. The applicant shall specify in its application 
        its governance and procedures, as well as its funding mechanism 
        and initial funding requirements.
            ``(2) The Commission shall provide public notice of the 
        application and afford interested parties an opportunity to 
        comment.
            ``(3) The Commission shall approve the application if the 
        Commission determines that the applicant--
                    ``(A) has the ability to develop, implement, and 
                enforce standards that provide for an adequate level of 
                reliability of the bulk power system;
                    ``(B) permits voluntary membership to any user of 
                the bulk power system or public interest group;
                    ``(C) assures fair representation of its members in 
                the selection of its directors and fair management of 
                its affairs, taking into account the need for 
                efficiency and effectiveness in decisionmaking and 
                operations and the requirements for technical 
                competency in the development of Organization Standards 
                and the exercise of oversight of bulk power system 
                reliability;
                    ``(D) assures that no two industry sectors have the 
                ability to control, and no one industry sector has the 
                ability to veto, the Electric Reliability 
                Organization's discharge of its responsibilities 
                (including actions by committees recommending standards 
                to the board or other board actions to implement and 
                enforce standards);
                    ``(E) provides for governance by a board wholly 
                comprised of independent directors;
                    ``(F) provides a funding mechanism and requirements 
                that are just, reasonable, and not unduly 
                discriminatory or preferential and are in the public 
                interest, and which satisfy the requirements of 
                subsection (l);
                    ``(G) establishes procedures for development of 
                Organization Standards that provide reasonable notice 
                and opportunity for public comment, taking into account 
                the need for efficiency and effectiveness in 
                decisionmaking and operations and the requirements for 
                technical competency in the development of Organization 
                Standards, and which standards development process has 
                the following attributes--
                            ``(i) openness;
                            ``(ii) balance of interests; and
                            ``(iii) due process, except that the 
                        procedures may include alternative procedures 
                        for emergencies;
                    ``(H) establishes fair and impartial procedures for 
                implementation and enforcement of Organization 
                Standards, either directly or through delegation to an 
                affiliated regional reliability entity, including the 
                imposition of penalties, limitations on activities, 
                functions, or operations, or other appropriate 
                sanctions;
                    ``(I) establishes procedures for notice and 
                opportunity for public observation of all meetings, 
                except that the procedures for public observation may 
                include alternative procedures for emergencies or for 
                the discussion of information the directors determine 
                should take place in closed session, such as 
                litigation, personnel actions, or commercially 
                sensitive information;
                    ``(J) provides for the consideration of 
                recommendations of States and State commissions; and
                    ``(K) addresses other matters that the Commission 
                may deem necessary or appropriate to ensure that the 
                procedures, governance, and funding of the Electric 
                Reliability Organization are just, reasonable, not 
                unduly discriminatory or preferential, and are in the 
                public interest.
            ``(4) The Commission shall approve only one Electric 
        Reliability Organization. If the Commission receives two or 
        more timely applications that satisfy the requirements of this 
        subsection, the Commission shall approve only the application 
        it concludes will best implement the provisions of this 
        section.
    ``(e) Establishment of and Modifications to Organization 
Standards.--
            ``(1) The Electric Reliability Organization shall file with 
        the Commission any new or modified organization standards, 
        including any variances or entity rules, and the Commission 
        shall follow the procedures under paragraph (2) for review of 
        that filing.
            ``(2) Submissions under paragraph (1) shall include--
                    ``(A) a concise statement of the purpose of the 
                proposal, and
                    ``(B) a record of any proceedings conducted with 
                respect to such proposal.
        The Commission shall provide notice of the filing of such 
        proposal and afford interested entities 30 days to submit 
        comments. The Commission, after taking into consideration any 
        submitted comments, shall approve or disapprove such proposal 
        not later than 60 days after the deadline for the submission of 
        comments, except that the Commission may extend the 60-day 
        period for an additional 90 days for good cause, and except 
        further that if the Commission does not act to approve or 
        disapprove a proposal within the foregoing periods, the 
        proposal shall go into effect subject to its terms, without 
        prejudice to the authority of the Commission thereafter to 
        modify the proposal in accordance with the standards and 
        requirements of this section. Proposals approved by the 
        Commission shall take effect according to their terms but not 
        earlier than 30 days after the effective date of the 
        Commission's order, except as provided in paragraph (3) of this 
        subsection.
            ``(3)(A) In the exercise of its review responsibilities 
        under this subsection, the Commission shall give due weight to 
        the technical expertise of the Electric Reliability 
        Organization with respect to the content of a new or modified 
        organization standard, but shall not defer to the organization 
        with respect to the effect of the standard on competition. The 
        Commission shall approve a proposed new or modified 
        organization standard if it determines the proposal to be just, 
        reasonable, not unduly discriminatory or preferential, and in 
        the public interest.
            ``(B) An existing or proposed organization standard which 
        is disapproved in whole or in part by the Commission shall be 
        remanded to the Electric Reliability Organization for further 
        consideration.
            ``(C) The Commission, on its own motion or upon complaint, 
        may direct the Electric Reliability Organization to develop an 
        organization standard, including modification to an existing 
        organization standard, addressing a specific matter by a date 
        certain if the Commission considers such new or modified 
        organization standard necessary or appropriate to further the 
purposes of this section. The Electric Reliability Organization shall 
file any such new or modified organization standard in accordance with 
this subsection.
            ``(D) An affiliated regional reliability entity may propose 
        a variance or entity rule to the Electric Reliability 
        Organization. The affiliated regional reliability entity may 
        request that the Electric Reliability Organization expedite 
        consideration of the proposal, and may file a notice of such 
        request with the Commission, if expedited consideration is 
        necessary to provide for bulk-power system reliability. If the 
        Electric Reliability Organization fails to adopt the variance 
        or entity rule, either in whole or in part, the affiliated 
        regional reliability entity may request that the Commission 
        review such action. If the Commission determines, after its 
        review of such a request, that the action of the Electric 
        Reliability Organization did not conform to the applicable 
        standards and procedures approved by the Commission, or if the 
        Commission determines that the variance or entity rule is just, 
        reasonable, not unduly discriminatory or preferential, and in 
        the public interest, and that the Electric Reliability 
        Organization has unreasonably rejected the proposed variance or 
        entity rule, then the Commission may remand the proposed 
        variance or entity rule for further consideration by the 
        Electric Reliability Organization or may direct the Electric 
        Reliability Organization or the affiliated regional reliability 
        entity to develop a variance or entity rule consistent with 
        that requested by the affiliated regional reliability entity. 
        Any such variance or entity rule proposed by an affiliated 
        regional reliability entity shall be submitted to the Electric 
        Reliability Organization for review and filing with the 
        Commission in accordance with the procedures specified in this 
        subsection.
            ``(E) Notwithstanding any other provision of this 
        subsection, a proposed organization standard or amendment shall 
        take effect according to its terms if the Electric Reliability 
        Organization determines that an emergency exists requiring that 
        such proposed organization standard or amendment take effect 
        without notice or comment. The Electric Reliability 
        Organization shall notify the Commission immediately following 
        such determination and shall file such emergency organization 
        standard or amendment with the Commission not later than 5 days 
        following such determination and shall include in such filing 
        an explanation of the need for such emergency standard. 
        Subsequently, the Commission shall provide notice of the 
        organization standard or amendment for comment, and shall 
        follow the procedures set out in paragraphs (2) and (3) for 
        review of the new or modified organization standard. Any such 
        organization standard that has gone into effect shall remain in 
        effect unless and until suspended or disapproved by the 
        Commission. If the Commission determines at any time that the 
        emergency organization standard or amendment is not necessary, 
        the Commission may suspend such emergency organization standard 
        or amendment.
            ``(4) All users of the bulk power system shall comply with 
        any organization standard that takes effect under this section.
    ``(f) Coordination With Canada and Mexico.--The Electric 
Reliability Organization shall take all appropriate steps to gain 
recognition in Canada and Mexico. The United States shall use its best 
efforts to enter into international agreements with the appropriate 
governments of Canada and Mexico to provide for effective compliance 
with organization standards and to provide for the effectiveness of the 
Electric Reliability Organization in carrying out its mission and 
responsibilities. All actions taken by the Electric Reliability 
Organization, any affiliated regional entity, and the Commission shall 
be consistent with the provisions of such international agreements.
    ``(g) Changes in Procedures, Governance, or Funding.--
            ``(1) The Electric Reliability Organization shall file with 
        the Commission any proposed change in its procedures, 
        governance, or funding, or any changes in the affiliated 
        regional reliability entity's procedures, governance, or 
        funding relating to delegated functions, and shall include with 
        the filing an explanation of the basis and purpose for the 
        change.
            ``(2) A proposed procedural change may take effect 90 days 
        after filing with the Commission if the change constitutes a 
        statement of policy, practice, or interpretation with respect 
        to the meaning or enforcement of an existing procedure. 
        Otherwise, a proposed procedural change shall take effect only 
        upon a finding by the Commission, after notice and opportunity 
        for comments, that the change is just, reasonable, not unduly 
        discriminatory or preferential, is in the public interest, and 
        satisfies the requirements of subsection (d)(4).
            ``(3) A change in governance or funding shall not take 
        effect unless the Commission finds that the change is just, 
        reasonable, not unduly discriminatory or preferential, in the 
        public interest, and satisfies the requirements of subsection 
        (d)(4).
            ``(4) The Commission, upon complaint or upon its own 
        motion, may require the Electric Reliability Organization to 
        amend the procedures, governance, or funding if the Commission 
        determines that the amendment is necessary to meet the 
        requirements of this section. The Electric Reliability 
        Organization shall file the amendment in accordance with 
        paragraph (1) of this subsection.
    ``(h) Delegations of Authority.--
            ``(1) The Electric Reliability Organization shall, upon 
        request by an entity, enter into an agreement with such entity 
        for the delegation of authority to implement and enforce 
        compliance with organization standards in a specified 
        geographic area if the organization finds that the entity 
        requesting the delegation satisfies the requirements of 
        subparagraphs (A), (B), (C), (D), (F), (J), and (K) of 
        subsection (d)(4), and if the delegation promotes the effective 
        and efficient implementation and administration of bulk power 
        system reliability. The Electric Reliability Organization may 
        enter into an agreement to delegate to the entity any other 
        authority, except that the Electric Reliability Organization 
        shall reserve the right to set and approve standards for bulk 
        power system reliability.
            ``(2) The Electric Reliability Organization shall file with 
        the Commission any agreement entered into under this subsection 
        and any information the Commission requires with respect to the 
        affiliated regional reliability entity to which authority is to 
        be delegated. The Commission shall approve the agreement, 
        following public notice and an opportunity for comment, if it 
        finds that the agreement meets the requirements of paragraph 
        (1), and is just, reasonable, not unduly discriminatory or 
        preferential, and is in the public interest. A proposed 
        delegation agreement with an affiliated regional reliability 
        entity organized on an interconnection-wide basis shall be 
        rebuttably presumed by the Commission to promote the effective 
        and efficient implementation and administration of bulk power 
        system reliability. No delegation by the Electric Reliability 
        Organization shall be valid unless approved by the Commission.
            ``(3)(A) A delegation agreement entered into under this 
        subsection shall specify the procedures for an affiliated 
        regional reliability entity to propose entity rules or 
        variances for review by the Electric Reliability Organization. 
        With respect to any such proposal that would apply on an 
        interconnection-wide basis, the Electric Reliability 
        Organization shall presume such proposal valid if made by an 
        interconnection-wide affiliated regional reliability entity 
        unless the Electric Reliability Organization makes a written 
        finding that the proposal--
                    ``(i) was not developed in a fair and open process 
                that provided an opportunity for all interested parties 
                to participate;
                    ``(ii) has a significant adverse impact on 
                reliability or commerce in other interconnections;
                    ``(iii) fails to provide a level of reliability of 
                the bulk-power system within the interconnection such 
                that it would constitute a serious and substantial 
                threat to public health, safety, welfare, or national 
                security; or
                    ``(iv) creates a serious and substantial burden on 
                competitive markets within the interconnection that is 
                not necessary for reliability.
            ``(B) With respect to any such proposal that would apply 
        only to part of an interconnection, the Electric Reliability 
        Organization shall find such proposal valid if the affiliated 
        regional reliability entity or entities making the proposal 
        demonstrate that it--
                    ``(i) was developed in a fair and open process that 
                provided an opportunity for all interested parties to 
                participate;
                    ``(ii) would not have an adverse impact on commerce 
                that is not necessary for reliability;
                    ``(iii) provides a level of bulk power system 
                reliability adequate to protect public health, safety, 
                welfare, and national security, and would not have a 
                significant adverse impact on reliability; and
                    ``(iv) in the case of a variance, is based on 
                legitimate differences between regions or between 
                subregions within the affiliated regional reliability 
                entity's geographic area.
        The Electric Reliability Organization shall approve or 
        disapprove such proposal within 120 days, or the proposal shall 
        be deemed approved. Following approval of any such proposal 
        under this paragraph, the Electric Reliability Organization 
        shall seek Commission approval pursuant to the procedures 
        prescribed under subsection (e)(3). Affiliated regional 
        reliability entities may not make requests for approval 
        directly to the Commission except pursuant to subsection 
        (e)(3)(D).
            ``(4) If an affiliated regional reliability entity 
        requests, consistent with paragraph (1) of this subsection, 
        that the Electric Reliability Organization delegate authority 
        to it, but is unable within 180 days to reach agreement with 
        the Electric Reliability Organization with respect to such 
        requested delegation, such entity may seek relief from the 
        Commission. If, following notice and opportunity for comment, 
        the Commission determines that a delegation to the entity would 
        meet the requirements of paragraph (1) above, and that the 
        delegation would be just, reasonable, not unduly discriminatory 
        or preferential, and in the public interest, and that the 
        Electric Reliability Organization has unreasonably withheld 
        such delegation, the Commission may, by order, direct the 
        Electric Reliability Organization to make such delegation.
            ``(5)(A) The Commission may, upon its own motion or upon 
        complaint, and with notice to the appropriate affiliated 
        regional reliability entity or entities, direct the Electric 
        Reliability Organization to propose a modification to an 
        agreement entered into under this subsection if the Commission 
        determines that--
                    ``(i) the affiliated regional reliability entity no 
                longer has the capacity to carry out effectively or 
                efficiently its implementation or enforcement 
                responsibilities under that agreement, has failed to 
                meet its obligations under that agreement, or has 
                violated any provision of this section;
                    ``(ii) the rules, practices, or procedures of the 
                affiliated regional reliability entity no longer 
                provide for fair and impartial discharge of its 
                implementation or enforcement responsibilities under 
                the agreement;
                    ``(iii) the geographic boundary of a transmission 
                entity approved by the Commission is not wholly within 
                the boundary of an affiliated regional reliability 
                entity and such difference is inconsistent with the 
                effective and efficient implementation and 
                administration of bulk power system reliability; or
                    ``(iv) the agreement is inconsistent with another 
                delegation agreement as a result of actions taken under 
                paragraph (4) of this subsection.
            ``(B) Following an order of the Commission issued under 
        subparagraph (A), the Commission may suspend the affected 
        agreement if the Electric Reliability Organization or the 
        affiliated regional reliability entity does not propose an 
        appropriate and timely modification. If the agreement is 
        suspended, the Electric Reliability Organization shall assume 
        the previously delegated responsibilities. The Commission shall 
        allow the Electric Reliability Organization and the affiliated 
        regional reliability entity an opportunity to appeal the 
        suspension.
    ``(i) Organization Membership.--Every system operator shall be 
required to be a member of the Electric Reliability Organization and 
shall be required also to be a member of any affiliated regional 
reliability entity operating under an agreement effective pursuant to 
subsection (h) applicable to the region in which the system operates or 
is responsible for the operation of bulk power system facilities.
    ``(j) Injunctions and Disciplinary Actions.--
            ``(1) Consistent with the range of actions approved by the 
        Commission under subsection (d)(4)(H), the Electric Reliability 
        Organization may impose a penalty, limitation of activities, 
        functions, operations, or other disciplinary action the 
        Electric Reliability Organization finds appropriate against a 
        user of the bulk power system if the Electric Reliability 
        Organization, after notice and an opportunity for interested 
        parties to be heard, issues a finding in writing that the user 
        of the bulk-power system has violated an organization standard. 
        The Electric Reliability Organization shall immediately notify 
        the Commission of any disciplinary action imposed with respect 
        to an act or failure to act of a user of the bulk-power system 
        that affected or threatened to affect bulk power system 
        facilities located in the United States, and the sanctioned 
        party shall have the right to seek modification or rescission 
        of such disciplinary action by the Commission. If the 
        organization finds it necessary to prevent a serious threat to 
        reliability, the organization may seek injunctive relief in a 
        Federal court in the district in which the affected facilities 
        are located.
            ``(2) A disciplinary action taken under paragraph (1) may 
        take effect not earlier than the 30th day after the Electric 
        Reliability Organization files with the Commission its written 
        finding and record of proceedings before the Electric 
        Reliability Organization and the Commission posts its written 
        finding, unless the Commission, on its own motion or upon 
        application by the user of the bulk power system which is the 
        subject of the action, suspends the action. The action shall 
        remain in effect or remain suspended unless and until the 
        Commission, after notice and opportunity for hearing, affirms, 
        sets aside, modifies, or reinstates the action, but the 
        Commission shall conduct such hearing under procedures 
        established to ensure expedited consideration of the action 
        taken.
            ``(3) The Commission, on its own motion or on complaint, 
        may order compliance with an organization standard and may 
        impose a penalty, limitation of activities, functions, or 
        operations, or take such other disciplinary action as the 
        Commission finds appropriate, against a user of the bulk power 
        system with respect to actions affecting or threatening to 
        affect bulk power system facilities located in the United 
        States if the Commission finds, after notice and opportunity 
        for a hearing, that the user of the bulk power system has 
        violated or threatens to violate an organization standard.
            ``(4) The Commission may take such action as is necessary 
        against the Electric Reliability Organization or an affiliated 
        regional reliability entity to assure compliance with an 
        organization standard, or any Commission order affecting the 
        Electric Reliability Organization or an affiliated regional 
        reliability entity.
    ``(k) Reliability Reports.--The Electric Reliability Organization 
shall conduct periodic assessments of the reliability and adequacy of 
the interconnected bulk power system in North America and shall report 
annually to the Secretary of Energy and the Commission its findings and 
recommendations for monitoring or improving system reliability and 
adequacy.
    ``(l) Assessment and Recovery of Certain Costs.--The reasonable 
costs of the Electric Reliability Organization, and the reasonable 
costs of each affiliated regional reliability entity that are related 
to implementation and enforcement of organization standards or other 
requirements contained in a delegation agreement approved under 
subsection (h), shall be assessed by the Electric Reliability 
Organization and each affiliated regional reliability entity, 
respectively, taking into account the relationship of costs to each 
region and based on an allocation that reflects an equitable sharing of 
the costs among all end users. The Commission shall provide by rule for 
the review of such costs and allocations, pursuant to the standards in 
this subsection and subsection (d)(4)(F).
    ``(m) Savings Provisions.--
            ``(1) The Electric Reliability Organization shall have 
        authority to develop, implement and enforce compliance with 
        standards for the reliable operation of only the bulk power 
        system.
            ``(2) This section does not provide the Electric 
        Reliability Organization or the Commission with the authority 
        to set and enforce compliance with standards for adequacy or 
        safety of electric facilities or services.
            ``(3) Nothing in this section shall be construed to preempt 
        any authority of any State to take action to ensure the safety, 
        adequacy, and reliability of electric service within that 
        State, as long as such action is not inconsistent with any 
        Organization Standard.
            ``(4) Within 90 days of the application of the Electric 
        Reliability Organization or other affected party, the 
        Commission shall issue a final order determining whether a 
        State action is inconsistent with an Organization Standard, 
        after notice and opportunity for comment, taking into 
        consideration any recommendations of the Electric Reliability 
        Organization.
            ``(5) The Commission, after consultation with the Electric 
        Reliability Organization, may stay the effectiveness of any 
        State action, pending the Commission's issuance of a final 
        order.
    ``(n) Regional Advisory Bodies.--The Commission shall establish a 
regional advisory body on the petition of at least two-thirds of the 
States within a region that have more than one-half of their electric 
load served within the region. A regional advisory body shall be 
composed of one member from each participating State in the region, 
appointed by the Governor of each State, and may include 
representatives of agencies, States, and provinces outside the United 
States, upon execution of an international agreement or agreements 
described in subsection (f). A regional advisory body may provide 
advice to the electric reliability organization, an affiliated regional 
reliability entity, or the Commission regarding the governance of an 
existing or proposed affiliated regional reliability entity within the 
same region, whether an organization standard, entity rule, or variance 
proposed to apply within the region is just, reasonable, not unduly 
discriminatory or preferential, and in the public interest, and whether 
fees proposed to be assessed within the region are just, reasonable, 
not unduly discriminatory or preferential, in the public interest, and 
consistent with the requirements of subsection (1). The Commission may 
give deference to the advice of any such regional advisory body if that 
body is organized on an interconnection-wide basis.
    ``(o) Coordination With Regional Transmission Organizations.--
            ``(1) Each regional transmission organization authorized by 
        the Commission shall be responsible for maintaining the short-
        term reliability of the bulk power system that it operates, 
        consistent with organization standards.
            ``(2) Except as provided in paragraph (5), in connection 
        with a proceeding under subsection (e) to consider a proposed 
        organization standard, each regional transmission organization 
        authorized by the Commission shall report to the Commission, 
        and notify the electric reliability organization and any 
        applicable affiliated regional reliability entity, regarding 
        whether the proposed organization standard hinders or conflicts 
        with that regional transmission organization's ability to 
        fulfill the requirements of any rule, regulation, order, 
        tariff, rate schedule, or agreement accepted, approved or 
        ordered by the Commission. Where such hindrance or conflict is 
        identified, the Commission shall address such hindrance or 
        conflict, and the need for any changes to such rule, order, 
        tariff, rate schedule, or agreement accepted, approved or 
        ordered by the Commission in its order under subsection (e) 
        regarding the proposed standard. Where such hindrance or 
        conflict is identified between a proposed organization standard 
        and a provision of any rule, order, tariff, rate schedule or 
        agreement accepted, approved or ordered by the Commission 
        applicable to a regional transmission organization, nothing in 
        this section shall require a change in the regional 
        transmission organization's obligation to comply with such 
        provision unless the Commission orders such a change and the 
        change becomes effective. If the Commission finds that the 
        tariff, rate schedule, or agreement needs to be changed, the 
        regional transmission organization must expeditiously make a 
        section 205 filing to reflect the change. If the Commission 
        finds that the proposed organization standard needs to be 
        changed, it shall remand the proposed organization standard to 
        the electric reliability organization under subsection 
        (e)(3)(B).
            ``(3) Except as provided in paragraph (5), to the extent 
        hindrances and conflicts arise after approval of a reliability 
        standard under subsection (c) or organization standard under 
        subsection (e), each regional transmission organization 
        authorized by the Commission shall report to the Commission, 
        and notify the electric reliability organization and any 
        applicable affiliated regional reliability entity, regarding 
        any reliability standard approved under subsection (c) or 
        organization standard that hinders or conflicts with that 
        regional transmission organization's ability to fulfill the 
        requirements of any rule, regulation, order, tariff, rate 
        schedule, or agreement accepted, approved or ordered by the 
        Commission. The Commission shall seek to assure that such 
        hindrances or conflicts are resolved promptly. Where a 
        hindrance or conflict is identified between a reliability 
        standard or an organization standard and a provision of any 
        rule, order, tariff, rate schedule or agreement accepted, 
        approved or ordered by the Commission applicable to a regional 
        reliability organization, nothing in this section shall require 
        a change in the regional transmission organization's obligation 
        to comply with such provision unless the Commission orders such 
        a change and the change becomes effective. If the Commission 
        finds that the tariff, rate schedule or agreement needs to be 
        changed, the regional transmission organization must 
        expeditiously make a section 205 filing to reflect the change. 
        If the Commission finds that an organization standard needs to 
        be changed, it shall order the electric reliability 
        organization to develop and submit a modified organization 
        standard under subsection (e)(3)(C).
            ``(4) An affiliated regional reliability entity and a 
        regional transmission organization operating in the same 
        geographic area shall cooperate to avoid conflicts between 
        implementation and enforcement of organization standards by the 
        affiliated regional reliability entity and implementation and 
        enforcement by the regional transmission organization of 
        tariffs, rate schedules, and agreements accepted, approved or 
        ordered by the Commission. In areas without an affiliated 
        regional reliability entity, the electric reliability 
        organization shall act as the affiliated regional reliability 
        entity for purposes of this paragraph.
            ``(5) Until 6 months after approval of applicable 
        subsection (h)(3) procedures, any reliability standard, 
        guidance, or practice contained in Commission-accepted tariffs, 
        rate schedules, or agreements in effect of any Commission-
        authorized independent system operator or regional transmission 
        organization shall continue to apply unless the Commission 
        accepts an amendment thereto by the applicable operator or 
        organization, or upon complaint finds them to be unjust, 
        unreasonable, unduly discriminatory or preferential, or not in 
        the public interest. At the conclusion of such transition 
        period, any such reliability standard, guidance, practice, or 
        amendment thereto that the Commission determines is 
        inconsistent with organization standards shall no longer 
        apply.''.
    (b) Enforcement.--Sections 316 and 316A of the Federal Power Act 
are each amended by striking ``or 214'' each place it appears and 
inserting ``214, or 216''.

SEC. 402. APPLICATION OF ANTITRUST LAWS.

    Notwithstanding any other provision of law, each of the following 
activities are rebuttably presumed to be in compliance with the 
antitrust laws of the United States:
            (1) Activities undertaken by the Electric Reliability 
        Organization under section 216 of the Federal Power Act or 
        affiliated regional reliability entity operating under an 
        agreement in effect under section 216(h) of such Act.
            (2) Activities of a member of the Electric Reliability 
        Organization or affiliated regional reliability entity in 
        pursuit of organization objectives under section 216 of the 
        Federal Power Act undertaken in good faith under the rules of 
        the organization.
Primary jurisdiction, and immunities and other affirmative defenses, 
shall be available to the extent otherwise applicable.

                           TITLE V--IMPROVED

                          ELECTRICITY CAPACITY

                               AND ACCESS

SEC. 501. UNIVERSAL AND AFFORDABLE SERVICE.

    It is the sense of the Congress that--
            (1) every retail electric consumer should have access to 
        electric energy at reasonable and affordable rates; and
            (2) the States should ensure that retail electric 
        competition does not result in the loss of service to rural, 
        residential, or low-income consumers.

SEC. 502. PUBLIC BENEFITS FUND.

    (a) Definitions.--For purposes of this section--
            (1) the term ``eligible public purpose program'' means a 
        State or tribal program that--
                    (A) assists low-income households in meeting their 
                home energy needs;
                    (B) provides for the planning, construction, or 
                improvement of facilities to generate, transmit, or 
                distribute electricity to Indian tribes or rural and 
                remote communities;
                    (C) provides for the development and implementation 
                of measures to reduce the demand for electricity;
                    (D) provides for the development and implementation 
                of a qualifying greenhouse gas mitigation project; or
                    (E) provides for--
                            (i) new or additional capacity, or improves 
                        the efficiency of existing capacity, from a 
                        wind, biomass, geothermal, solar thermal, 
                        photovoltaic, combined heat and power energy 
                        source, or
                            (ii) additional generating capacity 
                        achieved from increased efficiency at existing 
                        hydroelectric dams or additions of new capacity 
                        at existing hydroelectric dams;
            (2) the term ``fiscal agent'' means the entity designated 
        under subsection (c);
            (3) the term ``Fund'' means the Public Benefits Fund 
        established under subsection (b);
            (4) the term ``qualifying greenhouse gas mitigation 
        project'' means a project to reduce the emissions of greenhouse 
        gases that is at least fifty percent cofunded by a power 
        generator;
            (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 ``Secretary'' means the Secretary of Energy; 
        and
            (7) the term ``State'' means each of the States and the 
        District of Columbia.
    (b) Public Benefits Fund.--There is established in the Treasury of 
the United States a separate fund, to be known as the Public Benefits 
Fund. The Fund shall consist of amounts collected by the fiscal agent 
under subsection (e). The fiscal agent may disburse amounts in the 
Fund, without further appropriation, in accordance with this section.
    (c) Duties of the Fiscal Agent.--The Secretary shall appoint a 
fiscal agent who shall collect and disburse the amounts in the Fund in 
accordance with this section.
    (d) Duties of the Secretary.--The Secretary shall prescribe--
            (1) rules for the equitable allocation of the Fund among 
        States and Indian tribes based upon--
                    (A) the number of low-income households in such 
                State or tribal jurisdiction; and
                    (B) the average annual cost of electricity used by 
                households in such State or tribal jurisdiction;
            (2) the criteria by which the fiscal agent determines 
        whether a State or tribal government's program is an eligible 
        public purpose program; and
            (3) rules governing the award of funds for qualifying 
        greenhouse gas mitigation projects that the Secretary 
        determines are necessary to ensure such projects are cost-
        effective.
    (e) Public Benefits Charge.--
            (1) Amount of charge.--As a condition of existing or future 
        interconnection with facilities of any transmitting utility, 
        each owner of an electric generating facility whose nameplate 
        capacity exceeds five megawatts shall pay the transmitting 
        utility a public benefits charge equal to one mill per 
        kilowatt-hour on electric energy generated by such electric 
        generating facility.
            (2) Affiliates.--Each owner of an electric generating 
        facility subject to the charge under paragraph (1) shall pay 
        the charge even if the generation facility and the transmitting 
        facility are under common ownership or are otherwise 
        affiliated.
            (3) Imported electricity.--Each importer of electric energy 
        from Canada or Mexico, as a condition of existing or future 
        interconnection with facilities of any transmitting utility in 
        the United States, shall pay this same charge for imported 
        electric energy.
            (4) Payment of the charge.--The transmitting utility shall 
        pay the amounts collected to the fiscal agent at the close of 
        each month, and the fiscal agent shall deposit the amounts into 
        the Fund as offsetting collections.
    (f) Disbursal From the Fund.--
            (1) Block grants.--The fiscal agent shall disburse amounts 
        in the Fund to participating States and tribal governments as a 
        block grant to carry out eligible public purpose programs in 
        accordance with this subsection and rules prescribed under 
        subsection (d).
            (2) Annual payments.--The fiscal agent shall disburse 
        amounts for a calendar year from the Fund to a State or tribal 
        government in twelve equal monthly payments beginning two 
        months after the beginning of the calendar year.
            (3) Eligible recipients.--The fiscal agent shall make 
        distributions to the State or tribal government or to an entity 
        designated by the State or tribal government to receive 
        payments.
            (4) Limitation on use of funds.--A State or tribal 
        government may use amounts received only for the eligible 
        public purpose programs the State or tribal government 
        designated in its submission to the fiscal agent and the fiscal 
        agent determined eligible.
    (g) Report.--One year before the date of expiration of this 
section, the Secretary shall report to Congress whether a public 
benefits fund should continue to exist.
    (h) Sunset.--This section expires at midnight on December 31, 2015.

SEC. 503. 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.
    ``(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.--There is authorized to be appropriated for 
purposes of subsection (c) $20,000,000 for each of the seven fiscal 
years following the date of enactment of this section.''.

SEC. 504. COMPREHENSIVE INDIAN ENERGY PROGRAM.

    (a) Establishment of 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) `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) `Indian land' means--
                    ``(A) any land within the limits of an Indian 
                reservation, pueblo, or ranchera;
                    ``(B) any land not within the limits of an Indian 
                reservation, pueblo, or ranchera 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 to 
meet 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 efficiency, and conservation 
        programs;
            ``(B) studies and other activities supporting tribal 
        acquisition of energy supplies, services, and facilities; and
            ``(C) planning, constructing, developing, operating, 
        maintaining, and improving tribal electrical generation, 
        transmission, and distribution facilities.
    ``(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) total number of acres of Indian land owned by an 
        Indian tribe;
            ``(B) total number of households on the tribe's Indian 
        land;
            ``(C) total number of households on the Indian tribe's 
        Indian land that have no electricity service or are 
        underserved; and
            ``(D) financial or other assets available to the tribe from 
        any source.
    ``(4) In making a grant under paragraph (2)(E), 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.
    ``(c) Application of Buy Indian Act.--(1) An agency or department 
of the United States Government may give, in the purchase and sale of 
electricity, oil, gas, coal, or other energy product or by-product 
produced, converted, or transferred on Indian lands, preference, under 
section 23 of the Act of June 25, 1910 (25 U.S.C. 47) (commonly known 
as the ``Buy Indian Act''), to an energy and resource production 
enterprise, partnership, corporation, or other type of business 
organization majority or wholly owned and controlled by an Indian, a 
tribal government, or a business, enterprise, or operation of the 
American Indian Tribal Governments.
    ``(2) In implementing this subsection, an agency or department 
shall pay no more for energy production than the prevailing market 
price and shall obtain no less than existing market terms and 
conditions.
    ``(d) 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.''.
    (b) Office of Indian 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 Progams. 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. The Director shall perform 
the duties assigned the Director under the Comprehensive Indian Energy 
Act and this section.
    ``(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 under title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 
3501 et seq.).''.
    (c) Conforming Amendments.--
            (1) Section 2603(c) of the Energy Policy Act of 1992 (25 
        U.S.C. 3503(c)) is amended to read as follows:
    ``(c) There are authorized to be appropriated such sums as may be 
necessary to carry out the purposes of this section.''
            (2) 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:

``217. Office of Indian Energy Policy and Programs.''.
            (3) Section 5315 of title 5, United States Code, is amended 
        by inserting ``Director, Office of Indian Energy Policy and 
        Programs, Department of Energy.'' after ``Director, Office of 
        Science, Department of Energy.''.

SEC. 505. ENVIRONMENTAL DISCLOSURE TO CONSUMERS.

    (a) Retail Sales.--The Federal Trade Commission shall issue rules 
requiring each retail electric supplier to include with each monthly 
billing to retail electric consumers a statement of the known energy 
sources used to generate the electricity the supplier distributes, on 
an annual basis, stated in numbers of kilowatt-hours, both in 
percentages and in the form of a pie chart, of biomass power, coal-
fired power, hydropower, natural gas-fired power, nuclear power, oil-
fired power, wind power, geothermal power, solar thermal power, 
photovoltaic power, combined heat and power, and other sources of 
power, respectively.
    (b) Wholesale Sales.--The Federal Trade Commission shall issue 
rules requiring any electric supplier that sells or makes an offer to 
sell electric energy at wholesale to provide the purchaser or offeree 
such known information about the energy source used to generate the 
electricity, on an annual basis, as the Commission may determine.
    (c) Certification Program.--The Secretary of Energy, in 
consultation with the Federal Trade Commission, shall develop a 
certification program for each retail electric supplier that sells 
electric energy, at least 50 percent of which, averaged over a year, is 
generated from renewable energy sources. For purposes of this 
subsection, the term ``renewable energy source'' means biomass, wind 
power, geothermal power, solar thermal power, or photovoltaic power.

SEC. 506. CONSUMER PROTECTIONS.

    (a) Information Disclosure.--The Federal Trade Commission shall 
issue rules requiring any retail electric supplier that sells or makes 
an offer to sell electric energy, or solicits retail electric consumers 
to purchase electric energy, to provide the retail electric consumers, 
in addition to the information required under section 505, a statement 
containing the following information:
            (1) The nature of the service being offered, including 
        information about interruptibility of service.
            (2) The price of electric energy, including a description 
        of any variable charges.
            (3) A description of all other charges that are associated 
        with the service being offered, including access charges, exit 
        charges, back-up service charges, stranded cost recovery 
        charges, and customer service charges.
            (4) Information concerning the product or price that the 
        Federal Trade Commission determines is technologically and 
        economically feasible to provide and is of assistance to retail 
        electric consumers in making purchasing decisions.
    (b) Consumer Privacy.--
            (1) Prohibition.--The Federal Trade Commission shall issue 
        rules prohibiting any person who obtains consumer information 
        in connection with the sale or delivery of electric energy to a 
        retail electric consumer from using, disclosing, or permitting 
        access to such information unless the consumer to whom such 
        information relates provides prior written approval.
            (2) Permitted use.--The rules issued under this subsection 
        shall not prohibit any person from using, disclosing, or 
        permitting access to consumer information referred to in 
        paragraph (1) for any of the following purposes:
                    (A) To facilitate a retail electric consumer's 
                change in selection of a retail electric supplier under 
                procedures approved by the State or State commission.
                    (B) To initiate, render, bill, or collect for the 
                sale or delivery of electric energy to retail electric 
                consumers or for related services.
                    (C) To protect the rights or property of the person 
                obtaining such information.
                    (D) To protect retail electric consumers from 
                fraud, abuse, and unlawful subscription in the sale or 
                delivery of electric energy to such consumers.
                    (E) For law enforcement purposes.
                    (F) For purposes of compliance with any Federal, 
                State, or local law or regulation authorizing 
                disclosure of information to a Federal, State, or local 
                agency.
            (3) Aggregate consumer information.--The rules issued under 
        this subsection shall permit any person to use, disclose, and 
        permit access to aggregate consumer information and shall 
        require local distribution companies to make such information 
        available to retail electric suppliers upon request and payment 
        of a reasonable fee.
            (4) Definitions.--As used in this section:
                    (A) 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.
                    (B) 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.
                    (C) The term ``State commission'' has the meaning 
                given such term in section 3(15) of the Federal Power 
                Act (16 U.S.C. 796(15)).
    (c) Unfair Trade Practices.--
            (1) Slamming.--The Federal Trade Commission shall issue 
        rules prohibiting the change of selection of a retail electric 
        supplier except with the informed consent of the retail 
        electric consumer.
            (2) Cramming.--The Federal Trade Commission shall issue 
        rules prohibiting the sale of goods and services to a retail 
        electric consumer unless expressly authorized by law or the 
        retail electric consumer.
    (d) Federal Trade Commission Enforcement.--Violation of a rule 
issued under this section shall be treated as a violation of a rule 
under section 18 of the Federal Trade Commission Act (15 U.S.C. 57a). 
All functions and powers of the Federal Trade Commission under such Act 
are available to the Federal Trade Commission to enforce compliance 
with this section notwithstanding any jurisdictional limits in such 
Act.
    (e) State Authority.--(1) This section does not preclude a State or 
State commission 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.
    (2) The remedies provided by this section are in addition to any 
other remedies available by law.
    (f) Definitions.--As used in this section--
            (1) the term ``retail electric consumer'' means any person 
        who purchases electric energy for ultimate consumption;
            (2) the term ``retail electric supplier'' means any person 
        who sells electric energy to a retail electric consumer for 
        ultimate consumption; and
            (3) the term ``State commission'' has the meaning given 
        such term in section 3(15) of the Federal Power Act (16 U.S.C. 
        796(15)).

SEC. 507. WHOLESALE ELECTRICITY MARKET DATA.

    Section 213 of the Federal Power Act (16 U.S.C. 824l) is amended by 
adding at the end the following:
    ``(c) Wholesale Electricity Market Data.--
            ``(1) Not later than 180 days after the date of the 
        enactment of this subsection, the Commission shall, by rule, 
        establish an information system that gives persons who buy 
        electric energy for resale, State regulatory authorities, and 
        the public access to current information about--
                    ``(A) the availability of electric energy 
                generating capacity and known generating constraints, 
                and
                    ``(B) the availability of transmission capacity and 
                known transmission constraints.
            ``(2) The rule shall require--
                    ``(A) each electric utility and each Federal power 
                marketing administration that owns, operates, or 
                controls facilities used for the generation or 
                transmission of electric energy sold or transmitted in 
                interstate commerce to report, by unit, on a real-time 
                basis--
                            ``(i) the total number of megawatts (as a 
                        60 second average) produced by each generating 
                        facility it owns, operates, or controls, and
                            ``(ii) the total number of megawatts of 
                        capacity at each facility it owns, operates, or 
                        controls that is not being used to generate 
                        electric power; and
                    ``(B) each transmitting utility to report, on a 
                real-time basis--
                            ``(i) the total number of megawatts 
                        transmitted on each transmission facility it 
                        owns, operates, or controls, and
                            ``(ii) the total number of megawatts 
                        scheduled and the current capacity or rating of 
                        each transmission facility it owns, operates, 
                        or controls.
            ``(3) The Commission may enter agreements with regional 
        electric reliability councils to collect, retain, and make 
        available to persons who buy electric energy for resale, state 
        regulatory authorities, and the public the information required 
        to be submitted by the rule.''.

SEC. 508. WHOLESALE ELECTRIC ENERGY RATES IN THE WESTERN ENERGY MARKET.

    (a) Imposition of Wholesale Electric Energy Rates.--Not later than 
60 days after the date of enactment of this title, the Federal Energy 
Regulatory Commission shall impose just and reasonable load-
differentiated demand rates or cost-of-service based rates on sales by 
electric utilities of electric energy at wholesale in the western 
energy market.
    (b) Limitations.--
            (1) In general.--A load-differentiated demand rate or cost-
        of-service based rate shall not apply to a sale of electric 
        energy at wholesale for delivery in a State that--
                    (A) prohibits electric utilities from passing 
                through to retail consumers wholesale rates approved by 
                the Commission; or
                    (B) imposes a price limit on the sale of electric 
                energy at retail that--
                            (i) precludes an electric utility from 
                        recovering all of the costs incurred by the 
                        electric utility in purchasing electric energy; 
                        or
                            (ii) has precluded an electric utility (or 
                        any entity that is authorized to purchase 
                        electricity on behalf of an electric utility or 
                        a State) from making a payment when due to any 
                        entity within the western energy market from 
                        which the electric utility purchased electric 
                        energy, and the default has not been cured.
            (2) No orders to sell without guarantee of payment.--
        Notwithstanding section 302 of the Natural Gas Policy Act of 
        1978 (15 U.S.C. 3362), section 202(c) of the Federal Power Act 
        (16 U.S.C. 824a(c)), or section 101 of the Defense Production 
        Act of 1950 (50 U.S.C. App. 2071), neither the President, the 
        Secretary of Energy, nor the Commission may issue an order that 
        requires a seller of electric energy or natural gas to sell, on 
        or after the date of enactment of this title, electric energy 
        or natural gas to a purchaser in a State described in paragraph 
        (1) unless there is a guarantee that, in the determination of 
        the Commission, is sufficient to ensure that the seller will be 
        paid--
                    (A) the full purchase price when due, as agreed 
                upon by the buyer and seller; or
                    (B) if the buyer and seller are unable to agree 
                upon a price--
                            (i) a fair and equitable price for natural 
                        gas as determined by the President under 
                        section 302 of the Natural Gas Policy Act of 
                        1978 (15 U.S.C. 3362), or
                            (ii) a just and reasonable price for 
                        electric energy as determined by the Secretary 
                        of Energy or the Commission, as appropriate, 
                        under section 202(c) of the Federal Power Act 
                        (16 U.S.C. 824a(c)).
            (3) Requirement to meet in-state demand.--Notwithstanding 
        any other provision of law, a State electric utility commission 
        in the western energy market may prohibit an electric utility 
        in the State from making any sale of electric energy to a 
        purchaser in a State described in paragraph (1) at any time at 
        which a State electric utility commission determines that the 
        electric utility is not meeting the demand for electric energy 
        in the service area of the electric utility.
    (c) Report.--Not later than 120 days after the date of enactment of 
this title, the Secretary of Energy shall--
            (1) conduct an investigation to determine whether any 
        electric utility in a State described in subsection (d)(1) has 
        been rendered uncreditworthy or has defaulted on any payment 
        for electric energy as a result of a transfer of funds by the 
        electric utility to a parent company or to an affiliate of the 
        electric utility (except a payment made in accordance with a 
        State deregulation statute); and
            (2) submit to the Committee on Energy and Commerce of the 
        House of Representatives and the Committee on Energy and 
        Natural Resources of the Senate a report describing the results 
        of the investigation.
    (d) Duration.--A load-differentiated demand rate or cost-of-service 
based rate imposed under this section shall remain in effect until such 
time as the market for electric energy in the western energy market 
reflects just and reasonable rates, as determined by the Commission.
    (e) Authority of State Regulatory Authorities.--This section does 
not diminish or have any other effect on the authority of a State 
regulatory authority (as defined in section 3 of the Federal Power Act 
(16 U.S.C. 796)) to regulate rates and charges for the sale of electric 
energy to consumers, including the authority to determine the manner in 
which wholesale rates shall be passed on to consumers (including the 
setting of tiered pricing, real-time pricing, and baseline rates).
    (f) Definitions.--For purposes of this section--
            (1) Commission.--The term ``Commission'' means the Federal 
        Energy Regulatory Commission.
            (2) Cost-of-service based rate.--The term ``cost-of-service 
        based rate'' means a rate, charge, or classification for the 
        sale of electric energy that is equal to--
                    (A) all the variable and fixed costs for producing 
                the electric energy; and
                    (B) a reasonable return on invested capital.
            (3) Electric utility.--The term ``electric utility'' means 
        any person, State agency (including any municipality), Federal 
        agency (including the Tennessee Valley Authority or any Federal 
        power marketing agency) that sells electric energy in 
        interstate commerce.
            (4) Load-differentiated demand rate.--The term ``load-
        differentiated demand rate'' means a rate, charge, or 
        classification for the sale of electric energy that reflects 
        differences in the demand for electric energy during various 
        times of day, months, seasons, or other time periods.
            (5) Western energy market.--The term ``western energy 
        market'' means the area covered by the Western Systems 
        Coordinating Council of the North American Electric Reliability 
        Council.
    (g) Repeal.--Effective March 1, 2003, this section is repealed, and 
any load-differentiated demand rate or cost-of-service based rate 
imposed under this section that is then in effect shall no longer be 
effective.

SEC. 509. NATURAL GAS RATE CEILING IN CALIFORNIA.

    Section 284.8(i) of title 18, Code of Federal Regulations (relating 
to the waiver of the maximum rate ceiling on capacity release 
transactions on interstate natural gas pipelines) shall not apply to 
the transportation of natural gas into the State of California from 
outside the State, effective on the date of enactment of this section.

SEC. 510. SALE PRICE IN BUNDLED NATURAL GAS TRANSACTIONS.

    (a) Disclosure.--Not later than 60 days after the date of enactment 
of this section, the Federal Energy Regulatory Commission shall issue a 
rule under section 4 of the Natural Gas Act (15 U.S.C. 717c) requiring 
any person that sells natural gas subject to the jurisdiction of the 
Commission in a bundled transaction to file with the Commission, not 
later than the date specified by the Commission, a statement that 
discloses--
            (1) the portion of the sale price that is attributable to 
        the price paid by the seller for the natural gas; and
            (2) the portion of the sale price that is attributable to 
        the price paid for the transportation of the natural gas.
    (b) Definition of Bundled Transaction.--For purposes of this 
section, the term ``bundled transaction'' means a transaction for the 
sale of natural gas in which the sale price includes both the cost of 
the natural gas and the cost of transporting the natural gas.

            TITLE VI--RENEWABLES AND DISTRIBUTED GENERATION

SEC. 601. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

    (a) Resource Assessment.--Not later than one year after the date of 
enactment of this title, and each year thereafter, the Secretary of 
Energy shall publish an assessment of all renewable energy resources 
available within the United States.
    (b) Contents of Report.--The report published under subsection (a) 
shall contain--
            (1) a detailed inventory describing the available amount 
        and characteristics of solar, wind, biomass, geothermal, 
        hydroelectric and other renewable energy sources, 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. 602. FEDERAL PURCHASE REQUIREMENT.

    (a) Requirement.--The President shall ensure that, of the total 
amount of electric power the federal government purchases during any 
fiscal year--
            (1) not less than 3 percent in fiscal years 2002 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 electric power generated by a 
        renewable energy source.
    (b) Definition.--For purposes of this section, the term ``renewable 
energy source'' means--
            (1) wind;
            (2) biomass;
            (3) a geothermal source;
            (4) a solar thermal source;
            (5) a photovoltaic source;
            (6) fuel cells; or
            (7) additional hydroelectric generation capacity achieved 
        from increased efficiency or additions of new capacity at an 
        existing hydroelectric dam.

SEC. 603. INTERCONNECTION STANDARDS.

    Section 210 of the Federal Power Act (42 U.S.C. 824i) is amended by 
adding at the end the following:
    ``(f) Special Rule for Distributed Generation Facilities.--
            ``(1) Definition.--As used in this subsection, the term 
        `distributed generation facility' means an electric power 
        generation facility that--
                    ``(A) is designed to serve retail customers at or 
                near the point of consumption; and
                    ``(B) interconnects with local distribution 
                facilities.
            ``(2) Interconnection.--A local distribution company shall 
        interconnect a distributed generation facility with the local 
        distribution facilities of such company if the distributed 
        generation facility owner or operator complies with the final 
        rule adopted under paragraph (3) and pays the costs directly 
        related to such interconnection. Costs, terms, and conditions 
        related to such interconnection shall be just, reasonable, and 
        not unduly discriminatory.
            ``(3) Rules.--Within one year after the date of enactment 
        of this subsection, the Commission shall adopt a final rule to 
        establish safety, reliability, and power quality standards 
        related to distributed generation facilities. For purposes of 
        developing such standards, the Commission may classify 
        distributed power generation facilities based on size and 
        prescribe different requirements for different classes of 
        facilities. The Commission shall establish an advisory 
        committee composed of qualified experts to make recommendations 
        to the Commission on the development of such standards.''.

SEC. 604. 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 
                100 kilowatts or less that is fueled by solar or wind 
                energy; or
                    ``(B) a facility on the site of a commercial 
                electric consumer with a maximum generating capacity of 
                250 kilowatts or less that is fueled solely by a 
                renewable energy resource.
            ``(2) The term `renewable energy resource' means solar 
        energy, wind energy, biomass, geothermal energy, or fuel cells.
            ``(3) The term `net metering service' means service to an 
        electric consumer under which electricity generated by that 
        consumer from an eligible on-site generating facility and 
        delivered to the distribution system through the same meter 
        through which purchased electricity is received may be used to 
        offset electricity provided by the retail electric supplier to 
        the electric consumer during the applicable billing period so 
        that an electric consumer is billed only for the net 
        electricity consumed during the billing period.
    ``(b) Requirement To Provide Net Metering Service.--Each retail 
electric supplier shall make available upon request net metering 
service to any retail electric consumer that the supplier currently 
serves or solicits for service.
    ``(c) Rates and Charges.--
            ``(1) Identical charges.--A retail electric supplier--
                    ``(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 retail 
                electric customers of the electric company 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.--A retail electric supplier that 
        supplies electricity to the owner or operator of an on-site 
        generating facility shall measure the quantity of electricity 
        produced by the on-site facility and the quantity of 
        electricity consumed by the owner or operator of an on-site 
        generating facility during a billing period in accordance with 
        normal metering practices.
            ``(3) Electricity supplied exceeding electricity 
        generated.--If the quantity of electricity supplied by a retail 
        electric supplier during a billing period exceeds the quantity 
        of electricity generated by an on-site generating facility and 
        fed back to the electric distribution system during the billing 
        period, the supplier may bill the owner or operator for the net 
        quantity of electricity supplied by the retail electric 
        supplier, in accordance with normal metering practices.
            ``(4) Electricity generated exceeding electricity 
        supplied.--If the quantity of electricity generated by an on-
        site generating facility during a billing period exceeds the 
        quantity of electricity supplied by the retail electric 
        supplier during the billing period--
                    ``(A) the retail electric supplier 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 a retail 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 local distribution 
        systems 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.''.

SEC. 605. ACCESS TO TRANSMISSION BY INTERMITTENT GENERATORS.

    Part II of the Federal Power Act (16 U.S.C. 824-824m) is amended by 
adding at the end the following:

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

    ``(a) In General.--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 at least to intermittent generators, if not 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.--In this section:
            ``(1) Intermittent generator.--The term `intermittent 
        generator' means a person that generates electricity using wind 
        or solar energy.
            ``(2) Nonfirm transmission service.--The term `nonfirm 
        transmission service' means transmission service provided on an 
        `as available' basis.
            ``(3) Scheduling deviation.--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.''.

                  TITLE VII--HYDROELECTRIC RELICENSING

SEC. 701. ALTERNATIVE CONDITIONS.

    (a) Alternative Mandatory Conditions.--Section 4 of the Federal 
Power Act (16 U.S.C. 797) is amended by adding at the end the 
following:
    ``(h)(1) Whenever any person applies for a license for any project 
works within any reservation of the United States under subsection (e), 
and the Secretary of the department under whose supervision such 
reservation falls shall deem a condition to such license to be 
necessary under the first proviso of such section, the license 
applicant 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 alternative condition proposed by the license 
applicant, and the Commission shall include in the license such 
alternative condition, if the Secretary of the appropriate department 
determines that the alternative condition--
            ``(A) provides equal or greater protection for the 
        reservation than the condition deemed necessary by the 
        Secretary;
            ``(B) is based on sound science; and
            ``(C) will either--
                    ``(i) cost less to implement than the condition 
                deemed necessary by the Secretary, or
                    ``(ii) result in less loss of generating capacity 
                than the condition deemed necessary by the 
                Secretary.''.
    (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 may propose an alternative.
    ``(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 alternative proposed 
by the licensee, if the Secretary of the appropriate department 
determines that the alternative--
            ``(A) will result in equal or greater fish passage than the 
        fishway initially prescribed by the Secretary;
            ``(B) is based on sound science; and
            ``(C) will either--
                    ``(i) cost less to implement than the fishway 
                initially prescribed by the Secretary, or
                    ``(ii) result in less loss of generating capacity 
                than the fishway initially prescribed by the 
                Secretary.''.

SEC. 702. DISPOSITION OF HYDROELECTRIC CHARGES.

    (a) Annual Charges.--Section 10(e)(1) of the Federal Power Act (16 
U.S.C. 803(e)(1) is amended--
            (1) by striking ``subject to annual appropriations Acts'' 
        in the first proviso; and
            (2) by inserting after ``(in addition to other funds 
        appropriated for such purposes)'' in the first proviso the 
        following: ``without further appropriation''.
    (b) Other Charges.--Section 17(a) of the Federal Power Act (16 
U.S.C. 810(a)) is amended by striking ``into the Treasury of the United 
States and credited to `Miscellaneous receipts''' and inserting the 
following: ``to the Secretary of the department under whose supervision 
the affected reservation falls, without further appropriation, to be 
used in accordance with subsection (c)''.
    (c) Use of Funds.--Section 17 of the Federal Power Act (16 U.S.C. 
810) is further amended by adding at the end the following:
    ``(c)(1) The Secretary receiving a distribution of 12\1/2\ per 
centum of the proceeds of charges under subsection (a) may use such 
proceeds solely for the protection of the water resources on--
            ``(A) the reservation on which the project for which the 
        proceeds were paid is located; or
            ``(B) the reservation on which the headwaters of the 
        waterway, on which the project for which the proceeds were 
        paid, is located.
    ``(2) For purposes of this subsection, activities for the 
protection of water resources for which proceeds made available under 
this subsection may be used may only include the following:
            ``(A) promoting the recovery of threatened and endangered 
        species;
            ``(B) road and trail assessments and plans, maintenance, 
        obliteration, or closure;
            ``(C) wildlife and fish habitat management;
            ``(D) multiparty monitoring of water protection activities;
            ``(E) watershed analysis, including resource conditions and 
        trend assessments;
            ``(F) erosion control and restoring hydrologic function to 
        meadows, wetlands, and floodplains; and
            ``(G) job training associated with paragraph (3).
    ``(3) In order to provide employment and job training opportunities 
to residents of rural communities located within or near a reservation 
identified in paragraph (1), the Secretary may make grants or enter 
into cooperative agreements or contracts with--
            ``(A) a private, non-profit, or cooperative entity within 
        the same county as the reservation;
            ``(B) businesses that employ 25 or less employees;
            ``(C) an entity that will hire or train residents of 
        communities located within or near the reservation to perform 
        the contract; or
            ``(D) the Youth Conservation Corps or related partnerships 
        with State, local, or nonprofit youth groups.''

SEC. 703. RELICENSING STUDY.

    (a) In General.--The Federal Energy Regulatory Commission shall, in 
consultation with the Secretary of Commerce, the Secretary of the 
Interior, and the Secretary of Agriculture, conduct a study of all new 
licensees issued for existing projects under section 15 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; and
            (5) litigation arising from the issuance or failure to 
        issue new licenses for existing projects under section 15 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(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 six months after the date of enactment 
of this section.

                            TITLE VIII--COAL

SEC. 801. DEFINITIONS.

    In this title:
            (1) Cost and performance goals.--The term ``cost and 
        performance goals'' means the cost and performance goals 
        established under section 811.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

Subtitle A--National Coal-Based Technology Development and Applications 
                                Program

SEC. 811. COST AND PERFORMANCE GOALS.

    (a) In General.--The Secretary shall perform an assessment that 
identifies costs and associated performance of technologies that would 
permit the continued cost-competitive use of coal for electricity 
generation, as chemical feedstocks, and as transportation fuel in the 
periods--
            (1) 2007 through 2014;
            (2) 2015 through 2019; and
            (3) 2020 and each year thereafter.
    (b) Consultation.--In establishing the cost and performance goals, 
the Secretary shall consult with representatives of--
            (1) the United States coal industry;
            (2) State coal development agencies;
            (3) the electric utility industry;
            (4) railroads and other transportation industries;
            (5) manufacturers of equipment using advanced coal 
        technologies;
            (6) organizations representing workers; and
            (7) organizations formed to--
                    (A) further the goals of environmental protection;
                    (B) promote the use of coal; or
                    (C) promote the development and use of advanced 
                coal technologies.
    (c) Timing.--The Secretary shall--
            (1) not later than 120 days after the date of enactment of 
        this title, issue a set of draft cost and performance goals for 
        public comment; and
            (2) not later than 180 days after the date of enactment of 
        this title, after taking into consideration any public comments 
        received, submit to Congress the final cost and performance 
        goals.

SEC. 812. STUDY.

    (a) In General.--Not later than 1 year after the date of enactment 
of this title, the Secretary, in cooperation with the Secretary of the 
Interior and the Administrator of the Environmental Protection Agency, 
shall conduct a study to--
            (1) identify technologies capable of achieving the cost and 
        performance goals;
            (2) assess the costs that would be incurred by, and the 
        period of time that would be required for, the development and 
        demonstration of the cost and performance goals; and
            (3) develop recommendations for technology development 
        programs, which the Department of Energy could carry out in 
        cooperation with industry, to develop and demonstrate the cost 
        and performance goals.
    (b) Cooperation.--In carrying out this section, the Secretary shall 
give due weight to the expert advice of representatives of the entities 
described in section 811(b).

SEC. 813. TECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAM.

    (a) In General.--The Secretary shall carry out a program of 
research on and development, demonstration, and commercial application 
of coal-based technologies under the statutory authorities available to 
him for carrying out research and development.
    (b) Conditions.--The research, development, demonstration, and 
commercial application programs identified in section 812(a) shall be 
designed to achieve the cost and performance goals.
    (c) Report.--Not later than 18 months after the date of enactment 
of this title, the Secretary shall submit to the President and Congress 
a report containing--
            (1) a description of the programs that, as of the date of 
        the report, are in effect or are to be carried out by the 
        Department of Energy to support technologies that are designed 
        to achieve the cost and performance goals; and
            (2) recommendations for additional authorities required to 
        achieve the cost and performance goals.

SEC. 814. AUTHORIZATION OF APPROPRIATIONS.

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

             Subtitle B--Power Plant Improvement Initiative

SEC. 821. POWER PLANT IMPROVEMENT INITIATIVE PROGRAM.

    (a) In General.--The Secretary shall carry out a power plant 
improvement initiative program that will demonstrate commercial 
applications of advanced coal-based technologies applicable to new or 
existing power plants, including co-production plants, which must 
advance the efficiency, environmental performance, and cost 
competitiveness well beyond that which is in operation or has been 
demonstrated on the date of enactment of this title.
    (b) Plan.--Not later than 120 days after the date of enactment of 
this title, the Secretary shall submit to Congress a plan to carry out 
subsection (a) that includes a description of--
            (1) the program elements and management structure to be 
        used;
            (2) the technical milestones to be achieved with respect to 
        each of the advanced coal-based technologies included in the 
        plan; and
            (3) the demonstration activities proposed to be conducted 
        at new or existing coal-based electric generation units having 
        at least 50 megawatts nameplate rating, including improvements 
        to allow the units to achieve 1 or more of the following:
                    (A) An overall design efficiency improvement of not 
                less than 3 percent as compared with the efficiency of 
                the unit as operated on the date of enactment of this 
                title and before any retrofit, repowering, replacement, 
                or installation.
                    (B) A significant improvement in the environmental 
                performance related to the control of sulfur dioxide, 
                nitrogen oxide, and mercury in a manner that is 
                different and well below the cost of technologies that 
                are in operation or have been demonstrated on the date 
                of enactment of this title.
                    (C) A means of recycling, reusing, or sequestering 
                a significant portion of coal combustion wastes 
                produced by coal-based generating units excluding 
                practices that are commercially available at the date 
                of enactment of this title.

SEC. 822. FINANCIAL ASSISTANCE.

    (a) In General.--Not later than 180 days after the date on which 
the Secretary submits to Congress the plan under section 821(b), the 
Secretary shall solicit proposals for projects at new or existing 
facilities designed to achieve the levels of performance set forth in 
section 821(b)(3).
    (b) Project Criteria.--A solicitation under subsection (a) may 
include solicitation of a proposal for a project to demonstrate--
            (1) the control of emissions of 1 or more pollutants; or
            (2) the production of coal combustion byproducts that are 
        capable of obtaining economic values significantly greater than 
        byproducts produced on the date of enactment of this title.
    (c) Financial Assistance.--The Secretary shall provide financial 
assistance to projects that--
            (1) demonstrate overall cost reductions in the utilization 
        of coal to generate useful forms of energy;
            (2) improve the competitiveness of coal among various forms 
        of energy in order to maintain a diversity of fuel choices in 
        the United States to meet electricity generation requirements;
            (3) achieve, in a cost-effective manner, 1 or more of the 
        criteria described in the solicitation; and
            (4) demonstrate technologies that are applicable to 25 
        percent of the electricity generating facilities that use coal 
        as the primary feedstock on the date of enactment of this 
        title.
    (d) Federal Share.--The Federal share cost of a project funded 
under this subtitle shall not exceed 50 percent.

SEC. 823. FUNDING.

    To carry out this subtitle, the Secretary may use any unobligated 
funds available to the Secretary and any funds obligated to any project 
selected under the clean coal technology program that become 
unobligated.

              TITLE IX--PRICE-ANDERSON ACT REAUTHORIZATION

SEC. 901. SHORT TITLE.

    This title may be cited as the ``Price-Anderson Amendments Act of 
2001''.

SEC. 902. INDEMNIFICATION AUTHORITY.

    (a) Indemnification of NRC Licensees.--Section 170c. of the Atomic 
Energy Act of 1954 (42 U.S.C. 2210(c)) is amended by striking ``August 
1, 2002'' each place it appears and inserting ``August 1, 2012''.
    (b) Indemnification of DOE Contractors.--Section 170d.(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,''.
    (c) Indemnification of Nonprofit Educational Institutions.--Section 
170k. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(k)) is amended 
by striking ``August 1, 2002'' each place it appears and inserting 
``August 1, 2012''.

SEC. 903. MAXIMUM ASSESSMENT.

    Section 170b.(1) of the Atomic Energy Act of 1954 (42 U.S.C. 
2210(b)(1)) is amended by striking ``$10,000,000'' and inserting 
``$20,000,000''.

SEC. 904. DOE LIABILITY LIMIT.

    (a) Aggregate Liability Limit.--Section 170d. of the Atomic Energy 
Act of 1954 (42 U.S.C. 2210(d)) is amended by striking subsection (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 170d. of the Atomic Energy Act of 
1954 (42 U.S.C. 2210(d)) is further amended by striking subsection (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, shall be deemed to be 
        amended, on the date of the enactment of the Price-Anderson 
        Amendments Act of 1999, to reflect the amount of indemnity for 
        public liability and any applicable financial protection 
        required of the contractor under this subsection on such 
        date.''.

SEC. 905. 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 170e.(4) of the Atomic Energy Act of 
1954 (42 U.S.C. 2210(e)(4)) is amended by striking ``$100,000,000'' and 
inserting ``$500,000,000''.

SEC. 906. REPORTS.

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

SEC. 907. INFLATION ADJUSTMENT.

    Section 170t. 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 new 
        paragraph:
            ``(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 the date of the enactment of the Price-
        Anderson Amendments Act of 2001, 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 subsection; or
                    ``(B) the previous adjustment under this 
                subsection.''.

SEC. 908. 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 Nonprofit Institutions.--Section 234A of the 
Atomic Energy Act of 1954 (42 U.S.C. 2282a) is further amended by 
striking subsection d. and inserting the following:
    ``d. Notwithstanding subsection a., no contractor, subcontractor, 
or supplier considered to be nonprofit under the Internal Revenue Code 
of 1954 shall be subject to a civil penalty under this section in 
excess of the amount of any performance fee paid by the Secretary to 
such contractor, subcontractor, or supplier under the contract under 
which the violation or violations; occur.''.

SEC. 909. EFFECTIVE DATE.

    (a) In General.--The amendments made by this title shall become 
effective on the date of the enactment of this title.
    (b) Indemnification Provisions.--The amendments made by sections 
703, 704, and 705 shall not apply to any nuclear incident occurring 
before the date of the enactment of this title.
    (c) Civil Penalty Provisions.--The amendments made by section 708 
to section 234A of the Atomic Energy Act of 1954 (42 U.S.C. 
2282a(b)(2)) shall not apply to any violation occurring under a 
contract entered into before the date of the enactment of this title.

     DIVISION C--DOMESTIC OIL AND GAS PRODUCTION AND TRANSPORTATION

                    TITLE X--OIL AND GAS PRODUCTION

SEC. 1001. OUTER CONTINENTAL SHELF OIL AND GAS LEASE SALE 181.

    (a) Requirement.--Subject to applicable laws and regulations, not 
later than December 31, 2001, the Secretary of the Interior shall 
proceed with the proposed Eastern Gulf of Mexico Outer Continental 
Shelf Oil and Gas Lease Sale 181.
    (b) Modification.--In carrying out the sale under subsection (a), 
the Secretary of the Interior shall modify the lease area by excluding 
the 120 blocks in a narrow strip beginning 15 miles from the coast of 
Alabama. The Secretary shall include the 913 blocks in the area that is 
greater than 100 miles from the coast of Florida in Lease Sale 181.

SEC. 1002. FEDERAL ONSHORE LEASING PROGRAMS FOR OIL AND GAS.

    Consistent with applicable law and regulations, there are 
authorized to be appropriated to the Secretary of the Interior and the 
Secretary of Agriculture such sums as may be necessary, including 
salary expenses to hire additional personnel, to ensure expeditious 
compliance with National Environmental Policy Act requirements 
applicable to oil and gas production on public lands and national 
forest system lands.

SEC. 1003. INCREASING PRODUCTION ON STATE AND PRIVATE LANDS.

    (a) Study.--The Secretary of Energy, in close coordination with the 
Interstate Oil and Gas Compact Commission, shall conduct a study to 
evaluate the opportunities for increasing oil and natural gas 
production from State and privately controlled lands in the United 
States. The study shall take into account trends in land use and 
development that may affect oil and gas development, the various 
leasing practices and rules for development among the States, and 
differences in contract terms from State to State and among private 
landowners. The evaluation should also include an assessment of whether 
optimal recovery practices, including in-fill drilling, work-overs, and 
enhanced recovery operations, are being employed consistently to ensure 
the full development and conservation of the resources. The evaluation 
should determine what impediments may exist to ensuring optimal 
recovery practices and make recommendations as to how those impediments 
could be overcome. The study should also determine whether production 
rights or leases are controlled by parties no longer interested in 
fully recovering the resource, with inactivity for a period of time 
being considered as indicating a lack of interest.
    (b) Report to Congress and Governors.--Not later than 240 days 
after the date of enactment of this section, the Secretary shall 
provide a report to the Committee on Energy and Natural Resources in 
the Senate, and the Committee on Resources in the House of 
Representatives, summarizing the findings of the study carried out 
under subsection (a) and providing recommendations for policies or 
other actions that could help increase production on State and private 
lands. The Secretary shall also provide a copy of the report to the 
Governors of the Member States of the Interstate Oil and Compact 
Commission.

           TITLE XI--PIPELINE SAFETY RESEARCH AND DEVELOPMENT

SEC. 1101. PIPELINE INTEGRITY 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 title, 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) Points of Contact.--
            (1) Designation.--To coordinate and implement the research 
        and development programs and activities authorized under this 
        title--
                    (A) the Secretary of Transportation shall 
                designate, as the point of contact for the Department 
                of Transportation, an officer of the Department of 
                Transportation who has been appointed by the President 
                and confirmed by the Senate; and
                    (B) the Secretary of Energy shall designate, as the 
                point of contact for the Department of Energy, an 
                officer of the Department of Energy who has been 
                appointed by the President and confirmed by the Senate.
            (2) Duties.--(A) The point of contact for the Department of 
        Transportation shall have the primary responsibility for 
        coordinating and overseeing the implementation of the research, 
        development, and demonstration program plan, as defined in 
        subsections (e) and (f).
            (B) The points of contact shall jointly assist in arranging 
        cooperative agreements for research, development, and 
        demonstration involving their respective Departments, national 
        laboratories, universities, and industry research 
        organizations.
    (e) Research and Development Program Plan.--Within 240 days after 
the date of enactment of this Act, 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 5-year program plan to guide activities under this Act. In preparing 
the program plan, the Secretary of Transportation 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.
    (f) Implementation.--The Secretary of Transportation shall have 
primary responsibility for ensuring the five-year plan provided for in 
subsection (e) is implemented as intended by this Act. In carrying out 
the research, development, and demonstration activities under this Act, 
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.
    (g) 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 Department of 
Transportation, the Department of Energy, the national laboratories, 
universities, and any other research organizations, including industry 
research organizations.

SEC. 1102. PIPELINE INTEGRITY TECHNICAL ADVISORY COMMITTEE.

    (a) Establishment.--The Secretary of Transportation shall enter 
into appropriate arrangements with the National Academy of Sciences to 
establish and manage the Pipeline Integrity Technical Advisory 
Committee for the purpose of advising the Secretary of Transportation 
and the Secretary of Energy on the development and implementation of 
the five-year research, development, and demonstration program plan as 
defined in section 1101(e). The Advisory Committee shall have an 
ongoing role in evaluating the progress and results of the research, 
development, and demonstration carried out under this title.
    (b) Membership.--The National Academy of Sciences shall appoint the 
members of the Pipeline Integrity Technical Advisory Committee after 
consultation with the Secretary of Transportation and the Secretary of 
Energy. Members appointed to the Advisory Committee should have the 
necessary qualifications to provide technical contributions to the 
purposes of the Advisory Committee.

SEC. 1103. AUTHORIZATION OF APPROPRIATIONS.

    (a) There are authorized to be appropriated to the Secretary of 
Transportation for carrying out this title $3,000,000, which is to be 
derived from user fees (49 U.S.C. 60125), for each of the fiscal years 
2002 through 2006.
    (b) Of the amounts available in the Oil Spill Liability Trust Fund 
(26 U.S.C. 9509), $3,000,000 shall be transferred to the Secretary of 
Transportation to carry out programs for detection, prevention, and 
mitigation of oil spills authorized in this title for each of the 
fiscal years 2002 through 2006.
    (c) There are authorized to be appropriated to the Secretary of 
Energy for carrying out this title such sums as may be necessary for 
each of the fiscal years 2002 through 2006.

    DIVISION D--DIVERSIFYING ENERGY DEMAND AND IMPROVING EFFICIENCY

                          TITLE XII--VEHICLES

SEC. 1201. VEHICLE FUEL EFFICIENCY.

    (a) Requirement.--The Secretary of Transportation, in consultation 
with the Secretary of Energy and the Administrator of the Environmental 
Protection Agency, shall develop and implement mechanisms to increase 
fuel efficiency of light-duty vehicles to limit total demand for 
petroleum products by light-duty vehicles in the year 2008 and 
thereafter to no more than 105 percent of the consumption by such 
vehicles in the year 2000.
    (b) Negotiations.--Upon completion of the study of the National 
Academy of Sciences on the effectiveness and impact of corporate 
average fuel economy standards, and taking into account its findings, 
the Secretary of Transportation, in coordination with the Secretary of 
Energy and the Administrator of the Environmental Protection Agency, 
shall negotiate with the manufacturers of automobiles sold in the 
United States enforceable mechanisms to increase vehicle efficiency or 
provide vehicle alternatives to meet the petroleum demand target in 
subsection (a) while ensuring consumers reliable and affordable 
transportation services.
    (c) Rules.--Upon completion of the negotiations under subsection 
(b) and, in any event, not later than 18 months after the date of 
enactment of this section, the Secretary of Transportation shall 
establish, by rule--
            (1) the enforceable mechanisms agreed to under subsection 
        (b); or
            (2) if enforceable mechanism cannot be agreed on under 
        subsection (b), specific fuel economy regulations to meet the 
        petroleum demand targets under subsection (a).
    (d) Analyses and Reports to Congress.--The Department of Energy 
shall assist the Secretary of Transportation by carrying out analyses 
of recommended policies or combinations of policies to determine if the 
petroleum demand target in subsection (a) is likely to be met. Once 
enforceable mechanisms are adopted under subsection (b), the Secretary 
of Energy shall track progress towards meeting the petroleum demand 
target and shall report to Congress three years after the date of 
enactment of this section, and every two years thereafter until the 
year 2008, on the Secretary of Energy's determination as to whether the 
mechanisms are effectively meeting the petroleum demand target. If the 
Secretary of Energy determines that the mechanisms are not effectively 
meeting the target, then the Secretary shall recommend in the report to 
Congress on further policies that may be required to meet the target.
    (e) Definitions.--In this section:
            (1) Light-duty vehicles.--The term ``light duty vehicles'' 
        includes passenger automobiles, in addition to all light trucks 
        and sport utility vehicles marketed as passenger vehicles, 
        regardless of weight.
            (2) Mechanisms.--The term ``mechanisms'' includes stronger 
        standards for corporate average fuel economy, alternatives to 
        the current fuel economy standards such as combining cars and 
        light trucks for the purpose of fuel economy regulation, 
        specific fuel efficiency standards by vehicle class, tax 
        incentives for highly efficient or alternative fuel vehicles, 
        updating and expanding the scope of the current gas guzzler tax 
        program, and new programs to promote the purchase of high 
        efficiency and alternative fuel vehicles or early retirement of 
        inefficient vehicles.

SEC. 1202. 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; and
                            ``(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) Section 400AA(g)(4)(B) of the Energy Policy and Conservation 
Act (42 U.S.C. 6374(g)(4)(B)) is amended by adding, after the words, 
``solely on alternative fuel'', ``, including a three-wheeled enclosed 
electric vehicle having a vehicle identification number''.

SEC. 1203. 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))))''.

                         TITLE XIII--FACILITIES

SEC. 1301. FEDERAL ENERGY BANK.

    (a) Definitions.--In this section:
            (1) Agency.--The term ``agency'' means--
                    (A) an Executive agency (as defined in section 105 
                of title 5, United States Code, except that the term 
                also includes the United States Postal Service);
                    (B) Congress and any other entity in the 
                legislative branch; and
                    (C) a court and any other entity in the judicial 
                branch.
            (2) Bank.--The term ``Bank'' means the Federal Energy Bank 
        established by subsection (b).
            (3) Energy efficiency project.--The term ``energy 
        efficiency project'' means a project that assists an agency in 
        meeting or exceeding the energy efficiency goals stated in--
                    (A) part 3 of title V of the National Energy 
                Conservation Policy Act (42 U.S.C. 8251 et seq.);
                    (B) subtitle F of title I of the Energy Policy Act 
                of 1992; and
                    (C) applicable Executive orders, including 
                Executive Order Nos. 12759 and 12902.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (5) Total utility payments.--The term ``total utility 
        payments'' means payments made to supply electricity, natural 
        gas, and any other form of energy to provide the heating, 
        ventilation, and air conditioning, lighting, and other energy 
        needs of an agency facility.
    (b) Establishment of Bank.--
            (1) In general.--There is established in the Treasury of 
        the United States a trust fund to be known as the ``Federal 
        Energy Bank'', consisting of--
                    (A) such amounts as are appropriated to the Bank 
                under subsection (f);
                    (B) such amounts as are transferred to the Bank 
                under paragraph (2);
                    (C) such amounts as are repaid to the Bank under 
                subsection (c)(2)(D); and
                    (D) any interest earned on investment of amounts in 
                the Bank under paragraph (3).
            (2) Transfers to bank.--
                    (A) In general.--At the beginning of each of fiscal 
                years 2002, 2003, and 2004, each agency shall transfer 
                to the Secretary of the Treasury, for deposit in the 
                Bank, an amount equal to 5 percent of the total utility 
                payments paid by the agency in the preceding fiscal 
                year.
                    (B) Utilities paid for as part of rental 
                payments.--The Secretary shall by regulation establish 
                a formula by which the appropriate portion of a rental 
                payment that covers the cost of utilities shall be 
                considered to be a utility payment for the purposes of 
                subparagraph (A).
            (3) Investment of funds.--The Secretary of the Treasury 
        shall invest such portion of funds in the Bank as is not, in 
        the Secretary's judgment, required to meet current withdrawals. 
        Investments may be made only in interest-bearing obligations of 
        the United States.
    (c) Loans From the Bank.--
            (1) In general.--The Secretary of the Treasury shall 
        transfer from the Bank to the Secretary such amounts as are 
        appropriated to carry out the loan program under paragraph (2).
            (2) Loan program.--
                    (A) In general.--In accordance with subsection (d), 
                the Secretary shall establish a program to loan amounts 
                from the Bank to any agency that submits an application 
                satisfactory to the Secretary in order to finance an 
                energy efficiency project.
                    (B) Performance contracting funding.--To the extent 
                practicable, an agency shall not submit a project for 
                which performance contracting funding is available.
                    (C) Purposes of loan.--
                            (i) In general.--A loan under this section 
                        may be made to pay the costs of--
                                    (I) an energy efficiency project; 
                                or
                                    (II) development and administration 
                                of a performance contract.
                            (ii) Limitation.--An agency may use not 
                        more than 15 percent of the amount of a loan 
                        under clause (i)(I) to pay the costs of 
                        administration and proposal development 
                        (including data collection and energy surveys).
                    (D) Repayments.--
                            (i) In general.--An agency shall repay to 
                        the Bank the principal amount of the energy 
                        efficiency project loan plus interest at a rate 
                        determined by the President, in consultation 
                        with the Secretary and the Secretary of the 
                        Treasury.
                            (ii) Waiver.--The Secretary may waive the 
                        requirement of clause (i) if the Secretary 
                        determines that payment of interest by an 
                        agency is not required to sustain the needs of 
                        the Bank in making energy efficiency project 
                        loans.
                    (E) Agency energy budgets.--Until a loan is repaid, 
                an agency budget submitted to Congress for a fiscal 
                year shall not be reduced by the value of energy 
                savings accrued as a result of the energy conservation 
                measure implemented with funds from the Bank.
                    (F) Availability of funds.--An agency shall not 
                rescind or reprogram funds made available by this Act. 
                Funds loaned to an agency shall be retained by the 
                agency until expended, without regard to fiscal year 
                limitation.
    (d) Selection Criteria.--
            (1) In general.--The Secretary shall establish criteria for 
        the selection of energy efficiency projects to be awarded loans 
        in accordance with paragraph (2).
            (2) Selection criteria.--The Secretary may make loans only 
        for energy efficiency projects that--
                    (A) are technically feasible;
                    (B) are determined to be cost-effective using life 
                cycle cost methods established by the Secretary by 
                regulation;
                    (C) include a measurement and management component 
                to--
                            (i) commission energy savings for new 
                        Federal facilities; and
                            (ii) monitor and improve energy efficiency 
                        management at existing Federal facilities; and
                    (D) have a project payback period of 7 years or 
                less.
    (e) Reports and Audits.--
            (1) Reports to the secretary.--Not later than 1 year after 
        the installation of an energy efficiency project that has a 
        total cost of more than $1,000,000, and each year thereafter, 
        an agency shall submit to the Secretary a report that--
                    (A) states whether the project meets or fails to 
                meet the energy savings projections for the project; 
and
                    (B) for each project that fails to meet the savings 
                projections, states the reasons for the failure and 
                describes proposed remedies.
            (2) Audits.--The Secretary may audit any energy efficiency 
        project financed with funding from the Bank to assess the 
        project's performance.
            (3) Reports to congress.--At the end of each fiscal year, 
        the Secretary shall submit to Congress a report on the 
        operations of the Bank, including a statement of the total 
        receipts into the Bank, and the total expenditures from the 
        Bank to each agency.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 1302. INCENTIVES FOR ENERGY EFFICIENT SCHOOLS.

    (a) Establishment.--There is established in the Department of 
Education the High Performance Schools Program (hereafter in this 
section referred to as the ``Program'').
    (b) Grants.--The Secretary of Education may make grants to State 
educational agencies--
            (1) to assist schools in achieving energy efficiency 
        performance not less than 30 percent below the least efficient 
        levels, as measured over the full fuel cycle, permitted under 
        the 1998 International Energy Conservation Code as it is in 
        effect for new construction and existing buildings;
            (2) to administer the Program; and
            (3) to promote participation in the Program.
    (c) Grants To Assist School Districts.--Grants under subsection 
(b)(1) shall be used for schools that--
            (1) have demonstrated a need for such grants in order to 
        respond appropriately to increasing elementary and secondary 
        school enrollments or to make major investments in renovation 
        of school facilities;
            (2) have demonstrated that the districts do not have 
        adequate funds to respond appropriately to such enrollments or 
        achieve such investments without assistance;
            (3) have made a commitment to use the grant funds to 
        develop high performance school buildings in accordance with a 
        plan that the State educational agency, in consultation with 
        the State energy office, 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 schools 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 service companies, working with school administrations, 
students, and communities, and coordinating public benefit programs.
    (f) Supplementing Grant Funds.--The State educational agency shall 
encourage qualifying schools to supplement funds awarded pursuant to 
this section with funds from other sources in the implementation of 
their plans.
    (g) Purposes.--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).
            (3) 15 percent shall be used to make grants under 
        subsection (b)(3).
    (h) Other Funds.--The Secretary of Education may retain an amount, 
not to exceed $300,000 per year, to assist State educational agencies 
designated 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 2002,
            (2) $210,000,000 for fiscal year 2003,
            (3) $220,000,000 for fiscal year 2004,
            (4) $230,000,000 for fiscal year 2005, and
            (5) such sums as may be necessary for each of the 
        subsequent 6 fiscal years.
    (j) Definitions.--For purposes of this section:
            (1) High performance school building.--The term ``high 
        performance school building'' refers to a school building that, 
        in its design, construction, operation, and maintenance, 
        maximizes use of renewable energy, direct use of 
        environmentally clean fossil fuels for supplementary space 
        conditioning and water heating and energy conservation 
        practices, represents the most cost-effective alternatives on a 
        life-cycle basis considering energy price forecasts from the 
        U.S. Energy Information Administration, uses affordable, 
        environmentally preferable, durable materials, enhances indoor 
        environmental quality, protects and conserves water, and 
        optimizes site potential.
            (2) Renewable energy.--The term ``renewable energy'' means 
        energy produced by solar, wind, geothermal, hydropower, and 
        biomass 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)).

SEC. 1303. 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 1 percent each year 
from 2002 through 2012.
    (c) Recognition.--The Secretary of Energy, in cooperation with 
other appropriate federal agencies, shall develop mechanisms to 
recognize and publicize the commitments made by 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.

                         DIVISION E--ENHANCING

                         RESEARCH, DEVELOPMENT,

                              AND TRAINING

              TITLE XIV--RESEARCH AND DEVELOPMENT PROGRAMS

SEC. 1401. SHORT TITLE AND FINDINGS.

    (a) Short Title.--This title may be cited as ``Energy Science and 
Technology Enhancement Act''.
    (b) Findings.--
            (1) A coherent strategy for ensuring a diverse national 
        energy supply 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) Federal budget authority for energy research and 
        development, measured in constant 1992 dollars, has declined 
roughly three-fourths from about $6 billion in 1980 to $1.5 billion in 
2000.
            (3) According to the Energy Information Administration, an 
        aggressive national energy research, development, and 
        technology deployment program can--
                    (A) result in United States energy intensity 
                declines of 1.9 percent per year from 1999 to 2020;
                    (B) reduce United States energy consumption in 2020 
                by 8 quadrillion Btu from otherwise expected levels; 
                and
                    (C) reduce carbon dioxide emissions from expected 
                levels of 166 million metric tons in carbon equivalent 
                in 2020.
            (4) An aggressive national energy research, development, 
        and technology deployment program can also help maintain 
        domestic United States production of energy. As one example, 
        such a program could increase the success rates of finding and 
        drilling for oil and natural gas, and thereby increase United 
        States hydrocarbon reserves in 2020 by 14 percent over 
        otherwise expected levels, and contributing to natural gas 
        prices in 2020 that would be 20 percent lower than otherwise 
        expected.
            (5) An aggressive national energy research, development, 
        and technology deployment program is needed if United States 
        suppliers and manufacturers are to compete in future markets 
        for advanced energy technologies. Vehicles based on advanced 
        energy technologies in automotive applications could account, 
        for example, for nearly 17 percent of all light-duty vehicle 
        sales by 2020 displacing 203,000 oil barrels a day equivalent.
            (6) To achieve these results across a broad range of 
        sources of energy supply and energy end-uses, a comprehensive 
        and balanced energy research, development, and technology 
        deployment program must be supported by the Department of 
        Energy.

SEC. 1402. ENHANCED ENERGY EFFICIENCY RESEARCH AND DEVELOPMENT.

    (a) Goals.--It is the sense of Congress that a balanced energy 
research, development, and deployment program to enhance energy 
efficiency should have the following goals:
            (1) For energy efficiency in housing, the program should 
        develop technologies, housing components, designs and 
        production methods that will, by 2010--
                    (A) reduce the time needed to move technologies to 
                market by 50 percent,
                    (B) reduce the monthly cost of new housing by 20 
                percent,
                    (C) cut the environmental impact and energy use of 
                new housing by 50 percent, and
                    (D) reduce energy use in 15 million existing homes 
                by 30 percent, and
                    (E) improve durability and reduce maintenance costs 
                by 50 percent.
            (2) For industrial energy efficiency, the program should, 
        in cooperation with the affected industries--
                    (A) develop a microturbine (40 to 300 kilowatt) 
                that is more than 40 percent efficient by 2006,
                    (B) develop a microturbine that is more than 50 
                percent efficient by 2010,
                    (C) develop advanced materials for combustion 
                systems that reduce emissions of nitrogen oxides by 30 
                to 50 percent while increasing efficiency 5 to 10 
                percent by 2007, and
                    (D) improve the energy intensity of the major 
                energy-consuming industries by at least 25 percent by 
                2010.
            (3) For transportation energy efficiency, the program 
        should, in cooperation with affected industries--
                    (A) develop an 80-mile-per-gallon production 
                prototype passenger automobile by 2004,
                    (B) develop a heavy truck (Classes 7 and 8) with 
                ultra low emissions and the ability to use an 
                alternative fuel that has an average fuel economy of--
                            (i) 10 miles per gallon by 2007, and
                            (ii) 13 miles per gallon by 2010,
                    (C) develop a production prototype of a passenger 
                automobile with zero equivalent emissions that has an 
                average fuel economy of 100 miles per gallon by 2010, 
                and
                    (D) improve, by 2010, the average fuel economy of 
                trucks--
                            (i) in Classes 1 and 2 by 300 percent, and
                            (ii) in Classes 3 through 6 by 200 percent.
    (b) Definition.--For purposes of subsection (a)(2), the term 
``major energy consuming industries'' means--
            (1) the forest product industry,
            (2) the steel industry,
            (3) the aluminum industry,
            (4) the metal casting industry,
            (5) the chemical industry,
            (6) the petroleum refining industry, and
            (7) the glass-making industry.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy for operating expenses and 
capital equipment for research, development, demonstration, and initial 
deployment assistance activities related to energy efficiency research 
and development including state and local grants and the federal energy 
management program--
            (1) $879,000,000 for fiscal year 2002;
            (2) $948,000,000 for fiscal year 2003;
            (3) $1,024,000,000 for fiscal year 2004;
            (4) $1,106,000,000 for fiscal year 2005; and
            (5) $1,195,000,000 for fiscal year 2006.
    (d) Special Projects in Energy-Efficient Transmission.--From 
amounts authorized under this section, the Secretary of Energy shall 
make not more than 3 awards for projects demonstrating the use of 
advanced technology--
            (1) to construct a bulk electricity transmission line of 
        not less than 35 miles based on wire fabricated from 
        superconducting materials; and
            (2) to provide a 20 percent increase in the average 
        efficiency in electricity transmission systems in rural and 
        remote areas.

SEC. 1403. ENHANCED RENEWABLE ENERGY RESEARCH AND DEVELOPMENT.

    (a) Goals.--It is the sense of Congress that a balanced energy 
research, development, and deployment program to enhance renewable 
energy should have the following goals.
            (1) For wind power, the program should reduce the cost of 
        wind electricity by 50 percent by 2006, so that wind power can 
        be widely competitive with fossil-fuel-based electricity in a 
        restructured electric industry, with concentration within the 
        program on a variety of advanced wind turbine concepts and 
        manufacturing technologies.
            (2) For photovoltaics, the programs should pursue research 
        and development that would lead to photovoltaic systems prices 
        of $3,000 per kilowatt in 2003 and $1,500 per kilowatt by 2006. 
        Program activities should include assisting industry in 
        developing manufacturing technologies, giving greater attention 
        to balance of system issues, and expanding fundamental research 
        on relevant advanced materials.
            (3) For solar thermal electric systems the program should 
        strengthen ongoing research and development combining high-
        efficiency and high-temperature receivers with advanced thermal 
        storage and power cycles, with the goal of making solar-only 
        power (including baseload solar power) widely competitive with 
        fossil fuel power by 2015.
            (4) For biomass-based power systems, the program should 
        enable commercialization, within five years, integrated power-
        generating technologies that employ gas turbines and fuel cells 
        integrated with biomass gasifiers. The program should embrace 
        an interagency bioenergy framework to triple United States 
        bioenergy use by 2010.
            (5) For geothermal energy, the programs should continue 
        work on hydrothermal systems, and reactivate research and 
        development on advanced concepts, giving top priority to high-
        grade hot dry-rock geothermal energy. This technology offers 
        the long-term potential, with advanced drilling and reservoir 
        exploitation technology, of providing heat and baseload 
        electricity in most areas of the United States.
            (6) For biofuels, the program should accelerate research 
        and development on advanced enzymatic hydrolysis technology for 
making ethanol from cellulosic feedstock, with the goal that between 
2010 and 2015 ethanol produced from energy crops would be fully 
competitive in terms of price with gasoline as a neat fuel, in either 
internal combustion engine or fuel cell vehicles. The programs should 
coordinate this development with the biopower program so as to co-
optimize the production of ethanol from the carbohydrate fractions of 
the biomass and electricity from the lighting using advanced biopower 
technology using a suite of integrated systems from gas turbines to 
fuel cells.
            (7) For hydrogen-based energy systems, the program should 
        support research and development on hydrogen-using and 
        hydrogen-producing technologies. The programs should also 
        coordinate hydrogen-using technology development with proton-
        exchange-membrane fuel-cell vehicle development activities 
        under the enhanced energy efficiency program in section 1002.
            (8) For hydropower, the program should provide a new 
        generation of turbine technologies that are less damaging to 
        fish and aquatic ecosystems. By deploying such technologies at 
        existing dams and in new low-head, run-of-river applications, 
        as much as an additional 50,000 MW could be possible by 2020.
            (9) For electric energy and storage, the program should 
        develop a high capacity superconducting transmission lines, 
        generators, and develop distributed generating systems to 
        accommodate multiple types of energy sources under a common 
        interconnect standard.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy for operating expenses and 
capital equipment for research, development, demonstration, and initial 
deployment assistance activities related to solar and renewable 
resources technologies, under the Office of Energy Efficiency and 
Renewable Energy, as follows:
            (1) $419,500,000 for fiscal year 2002;
            (2) $468,000,000 for fiscal year 2003;
            (3) $523,000,000 for fiscal year 2004;
            (4) $583,000,000 for fiscal year 2005; and
            (5) $652,000,000 for fiscal year 2006.
    (c) Special Projects in Renewable Energy.--From amounts authorized 
under this section, the Secretary of Energy shall make not more than 3 
awards for projects demonstrating the use of advanced wind energy 
technology to assist in delivering electricity in rural and remote 
locations. The Secretary may provide financial assistance to rural 
electric cooperatives and other rural entities seeking to submit 
proposals for such projects.

SEC. 1404. ENHANCED FOSSIL ENERGY RESEARCH AND DEVELOPMENT.

    (a) Goals.--It is the sense of Congress that a balanced energy 
research, development, and deployment program to enhance renewable 
energy should have the following goals:
            (1) For core fossil energy research and development, the 
        program should achieve the goals outlined by the Department of 
        Energy's Vision 21 program for fossil energy research. This 
        research should aim towards increased efficiency of the 
        combined cycle using high temperature fuel cells, advanced 
        gasification technologies for coal and biomass to produce power 
        and clean fuels. The program should include a carbon dioxide 
        based sequestration program to help reduce global warming.
            (2) For offshore oil and natural gas resources, the program 
        should investigate and 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. Research and development on ultra-deepwater 
                resource recovery shall focus on improving the safety 
                and efficiency of such recovery and of sub-sea 
                production technology used for such recovery, while 
                lowering costs.
            (3) For transportation fuels, the program should support a 
        comprehensive transportation fuels strategy to increase the 
        price elasticity of oil supply and demand by focusing research 
        on reducing the cost of producing transportation fuels from 
        natural gas and indirect liquefaction of coal and biomass.
    (b) Study.--The Secretary of Energy, in consultation with the 
Secretary of the Interior, the Administrator of the Environmental 
Protection Agency and affected industries (including electric 
utilities, electrical equipment manufacturers, and organizations 
representing electrical workers) should conduct a study to identify 
technologies and a research program that would permit the cost-
competitive use of coal for electricity generation through 2020 while 
furthering national environmental goals.
    (c) Authorization of Appropriations.--In addition to the amounts 
authorized under section 814 of this Act, there are authorized to be 
appropriated to the Secretary of Energy for operating expenses and 
capital equipment for research, development, demonstration, and initial 
deployment assistance activities related to fossil energy resources 
technologies, under the Office of Fossil Energy, including the clean 
coal technology demonstration program:
            (1) $462,500,000 for fiscal year 2002;
            (2) $485,000,000 for fiscal year 2003;
            (3) $508,000,000 for fiscal year 2004;
            (4) $532,000,000 for fiscal year 2005; and
            (5) $558,000,000 for fiscal year 2006.

SEC. 1405. ENHANCED NUCLEAR ENERGY RESEARCH AND DEVELOPMENT.

    (a) Goals.--It is the sense of Congress that a balanced energy 
research, development, and deployment program to enhance renewable 
energy should have the following goals:
            (1) The program should 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) The program should address advanced proliferation-
        resistant reactor designs, proliferation-resistant and high 
        burn-up nuclear fuels, minimization of generation of 
        radioactive materials, improved nuclear waste management 
        technologies, and improved instrumentation science.
            (3) The program should attract new students and faculty to 
        the nuclear sciences and nuclear engineering through a 
        university-based fundamental research program for existing 
        faculty and new junior faculty, a program to re-license 
        existing training reactors at universities in conjunction with 
        industry, and a program to complete the conversion of existing 
        training reactors with proliferation resistant fuels that are 
        low enriched and to adapt those reactors to new investigative 
        uses.
            (4) The program should 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) The program should ensure that our nation has adequate 
        capability for power future satellite and space missions.
            (6) The programs should investigate the fundamental and 
        applied sciences associated with high- and low-energy 
        accelerators as a method to transmute nuclear waste, 
        particularly wastes that may be difficult to dispose of by 
        other methods.
            (7) The program should maintain, where appropriate through 
        a prioritization process, a balanced research infrastructure so 
        that future research programs can utilize these facilities.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy for operating expenses and 
capital equipment for research, development, demonstration, and initial 
deployment assistance activities related to nuclear energy research and 
development:
            (1) $433,000,000 for fiscal year 2002;
            (2) $461,000,000 for fiscal year 2003;
            (3) $491,000,000 for fiscal year 2004;
            (4) $523,000,000 for fiscal year 2005; and
            (5) $557,000,000 for fiscal year 2006.

SEC. 1406. ENHANCED PROGRAMS IN FUNDAMENTAL ENERGY SCIENCE.

    (a) Findings.--The Congress finds the following:
            (1) The Office of Science within the Department of Energy 
        is the nation's single largest funding source for the basic 
        physical sciences. These intellectual disciplines, which 
        include physics, chemistry, and materials science, are crucial 
        to the nation's future ability to develop energy technologies. 
The United States should be the world leader in these areas.
            (2) Despite the importance of the physical sciences, the 
        Office of Science budget has remained stagnant over the past 
        decade.
            (3) The stagnation in funding for the physical sciences 
        through the Office of Science has been reflected in a decline 
        in United States contributions to leading scientific journals, 
        as the share of European and Asian submissions to these 
        journals since 1990 has increased from 50 to 75 percent while 
        the United States share has decreased to 25 percent.
    (b) Goals.--It is the sense of Congress that the Department of 
Energy, through the Office of Science, should--
            (1) develop a robust portfolio of fundamental energy 
        research, including 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 insure that 
        they are an integral part of the Department's mission for 
        exploring the frontiers of fundamental energy sciences;
            (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 energy sciences programs, 
        where appropriate, help inform the applied research and 
        development programs of the Department.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy for operating expenses and 
capital equipment for fundamental energy research and development in 
the Office of Science--
            (1) $3,716,000,000 for fiscal year 2002;
            (2) $4,087,000,000 for fiscal year 2003;
            (3) $4,496,000,000 for fiscal year 2004;
            (4) $4,946,000,000 for fiscal year 2005; and
            (5) $5,440,000,000 for fiscal year 2006.

        TITLE XV--MANAGEMENT OF DOE SCIENCE AND TECHNOLOGY PROGRAMS

SEC. 1501. MERIT REVIEW.

    Awards of funds authorized under title XIV shall be made only after 
independent review of the scientific and technical merit of the 
proposals therefor has been undertaken by the Department of Energy.

SEC. 1502. COST SHARING.

    (a) Research and Development.--For research and development 
projects funded from appropriations authorized under sections 1402 
through 1405, the Secretary of Energy 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 paragraph if the Secretary determines that the research and 
development is of a basic or fundamental nature.
    (b) Demonstration and Deployment.--For demonstration and deployment 
activities funded from appropriations authorized under sections 1402 
through 1405, the Secretary of Energy 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, deployment, or 
commercial application. The Secretary may reduce or eliminate the non-
Federal requirement under this paragraph 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. 1503. IMPROVED COORDINATION AND MANAGEMENT OF SCIENCE AND 
              TECHNOLOGY.

    (a) National Energy Research and Development Advisory Boards.--
            (1) Establishment.--The Secretary of Energy shall establish 
        an advisory board to oversee Department of Energy research and 
        development programs in each of the following areas:
                    (A) energy efficiency;
                    (B) renewable energy;
                    (C) fossil energy; and
                    (D) nuclear energy.

        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.
            (2) 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.
            (3) Membership.--Each advisory board under this subsection 
        shall consist of experts drawn from industry, academia, federal 
        laboratories, or other research institutions.
            (4) Meetings and purposes.--Each advisory board under this 
        subsection shall meet at least semi-annually to review and 
        advise on the progress made by the respective research, 
        development, and 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.
    (b) Effective Coordination of Department 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 
Science and Technology, 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 Science and Technology 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 Science and Technology 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 the 
        performance of functions under section 203(a)(2), as well as 
        other civilian research and development authorities assigned to 
        the Secretary by statute.''.
    (c) Transfer of Responsibilities From Office of Science.--Section 
209 of the Department of Energy Organization Act (41 U.S.C. 7139) is 
amended by--
            (1) striking ``(a)''; and
            (2) striking subsection (b).
    (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:
    ``(c) 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.
    ``(d) 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)''.

                   TITLE XVI--PERSONNEL AND TRAINING

SEC. 1601. WORKFORCE TRENDS AND TRAINEESHIP GRANTS.

    (a) Workforce Trends.--
            (1) Monitoring.--The Secretary of Energy, 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 of Energy 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 of Energy 
        to enhance training of technically skilled personnel for which 
        a shortfall is determined under subsection (a).
            (2) Eligible institutions.--As determined by the Secretary 
        of Energy to be appropriate to the particular workforce 
        shortfall, the Secretary shall make grants under paragraph (1) 
        to--
                    (A) an institution of higher education (within the 
                meaning given that term in section 1201(a) of the 
                Higher Education Act of 1965 (20 U.S.C. 1141(a));
                    (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)); or
                    (C) appropriate agencies of State, local, or tribal 
                governments.

SEC. 1602. TRAINING GUIDELINES FOR ELECTRIC ENERGY INDUSTRY PERSONNEL.

    (a) Model Guidelines.--The Secretary of Energy shall, in 
cooperation with electric utilities and local 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.
                                 <all>