I 108th CONGRESS 2d Session H. R. 4503 IN THE HOUSE OF REPRESENTATIVES June 3, 2004 Mr. Barton of Texas introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Science, Ways and Means, Resources, Education and the Workforce, Transportation and Infrastructure, Financial Services, Agriculture, and Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To enhance energy conservation and research and development, to provide for security and diversity in the energy supply for the American people, and for other purposes.
1.
Short title; table of contents
(a)
Short title
This Act may be cited as the Energy Policy Act of 2004. (b)
Table of contents
The table of contents for this Act is as follows: Sec. 1. Short title; table of contents Title I—Energy efficiency Subtitle A—Federal programs Sec. 101. Energy and water saving measures in congressional buildings Sec. 102. Energy management requirements Sec. 103. Energy use measurement and accountability Sec. 104. Procurement of energy efficient products Sec. 105. Energy Savings Performance Contracts Sec. 106. Energy Savings Performance Contracts pilot program for nonbuilding applications Sec. 107. Voluntary commitments to reduce industrial energy intensity Sec. 108. Advanced Building Efficiency Testbed Sec. 109. Federal building performance standards Sec. 110. Increased use of recovered mineral component in Federally funded projects involving procurement of cement or concrete Subtitle B—Energy assistance and State programs Sec. 121. Low income home energy assistance program Sec. 122. Weatherization assistance Sec. 123. State energy programs Sec. 124. Energy efficient appliance rebate programs Sec. 125. Energy efficient public buildings Sec. 126. Low income community energy efficiency pilot program Subtitle C—Energy efficient products Sec. 131. Energy Star Program Sec. 132. HVAC maintenance consumer education program Sec. 133. Energy conservation standards for additional products Sec. 134. Energy labeling Subtitle D—Public housing Sec. 141. Capacity building for energy-efficient, affordable housing Sec. 142. Increase of cdbg public services cap for energy conservation and efficiency activities Sec. 143. FHA mortgage insurance incentives for energy efficient housing Sec. 144. Public housing capital fund Sec. 145. Grants for energy-conserving improvements for assisted housing Sec. 146. North American Development Bank Sec. 147. Energy-efficient appliances Sec. 148. Energy efficiency standards Sec. 149. Energy strategy for HUD Title II—Renewable energy Subtitle A—General provisions Sec. 201. Assessment of renewable energy resources Sec. 202. Renewable energy production incentive Sec. 203. Federal purchase requirement Sec. 204. Insular areas energy security Sec. 205. Use of photovoltaic energy in public buildings Sec. 206. Grants to improve the commercial value of forest biomass for electric energy, useful heat, transportation fuels, petroleum-based product substitutes, and other commercial purposes Sec. 207. Biobased products Subtitle B—Geothermal energy Sec. 211. Short title Sec. 212. Competitive lease sale requirements Sec. 213. Direct use Sec. 214. Royalties and near-term production incentives Sec. 215. Geothermal leasing and permitting on Federal lands Sec. 216. Review and report to Congress Sec. 217. Reimbursement for costs of NEPA analyses, documentation, and studies Sec. 218. Assessment of Geothermal energy potential Sec. 219. Cooperative or Unit plans Sec. 220. Royalty on byproducts Sec. 221. Repeal of authorities of Secretary to readjust terms, conditions, rentals, and royalties Sec. 222. Crediting of rental toward royalty Sec. 223. Lease duration and work commitment requirements Sec. 224. Advanced royalties required for suspension of production Sec. 225. Annual rental Sec. 226. Leasing and permitting on Federal lands withdrawn for military purposes Sec. 227. Technical amendments Subtitle C—Hydroelectric Part I—Alternative conditions Sec. 231. Alternative conditions and fishways Part II—Additional hydropower Sec. 241. Hydroelectric production incentives Sec. 242. Hydroelectric efficiency improvement Sec. 243. Small hydroelectric power projects Sec. 244. Increased hydroelectric generation at existing Federal facilities Sec. 245. Shift of project loads to off-peak periods Sec. 246. Corps of Engineers hydropower operation and maintenance funding Sec. 247. Limitation on certain charges assessed to the flint creek project, Montana Sec. 248. Reinstatement and transfer Title III—Oil and gas Subtitle A—Petroleum Reserve and home heating oil Sec. 301. Permanent authority to operate the Strategic Petroleum Reserve and other energy programs Sec. 302. National Oilheat Research Alliance Subtitle B—Production incentives Sec. 311. Definition of Secretary Sec. 312. Program on oil and gas royalties in-kind Sec. 313. Marginal property production incentives Sec. 314. Incentives for natural gas production from deep wells in the shallow waters of the Gulf of Mexico Sec. 315. Royalty Relief for deep water production Sec. 316. Alaska offshore royalty suspension Sec. 317. Oil and gas leasing in the National Petroleum Reserve in Alaska Sec. 318. Orphaned, abandoned, or idled wells on Federal land Sec. 319. Combined hydrocarbon leasing Sec. 320. Liquified natural gas Sec. 321. Alternate energy-related uses on the outer Continental Shelf Sec. 322. Preservation of geological and geophysical data Sec. 323. Oil and gas lease acreage limitations Sec. 324. Assessment of dependence of State of Hawaii on oil Sec. 325. Deadline for decision on appeals of consistency determination under the Coastal Zone Management Act of 1972 Sec. 326. Reimbursement for costs of NEPA analyses, documentation, and studies Sec. 327. Hydraulic fracturing Sec. 328. Oil and gas exploration and production defined Sec. 329. Outer Continental Shelf provisions Sec. 330. Appeals relating to pipeline construction or offshore mineral development projects Sec. 331. Bilateral international oil supply agreements Sec. 332. Natural gas market reform Sec. 333. Natural gas market transparency Subtitle C—Access to Federal land Sec. 341. Office of Federal Energy Project Coordination Sec. 342. Federal onshore oil and gas leasing and permitting practices Sec. 343. Management of Federal oil and gas leasing programs Sec. 344. Consultation regarding oil and gas leasing on public land Sec. 345. Estimates of oil and gas resources underlying onshore Federal land Sec. 346. Compliance with executive order 13211; actions concerning regulations that significantly affect energy supply, distribution, or use Sec. 347. Pilot Project to improve Federal permit coordination Sec. 348. Deadline for consideration of applications for permits Sec. 349. Clarification of fair market rental value determinations for public land and Forest Service rights-of-way Sec. 350. Energy facility rights-of-way and corridors on Federal land Sec. 351. Consultation regarding energy rights-of-way on public land Sec. 352. Renewable energy on Federal land Sec. 353. Electricity transmission line right-of-way, cleveland national forest and adjacent public land, California Sec. 354. Sense of Congress regarding development of MINERALS under Padre Island National Seashore Sec. 355. Encouraging prohibition of off-shore Drilling in the Great Lakes Sec. 356. Finger Lakes National Forest withdrawal Sec. 357. Study on lease exchanges in the rocky mountain front Sec. 358. Federal coalbed methane regulation Sec. 359. Livingston parish mineral rights transfer Subtitle D—Alaska Natural Gas Pipeline Sec. 371. Short title Sec. 372. Definitions Sec. 373. Issuance of certificate of public convenience and necessity Sec. 374. Environmental reviews Sec. 375. Pipeline expansion Sec. 376. Federal Coordinator Sec. 377. Judicial review Sec. 378. State jurisdiction over in-State delivery of natural gas Sec. 379. Study of alternative means of construction Sec. 380. Clarification of angta status and authorities Sec. 381. Sense of Congress concerning use of steel manufactured in North America negotiation of a project labor Agreement Sec. 382. Sense of Congress and study concerning participation by small business concerns Sec. 383. Alaska pipeline construction training Program Sec. 384. Sense of Congress concerning natural gas demand Sec. 385. Sense of Congress concerning Alaskan ownership Sec. 386. Loan guarantees Title IV—Coal Subtitle A—Clean Coal Power Initiative Sec. 401. Authorization of appropriations Sec. 402. Project criteria Sec. 403. Report Sec. 404. Clean coal centers of excellence Subtitle B—Clean Power Projects Sec. 411. Coal technology loan Sec. 412. Coal gasification Sec. 413. Integrated gasification combined cycle technology Sec. 414. Petroleum coke gasification Sec. 415. Integrated coal/renewable energy system Sec. 416. Electron scrubbing demonstration Subtitle C—Federal Coal Leases Sec. 421. Repeal of the 160-acre limitation for coal leases Sec. 422. Mining plans Sec. 423. Payment of advance royalties under coal leases Sec. 424. Elimination of deadline for submission of coal lease operation and reclamation plan Sec. 425. Amendment relating to financial assurances with respect to bonus bids Sec. 426. Inventory requirement Sec. 427. Application of amendments Subtitle D—Coal and related programs Sec. 441. Clean air coal program Title V—Indian energy Sec. 501. Short title Sec. 502. Office of Indian Energy Policy and Programs Sec. 503. Indian energy Sec. 504. Four corners transmission line project Sec. 505. Energy efficiency in federally assisted housing Sec. 506. Consultation with Indian tribes Title VI—Nuclear matters Subtitle A—Price-Anderson Act Amendments Sec. 601. Short title Sec. 602. Extension of indemnification authority Sec. 603. Maximum assessment Sec. 604. Department of energy liability limit Sec. 605. Incidents outside the United States Sec. 606. Reports Sec. 607. Inflation adjustment Sec. 608. Treatment of modular reactors Sec. 609. Applicability Sec. 610. Prohibition on assumption by United States government of liability for certain foreign incidents Sec. 611. Civil penalties Subtitle B—General Nuclear Matters Sec. 621. Licenses Sec. 622. NRC training program Sec. 623. Cost recovery from government agencies Sec. 624. Elimination of pension offset Sec. 625. Antitrust review Sec. 626. Decommissioning Sec. 627. Limitation on legal fee reimbursement Sec. 628. Decommissioning pilot program Sec. 629. Report on feasibility of developing commercial nuclear energy generation facilities at existing Department of Energy sites Sec. 630. Uranium sales Sec. 631. Cooperative research and development and special demonstration projects for the uranium mining industry Sec. 632. Whistleblower protection Sec. 633. Medical isotope production Sec. 634. Fernald byproduct material Sec. 635. Safe disposal of greater-than-class c radioactive waste Sec. 636. Prohibition on nuclear exports to countries that sponsor terrorism Sec. 637. Uranium enrichment facilities Sec. 638. National uranium stockpile Subtitle C—Advanced Reactor Hydrogen Cogeneration Project Sec. 651. Project establishment Sec. 652. Project definition Sec. 653. Project management Sec. 654. Project requirements Sec. 655. Authorization of appropriations Subtitle D—Nuclear Security Sec. 661. Nuclear facility threats Sec. 662. Fingerprinting for criminal history record checks Sec. 663. Use of firearms by security personnel of licensees and certificate holders of the commission Sec. 664. Unauthorized introduction of dangerous weapons Sec. 665. Sabotage of nuclear facilities or fuel Sec. 666. Secure transfer of nuclear materials Sec. 667. Department of homeland security consultation Sec. 668. Authorization of appropriations Title VII—Vehicles and fuels Subtitle A—Existing programs Sec. 701. Use of alternative fuels by dual-fueled vehicles Sec. 702. Neighborhood electric vehicles Sec. 703. Credits for medium and heavy duty dedicated vehicles Sec. 704. Incremental cost allocation Sec. 705. Alternative compliance and flexibility Sec. 706. Review of Energy Policy Act of 1992 programs Sec. 707. Report concerning compliance with alternative fueled vehicle purchasing requirements Subtitle B—Hybrid vehicles, advanced vehicles, and fuel cell buses Part I—Hybrid vehicles Sec. 711. Hybrid vehicles Part II—Advanced vehicles Sec. 721. Definitions Sec. 722. Pilot program Sec. 723. Reports to Congress Sec. 724. Authorization of appropriations Part III—Fuel cell buses Sec. 731. Fuel cell transit bus demonstration Subtitle C—Clean school buses Sec. 741. Definitions Sec. 742. Program for replacement of certain school buses with clean school buses Sec. 743. Diesel retrofit program Sec. 744. Fuel cell school buses Subtitle D—Miscellaneous Sec. 751. Railroad efficiency Sec. 752. Mobile emission reductions trading and crediting Sec. 753. Aviation fuel conservation and emissions Sec. 754. Diesel fueled vehicles Sec. 755. Conserve by Bicycling Program Sec. 756. Reduction of engine idling of heavy-duty vehicles Sec. 757. Biodiesel engine testing program Sec. 758. High occupancy vehicle exception Subtitle E—Automobile efficiency Sec. 771. Authorization of appropriations for implementation and enforcement of fuel economy standards Sec. 772. Revised considerations for decisions on maximum feasible average fuel economy Sec. 773. Extension of maximum fuel economy increase for alternative fueled vehicles Sec. 774. Study of feasibility and effects of reducing use of fuel for automobiles Title VIII—Hydrogen Sec. 801. Definitions Sec. 802. Plan Sec. 803. Programs Sec. 804. Interagency task force Sec. 805. Advisory Committee Sec. 806. External review Sec. 807. Miscellaneous provisions Sec. 808. Savings clause Sec. 809. Authorization of appropriations Title IX—Research and Development Sec. 901. Goals Sec. 902. Definitions Subtitle A—Energy Efficiency Sec. 904. Energy efficiency Sec. 905. Next generation lighting initiative Sec. 906. National building performance initiative Sec. 907. Secondary electric vehicle battery use program Sec. 908. Energy efficiency science initiative Sec. 909. Electric motor control technology Sec. 910. Advanced energy technology transfer centers Subtitle B—Distributed Energy and Electric Energy Systems Sec. 911. Distributed energy and electric energy systems Sec. 912. Hybrid distributed power systems Sec. 913. High power density industry program Sec. 914. Micro-cogeneration energy technology Sec. 915. Distributed energy technology demonstration program Sec. 916. Reciprocating power Subtitle C—Renewable energy Sec. 918. Renewable energy Sec. 919. Bioenergy programs Sec. 920. Concentrating solar power research and development Program Sec. 921. Miscellaneous projects Sec. 922. Renewable energy in public buildings Sec. 923. Study of marine renewable energy options Subtitle D—Nuclear energy Sec. 924. Nuclear energy Sec. 925. Nuclear energy research and development programs Sec. 926. Advanced fuel cycle Initiative Sec. 927. University nuclear science and engineering support Sec. 928. Security of reactor designs Sec. 929. Alternatives to industrial radioactive sources Sec. 930. Geological isolation of spent fuel Subtitle E—Fossil energy Part I—Research programs Sec. 931. Fossil energy Sec. 932. Oil and gas research programs Sec. 933. Technology transfer Sec. 934. Research and development for coal mining technologies Sec. 935. Coal and related technologies Program Sec. 936. Complex Well Technology Testing Facility Sec. 937. Fischer-Tropsch diesel fuel loan guarantee Program Part II—Ultra-deepwater and unconventional natural gas and other petroleum resources Sec. 941. Program authority Sec. 942. Ultra-deepwater Program Sec. 943. Unconventional natural gas and other petroleum resources Program Sec. 944. Additional requirements for awards Sec. 945. Advisory committees Sec. 946. Limits on participation Sec. 947. Sunset Sec. 948. Definitions Sec. 949. Funding Subtitle F—Science Sec. 951. Science Sec. 952. United States participation in ITER Sec. 953. Plan for Fusion Energy Sciences Program Sec. 954. Spallation Neutron Source Sec. 955. Support for science and energy facilities and infrastructure Sec. 956. Catalysis Research and development Program Sec. 957. Nanoscale Science and Engineering Research, development, demonstration, and commercial application Sec. 958. Advanced scientific computing for energy missions Sec. 959. Genomes to Life Program Sec. 960. Fission and fusion energy materials research Program Sec. 961. Energy-Water Supply Program Sec. 962. Nitrogen fixation Subtitle G—Energy and environment Sec. 964. United States-Mexico energy Technology cooperation Sec. 965. Western Hemisphere energy cooperation Sec. 966. Waste reduction and use of alternatives Sec. 967. Report on fuel cell test Center Sec. 968. Arctic Engineering Research Center Sec. 969. Barrow Geophysical Research Facility Sec. 970. Western Michigan demonstration project Subtitle H—Management Sec. 971. Availability of funds Sec. 972. Cost sharing Sec. 973. Merit review of proposals Sec. 974. External technical review of departmental programs Sec. 975. Improved coordination of Technology transfer activities Sec. 976. Federal laboratory educational partners Sec. 977. Interagency cooperation Sec. 978. Technology Infrastructure Program Sec. 979. Reprogramming Sec. 980. Construction with other laws Sec. 981. Report on research and development Program evaluation methodologies Sec. 982. Department of Energy Science and Technology Scholarship Program Sec. 983. Report on equal employment opportunity practices Sec. 984. Small business advocacy and assistance Sec. 985. Report on mobility of scientific and technical personnel Sec. 986. National Academy of Sciences report Sec. 987. Outreach Sec. 988. Competitive award of management contracts Sec. 989. Educational programs in science and mathematics Title X—Department of energy management Sec. 1001. Additional Assistant Secretary position Sec. 1002. Other transactions authority Title XI—Personnel and training Sec. 1101. Training guidelines for electric energy industry personnel Sec. 1102. Improved access to energy-related scientific and technical careers Sec. 1103. National Power Plant Operations Technology and Education Center Sec. 1104. International energy training Title XII—Electricity Sec. 1201. Short title Subtitle A—Reliability standards Sec. 1211. Electric reliability standards Subtitle B—Transmission infrastructure modernization Sec. 1221. Siting of interstate electric transmission facilities Sec. 1222. Third-party finance Sec. 1223. Transmission system monitoring Sec. 1224. Advanced transmission technologies Sec. 1225. Electric transmission and distribution programs Sec. 1226. Advanced Power System Technology Incentive Program Sec. 1227. Office of Electric Transmission and Distribution Subtitle C—Transmission operation improvements Sec. 1231. Open nondiscriminatory access Sec. 1232. Sense of Congress on Regional Transmission Organizations Sec. 1233. Regional Transmission Organization applications progress report Sec. 1234. Federal utility participation in Regional Transmission Organizations Sec. 1235. Standard market design Sec. 1236. Native load service obligation Sec. 1237. Study on the benefits of economic dispatch Subtitle D—Transmission rate reform Sec. 1241. Transmission infrastructure investment Sec. 1242. Voluntary transmission pricing plans Subtitle E—Amendments to PURPA Sec. 1251. Net metering and additional standards Sec. 1252. Smart metering Sec. 1253. Cogeneration and small power production purchase and sale requirements Subtitle F—Repeal of PUHCA Sec. 1261. Short title Sec. 1262. Definitions Sec. 1263. Repeal of the Public Utility Holding Company Act of 1935 Sec. 1264. Federal access to books and records Sec. 1265. State access to books and records Sec. 1266. Exemption authority Sec. 1267. Affiliate transactions Sec. 1268. Applicability Sec. 1269. Effect on other regulations Sec. 1270. Enforcement Sec. 1271. Savings provisions Sec. 1272. Implementation Sec. 1273. Transfer of resources Sec. 1274. Effective date Sec. 1275. Service allocation Sec. 1276. Authorization of appropriations Sec. 1277. Conforming amendments to the Federal Power Act Subtitle G—Market transparency, enforcement, and consumer protection Sec. 1281. Market transparency rules Sec. 1282. Market manipulation Sec. 1283. Enforcement Sec. 1284. Refund effective date Sec. 1285. Refund authority Sec. 1286. Sanctity of contract Sec. 1287. Consumer privacy and unfair trade practices Subtitle H—Merger reform Sec. 1291. Merger review reform and accountability Sec. 1292. Electric utility mergers Subtitle I—Definitions Sec. 1295. Definitions Subtitle J—Technical and conforming amendments Sec. 1297. Conforming amendments Title XIII—Energy tax incentives Sec. 1300. Short title; amendment of 1986 Code Subtitle A—Conservation Part I—Residential and business property Sec. 1301. Credit for residential energy efficient property Sec. 1302. Extension and expansion of credit for electricity produced from certain renewable resources Sec. 1303. Credit for business installation of qualified fuel cells Sec. 1304. Credit for energy efficiency improvements to existing homes Sec. 1305. Credit for construction of new energy efficient homes Sec. 1306. Energy credit for combined heat and power system property Sec. 1307. Credit for energy efficient appliances Sec. 1308. Energy efficient commercial buildings deduction Sec. 1309. Three-year applicable recovery period for depreciation of qualified energy management devices Sec. 1310. Credit for production from advanced nuclear power facilities Part II—Fuels and alternative motor vehicles Sec. 1311. Repeal of 4.3-cent motor fuel excise taxes on railroads and inland waterway transportation which remain in general Fund Sec. 1312. Reduced motor fuel excise tax on certain mixtures of diesel fuel Sec. 1313. Small ethanol producer credit Sec. 1314. Incentives for biodiesel Sec. 1315. Alcohol fuel and biodiesel mixtures excise tax credit Sec. 1316. Nonapplication of export exemption to delivery of fuel to motor vehicles removed from United States Sec. 1317. Repeal of phaseouts for qualified electric vehicle credit and deduction for clean fuel-vehicles Sec. 1318. Alternative motor vehicle credit Sec. 1319. Modifications of deduction for certain refueling property Subtitle B—Reliability Sec. 1321. Natural gas gathering lines treated as 7-YEAR property Sec. 1322. Natural gas distribution lines treated as 15-year property Sec. 1323. Electric transmission property treated as 15-year property Sec. 1324. Expensing of capital costs incurred in complying with Environmental Protection Agency sulfur regulations Sec. 1325. Credit for production of low sulfur diesel fuel Sec. 1326. Determination of small refiner exception to oil depletion deduction Sec. 1327. Sales or dispositions to implement Federal Energy Regulatory Commission or State electric restructuring policy Sec. 1328. Modifications to special rules for nuclear decommissioning costs Sec. 1329. Treatment of certain income of cooperatives Sec. 1330. Arbitrage rules not to apply to prepayments for natural gas Subtitle C—Production Part I—Oil and gas provisions Sec. 1341. Oil and gas from marginal wells Sec. 1342. Temporary suspension of limitation based on 65 percent of taxable income and extension of suspension of taxable income limit with respect to marginal production Sec. 1343. Amortization of delay rental payments Sec. 1344. Amortization of geological and geophysical expenditures Sec. 1345. Extension and modification of credit for producing fuel from a nonconventional source Part II—Alternative minimum tax provisions Sec. 1346. New nonrefundable personal credits allowed against regular and minimum taxes Sec. 1347. Business related energy credits allowed against regular and minimum tax Sec. 1348. Temporary repeal of alternative minimum tax preference for intangible drilling costs Part III—Clean coal incentives Sec. 1351. Credit for clean coal technology units Sec. 1352. Expansion of amortization for certain pollution control facilities Sec. 1353. 5-year recovery period for eligible integrated gasification combined cycle technology unit eligible for credit Part IV—High volume natural gas provisions Sec. 1355. High volume natural gas pipe treated as 7-year property Sec. 1356. Extension of enhanced oil recovery credit to high volume natural gas facilities Subtitle D—Additional provisions Sec. 1361. Extension of accelerated depreciation benefit for energy-related businesses on indian reservations Sec. 1362. Payment of dividends on stock of cooperatives without reducing patronage dividends Sec. 1363. Distributions from publicly traded partnerships treated as qualifying income of regulated investment companies Sec. 1364. Ceiling fans Sec. 1365. Certain steam generators, and certain reactor vessel heads, used in nuclear facilities Sec. 1366. Brownfields demonstration program for qualified green building and sustainable design projects Title XIV—Miscellaneous Subtitle A—Rural and Remote Electricity Construction Sec. 1401. Denali Commission programs Sec. 1402. Rural and remote community assistance Subtitle B—Coastal programs Sec. 1411. Royalty payments under leases under the Outer Continental Shelf Lands Act Sec. 1412. Domestic offshore energy reinvestment Subtitle C—Reforms to the Board of Directors of the Tennessee Valley Authority Sec. 1431. Change in composition, operation, and duties of the Board of Directors of the Tennessee Valley Authority Sec. 1432. Change in manner of appointment of staff Sec. 1433. Conforming amendments Sec. 1434. Appointments; effective date; transition Subtitle D—Other provisions Sec. 1441. Continuation of transmission security order Sec. 1442. Review of agency determinations Sec. 1443. Attainment dates for downwind ozone nonattainment areas Sec. 1444. Energy production incentives Sec. 1445. Use of granular mine tailings Title XV—Ethanol and motor fuels Subtitle A—General provisions Sec. 1501. Renewable content of motor vehicle fuel Sec. 1502. Fuels safe harbor Sec. 1503. Findings and MTBE transition assistance Sec. 1504. Use of MTBE Sec. 1505. National Academy of Sciences review and presidential determination Sec. 1506. Elimination of oxygen content requirement for reformulated gasoline Sec. 1507. Analyses of motor vehicle fuel changes Sec. 1508. Data collection Sec. 1509. Reducing the proliferation of State fuel controls Sec. 1510. Fuel system requirements harmonization study Sec. 1511. Commercial byproducts from municipal solid waste and cellulosic biomass loan guarantee program Sec. 1512. Resource Center Sec. 1513. Cellulosic biomass and waste-derived ethanol conversion assistance Sec. 1514. Blending of compliant reformulated gasolines Subtitle B—Underground storage tank compliance Sec. 1521. Short title Sec. 1522. Leaking underground storage tanks Sec. 1523. Inspection of underground storage tanks Sec. 1524. Operator training Sec. 1525. Remediation from oxygenated fuel additives Sec. 1526. Release prevention, compliance, and enforcement Sec. 1527. Delivery prohibition Sec. 1528. Federal facilities Sec. 1529. Tanks on Tribal lands Sec. 1530. Future release containment technology Sec. 1531. Authorization of appropriations Sec. 1532. Conforming amendments Sec. 1533. Technical amendments Title XVI—Studies Sec. 1601. Study on inventory of petroleum and natural gas storage Sec. 1602. Natural gas supply shortage report Sec. 1603. Split-estate Federal oil and gas leasing and development practices Sec. 1604. Resolution of Federal resource development conflicts in the Powder River Basin Sec. 1605. Study of energy efficiency standards Sec. 1606. Telecommuting study Sec. 1607. Liheap report Sec. 1608. Oil bypass filtration technology Sec. 1609. Total integrated thermal systems Sec. 1610. University collaboration Sec. 1611. Reliability and consumer protection assessment
<enum>I</enum><header>Energy efficiency</header> <subtitle id="HCED2FC8D667A4D54807C6195F8A7DA37"><enum>A</enum><header>Federal programs</header> <section id="H2B3C9214F18E4912A1F9373D10E556E4" section-type="subsequent-section"><enum>101.</enum><header>Energy and water saving measures in congressional buildings</header> <subsection id="HB8136F42EBE5478C831698E8D4B2B94E"><enum>(a)</enum><header>In general</header><text>Part 3 of title V of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8251">42 U.S.C. 8251 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block act-name="National Energy Conservation Policy Act" id="H3A97CAABA4BC488BA5CF183EC7523B27"> <section id="H72C291BE9F8C41B59B8E365C32F78B59"><enum>552.</enum><header>Energy and water savings measures in congressional buildings</header> <subsection id="H429B978BF0974AAD944658166E4B4764"><enum>(a)</enum><header>In general</header><text>The Architect of the Capitol—</text> <paragraph id="H0B24ACF9C57643AD9E4C00E15000F3D"><enum>(1)</enum><text>shall develop, update, and implement a cost-effective energy conservation and management plan (referred to in this section as the <quote>plan</quote>) for all facilities administered by Congress (referred to in this section as <quote>congressional buildings</quote>) to meet the energy performance requirements for Federal buildings established under section 543(a)(1); and</text></paragraph> <paragraph id="H36DE5B7414D84BDABEFEF66DF5B33D85"><enum>(2)</enum><text>shall submit the plan to Congress, not later than 180 days after the date of enactment of this section.</text></paragraph></subsection> <subsection id="H8E4868429673454A90B116B24F540426"><enum>(b)</enum><header>Plan requirements</header><text>The plan shall include—</text> <paragraph id="HEADB7B85999348FD8BABFCDE42593FD3"><enum>(1)</enum><text>a description of the life cycle cost analysis used to determine the cost-effectiveness of proposed energy efficiency projects;</text></paragraph> <paragraph id="H035AEC8601644822B3C99B7C6CB26900"><enum>(2)</enum><text>a schedule of energy surveys to ensure complete surveys of all congressional buildings every 5 years to determine the cost and payback period of energy and water conservation measures;</text></paragraph> <paragraph id="H678C8B88930B49AF99B416C861AE9159"><enum>(3)</enum><text>a strategy for installation of life cycle cost-effective energy and water conservation measures;</text></paragraph> <paragraph id="HA02BD905767C4DA6B3E55E41E900E027"><enum>(4)</enum><text>the results of a study of the costs and benefits of installation of submetering in congressional buildings; and</text></paragraph> <paragraph id="HA8D8EFA6008A4834BB4FF00032EF73F1"><enum>(5)</enum><text>information packages and <quote>how-to</quote> guides for each Member and employing authority of Congress that detail simple, cost-effective methods to save energy and taxpayer dollars in the workplace.</text></paragraph></subsection> <subsection id="H46A89465FC5C4CC7B1FA5195C5C848"><enum>(c)</enum><header>Annual report</header><text>The Architect of the Capitol shall submit to Congress annually a report on congressional energy management and conservation programs required under this section that describes in detail—</text> <paragraph id="H1658018BCC0D4EE4A0F7D58D23C1FA6C"><enum>(1)</enum><text>energy expenditures and savings estimates for each facility;</text></paragraph> <paragraph id="H974FE28490E340D5B43EBC7D3EDA17D5"><enum>(2)</enum><text>energy management and conservation projects; and</text></paragraph> <paragraph id="HD9DAB99BA9144D63BBF871B62FBBF2D4"><enum>(3)</enum><text>future priorities to ensure compliance with this section.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H7E1A18DE377A48B0AAD78CD3FD5497F"><enum>(b)</enum><header>Table of contents amendment</header><text>The table of contents of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> is amended by adding at the end of the items relating to part 3 of title V the following new item:</text> <quoted-block style="OLC" act-name="National Energy Conservation Policy Act" id="H454EBC97A27C41EA8540483EBBEC34D4"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 552. Energy and water savings measures in congressional buildings</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H901B79DB09F1446FB400754729387D79"><enum>(c)</enum><header>Repeal</header><text>Section 310 of the Legislative Branch Appropriations Act, 1999 (<external-xref legal-doc="usc" parsable-cite="usc/2/1815">2 U.S.C. 1815</external-xref>), is repealed.</text></subsection> <subsection id="HCB6F09FF99BF40959C004F8FD1CD9E06"><enum>(d)</enum><header>Energy infrastructure</header><text>The Architect of the Capitol, building on the Master Plan Study completed in July 2000, shall commission a study to evaluate the energy infrastructure of the Capital Complex to determine how the infrastructure could be augmented to become more energy efficient, using unconventional and renewable energy resources, in a way that would enable the Complex to have reliable utility service in the event of power fluctuations, shortages, or outages.</text></subsection> <subsection id="HF4EEA5B40DA14E4BB9F09FC6DDFEED86"><enum>(e)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Architect of the Capitol to carry out subsection (d), $2,000,000 for each of fiscal years 2004 through 2008.</text></subsection></section> <section id="H7BACF6B9227847E1A84F687833B34CAA"><enum>102.</enum><header>Energy management requirements</header> <subsection id="H42F2797B84C24327A1DC1E2F3C6FBFF1"><enum>(a)</enum><header>Energy reduction goals</header> <paragraph id="H389D5D3B057A4748007F9C5689E5002D"><enum>(1)</enum><header>Amendment</header><text>Section 543(a)(1) of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8253">42 U.S.C. 8253(a)(1)</external-xref>) is amended by striking <quote>its Federal buildings so that</quote> and all that follows through the end and inserting </text> <quoted-block style="OLC" id="HDD9176A7C7C94A769E4BD3FC19DA418D" display-inline="yes-display-inline"><text display-inline="yes-display-inline">the Federal buildings of the agency (including each industrial or laboratory facility) so that the energy consumption per gross square foot of the Federal buildings of the agency in fiscal years 2004 through 2013 is reduced, as compared with the energy consumption per gross square foot of the Federal buildings of the agency in fiscal year 2001, by the percentage specified in the following table:</text> <table table-type="subformat-2-Flush-Right-Boxhead-Fig" align-to-level="section" frame="none" line-rules="no-gen" rule-weights="0.0.0.4.0.0" subformat="S6211" blank-lines-before="1"> <tgroup cols="2"><colspec colname="col1" coldef="txt" min-data-value="0" colwidth="275" colsep="0"/><colspec colname="col2" coldef="txt" min-data-value="0" colwidth="80" colsep="0"/><thead> <row><entry colname="I49" align="left" rowsep="0"></entry><entry colname="I50" align="right" rowsep="0"></entry></row> <row><entry colname="I49" align="left" rowsep="0"><bold>Fiscal Year</bold></entry><entry colname="I50" align="right" rowsep="0"><bold>Percentage reduction</bold></entry></row></thead> <tbody> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2004</entry><entry colname="I07" align="right" rowsep="0">2</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2005</entry><entry colname="I07" align="right" rowsep="0">4</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2006</entry><entry colname="I07" align="right" rowsep="0">6</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2007</entry><entry colname="I07" align="right" rowsep="0">8</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2008</entry><entry colname="I07" align="right" rowsep="0">10</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2009</entry><entry colname="I07" align="right" rowsep="0">12</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2010</entry><entry colname="I07" align="right" rowsep="0">14</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2011</entry><entry colname="I07" align="right" rowsep="0">16</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2012</entry><entry colname="I07" align="right" rowsep="0">18</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">2013</entry><entry colname="I07" align="right" rowsep="0">20.</entry></row></tbody></tgroup></table><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H5825A2A826E1458E846EAF97513FC2F3"><enum>(2)</enum><header>Reporting baseline</header><text>The energy reduction goals and baseline established in paragraph (1) of section 543(a) of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8253">42 U.S.C. 8253(a)(1)</external-xref>), as amended by this subsection, supersede all previous goals and baselines under such paragraph, and related reporting requirements.</text></paragraph></subsection> <subsection id="HBD03D9816EE34D32B934FC34A9B9BD00"><enum>(b)</enum><header>Review and revision of energy performance requirement</header><text>Section 543(a) of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8253">42 U.S.C. 8253(a)</external-xref>) is further amended by adding at the end the following:</text> <quoted-block style="OLC" id="H4AE4B4F90FD24468A29918CAEA7470B5" display-inline="no-display-inline"> <paragraph id="H37A762C059174C508E9CC78E4B7C721C" indent="up1"><enum>(3)</enum><text>Not later than December 31, 2012, the Secretary shall review the results of the implementation of the energy performance requirement established under paragraph (1) and submit to Congress recommendations concerning energy performance requirements for fiscal years 2014 through 2023.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HD3A20787A6264E1B9039BC63109CBEC"><enum>(c)</enum><header>Exclusions</header><text>Section 543(c)(1) of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8253">42 U.S.C. 8253(c)(1)</external-xref>) is amended by striking <quote>An agency may exclude</quote> and all that follows through the end and inserting</text> <quoted-block style="OLC" id="HBFE786401E2D43B9002802E842700034" display-inline="yes-display-inline"><text display-inline="yes-display-inline">(A) An agency may exclude, from the energy performance requirement for a fiscal year established under subsection (a) and the energy management requirement established under subsection (b), any Federal building or collection of Federal buildings, if the head of the agency finds that—</text> <clause id="HD4CF2CDA854F43C1AD5243BE13100803" indent="up2"><enum>(i)</enum><text>compliance with those requirements would be impracticable;</text></clause> <clause id="H5AFA403EA6C6427CAA225E67D6533350" indent="up2"><enum>(ii)</enum><text>the agency has completed and submitted all federally required energy management reports;</text></clause> <clause id="HB024075BE81849E2AEAC735CB864F640" indent="up2"><enum>(iii)</enum><text>the agency has achieved compliance with the energy efficiency requirements of this Act, the Energy Policy Act of 1992, Executive orders, and other Federal law; and</text></clause> <clause id="HE28C148F408240F582172B0077E135FF" indent="up2"><enum>(iv)</enum><text>the agency has implemented all practicable, life cycle cost-effective projects with respect to the Federal building or collection of Federal buildings to be excluded.</text></clause> <subparagraph indent="up2" id="H8F6790A5B89E4A92BA8991D2EC489413"><enum>(B)</enum><text>A finding of impracticability under subparagraph (A)(i) shall be based on—</text> <clause id="HE64C2539AAC64A8FAC86F5B55E67C934"><enum>(i)</enum><text>the energy intensiveness of activities carried out in the Federal building or collection of Federal buildings; or</text></clause> <clause id="HF51F981DEFA5433EB01CC205BB8E6B23"><enum>(ii)</enum><text>the fact that the Federal building or collection of Federal buildings is used in the performance of a national security function.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H5EF32EBA6C0048648C508D0085F9A5C5"><enum>(d)</enum><header>Review by Secretary</header><text>Section 543(c)(2) of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8253">42 U.S.C. 8253(c)(2)</external-xref>) is amended—</text> <paragraph id="H7777DBFDF66D43EF90094D3734356E00"><enum>(1)</enum><text>by striking <quote>impracticability standards</quote> and inserting <quote>standards for exclusion</quote>;</text></paragraph> <paragraph id="H3C3267E4A59D4D30A98E58C02D1C3DEF"><enum>(2)</enum><text>by striking <quote>a finding of impracticability</quote> and inserting <quote>the exclusion</quote>; and</text></paragraph> <paragraph id="H5FB1D3AFF40F48C69C2C59870688B599"><enum>(3)</enum><text>by striking <quote>energy consumption requirements</quote> and inserting <quote>requirements of subsections (a) and (b)(1)</quote>.</text></paragraph></subsection> <subsection id="HC86EA95F4826477D9FC1E355C5110998"><enum>(e)</enum><header>Criteria</header><text>Section 543(c) of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8253">42 U.S.C. 8253(c)</external-xref>) is further amended by adding at the end the following:</text> <quoted-block act-name="National Energy Conservation Policy Act" id="HA3250EC9717545D9A329CFBD847238CD"> <paragraph indent="up1" id="HA734D8F602C54B92A0B74FD3E4FE3FE5"><enum>(3)</enum><text>Not later than 180 days after the date of enactment of this paragraph, the Secretary shall issue guidelines that establish criteria for exclusions under paragraph (1).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HDDC5B4D8BAFD4AD48888D23C009E87B6"><enum>(f)</enum><header>Retention of energy and water savings</header><text>Section 546 of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8256">42 U.S.C. 8256</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block act-name="National Energy Conservation Policy Act" id="HA08B0FB79925499882D462B20080E681"> <subsection id="HCB12F686FEA04BD298AF38EC19752100"><enum>(e)</enum><header>Retention of energy and water savings</header><text>An agency may retain any funds appropriated to that agency for energy expenditures, water expenditures, or wastewater treatment expenditures, at buildings subject to the requirements of section 543(a) and (b), that are not made because of energy savings or water savings. Except as otherwise provided by law, such funds may be used only for energy efficiency, water conservation, or unconventional and renewable energy resources projects.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HCB2BD0F483FB4170B288EB8885FDAF98"><enum>(g)</enum><header>Reports</header><text>Section 548(b) of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8258">42 U.S.C. 8258(b)</external-xref>) is amended—</text> <paragraph id="H3B41418F85844B38961E9200A5C6CE69"><enum>(1)</enum><text>in the subsection heading, by inserting <quote><header-in-text level="subsection">the President and</header-in-text></quote> before <quote><header-in-text level="subsection">Congress</header-in-text></quote>; and</text></paragraph> <paragraph id="H8A3E796A86174B598E409B32679FC08D"><enum>(2)</enum><text>by inserting <quote>President and</quote> before <quote>Congress</quote>.</text></paragraph></subsection> <subsection id="HB747A73FE2D740349B08906C699C094C"><enum>(h)</enum><header>Conforming amendment</header><text>Section 550(d) of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8258b">42 U.S.C. 8258b(d)</external-xref>) is amended in the second sentence by striking <quote>the 20 percent reduction goal established under section 543(a) of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8253">42 U.S.C. 8253(a)</external-xref>).</quote> and inserting <quote>each of the energy reduction goals established under section 543(a).</quote>.</text></subsection></section> <section id="H17CEB19579654D20B0EAA5944C006E18"><enum>103.</enum><header>Energy use measurement and accountability</header><text display-inline="no-display-inline">Section 543 of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8253">42 U.S.C. 8253</external-xref>) is further amended by adding at the end the following:</text> <quoted-block act-name="National Energy Conservation Policy Act" id="H2234535D8E8B4F4D83E82E8FB7E92696"> <subsection id="HB05A32BEFB7B49A69563D9A0000080A2"><enum>(e)</enum><header>Metering of energy use</header> <paragraph id="H5E7B42D23E3F4B1DBE27132560C7B1B1"><enum>(1)</enum><header>Deadline</header><text>By October 1, 2010, in accordance with guidelines established by the Secretary under paragraph (2), all Federal buildings shall, for the purposes of efficient use of energy and reduction in the cost of electricity used in such buildings, be metered or submetered. Each agency shall use, to the maximum extent practicable, advanced meters or advanced metering devices that provide data at least daily and that measure at least hourly consumption of electricity in the Federal buildings of the agency. Such data shall be incorporated into existing Federal energy tracking systems and made available to Federal facility energy managers.</text></paragraph> <paragraph id="HB254F2ED03F048259106E7BF6702E6B"><enum>(2)</enum><header>Guidelines</header> <subparagraph id="H90F081874741485BAFED51DBB51935C2"><enum>(A)</enum><header>In general</header><text>Not later than 180 days after the date of enactment of this subsection, the Secretary, in consultation with the Department of Defense, the General Services Administration, representatives from the metering industry, utility industry, energy services industry, energy efficiency industry, energy efficiency advocacy organizations, national laboratories, universities, and Federal facility energy managers, shall establish guidelines for agencies to carry out paragraph (1).</text></subparagraph> <subparagraph id="H3C684811C01F42D19B5C9C22C96C4200"><enum>(B)</enum><header>Requirements for guidelines</header><text>The guidelines shall—</text> <clause id="HFDE38EAD50A74F9380C3065000B7B313"><enum>(i)</enum><text>take into consideration—</text> <subclause id="HC23E63E0514C4770ABABB270FA227B90"><enum>(I)</enum><text>the cost of metering and submetering and the reduced cost of operation and maintenance expected to result from metering and submetering;</text></subclause> <subclause id="HD374F01AD652403EBA2259F900DC95B1"><enum>(II)</enum><text>the extent to which metering and submetering are expected to result in increased potential for energy management, increased potential for energy savings and energy efficiency improvement, and cost and energy savings due to utility contract aggregation; and</text></subclause> <subclause id="H0D601B54F8334D0B99EAFEA008F5178C"><enum>(III)</enum><text>the measurement and verification protocols of the Department of Energy;</text></subclause></clause> <clause id="H03F449F89DD44932AEEACF3F03A7F800"><enum>(ii)</enum><text>include recommendations concerning the amount of funds and the number of trained personnel necessary to gather and use the metering information to track and reduce energy use;</text></clause> <clause id="H84BF3B0F1DB248CE936782E16DD75EF6"><enum>(iii)</enum><text>establish priorities for types and locations of buildings to be metered and submetered based on cost-effectiveness and a schedule of 1 or more dates, not later than 1 year after the date of issuance of the guidelines, on which the requirements specified in paragraph (1) shall take effect; and</text></clause> <clause id="HE5B7E54220834EE38BFAD619F953BA01"><enum>(iv)</enum><text>establish exclusions from the requirements specified in paragraph (1) based on the de minimis quantity of energy use of a Federal building, industrial process, or structure.</text></clause></subparagraph></paragraph> <paragraph id="HA0B96293847B45CDB9D8B1B2AF7D5BA8"><enum>(3)</enum><header>Plan</header><text>Not later than 6 months after the date guidelines are established under paragraph (2), in a report submitted by the agency under section 548(a), each agency shall submit to the Secretary a plan describing how the agency will implement the requirements of paragraph (1), including (A) how the agency will designate personnel primarily responsible for achieving the requirements and (B) demonstration by the agency, complete with documentation, of any finding that advanced meters or advanced metering devices, as defined in paragraph (1), are not practicable.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H81E52E94022A41EBBD816B620050446B"><enum>104.</enum><header>Procurement of energy efficient products</header> <subsection id="H59F80BACCC2D490CA500070293093378"><enum>(a)</enum><header>Requirements</header><text>Part 3 of title V of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8251">42 U.S.C. 8251 et seq.</external-xref>), as amended by section 101, is amended by adding at the end the following:</text> <quoted-block act-name="National Energy Conservation Policy Act" id="H5C1035FFC2C64203814353FA4F35EB37"> <section id="H0C9635950FB54BC5AFFAEBFB45A48F61"><enum>553.</enum><header>Federal procurement of energy efficient products</header> <subsection id="H05517F4837504D7DAA2EDAEA748DCE9E"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HA4458C55E05A472A9BAA9460D39E05D6"><enum>(1)</enum><header>Energy Star product</header><text>The term <term>Energy Star product</term> means a product that is rated for energy efficiency under an Energy Star program.</text></paragraph> <paragraph id="HD676300A52CF498E9DECBB44FF4F4C2"><enum>(2)</enum><header>Energy Star Program</header><text>The term <term>Energy Star program</term> means the program established by section 324A of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name>.</text></paragraph> <paragraph id="H32938C6640B74D2C85B3A7C38728CBB8"><enum>(3)</enum><header>Executive Agency</header><text>The term <term>executive agency</term> has the meaning given the term in section 4 of the Office of Federal Procurement Policy Act (<external-xref legal-doc="usc" parsable-cite="usc/41/403">41 U.S.C. 403</external-xref>).</text></paragraph> <paragraph id="H722E5896E1884EA7981D81C0D0E4BCB0"><enum>(4)</enum><header>FEMP designated product</header><text>The term <term>FEMP designated product</term> means a product that is designated under the Federal Energy Management Program of the Department of Energy as being among the highest 25 percent of equivalent products for energy efficiency.</text></paragraph></subsection> <subsection id="H199F9E7428054FBBA6631327A2591CC0"><enum>(b)</enum><header>Procurement of energy efficient products</header> <paragraph id="H1215BC62D7C8458D87D9778833C174BF"><enum>(1)</enum><header>Requirement</header><text>To meet the requirements of an executive agency for an energy consuming product, the head of the executive agency shall, except as provided in paragraph (2), procure—</text> <subparagraph id="HC32A3950D6E049AC986C49513EDBA61F"><enum>(A)</enum><text>an Energy Star product; or</text></subparagraph> <subparagraph id="HC637A12ED6CB4E439293007F31708816"><enum>(B)</enum><text>a FEMP designated product.</text></subparagraph></paragraph> <paragraph id="H2FDF26593CC346988E00B51E6F9C760"><enum>(2)</enum><header>Exceptions</header><text>The head of an executive agency is not required to procure an Energy Star product or FEMP designated product under paragraph (1) if the head of the executive agency finds in writing that—</text> <subparagraph id="HE024C5A2BC794E99BA251E47505D16F8"><enum>(A)</enum><text>an Energy Star product or FEMP designated product is not cost-effective over the life of the product taking energy cost savings into account; or</text></subparagraph> <subparagraph id="HDE303746AC144273B751A76342E60184"><enum>(B)</enum><text>no Energy Star product or FEMP designated product is reasonably available that meets the functional requirements of the executive agency.</text></subparagraph></paragraph> <paragraph id="HB46624B4510445A58884E9132FC22C9F"><enum>(3)</enum><header>Procurement planning</header><text>The head of an executive agency shall incorporate into the specifications for all procurements involving energy consuming products and systems, including guide specifications, project specifications, and construction, renovation, and services contracts that include provision of energy consuming products and systems, and into the factors for the evaluation of offers received for the procurement, criteria for energy efficiency that are consistent with the criteria used for rating Energy Star products and for rating FEMP designated products.</text></paragraph></subsection> <subsection id="H8BA9FB6336F446BDB7127D914D279DEB"><enum>(c)</enum><header>Listing of energy efficient products in Federal catalogs</header><text>Energy Star products and FEMP designated products shall be clearly identified and prominently displayed in any inventory or listing of products by the General Services Administration or the Defense Logistics Agency. The General Services Administration or the Defense Logistics Agency shall supply only Energy Star products or FEMP designated products for all product categories covered by the Energy Star program or the Federal Energy Management Program, except in cases where the agency ordering a product specifies in writing that no Energy Star product or FEMP designated product is available to meet the buyer’s functional requirements, or that no Energy Star product or FEMP designated product is cost-effective for the intended application over the life of the product, taking energy cost savings into account.</text></subsection> <subsection id="H674F7F3E80B84531008E2EA8D7AC7687"><enum>(d)</enum><header>Specific products</header> <paragraph display-inline="yes-display-inline" id="H290321E16B054CDDB1EEA56FE5EE036D"><enum>(1)</enum><text>In the case of electric motors of 1 to 500 horsepower, agencies shall select only premium efficient motors that meet a standard designated by the Secretary. The Secretary shall designate such a standard not later than 120 days after the date of the enactment of this section, after considering the recommendations of associated electric motor manufacturers and energy efficiency groups.</text></paragraph> <paragraph indent="up1" id="H8044DC385A6C4F75BF46936EFD05ACB5"><enum>(2)</enum><text>All Federal agencies are encouraged to take actions to maximize the efficiency of air conditioning and refrigeration equipment, including appropriate cleaning and maintenance, including the use of any system treatment or additive that will reduce the electricity consumed by air conditioning and refrigeration equipment. Any such treatment or additive must be—</text> <subparagraph id="HBE253E78174244DDB328B300D3FA7D93"><enum>(A)</enum><text>determined by the Secretary to be effective in increasing the efficiency of air conditioning and refrigeration equipment without having an adverse impact on air conditioning performance (including cooling capacity) or equipment useful life;</text></subparagraph> <subparagraph id="H0266447548554D168CD0F3CB45419D5D"><enum>(B)</enum><text>determined by the Administrator of the Environmental Protection Agency to be environmentally safe; and</text></subparagraph> <subparagraph id="HD8040A5AF19D4DC800A9388EE5EB686D"><enum>(C)</enum><text>shown to increase seasonal energy efficiency ratio (SEER) or energy efficiency ratio (EER) when tested by the National Institute of Standards and Technology according to Department of Energy test procedures without causing any adverse impact on the system, system components, the refrigerant or lubricant, or other materials in the system.</text></subparagraph></paragraph><continuation-text continuation-text-level="subsection">Results of testing described in subparagraph (C) shall be published in the Federal Register for public review and comment. For purposes of this section, a hardware device or primary refrigerant shall not be considered an additive.</continuation-text></subsection> <subsection id="HAA58CF336A9B4220B290DFC080A350EA"><enum>(e)</enum><header>Regulations</header><text>Not later than 180 days after the date of the enactment of this section, the Secretary shall issue guidelines to carry out this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HE2350A5180E14BB69248F6F4C0CAB85"><enum>(b)</enum><header>Conforming amendment</header><text>The table of contents of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> is further amended by inserting after the item relating to section 552 the following new item:</text> <quoted-block style="OLC" act-name="National Energy Conservation Policy Act" id="HE6F915F1A8E14FED8CC5C57944000415"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 553. Federal procurement of energy efficient products</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="H1A40F61A65B4457BAA36931868D7D5B"><enum>105.</enum><header>Energy Savings Performance Contracts</header> <subsection id="H604EF69F06FB46FE88B873AE828B624C"><enum>(a)</enum><header>Permanent extension</header><text>Effective September 30, 2003, section 801(c) of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8287">42 U.S.C. 8287(c)</external-xref>) is repealed.</text></subsection> <subsection id="HCE1E024ED23B47D1BBF71BB8BED59529"><enum>(b)</enum><header>Payment of costs</header><text>Section 802 of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8287a">42 U.S.C. 8287a</external-xref>) is amended by inserting <quote>, water, or wastewater treatment</quote> after <quote>payment of energy</quote>.</text></subsection> <subsection id="HBAB3F2F2CCB4468C8EB9972167D4D15C"><enum>(c)</enum><header>Energy savings</header><text>Section 804(2) of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8287c">42 U.S.C. 8287c(2)</external-xref>) is amended to read as follows:</text> <quoted-block act-name="National Energy Conservation Policy Act" id="H1D19B3EF0A7B4E26AFC57D359348E17F"> <paragraph id="H1E7E215F9B9D421F82FCAD30A9FCED46"><enum>(2)</enum><text>The term <term>energy savings</term> means a reduction in the cost of energy, water, or wastewater treatment, from a base cost established through a methodology set forth in the contract, used in an existing federally owned building or buildings or other federally owned facilities as a result of—</text> <subparagraph id="H4CD532C3ED5F45C7AB53C6C5DE900334"><enum>(A)</enum><text>the lease or purchase of operating equipment, improvements, altered operation and maintenance, or technical services;</text></subparagraph> <subparagraph id="H5FBD4BB5817C43E4BC06D1DD31003500"><enum>(B)</enum><text>the increased efficient use of existing energy sources by cogeneration or heat recovery, excluding any cogeneration process for other than a federally owned building or buildings or other federally owned facilities; or</text></subparagraph> <subparagraph id="HA0D1305EDCEA4C628768F9D167B95662"><enum>(C)</enum><text>the increased efficient use of existing water sources in either interior or exterior applications.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HB19D48DB1AAB46E7A33EB0C3B99C21D5"><enum>(d)</enum><header>Energy savings contract</header><text>Section 804(3) of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8287c">42 U.S.C. 8287c(3)</external-xref>) is amended to read as follows:</text> <quoted-block act-name="National Energy Conservation Policy Act" id="H78D5824563334672B68B148FAF8B348D"> <paragraph id="H999147A52C95412F9C00CCA12B2C01EC"><enum>(3)</enum><text>The terms <term>energy savings contract</term> and <term>energy savings performance contract</term> mean a contract that provides for the performance of services for the design, acquisition, installation, testing, and, where appropriate, operation, maintenance, and repair, of an identified energy or water conservation measure or series of measures at 1 or more locations. Such contracts shall, with respect to an agency facility that is a public building (as such term is defined in <external-xref legal-doc="usc" parsable-cite="usc/40/3301">section 3301</external-xref> of title 40, United States Code), be in compliance with the prospectus requirements and procedures of <external-xref legal-doc="usc" parsable-cite="usc/40/3307">section 3307</external-xref> of title 40, United States Code.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HBD79E82931924279BB5D1F89DB6187A8"><enum>(e)</enum><header>Energy or water conservation measure</header><text>Section 804(4) of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8287c">42 U.S.C. 8287c(4)</external-xref>) is amended to read as follows:</text> <quoted-block act-name="National Energy Conservation Policy Act" id="H7AF931B8FDC4464FABE21450F4CE91C"> <paragraph id="HFC717405A22E4CF09551229454D13692"><enum>(4)</enum><text>The term <term>energy or water conservation measure</term> means—</text> <subparagraph id="H41F86E40A37A4996B3D291483E29AB28"><enum>(A)</enum><text>an energy conservation measure, as defined in section 551; or</text></subparagraph> <subparagraph id="H69D70464521D4AE38B7657AAE64B2E99"><enum>(B)</enum><text>a water conservation measure that improves the efficiency of water use, is life-cycle cost-effective, and involves water conservation, water recycling or reuse, more efficient treatment of wastewater or stormwater, improvements in operation or maintenance efficiencies, retrofit activities, or other related activities, not at a Federal hydroelectric facility.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HCD575D429EA840618C37AFC815F3C18"><enum>(f)</enum><header>Review</header><text>Not later than 180 days after the date of the enactment of this Act, the Secretary of Energy shall complete a review of the Energy Savings Performance Contract program to identify statutory, regulatory, and administrative obstacles that prevent Federal agencies from fully utilizing the program. In addition, this review shall identify all areas for increasing program flexibility and effectiveness, including audit and measurement verification requirements, accounting for energy use in determining savings, contracting requirements, including the identification of additional qualified contractors, and energy efficiency services covered. The Secretary shall report these findings to Congress and shall implement identified administrative and regulatory changes to increase program flexibility and effectiveness to the extent that such changes are consistent with statutory authority.</text></subsection> <subsection id="H4E92862D9B4C4E5F9E7FA528E5065769"><enum>(g)</enum><header>Extension of authority</header><text>Any energy savings performance contract entered into under section 801 of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8287">42 U.S.C. 8287</external-xref>) after October 1, 2003, and before the date of enactment of this Act, shall be deemed to have been entered into pursuant to such section 801 as amended by subsection (a) of this section.</text></subsection></section> <section id="H3AE65E355CB74D4E9030B9DD563B5344"><enum>106.</enum><header>Energy Savings Performance Contracts pilot program for nonbuilding applications</header> <subsection id="H8A076532F1DA44AD9317A352C6A60314"><enum>(a)</enum><header>In general</header><text>The Secretary of Defense and the heads of other interested Federal agencies are authorized to enter into up to 10 energy savings performance contracts using procedures, established under subsection (b), based on the procedures under title VIII of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8287">42 U.S.C. 8287 et seq.</external-xref>), for the purpose of achieving energy or water savings, secondary savings, and benefits incidental to those purposes, in nonbuilding applications. The payments to be made by the Federal Government under such contracts shall not exceed a total of $200,000,000 for all such contracts combined.</text></subsection> <subsection id="HADA2CE77C0E1438D808D00B4005FD557"><enum>(b)</enum><header>Procedures</header><text>The Secretary of Energy, in consultation with the Administrator of General Services and the Secretary of Defense, shall establish procedures based on the procedures under title VIII of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8287">42 U.S.C. 8287 et seq.</external-xref>), for implementing this section.</text></subsection> <subsection id="HF13720C7D141430DB91548614BD7927D"><enum>(c)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H9F6FE83DF25843568967C6369FDEED78"><enum>(1)</enum><header>Nonbuilding application</header><text>The term <term>nonbuilding application</term> means—</text> <subparagraph id="H2594CA0361B944C4BF075065882FA8F2"><enum>(A)</enum><text>any class of vehicles, devices, or equipment that are transportable under their own power by land, sea, or air that consume energy from any fuel source for the purpose of such transportability, or to maintain a controlled environment within such vehicle, device, or equipment; or</text></subparagraph> <subparagraph id="H270DE893380E4CC6ABCA178C6331248D"><enum>(B)</enum><text>any Federally owned equipment used to generate electricity or transport water.</text></subparagraph></paragraph> <paragraph id="H24043F26C1C548D49786F9C0EAE54F29"><enum>(2)</enum><header>Secondary savings</header><text>The term <term>secondary savings</term> means additional energy or cost savings that are a direct consequence of the energy or water savings that result from the financing and implementation of the energy savings performance contract, including, but not limited to, energy or cost savings that result from a reduction in the need for fuel delivery and logistical support, or the increased efficiency in the production of electricity.</text></paragraph></subsection> <subsection id="HA3A18E2B45274DD985303778702B9B4D"><enum>(d)</enum><header>Report</header><text>Not later than 3 years after the date of enactment of this section, the Secretary of Energy shall report to Congress on the progress and results of the projects funded pursuant to this section. Such report shall include a description of projects undertaken; the energy, water, and cost savings, secondary savings, and other benefits that resulted from such projects; and recommendations on whether the pilot program should be extended, expanded, or authorized permanently as a part of the program authorized under title VIII of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8287">42 U.S.C. 8287 et seq.</external-xref>).</text></subsection></section> <section id="H440E27485F5342378D1E685E24D383C4"><enum>107.</enum><header>Voluntary commitments to reduce industrial energy intensity</header> <subsection id="HD8E0FEA139784EC50000A1FFC0963E92"><enum>(a)</enum><header>Voluntary agreements</header><text>The Secretary of Energy is authorized to enter into voluntary agreements with 1 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 by a significant amount relative to improvements in each sector in recent years.</text></subsection> <subsection id="H7ECA049AA0D34E88BEE415989E42D571"><enum>(b)</enum><header>Recognition</header><text>The Secretary of Energy, in cooperation with the Administrator of the Environmental Protection Agency and other appropriate Federal agencies, shall recognize and publicize the achievements of participants in voluntary agreements under this section.</text></subsection> <subsection id="H9C7F96D7C9C0441385EF601194F5F05"><enum>(c)</enum><header>Definition</header><text>In this section, the term <term>energy intensity</term> means the primary energy consumed per unit of physical output in an industrial process.</text></subsection></section> <section id="H42073158D94447B08FD0602E8F674D53"><enum>108.</enum><header>Advanced Building Efficiency Testbed</header> <subsection id="HD40C97F5ECEC4F7A0054F7BFE51512A4"><enum>(a)</enum><header>Establishment</header><text>The Secretary of Energy, in consultation with the Administrator of General Services, shall establish an Advanced Building Efficiency Testbed program for the development, testing, and demonstration of advanced engineering systems, components, and materials to enable innovations in building technologies. The program shall evaluate efficiency concepts for government and industry buildings, and demonstrate the ability of next generation buildings to support individual and organizational productivity and health (including by improving indoor air quality) as well as flexibility and technological change to improve environmental sustainability. Such program shall complement and not duplicate existing national programs.</text></subsection> <subsection id="H796D71EA209844D4B7F81C11A2C5DFC"><enum>(b)</enum><header>Participants</header><text>The program established under subsection (a) shall be led by a university with the ability to combine the expertise from numerous academic fields including, at a minimum, intelligent workplaces and advanced building systems and engineering, electrical and computer engineering, computer science, architecture, urban design, and environmental and mechanical engineering. Such university shall partner with other universities and entities who have established programs and the capability of advancing innovative building efficiency technologies.</text></subsection> <subsection id="HD67F26A7931847F3BC58F5D3832B2CDE"><enum>(c)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary of Energy to carry out this section $6,000,000 for each of the fiscal years 2004 through 2006, to remain available until expended. For any fiscal year in which funds are expended under this section, the Secretary shall provide <fraction>1/3</fraction> of the total amount to the lead university described in subsection (b), and provide the remaining <fraction>2/3</fraction> to the other participants referred to in subsection (b) on an equal basis.</text></subsection></section> <section id="HA8C9B07426E94ED8AC97F7D1191CFCEA"><enum>109.</enum><header>Federal building performance standards</header><text display-inline="no-display-inline">Section 305(a) of the <act-name parsable-cite="ECPA">Energy Conservation and Production Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6834">42 U.S.C. 6834(a)</external-xref>) is amended—</text> <paragraph id="H67613CF3E45241018021E61249366EF0"><enum>(1)</enum><text>in paragraph (2)(A), by striking <quote>CABO Model Energy Code, 1992</quote> and inserting <quote>the 2003 International Energy Conservation Code</quote>; and</text></paragraph> <paragraph id="H7141A350E0D44BF4824F27E9045BC4CA"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block id="H0D3CBB69CDA04D2A9744808CC0750060"> <paragraph indent="up1" id="H93A17353DD1B4991ACEFB65473CC425E"><enum>(3)</enum><header>Revised Federal building energy efficiency performance standards</header> <subparagraph id="HFA5E3B8319BC4380871906718CDA253E"><enum>(A)</enum><header>In general</header><text>Not later than 1 year after the date of enactment of this paragraph, the Secretary of Energy shall establish, by rule, revised Federal building energy efficiency performance standards that require that—</text> <clause id="HCF481DAA977C472793D4FED37734FB85"><enum>(i)</enum><text>if life-cycle cost-effective, for new Federal buildings—</text> <subclause id="HF8CDF3E691384B4597E60220B1F8DB99"><enum>(I)</enum><text>such buildings be designed so as to achieve energy consumption levels at least 30 percent below those of the version current as of the date of enactment of this paragraph of the ASHRAE Standard or the International Energy Conservation Code, as appropriate; and</text></subclause> <subclause id="HCD548051F89742A49102B950AB007CEB"><enum>(II)</enum><text>sustainable design principles are applied to the siting, design, and construction of all new and replacement buildings; and</text> <item indent="up2" id="HC2EA91F1F96945F3A1990104A8F1A33"><enum>(ii)</enum><text>where water is used to achieve energy efficiency, water conservation technologies shall be applied to the extent they are life-cycle cost effective.</text></item></subclause></clause></subparagraph> <subparagraph id="H07FBB397996F4F6F97DABA86B1A75E84"><enum>(B)</enum><header>Additional revisions</header><text>Not later than 1 year after the date of approval of each subsequent revision of the ASHRAE Standard or the International Energy Conservation Code, as appropriate, the Secretary of Energy shall determine, based on the cost-effectiveness of the requirements under the amendments, whether the revised standards established under this paragraph should be updated to reflect the amendments.</text></subparagraph> <subparagraph id="H6E7338CC9CEC4E7DAC3CA98EC1D0C7BD"><enum>(C)</enum><header>Statement on compliance of new buildings</header><text>In the budget request of the Federal agency for each fiscal year and each report submitted by the Federal agency under section 548(a) of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8258">42 U.S.C. 8258(a)</external-xref>), the head of each Federal agency shall include—</text> <clause id="H205506B15C8944FB8D702D2EAF9070FA"><enum>(i)</enum><text>a list of all new Federal buildings owned, operated, or controlled by the Federal agency; and</text></clause> <clause id="H2EDAF076FEB6438AB13534652541FAF6"><enum>(ii)</enum><text>a statement concerning whether the Federal buildings meet or exceed the revised standards established under this paragraph.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="HBFA2DC57238D4F23A70584C62F24CBE4"><enum>110.</enum><header>Increased use of recovered mineral component in Federally funded projects involving procurement of cement or concrete</header> <subsection id="HF9D6C5E020A346288FE461D1F3C182F7"><enum>(a)</enum><header>Amendment</header><text>Subtitle F of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6961">42 U.S.C. 6961 et seq.</external-xref>) is amended by adding at the end the following new section:</text> <quoted-block style="traditional" act-name="Solid Waste Disposal Act" id="H5674330CD27F44F7B8D9C2A656FFD21"> <section id="H54331855406942FFAE73FCF355BE1662"><enum>6005.</enum><header>Increased use of recovered mineral component in Federally funded projects involving procurement of cement or concrete</header> <subsection display-inline="yes-display-inline" id="HE15E25E793454FB100E3DDCDCD61EB72"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HA2FC9EE9D5434204A43E308BDAC67E96"><enum>(1)</enum><header>Agency head</header><text>The term <term>agency head</term> means—</text> <subparagraph id="HD0A9941CF14C4792B7BDB79271A4E954"><enum>(A)</enum><text>the Secretary of Transportation; and</text></subparagraph> <subparagraph id="H968DC1FEC4484CE4AA34E77B7336106F"><enum>(B)</enum><text>the head of each other Federal agency that on a regular basis procures, or provides Federal funds to pay or assist in paying the cost of procuring, material for cement or concrete projects.</text></subparagraph></paragraph> <paragraph id="H4F0AFC26818346B88B336F50FEC559DD"><enum>(2)</enum><header>Cement or concrete project</header><text>The term <term>cement or concrete project</term> means a project for the construction or maintenance of a highway or other transportation facility or a Federal, State, or local government building or other public facility that—</text> <subparagraph id="HA482BBB096EC4EEE9E079B2DBD162417"><enum>(A)</enum><text>involves the procurement of cement or concrete; and</text></subparagraph> <subparagraph id="H49898325775142F5A3700090006BA1E0"><enum>(B)</enum><text>is carried out in whole or in part using Federal funds.</text></subparagraph></paragraph> <paragraph id="H24208EEFF3D84B0F87F359575808494E"><enum>(3)</enum><header>Recovered mineral component</header><text>The term <term>recovered mineral component</term> means—</text> <subparagraph id="H338AD80036614ED99E05DC3100280068"><enum>(A)</enum><text>ground granulated blast furnace slag;</text></subparagraph> <subparagraph id="HE8F830C745444C6E80301E2570FE9037"><enum>(B)</enum><text>coal combustion fly ash; and</text></subparagraph> <subparagraph id="H234E1CAD5C9940409603CBAC67FB15EF"><enum>(C)</enum><text>any other waste material or byproduct recovered or diverted from solid waste that the Administrator, in consultation with an agency head, determines should be treated as recovered mineral component under this section for use in cement or concrete projects paid for, in whole or in part, by the agency head.</text></subparagraph></paragraph></subsection> <subsection id="HFAD6DC449AB8441A9300BD24F48C15D6"><enum>(b)</enum><header>Implementation of requirements</header> <paragraph id="H48F1FCA272654AA7989C8DFC6C889831"><enum>(1)</enum><header>In general</header><text>Not later than 1 year after the date of enactment of this section, the Administrator and each agency head shall take such actions as are necessary to implement fully all procurement requirements and incentives in effect as of the date of enactment of this section (including guidelines under section 6002) that provide for the use of cement and concrete incorporating recovered mineral component in cement or concrete projects.</text></paragraph> <paragraph id="H726FB6D7891F4F9DB3483FB832002883"><enum>(2)</enum><header>Priority</header><text>In carrying out paragraph (1) an agency head shall give priority to achieving greater use of recovered mineral component in cement or concrete projects for which recovered mineral components historically have not been used or have been used only minimally.</text></paragraph> <paragraph id="HD72BD726916E4D8F9DE6DC1F99D6908D"><enum>(3)</enum><header>Conformance</header><text>The Administrator and each agency head shall carry out this subsection in accordance with section 6002.</text></paragraph></subsection> <subsection id="H81256B4BF2C4472E97B469B7493BBAB6"><enum>(c)</enum><header>Full implementation study</header> <paragraph id="H1FD8580BB95D46FABFD0A7DA0708DBD8"><enum>(1)</enum><header>In general</header><text>The Administrator, in cooperation with the Secretary of Transportation and the Secretary of Energy, shall conduct a study to determine the extent to which current procurement requirements, when fully implemented in accordance with subsection (b), may realize energy savings and environmental benefits attainable with substitution of recovered mineral component in cement used in cement or concrete projects.</text></paragraph> <paragraph id="H47E91075382B471C96FC55DE1D1F2482"><enum>(2)</enum><header>Matters to be addressed</header><text>The study shall—</text> <subparagraph id="H1800A8FF1E1C475CA0088BB6C49C2C8D"><enum>(A)</enum><text>quantify the extent to which recovered mineral components are being substituted for Portland cement, particularly as a result of current procurement requirements, and the energy savings and environmental benefits associated with that substitution;</text></subparagraph> <subparagraph id="HADAA5BD6C05B4F41AEED5C913DE79504"><enum>(B)</enum><text>identify all barriers in procurement requirements to greater realization of energy savings and environmental benefits, including barriers resulting from exceptions from current law; and</text></subparagraph> <subparagraph id="H1D13A07AABFC464FABF0583B514746B9"><enum>(C)</enum> <clause display-inline="yes-display-inline" id="H62D6BDA6EFA543648C08D554A8B7C22D"><enum>(i)</enum><text>identify potential mechanisms to achieve greater substitution of recovered mineral component in types of cement or concrete projects for which recovered mineral components historically have not been used or have been used only minimally;</text></clause> <clause indent="up1" id="HC3C9628BBAA5474F95C382A41749F817"><enum>(ii)</enum><text>evaluate the feasibility of establishing guidelines or standards for optimized substitution rates of recovered mineral component in those cement or concrete projects; and</text></clause> <clause indent="up1" id="H3EA11C5FECD04965833C647ED0AE4D9B"><enum>(iii)</enum><text>identify any potential environmental or economic effects that may result from greater substitution of recovered mineral component in those cement or concrete projects.</text></clause></subparagraph></paragraph> <paragraph id="H5188CAB2B6F246F0939882814CA3007E"><enum>(3)</enum><header>Report</header><text>Not later than 30 months after the date of enactment of this section, the Administrator shall submit to Congress a report on the study.</text></paragraph></subsection> <subsection id="HA8A320C6876D445D81411C2F004D3BBE"><enum>(d)</enum><header>Additional procurement requirements</header><text>Unless the study conducted under subsection (c) identifies any effects or other problems described in subsection (c)(2)(C)(iii) that warrant further review or delay, the Administrator and each agency head shall, not later than 1 year after the release of the report in accordance with subsection (c)(3), take additional actions authorized under this Act to establish procurement requirements and incentives that provide for the use of cement and concrete with increased substitution of recovered mineral component in the construction and maintenance of cement or concrete projects, so as to—</text> <paragraph id="H833FE3F05FBD48F693A7B8E6001D7CEF"><enum>(1)</enum><text>realize more fully the energy savings and environmental benefits associated with increased substitution; and</text></paragraph> <paragraph id="H932E53F5CA4A4875AF0072EA2F2158D4"><enum>(2)</enum><text>eliminate barriers identified under subsection (c).</text></paragraph></subsection> <subsection id="H4FE853A074BF4F78857E335636B0C5DB"><enum>(e)</enum><header>Effect of Section</header><text>Nothing in this section affects the requirements of section 6002 (including the guidelines and specifications for implementing those requirements).</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H85B3665A409740C8B87E00C33E910606"><enum>(b)</enum><header>Table of contents amendment</header><text>The table of contents of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> is amended by adding after the item relating to section 6004 the following new item:</text> <quoted-block style="traditional" act-name="Solid Waste Disposal Act" id="HFC6DABD0BE5A4B9899EA7C9E6000AA38"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 6005. Increased use of recovered mineral component in federally funded projects involving procurement of cement or concrete</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section></subtitle> <subtitle id="H4F6FF59BBAFE41050058E86BCD7BDEC5"><enum>B</enum><header>Energy assistance and State programs</header> <section id="HC7F2A8BA3D024E0E99AB9B12C17EE226"><enum>121.</enum><header>Low income home energy assistance program</header><text display-inline="no-display-inline">Section 2602(b) of the Low-Income Home Energy Assistance Act of 1981 (<external-xref legal-doc="usc" parsable-cite="usc/42/8621">42 U.S.C. 8621(b)</external-xref>) is amended by striking <quote>and $2,000,000,000 for each of fiscal years 2002 through 2004</quote> and inserting <quote>$2,000,000,000 for fiscal years 2002 and 2003, and $3,400,000,000 for each of fiscal years 2004 through 2006</quote>.</text></section> <section id="H5F381994EEAC4C1F86DCD92996B253F6"><enum>122.</enum><header>Weatherization assistance</header><text display-inline="no-display-inline">Section 422 of the <act-name parsable-cite="ECPA">Energy Conservation and Production Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6872">42 U.S.C. 6872</external-xref>) is amended by striking <quote>for fiscal years 1999 through 2003 such sums as may be necessary</quote> and inserting <quote>$325,000,000 for fiscal year 2004, $400,000,000 for fiscal year 2005, and $500,000,000 for fiscal year 2006</quote>.</text></section> <section id="H4F801594A01242D9AC410024AE88795E"><enum>123.</enum><header>State energy programs</header> <subsection id="H2EF2D351EBEF4C8DBA6B3485CAFCD4B"><enum>(a)</enum><header>State energy conservation plans</header><text>Section 362 of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6322">42 U.S.C. 6322</external-xref>) is amended by inserting at the end the following new subsection:</text> <quoted-block act-name="Energy Policy and Conservation Act" id="HBA2C8F36BC6243F3BDA9EEEEF391263"> <subsection id="H796D126CC08F4B31BF35B6C9B4BF9760"><enum>(g)</enum><text>The Secretary shall, at least once every 3 years, invite the Governor of each State to review and, if necessary, revise the energy conservation plan of such State submitted under subsection (b) or (e). Such reviews should consider the energy conservation plans of other States within the region, and identify opportunities and actions carried out in pursuit of common energy conservation goals.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HD844DE785F2B42F9B42D2667FDD3A8A1"><enum>(b)</enum><header>State energy efficiency goals</header><text>Section 364 of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6324">42 U.S.C. 6324</external-xref>) is amended to read as follows:</text> <quoted-block style="traditional" act-name="Energy Policy and Conservation Act" id="HDDA63C52551A4C63AFEC480444D447CA"> <section id="H56103B34D17743F000AEE440AE002211"><enum>364.</enum><header>State energy efficiency goals</header><text display-inline="yes-display-inline">Each State energy conservation plan with respect to which assistance is made available under this part on or after the date of enactment of the Energy Policy Act of 2003 shall contain a goal, consisting of an improvement of 25 percent or more in the efficiency of use of energy in the State concerned in calendar year 2010 as compared to calendar year 1990, and may contain interim goals.</text></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H8C0A38B1AA474A048FDD00D45BEF35EB"><enum>(c)</enum><header>Authorization of appropriations</header><text>Section 365(f) of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6325">42 U.S.C. 6325(f)</external-xref>) is amended by striking <quote>for fiscal years 1999 through 2003 such sums as may be necessary</quote> and inserting <quote>$100,000,000 for each of the fiscal years 2004 and 2005 and $125,000,000 for fiscal year 2006</quote>.</text></subsection></section> <section id="HF3FCC23A27A64D1BB8BDF88A600CCFF"><enum>124.</enum><header>Energy efficient appliance rebate programs</header> <subsection id="HFAA6A76FDF2741A1A6DE6254DEAC7"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H380746011F424EF8AC93844184FBAF8"><enum>(1)</enum><header>Eligible State</header><text>The term <term>eligible State</term> means a State that meets the requirements of subsection (b).</text></paragraph> <paragraph id="HBB87B93BFA1E4820985B99F354EB1755"><enum>(2)</enum><header>Energy Star Program</header><text>The term <term>Energy Star program</term> means the program established by section 324A of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name>.</text></paragraph> <paragraph id="H86554C4F267C46F6A703AEF6EE070077"><enum>(3)</enum><header>Residential Energy Star product</header><text>The term <term>residential Energy Star product</term> means a product for a residence that is rated for energy efficiency under the Energy Star program.</text></paragraph> <paragraph id="HAC4BDAC9FCAA4C488EB3D0EBC1254605"><enum>(4)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Energy.</text></paragraph> <paragraph id="HF27EF99781FC4BAD847EA22D3DD92FE5"><enum>(5)</enum><header>State energy office</header><text>The term <term>State energy office</term> means the State agency responsible for developing State energy conservation plans under section 362 of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6322">42 U.S.C. 6322</external-xref>).</text></paragraph> <paragraph id="H3B2CABBF5CC040AA9713D13F4CDB215B"><enum>(6)</enum><header>State program</header><text>The term <term>State program</term> means a State energy efficient appliance rebate program described in subsection (b)(1).</text></paragraph></subsection> <subsection id="H9A6F7CB6D8D64A4AB2261CB3B279321C"><enum>(b)</enum><header>Eligible States</header><text>A State shall be eligible to receive an allocation under subsection (c) if the State—</text> <paragraph id="HC8B622A50FF64D9CACAFC29FECD349F7"><enum>(1)</enum><text>establishes (or has established) a State energy efficient appliance rebate program to provide rebates to residential consumers for the purchase of residential Energy Star products to replace used appliances of the same type;</text></paragraph> <paragraph id="HDF0656E3A2B741038CFE67D468540077"><enum>(2)</enum><text>submits an application for the allocation at such time, in such form, and containing such information as the Secretary may require; and</text></paragraph> <paragraph id="H6D76B26AD4814DB2BCAE5100D8000064"><enum>(3)</enum><text>provides assurances satisfactory to the Secretary that the State will use the allocation to supplement, but not supplant, funds made available to carry out the State program.</text></paragraph></subsection> <subsection id="H24A5B46500D9422E95007ECFC3C65D22"><enum>(c)</enum><header>Amount of allocations</header> <paragraph id="HC156441FBD634379BEF182D200F6C300"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), for each fiscal year, the Secretary shall allocate to the State energy office of each eligible State to carry out subsection (d) an amount equal to the product obtained by multiplying the amount made available under subsection (f) for the fiscal year by the ratio that the population of the State in the most recent calendar year for which data are available bears to the total population of all eligible States in that calendar year.</text></paragraph> <paragraph id="HC6337302122D4B9C95ABB77BC80126A0"><enum>(2)</enum><header>Minimum allocations</header><text>For each fiscal year, the amounts allocated under this subsection shall be adjusted proportionately so that no eligible State is allocated a sum that is less than an amount determined by the Secretary.</text></paragraph></subsection> <subsection id="H1537C1BE6F7B41A8AFC38ED0C7C5AE47"><enum>(d)</enum><header>Use of allocated funds</header><text>The allocation to a State energy office under subsection (c) may be used to pay up to 50 percent of the cost of establishing and carrying out a State program.</text></subsection> <subsection id="HAD5DC8AA30BA4CADB721F8A99B739923"><enum>(e)</enum><header>Issuance of rebates</header><text>Rebates may be provided to residential consumers that meet the requirements of the State program. The amount of a rebate shall be determined by the State energy office, taking into consideration—</text> <paragraph id="H399135EF124C47D5A1DAEE45AF66577E"><enum>(1)</enum><text>the amount of the allocation to the State energy office under subsection (c);</text></paragraph> <paragraph id="HBC16F9D4CD6F43B19603A40582ADE58E"><enum>(2)</enum><text>the amount of any Federal or State tax incentive available for the purchase of the residential Energy Star product; and</text></paragraph> <paragraph id="HC523596B35414712AF111F6EAB215D02"><enum>(3)</enum><text>the difference between the cost of the residential Energy Star product and the cost of an appliance that is not a residential Energy Star product, but is of the same type as, and is the nearest capacity, performance, and other relevant characteristics (as determined by the State energy office) to, the residential Energy Star product.</text></paragraph></subsection> <subsection id="H6BC92E54EE544657BAC768E5FF008C61"><enum>(f)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary to carry out this section $50,000,000 for each of the fiscal years 2004 through 2008.</text></subsection></section> <section id="H2B93F101B8C2476B867B08D87D92C8D6"><enum>125.</enum><header>Energy efficient public buildings</header> <subsection id="H8252BD7C80304E35B3EF7B3BDE03826D"><enum>(a)</enum><header>Grants</header><text>The Secretary of Energy may make grants to the State agency responsible for developing State energy conservation plans under section 362 of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6322">42 U.S.C. 6322</external-xref>), or, if no such agency exists, a State agency designated by the Governor of the State, to assist units of local government in the State in improving the energy efficiency of public buildings and facilities—</text> <paragraph id="HF4B6CB22986540FBB01D75A45486B219"><enum>(1)</enum><text>through construction of new energy efficient public buildings that use at least 30 percent less energy than a comparable public building constructed in compliance with standards prescribed in the most recent version of the International Energy Conservation Code, or a similar State code intended to achieve substantially equivalent efficiency levels; or</text></paragraph> <paragraph id="H15E7068C2AC648E88311EB95F12470F0"><enum>(2)</enum><text>through renovation of existing public buildings to achieve reductions in energy use of at least 30 percent as compared to the baseline energy use in such buildings prior to renovation, assuming a 3-year, weather-normalized average for calculating such baseline.</text></paragraph></subsection> <subsection id="H4879F8BD4F6D4AE3009EFF11985565A4"><enum>(b)</enum><header>Administration</header><text>State energy offices receiving grants under this section shall—</text> <paragraph id="H9ED2476BB15E4D458E5114A49F3D16AF"><enum>(1)</enum><text>maintain such records and evidence of compliance as the Secretary may require; and</text></paragraph> <paragraph id="H576844809C5547538386442E49FA259D"><enum>(2)</enum><text>develop and distribute information and materials and conduct programs to provide technical services and assistance to encourage planning, financing, and design of energy efficient public buildings by units of local government.</text></paragraph></subsection> <subsection id="HAF161A84B0D849E38DC400F2FE718EF0"><enum>(c)</enum><header>Authorization of appropriations</header><text>For the purposes of this section, there are authorized to be appropriated to the Secretary of Energy $30,000,000 for each of fiscal years 2004 through 2008. Not more than 10 percent of appropriated funds shall be used for administration.</text></subsection></section> <section id="HAE36351EC475464FBC9E6FDEA948B08"><enum>126.</enum><header>Low income community energy efficiency pilot program</header> <subsection id="H6ACE2ACF5385470E88F55551D2D63B33"><enum>(a)</enum><header>Grants</header><text>The Secretary of Energy is authorized to make grants to units of local government, private, non-profit community development organizations, and Indian tribe economic development entities to improve energy efficiency; identify and develop alternative, renewable, and distributed energy supplies; and increase energy conservation in low income rural and urban communities.</text></subsection> <subsection id="HDEB38495BBBD4491A7F9F3EAC3E61D20"><enum>(b)</enum><header>Purpose of grants</header><text>The Secretary may make grants on a competitive basis for—</text> <paragraph id="HCD260B8AAEA04812A04806FB07CA6F45"><enum>(1)</enum><text>investments that develop alternative, renewable, and distributed energy supplies;</text></paragraph> <paragraph id="H88371A323A7D4495A0209D731E02267F"><enum>(2)</enum><text>energy efficiency projects and energy conservation programs;</text></paragraph> <paragraph id="HE566C07E8BB146C097676926786681D0"><enum>(3)</enum><text>studies and other activities that improve energy efficiency in low income rural and urban communities;</text></paragraph> <paragraph id="H13A80232BFE549B5BC4BA311A4E30063"><enum>(4)</enum><text>planning and development assistance for increasing the energy efficiency of buildings and facilities; and</text></paragraph> <paragraph id="H70EB16AFD44C47D89ED45841B385EE2"><enum>(5)</enum><text>technical and financial assistance to local government and private entities on developing new renewable and distributed sources of power or combined heat and power generation.</text></paragraph></subsection> <subsection id="H6BFB726C79314CD286CB5CE4E8133DC"><enum>(c)</enum><header>Definition</header><text>For purposes of this section, the term <term>Indian tribe</term> means any Indian tribe, band, nation, or other organized group or community, including any Alaskan Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1601">43 U.S.C. 1601 et seq.</external-xref>), that is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.</text></subsection> <subsection id="HA40BEC9575A94D89AAA1385769268665"><enum>(d)</enum><header>Authorization of appropriations</header><text>For the purposes of this section there are authorized to be appropriated to the Secretary of Energy $20,000,000 for each of fiscal years 2004 through 2006.</text></subsection></section></subtitle> <subtitle id="H1498FDF3C5D14D6EB5CCA8808ED4E1C2"><enum>C</enum><header>Energy efficient products</header> <section id="H8395EC174D9742DCAA22E045548BAB77"><enum>131.</enum><header>Energy Star Program</header> <subsection id="HCA7F3449D57A4C7998EFF019DC1B69EE"><enum>(a)</enum><header>Amendment</header><text>The <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6201">42 U.S.C. 6201 et seq.</external-xref>) is amended by inserting the following after section 324:</text> <quoted-block act-name="Energy Policy and Conservation Act" id="HE70D8DE8CCC84A13880205199861F5E5"> <section id="H4A268ACB7E504837B2516D1432094C19"><enum>324A.</enum><header>Energy Star Program</header><text display-inline="no-display-inline">There is established at the Department of Energy and the Environmental Protection Agency a voluntary program to identify and promote energy-efficient products and buildings in order to reduce energy consumption, improve energy security, and reduce pollution through voluntary labeling of or other forms of communication about products and buildings that meet the highest energy efficiency standards. Responsibilities under the program shall be divided between the Department of Energy and the Environmental Protection Agency consistent with the terms of agreements between the 2 agencies. The Administrator and the Secretary shall—</text> <paragraph id="H11143A4962C147B190C6E4243E9660BF"><enum>(1)</enum><text>promote Energy Star compliant technologies as the preferred technologies in the marketplace for achieving energy efficiency and to reduce pollution;</text></paragraph> <paragraph id="H8A2B6062977043468DAFFF778A82710"><enum>(2)</enum><text>work to enhance public awareness of the Energy Star label, including special outreach to small businesses;</text></paragraph> <paragraph id="HF6C7EFF4482341D900EC3571E783B36C"><enum>(3)</enum><text>preserve the integrity of the Energy Star label;</text></paragraph> <paragraph id="H543D65B689AE4513970000C5D48B3D01"><enum>(4)</enum><text>solicit comments from interested parties prior to establishing or revising an Energy Star product category, specification, or criterion (or effective dates for any of the foregoing);</text></paragraph> <paragraph id="H801CDE5BED5B4EAAACB0C9004083A8BD"><enum>(5)</enum><text>upon adoption of a new or revised product category, specification, or criterion, provide reasonable notice to interested parties of any changes (including effective dates) in product categories, specifications, or criteria along with an explanation of such changes and, where appropriate, responses to comments submitted by interested parties; and</text></paragraph> <paragraph id="H8E53CB63A8BB438892FEBEA959B4B261"><enum>(6)</enum><text>provide appropriate lead time (which shall be 9 months, unless the Agency or Department determines otherwise) prior to the effective date for a new or a significant revision to a product category, specification, or criterion, taking into account the timing requirements of the manufacturing, product marketing, and distribution process for the specific product addressed.</text></paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H95A4333C82404C36A4951713B73B3BC5"><enum>(b)</enum><header>Table of contents amendment</header><text>The table of contents of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> is amended by inserting after the item relating to section 324 the following new item:</text> <quoted-block style="OLC" act-name="Energy Policy and Conservation Act" id="HA7BCB92B0EF446330018A43900B9C9D6"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 324A. Energy Star program</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="HCC2783101444492F9FB308C58BB0F513"><enum>132.</enum><header>HVAC maintenance consumer education program</header><text display-inline="no-display-inline">Section 337 of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6307">42 U.S.C. 6307</external-xref>) is amended by adding at the end the following:</text> <quoted-block act-name="Energy Policy and Conservation Act" id="H12755B68976E4C578FD720FE3FF0A999"> <subsection id="HAA905541BEBF48BAA884501B4445DA5D"><enum>(c)</enum><header>HVAC maintenance</header><text>For the purpose of ensuring that installed air conditioning and heating systems operate at their maximum rated efficiency levels, the Secretary shall, not later than 180 days after the date of enactment of this subsection, carry out a program to educate homeowners and small business owners concerning the energy savings resulting from properly conducted maintenance of air conditioning, heating, and ventilating systems. The Secretary shall carry out the program in a cost-shared manner in cooperation with the Administrator of the Environmental Protection Agency and such other entities as the Secretary considers appropriate, including industry trade associations, industry members, and energy efficiency organizations.</text></subsection> <subsection id="H532D4388D3474A27A796212086DEFE60"><enum>(d)</enum><header>Small business education and assistance</header><text>The Administrator of the Small Business Administration, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall develop and coordinate a Government-wide program, building on the existing Energy Star for Small Business Program, to assist small businesses to become more energy efficient, understand the cost savings obtainable through efficiencies, and identify financing options for energy efficiency upgrades. The Secretary and the Administrator of the Small Business Administration shall make the program information available directly to small businesses and through other Federal agencies, including the Federal Emergency Management Program and the Department of Agriculture.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H6ADF21CECE894CAABFCDD6222B00CB00"><enum>133.</enum><header>Energy conservation standards for additional products</header> <subsection id="H9D062CFC64B44DDB8188E3BC26CF53FC"><enum>(a)</enum><header>Definitions</header><text>Section 321 of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6291">42 U.S.C. 6291</external-xref>) is amended—</text> <paragraph id="H35BC5C66C6DE4FD5B4B2811070BD819C"><enum>(1)</enum><text>in paragraph (30)(S), by striking the period and adding at the end the following: <quote>but does not include any lamp specifically designed to be used for special purpose applications and that is unlikely to be used in general purpose applications such as those described in subparagraph (D), and also does not include any lamp not described in subparagraph (D) that is excluded by the Secretary, by rule, because the lamp is designed for special applications and is unlikely to be used in general purpose applications.</quote>; and</text></paragraph> <paragraph id="HA912F3C796584FD0A6C4A281B330B923"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block id="HC237130761224BB9ADA2002204BA3B5"> <paragraph id="H36D75C073C644F289B390036597D6CC1"><enum>(32)</enum><text>The term <term>battery charger</term> means a device that charges batteries for consumer products and includes battery chargers embedded in other consumer products.</text></paragraph> <paragraph id="HE79EBD4446A94BC383DE004CB7396536"><enum>(33)</enum><text>The term <term>commercial refrigerators, freezers, and refrigerator-freezers</term> means refrigerators, freezers, or refrigerator-freezers that—</text> <subparagraph id="H0DD049B4A6DA4224BA5304F5D9EABDB"><enum>(A)</enum><text>are not consumer products regulated under this Act; and</text></subparagraph> <subparagraph id="HE0D561652D714CE886A847106976042F"><enum>(B)</enum><text>incorporate most components involved in the vapor-compression cycle and the refrigerated compartment in a single package.</text></subparagraph></paragraph> <paragraph id="H2FC90422377542AF917741ADB8224D54"><enum>(34)</enum><text>The term <term>external power supply</term> means an external power supply circuit that is used to convert household electric current into either DC current or lower-voltage AC current to operate a consumer product.</text></paragraph> <paragraph id="HEF74A793CBEF4D6EA78D37A94605CABA"><enum>(35)</enum><text>The term <term>illuminated exit sign</term> means a sign that—</text> <subparagraph id="H1C05D2CE49A64A819FC3DAC80000449"><enum>(A)</enum><text>is designed to be permanently fixed in place to identify an exit; and</text></subparagraph> <subparagraph id="HA1B7942DCE16471B9F59BD9DDA8D5E16"><enum>(B)</enum><text>consists of an electrically powered integral light source that illuminates the legend <quote>EXIT</quote> and any directional indicators and provides contrast between the legend, any directional indicators, and the background.</text></subparagraph></paragraph> <paragraph id="H41EB79EE89A04FAC9576C1C8AFC18226"><enum>(36)</enum> <subparagraph display-inline="yes-display-inline" id="H89842D4F7E8B44DBA959CAC6A2236279"><enum>(A)</enum><text>Except as provided in subparagraph (B), the term <term>distribution transformer</term> means a transformer that—</text> <clause indent="up1" id="HF2DF4CDAD0594F398850BD35BAFE07B"><enum>(i)</enum><text>has an input voltage of 34.5 kilovolts or less;</text></clause> <clause indent="up1" id="H987319F724164631BB7D8C7157E10018"><enum>(ii)</enum><text>has an output voltage of 600 volts or less; and</text></clause> <clause indent="up1" id="H4CCD15E80C2749EE96C2C59D13C8D0F3"><enum>(iii)</enum><text>is rated for operation at a frequency of 60 Hertz.</text></clause></subparagraph> <subparagraph indent="up1" id="H94760FC22861404DA1FE4EA1BE00C65C"><enum>(B)</enum><text>The term <term>distribution transformer</term> does not include—</text> <clause id="HB972D707999949E286323CED3425C260"><enum>(i)</enum><text>transformers with multiple voltage taps, with the highest voltage tap equaling at least 20 percent more than the lowest voltage tap;</text></clause> <clause id="HC3CB9826B35C4C1FAFA942FEC4034E"><enum>(ii)</enum><text>transformers, such as those commonly known as drive transformers, rectifier transformers, auto-transformers, Uninterruptible Power System transformers, impedance transformers, harmonic transformers, regulating transformers, sealed and nonventilating transformers, machine tool transformers, welding transformers, grounding transformers, or testing transformers, that are designed to be used in a special purpose application and are unlikely to be used in general purpose applications; or</text></clause> <clause id="H13075C26B4174A568E709419952BF000"><enum>(iii)</enum><text>any transformer not listed in clause (ii) that is excluded by the Secretary by rule because—</text> <subclause id="HFA78A7BCD3CC4302ABA797459E89A03E"><enum>(I)</enum><text>the transformer is designed for a special application;</text></subclause> <subclause id="H4847DFC64BD040CFA2D7104E1CBD2591"><enum>(II)</enum><text>the transformer is unlikely to be used in general purpose applications; and</text></subclause> <subclause id="HF9BF242E315F4901B4F481254C1FD345"><enum>(III)</enum><text>the application of standards to the transformer would not result in significant energy savings.</text></subclause></clause></subparagraph></paragraph> <paragraph id="HBB88384826D74BFB9721A9EFEA39C4D5"><enum>(37)</enum><text>The term <term>low-voltage dry-type distribution transformer</term> means a distribution transformer that—</text> <subparagraph id="H39FE4E9AC9EE41219886F7FDD3E2CCC"><enum>(A)</enum><text>has an input voltage of 600 volts or less;</text></subparagraph> <subparagraph id="H7D3CDFBE7BE249E18D721625CFE7D87C"><enum>(B)</enum><text>is air-cooled; and</text></subparagraph> <subparagraph id="HDA57447289844A6EB7BFA3DCACC06B3B"><enum>(C)</enum><text>does not use oil as a coolant.</text></subparagraph></paragraph> <paragraph id="HBCAA617C5AAE46B48CDFB629E22BF674"><enum>(38)</enum><text>The term <term>standby mode</term> means the lowest power consumption mode that—</text> <subparagraph id="H214CF902649F4290B11CA3A7EC084B2"><enum>(A)</enum><text>cannot be switched off or influenced by the user; and</text></subparagraph> <subparagraph id="H117B95587E9E4BFCA494DFD35ED31FE1"><enum>(B)</enum><text>may persist for an indefinite time when an appliance is connected to the main electricity supply and used in accordance with the manufacturer’s instructions,</text></subparagraph><continuation-text continuation-text-level="paragraph">as defined on an individual product basis by the Secretary.</continuation-text></paragraph> <paragraph id="HD89E666888BC403EAA00781136E9C63"><enum>(39)</enum><text>The term <term>torchiere</term> means a portable electric lamp with a reflector bowl that directs light upward so as to give indirect illumination.</text></paragraph> <paragraph id="H799F4577CC404437811998C3ACFEF264"><enum>(40)</enum><text>The term <term>traffic signal module</term> means a standard 8-inch (200mm) or 12-inch (300mm) traffic signal indication, consisting of a light source, a lens, and all other parts necessary for operation, that communicates movement messages to drivers through red, amber, and green colors.</text></paragraph> <paragraph id="H8FB990FE6DF145C9B6AA398F02509C44"><enum>(41)</enum><text>The term <term>transformer</term> means a device consisting of 2 or more coils of insulated wire that transfers alternating current by electromagnetic induction from 1 coil to another to change the original voltage or current value.</text></paragraph> <paragraph id="H37F780F21DD44487AC475D009509E7C3"><enum>(42)</enum><text>The term <term>unit heater</term> means a self-contained fan-type heater designed to be installed within the heated space, except that such term does not include a warm air furnace.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H733E1D383246458ABABFB76DEC91003D"><enum>(b)</enum><header>Test procedures</header><text>Section 323 of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6293">42 U.S.C. 6293</external-xref>) is amended—</text> <paragraph id="H566D0CFCB7794E629030F7DA84C42465"><enum>(1)</enum><text>in subsection (b), by adding at the end the following:</text> <quoted-block id="HFD051CA3789F48E89116444D3B284DEE"> <paragraph id="H9DA4E0483B5544BE98C351931D5F6CAB"><enum>(9)</enum><text>Test procedures for illuminated exit signs shall be based on the test method used under Version 2.0 of the Energy Star program of the Environmental Protection Agency for illuminated exit signs.</text></paragraph> <paragraph id="H70D4815BC9904C67AB8BB5E2CA8EC4CE"><enum>(10)</enum><text>Test procedures for distribution transformers and low voltage dry-type distribution transformers shall be based on the <quote>Standard Test Method for Measuring the Energy Consumption of Distribution Transformers</quote> prescribed by the National Electrical Manufacturers Association (NEMA TP 2–1998). The Secretary may review and revise this test procedure. For purposes of section 346(a), this test procedure shall be deemed to be testing requirements prescribed by the Secretary under section 346(a)(1) for distribution transformers for which the Secretary makes a determination that energy conservation standards would be technologically feasible and economically justified, and would result in significant energy savings.</text></paragraph> <paragraph id="H3837F8B2B23D4CD497A75618622EF3C1"><enum>(11)</enum><text>Test procedures for traffic signal modules shall be based on the test method used under the Energy Star program of the Environmental Protection Agency for traffic signal modules, as in effect on the date of enactment of this paragraph.</text></paragraph> <paragraph id="H81D28A8CCF00406E902908D34E2B5676"><enum>(12)</enum><text>Test procedures for medium base compact fluorescent lamps shall be based on the test methods used under the August 9, 2001, version of the Energy Star program of the Environmental Protection Agency and Department of Energy for compact fluorescent lamps. Covered products shall meet all test requirements for regulated parameters in section 325(bb). However, covered products may be marketed prior to completion of lamp life and lumen maintenance at 40 percent of rated life testing provided manufacturers document engineering predictions and analysis that support expected attainment of lumen maintenance at 40 percent rated life and lamp life time.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="HD7D6E3A5B5D7445D8F49A98F2C7AC78"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block id="HA00B4FF5868146DC81C9EEA6CA7746EB"> <subsection id="HE67104E4C96247CD9FD3EE74E2D700DD"><enum>(f)</enum><header>Additional consumer and commercial products</header><text>The Secretary shall, not later than 24 months after the date of enactment of this subsection, prescribe testing requirements for suspended ceiling fans, refrigerated bottled or canned beverage vending machines, and commercial refrigerators, freezers, and refrigerator-freezers. Such testing requirements shall be based on existing test procedures used in industry to the extent practical and reasonable. In the case of suspended ceiling fans, such test procedures shall include efficiency at both maximum output and at an output no more than 50 percent of the maximum output.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HABA9ED8F6F574E93B570EFD2FDD79B5"><enum>(c)</enum><header>New standards</header><text>Section 325 of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6295">42 U.S.C. 6295</external-xref>) is amended by adding at the end the following:</text> <quoted-block act-name="Energy Policy and Conservation Act" id="H030F48389C5545E6B0352152DCE1D6C"> <subsection id="H373A8A52C07A4089815E7E44A7545D1E"><enum>(u)</enum><header>Battery charger and external power supply electric energy consumption</header> <paragraph id="HAEF9C707082B49829093D2CC07FF7881"><enum>(1)</enum><header>Initial rulemaking</header> <subparagraph display-inline="yes-display-inline" id="H6E35EE472DCD4B19AA4F734BE5537FEE"><enum>(A)</enum><text>The Secretary shall, within 18 months after the date of enactment of this subsection, prescribe by notice and comment, definitions and test procedures for the power use of battery chargers and external power supplies. In establishing these test procedures, the Secretary shall consider, among other factors, existing definitions and test procedures used for measuring energy consumption in standby mode and other modes and assess the current and projected future market for battery chargers and external power supplies. This assessment shall include estimates of the significance of potential energy savings from technical improvements to these products and suggested product classes for standards. Prior to the end of this time period, the Secretary shall hold a scoping workshop to discuss and receive comments on plans for developing energy conservation standards for energy use for these products.</text></subparagraph> <subparagraph indent="up1" id="H9DB080E730B6468FB9CBFAFD5B9781F5"><enum>(B)</enum><text>The Secretary shall, within 3 years after the date of enactment of this subsection, issue a final rule that determines whether energy conservation standards shall be issued for battery chargers and external power supplies or classes thereof. For each product class, any such standards shall be set at the lowest level of energy use that—</text> <clause id="H8EEA1ACBB44C428FA8303C5D077C48C5"><enum>(i)</enum><text>meets the criteria and procedures of subsections (o), (p), (q), (r), (s), and (t); and</text></clause> <clause id="H88E90026D6164F5790EB482EE9A9A0C8"><enum>(ii)</enum><text>will result in significant overall annual energy savings, considering both standby mode and other operating modes.</text></clause></subparagraph></paragraph> <paragraph id="HCD643314B21D4731BD0018B4665DD0A4"><enum>(2)</enum><header>Review of standby energy use in covered products</header><text>In determining pursuant to section 323 whether test procedures and energy conservation standards pursuant to this section should be revised, the Secretary shall consider, for covered products that are major sources of standby mode energy consumption, whether to incorporate standby mode into such test procedures and energy conservation standards, taking into account, among other relevant factors, standby mode power consumption compared to overall product energy consumption.</text></paragraph> <paragraph id="HC7F4E6FD72AC4780861B88AC5C86EBD"><enum>(3)</enum><header>Rulemaking</header><text>The Secretary shall not propose a standard under this section unless the Secretary has issued applicable test procedures for each product pursuant to section 323.</text></paragraph> <paragraph id="H7B9F1AA984D64EFC005F15349883F610"><enum>(4)</enum><header>Effective date</header><text>Any standard issued under this subsection shall be applicable to products manufactured or imported 3 years after the date of issuance.</text></paragraph> <paragraph id="H770C4594311A4D5EAB8DAC56039FA180"><enum>(5)</enum><header>Voluntary programs</header><text>The Secretary and the Administrator shall collaborate and develop programs, including programs pursuant to section 324A (relating to Energy Star Programs) and other voluntary industry agreements or codes of conduct, that are designed to reduce standby mode energy use.</text></paragraph></subsection> <subsection id="HDF7BCFA2E3834CF0A6AF611EF270A292"><enum>(v)</enum><header>Suspended ceiling fans, vending machines, and commercial refrigerators, freezers, and refrigerator-Freezers</header><text>The Secretary shall not later than 36 months after the date on which testing requirements are prescribed by the Secretary pursuant to section 323(f), prescribe, by rule, energy conservation standards for suspended ceiling fans, refrigerated bottled or canned beverage vending machines, and commercial refrigerators, freezers, and refrigerator-freezers. In establishing standards under this subsection, the Secretary shall use the criteria and procedures contained in subsections (o) and (p). Any standard prescribed under this subsection shall apply to products manufactured 3 years after the date of publication of a final rule establishing such standard.</text></subsection> <subsection id="HAF40E14F91C443BE91BBC7F3CCC19AA"><enum>(w)</enum><header>Illuminated exit signs</header><text>Illuminated exit signs manufactured on or after January 1, 2005, shall meet the Version 2.0 Energy Star Program performance requirements for illuminated exit signs prescribed by the Environmental Protection Agency.</text></subsection> <subsection id="H373B50FC02AF43B8A818432317CEE4DA"><enum>(x)</enum><header>Torchieres</header><text>Torchieres manufactured on or after January 1, 2005—</text> <paragraph id="HADA7D046EBC6462FA67829CF58E840F4"><enum>(1)</enum><text>shall consume not more than 190 watts of power; and</text></paragraph> <paragraph id="HA0FF9ED0BF7D4190A315B6408AF8500"><enum>(2)</enum><text>shall not be capable of operating with lamps that total more than 190 watts.</text></paragraph></subsection> <subsection id="H59F15BD74BBB426D8C4D3CC55406B87D"><enum>(y)</enum><header>Low voltage dry-type Distribution Transformers</header><text>The efficiency of low voltage dry-type distribution transformers manufactured on or after January 1, 2005, shall be the Class I Efficiency Levels for distribution transformers specified in Table 4-2 of the <quote>Guide for Determining Energy Efficiency for Distribution Transformers</quote> published by the National Electrical Manufacturers Association (NEMA TP–1–2002).</text></subsection> <subsection id="H0B45974DB6A94D3696A33EE2ADD5D50"><enum>(z)</enum><header>Traffic signal modules</header><text>Traffic signal modules manufactured on or after January 1, 2006, shall meet the performance requirements used under the Energy Star program of the Environmental Protection Agency for traffic signals, as in effect on the date of enactment of this subsection, and shall be installed with compatible, electrically connected signal control interface devices and conflict monitoring systems.</text></subsection> <subsection id="H1C9B5E015CAE48DE92D5D7CADE224F37"><enum>(aa)</enum><header>Unit heaters</header><text>Unit heaters manufactured on or after the date that is 3 years after the date of enactment of this subsection shall be equipped with an intermittent ignition device and shall have either power venting or an automatic flue damper.</text></subsection> <subsection id="HA1B7FB29EB33437700FBAA724CCC1EB0"><enum>(bb)</enum><header>Medium base compact fluorescent lamps</header><text>Bare lamp and covered lamp (no reflector) medium base compact fluorescent lamps manufactured on or after January 1, 2005, shall meet the following requirements prescribed by the August 9, 2001, version of the Energy Star Program Requirements for Compact Fluorescent Lamps, Energy Star Eligibility Criteria, Energy-Efficiency Specification issued by the Environmental Protection Agency and Department of Energy: minimum initial efficacy; lumen maintenance at 1000 hours; lumen maintenance at 40 percent of rated life; rapid cycle stress test; and lamp life. The Secretary may, by rule, establish requirements for color quality (CRI); power factor; operating frequency; and maximum allowable start time based on the requirements prescribed by the August 9, 2001, version of the Energy Star Program Requirements for Compact Fluorescent Lamps. The Secretary may, by rule, revise these requirements or establish other requirements considering energy savings, cost effectiveness, and consumer satisfaction.</text></subsection> <subsection id="HFA6247E7FACA4DE48D00A6FCA15BD644"><enum>(cc)</enum><header>Effective date</header><text>Section 327 shall apply—</text> <paragraph id="HE169C9554D5044C6A164C6721F4D345C"><enum>(1)</enum><text>to products for which standards are to be established under subsections (u) and (v) on the date on which a final rule is issued by the Department of Energy, except that any State or local standards prescribed or enacted for any such product prior to the date on which such final rule is issued shall not be preempted until the standard established under subsection (u) or (v) for that product takes effect; and</text></paragraph> <paragraph id="H41BC0669A7104B5CA2F40030EF70243F"><enum>(2)</enum><text>to products for which standards are established under subsections (w) through (bb) on the date of enactment of those subsections, except that any State or local standards prescribed or enacted prior to the date of enactment of those subsections shall not be preempted until the standards established under subsections (w) through (bb) take effect.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H9F96E538040C42268D33078300685C37"><enum>(d)</enum><header>Residential furnace fans</header><text>Section 325(f)(3) of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6295">42 U.S.C. 6295(f)(3)</external-xref>) is amended by adding the following new subparagraph at the end:</text> <quoted-block act-name="Energy Policy and Conservation Act" id="HF1F04CE4E3C8468EBBC8D9E367DFB55B"> <subparagraph indent="up2" id="HC0F598F688354B19ADA9E06100A08749"><enum>(D)</enum><text>Notwithstanding any provision of this Act, the Secretary may consider, and prescribe, if the requirements of subsection (o) of this section are met, energy efficiency or energy use standards for electricity used for purposes of circulating air through duct work.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="H71391775D8424284A3D64EE05D48E2C3"><enum>134.</enum><header>Energy labeling</header> <subsection id="H4BA6F225D1804DBD93EF5D00C89C6F0"><enum>(a)</enum><header>Rulemaking on effectiveness of consumer product labeling</header><text>Section 324(a)(2) of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6294">42 U.S.C. 6294(a)(2)</external-xref>) is amended by adding at the end the following:</text> <quoted-block act-name="Energy Policy and Conservation Act" id="H1FAC31F0E9364716BF932600FA555040"> <subparagraph indent="up2" id="H8445487D712948D9BA60A138BB312377"><enum>(F)</enum><text>Not later than 3 months after the date of enactment of this subparagraph, the Commission shall initiate a rulemaking to consider the effectiveness of the current consumer products labeling program in assisting consumers in making purchasing decisions and improving energy efficiency and to consider changes to the labeling rules that would improve the effectiveness of consumer product labels. Such rulemaking shall be completed not later than 2 years after the date of enactment of this subparagraph.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HCCCF4DABBB4E42B2A400F1AAE6DB0583"><enum>(b)</enum><header>Rulemaking on labeling for additional products</header><text>Section 324(a) of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6294">42 U.S.C. 6294(a)</external-xref>) is further amended by adding at the end the following:</text> <quoted-block act-name="Energy Policy and Conservation Act" id="HD9AC96807BD144A4007FB695BF7000C1"> <paragraph indent="up1" id="H2AFE97D04685402EACF33C1D8CCF0990"><enum>(5)</enum><text>The Secretary or the Commission, as appropriate, may, for covered products referred to in subsections (u) through (aa) of section 325, prescribe, by rule, pursuant to this section, labeling requirements for such products after a test procedure has been set pursuant to section 323. In the case of products to which TP–1 standards under section 325(y) apply, labeling requirements shall be based on the <quote>Standard for the Labeling of Distribution Transformer Efficiency</quote> prescribed by the National Electrical Manufacturers Association (NEMA TP–3) as in effect upon the date of enactment of this paragraph.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section></subtitle> <subtitle id="H7D1B6E34AFAA4516BD28FB450043B3D2"><enum>D</enum><header>Public housing</header> <section id="H4D10668F660E4743A19E4705F692BDB4"><enum>141.</enum><header>Capacity building for energy-efficient, affordable housing</header><text display-inline="no-display-inline">Section 4(b) of the HUD <act-name parsable-cite="DA93">Demonstration Act of 1993</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/9816">42 U.S.C. 9816</external-xref> note) is amended—</text> <paragraph id="H5B99555AFCB64EE48BEDD200587F36FA"><enum>(1)</enum><text>in paragraph (1), by inserting before the semicolon at the end the following: <quote>, including capabilities regarding the provision of energy efficient, affordable housing and residential energy conservation measures</quote>; and</text></paragraph> <paragraph id="H00612B45BBF14048A99DD87FFBE6A650"><enum>(2)</enum><text>in paragraph (2), by inserting before the semicolon the following: <quote>, including such activities relating to the provision of energy efficient, affordable housing and residential energy conservation measures that benefit low-income families</quote>.</text></paragraph></section> <section id="HD99566DCAFF74684ABBC00EDF00280CB"><enum>142.</enum><header>Increase of cdbg public services cap for energy conservation and efficiency activities</header><text display-inline="no-display-inline">Section 105(a)(8) of the <act-name parsable-cite="HCDA">Housing and Community Development Act of 1974</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/5305">42 U.S.C. 5305(a)(8)</external-xref>) is amended—</text> <paragraph id="H22F4F9D1F5D246E2BD79BB2E32AB65B7"><enum>(1)</enum><text>by inserting <quote>or efficiency</quote> after <quote>energy conservation</quote>;</text></paragraph> <paragraph id="H7A102EA9957A425886C614F2D793FA26"><enum>(2)</enum><text>by striking <quote>, and except that</quote> and inserting <quote>; except that</quote>; and</text></paragraph> <paragraph id="H74BEFD8D6D094AE297E6023B7DE61558"><enum>(3)</enum><text>by inserting before the semicolon at the end the following: <quote>; and except that each percentage limitation under this paragraph on the amount of assistance provided under this title that may be used for the provision of public services is hereby increased by 10 percent, but such percentage increase may be used only for the provision of public services concerning energy conservation or efficiency</quote>.</text></paragraph></section> <section id="H85701F90853D4B2B9577F29100FB7632"><enum>143.</enum><header>FHA mortgage insurance incentives for energy efficient housing</header> <subsection id="HD62B4BA6796E4D68A79115B86413A81"><enum>(a)</enum><header>Single family housing mortgage insurance</header><text>Section 203(b)(2) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(b)(2)</external-xref>) is amended, in the first undesignated paragraph beginning after subparagraph (B)(ii)(IV) (relating to solar energy systems), by striking <quote>20 percent</quote> and inserting <quote>30 percent</quote>.</text></subsection> <subsection id="HA13A51334B6C4E73B150BA038753F228"><enum>(b)</enum><header>Multifamily housing mortgage insurance</header><text>Section 207(c) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1713">12 U.S.C. 1713(c)</external-xref>) is amended, in the last undesignated paragraph beginning after paragraph (3) (relating to solar energy systems and residential energy conservation measures), by striking <quote>20 percent</quote> and inserting <quote>30 percent</quote>.</text></subsection> <subsection id="H63E1001DFC0043B400836CF990186FA5"><enum>(c)</enum><header>Cooperative housing mortgage insurance</header><text>Section 213(p) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1715e">12 U.S.C. 1715e(p)</external-xref>) is amended by striking <quote>20 per centum</quote> and inserting <quote>30 percent</quote>.</text></subsection> <subsection id="H3C2834F3BF9A480B896330DAA5F6BEDE"><enum>(d)</enum><header>Rehabilitation and neighborhood conservation housing mortgage insurance</header><text>Section 220(d)(3)(B)(iii)(IV) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1715k">12 U.S.C. 1715k(d)(3)(B)(iii)(IV)</external-xref>) is amended—</text> <paragraph id="H52F6174A066242939B37D0A675D0B2FF"><enum>(1)</enum><text>by striking <quote>with respect to rehabilitation projects involving not more than five family units,</quote>; and</text></paragraph> <paragraph id="H0F679891310445C4BE61F33E0F1BED"><enum>(2)</enum><text>by striking <quote>20 per centum</quote> and inserting <quote>30 percent</quote>.</text></paragraph></subsection> <subsection id="H36C05BC227D143D28592A1E839D87F"><enum>(e)</enum><header>Low-income multifamily housing mortgage insurance</header><text>Section 221(k) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1715l">12 U.S.C. 1715l(k)</external-xref>) is amended by striking <quote>20 per centum</quote> and inserting <quote>30 percent</quote>.</text></subsection> <subsection id="H05C188B4BA72414A9308693D4D7042B6"><enum>(f)</enum><header>Elderly housing mortgage insurance</header><text>Section 231(c)(2)(C) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1715v">12 U.S.C. 1715v(c)(2)(C)</external-xref>) is amended by striking <quote>20 per centum</quote> and inserting <quote>30 percent</quote>.</text></subsection> <subsection id="H85360F525DEB4F3A9C857D83F29B64AC"><enum>(g)</enum><header>Condominium housing mortgage insurance</header><text>Section 234(j) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1715y">12 U.S.C. 1715y(j)</external-xref>) is amended by striking <quote>20 per centum</quote> and inserting <quote>30 percent</quote>.</text></subsection></section> <section id="HBCCBAB91A9334F7381CC4512161A017"><enum>144.</enum><header>Public housing capital fund</header><text display-inline="no-display-inline">Section 9 of the <act-name parsable-cite="USHA">United States Housing Act of 1937</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/1437g">42 U.S.C. 1437g</external-xref>) is amended—</text> <paragraph id="HF7DA67D254B84E0F8FEF7C59A589048F"><enum>(1)</enum><text>in subsection (d)(1)—</text> <subparagraph id="HD076B9F602244BE2A32E72DB374F5F8F"><enum>(A)</enum><text>in subparagraph (I), by striking <quote>and</quote> at the end;</text></subparagraph> <subparagraph id="HE0DBA5993EDF411C96FB6B613D3473ED"><enum>(B)</enum><text>in subparagraph (J), by striking the period at the end and inserting a semicolon; and</text></subparagraph> <subparagraph id="H0BB645909271406693BCD2B1E6475383"><enum>(C)</enum><text>by adding at the end the following new subparagraphs:</text> <quoted-block id="HDFC6CDC3CE09438A8367EAC91F343BE"> <subparagraph id="H95690D375DA2482A9DCBF08B4DBB70"><enum>(K)</enum><text>improvement of energy and water-use efficiency by installing fixtures and fittings that conform to the American Society of Mechanical Engineers/American National Standards Institute standards A112.19.2-1998 and A112.18.1-2000, or any revision thereto, applicable at the time of installation, and by increasing energy efficiency and water conservation by such other means as the Secretary determines are appropriate; and</text></subparagraph> <subparagraph id="HCA8670329908432BA1DCB87EF956B2EE"><enum>(L)</enum><text>integrated utility management and capital planning to maximize energy conservation and efficiency measures.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H1DB1146C9E8B4C4F9F2FBACC9033EC"><enum>(2)</enum><text>in subsection (e)(2)(C)—</text> <subparagraph id="H8D71747673E5448B81BF469C3C65C1E1"><enum>(A)</enum><text>by striking <quote>The</quote> and inserting the following:</text> <quoted-block id="H7BC1911C63B14693B096F4A4002FCE96"> <clause id="H7ED0B1E2DCEC42ABAC7425AEF049C934"><enum>(i)</enum><header>In general</header><text>The</text></clause><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="HAD27FFADB5E345428907BF7001EAA180"><enum>(B)</enum><text>by adding at the end the following:</text> <quoted-block id="H3A3E80D8F57B4B5D95878162021CAA86"> <clause id="H6623DDE93791483FB4E05CF0FFE0259"><enum>(ii)</enum><header>Third party contracts</header><text>Contracts described in clause (i) may include contracts for equipment conversions to less costly utility sources, projects with resident-paid utilities, and adjustments to frozen base year consumption, including systems repaired to meet applicable building and safety codes and adjustments for occupancy rates increased by rehabilitation.</text></clause> <clause id="H5FEA778D9B794E4BBE30CBB388AF37B0"><enum>(iii)</enum><header>Term of contract</header><text>The total term of a contract described in clause (i) shall not exceed 20 years to allow longer payback periods for retrofits, including windows, heating system replacements, wall insulation, site-based generation, advanced energy savings technologies, including renewable energy generation, and other such retrofits.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></section> <section id="H3BD14259AC2B4DCB879C32A5C68B38FD"><enum>145.</enum><header>Grants for energy-conserving improvements for assisted housing</header><text display-inline="no-display-inline">Section 251(b)(1) of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/8231">42 U.S.C. 8231(1)</external-xref>) is amended—</text> <paragraph id="H0971334EEE3A4D4CBE0096F454AF58DF"><enum>(1)</enum><text>by striking <quote>financed with loans</quote> and inserting <quote>assisted</quote>;</text></paragraph> <paragraph id="H9C105F6B7C664F4594CC1E19CC4DC364"><enum>(2)</enum><text>by inserting after <quote>1959,</quote> the following: <quote>which are eligible multifamily housing projects (as such term is defined in section 512 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f</external-xref> note)) and are subject to mortgage restructuring and rental assistance sufficiency plans under such Act,</quote>; and</text></paragraph> <paragraph id="H12474D709CDA447197B674894FA32460"><enum>(3)</enum><text>by inserting after the period at the end of the first sentence the following new sentence: <quote>Such improvements may also include the installation of energy and water conserving fixtures and fittings that conform to the American Society of Mechanical Engineers/American National Standards Institute standards A112.19.2-1998 and A112.18.1-2000, or any revision thereto, applicable at the time of installation.</quote>.</text></paragraph></section> <section id="H27599F4E23DE49179C9E63E4F26B2C1"><enum>146.</enum><header>North American Development Bank</header><text display-inline="no-display-inline">Part 2 of subtitle D of title V of the North American Free Trade Agreement Implementation Act (22 U.S.C. 290m–290m-3) is amended by adding at the end the following:</text> <quoted-block id="HB3DC027BB455443F9300AF33109D929D"> <section id="HEBB1A30293464DD2AA879699C92D5527"><enum>545.</enum><header>Support for certain energy policies</header><text display-inline="no-display-inline">Consistent with the focus of the Bank’s Charter on environmental infrastructure projects, the Board members representing the United States should use their voice and vote to encourage the Bank to finance projects related to clean and efficient energy, including energy conservation, that prevent, control, or reduce environmental pollutants or contaminants.</text></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H9C5B49C3DF4C46D8A71D313175F7AC21"><enum>147.</enum><header>Energy-efficient appliances</header><text display-inline="no-display-inline">In purchasing appliances, a public housing agency shall purchase energy-efficient appliances that are Energy Star products or FEMP-designated products, as such terms are defined in section 553 of the <act-name parsable-cite="NECPA">National Energy Conservation Policy Act</act-name> (as amended by this title), unless the purchase of energy-efficient appliances is not cost-effective to the agency.</text></section> <section id="H84A706780E89421AA4566C6F5DC13C09"><enum>148.</enum><header>Energy efficiency standards</header><text display-inline="no-display-inline">Section 109 of the <act-name parsable-cite="CGNHA">Cranston-Gonzalez National Affordable Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/12709">42 U.S.C. 12709</external-xref>) is amended—</text> <paragraph id="HD4FFC37B1477411685CD5FE9B25400CE"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="H51DA860DF87D43AF887363BEB776BADC"><enum>(A)</enum><text>in paragraph (1)—</text> <clause id="H2B6CFDE519BA41CAACA153C938A65D71"><enum>(i)</enum><text>by striking <quote>1 year after the date of the enactment of the Energy Policy Act of 1992</quote> and inserting <quote>September 30, 2004</quote>;</text></clause> <clause id="HB6EDE5E3B3744414B3001D9717BF31D7"><enum>(ii)</enum><text>in subparagraph (A), by striking <quote>and</quote> at the end;</text></clause> <clause id="H52B426014DB249CA8B27F1C09215F46"><enum>(iii)</enum><text>in subparagraph (B), by striking the period at the end and inserting <quote>; and</quote>; and</text></clause> <clause id="H2071D7810E17483385E09CAF1BD1512C"><enum>(iv)</enum><text>by adding at the end the following:</text> <quoted-block id="H18BC644B4F1D4977BEB18CEB58B0B75B"> <subparagraph id="H52A4312B87FD4658006B96697D1EACAC"><enum>(C)</enum><text>rehabilitation and new construction of public and assisted housing funded by HOPE VI revitalization grants under section 24 of the <act-name parsable-cite="USHA">United States Housing Act of 1937</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/1437v">42 U.S.C. 1437v</external-xref>), where such standards are determined to be cost effective by the Secretary of Housing and Urban Development.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph> <subparagraph id="HD9F911DC92924842B4B34C41D1C00E0"><enum>(B)</enum><text>in paragraph (2), by striking <quote>Council of American</quote> and all that follows through <quote>90.1–1989’)</quote> and inserting <quote>2003 International Energy Conservation Code</quote>;</text></subparagraph></paragraph> <paragraph id="H56FB041FC1C64A6E8F11C0E73E03915E"><enum>(2)</enum><text>in subsection (b)—</text> <subparagraph id="H46B33732BDDC4C31AF29A99D67E8628C"><enum>(A)</enum><text>by striking <quote>within 1 year after the date of the enactment of the Energy Policy Act of 1992</quote> and inserting <quote>by September 30, 2004</quote>; and</text></subparagraph> <subparagraph id="H5F97D4F61BF54D89A786C4FD00EAED31"><enum>(B)</enum><text>by striking <quote>CABO</quote> and all that follows through <quote>1989</quote> and inserting <quote>the 2003 International Energy Conservation Code</quote>; and</text></subparagraph></paragraph> <paragraph id="HED72E49F23C74170966E4C1858BD4456"><enum>(3)</enum><text>in subsection (c)—</text> <subparagraph id="H30C36952CB354964AF9F5C48D6F4301"><enum>(A)</enum><text>in the heading, by striking <quote><header-in-text level="subsection">Model Energy Code</header-in-text></quote> and inserting <quote><header-in-text level="subsection">The International Energy Conservation Code</header-in-text></quote>; and</text></subparagraph> <subparagraph id="H7B01C0A500B7436697C68E93F2341D77"><enum>(B)</enum><text>by striking <quote>CABO</quote> and all that follows through <quote>1989</quote> and inserting <quote>the 2003 International Energy Conservation Code</quote>.</text></subparagraph></paragraph></section> <section id="H107CAE1AD5CE4FF989B789DBB6030079"><enum>149.</enum><header>Energy strategy for HUD</header><text display-inline="no-display-inline">The Secretary of Housing and Urban Development shall develop and implement an integrated strategy to reduce utility expenses through cost-effective energy conservation and efficiency measures and energy efficient design and construction of public and assisted housing. The energy strategy shall include the development of energy reduction goals and incentives for public housing agencies. The Secretary shall submit a report to Congress, not later than 1 year after the date of the enactment of this Act, on the energy strategy and the actions taken by the Department of Housing and Urban Development to monitor the energy usage of public housing agencies and shall submit an update every 2 years thereafter on progress in implementing the strategy.</text></section></subtitle> <enum>II</enum><header>Renewable energy</header> <subtitle id="HA621179740FB413187A67D2C00347838"><enum>A</enum><header>General provisions</header> <section id="H9D100C2C889F47E2A3696CCBE61700F7" section-type="subsequent-section"><enum>201.</enum><header>Assessment of renewable energy resources</header> <subsection id="H043EB63C9FD6478BAB6833C5B400C9EE"><enum>(a)</enum><header>Resource assessment</header><text>Not later than 6 months after the date of enactment of this Act, and each year thereafter, the Secretary of Energy shall review the available assessments of renewable energy resources within the United States, including solar, wind, biomass, ocean (tidal, wave, current, and thermal), geothermal, and hydroelectric energy resources, and undertake new assessments as necessary, taking into account changes in market conditions, available technologies, and other relevant factors.</text></subsection> <subsection id="HE9520E93643848879E531252DC97F800"><enum>(b)</enum><header>Contents of reports</header><text>Not later than 1 year after the date of enactment of this Act, and each year thereafter, the Secretary shall publish a report based on the assessment under subsection (a). The report shall contain—</text> <paragraph id="H89C044BABEF64C94A0009F05CDFD0F3"><enum>(1)</enum><text>a detailed inventory describing the available amount and characteristics of the renewable energy resources; and</text></paragraph> <paragraph id="HFF775680C9584951A4AF09AF00CE60AA"><enum>(2)</enum><text>such other information as the Secretary 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, together with an identification of any barriers to providing adequate transmission for remote sources of renewable energy resources to current and emerging markets, recommendations for removing or addressing such barriers, and ways to provide access to the grid that do not unfairly disadvantage renewable or other energy producers.</text></paragraph></subsection> <subsection id="HD22BE7BE0C9343ADA783186F95C77D59"><enum>(c)</enum><header>Authorization of appropriations</header><text>For the purposes of this section, there are authorized to be appropriated to the Secretary of Energy $10,000,000 for each of fiscal years 2004 through 2008.</text></subsection></section> <section id="H7A19269849794A39BCFA6676F8682117"><enum>202.</enum><header>Renewable energy production incentive</header> <subsection id="HB71F1CC2FE034912BD46AE57721E38FA"><enum>(a)</enum><header>Incentive payments</header><text>Section 1212(a) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13317">42 U.S.C. 13317(a)</external-xref>) is amended by striking <quote>and which satisfies</quote> and all that follows through <quote>Secretary shall establish.</quote> and inserting <quote>. If there are insufficient appropriations to make full payments for electric production from all qualified renewable energy facilities in any given year, the Secretary shall assign 60 percent of appropriated funds for that year to facilities that use solar, wind, geothermal, or closed-loop (dedicated energy crops) biomass technologies to generate electricity, and assign the remaining 40 percent to other projects. The Secretary may, after transmitting to Congress an explanation of the reasons therefor, alter the percentage requirements of the preceding sentence.</quote>.</text></subsection> <subsection id="HFA5146AF43934A2CBF07D30051DB1B4C"><enum>(b)</enum><header>Qualified renewable energy facility</header><text>Section 1212(b) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13317">42 U.S.C. 13317(b)</external-xref>) is amended—</text> <paragraph id="H6E23D7693FF742BEB0CAAE28FF16AD2B"><enum>(1)</enum><text>by striking <quote>a State or any political</quote> and all that follows through <quote>nonprofit electrical cooperative</quote> and inserting <quote>a not-for-profit electric cooperative, a public utility described in <external-xref legal-doc="usc" parsable-cite="usc/26/115">section 115</external-xref> of the Internal Revenue Code of 1986, a State, Commonwealth, territory, or possession of the United States or the District of Columbia, or a political subdivision thereof, or an Indian tribal government or subdivision thereof,</quote>; and</text></paragraph> <paragraph id="H7A378F18A1BD4BE3B9BB557E9BB09919"><enum>(2)</enum><text>by inserting <quote>landfill gas,</quote> after <quote>wind, biomass,</quote>.</text></paragraph></subsection> <subsection id="H4A5E87B0978B4B598DD3D29159713BBA"><enum>(c)</enum><header>Eligibility window</header><text>Section 1212(c) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13317">42 U.S.C. 13317(c)</external-xref>) is amended by striking <quote>during the 10-fiscal year period beginning with the first full fiscal year occurring after the enactment of this section</quote> and inserting <quote>after October 1, 2003, and before October 1, 2013</quote>.</text></subsection> <subsection id="H7FF66FB17D614DB0A986BCAF69D11C06"><enum>(d)</enum><header>Amount of payment</header><text>Section 1212(e)(1) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13317">42 U.S.C. 13317(e)(1)</external-xref>) is amended by inserting <quote>landfill gas,</quote> after <quote>wind, biomass,</quote>.</text></subsection> <subsection id="H1586C88EA3384B81ACA5539B00A0742C"><enum>(e)</enum><header>Sunset</header><text>Section 1212(f) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13317">42 U.S.C. 13317(f)</external-xref>) is amended by striking <quote>the expiration of</quote> and all that follows through <quote>of this section</quote> and inserting <quote>September 30, 2023</quote>.</text></subsection> <subsection id="H51C229A6F58C40DF9565B9AB15055F00"><enum>(f)</enum><header>Authorization of appropriations</header><text>Section 1212(g) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13317">42 U.S.C. 13317(g)</external-xref>) is amended to read as follows:</text> <quoted-block id="H1093DEC033DD44ECA6302C845400CAD2"> <subsection id="H0809B6958BE24BD398AA685DC43D66B5"><enum>(g)</enum><header>Authorization of appropriations</header> <paragraph id="H17FAC221A82242D3A3BB67193FE81324"><enum>(1)</enum><header>In General</header><text>Subject to paragraph (2), there are authorized to be appropriated such sums as may be necessary to carry out this section for fiscal years 2003 through 2023.</text></paragraph> <paragraph id="HE05ABB6D09C04FAE80F3BE737499E9B5"><enum>(2)</enum><header>Availability of funds</header><text>Funds made available under paragraph (1) shall remain available until expended.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="HC4E16C2FF1934B66B17E2CB690E4EA35"><enum>203.</enum><header>Federal purchase requirement</header> <subsection id="HD3E4FCF001C743B7B4A48099C662D4B"><enum>(a)</enum><header>Requirement</header><text>The President, acting through the Secretary of Energy, shall seek to ensure that, to the extent economically feasible and technically practicable, of the total amount of electric energy the Federal Government consumes during any fiscal year, the following amounts shall be renewable energy:</text> <paragraph id="HEC156D1E8C7A48E6859B1E4FDF2528F6"><enum>(1)</enum><text>Not less than 3 percent in fiscal years 2005 through 2007.</text></paragraph> <paragraph id="HCED20F6794AE4CB390C40829D7A449A5"><enum>(2)</enum><text>Not less than 5 percent in fiscal years 2008 through 2010.</text></paragraph> <paragraph id="H15AF05FCA6A64902A922D4804FACF234"><enum>(3)</enum><text>Not less than 7.5 percent in fiscal year 2011 and each fiscal year thereafter.</text></paragraph></subsection> <subsection id="H5C78B445D46E45BBB7F4716ECDCA9F77"><enum>(b)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HE27675AEB173474E90A541A7D77F3B48"><enum>(1)</enum><header>Biomass</header><text>The term <term>biomass</term> means any solid, nonhazardous, cellulosic material that is derived from—</text> <subparagraph id="HDF709A375C8B4622006584E0FC8E2DDB"><enum>(A)</enum><text>any of the following forest-related resources: mill residues, precommercial thinnings, slash, and brush, or nonmerchantable material;</text></subparagraph> <subparagraph id="H57EA63D812F04FC8ADC2C2C1CCC06F6E"><enum>(B)</enum><text>solid wood waste materials, including waste pallets, crates, dunnage, manufacturing and construction wood wastes (other than pressure-treated, chemically-treated, or painted wood wastes), and landscape or right-of-way tree trimmings, but not including municipal solid waste (garbage), gas derived from the biodegradation of solid waste, or paper that is commonly recycled;</text></subparagraph> <subparagraph id="H6D6CDAB1FE1C4046A9D08B21EDEA4E6"><enum>(C)</enum><text>agriculture wastes, including orchard tree crops, vineyard, grain, legumes, sugar, and other crop by-products or residues, and livestock waste nutrients; or</text></subparagraph> <subparagraph id="H3C23626A4E064DC3848D88F4659F84B8"><enum>(D)</enum><text>a plant that is grown exclusively as a fuel for the production of electricity.</text></subparagraph></paragraph> <paragraph id="HF5E6AD1FFEF6460485AC7CD8B194106B"><enum>(2)</enum><header>Renewable energy</header><text>The term <term>renewable energy</term> means electric energy generated from solar, wind, biomass, landfill gas, geothermal, municipal solid waste, or new hydroelectric generation capacity achieved from increased efficiency or additions of new capacity at an existing hydroelectric project.</text></paragraph></subsection> <subsection id="H10DC8BF976C447AA9ECD3D9D290065B3"><enum>(c)</enum><header>Calculation</header><text>For purposes of determining compliance with the requirement of this section, the amount of renewable energy shall be doubled if—</text> <paragraph id="H8BECFF2D31E640C88C3CA7460335AF70"><enum>(1)</enum><text>the renewable energy is produced and used on-site at a Federal facility;</text></paragraph> <paragraph id="HC8D2913770284996BF3F152FF21E3448"><enum>(2)</enum><text>the renewable energy is produced on Federal lands and used at a Federal facility; or</text></paragraph> <paragraph id="H5F4F2C76A75542ED84B5EBE3AA23C22E"><enum>(3)</enum><text>the renewable energy is produced on Indian land as defined in title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501 et. seq.) and used at a Federal facility.</text></paragraph></subsection> <subsection id="HEA364E85089E40E4BCFE712741415038"><enum>(d)</enum><header>Report</header><text>Not later than April 15, 2005, and every 2 years thereafter, the Secretary of Energy shall provide a report to Congress on the progress of the Federal Government in meeting the goals established by this section.</text></subsection></section> <section id="HE5B5D5BB32594925BCA618A25EA1E07"><enum>204.</enum><header>Insular areas energy security</header><text display-inline="no-display-inline">Section 604 of the Act entitled <quote>An Act to authorize appropriations for certain insular areas of the United States, and for other purposes</quote>, approved December 24, 1980 (<external-xref legal-doc="usc" parsable-cite="usc/48/1492">48 U.S.C. 1492</external-xref>), is amended—</text> <paragraph id="H862E92DE723346CEB6073FFA5CAEF94"><enum>(1)</enum><text>in subsection (a)(4) by striking the period and inserting a semicolon;</text></paragraph> <paragraph id="H96C6D5C45D504D8B9B9C6681847FB164"><enum>(2)</enum><text>by adding at the end of subsection (a) the following new paragraphs:</text> <quoted-block id="H67652AB220E04139B28565D6421D06A1"> <paragraph id="H33AA92F27BB44F81BC09A6A430A33B5C"><enum>(5)</enum><text>electric power transmission and distribution lines in insular areas are inadequate to withstand damage caused by the hurricanes and typhoons which frequently occur in insular areas and such damage often costs millions of dollars to repair; and</text></paragraph> <paragraph id="HFFD2A538BAF14AD8830070BDA9D164CD"><enum>(6)</enum><text>the refinement of renewable energy technologies since the publication of the 1982 Territorial Energy Assessment prepared pursuant to subsection (c) reveals the need to reassess the state of energy production, consumption, infrastructure, reliance on imported energy, opportunities for energy conservation and increased energy efficiency, and indigenous sources in regard to the insular areas.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H201A7A06E1C2491CA2DF29FBEAEE73FA"><enum>(3)</enum><text>by amending subsection (e) to read as follows:</text> <quoted-block id="HEEA5F567C75140CB9914F9AEC914C9D7"> <subsection id="H840CD56944CA40DEB6A9689768D9E968"><enum>(e)</enum> <paragraph display-inline="yes-display-inline" id="H5E1ADBE185B142DF86E517B03F00ED18"><enum>(1)</enum><text>The Secretary of the Interior, in consultation with the Secretary of Energy and the head of government of each insular area, shall update the plans required under subsection (c) by—</text> <subparagraph indent="up1" id="H5BDFA2D65F0F457297372D3F71982C00"><enum>(A)</enum><text>updating the contents required by subsection (c);</text></subparagraph> <subparagraph indent="up1" id="H4D0992A059BF4DB2A85E3872D3C02BE"><enum>(B)</enum><text>drafting long-term energy plans for such insular areas with the objective of reducing, to the extent feasible, their reliance on energy imports by the year 2010, increasing energy conservation and energy efficiency, and maximizing, to the extent feasible, use of indigenous energy sources; and</text></subparagraph> <subparagraph indent="up1" id="HE0A9EEA69F0B48F68548F9E47810EAAB"><enum>(C)</enum><text>drafting long-term energy transmission line plans for such insular areas with the objective that the maximum percentage feasible of electric power transmission and distribution lines in each insular area be protected from damage caused by hurricanes and typhoons.</text></subparagraph></paragraph> <paragraph indent="up1" id="HE4FD4B8A0A4944BBB337DE8136EECD07"><enum>(2)</enum><text>Not later than December 31, 2005, the Secretary of the Interior shall submit to Congress the updated plans for each insular area required by this subsection.</text></paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="HCDAB2F7B067D4244B900084EF616FC36"><enum>(4)</enum><text>by amending subsection (g)(4) to read as follows:</text> <quoted-block id="HB2918E0FC1FF4619BAD321B8BF68FDEB"> <paragraph id="H2A28108F0E7B47F2B907CBA0980042D4"><enum>(4)</enum><header>Power line grants for insular areas</header> <subparagraph id="HA4C79E8AE687438F9700D5951067F8AF"><enum>(A)</enum><header>In General</header><text>The Secretary of the Interior is authorized to make grants to governments of insular areas of the United States to carry out eligible projects to protect electric power transmission and distribution lines in such insular areas from damage caused by hurricanes and typhoons.</text></subparagraph> <subparagraph id="HAC2BCA1D61334692AC3508008CED46F5"><enum>(B)</enum><header>Eligible projects</header><text>The Secretary may award grants under subparagraph (A) only to governments of insular areas of the United States that submit written project plans to the Secretary for projects that meet the following criteria:</text> <clause id="H387239E8999B41CB8FF2C63050B5205F"><enum>(i)</enum><text>The project is designed to protect electric power transmission and distribution lines located in 1 or more of the insular areas of the United States from damage caused by hurricanes and typhoons.</text></clause> <clause id="HCC65001B1E6943E9955BB28E6EACE0CB"><enum>(ii)</enum><text>The project is likely to substantially reduce the risk of future damage, hardship, loss, or suffering.</text></clause> <clause id="HA1ED06E45E564CCB9C6D496C6C1C82C"><enum>(iii)</enum><text>The project addresses 1 or more problems that have been repetitive or that pose a significant risk to public health and safety.</text></clause> <clause id="H7B33C3C9C74B4614903EB6E880AAE94"><enum>(iv)</enum><text>The project is not likely to cost more than the value of the reduction in direct damage and other negative impacts that the project is designed to prevent or mitigate. The cost benefit analysis required by this criterion shall be computed on a net present value basis.</text></clause> <clause id="H8AEC250702A645849D74F01FB985600"><enum>(v)</enum><text>The project design has taken into consideration long-term changes to the areas and persons it is designed to protect and has manageable future maintenance and modification requirements.</text></clause> <clause id="H95F4AB169A804EC1A6D67160D2B3E3AB"><enum>(vi)</enum><text>The project plan includes an analysis of a range of options to address the problem it is designed to prevent or mitigate and a justification for the selection of the project in light of that analysis.</text></clause> <clause id="H2EC1A77012184F2783066408B1A05215"><enum>(vii)</enum><text>The applicant has demonstrated to the Secretary that the matching funds required by subparagraph (D) are available.</text></clause></subparagraph> <subparagraph id="H9BEEA85327464DCBAD3107243B56B706"><enum>(C)</enum><header>Priority</header><text>When making grants under this paragraph, the Secretary shall give priority to grants for projects which are likely to—</text> <clause id="H1A356D841E184D76B3AA35F0AFF2C85C"><enum>(i)</enum><text>have the greatest impact on reducing future disaster losses; and</text></clause> <clause id="H9289830D0D864407ACDAEE97BD91EACF"><enum>(ii)</enum><text>best conform with plans that have been approved by the Federal Government or the government of the insular area where the project is to be carried out for development or hazard mitigation for that insular area.</text></clause></subparagraph> <subparagraph id="HCEA0EADE93E34644B9FB3590CBCE8E23"><enum>(D)</enum><header>Matching requirement</header><text>The Federal share of the cost for a project for which a grant is provided under this paragraph shall not exceed 75 percent of the total cost of that project. The non-Federal share of the cost may be provided in the form of cash or services.</text></subparagraph> <subparagraph id="H161641A9649048318C91B9C828590800"><enum>(E)</enum><header>Treatment of funds for certain purposes</header><text>Grants provided under this paragraph shall not be considered as income, a resource, or a duplicative program when determining eligibility or benefit levels for Federal major disaster and emergency assistance.</text></subparagraph> <subparagraph id="H7B69C7179AAE4544809DD0F6E24EE066"><enum>(F)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out this paragraph $5,000,000 for each fiscal year beginning after the date of the enactment of this paragraph.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H7225D91018DF4B868880B29DA7AE031F"><enum>205.</enum><header>Use of photovoltaic energy in public buildings</header> <subsection id="HF12182A7DF8A4B7FA5E7B076D32EB79"><enum>(a)</enum><header>In General</header><text>Subchapter VI of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code, is amended by adding at the end the following:</text> <quoted-block style="USC" id="HDDEDFA0FFA7D419E83A411A1CD1F00B4"> <section id="H1590FD623DF34D1899C95C6CFE5FE3C2"><enum>3177.</enum><header>Use of photovoltaic energy in public buildings</header> <subsection id="HCB0E63B9349744B48F99DD8F10FA86A0"><enum>(a)</enum><header>Photovoltaic energy commercialization program</header> <paragraph id="H3AB55C21FDD644528916BA6F9545D23"><enum>(1)</enum><header>In General</header><text>The Administrator of General Services may establish a photovoltaic energy commercialization program for the procurement and installation of photovoltaic solar electric systems for electric production in new and existing public buildings.</text></paragraph> <paragraph id="HF93BB5205BD747A397CB941E1E40BC1B"><enum>(2)</enum><header>Purposes</header><text>The purposes of the program shall be to accomplish the following:</text> <subparagraph id="HA48000159C7B449F94462E00A6D64E72"><enum>(A)</enum><text>To accelerate the growth of a commercially viable photovoltaic industry to make this energy system available to the general public as an option which can reduce the national consumption of fossil fuel.</text></subparagraph> <subparagraph id="HBA2C50B9D9444C75AE545877BA9CA3A3"><enum>(B)</enum><text>To reduce the fossil fuel consumption and costs of the Federal Government.</text></subparagraph> <subparagraph id="H9E3195FFB36A450AA91BAFFABBFBC523"><enum>(C)</enum><text>To attain the goal of installing solar energy systems in 20,000 Federal buildings by 2010, as contained in the Federal Government’s Million Solar Roof Initiative of 1997.</text></subparagraph> <subparagraph id="H9856414D487D4C78A83F3316008B3CA3"><enum>(D)</enum><text>To stimulate the general use within the Federal Government of life-cycle costing and innovative procurement methods.</text></subparagraph> <subparagraph id="HC679DDB6A841431A80C9549FC55B9F1F"><enum>(E)</enum><text>To develop program performance data to support policy decisions on future incentive programs with respect to energy.</text></subparagraph></paragraph> <paragraph id="HA52184F1F635407796429FCB7B7981A4"><enum>(3)</enum><header>Acquisition of photovoltaic solar electric systems</header> <subparagraph id="H2582B0BE7D6C4B14B8899EA8CC008443"><enum>(A)</enum><header>In General</header><text>The program shall provide for the acquisition of photovoltaic solar electric systems and associated storage capability for use in public buildings.</text></subparagraph> <subparagraph id="HEC224A7F334D47E387F86082E95DE5DE"><enum>(B)</enum><header>Acquisition levels</header><text>The acquisition of photovoltaic electric systems shall be at a level substantial enough to allow use of low-cost production techniques with at least 150 megawatts (peak) cumulative acquired during the 5 years of the program.</text></subparagraph></paragraph> <paragraph id="H8E249D9F69C945C48905D13D3500F8F6"><enum>(4)</enum><header>Administration</header><text>The Administrator shall administer the program and shall—</text> <subparagraph id="HDB92FAA379FA4ECC8CE5F737143B8D1F"><enum>(A)</enum><text>issue such rules and regulations as may be appropriate to monitor and assess the performance and operation of photovoltaic solar electric systems installed pursuant to this subsection;</text></subparagraph> <subparagraph id="HD6AD561D669F438BB9EFA2EC06D1F5D3"><enum>(B)</enum><text>develop innovative procurement strategies for the acquisition of such systems; and</text></subparagraph> <subparagraph id="HEB7EBD7BD2D34C1689EA59D854375D01"><enum>(C)</enum><text>transmit to Congress an annual report on the results of the program.</text></subparagraph></paragraph></subsection> <subsection id="HF65ADACFE65F43C7B510D2F1307FE8EA"><enum>(b)</enum><header>Photovoltaic systems evaluation program</header> <paragraph id="H0417AD5D37AC4FC98484841BFF7AA00"><enum>(1)</enum><header>In General</header><text>Not later than 60 days after the date of enactment of this section, the Administrator, in consultation with the Secretary of Energy, shall establish a photovoltaic solar energy systems evaluation program to evaluate such photovoltaic solar energy systems as are required in public buildings.</text></paragraph> <paragraph id="H0F6BD972AA714730B602C36E9A8BBD"><enum>(2)</enum><header>Program requirement</header><text>In evaluating photovoltaic solar energy systems under the program, the Administrator shall ensure that such systems reflect the most advanced technology.</text></paragraph></subsection> <subsection id="H9637B5F7F14A448DBFE34B5641EC00E2"><enum>(c)</enum><header>Authorization of appropriations</header> <paragraph id="H6E78B3C3F5D945A0001E00EA3BD8CD54"><enum>(1)</enum><header>Photovoltaic energy commercialization program</header><text>There are authorized to be appropriated to carry out subsection (a) $50,000,000 for each of fiscal years 2004 through 2008. Such sums shall remain available until expended.</text></paragraph> <paragraph id="H0247F10015AE4D9090BB9EEFB8991DB5"><enum>(2)</enum><header>Photovoltaic systems evaluation program</header><text>There are authorized to be appropriated to carry out subsection (b) $10,000,000 for each of fiscal years 2004 through 2008. Such sums shall remain available until expended.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H6B13A48D18EE4E148CEB3452ECA583E0"><enum>(b)</enum><header>Conforming amendment</header><text>The section analysis for such chapter is amended by inserting after the item relating to section 3176 the following:</text> <quoted-block style="USC" id="H6FCDD764DEAC4D5F8531E82B661FD7A1"> <toc regeneration="no-regeneration"> <toc-entry level="section">3177. Use of photovoltaic energy in public buildings</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="H63DB95D1CBA349A097EB8641BCEB2E12"><enum>206.</enum><header>Grants to improve the commercial value of forest biomass for electric energy, useful heat, transportation fuels, petroleum-based product substitutes, and other commercial purposes</header> <subsection id="H5E93D5D1D1314D3188BB3EC26701176"><enum>(a)</enum><header>Findings</header><text>Congress finds the following:</text> <paragraph id="H3AEC219B62CC41878058D0F8002F25BB"><enum>(1)</enum><text>Thousands of communities in the United States, many located near Federal lands, are at risk to wildfire. Approximately 190,000,000 acres of land managed by the Secretary of Agriculture and the Secretary of the Interior are at risk of catastrophic fire in the near future. The accumulation of heavy forest fuel loads continues to increase as a result of disease, insect infestations, and drought, further raising the risk of fire each year.</text></paragraph> <paragraph id="HAB243AFE090D46C79FDD8DFFE9B1C0B1"><enum>(2)</enum><text>In addition, more than 70,000,000 acres across all land ownerships are at risk to higher than normal mortality over the next 15 years from insect infestation and disease. High levels of tree mortality from insects and disease result in increased fire risk, loss of old growth, degraded watershed conditions, and changes in species diversity and productivity, as well as diminished fish and wildlife habitat and decreased timber values.</text></paragraph> <paragraph id="H7FFEEDD58BB34B6C8CB0DAAEF8852993"><enum>(3)</enum><text>Preventive treatments such as removing fuel loading, ladder fuels, and hazard trees, planting proper species mix and restoring and protecting early successional habitat, and other specific restoration treatments designed to reduce the susceptibility of forest land, woodland, and rangeland to insect outbreaks, disease, and catastrophic fire present the greatest opportunity for long-term forest health by creating a mosaic of species-mix and age distribution. Such prevention treatments are widely acknowledged to be more successful and cost effective than suppression treatments in the case of insects, disease, and fire.</text></paragraph> <paragraph id="H65D4A9223F314B07BFD46D9737D5C27"><enum>(4)</enum><text>The byproducts of preventive treatment (wood, brush, thinnings, chips, slash, and other hazardous fuels) removed from forest lands, woodlands and rangelands represent an abundant supply of biomass for biomass-to-energy facilities and raw material for business. There are currently few markets for the extraordinary volumes of byproducts being generated as a result of the necessary large-scale preventive treatment activities.</text></paragraph> <paragraph id="H52963A9493524818B723F7432CFF2E5E"><enum>(5)</enum><text>The United States should—</text> <subparagraph id="H2AFCAB8C199A47319D63FDE5FD3213AE"><enum>(A)</enum><text>promote economic and entrepreneurial opportunities in using byproducts removed through preventive treatment activities related to hazardous fuels reduction, disease, and insect infestation; and</text></subparagraph> <subparagraph id="H9DFAB1157F2F4D6C8CA56D87C051F3CA"><enum>(B)</enum><text>develop and expand markets for traditionally underused wood and biomass as an outlet for byproducts of preventive treatment activities.</text></subparagraph></paragraph></subsection> <subsection id="H299B709DD07745DCB212DFB6E9CEDD27"><enum>(b)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H59B292883B6E497BA18322F2FA0531F9"><enum>(1)</enum><header>Biomass</header><text>The term <term>biomass</term> means trees and woody plants, including limbs, tops, needles, and other woody parts, and byproducts of preventive treatment, such as wood, brush, thinnings, chips, and slash, that are removed—</text> <subparagraph id="H83DE8369566743B500FFE727CE4F9100"><enum>(A)</enum><text>to reduce hazardous fuels; or</text></subparagraph> <subparagraph id="H249BA355DBEB4F518FC52CAE37999F80"><enum>(B)</enum><text>to reduce the risk of or to contain disease or insect infestation.</text></subparagraph></paragraph> <paragraph id="HD3EDDD63F4FE40AB93828423BE2D05A2"><enum>(2)</enum><header>Indian tribe</header><text>The term <term>Indian tribe</term> has the meaning given the term in section 4(e) of the <act-name parsable-cite="ISDA">Indian Self-Determination and Education Assistance Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/25/450b">25 U.S.C. 450b(e)</external-xref>).</text></paragraph> <paragraph id="H66208998132248718FD953298102DA89"><enum>(3)</enum><header>Person</header><text>The term <term>person</term> includes—</text> <subparagraph id="H2366A2EC79C4403FB95BDB6D3D3CE1E"><enum>(A)</enum><text>an individual;</text></subparagraph> <subparagraph id="HE245D24FDDAB49B6AF08169FC76D73F"><enum>(B)</enum><text>a community (as determined by the Secretary concerned);</text></subparagraph> <subparagraph id="H8E2AA0BF51A54609BBF28956CCBCCFD"><enum>(C)</enum><text>an Indian tribe;</text></subparagraph> <subparagraph id="HC78C29C26195444D9D2012989D9B5DF0"><enum>(D)</enum><text>a small business, micro-business, or a corporation that is incorporated in the United States; and</text></subparagraph> <subparagraph id="H7FA06CB6642543A0988DCD1DE09CC65D"><enum>(E)</enum><text>a nonprofit organization.</text></subparagraph></paragraph> <paragraph id="H7504F64AE1384850A6D400B713508EFF"><enum>(4)</enum><header>Preferred community</header><text>The term <term>preferred community</term> means—</text> <subparagraph id="HE3EB7DFECDC74879A5981CECD2634FF9"><enum>(A)</enum><text>any town, township, municipality, or other similar unit of local government (as determined by the Secretary concerned) that—</text> <clause id="H043A18857400437DBA09635D76924D48"><enum>(i)</enum><text>has a population of not more than 50,000 individuals; and</text></clause> <clause id="H9CE10C47E70E446C9400D7491E85DFCC"><enum>(ii)</enum><text>the Secretary concerned, in the sole discretion of the Secretary concerned, determines contains or is located near land, the condition of which is at significant risk of catastrophic wildfire, disease, or insect infestation or which suffers from disease or insect infestation; or</text></clause></subparagraph> <subparagraph id="HC1B2F0F9DDFF43BFB049087DA27167E0"><enum>(B)</enum><text>any county that—</text> <clause id="H140EF8815E984C1ABD73BC69C93C7FE2"><enum>(i)</enum><text>is not contained within a metropolitan statistical area; and</text></clause> <clause id="H8F6D8F2E622B4EAEB6AE02E305865B5"><enum>(ii)</enum><text>the Secretary concerned, in the sole discretion of the Secretary concerned, determines contains or is located near land, the condition of which is at significant risk of catastrophic wildfire, disease, or insect infestation or which suffers from disease or insect infestation.</text></clause></subparagraph></paragraph> <paragraph id="HA7A1B317E2C0417E827D1DE60027CED"><enum>(5)</enum><header>Secretary concerned</header><text>The term <term>Secretary concerned</term> means—</text> <subparagraph id="H47FB3E45D13046DFA6568DFA89659F75"><enum>(A)</enum><text>the Secretary of Agriculture with respect to National Forest System lands; and</text></subparagraph> <subparagraph id="HFACAC72B7A4C437E93AEBC6CDC3467F0"><enum>(B)</enum><text>the Secretary of the Interior with respect to Federal lands under the jurisdiction of the Secretary of the Interior and Indian lands.</text></subparagraph></paragraph></subsection> <subsection id="H2A8BBF2DDB994173BEE1835896BCCAE"><enum>(c)</enum><header>Biomass commercial use grant program</header> <paragraph id="HD228F2609AA04F3887B0E0342A57F15"><enum>(1)</enum><header>In General</header><text>The Secretary concerned may make grants to any person that owns or operates a facility that uses biomass as a raw material to produce electric energy, sensible heat, transportation fuels, or substitutes for petroleum-based products to offset the costs incurred to purchase biomass for use by such facility.</text></paragraph> <paragraph id="HA34AD2CC10A74DCAB925092D2207477E"><enum>(2)</enum><header>Grant amounts</header><text>A grant under this subsection may not exceed $20 per green ton of biomass delivered.</text></paragraph> <paragraph id="HF1498BFA6D7242D2BDF77E20527B7115"><enum>(3)</enum><header>Monitoring of grant recipient activities</header><text>As a condition of a grant under this subsection, the grant recipient shall keep such records as the Secretary concerned may require to fully and correctly disclose the use of the grant funds and all transactions involved in the purchase of biomass. Upon notice by a representative of the Secretary concerned, the grant recipient shall afford the representative reasonable access to the facility that purchases or uses biomass and an opportunity to examine the inventory and records of the facility.</text></paragraph></subsection> <subsection id="HBCE8032DCE3B4B07954003468F397C61"><enum>(d)</enum><header>Improved biomass use grant program</header> <paragraph id="HB1424ED5A503416E8E8FC9C2D5BBEF71"><enum>(1)</enum><header>In General</header><text>The Secretary concerned may make grants to persons to offset the cost of projects to develop or research opportunities to improve the use of, or add value to, biomass. In making such grants, the Secretary concerned shall give preference to persons in preferred communities.</text></paragraph> <paragraph id="HFC4E620C121D4A848DFCB790F69185D6"><enum>(2)</enum><header>Selection</header><text>The Secretary concerned shall select a grant recipient under paragraph (1) after giving consideration to the anticipated public benefits of the project, including the potential to develop thermal or electric energy resources or affordable energy, opportunities for the creation or expansion of small businesses and micro-businesses, and the potential for new job creation.</text></paragraph> <paragraph id="HDE9CE471A8AC4A97BD212879D3323429"><enum>(3)</enum><header>Grant amount</header><text>A grant under this subsection may not exceed $500,000.</text></paragraph></subsection> <subsection id="HA4D802837A1F43BAA44222C7FEA1F55B"><enum>(e)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated $50,000,000 for each of the fiscal years 2004 through 2014 to carry out this section.</text></subsection> <subsection id="H57FC23B3629342E197D3FED51371054B"><enum>(f)</enum><header>Report</header><text>Not later than October 1, 2010, the Secretary of Agriculture, in consultation with the Secretary of the Interior, shall submit to the Committee on Energy and Natural Resources and the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Resources, the Committee on Energy and Commerce, and the Committee on Agriculture of the House of Representatives a report describing the results of the grant programs authorized by this section. The report shall include the following:</text> <paragraph id="H6C965F9E1C8A4FB5881C692619A52031"><enum>(1)</enum><text>An identification of the size, type, and the use of biomass by persons that receive grants under this section.</text></paragraph> <paragraph id="HDE7AE24483524D979B95608F49C7744B"><enum>(2)</enum><text>The distance between the land from which the biomass was removed and the facility that used the biomass.</text></paragraph> <paragraph id="HE4069FAF2B7B436EBCD8F8B2A142A8F3"><enum>(3)</enum><text>The economic impacts, particularly new job creation, resulting from the grants to and operation of the eligible operations.</text></paragraph></subsection></section> <section id="HCCACD1A180FB48000016594B7300A0CE"><enum>207.</enum><header>Biobased products</header><text display-inline="no-display-inline">Section 9002(c)(1) of the Farm Security and Rural Investment Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/7/8102">7 U.S.C. 8102(c)(1)</external-xref>) is amended by inserting <quote>or such items that comply with the regulations issued under section 103 of <external-xref legal-doc="public-law" parsable-cite="pl/100/556">Public Law 100–556</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/42/6914b-1">42 U.S.C. 6914b–1</external-xref>)</quote> after <quote>practicable</quote>.</text></section></subtitle> <subtitle id="H1C5565E3FBF04E7D927D70D8ED6B7D53"><enum>B</enum><header>Geothermal energy</header> <section id="HF9861A967765443DA143E0B353A79301"><enum>211.</enum><header>Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the <quote><short-title>John Rishel Geothermal Steam Act Amendments of 2004</short-title></quote>.</text></section> <section id="HB173941DFF79437FBFD3CCCA42C748BF"><enum>212.</enum><header>Competitive lease sale requirements</header><text display-inline="no-display-inline">Section 4 of the Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1003">30 U.S.C. 1003</external-xref>) is amended to read as follows:</text> <quoted-block id="HA07D31C1D3BC48968F45A3B94405ED56"> <section id="H9E93C9F261F0443180D7A48B7600DCF9"><enum>4.</enum><header>Leasing procedures</header> <subsection id="HDCF7045603974FE9816F1C54C1CDFCC6"><enum>(a)</enum><header>Nominations</header><text>The Secretary shall accept nominations of lands to be leased at any time from qualified companies and individuals under this Act.</text></subsection> <subsection id="H253119BDFCF5452480DF3B2FB235F7DB"><enum>(b)</enum><header>Competitive lease sale required</header><text>The Secretary shall hold a competitive lease sale at least once every 2 years for lands in a State which has nominations pending under subsection (a) if such lands are otherwise available for leasing.</text></subsection> <subsection id="HAD9FE7195A594338908F00ABDF05BDBC"><enum>(c)</enum><header>Noncompetitive leasing</header><text>The Secretary shall make available for a period of 2 years for noncompetitive leasing any tract for which a competitive lease sale is held, but for which the Secretary does not receive any bids in a competitive lease sale.</text></subsection> <subsection id="HAD4FBB94ABA24D7CBC1C37B6FABFC053"><enum>(d)</enum><header>Leases sold as a block</header><text>If information is available to the Secretary indicating a geothermal resource that could be produced as 1 unit can reasonably be expected to underlie more than 1 parcel to be offered in a competitive lease sale, the parcels for such a resource may be offered for bidding as a block in the competitive lease sale.</text></subsection> <subsection id="H5C95BBD16A55426AB62C3E805B94635F"><enum>(e)</enum><header>Pending lease applications on April 1, 2003</header><text>It shall be a priority for the Secretary of the Interior, and for the Secretary of Agriculture with respect to National Forest Systems lands, to ensure timely completion of administrative actions necessary to process applications for geothermal leasing pending on April 1, 2003. Such an application, and any lease issued pursuant to such an application—</text> <paragraph id="H1C812BAE1EB047D1BA1BBC00B3F2BD87"><enum>(1)</enum><text>except as provided in paragraph (2), shall be subject to this section as in effect on April 1, 2003; or</text></paragraph> <paragraph id="H8A924DC7339945C58BB54489C5A7C3B3"><enum>(2)</enum><text>at the election of the applicant, shall be subject to this section as in effect on the effective date of this paragraph.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HC72A8CE2228C42439E23A5EFF2BD7586"><enum>213.</enum><header>Direct use</header> <subsection id="H88728269BB9B4F17A99900C770E1AE9C"><enum>(a)</enum><header>Fees for direct use</header><text>Section 5 of the Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1004">30 U.S.C. 1004</external-xref>) is amended—</text> <paragraph id="H85747EEF4D92482F8300EBB36132BCC5"><enum>(1)</enum><text>in paragraph (c) by redesignating subparagraphs (1) and (2) as subparagraphs (A) and (B);</text></paragraph> <paragraph id="HACAD006E0B2C4AFBA58E22AD4B87E56"><enum>(2)</enum><text>by redesignating paragraphs (a) through (d) in order as paragraphs (1) through (4);</text></paragraph> <paragraph id="H70F4270ED94B4EC38F60D72C2F442DBD"><enum>(3)</enum><text>by inserting <quote>(a) <header-in-text level="subsection">In General</header-in-text>.—</quote> after <quote><header-in-text level="subsection">Sec. 5.</header-in-text></quote>; and</text></paragraph> <paragraph id="H2C329513179E403AB3867FB1C79CDD77"><enum>(4)</enum><text>by adding at the end the following:</text> <quoted-block id="H99F969FA581B43A7B61DA151F651CC1D"> <subsection id="H37E3ED3648B74C52865D8B20C9284D99"><enum>(b)</enum><header>Direct use</header><text>Notwithstanding subsection (a)(1), with respect to the direct use of geothermal resources for purposes other than the commercial generation of electricity, the Secretary of the Interior shall establish a schedule of fees and collect fees pursuant to such a schedule in lieu of royalties based upon the total amount of the geothermal resources used. The schedule of fees shall ensure that there is a fair return to the public for the use of a geothermal resource based upon comparable fees charged for direct use of geothermal resources by States or private persons. For direct use by a State or local government for public purposes there shall be no royalty and the fee charged shall be nominal. Leases in existence on the date of enactment of the Energy Policy Act of 2003 shall be modified in order to reflect the provisions of this subsection.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H9FCBDF003D234C928B769B95CC0401E1"><enum>(b)</enum><header>Leasing for direct use</header><text>Section 4 of the Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1003">30 U.S.C. 1003</external-xref>) is further amended by adding at the end the following:</text> <quoted-block id="HF334DE77F3B74D89845EE213128EF489"> <subsection id="HCE03D103CB5349E18DBAE294C0BBABB9"><enum>(f)</enum><header>Leasing for direct use of Geothermal resources</header><text>Lands leased under this Act exclusively for direct use of geothermal resources shall be leased to any qualified applicant who first applies for such a lease under regulations issued by the Secretary, if—</text> <paragraph id="H550D2A5DB4B04810BD3875C8A2957B5E"><enum>(1)</enum><text>the Secretary publishes a notice of the lands proposed for leasing 60 days before the date of the issuance of the lease; and</text></paragraph> <paragraph id="H60C5E0F8F5034F46A23EFB2203AF3130"><enum>(2)</enum><text>the Secretary does not receive in the 60-day period beginning on the date of such publication any nomination to include the lands concerned in the next competitive lease sale.</text></paragraph></subsection> <subsection id="HE34F49B176244CC590C0734C2DD2486E"><enum>(g)</enum><header>Area subject to lease for direct use</header><text>A geothermal lease for the direct use of geothermal resources shall embrace not more than the amount of acreage determined by the Secretary to be reasonably necessary for such proposed utilization.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H904DA93A770743C0B00092A3166619CF"><enum>(c)</enum><header>Existing leases with a direct use facility</header> <paragraph id="H46C6A388411647B1B7239231E04C6FE9"><enum>(1)</enum><header>Application to convert</header><text>Any lessee under a lease under the Geothermal Steam Act of 1970 that was issued before the date of the enactment of this Act may apply to the Secretary of the Interior, by not later than 18 months after the date of the enactment of this Act, to convert such lease to a lease for direct utilization of geothermal resources in accordance with the amendments made by this section.</text></paragraph> <paragraph id="H3EB16554F9FB49D0A661ED913D8D21ED"><enum>(2)</enum><header>Conversion</header><text>The Secretary shall approve such an application and convert such a lease to a lease in accordance with the amendments by not later than 180 days after receipt of such application, unless the Secretary determines that the applicant is not a qualified applicant with respect to the lease.</text></paragraph> <paragraph id="H36D968AE1ADB4A83918800D4D6FBE7B"><enum>(3)</enum><header>Application of new lease terms</header><text>The amendment made by subsection (a)(4) shall apply with respect to payments under a lease converted under this subsection that are due and owing to the United States on or after July 16, 2003.</text></paragraph></subsection></section> <section id="H3E7E7AB68AB34386A4B1F3006D9323E7"><enum>214.</enum><header>Royalties and near-term production incentives</header> <subsection id="H34E04FB778A74A8692EDA8A37403BA68"><enum>(a)</enum><header>Royalty</header><text>Section 5 of the Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1004">30 U.S.C. 1004</external-xref>) is further amended—</text> <paragraph id="H62DBCDA612224EA5B789B67CB5B5DA87"><enum>(1)</enum><text>in subsection (a) by striking paragraph (1) and inserting the following:</text> <quoted-block id="H3D101ED1C9F042F59EC22D7548F1D2F5"> <paragraph id="H49F7343ADEE744E6B91C98BE26F2BDD3"><enum>(1)</enum><text>a royalty on electricity produced using geothermal steam and associated geothermal resources, other than direct use of geothermal resources, that shall be—</text> <subparagraph id="H7D64A4A714D5474A922BC42100DB1B05"><enum>(A)</enum><text>not less than 1 percent and not more than 2.5 percent of the gross proceeds from the sale of electricity produced from such resources during the first 10 years of production under the lease; and</text></subparagraph> <subparagraph id="H4C7677DF39D44004A8CB44CE87E55DD0"><enum>(B)</enum><text>not less than 2 and not more than 5 percent of the gross proceeds from the sale of electricity produced from such resources during each year after such 10-year period;</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H40142EB0AFCF4B0EA9D7FE186800D63C"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block id="H889A014042DD4CEDB7DFA4C729066E83"> <subsection id="HC23928EC6EA94FD898C50006D9B6660"><enum>(c)</enum><header>Final regulation establishing royalty rates</header><text>In issuing any final regulation establishing royalty rates under this section, the Secretary shall seek—</text> <paragraph id="H8915434CA0684CEC0043844629A6C71B"><enum>(1)</enum><text>to provide lessees a simplified administrative system;</text></paragraph> <paragraph id="H4341ED245AB84C539E270137D4B5CC1B"><enum>(2)</enum><text>to encourage new development; and</text></paragraph> <paragraph id="HE84BEFB258F24852BC59CB5FC46E19D4"><enum>(3)</enum><text>to achieve the same long-term level of royalty revenues to States and counties as the regulation in effect on the date of enactment of this subsection.</text></paragraph></subsection> <subsection id="HB48FB8D99C4C455BAAF24FC6E7A80085"><enum>(d)</enum><header>Credits for in-kind payments of electricity</header><text>The Secretary may provide to a lessee a credit against royalties owed under this Act, in an amount equal to the value of electricity provided under contract to a State or county government that is entitled to a portion of such royalties under section 20 of this Act, section 35 of the <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/30/191">30 U.S.C. 191</external-xref>), or section 6 of the <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> for Acquired Lands (<external-xref legal-doc="usc" parsable-cite="usc/30/355">30 U.S.C. 355</external-xref>), if—</text> <paragraph id="H3F58F0A3B6B840C4911F9988F8D45BDB"><enum>(1)</enum><text>the Secretary has approved in advance the contract between the lessee and the State or county government for such in-kind payments;</text></paragraph> <paragraph id="H0EF28243C38B4D8C8E60434DABBCBFF"><enum>(2)</enum><text>the contract establishes a specific methodology to determine the value of such credits; and</text></paragraph> <paragraph id="H78A69A34E638441A9036121E5445B974"><enum>(3)</enum><text>the maximum credit will be equal to the royalty value owed to the State or county that is a party to the contract and the electricity received will serve as the royalty payment from the Federal Government to that entity.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H7FFF77559FD9465BB5F9E386DD58E988"><enum>(b)</enum><header>Disposal of moneys from sales, bonuses, royalties, and rentals</header><text>Section 20 of the Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1019">30 U.S.C. 1019</external-xref>) is amended to read as follows:</text> <quoted-block id="HD1D8D1515E2246EEBA1F9D00D79E111E"> <section id="HDFDD47D3FF9744C898A190EB79E20905"><enum>20.</enum><header>Disposal of moneys from sales, bonuses, rentals, and royalties</header> <subsection id="H5B1683FBC6124FA78710172E2BC0A9D7"><enum>(a)</enum><header>In General</header><text>Except with respect to lands in the State of Alaska, all monies received by the United States from sales, bonuses, rentals, and royalties under this Act shall be paid into the Treasury of the United States. Of amounts deposited under this subsection, subject to the provisions of section 35 of the <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/30/191">30 U.S.C. 191(b)</external-xref>) and section 5(a)(2) of this Act—</text> <paragraph id="HAE2D5C837458440D8869D4BCDBFC2495"><enum>(1)</enum><text>50 percent shall be paid to the State within the boundaries of which the leased lands or geothermal resources are or were located; and</text></paragraph> <paragraph id="H5FCF40F74ADC4259BD1E5988959B161D"><enum>(2)</enum><text>25 percent shall be paid to the County within the boundaries of which the leased lands or geothermal resources are or were located.</text></paragraph></subsection> <subsection id="H30C1305323904F3A8D00281B00573959"><enum>(b)</enum><header>Use of payments</header><text>Amounts paid to a State or county under subsection (a) shall be used consistent with the terms of section 35 of the <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/30/191">30 U.S.C. 191</external-xref>).</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HCA37559601CB441CB94941F6875BF764"><enum>(c)</enum><header>Near-term production incentive for existing leases</header> <paragraph id="HEF0291A13DF54E6CBDFE0BEEA4E9EF1"><enum>(1)</enum><header>In General</header><text>Notwithstanding section 5(a) of the Geothermal Steam Act of 1970, the royalty required to be paid shall be 50 percent of the amount of the royalty otherwise required, on any lease issued before the date of enactment of this Act that does not convert to new royalty terms under subsection (e)—</text> <subparagraph id="H2E50411876484990B29BF37EFA4624A6"><enum>(A)</enum><text>with respect to commercial production of energy from a facility that begins such production in the 6-year period beginning on the date of the enactment of this Act; or</text></subparagraph> <subparagraph id="HA0CABE948D6D4BC08979E190A291D77"><enum>(B)</enum><text>on qualified expansion geothermal energy.</text></subparagraph></paragraph> <paragraph id="H8BBCEC81292A4E219DCBC0024004258"><enum>(2)</enum><header>4-year application</header><text>Paragraph (1) applies only to new commercial production of energy from a facility in the first 4 years of such production.</text></paragraph></subsection> <subsection id="HEA395052CF8B43539600E582A3503038"><enum>(d)</enum><header>Definition of qualified expansion Geothermal energy</header><text>In this section, the term <term>qualified expansion geothermal energy</term> means geothermal energy produced from a generation facility for which—</text> <paragraph id="HC750ADEC15224852914C861CF5F28131"><enum>(1)</enum><text>the production is increased by more than 10 percent as a result of expansion of the facility carried out in the 6-year period beginning on the date of the enactment of this Act; and</text></paragraph> <paragraph id="H8E5D741E32204C158F66ACAF897C5C86"><enum>(2)</enum><text>such production increase is greater than 10 percent of the average production by the facility during the 5-year period preceding the expansion of the facility.</text></paragraph></subsection> <subsection id="HED0716A48C5C4BD8842F7412F4C2DB7C"><enum>(e)</enum><header>Royalty under existing leases</header> <paragraph id="HAE9A08F28AFB4BCA961F2B100000F4A5"><enum>(1)</enum><header>In General</header><text>Any lessee under a lease issued under the Geothermal Steam Act of 1970 before the date of the enactment of this Act may modify the terms of the lease relating to payment of royalties to comply with the amendment made by subsection (a), by applying to the Secretary of the Interior by not later than 18 months after the date of the enactment of this Act.</text></paragraph> <paragraph id="HDD89BBFDC5234C758F979B8ED2AE8188"><enum>(2)</enum><header>Application of modification</header><text>Such modification shall apply to any use of geothermal steam and any associated geothermal resources to which the amendment applies that occurs after the date of that application.</text></paragraph> <paragraph id="HC0375994AC824112AF6176D7EA3C32C8"><enum>(3)</enum><header>Consultation</header><text>The Secretary—</text> <subparagraph id="H0F886A6F9AD14D589F63981730EB9EDA"><enum>(A)</enum><text>shall consult with the State and local governments affected by any proposed changes in lease royalty terms under this subsection; and</text></subparagraph> <subparagraph id="H1FC917E5FD0F423DB7DFC5253FAF1E3"><enum>(B)</enum><text>may establish a gross proceeds percentage within the range specified in the amendment made by subsection (a)(1) and with the concurrence of the lessee and the State.</text></subparagraph></paragraph></subsection></section> <section id="HA4D38A680ED840E0B6C59B98813324FC"><enum>215.</enum><header>Geothermal leasing and permitting on Federal lands</header> <subsection id="HD42C9D23BEBC41E0A9C96E9D63DDC35D"><enum>(a)</enum><header>In General</header><text>Not later than 180 days after the date of the enactment of this section, the Secretary of the Interior and the Secretary of Agriculture shall enter into and submit to Congress a memorandum of understanding in accordance with this section regarding leasing and permitting for geothermal development of public lands and National Forest System lands under their respective jurisdictions.</text></subsection> <subsection id="HDE1AC9C505E34332903D05E77DB2A875"><enum>(b)</enum><header>Lease and permit applications</header><text>The memorandum of understanding shall—</text> <paragraph id="H5D46D00AE593468BB53285AA9DD8B014"><enum>(1)</enum><text>identify areas with geothermal potential on lands included in the National Forest System and, when necessary, require review of management plans to consider leasing under the Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1001">30 U.S.C. 1001 et seq.</external-xref>) as a land use; and</text></paragraph> <paragraph id="H84B92FB4E8C741A4AF6819FFC3988500"><enum>(2)</enum><text>establish an administrative procedure for processing geothermal lease applications, including lines of authority, steps in application processing, and time limits for application procession.</text></paragraph></subsection> <subsection id="H93EF04988765441D006E6C1198B3DB4E"><enum>(c)</enum><header>Data retrieval system</header><text>The memorandum of understanding shall establish a joint data retrieval system that is capable of tracking lease and permit applications and providing to the applicant information as to their status within the Departments of the Interior and Agriculture, including an estimate of the time required for administrative action.</text></subsection></section> <section id="H1BEF375968A94880A9CD97BEF7B65541"><enum>216.</enum><header>Review and report to Congress</header><text display-inline="no-display-inline">The Secretary of the Interior shall promptly review and report to Congress not later than 3 years after the date of the enactment of this Act regarding the status of all withdrawals from leasing under the Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1001">30 U.S.C. 1001 et seq.</external-xref>) of Federal lands, specifying for each such area whether the basis for such withdrawal still applies.</text></section> <section id="H017F60ACAF5E4711BE1B6699F4E2E5A8"><enum>217.</enum><header>Reimbursement for costs of NEPA analyses, documentation, and studies</header> <subsection id="H5A96B388E2B14AC5A6645288EA13B640"><enum>(a)</enum><header>In General</header><text>The Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1001">30 U.S.C. 1001 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="HFCA23FE9D857499CA208DB3E6D295200"> <section id="H6FE1833AA28546C8945B9917DCBBA3"><enum>30.</enum><header>Reimbursement for costs of certain analyses, documentation, and studies</header> <subsection id="HD03E6EC4B38C4108999C7923E6E1273C"><enum>(a)</enum><header>In General</header><text>The Secretary of the Interior may reimburse a person that is a lessee, operator, operating rights owner, or applicant for any lease under this Act for reasonable amounts paid by the person for preparation for the Secretary by a contractor or other person selected by the Secretary of any project-level analysis, documentation, or related study required pursuant to the <act-name parsable-cite="NEPA69">National Environmental Policy Act of 1969</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/4321">42 U.S.C. 4321 et seq.</external-xref>) with respect to the lease.</text></subsection> <subsection id="H91B532DDA0D842939CB7FD37FCC47C7B"><enum>(b)</enum><header>Conditions</header><text>The Secretary may provide reimbursement under subsection (a) only if—</text> <paragraph id="HE7C99C010FBA421F81823E69AE2F31E9"><enum>(1)</enum><text>adequate funding to enable the Secretary to timely prepare the analysis, documentation, or related study is not appropriated;</text></paragraph> <paragraph id="H528BE08987A7433EA850F6C0162B6F62"><enum>(2)</enum><text>the person paid the costs voluntarily;</text></paragraph> <paragraph id="H6D697F6480584C1C0060006EAC2DE7C"><enum>(3)</enum><text>the person maintains records of its costs in accordance with regulations issued by the Secretary;</text></paragraph> <paragraph id="HE5B5B8B718624B89AA9542A8EE141C07"><enum>(4)</enum><text>the reimbursement is in the form of a reduction in the Federal share of the royalty required to be paid for the lease for which the analysis, documentation, or related study is conducted, and is agreed to by the Secretary and the person reimbursed prior to commencing the analysis, documentation, or related study; and</text></paragraph> <paragraph id="HA482D07128AE45F99BD15B912ECF9453"><enum>(5)</enum><text>the agreement required under paragraph (4) contains provisions—</text> <subparagraph id="H23EB722AD52B45799128ACE260B42D6F"><enum>(A)</enum><text>reducing royalties owed on lease production based on market prices;</text></subparagraph> <subparagraph id="HFB285FCD4D7F43A88145D6A74388BCA4"><enum>(B)</enum><text>stipulating an automatic termination of the royalty reduction upon recovery of documented costs; and</text></subparagraph> <subparagraph id="HE4D54A0D2B244B48A7D1F8DAE781C5B6"><enum>(C)</enum><text>providing a process by which the lessee may seek reimbursement for circumstances in which production from the specified lease is not possible.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H4D5FE0DAF2AA44938D0070D6725568C"><enum>(b)</enum><header>Application</header><text>The amendment made by this section shall apply with respect to an analysis, documentation, or a related study conducted on or after the date of enactment of this Act for any lease entered into before, on, or after the date of enactment of this Act.</text></subsection> <subsection id="HBDECBA9C49D94BA89816EBB1BE28202"><enum>(c)</enum><header>Deadline for regulations</header><text>The Secretary shall issue regulations implementing the amendment made by this section by not later than 1 year after the date of enactment of this Act.</text></subsection></section> <section id="HE444DC06F83843E9B5002FE6CBDD8553"><enum>218.</enum><header>Assessment of Geothermal energy potential</header><text display-inline="no-display-inline">The Secretary of Interior, acting through the Director of the United States Geological Survey and in cooperation with the States, shall update the 1978 Assessment of Geothermal Resources, and submit that updated assessment to Congress—</text> <paragraph id="H48FD97F98C864B7A9BF8971B1E69F19C"><enum>(1)</enum><text>not later than 3 years after the date of enactment of this Act; and</text></paragraph> <paragraph id="H28E0E4C4D1B4470D8C5B26D263486DC8"><enum>(2)</enum><text>thereafter as the availability of data and developments in technology warrant.</text></paragraph></section> <section id="H39AA4C1FFE634CD985B06670D24674C5"><enum>219.</enum><header>Cooperative or Unit plans</header><text display-inline="no-display-inline">Section 18 of the Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1017">30 U.S.C. 1017</external-xref>) is amended to read as follows:</text> <quoted-block id="H460112E922324B9586141671C5DE1DAA"> <section id="H5B3BAEB555664F13B29B6C30144B8EA4"><enum>18.</enum><header>Unit and communitization agreements</header> <subsection id="HC5B72DE9B1F445B582B1A43B149D5600"><enum>(a)</enum><header>Adoption of units by lessees</header> <paragraph id="H1ACAE17F2BD7499E8119FB24E4DF66E"><enum>(1)</enum><header>In General</header><text>For the purpose of more properly conserving the natural resources of any geothermal reservoir, field, or like area, or any part thereof (whether or not any part of the geothermal field, or like area, is then subject to any Unit Agreement (cooperative plan of development or operation)), lessees thereof and their representatives may unite with each other, or jointly or separately with others, in collectively adopting and operating under a Unit Agreement for such field, or like area, or any part thereof including direct use resources, if determined and certified by the Secretary to be necessary or advisable in the public interest. A majority interest of owners of any single lease shall have the authority to commit that lease to a Unit Agreement. The Secretary of the Interior may also initiate the formation of a Unit Agreement if in the public interest.</text></paragraph> <paragraph id="H276A63961E2243D497F864655EAA1BA3"><enum>(2)</enum><header>Modification of lease requirements by Secretary</header><text>The Secretary may, in the discretion of the Secretary, and with the consent of the holders of leases involved, establish, alter, change, or revoke rates of operations (including drilling, operations, production, and other requirements) of such leases and make conditions with reference to such leases, with the consent of the lessees, in connection with the creation and operation of any such Unit Agreement as the Secretary may deem necessary or proper to secure the proper protection of the public interest. Leases with unlike lease terms or royalty rates do not need to be modified to be in the same unit.</text></paragraph></subsection> <subsection id="H3677B8E100684C0CB2B2FB4FAEC36E9B"><enum>(b)</enum><header>Requirement of plans under new leases</header><text>The Secretary—</text> <paragraph id="H5FF87F5B39A44532BF271444BC184F2E"><enum>(1)</enum><text>may provide that geothermal leases issued under this Act shall contain a provision requiring the lessee to operate under such a reasonable Unit Agreement; and</text></paragraph> <paragraph id="H8D2A22D740284542BC1600D35670CF63"><enum>(2)</enum><text>may prescribe such an Agreement under which such lessee shall operate, which shall adequately protect the rights of all parties in interest, including the United States.</text></paragraph></subsection> <subsection id="H6682C943D614494683CC9D00CC81A942"><enum>(c)</enum><header>Modification of rate of prospecting, development, and production</header><text>The Secretary may require that any Agreement authorized by this section that applies to lands owned by the United States contain a provision under which authority is vested in the Secretary, or any person, committee, or State or Federal officer or agency as may be designated in the Agreement to alter or modify from time to time the rate of prospecting and development and the quantity and rate of production under such an Agreement.</text></subsection> <subsection id="HB3A01D136CDE4D4DB8700012929005EF"><enum>(d)</enum><header>Exclusion from determination of holding or control</header><text>Any lands that are subject to any Agreement approved or prescribed by the Secretary under this section shall not be considered in determining holdings or control under any provision of this Act.</text></subsection> <subsection id="H124E3B8C3E9F4E3400E36D1CCA2B6E48"><enum>(e)</enum><header>Pooling of certain lands</header><text>If separate tracts of lands cannot be independently developed and operated to use geothermal steam and associated geothermal resources pursuant to any section of this Act—</text> <paragraph id="H0CD9296826AA4A33A51739C7B8A92423"><enum>(1)</enum><text>such lands, or a portion thereof, may be pooled with other lands, whether or not owned by the United States, for purposes of development and operation under a Communitization Agreement providing for an apportionment of production or royalties among the separate tracts of land comprising the production unit, if such pooling is determined by the Secretary to be in the public interest; and</text></paragraph> <paragraph id="HF53FEE8C822E42DAA620705535335B49"><enum>(2)</enum><text>operation or production pursuant to such an Agreement shall be treated as operation or production with respect to each tract of land that is subject to the agreement.</text></paragraph></subsection> <subsection id="H528CC2E4C5A541DDA823E35F5D516366"><enum>(f)</enum><header>Unit Agreement review</header><text>No more than 5 years after approval of any cooperative or Unit Agreement and at least every 5 years thereafter, the Secretary shall review each such Agreement and, after notice and opportunity for comment, eliminate from inclusion in such Agreement any lands that the Secretary determines are not reasonably necessary for Unit operations under the Agreement. Such elimination shall be based on scientific evidence, and shall occur only if it is determined by the Secretary to be for the purpose of conserving and properly managing the geothermal resource. Any land so eliminated shall be eligible for an extension under subsection (g) of section 6 if it meets the requirements for such an extension.</text></subsection> <subsection id="H32A931C7551D41AFBDCBFDA841E4F553"><enum>(g)</enum><header>Drilling or development contracts</header><text>The Secretary may, on such conditions as the Secretary may prescribe, approve drilling or development contracts made by 1 or more lessees of geothermal leases, with 1 or more persons, associations, or corporations if, in the discretion of the Secretary, the conservation of natural resources or the public convenience or necessity may require or the interests of the United States may be best served thereby. All leases operated under such approved drilling or development contracts, and interests thereunder, shall be excepted in determining holdings or control under section 7.</text></subsection> <subsection id="H209C7A2EB13D4F09871390A133EC448D"><enum>(h)</enum><header>Coordination with State governments</header><text>The Secretary shall coordinate unitization and pooling activities with the appropriate State agencies and shall ensure that State leases included in any unitization or pooling arrangement are treated equally with Federal leases.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H23E20C906169414285346CC136BC11DA"><enum>220.</enum><header>Royalty on byproducts</header><text display-inline="no-display-inline">Section 5 of the Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1004">30 U.S.C. 1004</external-xref>) is further amended in subsection (a) by striking paragraph (2) and inserting the following:</text> <quoted-block id="HC4D2734A2BFC48278072ACAB4BB70041"> <paragraph id="HF92D040808DE433E84BD1D4075A985F0"><enum>(2)</enum><text>a royalty on any byproduct that is a mineral named in the first section of the <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/30/181">30 U.S.C. 181</external-xref>), and that is derived from production under the lease, at the rate of the royalty that applies under that Act to production of such mineral under a lease under that Act;</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H7B2E2011D3374ECF9053BCA38EA401EB"><enum>221.</enum><header>Repeal of authorities of Secretary to readjust terms, conditions, rentals, and royalties</header><text display-inline="no-display-inline">Section 8 of the Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1007">30 U.S.C. 1007</external-xref>) is amended by repealing subsection (b), and by redesignating subsection (c) as subsection (b).</text></section> <section id="H909F805888134B6FB927ED00DD889444"><enum>222.</enum><header>Crediting of rental toward royalty</header><text display-inline="no-display-inline">Section 5 of the Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1004">30 U.S.C. 1004</external-xref>) is further amended—</text> <paragraph id="H949B33F1DC10462B9B925BBCFE2E05F0"><enum>(1)</enum><text>in subsection (a)(2) by inserting <quote>and</quote> after the semicolon at the end;</text></paragraph> <paragraph id="HA2FC3AF293C246FCBD1356CAFA11D031"><enum>(2)</enum><text>in subsection (a)(3) by striking <quote>; and</quote> and inserting a period;</text></paragraph> <paragraph id="HB6DA8E0F62BA41AD995217A099250312"><enum>(3)</enum><text>by striking paragraph (4) of subsection (a); and</text></paragraph> <paragraph id="HA110534850874B9082FF14959C21AD8F"><enum>(4)</enum><text>by adding at the end the following:</text> <quoted-block id="H8E48D6A81CB3456F928E1DCF6666C87B"> <subsection id="H080423711A5F4E25AF9EB2B1FCCA85BA"><enum>(e)</enum><header>Crediting of rental toward royalty</header><text>Any annual rental under this section that is paid with respect to a lease before the first day of the year for which the annual rental is owed shall be credited to the amount of royalty that is required to be paid under the lease for that year.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H8FD63BCC04C047D092BA6B5930382900"><enum>223.</enum><header>Lease duration and work commitment requirements</header><text display-inline="no-display-inline">Section 6 of the Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1005">30 U.S.C. 1005</external-xref>) is amended—</text> <paragraph id="H45C5E7552C3B4DD590BAF6A61098B6ED"><enum>(1)</enum><text>by striking so much as precedes subsection (c), and striking subsections (e), (g), (h), (i), and (j);</text></paragraph> <paragraph id="HD816C5121D3C4E89A0C7009751834426"><enum>(2)</enum><text>by redesignating subsections (c), (d), and (f) in order as subsections (g), (h), and (i); and</text></paragraph> <paragraph id="H397047E0F9E34FCEB2B94F1934000090"><enum>(3)</enum><text>by inserting before subsection (g), as so redesignated, the following:</text> <quoted-block id="HDAD8DFA537794AFC006554F5B6295D08"> <section id="H2FDE1E205E89488BA0200433C272A7AC"><enum>6.</enum><header>Lease term and work commitment requirements</header> <subsection id="H34D04B7B4EA146C2A8CDC403E500FD15"><enum>(a)</enum><header>In General</header> <paragraph id="HDDE1E44A032748F4B228134250704C2D"><enum>(1)</enum><header>Primary term</header><text>A geothermal lease shall be for a primary term of 10 years.</text></paragraph> <paragraph id="HA3F7C3B32E694DEC9E592EC5F1007B55"><enum>(2)</enum><header>Initial extension</header><text>The Secretary shall extend the primary term of a geothermal lease for 5 years if, for each year after the fifth year of the lease—</text> <subparagraph id="H24D4A41EF8A342E8A1399F43D43D2884"><enum>(A)</enum><text>the Secretary determined under subsection (c) that the lessee satisfied the work commitment requirements that applied to the lease for that year; or</text></subparagraph> <subparagraph id="H96A00CF18DA24B3DB08DF5A36E6CEC01"><enum>(B)</enum><text>the lessee paid in accordance with subsection (d) the value of any work that was not completed in accordance with those requirements.</text></subparagraph></paragraph> <paragraph id="HE7889944A5B049189FD148261900D4AB"><enum>(3)</enum><header>Additional extension</header><text>The Secretary shall extend the primary term of a geothermal lease (after an initial extension under paragraph (2)) for an additional 5 years if, for each year of the initial extension under paragraph (2), the Secretary determined under subsection (c) that the lessee satisfied the work commitment requirements that applied to the lease for that year.</text></paragraph></subsection> <subsection id="H1A0369DAEA974F6FAAD65A1BEE39DB6"><enum>(b)</enum><header>Requirement to satisfy annual work commitment requirement</header> <paragraph id="HD7FE4F48345A4F4994910725503CC487"><enum>(1)</enum><header>In General</header><text>The lessee for a geothermal lease shall, for each year after the fifth year of the lease, satisfy work commitment requirements prescribed by the Secretary that apply to the lease for that year.</text></paragraph> <paragraph id="HE0A55D18E6AA498EAE00C495C699CE7C"><enum>(2)</enum><header>Prescription of work commitment requirements</header><text>The Secretary shall issue regulations prescribing minimum equivalent dollar value work commitment requirements for geothermal leases, that—</text> <subparagraph id="H5DA0AA3030234E5EA76918E5A4A5F200"><enum>(A)</enum><text>require that a lessee, in each year after the fifth year of the primary term of a geothermal lease, diligently work to achieve commercial production or utilization of steam under the lease;</text></subparagraph> <subparagraph id="H8BF2930423D94194BE73F14CC6B70217"><enum>(B)</enum><text>require that in each year to which work commitment requirements under the regulations apply, the lessee shall significantly reduce the amount of work that remains to be done to achieve such production or utilization;</text></subparagraph> <subparagraph id="H4A4B5C9539464E43A600033637929800"><enum>(C)</enum><text>describe specific work that must be completed by a lessee by the end of each year to which the work commitment requirements apply and factors, such as force majeure events, that suspend or modify the work commitment obligation;</text></subparagraph> <subparagraph id="H06723E6531B849A68FB856C300DB8094"><enum>(D)</enum><text>carry forward and apply to work commitment requirements for a year, work completed in any year in the preceding 3-year period that was in excess of the work required to be performed in that preceding year;</text></subparagraph> <subparagraph id="H484BEDD2122B41BD994DC27E9478698C"><enum>(E)</enum><text>establish transition rules for leases issued before the date of the enactment of this subsection, including terms under which a lease that is near the end of its term on the date of enactment of this subsection may be extended for up to 2 years—</text> <clause id="HC2279C38C1814C87AFBB57FF3B522B68"><enum>(i)</enum><text>to allow achievement of production under the lease; or</text></clause> <clause id="H53E023EF8FE840EF8DE14F3D2F91C86C"><enum>(ii)</enum><text>to allow the lease to be included in a producing unit; and</text></clause></subparagraph> <subparagraph id="HF4BAC4224EEC421190EEC8C6B5E4503"><enum>(F)</enum><text>establish an annual payment that, at the option of the lessee, may be exercised in lieu of meeting any work requirement for a limited number of years that the Secretary determines will not impair achieving diligent development of the geothermal resource.</text></subparagraph></paragraph> <paragraph id="H11778A1D811E4AC08B21ED3480B5EF99"><enum>(3)</enum><header>Termination of application of requirements</header><text>Work commitment requirements prescribed under this subsection shall not apply to a geothermal lease after the date on which geothermal steam is produced or utilized under the lease in commercial quantities.</text></paragraph></subsection> <subsection id="H2B73BD9915074D85980077F4EA17C67B"><enum>(c)</enum><header>Determination of whether requirements satisfied</header><text>The Secretary shall, by not later than 90 days after the end of each year for which work commitment requirements under subsection (b) apply to a geothermal lease—</text> <paragraph id="HB425ACE3A90D430E8D2E9651D231367E"><enum>(1)</enum><text>determine whether the lessee has satisfied the requirements that apply for that year;</text></paragraph> <paragraph id="H399ECEE8925A4AB8A8C72640C5B58DF"><enum>(2)</enum><text>notify the lessee of that determination; and</text></paragraph> <paragraph id="H6892E5BBA75B49A783EFDB186F5E7727"><enum>(3)</enum><text>in the case of a notification that the lessee did not satisfy work commitment requirements for the year, include in the notification—</text> <subparagraph id="H85CFA018AC754F488ED8540000644FF"><enum>(A)</enum><text>a description of the specific work that was not completed by the lessee in accordance with the requirements; and</text></subparagraph> <subparagraph id="HCE5C506E7BC84EC2A8A212C39FFD0022"><enum>(B)</enum><text>the amount of the dollar value of such work that was not completed, reduced by the amount of expenditures made for work completed in a prior year that is carried forward pursuant to subsection (b)(2)(D).</text></subparagraph></paragraph></subsection> <subsection id="H48F91199158740298EB02444DBD067C"><enum>(d)</enum><header>Payment of value of uncompleted work</header> <paragraph id="HB6D67EF6AB4342308F07FD35A28B75F3"><enum>(1)</enum><header>In General</header><text>If the Secretary notifies a lessee that the lessee failed to satisfy work commitment requirements under subsection (b), the lessee shall pay to the Secretary, by not later than the end of the 60-day period beginning on the date of the notification, the dollar value of work that was not completed by the lessee, in the amount stated in the notification (as reduced under subsection (c)(3)(B)).</text></paragraph> <paragraph id="H891C50237A01479EB0EA9D86EFDF1167"><enum>(2)</enum><header>Failure to pay value of uncompleted work</header><text>If a lessee fails to pay such amount to the Secretary before the end of that period, the lease shall terminate upon the expiration of the period.</text></paragraph></subsection> <subsection id="H871462519E594BC8AA11C55800C18FBA"><enum>(e)</enum><header>Continuation after commercial production or utilization</header><text>If geothermal steam is produced or utilized in commercial quantities within the primary term of the lease under subsection (a) (including any extension of the lease under subsection (a)), such lease shall continue until the date on which geothermal steam is no longer produced or utilized in commercial quantities.</text></subsection> <subsection id="HF001CB68BB3742C8A2FE4378CA6CAB"><enum>(f)</enum><header>Conversion of Geothermal lease to mineral lease</header><text>The lessee under a lease that has produced geothermal steam for electrical generation, has been determined by the Secretary to be incapable of any further commercial production or utilization of geothermal steam, and that is producing any valuable byproduct in payable quantities may, within 6 months after such determination—</text> <paragraph id="H5A4D307401B54DB682C80027D80010C6"><enum>(1)</enum><text>convert the lease to a mineral lease under the <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/30/181">30 U.S.C. 181 et seq.</external-xref>) or under the <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> for Acquired Lands (<external-xref legal-doc="usc" parsable-cite="usc/30/351">30 U.S.C. 351 et seq.</external-xref>), if the lands that are subject to the lease can be leased under that Act for the production of such byproduct; or</text></paragraph> <paragraph id="H559D514BAF764734AE6B00FECB59A40"><enum>(2)</enum><text>convert the lease to a mining claim under the general mining laws, if the byproduct is a locatable mineral.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="HE6FA82EEA8A54BB691DAC3BAACE4D3E5"><enum>224.</enum><header>Advanced royalties required for suspension of production</header><text display-inline="no-display-inline">Section 5 of the Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1004">30 U.S.C. 1004</external-xref>) is further amended by adding at the end the following:</text> <quoted-block id="HF0D8757784E645F38F92AA52B57C00A6"> <subsection id="H7A1A58D9D76D434C989485213668B303"><enum>(f)</enum><header>Advanced royalties required for suspension of production</header> <paragraph id="H2DB74CE1BA5F4841BB4D7F1368B8CF77"><enum>(1)</enum><header>Continuation of lease following cessation of production</header><text>If, at any time after commercial production under a lease is achieved, production ceases for any cause the lease shall remain in full force and effect—</text> <subparagraph id="HE9D2B6376B814AFEAA81C2E5D525BD2"><enum>(A)</enum><text>during the 1-year period beginning on the date production ceases; and</text></subparagraph> <subparagraph id="H09F834FCFDB24057B21884BFF9A2006C"><enum>(B)</enum><text>after such period if, and so long as, the lessee commences and continues diligently and in good faith until such production is resumed the steps, operations, or procedures necessary to cause a resumption of such production.</text></subparagraph></paragraph> <paragraph id="H8AAB8828ED7741EC00A97D6CCD3E214D"><enum>(2)</enum><text>If production of heat or energy under a geothermal lease is suspended after the date of any such production for which royalty is required under subsection (a) and the terms of paragraph (1) are not met, the Secretary shall require the lessee, until the end of such suspension, to pay royalty in advance at the monthly pro-rata rate of the average annual rate at which such royalty was paid each year in the 5-year-period preceding the date of suspension.</text></paragraph> <paragraph id="HED098EB0A8504E20ACF87516DF4DE5DA"><enum>(3)</enum><text>Paragraph (2) shall not apply if the suspension is required or otherwise caused by the Secretary, the Secretary of a military department, a State or local government, or a force majeure.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HFAA249AADDD34B43BF84761D2BF93D00"><enum>225.</enum><header>Annual rental</header> <subsection id="H4097C751FEB04821AAAE86E10073E65"><enum>(a)</enum><header>Annual rental rate</header><text>Section 5 of the Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1004">30 U.S.C. 1004</external-xref>) is further amended in subsection (a) in paragraph (3) by striking <quote>$1 per acre or fraction thereof for each year of the lease</quote> and all that follows through the end of the paragraph and inserting <quote>$1 per acre or fraction thereof for each year of the lease through the tenth year in the case of a lease awarded in a noncompetitive lease sale; or $2 per acre or fraction thereof for the first year, $3 per acre or fraction thereof for each of the second through tenth years, in the case of a lease awarded in a competitive lease sale; and $5 per acre or fraction thereof for each year after the 10th year thereof for all leases.</quote>.</text></subsection> <subsection id="H8B43D03213AC475FA0AD1D28B0AC4EEE"><enum>(b)</enum><header>Termination of lease for failure to pay rental</header><text>Section 5 of the Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1004">30 U.S.C. 1004</external-xref>) is further amended by adding at the end the following:</text> <quoted-block id="H489421697B0B4EE2A7307CCAA96DA400"> <subsection id="H7CDBFFC64E824C8FB87BA095D0CF37C5"><enum>(g)</enum><header>Termination of lease for failure to pay rental</header> <paragraph id="H6CE13CB9D1CD49F197A4A89CA344B9DB"><enum>(1)</enum><header>In General</header><text>The Secretary shall terminate any lease with respect to which rental is not paid in accordance with this Act and the terms of the lease under which the rental is required, upon the expiration of the 45-day period beginning on the date of the failure to pay such rental.</text></paragraph> <paragraph id="H380DEDC71819441FB4E542EA00A7257D"><enum>(2)</enum><header>Notification</header><text>The Secretary shall promptly notify a lessee that has not paid rental required under the lease that the lease will be terminated at the end of the period referred to in paragraph (1).</text></paragraph> <paragraph id="H7DC72DA1960F49D9BE41BCBA9429605"><enum>(3)</enum><header>Reinstatement</header><text>A lease that would otherwise terminate under paragraph (1) shall not terminate under that paragraph if the lessee pays to the Secretary, before the end of the period referred to in paragraph (1), the amount of rental due plus a late fee equal to 10 percent of such amount.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="H8312974431614257BA4C4C5F00A3719B"><enum>226.</enum><header>Leasing and permitting on Federal lands withdrawn for military purposes</header><text display-inline="no-display-inline">Not later than 2 years after the date of enactment of this Act, the Secretary of the Interior and the Secretary of Defense, in consultation with each military service and with interested States, counties, representatives of the geothermal industry, and other persons, shall submit to Congress a joint report concerning leasing and permitting activities for geothermal energy on Federal lands withdrawn for military purposes. Such report shall include the following:</text> <paragraph id="H1DEF5833D1BF4BDDB3F2A41C2048F8F7"><enum>(1)</enum><text>A description of the Military Geothermal Program, including any differences between it and the non-Military Geothermal Program, including required security procedures, and operational considerations, and discussions as to the differences, and why they are important. Further, the report shall describe revenues or energy provided to the Department of Defense and its facilities, royalty structures, where applicable, and any revenue sharing with States and counties or other benefits between—</text> <subparagraph id="H0953F4407133461DA687A0A065B6EEC"><enum>(A)</enum><text>the implementation of the Geothermal Steam Act of 1970 (30 U.S.C 1001 et seq.) and other applicable Federal law by the Secretary of the Interior; and</text></subparagraph> <subparagraph id="H07A85F68C405478ABF9CD8FF73B25F21"><enum>(B)</enum><text>the administration of geothermal leasing under <external-xref legal-doc="usc" parsable-cite="usc/10/2689">section 2689</external-xref> of title 10, United States Code, by the Secretary of Defense.</text></subparagraph></paragraph> <paragraph id="HF836F6BB0356453BA39E4EB0941F00AD"><enum>(2)</enum><text>If appropriate, a description of the current methods and procedures used to ensure interagency coordination, where needed, in developing renewable energy sources on Federal lands withdrawn for military purposes, and an identification of any new procedures that might be required in the future for the improvement of interagency coordination to ensure efficient processing and administration of leases or contracts for geothermal energy on Federal lands withdrawn for military purposes, consistent with the defense purposes of such withdrawals.</text></paragraph> <paragraph id="H71D28D7026724B76A9404955E95F2440"><enum>(3)</enum><text>Recommendations for any legislative or administrative actions that might better achieve increased geothermal production, including a common royalty structure, leasing procedures, or other changes that increase production, offset military operation costs, or enhance the Federal agencies’ ability to develop geothermal resources.</text></paragraph><continuation-text continuation-text-level="section">Except as provided in this section, nothing in this subtitle shall affect the legal status of the Department of the Interior and the Department of the Defense with respect to each other regarding geothermal leasing and development until such status is changed by law.</continuation-text></section> <section id="H5D524F73501F464E86A2A5B257B0842E"><enum>227.</enum><header>Technical amendments</header><text display-inline="no-display-inline">The Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1001">30 U.S.C. 1001 et seq.</external-xref>) is further amended as follows:</text> <paragraph id="HD432C83595EC4B7A91B911F03E83BA95"><enum>(1)</enum><text>By striking <quote>geothermal steam and associated geothermal resources</quote> each place it appears and inserting <quote>geothermal resources</quote>.</text></paragraph> <paragraph id="HB8AC652D68E848F69DF86BB54AEBDBF"><enum>(2)</enum><text>Section 2(e) (<external-xref legal-doc="usc" parsable-cite="usc/30/1001">30 U.S.C. 1001(e)</external-xref>) is amended to read as follows:</text> <quoted-block id="H29378C8CB9BB43229C00B96BBEB6100"> <paragraph id="HD16FB68467BB44CB981ED138533CCF91"><enum>(e)</enum><text><quote>direct use</quote> means utilization of geothermal resources for commercial, residential, agricultural, public facilities, or other energy needs other than the commercial production of electricity; and</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HF129D1886DB249E80053C779DDD9007F"><enum>(3)</enum><text>Section 21 (<external-xref legal-doc="usc" parsable-cite="usc/30/1020">30 U.S.C. 1020</external-xref>) is amended by striking <quote>(a) Within one hundred</quote> and all that follows through <quote>(b) Geothermal</quote> and inserting <quote>Geothermal</quote>.</text></paragraph> <paragraph id="H61D2892430A947039F581E12C951F3F0"><enum>(4)</enum><text>The first section (<external-xref legal-doc="usc" parsable-cite="usc/30/1001">30 U.S.C. 1001</external-xref> note) is amended by striking <quote>That this</quote> and inserting the following:</text> <quoted-block id="HE153834A326641FF85859477EE1F9883"> <section id="H4C570A25ECF340C59BD47FE06198A07C"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H9C9DE34C532544AEA9154157F5A73F58"><enum>(5)</enum><text>Section 2 (<external-xref legal-doc="usc" parsable-cite="usc/30/1001">30 U.S.C. 1001</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 2.</header-in-text> As</quote> and inserting the following:</text> <quoted-block id="H007D60BEFAE74E0EB9A8101D45002C76"> <section id="HE4D63DFA7CB44747B8D3936064F40013"><enum>2.</enum><header>Definitions</header><text display-inline="no-display-inline">As</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HCE0C3F63526D477A8B7F39C1084DBED1"><enum>(6)</enum><text>Section 3 (<external-xref legal-doc="usc" parsable-cite="usc/30/1002">30 U.S.C. 1002</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 3.</header-in-text> Subject</quote> and inserting the following:</text> <quoted-block id="H525182E4AFE74164841F1E0031A816FC"> <section id="HE93FB8B054764DC68947C300BD1C3C00"><enum>3</enum><header>. lands subject to Geothermal leasing</header><text display-inline="no-display-inline">Subject</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H88CE11D8A93441D08F9C8963FF68A4C1"><enum>(7)</enum><text>Section 5 (<external-xref legal-doc="usc" parsable-cite="usc/30/1004">30 U.S.C. 1004</external-xref>) is further amended by striking <quote><header-in-text level="subsection">Sec. 5.</header-in-text></quote>, and by inserting immediately before and above subsection (a) the following:</text> <quoted-block id="H74C98232B3A140C3B9F6F6342154122D"> <section id="H09C133C929C0400984A666BB6D1E4D7B"><enum>5.</enum><header>Rents and royalties</header></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H5BA3F69B3A3349DD831B984C6609F18D"><enum>(8)</enum><text>Section 7 (<external-xref legal-doc="usc" parsable-cite="usc/30/1006">30 U.S.C. 1006</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 7.</header-in-text> A geothermal</quote> and inserting the following:</text> <quoted-block id="H62BFB6826AA64880B44664002EB545DB"> <section id="H1DCCA1CD96484CEBAC00A5D86C149938"><enum>7.</enum><header>Acreage of Geothermal lease</header><text display-inline="no-display-inline">A geothermal</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H9589A5A347E646F39469B736AEDD24A5"><enum>(9)</enum><text>Section 8 (<external-xref legal-doc="usc" parsable-cite="usc/30/1007">30 U.S.C. 1007</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 8.</header-in-text> (a) The</quote> and inserting the following:</text> <quoted-block id="HE6C0B13D587E4D3D89ADAE63FCC559C9"> <section id="H3DF037AFF2B443E08B24272D22028C4C"><enum>8.</enum><header>Readjustment of lease terms and conditions</header> <subsection id="HC9CF004B6A0543AC87F8C988B4BCF91F"><enum>(a)</enum><text>The</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H10CFD3D73C61453EB3BF930048AAC8B8"><enum>(10)</enum><text>Section 9 (<external-xref legal-doc="usc" parsable-cite="usc/30/1008">30 U.S.C. 1008</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 9.</header-in-text> If</quote> and inserting the following:</text> <quoted-block id="HCF51208558764DD8AEE849CCA02EED69"> <section id="H152F0EC219A34BFC917E0194D500EE34"><enum>9.</enum><header>Byproducts</header><text display-inline="no-display-inline">If</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HBF083074B6DF4BE6A4006F35DE10CAFE"><enum>(11)</enum><text>Section 10 (<external-xref legal-doc="usc" parsable-cite="usc/30/1009">30 U.S.C. 1009</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 10.</header-in-text> The</quote> and inserting the following:</text> <quoted-block id="H3935B65DE0374DA3B583A061E23745D0"> <section id="H6C7CAF3639744B5EBE94006DADE391F"><enum>10.</enum><header>Relinquishment of Geothermal rights</header><text display-inline="no-display-inline">The</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HAA31FDC5EEBE43CD84DF081D1D553731"><enum>(12)</enum><text>Section 11 (<external-xref legal-doc="usc" parsable-cite="usc/30/1010">30 U.S.C. 1010</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 11.</header-in-text> The</quote> and inserting the following:</text> <quoted-block id="H0206FEE67CBE45A0825000E116064785"> <section id="HD2D50F305E7E4F9AA362CF6195E9E37"><enum>11.</enum><header>Suspension of operations and production</header><text display-inline="no-display-inline">The</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H6BF7B854A5FD43BEA67FD4549979A63C"><enum>(13)</enum><text>Section 12 (<external-xref legal-doc="usc" parsable-cite="usc/30/1011">30 U.S.C. 1011</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 12.</header-in-text> Leases</quote> and inserting the following:</text> <quoted-block id="HFB1777D272F64EA7BB503B57F6FF7E69"> <section id="HCFAC7B7B9FBE47618F0015AE22BB405E"><enum>12.</enum><header>Termination of leases</header><text display-inline="no-display-inline">Leases</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H24A3F21B24874C1D92565100A4A9D5AB"><enum>(14)</enum><text>Section 13 (<external-xref legal-doc="usc" parsable-cite="usc/30/1012">30 U.S.C. 1012</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 13.</header-in-text> The</quote> and inserting the following:</text> <quoted-block id="H82A366EA331E4AB5BAAE039746CC59E5"> <section id="H222383F35CEA4C95B31329EC9942682"><enum>13.</enum><header>Waiver, suspension, or reduction of rental or royalty</header><text display-inline="no-display-inline">The</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HFDBF624ADE09462397100010B06892AC"><enum>(15)</enum><text>Section 14 (<external-xref legal-doc="usc" parsable-cite="usc/30/1013">30 U.S.C. 1013</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 14.</header-in-text> Subject</quote> and inserting the following:</text> <quoted-block id="HF945BC757F12480890F16074B42337E1"> <section id="H60B7C14366674B859998A509946BF450"><enum>14.</enum><header>Surface land use</header><text display-inline="no-display-inline">Subject</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H5167E4A318584893BD96CFD5CD001700"><enum>(16)</enum><text>Section 15 (<external-xref legal-doc="usc" parsable-cite="usc/30/1014">30 U.S.C. 1014</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 15.</header-in-text> (a) Geothermal</quote> and inserting the following:</text> <quoted-block id="HEC6B4E60234E49F8A7C693D54FA00618"> <section id="HC545BC66271A49DD90F1E2E7E06BB3AE"><enum>15.</enum><header>Lands subject to Geothermal leasing</header> <subsection id="H36CD08CA9C57416C85CD8C41C535A44F"><enum>(a)</enum><text>Geothermal</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HFD67E6B21EE448FE90797CC1BC38DC2"><enum>(17)</enum><text>Section 16 (<external-xref legal-doc="usc" parsable-cite="usc/30/1015">30 U.S.C. 1015</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 16.</header-in-text> Leases</quote> and inserting the following:</text> <quoted-block id="H180E473E6A6F438CB594A7DA7C52E4FF"> <section id="H187008686CF54FF39E8617067B6067F9"><enum>16.</enum><header>Requirement for lessees</header><text display-inline="no-display-inline">Leases</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HD5483C775CC74B30BFCDD629E3C942F"><enum>(18)</enum><text>Section 17 (<external-xref legal-doc="usc" parsable-cite="usc/30/1016">30 U.S.C. 1016</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 17.</header-in-text> Administration</quote> and inserting the following:</text> <quoted-block id="H84E5E2CEB9174E8084FE00D25985242C"> <section id="HD8F5EEC5B8424A41B378221F88DC50D"><enum>17.</enum><header>Administration</header><text display-inline="no-display-inline">Administration</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H6F0314DAE3A8439DAB3DC35B945E92AD"><enum>(19)</enum><text>Section 19 (<external-xref legal-doc="usc" parsable-cite="usc/30/1018">30 U.S.C. 1018</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 19.</header-in-text> Upon</quote> and inserting the following:</text> <quoted-block id="H5675ECCA4EF742E0AA24E3A08F40AEE"> <section id="H6720AF54FE71427CA755797E1402ADC5"><enum>19.</enum><header>Data from Federal agencies</header><text display-inline="no-display-inline">Upon</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H4A8331880C9948D08F6857EF74F80046"><enum>(20)</enum><text>Section 21 (<external-xref legal-doc="usc" parsable-cite="usc/30/1020">30 U.S.C. 1020</external-xref>) is further amended by striking <quote><header-in-text level="subsection">Sec. 21.</header-in-text></quote>, and by inserting immediately before and above the remainder of that section the following:</text> <quoted-block id="HC5D9381117FF41228B22CD838BCCF609"> <section id="H7A1510227ACB44168E70FCABA3FBD372"><enum>21.</enum><header>Publication in Federal register; reservation of mineral rights</header></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H5DCBB999D6D6461B92FDA4F8374B924"><enum>(21)</enum><text>Section 22 (<external-xref legal-doc="usc" parsable-cite="usc/30/1021">30 U.S.C. 1021</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 22.</header-in-text> Nothing</quote> and inserting the following:</text> <quoted-block id="H1AFEE1F4370C413D96589B3D6EDC08B6"> <section id="HE9FDB9B1CC184D0383D932ED16C42430"><enum>22.</enum><header>Federal exemption from State water laws</header><text display-inline="no-display-inline">Nothing</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H093D5B34B76E4F88AE259729D13E14D1"><enum>(22)</enum><text>Section 23 (<external-xref legal-doc="usc" parsable-cite="usc/30/1022">30 U.S.C. 1022</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 23.</header-in-text> (a) All</quote> and inserting the following:</text> <quoted-block id="HB3311DC93925414AA82F81831176F017"> <section id="H9B0D771DEB804F54A4A7BC40DD73502D"><enum>23.</enum><header>Prevention of waste; exclusivity</header> <subsection id="H1D67C7F69E0647829ED7A479F630FB16"><enum>(a)</enum><text>All</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H13497D4135084AF39C742D337B91092B"><enum>(23)</enum><text>Section 24 (<external-xref legal-doc="usc" parsable-cite="usc/30/1023">30 U.S.C. 1023</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 24.</header-in-text> The</quote> and inserting the following:</text> <quoted-block id="HA3E2ED336D084AB19764FE3FB54B5B79"> <section id="H4655C6D0D9EF450C9C497980C681DD05"><enum>24.</enum><header>Rules and regulations</header><text display-inline="no-display-inline">The</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HB3E22684A14F4072A0E8897797066D1E"><enum>(24)</enum><text>Section 25 (<external-xref legal-doc="usc" parsable-cite="usc/30/1024">30 U.S.C. 1024</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 25.</header-in-text> As</quote> and inserting the following:</text> <quoted-block id="HFD4D498B82E34D5D8EFC1470A441C21"> <section id="H73CD7C81310041FEA4CE9FBC83238864"><enum>25.</enum><header>Inclusion of Geothermal leasing under certain other laws</header><text display-inline="no-display-inline">As</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H2A83717BCC6643C3A7F54FE07F75ADB2"><enum>(25)</enum><text>Section 26 is amended by striking <quote><header-in-text level="subsection">Sec. 26.</header-in-text> The</quote> and inserting the following:</text> <quoted-block id="HF8D77599044C4DD59453B2FDD896E0E"> <section id="H9CAE9525872048CFA320CCC203288FBB"><enum>26.</enum><header>Amendment</header><text display-inline="no-display-inline">The</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HAC6A5ED677294CE9819FCAAA86F0846F"><enum>(26)</enum><text>Section 27 (<external-xref legal-doc="usc" parsable-cite="usc/30/1025">30 U.S.C. 1025</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 27.</header-in-text> The</quote> and inserting the following:</text> <quoted-block id="HC14575935CFB4261BAD886E23EDEAD99"> <section id="H9B938BED31C0402395C900DD3D114C29"><enum>27.</enum><header>Federal reservation of certain mineral rights</header><text display-inline="no-display-inline">The</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HDFE9908199B646FE81636299CE10CFA4"><enum>(27)</enum><text>Section 28 (<external-xref legal-doc="usc" parsable-cite="usc/30/1026">30 U.S.C. 1026</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 28. </header-in-text>(a)(1) The</quote> and inserting the following:</text> <quoted-block id="HE6F45E6279EA44AB9EE6E058518EB3AC"> <section id="HC03196C3708A4BA19CAACE097F8245C5"><enum>28.</enum><header>Significant thermal features</header> <subsection id="HAD1F1D2EC93943579BB7397D3CD03C9E"><enum>(a)</enum> <paragraph display-inline="yes-display-inline" id="HA567654B0461448FB892789CFFD4D496"><enum>(1)</enum><text>The</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HB860289CC3F34B4A87661F247E51CE8B"><enum>(28)</enum><text>Section 29 (<external-xref legal-doc="usc" parsable-cite="usc/30/1027">30 U.S.C. 1027</external-xref>) is amended by striking <quote><header-in-text level="subsection">Sec. 29.</header-in-text> The</quote> and inserting the following:</text> <quoted-block id="H8FB3984F8402485DBFC12401CAB299AE"> <section id="H2292821CD25B4B2DB8C07ABB3C7F6B"><enum>29.</enum><header>Land subject to prohibition on leasing</header><text display-inline="no-display-inline">The</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section></subtitle> <subtitle id="H0CD5CD8FA5AB44D6AB6EA6BCCDC6CA53"><enum>C</enum><header>Hydroelectric</header> <part id="H11CF45E77FCF42148449D604605FE124"><enum>I</enum><header>Alternative conditions</header> <section id="HE4CA127DBFDA48E0BBB52BC21ECE466C"><enum>231.</enum><header>Alternative conditions and fishways</header> <subsection id="H26CC8F76E3614C0CAF2EA2FE98898650"><enum>(a)</enum><header>Federal reservations</header><text>Section 4(e) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/797">16 U.S.C. 797(e)</external-xref>) is amended by inserting after <quote>adequate protection and utilization of such reservation.</quote> at the end of the first proviso the following: <quote>The license applicant shall be entitled to a determination on the record, after opportunity for an expedited agency trial-type hearing of any disputed issues of material fact, with respect to such conditions. Such hearing may be conducted in accordance with procedures established by agency regulation in consultation with the Federal Energy Regulatory Commission.</quote>.</text></subsection> <subsection id="H8B726D1AB95F459D8BAA62A7309F3C35"><enum>(b)</enum><header>Fishways</header><text>Section 18 of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/811">16 U.S.C. 811</external-xref>) is amended by inserting after <quote>and such fishways as may be prescribed by the Secretary of Commerce.</quote> the following: <quote>The license applicant shall be entitled to a determination on the record, after opportunity for an expedited agency trial-type hearing of any disputed issues of material fact, with respect to such fishways. Such hearing may be conducted in accordance with procedures established by agency regulation in consultation with the Federal Energy Regulatory Commission.</quote>.</text></subsection> <subsection id="HE433E75AB2984E478B050011B162187C"><enum>(c)</enum><header>Alternative conditions and prescriptions</header><text>Part I of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/791a">16 U.S.C. 791a et seq.</external-xref>) is amended by adding the following new section at the end thereof:</text> <quoted-block id="H58E1ED10E65F4C4C920002BBF84BF7D"> <section id="HF7E61C42BC1F4B61829FA37CA759D58"><enum>33.</enum><header>Alternative conditions and prescriptions</header> <subsection id="HB73C6DC187374EEE893B96995C003B46"><enum>(a)</enum><header>Alternative conditions</header> <paragraph display-inline="yes-display-inline" id="H760C234D83FD4D60A9C9E07C614E4E6"><enum>(1)</enum><text>Whenever any person applies for a license for any project works within any reservation of the United States, and the Secretary of the department under whose supervision such reservation falls (referred to in this subsection as <quote>the Secretary</quote>) deems a condition to such license to be necessary under the first proviso of section 4(e), the license applicant may propose an alternative condition.</text></paragraph> <paragraph id="H7A334153812D4E4BAED0BE16071B6AA" indent="up1"><enum>(2)</enum><text>Notwithstanding the first proviso of section 4(e), the Secretary shall accept the proposed alternative condition referred to in paragraph (1), and the Commission shall include in the license such alternative condition, if the Secretary determines, based on substantial evidence provided by the license applicant or otherwise available to the Secretary, that such alternative condition—</text> <subparagraph id="HE69AAD1F15E848E1BEDFD1CF6C8661BB"><enum>(A)</enum><text>provides for the adequate protection and utilization of the reservation; and</text></subparagraph> <subparagraph id="H6D10C693E9234FE3A12081A64DB917A0"><enum>(B)</enum><text>will either—</text> <clause id="H37C563840DA64A42A8B6E45E67E4D190"><enum>(i)</enum><text>cost less to implement; or</text></clause> <clause id="H7085B845D20647689C05E21F25E91CC4"><enum>(ii)</enum><text>result in improved operation of the project works for electricity production,</text></clause><continuation-text continuation-text-level="subparagraph">as compared to the condition initially deemed necessary by the Secretary.</continuation-text></subparagraph></paragraph> <paragraph indent="up1" id="HB586C71364B04C5DBA6B589E72E1A112"><enum>(3)</enum><text>The Secretary shall submit into the public record of the Commission proceeding with any condition under section 4(e) or alternative condition it accepts under this section, a written statement explaining the basis for such condition, and reason for not accepting any alternative condition under this section. The written statement must demonstrate that the Secretary gave equal consideration to the effects of the condition adopted and alternatives not accepted on energy supply, distribution, cost, and use; flood control; navigation; water supply; and air quality (in addition to the preservation of other aspects of environmental quality); based on such information as may be available to the Secretary, including information voluntarily provided in a timely manner by the applicant and others. The Secretary shall also submit, together with the aforementioned written statement, all studies, data, and other factual information available to the Secretary and relevant to the Secretary’s decision.</text></paragraph> <paragraph indent="up1" id="HF23BB79C18A64A0FA7F54E042C56CB3D"><enum>(4)</enum><text>Nothing in this section shall prohibit other interested parties from proposing alternative conditions.</text></paragraph> <paragraph indent="up1" id="H323C4752AC814198B371FF1B5ED3A4A1"><enum>(5)</enum><text>If the Secretary does not accept an applicant’s alternative condition under this section, and the Commission finds that the Secretary’s condition would be inconsistent with the purposes of this part, or other applicable law, the Commission may refer the dispute to the Commission’s Dispute Resolution Service. The Dispute Resolution Service shall consult with the Secretary and the Commission and issue a non-binding advisory within 90 days. The Secretary may accept the Dispute Resolution Service advisory unless the Secretary finds that the recommendation will not provide for the adequate protection and utilization of the reservation. The Secretary shall submit the advisory and the Secretary’s final written determination into the record of the Commission’s proceeding.</text></paragraph></subsection> <subsection id="HD82C311FA92E4C809423AF3DA4231C29"><enum>(b)</enum><header>Alternative prescriptions</header> <paragraph display-inline="yes-display-inline" id="HE8DD441316AB467EBCFAA1003B58F3A"><enum>(1)</enum><text>Whenever the Secretary of the Interior or the Secretary of Commerce prescribes a fishway under section 18, the license applicant or licensee may propose an alternative to such prescription to construct, maintain, or operate a fishway.</text></paragraph> <paragraph indent="up1" id="H39695F0BF0764151A97C41DD10CC003C"><enum>(2)</enum><text>Notwithstanding section 18, the Secretary of the Interior or the Secretary of Commerce, as appropriate, shall accept and prescribe, and the Commission shall require, the proposed alternative referred to in paragraph (1), if the Secretary of the appropriate department determines, based on substantial evidence provided by the licensee or otherwise available to the Secretary, that such alternative—</text> <subparagraph id="H8460D8FFE477401CB051CFBC1ED2057"><enum>(A)</enum><text>will be no less protective than the fishway initially prescribed by the Secretary; and</text></subparagraph> <subparagraph id="HF652E687BBB74EB9977CB4C45CF1681"><enum>(B)</enum><text>will either—</text> <clause id="H9EB9BDAAB0C942C9B6B370A252B5D200"><enum>(i)</enum><text>cost less to implement; or</text></clause> <clause id="HCADF0073D76D477391B4F994129ED5F6"><enum>(ii)</enum><text>result in improved operation of the project works for electricity production,</text></clause><continuation-text continuation-text-level="subparagraph">as compared to the fishway initially deemed necessary by the Secretary.</continuation-text></subparagraph></paragraph> <paragraph indent="up1" id="HCEE16C34AEEA48BBA5A182B1F4BBAABF"><enum>(3)</enum><text>The Secretary concerned shall submit into the public record of the Commission proceeding with any prescription under section 18 or alternative prescription it accepts under this section, a written statement explaining the basis for such prescription, and reason for not accepting any alternative prescription under this section. The written statement must demonstrate that the Secretary gave equal consideration to the effects of the condition adopted and alternatives not accepted on energy supply, distribution, cost, and use; flood control; navigation; water supply; and air quality (in addition to the preservation of other aspects of environmental quality); based on such information as may be available to the Secretary, including information voluntarily provided in a timely manner by the applicant and others. The Secretary shall also submit, together with the aforementioned written statement, all studies, data, and other factual information available to the Secretary and relevant to the Secretary’s decision.</text></paragraph> <paragraph indent="up1" id="HF9BCAF1D2E65472D9D122E8120ACCC56"><enum>(4)</enum><text>Nothing in this section shall prohibit other interested parties from proposing alternative prescriptions.</text></paragraph> <paragraph indent="up1" id="H9E86CDB2B8B44FBBBC5389978672E793"><enum>(5)</enum><text>If the Secretary concerned does not accept an applicant’s alternative prescription under this section, and the Commission finds that the Secretary’s prescription would be inconsistent with the purposes of this part, or other applicable law, the Commission may refer the dispute to the Commission’s Dispute Resolution Service. The Dispute Resolution Service shall consult with the Secretary and the Commission and issue a non-binding advisory within 90 days. The Secretary may accept the Dispute Resolution Service advisory unless the Secretary finds that the recommendation will be less protective than the fishway initially prescribed by the Secretary. The Secretary shall submit the advisory and the Secretary’s final written determination into the record of the Commission’s proceeding.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section></part> <part id="HF4903A08687E4CC8BAF850742EE6E16D"><enum>II</enum><header>Additional hydropower</header> <section id="HB0D25196B06D40FC87EDEECF0093B5EA"><enum>241.</enum><header>Hydroelectric production incentives</header> <subsection id="H00AB7737A7F048ECB9A7A0000EE0345"><enum>(a)</enum><header>Incentive payments</header><text>For electric energy generated and sold by a qualified hydroelectric facility during the incentive period, the Secretary of Energy (referred to in this section as the <quote>Secretary</quote>) shall make, subject to the availability of appropriations, incentive payments to the owner or operator of such facility. The amount of such payment made to any such owner or operator shall be as determined under subsection (e) of this section. Payments under this section may only be made upon receipt by the Secretary of an incentive payment application which establishes that the applicant is eligible to receive such payment and which satisfies such other requirements as the Secretary deems necessary. Such application shall be in such form, and shall be submitted at such time, as the Secretary shall establish.</text></subsection> <subsection id="HA5E807517D0740C8B7D100AD7700A400"><enum>(b)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="H84D548D2997E4600A83F4CC7EA08309F"><enum>(1)</enum><header>Qualified hydroelectric facility</header><text>The term <term>qualified hydroelectric facility</term> means a turbine or other generating device owned or solely operated by a non-Federal entity which generates hydroelectric energy for sale and which is added to an existing dam or conduit.</text></paragraph> <paragraph id="HCDFF562324A0440497A8C97C09798D70"><enum>(2)</enum><header>Existing dam or conduit</header><text>The term <term>existing dam or conduit</term> means any dam or conduit the construction of which was completed before the date of the enactment of this section and which does not require any construction or enlargement of impoundment or diversion structures (other than repair or reconstruction) in connection with the installation of a turbine or other generating device.</text></paragraph> <paragraph id="H2E5C99CFC6B649D49FE423A68CCEB7DB"><enum>(3)</enum><header>Conduit</header><text>The term <term>conduit</term> has the same meaning as when used in section 30(a)(2) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/823a">16 U.S.C. 823a(a)(2)</external-xref>).</text></paragraph><continuation-text continuation-text-level="subsection">The terms defined in this subsection shall apply without regard to the hydroelectric kilowatt capacity of the facility concerned, without regard to whether the facility uses a dam owned by a governmental or nongovernmental entity, and without regard to whether the facility begins operation on or after the date of the enactment of this section.</continuation-text></subsection> <subsection id="H0B05D85A0620401B87CE44D930F4BE04"><enum>(c)</enum><header>Eligibility window</header><text>Payments may be made under this section only for electric energy generated from a qualified hydroelectric facility which begins operation during the period of 10 fiscal years beginning with the first full fiscal year occurring after the date of enactment of this subtitle.</text></subsection> <subsection id="H002D91D5C659403F830006A81CB49EC3"><enum>(d)</enum><header>Incentive period</header><text>A qualified hydroelectric facility may receive payments under this section for a period of 10 fiscal years (referred to in this section as the <quote>incentive period</quote>). Such period shall begin with the fiscal year in which electric energy generated from the facility is first eligible for such payments.</text></subsection> <subsection id="H0D40E5701BE84045AAD30495694B20A"><enum>(e)</enum><header>Amount of payment</header> <paragraph id="H3F2E59958D704B1C8E928DC58738F9C7"><enum>(1)</enum><header>In General</header><text>Payments made by the Secretary under this section to the owner or operator of a qualified hydroelectric facility shall be based on the number of kilowatt hours of hydroelectric energy generated by the facility during the incentive period. For any such facility, the amount of such payment shall be 1.8 cents per kilowatt hour (adjusted as provided in paragraph (2)), subject to the availability of appropriations under subsection (g), except that no facility may receive more than $750,000 in 1 calendar year.</text></paragraph> <paragraph id="H4E2C4CE889134624B0CE3E3D30E06239"><enum>(2)</enum><header>Adjustments</header><text>The amount of the payment made to any person under this section as provided in paragraph (1) shall be adjusted for inflation for each fiscal year beginning after calendar year 2003 in the same manner as provided in the provisions of <external-xref legal-doc="usc" parsable-cite="usc/26/29">section 29(d)(2)(B)</external-xref> of the Internal Revenue Code of 1986, except that in applying such provisions the calendar year 2003 shall be substituted for calendar year 1979.</text></paragraph></subsection> <subsection id="H5C29F98EE4654D8D96DA821FBF9933C8"><enum>(f)</enum><header>Sunset</header><text>No payment may be made under this section to any qualified hydroelectric facility after the expiration of the period of 20 fiscal years beginning with the first full fiscal year occurring after the date of enactment of this subtitle, and no payment may be made under this section to any such facility after a payment has been made with respect to such facility for a period of 10 fiscal years.</text></subsection> <subsection id="H68069BBA1D684075AC67498171365BBB"><enum>(g)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary to carry out the purposes of this section $10,000,000 for each of the fiscal years 2004 through 2013.</text></subsection></section> <section id="H7AEC83F4C4D043BA8338E889B858C00"><enum>242.</enum><header>Hydroelectric efficiency improvement</header> <subsection id="HF665F914B1EA4B14B252EB148445F293"><enum>(a)</enum><header>Incentive payments</header><text>The Secretary of Energy shall make incentive payments to the owners or operators of hydroelectric facilities at existing dams to be used to make capital improvements in the facilities that are directly related to improving the efficiency of such facilities by at least 3 percent.</text></subsection> <subsection id="H044AF935E519476CACDD8E00E531FF7F"><enum>(b)</enum><header>Limitations</header><text>Incentive payments under this section shall not exceed 10 percent of the costs of the capital improvement concerned and not more than 1 payment may be made with respect to improvements at a single facility. No payment in excess of $750,000 may be made with respect to improvements at a single facility.</text></subsection> <subsection id="H10C4585BC2164E96B74EF2FF1BADE2D"><enum>(c)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out this section not more than $10,000,000 for each of the fiscal years 2004 through 2013.</text></subsection></section> <section id="HA33B49D210AF4B13A562249CE82D1DE1"><enum>243.</enum><header>Small hydroelectric power projects</header><text display-inline="no-display-inline">Section 408(a)(6) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2708">16 U.S.C. 2708(a)(6)</external-xref>) is amended by striking <quote>April 20, 1977</quote> and inserting <quote>March 4, 2003</quote>.</text></section> <section id="H36B5850AB5D54761AD00EDFCBCFC4F00"><enum>244.</enum><header>Increased hydroelectric generation at existing Federal facilities</header> <subsection id="HF244EC652AC94F999EB5B96230CBE800"><enum>(a)</enum><header>In General</header><text>The Secretary of the Interior and the Secretary of Energy, in consultation with the Secretary of the Army, shall jointly conduct a study of the potential for increasing electric power production capability at federally owned or operated water regulation, storage, and conveyance facilities.</text></subsection> <subsection id="H7790095C4B03446500DF65CBA11D7138"><enum>(b)</enum><header>Content</header><text>The study under this section shall include identification and description in detail of each facility that is capable, with or without modification, of producing additional hydroelectric power, including estimation of the existing potential for the facility to generate hydroelectric power.</text></subsection> <subsection id="H8C48BE66DA2D42AEA8D470FC00D3F2A9"><enum>(c)</enum><header>Report</header><text>The Secretaries shall submit to the Committees on Energy and Commerce, Resources, and Transportation and Infrastructure of the House of Representatives and the Committee on Energy and Natural Resources of the Senate a report on the findings, conclusions, and recommendations of the study under this section by not later than 18 months after the date of the enactment of this Act. The report shall include each of the following:</text> <paragraph id="HF8CE793F200F485AA2C40188DEB8B393"><enum>(1)</enum><text>The identifications, descriptions, and estimations referred to in subsection (b).</text></paragraph> <paragraph id="H08CACE848B0D4662BD71706E3D6B1DBF"><enum>(2)</enum><text>A description of activities currently conducted or considered, or that could be considered, to produce additional hydroelectric power from each identified facility.</text></paragraph> <paragraph id="H1A109B2290324A2982CCAC4BBDA7808B"><enum>(3)</enum><text>A summary of prior actions taken by the Secretaries to produce additional hydroelectric power from each identified facility.</text></paragraph> <paragraph id="H973A397DA58C4F3E94FFE969FFD3EBD"><enum>(4)</enum><text>The costs to install, upgrade, or modify equipment or take other actions to produce additional hydroelectric power from each identified facility and the level of Federal power customer involvement in the determination of such costs.</text></paragraph> <paragraph id="H4FA9E5D8FFB242C5B16F75FF6D3CD1E1"><enum>(5)</enum><text>The benefits that would be achieved by such installation, upgrade, modification, or other action, including quantified estimates of any additional energy or capacity from each facility identified under subsection (b).</text></paragraph> <paragraph id="HBDDC5FB86C2F4A46B3B700AB00A9B04C"><enum>(6)</enum><text>A description of actions that are planned, underway, or might reasonably be considered to increase hydroelectric power production by replacing turbine runners, by performing generator upgrades or rewinds, or construction of pumped storage facilities.</text></paragraph> <paragraph id="H58473F1111084E7E99CF4BD994B9C509"><enum>(7)</enum><text>The impact of increased hydroelectric power production on irrigation, fish, wildlife, Indian tribes, river health, water quality, navigation, recreation, fishing, and flood control.</text></paragraph> <paragraph id="HFF134EBBCC3A47DBB3019C5679C6B70"><enum>(8)</enum><text>Any additional recommendations to increase hydroelectric power production from, and reduce costs and improve efficiency at, federally owned or operated water regulation, storage, and conveyance facilities.</text></paragraph></subsection></section> <section id="H3E0D0A25651647CE9273FD87691204CB"><enum>245.</enum><header>Shift of project loads to off-peak periods</header> <subsection id="H091CBD683D2D4F88B7DA1300675184A6"><enum>(a)</enum><header>In General</header><text>The Secretary of the Interior shall—</text> <paragraph id="H43107E257D564349BB7DC9003C81E9C"><enum>(1)</enum><text>review electric power consumption by Bureau of Reclamation facilities for water pumping purposes; and</text></paragraph> <paragraph id="H95AC420CD34145089BEDB214FDF2E3B7"><enum>(2)</enum><text>make such adjustments in such pumping as possible to minimize the amount of electric power consumed for such pumping during periods of peak electric power consumption, including by performing as much of such pumping as possible during off-peak hours at night.</text></paragraph></subsection> <subsection id="HF6C0F731081B4AD99B09E0FE6D4CD3C6"><enum>(b)</enum><header>Consent of affected irrigation customers required</header><text>The Secretary may not under this section make any adjustment in pumping at a facility without the consent of each person that has contracted with the United States for delivery of water from the facility for use for irrigation and that would be affected by such adjustment.</text></subsection> <subsection id="H8081684BA61E47469C26147DBACA36C8"><enum>(c)</enum><header>Existing obligations not affected</header><text>This section shall not be construed to affect any existing obligation of the Secretary to provide electric power, water, or other benefits from Bureau of Reclamation facilities, including recreational releases.</text></subsection></section> <section id="H57F10759F95C411DBC6B7C77FC7077C"><enum>246.</enum><header>Corps of Engineers hydropower operation and maintenance funding</header> <subsection id="HA5405C408E704B878F9694D700F94F1F"><enum>(a)</enum><header>In General</header><text>Notwithstanding the last sentence of section 5 of the Act of December 22, 1944 (commonly known as the <quote>Flood Control Act of 1944</quote>) (58 Stat. 890, chapter 665; <external-xref legal-doc="usc" parsable-cite="usc/16/825s">16 U.S.C. 825s</external-xref>), the 11th paragraph under the heading <quote><header-in-text level="paragraph">office of the secretary</header-in-text></quote> in title I of the Act of October 12, 1949 (63 Stat. 767, chapter 680; <external-xref legal-doc="usc" parsable-cite="usc/16/825s-1">16 U.S.C. 825s–1</external-xref>), the matter under the heading <quote><header-in-text level="paragraph">continuing fund, southeastern power administration</header-in-text></quote> in title I of the Act of August 31, 1951 (65 Stat. 249, chapter 375; <external-xref legal-doc="usc" parsable-cite="usc/16/825s-2">16 U.S.C. 825s–2</external-xref>), <external-xref legal-doc="usc" parsable-cite="usc/31/3302">section 3302</external-xref> of title 31, United States Code, or any other law, and without further appropriation or fiscal year limitation, for fiscal year 2004, the Administrator of the Southeastern Power Administration, the Administrator of the Southwestern Power Administration, and the Administrator of the Western Area Power Administration may credit to the Secretary of the Army (referred to in this section as the <quote>Secretary</quote>), receipts, in an amount determined under subsection (c), from the sale of power and related services.</text></subsection> <subsection id="HEB31C4B1C0ED43C38386DC18B0A0968B"><enum>(b)</enum><header>Use of funds</header> <paragraph id="H597A569D166C4D5EB82EF388D33734CC"><enum>(1)</enum><header>In General</header><text>The Secretary—</text> <subparagraph id="H4D382FDD70E54E698B6F69484E66594B"><enum>(A)</enum><text>shall, except as provided in paragraph (2), use the amounts credited under subsection (a) to fund only the Corps of Engineers annual operation and maintenance activities that are allocated exclusively to the power function and assigned to the respective power marketing administration and respective project system as applicable for repayment; and</text></subparagraph> <subparagraph id="H8DF0C7F246014D14A28E36489B40EE03"><enum>(B)</enum><text>shall not use the amounts for any costs allocated to non-power functions of Corps of Engineer operations.</text></subparagraph></paragraph> <paragraph id="H7BA73B3D15784BFA004475BE455B5042"><enum>(2)</enum><header>Exception</header><text>The Secretary may use amounts credited by the Southwestern Power Administration under subsection (a) for capital and nonrecurring costs.</text></paragraph></subsection> <subsection id="H3BE3357205B642E687433BC4DF1574EA"><enum>(c)</enum><header>Amount</header><text>The amount of the receipts credited under subsection (a) shall be equal to such amount as—</text> <paragraph id="H00896FFBCCD849DB9F465B8B217C4DF9"><enum>(1)</enum><text>the Secretary of the Army requests; and</text></paragraph> <paragraph id="HC3631514F1C142AA0028987C41A7C9CB"><enum>(2)</enum><text>the appropriate Administrator, in consultation with the power customers of the Administrator’s power marketing administration, determines to be appropriate to apply to the costs referred to in subsection (b).</text></paragraph></subsection> <subsection id="H9F9C61E8E8C94C97B9BFC6B2393D6EEE"><enum>(d)</enum><header>Applicable law</header><text>The amounts credited under subsection (a) are exempt from sequestration under the Balanced Budget and Emergency Deficit Control Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/2/901">2 U.S.C. 901 et seq.</external-xref>).</text></subsection></section> <section id="HBF98B87DBB2441AC8CF9C6D96C0B5A"><enum>247.</enum><header>Limitation on certain charges assessed to the flint creek project, Montana</header><text display-inline="no-display-inline">Notwithstanding section 10(e)(1) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/803">16 U.S.C. 803(e)(1)</external-xref>) or any other provision of Federal law providing for the payment to the United States of charges for the use of Federal land for the purposes of operating and maintaining a hydroelectric development licensed by the Federal Energy Regulatory Commission (referred to in this section as the <quote>Commission</quote>), any political subdivision of the State of Montana that holds a license for Commission Project No. 1473 in Granite and Deer Lodge Counties, Montana, shall be required to pay to the United States for the use of that land for each year during which the political subdivision continues to hold the license for the project, the lesser of—</text> <paragraph id="HD13271F5ACD3471A808C70A3123ED744"><enum>(1)</enum><text>$25,000; or</text></paragraph> <paragraph id="H8BB9E5878C6541478D8F9D26CA4BE895"><enum>(2)</enum><text>such annual charge as the Commission or any other department or agency of the Federal Government may assess.</text></paragraph></section> <section id="H80695BD337964DB2A08C9B5422EAE3E8"><enum>248.</enum><header>Reinstatement and transfer</header> <subsection id="H875D718AAC8B487D93CC747FFCCDBD0"><enum>(a)</enum><header>Reinstatement and transfer of Federal license for project numbered 2696</header><text>Notwithstanding section 8 of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/801">16 U.S.C. 801</external-xref>) or any other provision of such Act, the Federal Energy Regulatory Commission shall reinstate the license for Project No. 2696 and transfer the license, without delay or the institution of any proceedings, to the Town of Stuyvesant, New York, holder of Federal Energy Regulatory Commission Preliminary Permit No. 11787, within 30 days after the date of enactment of this Act.</text></subsection> <subsection id="H16A4AE17759D46C6BB0340BA00AE87DE"><enum>(b)</enum><header>Hydroelectric incentives</header><text>Project No. 2696 shall be entitled to the full benefit of any Federal legislation that promotes hydroelectric development that is enacted within 2 years either before or after the date of enactment of this Act.</text></subsection> <subsection id="HDF6DFFF99E4049D2AC90FF4554179343"><enum>(c)</enum><header>Project development and financing</header><text>The Federal Energy Regulatory Commission shall permit the Town of Stuyvesant to add as a colicensee any private or public entity or entities to the reinstated license at any time, notwithstanding the issuance of a preliminary permit to the Town of Stuyvesant and any consideration of municipal preference. The town shall be entitled, to the extent that funds are available or shall be made available, to receive loans under sections 402 and 403 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2702 and 2703), or similar programs, for the reimbursement of feasibility studies or development costs, or both, incurred since January 1, 2001, through and including December 31, 2006. All power produced by the project shall be deemed incremental hydropower for purpose of qualifying for any energy credit or similar benefits.</text></subsection></section></part></subtitle> <enum>III</enum><header>Oil and gas</header> <subtitle id="HF0D3FD957CF34D6AAC167559E900D3C8"><enum>A</enum><header>Petroleum Reserve and home heating oil</header> <section id="HAF3AAF7CE25F479AB1354375A872CB90" section-type="subsequent-section"><enum>301.</enum><header>Permanent authority to operate the Strategic Petroleum Reserve and other energy programs</header> <subsection id="H39647D9D3D7B4CDBA884BB2C142FB0EE"><enum>(a)</enum><header>Amendment to title i of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name></header><text>Title I of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6211">42 U.S.C. 6211 et seq.</external-xref>) is amended—</text> <paragraph id="H771ECE0E5F2D4CB8A5C3B19FE09E00E4"><enum>(1)</enum><text>by striking section 166 (<external-xref legal-doc="usc" parsable-cite="usc/42/6246">42 U.S.C. 6246</external-xref>) and inserting the following:</text> <quoted-block style="traditional" id="H0B9D3EAA52234343B0BFBBE77300441"> <section id="HA50511827E3F44239481567D11C03CA6"><enum>166.</enum><header>Authorization of appropriations</header><text display-inline="yes-display-inline">There are authorized to be appropriated to the Secretary such sums as may be necessary to carry out this part and part D, to remain available until expended.</text></section><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H4E2D557454204EFA8FB8E4829141F0FA"><enum>(2)</enum><text>by striking section 186 (<external-xref legal-doc="usc" parsable-cite="usc/42/6250e">42 U.S.C. 6250e</external-xref>); and</text></paragraph> <paragraph id="H3F1308CFFAFF4E78A7CBE4196D61DB82"><enum>(3)</enum><text>by striking part E (<external-xref legal-doc="usc" parsable-cite="usc/42/6251">42 U.S.C. 6251</external-xref>; relating to the expiration of title I of the Act).</text></paragraph></subsection> <subsection id="H66C934F44E424F9088C7F690D7B2CCAA"><enum>(b)</enum><header>Amendment to title II of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name></header><text>Title II of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6271">42 U.S.C. 6271 et seq.</external-xref>) is amended—</text> <paragraph id="H23DF9B2D5F50448EB2A5320700012D51"><enum>(1)</enum><text>by inserting before section 273 (<external-xref legal-doc="usc" parsable-cite="usc/42/6283">42 U.S.C. 6283</external-xref>) the following:</text> <quoted-block id="HABFB00A06AE0407BA04CE34BC1C58EC5"> <part id="H555F81F85E2449F0A53124DB7D94E835"><enum>C</enum><header>Summer fill and fuel budgeting programs</header></part><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H5E2852E404B84C45ABA925D5FB584423"><enum>(2)</enum><text>by striking section 273(e) (<external-xref legal-doc="usc" parsable-cite="usc/42/6283">42 U.S.C. 6283(e)</external-xref>; relating to the expiration of summer fill and fuel budgeting programs); and</text></paragraph> <paragraph id="H75C5127D7A0F4F0AAC5621776114AA34"><enum>(3)</enum><text>by striking part D (<external-xref legal-doc="usc" parsable-cite="usc/42/6285">42 U.S.C. 6285</external-xref>; relating to the expiration of title II of the Act).</text></paragraph></subsection> <subsection id="HD33FF63B66C340B9B250D46DEC0000F8"><enum>(c)</enum><header>Technical amendments</header><text>The table of contents for the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> is amended—</text> <paragraph id="HFC03B13E8ACD49C59944CDE107C277CC"><enum>(1)</enum><text>by inserting after the items relating to part C of title I the following:</text> <quoted-block style="OLC" id="HA1264EC5F3D24CF89C74F500C500BE77"> <toc regeneration="no-regeneration"> <toc-entry level="part">Part D—Northeast home heating oil Reserve</toc-entry> <toc-entry level="section">Sec. 181. Establishment</toc-entry> <toc-entry level="section">Sec. 182. Authority</toc-entry> <toc-entry level="section">Sec. 183. Conditions for release; plan</toc-entry> <toc-entry level="section">Sec. 184. Northeast Home Heating Oil Reserve Account</toc-entry> <toc-entry level="section">Sec. 185. Exemptions</toc-entry></toc><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HEC3E52224BA54226B54218C3102C1B30"><enum>(2)</enum><text>by amending the items relating to part C of title II to read as follows:</text> <quoted-block style="OLC" id="H67962A014BEA457A8CA41D9CD4AA61EA"> <toc regeneration="no-regeneration"> <toc-entry level="part">Part C—Summer fill and fuel budgeting programs</toc-entry> <toc-entry level="section">Sec. 273. Summer fill and fuel budgeting programs</toc-entry></toc><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="HFB3FF055F1B6486096DEE2BE34E2C9E"><enum>(3)</enum><text>by striking the items relating to part D of title II.</text></paragraph></subsection> <subsection id="H7662AF09698447CFAE64363CD34E4E60"><enum>(d)</enum><header>Amendment to the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name></header><text>Section 183(b)(1) of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6250">42 U.S.C. 6250(b)(1)</external-xref>) is amended by striking all after <quote>increases</quote> through to <quote>mid-October through March</quote> and inserting <quote>by more than 60 percent over its 5-year rolling average for the months of mid-October through March (considered as a heating season average)</quote>.</text></subsection> <subsection id="H518478586D2C482986F532F7605DF16D"><enum>(e)</enum><header>Fill Strategic Petroleum Reserve to capacity</header><text>The Secretary of Energy shall, as expeditiously as practicable, acquire petroleum in amounts sufficient to fill the Strategic Petroleum Reserve to the 1,000,000,000 barrel capacity authorized under section 154(a) of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6234">42 U.S.C. 6234(a)</external-xref>), consistent with the provisions of sections 159 and 160 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6239">42 U.S.C. 6239</external-xref>, 6240).</text></subsection></section> <section id="H630D679C43AB47709F509DC23B45FF35"><enum>302.</enum><header>National oilheat research alliance</header><text display-inline="no-display-inline">Section 713 of the Energy Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/42/6201">42 U.S.C. 6201</external-xref> note) is amended by striking <quote>4</quote> and inserting <quote>9</quote>.</text></section></subtitle> <subtitle id="H0221BF43D1A346AD823B6816A87C13BF"><enum>B</enum><header>Production incentives</header> <section id="H328C68EC63F94391B13EA0E8A3CE2FC3"><enum>311.</enum><header>Definition of Secretary</header><text display-inline="no-display-inline">In this subtitle, the term <quote>Secretary</quote> means the Secretary of the Interior.</text></section> <section id="HBAA77E8703EB4FEE8426F766607BED3"><enum>312.</enum><header>Program on oil and gas royalties in-kind</header> <subsection id="H131E0827B6D04E79BE14D5756352672"><enum>(a)</enum><header>Applicability of Section</header><text>Notwithstanding any other provision of law, this section applies to all royalty in-kind accepted by the Secretary on or after the date of enactment of this Act under any Federal oil or gas lease or permit under section 36 of the <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/30/192">30 U.S.C. 192</external-xref>), section 27 of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1353">43 U.S.C. 1353</external-xref>), or any other Federal law governing leasing of Federal land for oil and gas development.</text></subsection> <subsection id="HE041DE2809914FDA9CEA65F92800468B"><enum>(b)</enum><header>Terms and conditions</header><text>All royalty accruing to the United States shall, on the demand of the Secretary, be paid in oil or gas. If the Secretary makes such a demand, the following provisions apply to such payment:</text> <paragraph id="H20137CCE2F6E49D7941454595231706C"><enum>(1)</enum><header>Satisfaction of royalty obligation</header><text>Delivery by, or on behalf of, the lessee of the royalty amount and quality due under the lease satisfies the lessee’s royalty obligation for the amount delivered, except that transportation and processing reimbursements paid to, or deductions claimed by, the lessee shall be subject to review and audit.</text></paragraph> <paragraph id="H215EC07DEBAD4C43BB84374628FBE201"><enum>(2)</enum><header>Marketable condition</header> <subparagraph id="H17021C580B9148A0A8752473C5654BB4"><enum>(A)</enum><header>In General</header><text>Royalty production shall be placed in marketable condition by the lessee at no cost to the United States.</text></subparagraph> <subparagraph id="H7A3CB907CDFC41EAAFF900250513FC43"><enum>(B)</enum><header>Definition of marketable condition</header><text>In this paragraph, the term <term>in marketable condition</term> means sufficiently free from impurities and otherwise in a condition that the royalty production will be accepted by a purchaser under a sales contract typical of the field or area in which the royalty production was produced.</text></subparagraph></paragraph> <paragraph id="H912AA459C56F441B8C58B4FC88D5A636"><enum>(3)</enum><header>Disposition by the Secretary</header><text>The Secretary may—</text> <subparagraph id="H3262829428C14E56A9D9AD0067A700B0"><enum>(A)</enum><text>sell or otherwise dispose of any royalty production taken in-kind (other than oil or gas transferred under section 27(a)(3) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1353">43 U.S.C. 1353(a)(3)</external-xref>) for not less than the market price; and</text></subparagraph> <subparagraph id="HB1406E84F23D4C6B9FF34EF38C88487B"><enum>(B)</enum><text>transport or process (or both) any royalty production taken in-kind.</text></subparagraph></paragraph> <paragraph id="H1B052F6CD7EF4E39B2D553008700EC2D"><enum>(4)</enum><header>Retention by the Secretary</header><text>The Secretary may, notwithstanding <external-xref legal-doc="usc" parsable-cite="usc/31/3302">section 3302</external-xref> of title 31, United States Code, retain and use a portion of the revenues from the sale of oil and gas taken in-kind that otherwise would be deposited to miscellaneous receipts, without regard to fiscal year limitation, or may use oil or gas received as royalty taken in-kind (in this paragraph referred to as <quote>royalty production</quote>) to pay the cost of—</text> <subparagraph id="H40F3ABAB25194219A2D508D1E8A7D53C"><enum>(A)</enum><text>transporting the royalty production;</text></subparagraph> <subparagraph id="HC4CD8670A33948019564EB0079C8F300"><enum>(B)</enum><text>processing the royalty production;</text></subparagraph> <subparagraph id="HD7EB83F41BC0445CA2516E3EF41B3E6E"><enum>(C)</enum><text>disposing of the royalty production; or</text></subparagraph> <subparagraph id="H8D09F7865E28453F8B97843CDAADDC5C"><enum>(D)</enum><text>any combination of transporting, processing, and disposing of the royalty production.</text></subparagraph></paragraph> <paragraph id="HE05853B04F1F49E199FAC9214C4E2EA9"><enum>(5)</enum><header>Limitation</header> <subparagraph id="HEED99308DED64CABBB65F2A7042B6DB8"><enum>(A)</enum><header>In General</header><text>Except as provided in subparagraph (B), the Secretary may not use revenues from the sale of oil and gas taken in-kind to pay for personnel, travel, or other administrative costs of the Federal Government.</text></subparagraph> <subparagraph id="HA00086E1E73D4F3D986B89107B65D68"><enum>(B)</enum><header>Exception</header><text>Notwithstanding subparagraph (A), the Secretary may use a portion of the revenues from the sale of oil taken in-kind, without fiscal year limitation, to pay transportation costs, salaries, and other administrative costs directly related to filling the Strategic Petroleum Reserve.</text></subparagraph></paragraph></subsection> <subsection id="H9CF5106FE58F47D0BCDA5993F7A22352"><enum>(c)</enum><header>Reimbursement of cost</header><text>If the lessee, pursuant to an agreement with the United States or as provided in the lease, processes the royalty gas or delivers the royalty oil or gas at a point not on or adjacent to the lease area, the Secretary shall—</text> <paragraph id="H0801A23C3AAC4D41963000FEBEB5CF63"><enum>(1)</enum><text>reimburse the lessee for the reasonable costs of transportation (not including gathering) from the lease to the point of delivery or for processing costs; or</text></paragraph> <paragraph id="H9B33CDAB19CE4E0A9675D851B86D5EB2"><enum>(2)</enum><text>allow the lessee to deduct the transportation or processing costs in reporting and paying royalties in-value for other Federal oil and gas leases.</text></paragraph></subsection> <subsection id="HF26D848455254E4A9C8E39805F586500"><enum>(d)</enum><header>Benefit to the United States required</header><text>The Secretary may receive oil or gas royalties in-kind only if the Secretary determines that receiving royalties in-kind provides benefits to the United States that are greater than or equal to the benefits that are likely to have been received had royalties been taken in-value.</text></subsection> <subsection id="HCD83C1C0FB3047258DA1FA73ECB80499"><enum>(e)</enum><header>Reports</header> <paragraph id="HED819F352DB24CB686C99B565981D01F"><enum>(1)</enum><header>In General</header><text>Not later than September 30, 2005, the Secretary shall submit to Congress a report that addresses—</text> <subparagraph id="H6D3891AC88574D13BD29FD009D6200A2"><enum>(A)</enum><text>actions taken to develop businesses processes and automated systems to fully support the royalty-in-kind capability to be used in tandem with the royalty-in-value approach in managing Federal oil and gas revenue; and</text></subparagraph> <subparagraph id="H548F888CD7814C6A9562DE61FBE4A323"><enum>(B)</enum><text>future royalty-in-kind businesses operation plans and objectives.</text></subparagraph></paragraph> <paragraph id="H4A262AF393C5465581AFDDDB1D4CBC00"><enum>(2)</enum><header>Reports on oil or gas royalties taken in-kind</header><text>For each of fiscal years 2004 through 2013 in which the United States takes oil or gas royalties in-kind from production in any State or from the outer Continental Shelf, excluding royalties taken in-kind and sold to refineries under subsection (h), the Secretary shall submit to Congress a report that describes—</text> <subparagraph id="HCC21A475F8AF431790D74C72E33E3A7"><enum>(A)</enum><text>the methodology or methodologies used by the Secretary to determine compliance with subsection (d), including the performance standard for comparing amounts received by the United States derived from royalties in-kind to amounts likely to have been received had royalties been taken in-value;</text></subparagraph> <subparagraph id="H14A118FDEFD84E4883A783E3F5887749"><enum>(B)</enum><text>an explanation of the evaluation that led the Secretary to take royalties in-kind from a lease or group of leases, including the expected revenue effect of taking royalties in-kind;</text></subparagraph> <subparagraph id="HAFE1401E513441239B39E100E197B306"><enum>(C)</enum><text>actual amounts received by the United States derived from taking royalties in-kind and costs and savings incurred by the United States associated with taking royalties in-kind, including, but not limited to, administrative savings and any new or increased administrative costs; and</text></subparagraph> <subparagraph id="H8499354FCE0645CC8892D22C67F009C"><enum>(D)</enum><text>an evaluation of other relevant public benefits or detriments associated with taking royalties in-kind.</text></subparagraph></paragraph></subsection> <subsection id="H239D26EB38774CE6B4285956D5BD07F1"><enum>(f)</enum><header>Deduction of expenses</header> <paragraph id="H4356D172C73C4124840078658B64559F"><enum>(1)</enum><header>In General</header><text>Before making payments under section 35 of the <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/30/191">30 U.S.C. 191</external-xref>) or section 8(g) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(g)</external-xref>) of revenues derived from the sale of royalty production taken in-kind from a lease, the Secretary shall deduct amounts paid or deducted under subsections (b)(4) and (c) and deposit the amount of the deductions in the miscellaneous receipts of the United States Treasury.</text></paragraph> <paragraph id="HD85A2139DDDB4A249BF8B962293BF542"><enum>(2)</enum><header>Accounting for deductions</header><text>When the Secretary allows the lessee to deduct transportation or processing costs under subsection (c), the Secretary may not reduce any payments to recipients of revenues derived from any other Federal oil and gas lease as a consequence of that deduction.</text></paragraph></subsection> <subsection id="H843DD0BE97E8444289745EFFD621DA00"><enum>(g)</enum><header>Consultation with States</header><text>The Secretary—</text> <paragraph id="HD508A7C2A0284CF3A5FAB5EFAA3FA7FC"><enum>(1)</enum><text>shall consult with a State before conducting a royalty in-kind program under this subtitle within the State, and may delegate management of any portion of the Federal royalty in-kind program to the State except as otherwise prohibited by Federal law; and</text></paragraph> <paragraph id="HC3956522BB4D4CFAB8977CF60442F5EA"><enum>(2)</enum><text>shall consult annually with any State from which Federal oil or gas royalty is being taken in-kind to ensure, to the maximum extent practicable, that the royalty in-kind program provides revenues to the State greater than or equal to those likely to have been received had royalties been taken in-value.</text></paragraph></subsection> <subsection id="HFC02AE8621DB47EC98927B52D249C1A3"><enum>(h)</enum><header>Small refineries</header> <paragraph id="H5C3E00427B9B47498698005CF294B54B"><enum>(1)</enum><header>Preference</header><text>If the Secretary finds that sufficient supplies of crude oil are not available in the open market to refineries that do not have their own source of supply for crude oil, the Secretary may grant preference to such refineries in the sale of any royalty oil accruing or reserved to the United States under Federal oil and gas leases issued under any mineral leasing law, for processing or use in such refineries at private sale at not less than the market price.</text></paragraph> <paragraph id="HDAA367C4EEB0442AB0D60858065F75B4"><enum>(2)</enum><header>Proration among refineries in production area</header><text>In disposing of oil under this subsection, the Secretary of Energy may, at the discretion of the Secretary, prorate the oil among refineries described in paragraph (1) in the area in which the oil is produced.</text></paragraph></subsection> <subsection id="HF36AFB158BAE4091BB4C291FD96085E"><enum>(i)</enum><header>Disposition to Federal agencies</header> <paragraph id="HE08EC01BA2CD4245AC937C65BACE0091"><enum>(1)</enum><header>Onshore royalty</header><text>Any royalty oil or gas taken by the Secretary in-kind from onshore oil and gas leases may be sold at not less than the market price to any Federal agency.</text></paragraph> <paragraph id="H69BF6972F157428E00E53D4FC53383C7"><enum>(2)</enum><header>Offshore royalty</header><text>Any royalty oil or gas taken in-kind from a Federal oil or gas lease on the outer Continental Shelf may be disposed of only under section 27 of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1353">43 U.S.C. 1353</external-xref>).</text></paragraph></subsection> <subsection id="H1BB4DF5B5F6B44DE8902B3B6470606F"><enum>(j)</enum><header>Federal low-income energy assistance programs</header> <paragraph id="H040E5207BBAA4090B92F67ADDAF181B"><enum>(1)</enum><header>Preference</header><text>In disposing of royalty oil or gas taken in-kind under this section, the Secretary may grant a preference to any person, including any Federal or State agency, for the purpose of providing additional resources to any Federal low-income energy assistance program.</text></paragraph> <paragraph id="H3C7E6A99A71A48D9AF3533A9AFF27558"><enum>(2)</enum><header>Report</header><text>Not later than 3 years after the date of enactment of this Act, the Secretary shall transmit a report to Congress, assessing the effectiveness of granting preferences specified in paragraph (1) and providing a specific recommendation on the continuation of authority to grant preferences.</text></paragraph></subsection></section> <section id="H900D9F45665F4A58AB39CB305179FF74"><enum>313.</enum><header>Marginal property production incentives</header> <subsection id="H1F7342E062CC469298AF8C3A8065F92"><enum>(a)</enum><header>Definition of marginal property</header><text>Until such time as the Secretary issues regulations under subsection (e) that prescribe a different definition, in this section the term <term>marginal property</term> means an onshore unit, communitization agreement, or lease not within a unit or communitization agreement, that produces on average the combined equivalent of less than 15 barrels of oil per well per day or 90 million British thermal units of gas per well per day calculated based on the average over the 3 most recent production months, including only wells that produce on more than half of the days during those 3 production months.</text></subsection> <subsection id="H4F94323BA523408DBD5CCC7350B13F8F"><enum>(b)</enum><header>Conditions for Reduction of royalty rate</header><text>Until such time as the Secretary issues regulations under subsection (e) that prescribe different thresholds or standards, the Secretary shall reduce the royalty rate on—</text> <paragraph id="H9FA71B3A764A4B6F8FDB827DE05B74CB"><enum>(1)</enum><text>oil production from marginal properties as prescribed in subsection (c) when the spot price of West Texas Intermediate crude oil at Cushing, Oklahoma, is, on average, less than $15 per barrel for 90 consecutive trading days; and</text></paragraph> <paragraph id="H7DA7FD63F6E449A495E5F73B39A2681E"><enum>(2)</enum><text>gas production from marginal properties as prescribed in subsection (c) when the spot price of natural gas delivered at Henry Hub, Louisiana, is, on average, less than $2.00 per million British thermal units for 90 consecutive trading days.</text></paragraph></subsection> <subsection id="H30F22587BAC3469CABFE2569E33C8E00"><enum>(c)</enum><header>Reduced royalty rate</header> <paragraph id="H1C4E2EE72C9B4C9999B77137E1470062"><enum>(1)</enum><header>In General</header><text>When a marginal property meets the conditions specified in subsection (b), the royalty rate shall be the lesser of—</text> <subparagraph id="HC881C93E11CF4CE59F2733B919428D57"><enum>(A)</enum><text>5 percent; or</text></subparagraph> <subparagraph id="H2503B4CCEE824115991DA2A61262C908"><enum>(B)</enum><text>the applicable rate under any other statutory or regulatory royalty relief provision that applies to the affected production.</text></subparagraph></paragraph> <paragraph id="H25A91372B0B5426E9500C70100EFF51"><enum>(2)</enum><header>Period of effectiveness</header><text>The reduced royalty rate under this subsection shall be effective beginning on the first day of the production month following the date on which the applicable condition specified in subsection (b) is met.</text></paragraph></subsection> <subsection id="H5E3CCD8C0A0D4CD8B58D8172056CDF4"><enum>(d)</enum><header>Termination of reduced royalty rate</header><text>A royalty rate prescribed in subsection (d)(1)(A) shall terminate—</text> <paragraph id="H98D8A71940F94636806D7698814061C8"><enum>(1)</enum><text>with respect to oil production from a marginal property, on the first day of the production month following the date on which—</text> <subparagraph id="HA6A9DD60E75E4211A7DD55F9F17EB872"><enum>(A)</enum><text>the spot price of West Texas Intermediate crude oil at Cushing, Oklahoma, on average, exceeds $15 per barrel for 90 consecutive trading days; or</text></subparagraph> <subparagraph id="H853FFB70E00D4524BC82A9279DF1D40"><enum>(B)</enum><text>the property no longer qualifies as a marginal property; and</text></subparagraph></paragraph> <paragraph id="H5CEA4DBB37744271A0A013BA1E2400B0"><enum>(2)</enum><text>with respect to gas production from a marginal property, on the first day of the production month following the date on which—</text> <subparagraph id="HA054A630B20D4CD4B3B6004C72ECACD6"><enum>(A)</enum><text>the spot price of natural gas delivered at Henry Hub, Louisiana, on average, exceeds $2.00 per million British thermal units for 90 consecutive trading days; or</text></subparagraph> <subparagraph id="H161CE758DD124DD18C0805D048F3DA5C"><enum>(B)</enum><text>the property no longer qualifies as a marginal property.</text></subparagraph></paragraph></subsection> <subsection id="H23A185BA10FA44509B00DED3585065CC"><enum>(e)</enum><header>Regulations prescribing different Relief</header> <paragraph id="H32626535BBE54373AE8987CB36A79FE0"><enum>(1)</enum><header>Discretionary regulations</header><text>The Secretary may by regulation prescribe different parameters, standards, and requirements for, and a different degree or extent of, royalty relief for marginal properties in lieu of those prescribed in subsections (a) through (d).</text></paragraph> <paragraph id="H62D2EF77BEBE4ADBA8DCBF8D7970EEB9"><enum>(2)</enum><header>Mandatory regulations</header><text>Not later than 18 months after the date of enactment of this Act, the Secretary shall by regulation—</text> <subparagraph id="H5D90EC24635B4059A3B85BC300317DFF"><enum>(A)</enum><text>prescribe standards and requirements for, and the extent of royalty relief for, marginal properties for oil and gas leases on the outer Continental Shelf; and</text></subparagraph> <subparagraph id="H378666642C2A41A99051902EB7DD35AB"><enum>(B)</enum><text>define what constitutes a marginal property on the outer Continental Shelf for purposes of this section.</text></subparagraph></paragraph> <paragraph id="H244DC12163D04F4800251F2F75CDC662"><enum>(3)</enum><header>Considerations</header><text>In promulgating regulations under this subsection, the Secretary may consider—</text> <subparagraph id="H1E3DBEA1F9DD422785411E6593434D57"><enum>(A)</enum><text>oil and gas prices and market trends;</text></subparagraph> <subparagraph id="HCB25527D2DB948C8BC52BDD93FB077F6"><enum>(B)</enum><text>production costs;</text></subparagraph> <subparagraph id="HC2C3CF977F5C4124915651997EC0BC3D"><enum>(C)</enum><text>abandonment costs;</text></subparagraph> <subparagraph id="H1E82F5DCA7A747C6A5C95617C78F7E36"><enum>(D)</enum><text>Federal and State tax provisions and the effects of those provisions on production economics;</text></subparagraph> <subparagraph id="HCAF43060BB69401C84D8D1BDD15B9955"><enum>(E)</enum><text>other royalty relief programs;</text></subparagraph> <subparagraph id="HF465CB925F174C63B53E60D8CC914927"><enum>(F)</enum><text>regional differences in average wellhead prices;</text></subparagraph> <subparagraph id="H36F1CB21394547E1B328AEB0126F9684"><enum>(G)</enum><text>national energy security issues; and</text></subparagraph> <subparagraph id="H4904CD252D224931BB3D4CC2A1C27385"><enum>(H)</enum><text>other relevant matters.</text></subparagraph></paragraph></subsection> <subsection id="H9917D5B302C84C87BA00AC90F99265F7"><enum>(f)</enum><header>Savings provision</header><text>Nothing in this section prevents a lessee from receiving royalty relief or a royalty reduction pursuant to any other law (including a regulation) that provides more relief than the amounts provided by this section.</text></subsection></section> <section id="H7926641582E44AD5B2BBDE007BF41765"><enum>314.</enum><header>Incentives for natural gas production from deep wells in the shallow waters of the Gulf of Mexico</header> <subsection id="HB985C2346BB642FB82C3AF3C75534201"><enum>(a)</enum><header>Royalty incentive regulations</header><text>The Secretary shall publish a final regulation to complete the rulemaking begun by the Notice of Proposed Rulemaking entitled <quote>Relief or Reduction in Royalty Rates—Deep Gas Provisions</quote>, published in the Federal Register on March 26, 2003 (Federal Register, volume 68, number 58, 14868-14886).</text></subsection> <subsection id="H545E4795AAEB4586A7FCA0870084E6EB"><enum>(b)</enum><header>Royalty incentive regulations for ultra deep gas wells</header> <paragraph id="H362C514466674D129DEF7F969C394CF"><enum>(1)</enum><header>In General</header><text>Not later than 180 days after the date of enactment of this Act, in addition to any other regulations that may provide royalty incentives for natural gas produced from deep wells on oil and gas leases issued pursuant to the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331 et seq.</external-xref>), the Secretary shall issue regulations, in accordance with the regulations published pursuant to subsection (a), granting royalty relief suspension volumes of not less than 35,000,000,000 cubic feet with respect to the production of natural gas from ultra deep wells on leases issued before January 1, 2001, in shallow waters less than 200 meters deep located in the Gulf of Mexico wholly west of 87 degrees, 30 minutes West longitude. Regulations issued under this subsection shall be retroactive to the date that the Notice of Proposed Rulemaking is published in the Federal Register.</text></paragraph> <paragraph id="HD1BF3FEDEB1248E699392BBC32D59E28"><enum>(2)</enum><header>Definition of ultra deep well</header><text>In this subsection, the term <term>ultra deep well</term> means a well drilled with a perforated interval, the top of which is at least 20,000 feet true vertical depth below the datum at mean sea level.</text></paragraph></subsection></section> <section id="H71F3827C2DE441E491A671609F636D17"><enum>315.</enum><header>Royalty Relief for deep water production</header> <subsection id="H9E8FB0901B734842B1A416ED432B7E22"><enum>(a)</enum><header>In General</header><text>For all tracts located in water depths of greater than 400 meters in the Western and Central Planning Area of the Gulf of Mexico, including the portion of the Eastern Planning Area of the Gulf of Mexico encompassing whole lease blocks lying west of 87 degrees, 30 minutes West longitude, any oil or gas lease sale under the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331 et seq.</external-xref>) occurring within 5 years after the date of enactment of this Act shall use the bidding system authorized in section 8(a)(1)(H) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(a)(1)(H)</external-xref>), except that the suspension of royalties shall be set at a volume of not less than—</text> <paragraph id="H434487D2D38745D89174A93B94978F74"><enum>(1)</enum><text>5,000,000 barrels of oil equivalent for each lease in water depths of 400 to 800 meters;</text></paragraph> <paragraph id="HAF62B9CC72814441946DC49FF48E538D"><enum>(2)</enum><text>9,000,000 barrels of oil equivalent for each lease in water depths of 800 to 1,600 meters; and</text></paragraph> <paragraph id="HF7489BE61B3E47D9B25749BD306CC9D9"><enum>(3)</enum><text>12,000,000 barrels of oil equivalent for each lease in water depths greater than 1,600 meters.</text></paragraph></subsection> <subsection id="H350A01ADBB0F4180A032BD263EE05E13"><enum>(b)</enum><header>Limitation</header><text>The Secretary may place limitations on the suspension of royalty relief granted based on market price.</text></subsection></section> <section id="H2BE9E0CC2DB8422C9B2501BFAF6EE5FD"><enum>316.</enum><header>Alaska offshore royalty suspension</header><text display-inline="no-display-inline">Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(a)(3)(B)</external-xref>) is amended by inserting <quote>and in the Planning Areas offshore Alaska</quote> after <quote>West longitude</quote>.</text></section> <section id="H29CEEA9D1D294289B9C5F79DE640F92"><enum>317.</enum><header>Oil and gas leasing in the National Petroleum Reserve in Alaska</header> <subsection id="HE40F17866EB946C7B7C2AD7FEC114030"><enum>(a)</enum><header>Transfer of authority</header> <paragraph id="H7C0827A9428F4089AE00C9FFD5CECD5"><enum>(1)</enum><header>Redesignation</header><text>The Naval Petroleum Reserves Production Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/42/6501">42 U.S.C. 6501 et seq.</external-xref>) is amended by redesignating section 107 (<external-xref legal-doc="usc" parsable-cite="usc/42/6507">42 U.S.C. 6507</external-xref>) as section 108.</text></paragraph> <paragraph id="HF0F06FE76A83455191A8FD247300E1D"><enum>(2)</enum><header>Transfer</header><text>The matter under the heading <quote><header-in-text level="paragraph">exploration of national petroleum reserve in alaska</header-in-text></quote> under the heading <quote>ENERGY AND MINERALS</quote> of title I of <external-xref legal-doc="public-law" parsable-cite="pl/96/514">Public Law 96–514</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/42/6508">42 U.S.C. 6508</external-xref>) is—</text> <subparagraph id="HCF2637A65DA245C9829CC52F74362018"><enum>(A)</enum><text>transferred to the Naval Petroleum Reserves Production Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/42/6501">42 U.S.C. 6501 et seq.</external-xref>);</text></subparagraph> <subparagraph id="H2CF308B55F13459CBDF7E9385C227F01"><enum>(B)</enum><text>redesignated as section 107 of that Act; and</text></subparagraph> <subparagraph id="H7A7CD308D4824B5598CBBC44B8DBC6A1"><enum>(C)</enum><text>moved so as to appear after section 106 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6506">42 U.S.C. 6506</external-xref>).</text></subparagraph></paragraph></subsection> <subsection id="H039AC6BB9C8B4C3785F8BC4C02ED6426"><enum>(b)</enum><header>Competitive leasing</header><text>Section 107 of the Naval Petroleum Reserves Production Act of 1976 (as amended by subsection (a) of this section) is amended—</text> <paragraph id="HC04C9FA929644B71BB743F9B58FF9606"><enum>(1)</enum><text>by striking the heading and all that follows through <quote><italic>Provided</italic>, That (1) activities</quote> and inserting the following:</text> <quoted-block id="H8BBDCE6BA13444748B2089F858509373"> <section id="H88599552B10547FCA986D5B8CF0000BF"><enum>107.</enum><header>Competitive leasing of oil and gas</header> <subsection id="HDE8F2B66FEAA4F3BA9CD84518880C7F1"><enum>(a)</enum><header>In General</header><text>Notwithstanding any other provision of law and pursuant to regulations issued by the Secretary, the Secretary shall conduct an expeditious program of competitive leasing of oil and gas in the National Petroleum Reserve in Alaska (referred to in this section as the <quote>Reserve</quote>).</text></subsection> <subsection id="H475F080909FB4EDDB488685C287B3DBD"><enum>(b)</enum><header>Mitigation of adverse effects</header><text>Activities</text></subsection></section><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H984B3A6655E441988D6FC7727F86BEDF"><enum>(2)</enum><text>by striking <quote>Alaska (the Reserve); (2) the</quote> and inserting</text> <quoted-block display-inline="yes-display-inline" id="HFF75F79AA50B41C6009957C5F33035CC"><text>Alaska.</text> <subsection id="HA09CE08BE3A347B3AEE729B33B18123"><enum>(c)</enum><header>Land use planning; BLM wilderness study</header><text>The</text></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H1183830C5C3043BD8548AA1923187DB7"><enum>(3)</enum><text>by striking <quote>Reserve; (3) the</quote> and inserting</text> <quoted-block display-inline="yes-display-inline" id="H77A6A76FB3A9457CAB07A06D00F9B826"><text>Reserve.</text> <subsection id="HA1F37C81FB854C729F1FA74CC16C5BD2"><enum>(d)</enum><header>First lease sale</header><text>The</text></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HEBBDBFAF2AC94F38BFDD1E0024393670"><enum>(4)</enum><text>by striking <quote>4332); (4) the</quote> and inserting</text> <quoted-block display-inline="yes-display-inline" id="H6979F185F0694472BA9E78974D4CDDCB"><text>4321 et seq.).</text> <subsection id="H91393CF21DC04C69B56E097800D349A8"><enum>(e)</enum><header>Withdrawals</header><text>The</text></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HA8AEF12B47224988B981129C970515A6"><enum>(5)</enum><text>by striking <quote>herein; (5) bidding</quote> and inserting</text> <quoted-block display-inline="yes-display-inline" id="H86CC5A054A464FA49497CF6FEDB62E"><text>under this section.</text> <subsection id="HA0056DA9C0F745699D74D00263497CF"><enum>(f)</enum><header>Bidding systems</header><text>Bidding</text></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H2F5BD61656464277BD85B3875F7F52DC"><enum>(6)</enum><text>by striking <quote>629); (6) lease</quote> and inserting</text> <quoted-block display-inline="yes-display-inline" id="H164B8D7A2463480CB7F69F4B15AB0090"><text>629).</text> <subsection id="H3BF47F7C8B894E3B9DD8B5951BEA913"><enum>(g)</enum><header>Geological structures</header><text>Lease</text></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HC0CACAB0FC3244ECB5C73200B7BE792F"><enum>(7)</enum><text>by striking <quote>structures; (7) the</quote> and inserting</text> <quoted-block display-inline="yes-display-inline" id="H6DE38FB703454EA9B6C3C8990D64C09"><text>structures.</text> <subsection id="H1DC552D316A44A0A90E9CBCFC3AA9D8F"><enum>(h)</enum><header>Size of lease tracts</header><text>The</text></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H947B01E81EB54863AA70F081F8E51215"><enum>(8)</enum><text>by striking <quote>Secretary; (8)</quote> and all that follows through <quote>Drilling, production,</quote> and inserting</text> <quoted-block display-inline="yes-display-inline" id="H24A789494A4E481FBFC58519C4E9222"><text>Secretary.</text> <subsection id="H7670DEB567244A92A2B99B5CAE748008"><enum>(i)</enum><header>Terms</header> <paragraph id="H8845471E0955490399AD967EBF1CFF01"><enum>(1)</enum><header>In General</header><text>Each lease shall be—</text> <subparagraph id="H62F35255ACC244D8A2CE7B9705CB0797"><enum>(A)</enum><text>issued for an initial period of not more than 10 years; and</text></subparagraph> <subparagraph id="H8CB3C72F8088434ABC24E84A2B1005F"><enum>(B)</enum><text>renewed for successive 10-year terms if—</text> <clause id="H1306CAE4A3894CC7A8C997F847E9CE1D"><enum>(i)</enum><text>oil or gas is produced from the lease in paying quantities;</text></clause> <clause id="HAF162E6A999D48D7BD311B8807C3EF88"><enum>(ii)</enum><text>oil or gas is capable of being produced in paying quantities; or</text></clause> <clause id="HDEAFF2CB1C164FE3A6448F2EB4F67940"><enum>(iii)</enum><text>drilling or reworking operations, as approved by the Secretary, are conducted on the leased land.</text></clause></subparagraph></paragraph> <paragraph id="HB05BBF07F6234834B0FD7FA893F8BFEC"><enum>(2)</enum><header>Renewal of nonproducing leases</header><text>The Secretary shall renew for an additional 10-year term a lease that does not meet the requirements of paragraph (1)(B) if the lessee submits to the Secretary an application for renewal not later than 60 days before the expiration of the primary lease and—</text> <subparagraph id="H09C6377BA59646C881E1B46200BA00C2"><enum>(A)</enum><text>the lessee certifies, and the Secretary agrees, that hydrocarbon resources were discovered on 1 or more wells drilled on the leased land in such quantities that a prudent operator would hold the lease for potential future development;</text></subparagraph> <subparagraph id="H38DD90D4A2C244BDAE758C062C86E4EC"><enum>(B)</enum><text>the lessee—</text> <clause id="HCA42198E4CDD4D7ABA83A6AC20812E59"><enum>(i)</enum><text>pays the Secretary a renewal fee of $100 per acre of leased land; and</text></clause> <clause id="H896DC0FE0EAC40C397D0C5C398C6CD5"><enum>(ii)</enum><text>provides evidence, and the Secretary agrees that, the lessee has diligently pursued exploration that warrants continuation with the intent of continued exploration or future development of the leased land; or</text></clause></subparagraph> <subparagraph id="H5047856D6274479E8689233CF749A732"><enum>(C)</enum><text>all or part of the lease—</text> <clause id="H065EFE10993C46AB903239F57EE3C484"><enum>(i)</enum><text>is part of a unit agreement covering a lease described in subparagraph (A) or (B); and</text></clause> <clause id="H994B00EF4B7F41D085D6CD1CE1A631C5"><enum>(ii)</enum><text>has not been previously contracted out of the unit.</text></clause></subparagraph></paragraph> <paragraph id="HA2CAE8A2A6284CC69200F5FD66F7F83"><enum>(3)</enum><header>Applicability</header><text>This subsection applies to a lease that—</text> <subparagraph id="HB8E3F7CAF7B64476BDBFC8C8FC21F7"><enum>(A)</enum><text>is entered into before, on, or after the date of enactment of the Energy Policy Act of 2003; and</text></subparagraph> <subparagraph id="H2E050CCF52F2493D97C66D00D8B106F4"><enum>(B)</enum><text>is effective on or after the date of enactment of that Act.</text></subparagraph></paragraph></subsection> <subsection id="H4257CC10AC8F4ED1B23B8C517B3D1714"><enum>(j)</enum><header>Unit agreements</header> <paragraph id="H18641541F19149EE9FD38BC057006183"><enum>(1)</enum><header>In General</header><text>For the purpose of conservation of the natural resources of all or part of any oil or gas pool, field, reservoir, or like area, lessees (including representatives) of the pool, field, reservoir, or like area may unite with each other, or jointly or separately with others, in collectively adopting and operating under a unit agreement for all or part of the pool, field, reservoir, or like area (whether or not any other part of the oil or gas pool, field, reservoir, or like area is already subject to any cooperative or unit plan of development or operation), if the Secretary determines the action to be necessary or advisable in the public interest.</text></paragraph> <paragraph id="H3976979687714DE48041ACAEC3D24500"><enum>(2)</enum><header>Participation by State of Alaska</header><text>The Secretary shall ensure that the State of Alaska is provided the opportunity for active participation concerning creation and management of units formed or expanded under this subsection that include acreage in which the State of Alaska has an interest in the mineral estate.</text></paragraph> <paragraph id="H6219A2B8609643B8B6655CE1FA92E707"><enum>(3)</enum><header>Participation by regional corporations</header><text>The Secretary shall ensure that any Regional Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1602">43 U.S.C. 1602</external-xref>)) is provided the opportunity for active participation concerning creation and management of units that include acreage in which the Regional Corporation has an interest in the mineral estate.</text></paragraph> <paragraph id="H103650EA02474FFAB6DB9CE270F523BF"><enum>(4)</enum><header>Production allocation methodology</header><text>The Secretary may use a production allocation methodology for each participating area within a unit created for land in the Reserve, State of Alaska land, or Regional Corporation land shall, when appropriate, be based on the characteristics of each specific oil or gas pool, field, reservoir, or like area to take into account reservoir heterogeneity and a real variation in reservoir producibility across diverse leasehold interests.</text></paragraph> <paragraph id="HD25A11A58CAA41F200EB07206CFFF9F2"><enum>(5)</enum><header>Benefit of operations</header><text>Drilling, production,</text></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HAD2FD8DD3DC84CEF8797AF71FD525568"><enum>(9)</enum><text>by striking <quote>When separate</quote> and inserting the following:</text> <quoted-block id="HC185EBFE498D4F19B999CFF7001C10F3"> <paragraph id="H6241C81C762A43558C7BB38EA27C9414"><enum>(6)</enum><header>Pooling</header><text>If separate</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HDFA51BBBEFAE4361A14C273727BAC40"><enum>(10)</enum><text>by inserting <quote>(in consultation with the owners of the other land)</quote> after <quote>determined by the Secretary of the Interior</quote>;</text></paragraph> <paragraph id="H9190CFB0D57048DFA92B911421B1B3E6"><enum>(11)</enum><text>by striking <quote>thereto; (10) to</quote> and all that follows through <quote>the terms provided therein</quote> and inserting</text> <quoted-block display-inline="yes-display-inline" id="H87435B4CE922417CA3BC07D66EC39C33"><text>to the agreement.</text> <subsection id="H204879B35233404489F00776B264684"><enum>(k)</enum><header>Exploration incentives</header> <paragraph id="H5A50FD206E0F4C62B5D1F3921B7C33C0"><enum>(1)</enum><header>In General</header> <subparagraph id="HB55BC75092B94233B30013238BB40944"><enum>(A)</enum><header>Waiver, suspension, or Reduction</header><text>To encourage the greatest ultimate recovery of oil or gas or in the interest of conservation, the Secretary may waive, suspend, or reduce the rental fees or minimum royalty, or reduce the royalty on an entire leasehold (including on any lease operated pursuant to a unit agreement), if (after consultation with the State of Alaska and the North Slope Borough of Alaska and the concurrence of any Regional Corporation for leases that include lands available for acquisition by the Regional Corporation under the provisions of section 1431(o) of the Alaska National Interest Lands Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/16/3101">16 U.S.C. 3101 et seq.</external-xref>)) the Secretary determines that the waiver, suspension, or reduction is in the public interest.</text></subparagraph> <subparagraph id="HF733F39C7636448CA8827FD97D3F2300"><enum>(B)</enum><header>Applicability</header><text>This paragraph applies to a lease that—</text> <clause id="H84450BA90DDB436CAA35AF00A8F600A8"><enum>(i)</enum><text>is entered into before, on, or after the date of enactment of the Energy Policy Act of 2003; and</text></clause> <clause id="H8D65072CEFB1457481DEA064D0C9D2BF"><enum>(ii)</enum><text>is effective on or after the date of enactment of that Act.</text></clause></subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H4E0A97DF6C954CE495EDBD89A814F0D6"><enum>(12)</enum><text>by striking <quote>The Secretary is authorized to</quote> and inserting the following:</text> <quoted-block id="HB0B059097EEA4589B013711846815161"> <paragraph id="HEA4822771E5348C4A144DD61D69E102E"><enum>(2)</enum><header>Suspension of operations and production</header><text>The Secretary may</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HF9D27B34BAD4417093FDF00473589149"><enum>(13)</enum><text>by striking <quote>In the event</quote> and inserting the following:</text> <quoted-block id="H9E7AFF9E05D44B41A3319858EC815E2C"> <paragraph id="H9D59281A701244D98BCBDC77C5920874"><enum>(3)</enum><header>Suspension of payments</header><text>If</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H07A2FB6747CF4C3F97FB00DF575BF552"><enum>(14)</enum><text>by striking <quote>thereto; and (11) all</quote> and inserting</text> <quoted-block display-inline="yes-display-inline" id="HB84202FC8EC049A18336651D5DEF1EEF"><text>to the lease.</text> <subsection id="H8F7C0CF3685343C2B59B41B07E335698"><enum>(l)</enum><header>Receipts</header><text>All</text></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H01746167A9914068BEE21C36724C4724"><enum>(15)</enum><text>by redesignating clauses (A), (B), and (C) as clauses (1), (2), and (3), respectively;</text></paragraph> <paragraph id="H1FE44241404B4DE3ADAC309CCF3C756B"><enum>(16)</enum><text>by striking <quote>Any agency</quote> and inserting the following:</text> <quoted-block id="HCC3ECF52036B42B084F78F85E183F6E2"> <subsection id="H03C3572196824FE7AFE3040995A5CA81"><enum>(m)</enum><header>Explorations</header><text>Any agency</text></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H109030D7E8CF459A82E07CD4B9486538"><enum>(17)</enum><text>by striking <quote>Any action</quote> and inserting the following:</text> <quoted-block id="H7FB057D156F54160A977FCA085E04C90"> <subsection id="HE7C7FE498BB2445DACA6008C5EB030"><enum>(n)</enum><header>Environmental impact statements</header> <paragraph id="HD950B47383D54DA8B8144BE2EB5DEDA1"><enum>(1)</enum><header>Judicial review</header><text>Any action</text></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H486A0B46B06A4337A700BFFC48A544EC"><enum>(18)</enum><text>by striking <quote>The detailed</quote> and inserting the following:</text> <quoted-block id="H9FE75D0E163D4F9B924F87ACC543D900"> <paragraph id="H58FB9E6D802B490480CA527C0907E185"><enum>(2)</enum><header>Initial lease sales</header><text>The detailed</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H282B148A68EF4EC98CB0FFE81003848"><enum>(19)</enum><text>by striking <quote>of the Naval Petroleum Reserves Production Act of 1976 (90 Stat. 304; <external-xref legal-doc="usc" parsable-cite="usc/42/6504">42 U.S.C. 6504</external-xref>)</quote>; and</text></paragraph> <paragraph id="H2E8301019E1E40ADBBE55735448586F"><enum>(20)</enum><text>by adding at the end the following:</text> <quoted-block id="H32556679361B44E2A2D97F845EAE1E00"> <subsection id="HCD4F1B3F361D433080C62D28633390CC"><enum>(o)</enum><header>Waiver of administration for conveyed lands</header><text>Notwithstanding section 14(g) of the Alaska Native Claims Settlement Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1613">43 U.S.C. 1613(g)</external-xref>) or any other provision of law—</text> <paragraph id="H4CFC759B198742C1A5DF42D7D266A100"><enum>(1)</enum><text>the Secretary of the Interior shall waive administration of any oil and gas lease insofar as such lease covers any land in the National Petroleum Reserve in Alaska in which the subsurface estate is conveyed to the Arctic Slope Regional Corporation; and</text></paragraph> <paragraph id="HA53C5F5BF2214709AD225756A4283EA5"><enum>(2)</enum><text>if any such conveyance of such subsurface estate does not cover all the land embraced within any such oil and gas lease—</text> <subparagraph id="H48CD659AD8A94C87BA7C83F191C3A0AF"><enum>(A)</enum><text>the person who owns the subsurface estate in any particular portion of the land covered by such lease shall be entitled to all of the revenues reserved under such lease as to such portion, including, without limitation, all the royalty payable with respect to oil or gas produced from or allocated to such particular portion of the land covered by such lease; and</text></subparagraph> <subparagraph id="HF9B9D9C2155743A3AB11C00078DB494D"><enum>(B)</enum><text>the Secretary of the Interior shall segregate such lease into 2 leases, 1 of which shall cover only the subsurface estate conveyed to the Arctic Slope Regional Corporation, and operations, production, or other circumstances (other than payment of rentals or royalties) that satisfy obligations of the lessee under, or maintain, either of the segregated leases shall likewise satisfy obligations of the lessee under, or maintain, the other segregated lease to the same extent as if such segregated leases remained a part of the original unsegregated lease.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section> <section id="HC6D0D13453E8475CBB365C474F3B008C"><enum>318.</enum><header>Orphaned, abandoned, or idled wells on Federal land</header> <subsection id="H59A4E4CBBEDA4F8097D5C1AC3267EC"><enum>(a)</enum><header>In General</header><text>The Secretary, in cooperation with the Secretary of Agriculture, shall establish a program not later than 1 year after the date of enactment of this Act to remediate, reclaim, and close orphaned, abandoned, or idled oil and gas wells located on land administered by the land management agencies within the Department of the Interior and the Department of Agriculture.</text></subsection> <subsection id="H171FC5275C7642328093DB29334622D9"><enum>(b)</enum><header>Activities</header><text>The program under subsection (a) shall—</text> <paragraph id="H430D1C9046214B9BB1B287C75BC8ABB9"><enum>(1)</enum><text>include a means of ranking orphaned, abandoned, or idled wells sites for priority in remediation, reclamation, and closure, based on public health and safety, potential environmental harm, and other land use priorities;</text></paragraph> <paragraph id="HA426D9EB3FFC4FCAA7508113D01D90DA"><enum>(2)</enum><text>provide for identification and recovery of the costs of remediation, reclamation, and closure from persons or other entities currently providing a bond or other financial assurance required under State or Federal law for an oil or gas well that is orphaned, abandoned, or idled; and</text></paragraph> <paragraph id="H628FD71E68B84D6DBC9BA2E5B6993C85"><enum>(3)</enum><text>provide for recovery from the persons or entities identified under paragraph (2), or their sureties or guarantors, of the costs of remediation, reclamation, and closure of such wells.</text></paragraph></subsection> <subsection id="HB69F297FA9D5478289FEF3A3007C1D23"><enum>(c)</enum><header>Cooperation and consultations</header><text>In carrying out the program under subsection (a), the Secretary shall—</text> <paragraph id="H83A68810C681482D92386352CA469C62"><enum>(1)</enum><text>work cooperatively with the Secretary of Agriculture and the States within which Federal land is located; and</text></paragraph> <paragraph id="HAC31D7EA5F8F40278F1D3895EB00D175"><enum>(2)</enum><text>consult with the Secretary of Energy and the Interstate Oil and Gas Compact Commission.</text></paragraph></subsection> <subsection id="HEBDE51F865E24C82ACE4FD5E45C7B76"><enum>(d)</enum><header>Plan</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary, in cooperation with the Secretary of Agriculture, shall submit to Congress a plan for carrying out the program under subsection (a).</text></subsection> <subsection id="HE954044EDF4F40BCB539AC38E188E198"><enum>(e)</enum><header>Idled well</header><text>For the purposes of this section, a well is idled if—</text> <paragraph id="HF1C95CC9136B4E80B0E9D2C2EF8C058"><enum>(1)</enum><text>the well has been nonoperational for at least 7 years; and</text></paragraph> <paragraph id="H1C8CC8F166244460B45C950300028026"><enum>(2)</enum><text>there is no anticipated beneficial use for the well.</text></paragraph></subsection> <subsection id="H2BAD6C6EA6E74A8E8E81C080B8AE9D90"><enum>(f)</enum><header>Technical assistance Program for non-federal land</header> <paragraph id="HC756E93E96394C11889907753351B000"><enum>(1)</enum><header>In General</header><text>The Secretary of Energy shall establish a program to provide technical and financial assistance to oil and gas producing States to facilitate State efforts over a 10-year period to ensure a practical and economical remedy for environmental problems caused by orphaned or abandoned oil and gas exploration or production well sites on State or private land.</text></paragraph> <paragraph id="H86B8553F05B249008E5543C3F842E3E3"><enum>(2)</enum><header>Assistance</header><text>The Secretary of Energy shall work with the States, through the Interstate Oil and Gas Compact Commission, to assist the States in quantifying and mitigating environmental risks of onshore orphaned or abandoned oil or gas wells on State and private land.</text></paragraph> <paragraph id="H5736AB13F4634836B67EEA099CB0D6F5"><enum>(3)</enum><header>Activities</header><text>The program under paragraph (1) shall include—</text> <subparagraph id="HDA491A661EB847A59543979C2D5B7173"><enum>(A)</enum><text>mechanisms to facilitate identification, if feasible, of the persons currently providing a bond or other form of financial assurance required under State or Federal law for an oil or gas well that is orphaned or abandoned;</text></subparagraph> <subparagraph id="HA7EA03BEE1814F3C85B6D2BE2597C242"><enum>(B)</enum><text>criteria for ranking orphaned or abandoned well sites based on factors such as public health and safety, potential environmental harm, and other land use priorities;</text></subparagraph> <subparagraph id="H23E4DC511D5D4F67A5F10000C201754"><enum>(C)</enum><text>information and training programs on best practices for remediation of different types of sites; and</text></subparagraph> <subparagraph id="H8B46D19EC802489B83B29350AA564D4B"><enum>(D)</enum><text>funding of State mitigation efforts on a cost-shared basis.</text></subparagraph></paragraph></subsection> <subsection id="H88F04699796B488686E8DCB575043B2D"><enum>(g)</enum><header>Federal reimbursement for orphaned well reclamation pilot Program</header> <paragraph id="HCDFEE8C77432466EAC568927B1BEA7"><enum>(1)</enum><header>Reimbursement for remediating, reclaiming, and closing wells on land Subject to a new lease</header><text>The Secretary shall carry out a pilot program under which, in issuing a new oil and gas lease on federally owned land on which 1 or more orphaned wells are located, the Secretary—</text> <subparagraph id="H7007C577A58F474D8BE60B9FC393B66"><enum>(A)</enum><text>may require, but not as a condition of the lease, that the lessee remediate, reclaim, and close in accordance with standards established by the Secretary, all orphaned wells on the land leased; and</text></subparagraph> <subparagraph id="H2630F1374B1B4783A3D1BFF215014100"><enum>(B)</enum><text>shall develop a program to reimburse a lessee, through a royalty credit against the Federal share of royalties owed or other means, for the reasonable actual costs of remediating, reclaiming, and closing the orphaned well pursuant to that requirement.</text></subparagraph></paragraph> <paragraph id="H036D42CA758B4DB4872945A4FE1F5E88"><enum>(2)</enum><header>Reimbursement for reclaiming orphaned wells on other land</header><text>In carrying out this subsection, the Secretary—</text> <subparagraph id="HCA840200EF7D4890BC423988C66B9E00"><enum>(A)</enum><text>may authorize any lessee under an oil and gas lease on federally owned land to reclaim in accordance with the Secretary’s standards—</text> <clause id="H37CF6C3F7AE04FDEAB4B1D202BCE7711"><enum>(i)</enum><text>an orphaned well on unleased federally owned land; or</text></clause> <clause id="HD525D379FD234C22B2D917ACA7A08992"><enum>(ii)</enum><text>an orphaned well located on an existing lease on federally owned land for the reclamation of which the lessee is not legally responsible; and</text></clause></subparagraph> <subparagraph id="H95E51443DBBF43F18C821DB924A3268E"><enum>(B)</enum><text>shall develop a program to provide reimbursement of 115 percent of the reasonable actual costs of remediating, reclaiming, and closing the orphaned well, through credits against the Federal share of royalties or other means.</text></subparagraph></paragraph> <paragraph id="H03FBEDFF7D814478BA56DF8EF6FA6EED"><enum>(3)</enum><header>Effect of remediation, reclamation, or closure of well pursuant to an approved remediation plan</header> <subparagraph id="HC46422BC7A7E4C95AB1940148CFBD582"><enum>(A)</enum><header>Definition of remediating party</header><text>In this paragraph the term <term>remediating party</term> means a person who remediates, reclaims, or closes an abandoned, orphaned, or idled well pursuant to this subsection.</text></subparagraph> <subparagraph id="HC94AAB6CC5934D2EB0B4C84F6462E1B5"><enum>(B)</enum><header>General Rule</header><text>A remediating party who remediates, reclaims, or closes an abandoned, orphaned, or idled well in accordance with a detailed written remediation plan approved by the Secretary under this subsection, shall be immune from civil liability under Federal environmental laws, for—</text> <clause id="HE95B43984C714D81B9C48D43057FC6C3"><enum>(i)</enum><text>pre-existing environmental conditions at or associated with the well, unless the remediating party owns or operates, in the past owned or operated, or is related to a person that owns or operates or in the past owned or operated, the well or the land on which the well is located; or</text></clause> <clause id="HF29A83A8720747C29046CFB5C0A7B2B7"><enum>(ii)</enum><text>any remaining releases of pollutants from the well during or after completion of the remediation, reclamation, or closure of the well, unless the remediating party causes increased pollution as a result of activities that are not in accordance with the approved remediation plan.</text></clause></subparagraph> <subparagraph id="HE41F6A8A541647A29B00DAA0B4B355CF"><enum>(C)</enum><header>Limitations</header><text>Nothing in this section shall limit in any way the liability of a remediating party for injury, damage, or pollution resulting from the remediating party’s acts or omissions that are not in accordance with the approved remediation plan, are reckless or willful, constitute gross negligence or wanton misconduct, or are unlawful.</text></subparagraph></paragraph> <paragraph id="H455F77C615AF4768BEF33476B91B46AB"><enum>(4)</enum><header>Regulations</header><text>The Secretary may issue such regulations as are appropriate to carry out this subsection.</text></paragraph></subsection> <subsection id="H697B2DEA9EC84F95B5553C28CAEE27C1"><enum>(h)</enum><header>Authorization of appropriations</header> <paragraph id="HB04356ED41204296925189D91F8DB177"><enum>(1)</enum><header>In General</header><text>There are authorized to be appropriated to carry out this section $25,000,000 for each of fiscal years 2005 through 2009.</text></paragraph> <paragraph id="HA71B68CE10C544F7A9743DA9CDB78019"><enum>(2)</enum><header>Use</header><text>Of the amounts authorized under paragraph (1), $5,000,000 are authorized for each fiscal year for activities under subsection (f).</text></paragraph></subsection></section> <section id="HB59437CD6DB041738168EEB89E656785"><enum>319.</enum><header>Combined hydrocarbon leasing</header> <subsection id="HB63E1AB08174497E9D44BAB1F189384"><enum>(a)</enum><header>Special provisions regarding leasing</header><text>Section 17(b)(2) of the <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/30/226">30 U.S.C. 226(b)(2)</external-xref>) is amended—</text> <paragraph id="H1E9EFD5E1ACF406BB8D7E65F9EDB7C5"><enum>(1)</enum><text>by inserting <quote>(A)</quote> after <quote>(2)</quote>; and</text></paragraph> <paragraph id="H5FE13C9A26304648AC3959843B43F0C0"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block id="HD9000594EAF045DBBB3F076FE855C751"> <subparagraph indent="up2" id="H4467DDBF6F354C3BA532121BDB36178E"><enum>(B)</enum><text>For any area that contains any combination of tar sand and oil or gas (or both), the Secretary may issue under this Act, separately—</text> <clause id="H926A483233AF42F5A934E55200FE0005"><enum>(i)</enum><text>a lease for exploration for and extraction of tar sand; and</text></clause> <clause id="H3763F46C1CDC4AFFA7006B6418D9EAFC"><enum>(ii)</enum><text>a lease for exploration for and development of oil and gas.</text></clause></subparagraph> <subparagraph indent="up2" id="H2AF4DF0678C64946B000E290CBA8CDD7"><enum>(C)</enum><text>A lease issued for tar sand shall be issued using the same bidding process, annual rental, and posting period as a lease issued for oil and gas, except that the minimum acceptable bid required for a lease issued for tar sand shall be $2 per acre.</text></subparagraph> <subparagraph indent="up2" id="HE432A32DC717461889ABAC7284C4981F"><enum>(D)</enum><text>The Secretary may waive, suspend, or alter any requirement under section 26 that a permittee under a permit authorizing prospecting for tar sand must exercise due diligence, to promote any resource covered by a combined hydrocarbon lease.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H4F6D51753F48455B999E4954517CE314"><enum>(b)</enum><header>Conforming amendment</header><text>Section 17(b)(1)(B) of the <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/30/226">30 U.S.C. 226(b)(1)(B)</external-xref>) is amended in the second sentence by inserting <quote>, subject to paragraph (2)(B),</quote> after <quote>Secretary</quote>.</text></subsection> <subsection id="H3B238DA715824694005246FE90B49339"><enum>(c)</enum><header>Regulations</header><text>Not later than 45 days after the date of enactment of this Act, the Secretary shall issue final regulations to implement this section.</text></subsection></section> <section id="H1295C7ED532947F99E2106F69EA5B6D4"><enum>320.</enum><header>Liquified natural gas</header><text display-inline="no-display-inline">Section 3 of the Natural Gas Act (<external-xref legal-doc="usc" parsable-cite="usc/15/717b">15 U.S.C. 717b</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H80B4EB6F3DC445C0913FF0E6359D3EB"> <subsection id="HB87F4B11102F4DD49DAA9AC82622426"><enum>(d)</enum><header>Limitation on Commission authority</header><text>If an applicant under this section proposes to construct or expand a liquified natural gas terminal either onshore or in State waters for the purpose of importing liquified natural gas into the United States, the Commission shall not deny or condition the application solely on the basis that the applicant proposes to utilize the terminal exclusively or partially for gas that the applicant or any affiliate thereof will supply thereto. In all other respects, subsection (a) shall remain applicable to any such proposal.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H09FF548B8EF54EFEA6208FB5E2F0D542"><enum>321.</enum><header>Alternate energy-related uses on the outer Continental Shelf</header> <subsection id="HCC328561E87D4A6FA56849A76E35E1B1"><enum>(a)</enum><header>Amendment to Outer Continental Shelf Lands Act</header><text>Section 8 of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="HFBCC0D21FD6D4044B7AAA79849AACEF7"> <subsection id="HBF5E3B01BD00424396C444B769DEA0AB"><enum>(p)</enum><header>Leases, easements, or rights-of-way for energy and related purposes</header> <paragraph id="H577B5AAE6E9241BF86FBAE49EB912C23"><enum>(1)</enum><header>In General</header><text>The Secretary, in consultation with the Secretary of the Department in which the Coast Guard is operating and other relevant departments and agencies of the Federal Government, may grant a lease, easement, or right-of-way on the outer Continental Shelf for activities not otherwise authorized in this Act, the Deepwater Port Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/33/1501">33 U.S.C. 1501 et seq.</external-xref>), or the Ocean Thermal Energy Conversion Act of 1980 (<external-xref legal-doc="usc" parsable-cite="usc/42/9101">42 U.S.C. 9101 et seq.</external-xref>), or other applicable law, if those activities—</text> <subparagraph id="HBCECA604E39749EF802BC2BC7D5F335F"><enum>(A)</enum><text>support exploration, development, production, transportation, or storage of oil, natural gas, or other minerals;</text></subparagraph> <subparagraph id="H483692BBF1EA48D0002D568873E3ADD4"><enum>(B)</enum><text>produce or support production, transportation, or transmission of energy from sources other than oil and gas; or</text></subparagraph> <subparagraph id="H7270F857C0594356A4E7E8A718A1ED17"><enum>(C)</enum><text>use, for energy-related or marine-related purposes, facilities currently or previously used for activities authorized under this Act.</text></subparagraph></paragraph> <paragraph id="H145DE78EA0144BDEADE142C357A4775E"><enum>(2)</enum><header>Payments</header><text>The Secretary shall establish reasonable forms of payments for any easement or right-of-way granted under this subsection. Such payments shall not be assessed on the basis of throughput or production. The Secretary may establish fees, rentals, bonus, or other payments by rule or by agreement with the party to which the lease, easement, or right-of-way is granted.</text></paragraph> <paragraph id="H5C07D6DCC59D4DF8BCCED7D9F1BB439B"><enum>(3)</enum><header>Consultation</header><text>Before exercising authority under this subsection, the Secretary shall consult with the Secretary of Defense and other appropriate agencies concerning issues related to national security and navigational obstruction.</text></paragraph> <paragraph id="H7AA34E03223B483A8E4352660632807C"><enum>(4)</enum><header>Competitive or noncompetitive basis</header> <subparagraph id="HBB075D88AFEE4F77AB0046ED2485A5D0"><enum>(A)</enum><header>In General</header><text>The Secretary may issue a lease, easement, or right-of-way for energy and related purposes as described in paragraph (1) on a competitive or noncompetitive basis.</text></subparagraph> <subparagraph id="H5095D9D3AC0048B6863BA4D414D3500"><enum>(B)</enum><header>Considerations</header><text>In determining whether a lease, easement, or right-of-way shall be granted competitively or noncompetitively, the Secretary shall consider such factors as—</text> <clause id="H8CF0A33D8A8945E686B67EFE5505C03F"><enum>(i)</enum><text>prevention of waste and conservation of natural resources;</text></clause> <clause id="H38CE6FC68CFC4F57B0F3AC5943BFD604"><enum>(ii)</enum><text>the economic viability of an energy project;</text></clause> <clause id="HBE0FBF51466C4384BED5AEAD7CEB1282"><enum>(iii)</enum><text>protection of the environment;</text></clause> <clause id="H1448166B4ADE4343817CBE40EDBB2324"><enum>(iv)</enum><text>the national interest and national security;</text></clause> <clause id="H7A99F11F9F7A41D689BB6282D31FBBC2"><enum>(v)</enum><text>human safety;</text></clause> <clause id="H6AAB9B3CEBCC4B3ABD31DBE7E19057BD"><enum>(vi)</enum><text>protection of correlative rights; and</text></clause> <clause id="HC97EC3BE4EA94A6A86247661AA44E4D9"><enum>(vii)</enum><text>potential return for the lease, easement, or right-of-way.</text></clause></subparagraph></paragraph> <paragraph id="HD66FB8FBCC7F4C68A4900072509F4358"><enum>(5)</enum><header>Regulations</header><text>Not later than 270 days after the date of enactment of the Energy Policy Act of 2003, the Secretary, in consultation with the Secretary of the Department in which the Coast Guard is operating and other relevant agencies of the Federal Government and affected States, shall issue any necessary regulations to ensure safety, protection of the environment, prevention of waste, and conservation of the natural resources of the outer Continental Shelf, protection of national security interests, and protection of correlative rights in the outer Continental Shelf.</text></paragraph> <paragraph id="H7C942E0FFA9547D1B2F199326FE997D"><enum>(6)</enum><header>Security</header><text>The Secretary shall require the holder of a lease, easement, or right-of-way granted under this subsection to furnish a surety bond or other form of security, as prescribed by the Secretary, and to comply with such other requirements as the Secretary considers necessary to protect the interests of the United States.</text></paragraph> <paragraph id="H98C8C8E7044D4329B69710E4D0F3EF00"><enum>(7)</enum><header>Effect of subsection</header><text>Nothing in this subsection displaces, supersedes, limits, or modifies the jurisdiction, responsibility, or authority of any Federal or State agency under any other Federal law.</text></paragraph> <paragraph id="H6C348168C1BD442897B0BF91FBD20097"><enum>(8)</enum><header>Applicability</header><text>This subsection does not apply to any area on the outer Continental Shelf designated as a National Marine Sanctuary.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HA13F288D092B45A1AB5642B772E39462"><enum>(b)</enum><header>Conforming amendment</header><text>Section 8 of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337</external-xref>) is amended by striking the section heading and inserting the following: <quote><header-in-text level="subsection">Leases, Easements, and Rights-of-Way on the Outer Continental Shelf</header-in-text>.—</quote>.</text></subsection> <subsection id="H7DA174371B1F4A80A7947EF5E3847BB4"><enum>(c)</enum><header>Savings provision</header><text>Nothing in the amendment made by subsection (a) requires, with respect to any project—</text> <paragraph id="H8F2509A586374E089F305C69AA4733D3"><enum>(1)</enum><text>for which offshore test facilities have been constructed before the date of enactment of this Act; or</text></paragraph> <paragraph id="HB87DFD0B3DC44DF7A1A86006D95BE142"><enum>(2)</enum><text>for which a request for proposals has been issued by a public authority,</text></paragraph><continuation-text continuation-text-level="subsection">any resubmittal of documents previously submitted or any reauthorization of actions previously authorized.</continuation-text></subsection></section> <section id="H0E9FE50CE15B49ED804E1C68D416BD75"><enum>322.</enum><header>Preservation of geological and geophysical data</header> <subsection id="H107EF5EA91BA4FF682EAF1649C109834"><enum>(a)</enum><header>Short title</header><text>This section may be cited as the <quote><short-title>National Geological and Geophysical Data Preservation Program Act of 2004</short-title></quote>.</text></subsection> <subsection id="H1B28873F2EDA41F68D4DACB909D461C3"><enum>(b)</enum><header>Program</header><text>The Secretary shall carry out a National Geological and Geophysical Data Preservation Program in accordance with this section—</text> <paragraph id="HC3464DDA2C7F45AABAD5916200B1BEFB"><enum>(1)</enum><text>to archive geologic, geophysical, and engineering data, maps, well logs, and samples;</text></paragraph> <paragraph id="HDC8663A3EFC04CA091244B8E00013853"><enum>(2)</enum><text>to provide a national catalog of such archival material; and</text></paragraph> <paragraph id="H9BB80E1AD5524AB1BD51A6D21EC42884"><enum>(3)</enum><text>to provide technical and financial assistance related to the archival material.</text></paragraph></subsection> <subsection id="HC952523C9BDD4DBBB9C7C0001E6E88FF"><enum>(c)</enum><header>Plan</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to Congress a plan for the implementation of the Program.</text></subsection> <subsection id="H6F3DA9009A804FF09BE223FF39EDF984"><enum>(d)</enum><header>Data archive system</header> <paragraph id="H435F8BC555744E59B08F108C1DDCC4A1"><enum>(1)</enum><header>Establishment</header><text>The Secretary shall establish, as a component of the Program, a data archive system to provide for the storage, preservation, and archiving of subsurface, surface, geological, geophysical, and engineering data and samples. The Secretary, in consultation with the Advisory Committee, shall develop guidelines relating to the data archive system, including the types of data and samples to be preserved.</text></paragraph> <paragraph id="HC4424B205CC14809B6D724E0D59E755"><enum>(2)</enum><header>System components</header><text>The system shall be comprised of State agencies that elect to be part of the system and agencies within the Department of the Interior that maintain geological and geophysical data and samples that are designated by the Secretary in accordance with this subsection. The Program shall provide for the storage of data and samples through data repositories operated by such agencies.</text></paragraph> <paragraph id="H0186149D284243BFB923B8992626DD16"><enum>(3)</enum><header>Limitation of designation</header><text>The Secretary may not designate a State agency as a component of the data archive system unless that agency is the agency that acts as the geological survey in the State.</text></paragraph> <paragraph id="H82DDC7FEDC234F4E8F7F152531905C1B"><enum>(4)</enum><header>Data from Federal land</header><text>The data archive system shall provide for the archiving of relevant subsurface data and samples obtained from Federal land—</text> <subparagraph id="H2996998901FE4F7580A4E1B65F61E806"><enum>(A)</enum><text>in the most appropriate repository designated under paragraph (2), with preference being given to archiving data in the State in which the data were collected; and</text></subparagraph> <subparagraph id="H7F202FAD49154045BA25D24BAA0A163"><enum>(B)</enum><text>consistent with all applicable law and requirements relating to confidentiality and proprietary data.</text></subparagraph></paragraph></subsection> <subsection id="HFF846C270BFE4D00B0B3FB9C8B398CA3"><enum>(e)</enum><header>National catalog</header> <paragraph id="H239DACB2079D45F9AF3FCA00B894F250"><enum>(1)</enum><header>In General</header><text>As soon as practicable after the date of enactment of this Act, the Secretary shall develop and maintain, as a component of the Program, a national catalog that identifies—</text> <subparagraph id="H12E413F0E0264CEC94C0214BB0AB4C8F"><enum>(A)</enum><text>data and samples available in the data archive system established under subsection (d);</text></subparagraph> <subparagraph id="H476EEBE5FDBB4BFDAACB548806625D00"><enum>(B)</enum><text>the repository for particular material in the system; and</text></subparagraph> <subparagraph id="H8F84584FB0914DFA85AC385E85EBC14D"><enum>(C)</enum><text>the means of accessing the material.</text></subparagraph></paragraph> <paragraph id="H0C27E2BD73BD4E3DB866549D001CF400"><enum>(2)</enum><header>Availability</header><text>The Secretary shall make the national catalog accessible to the public on the site of the Survey on the Internet, consistent with all applicable requirements related to confidentiality and proprietary data.</text></paragraph></subsection> <subsection id="H28F007D665504E38AF8E57E0C4B11615"><enum>(f)</enum><header>Advisory Committee</header> <paragraph id="HB8DD29793F424723BB7325BF4EA7B14"><enum>(1)</enum><header>In General</header><text>The Advisory Committee shall advise the Secretary on planning and implementation of the Program.</text></paragraph> <paragraph id="HAD45ECB17966484EA6823CDE1C128C9F"><enum>(2)</enum><header>New duties</header><text>In addition to its duties under the National Geologic Mapping Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/43/31a">43 U.S.C. 31a et seq.</external-xref>), the Advisory Committee shall perform the following duties:</text> <subparagraph id="HD8D994F3F9F440D7B64E41F3F786DAC6"><enum>(A)</enum><text>Advise the Secretary on developing guidelines and procedures for providing assistance for facilities under subsection (g)(1).</text></subparagraph> <subparagraph id="H72AC7BD764C44F86B267BC293FD3C484"><enum>(B)</enum><text>Review and critique the draft implementation plan prepared by the Secretary under subsection (c).</text></subparagraph> <subparagraph id="HFB39A8903E5C4A67B8B774B7529850DC"><enum>(C)</enum><text>Identify useful studies of data archived under the Program that will advance understanding of the Nation’s energy and mineral resources, geologic hazards, and engineering geology.</text></subparagraph> <subparagraph id="HA90A72D357AE47ABA63CD7D34B2F9433"><enum>(D)</enum><text>Review the progress of the Program in archiving significant data and preventing the loss of such data, and the scientific progress of the studies funded under the Program.</text></subparagraph> <subparagraph id="H08AB62FA957F402900EBC0BC5934A051"><enum>(E)</enum><text>Include in the annual report to the Secretary required under section 5(b)(3) of the National Geologic Mapping Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/43/31d">43 U.S.C. 31d(b)(3)</external-xref>) an evaluation of the progress of the Program toward fulfilling the purposes of the Program under subsection (b).</text></subparagraph></paragraph></subsection> <subsection id="H405C38A92C8443CE96AF2F5F4FDB379"><enum>(g)</enum><header>Financial assistance</header> <paragraph id="HDEADC866F5BE4DD49F1BE1B3EF461850"><enum>(1)</enum><header>Archive facilities</header><text>Subject to the availability of appropriations, the Secretary shall provide financial assistance to a State agency that is designated under subsection (d)(2) for providing facilities to archive energy material.</text></paragraph> <paragraph id="H2DAC115AD476414F95C0A8F755A84995"><enum>(2)</enum><header>Studies</header><text>Subject to the availability of appropriations, the Secretary shall provide financial assistance to any State agency designated under subsection (d)(2) for studies and technical assistance activities that enhance understanding, interpretation, and use of materials archived in the data archive system established under subsection (d).</text></paragraph> <paragraph id="H3097BF4F4CAE408A8D69ABFFFF4D348B"><enum>(3)</enum><header>Federal share</header><text>The Federal share of the cost of an activity carried out with assistance under this subsection shall be not more than 50 percent of the total cost of the activity.</text></paragraph> <paragraph id="H43553F8E6BDA429693D556A1EFFF0052"><enum>(4)</enum><header>Private contributions</header><text>The Secretary shall apply to the non-Federal share of the cost of an activity carried out with assistance under this subsection the value of private contributions of property and services used for that activity.</text></paragraph></subsection> <subsection id="H1D2702B26E0247758F00825524B0A4DD"><enum>(h)</enum><header>Report</header><text>The Secretary shall include in each report under section 8 of the National Geologic Mapping Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/43/31g">43 U.S.C. 31g</external-xref>)—</text> <paragraph id="HB2C92CCC757740E09690F84F009B75CC"><enum>(1)</enum><text>a description of the status of the Program;</text></paragraph> <paragraph id="HF5E055783CEC4F07AE6E8EA4567EEC3C"><enum>(2)</enum><text>an evaluation of the progress achieved in developing the Program during the period covered by the report; and</text></paragraph> <paragraph id="H399C9F16D0EB4D9285D27100944CD1C2"><enum>(3)</enum><text>any recommendations for legislative or other action the Secretary considers necessary and appropriate to fulfill the purposes of the Program under subsection (b).</text></paragraph></subsection> <subsection id="H678BA1F0999346739B2E7BEBBF528C19"><enum>(i)</enum><header>Maintenance of State effort</header><text>It is the intent of Congress that the States not use this section as an opportunity to reduce State resources applied to the activities that are the subject of the Program.</text></subsection> <subsection id="H308E3EF8F5FB48BF9C022E79858D661C"><enum>(j)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HB6290E1629B44BC7A0DFFC80304D0015"><enum>(1)</enum><header>Advisory Committee</header><text>The term <term>Advisory Committee</term> means the advisory committee established under section 5 of the National Geologic Mapping Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/43/31d">43 U.S.C. 31d</external-xref>).</text></paragraph> <paragraph id="H45A3B443F33C4AA5B6C738C5255627AD"><enum>(2)</enum><header>Program</header><text>The term <term>Program</term> means the National Geological and Geophysical Data Preservation Program carried out under this section.</text></paragraph> <paragraph id="H717D9EC349A249799813E2B75642F904"><enum>(3)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of the Interior, acting through the Director of the United States Geological Survey.</text></paragraph> <paragraph id="H4A076EE6BDA34AB9AE876E493E962129"><enum>(4)</enum><header>Survey</header><text>The term <term>Survey</term> means the United States Geological Survey.</text></paragraph></subsection> <subsection id="HFA7AEB7DC1ED4873BF3FF3786275D2AB"><enum>(k)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out this section $30,000,000 for each of fiscal years 2004 through 2008.</text></subsection></section> <section id="HC5823813D92248D78C00D771C4A9484"><enum>323.</enum><header>Oil and gas lease acreage limitations</header><text display-inline="no-display-inline">Section 27(d)(1) of the <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/30/184">30 U.S.C. 184(d)(1)</external-xref>) is amended by inserting after <quote>acreage held in special tar sand areas</quote> the following: <quote>, and acreage under any lease any portion of which has been committed to a federally approved unit or cooperative plan or communitization agreement or for which royalty (including compensatory royalty or royalty in-kind) was paid in the preceding calendar year,</quote>.</text></section> <section id="H36D27EDD0E934A8BBF01FA17CB4527ED"><enum>324.</enum><header>Assessment of dependence of State of Hawaii on oil</header> <subsection id="H08694FE104184CD2AA102D64F2C9813F"><enum>(a)</enum><header>Assessment</header><text>The Secretary of Energy shall assess the economic implication of the dependence of the State of Hawaii on oil as the principal source of energy for the State, including—</text> <paragraph id="HD85EE97E6F694E738106793668E6666E"><enum>(1)</enum><text>the short- and long-term prospects for crude oil supply disruption and price volatility and potential impacts on the economy of Hawaii;</text></paragraph> <paragraph id="HF9A7CC8AC3834B110028CC4F9EAAF2CD"><enum>(2)</enum><text>the economic relationship between oil-fired generation of electricity from residual fuel and refined petroleum products consumed for ground, marine, and air transportation;</text></paragraph> <paragraph id="H6ED9A9453216499097412DDA05DF4FFE"><enum>(3)</enum><text>the technical and economic feasibility of increasing the contribution of renewable energy resources for generation of electricity, on an island-by-island basis, including—</text> <subparagraph id="HFF28DB20DE034A0E00407FF827F14E5C"><enum>(A)</enum><text>siting and facility configuration;</text></subparagraph> <subparagraph id="H96438FB6557D4E1592A9B25DF231C069"><enum>(B)</enum><text>environmental, operational, and safety considerations;</text></subparagraph> <subparagraph id="HA98382452BA343A7803343969334E23B"><enum>(C)</enum><text>the availability of technology;</text></subparagraph> <subparagraph id="H20FBBB4C675C46C0BEA9202C72CA16D3"><enum>(D)</enum><text>effects on the utility system including reliability;</text></subparagraph> <subparagraph id="HBF4B93E492EE45DB94115760F6CFC2F1"><enum>(E)</enum><text>infrastructure and transport requirements;</text></subparagraph> <subparagraph id="HBB656A43A937415CA84E4F430098EC31"><enum>(F)</enum><text>community support; and</text></subparagraph> <subparagraph id="HEC924C5089A54D70A56BCA8300801896"><enum>(G)</enum><text>other factors affecting the economic impact of such an increase and any effect on the economic relationship described in paragraph (2);</text></subparagraph></paragraph> <paragraph id="H105A464BC1F4493BABBE7B49FE0035CF"><enum>(4)</enum><text>the technical and economic feasibility of using liquified natural gas to displace residual fuel oil for electric generation, including neighbor island opportunities, and the effect of the displacement on the economic relationship described in paragraph (2), including—</text> <subparagraph id="H56B6FE9FA7DB48A59EA2D7E2E83D272F"><enum>(A)</enum><text>the availability of supply;</text></subparagraph> <subparagraph id="HA75D21F98ADA427E99D87FA6185100EF"><enum>(B)</enum><text>siting and facility configuration for onshore and offshore liquified natural gas receiving terminals;</text></subparagraph> <subparagraph id="H3C9C0CE83AEC416BB4859638A775C141"><enum>(C)</enum><text>the factors described in subparagraphs (B) through (F) of paragraph (3); and</text></subparagraph> <subparagraph id="H6914C286F0D14BD0958F84DE423B9299"><enum>(D)</enum><text>other economic factors;</text></subparagraph></paragraph> <paragraph id="HA7E1E4C0D24A43D3AAFB043436D0BCC8"><enum>(5)</enum><text>the technical and economic feasibility of using renewable energy sources (including hydrogen) for ground, marine, and air transportation energy applications to displace the use of refined petroleum products, on an island-by-island basis, and the economic impact of the displacement on the relationship described in (2); and</text></paragraph> <paragraph id="H52E6FB8EBB55431197F1F61112DFA75C"><enum>(6)</enum><text>an island-by-island approach to—</text> <subparagraph id="H8F4423B62D4D4971BBC2922E65F026E1"><enum>(A)</enum><text>the development of hydrogen from renewable resources; and</text></subparagraph> <subparagraph id="HD22AE00F873A4FAB9BAD4207C9FEFAFA"><enum>(B)</enum><text>the application of hydrogen to the energy needs of Hawaii</text></subparagraph></paragraph></subsection> <subsection id="H7EA2750852C246FB8414F4A9C5642067"><enum>(b)</enum><header>Contracting authority</header><text>The Secretary of Energy may carry out the assessment under subsection (a) directly or, in whole or in part, through 1 or more contracts with qualified public or private entities.</text></subsection> <subsection id="H4BEDED9F2D774B74A3B6DF80065D3520"><enum>(c)</enum><header>Report</header><text>Not later than 300 days after the date of enactment of this Act, the Secretary of Energy shall prepare, in consultation with agencies of the State of Hawaii and other stakeholders, as appropriate, and submit to Congress, a report detailing the findings, conclusions, and recommendations resulting from the assessment.</text></subsection> <subsection id="H8D63190D18EF4AFCAFC566E8E7218BCA"><enum>(d)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated such sums as are necessary to carry out this section.</text></subsection></section> <section id="H8FA2F48D9D0C4F09A2E0C670710777FF"><enum>325.</enum><header>Deadline for decision on appeals of consistency determination under the <act-name parsable-cite="CZMA72">Coastal Zone Management Act of 1972</act-name></header> <subsection id="H5A4D78C8360F402480B285C33102DDE"><enum>(a)</enum><header>In General</header><text>Section 319 of the <act-name parsable-cite="CZMA72">Coastal Zone Management Act of 1972</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/16/1465">16 U.S.C. 1465</external-xref>) is amended to read as follows:</text> <quoted-block style="traditional" act-name="Coastal Zone Management Act of 1972" id="HD7B0CE0B9FDC40E8AB678E891FD1CDFB"> <section id="H84D7A08D786D4053B695E9F186E9F658"><enum>319.</enum><header>Appeals to the Secretary</header> <subsection display-inline="yes-display-inline" id="HC743ACFA8CCE4F07BC9D7FEA2E888377"><enum>(a)</enum><header>Notice</header><text>The Secretary shall publish an initial notice in the Federal Register not later than 30 days after the date of the filing of any appeal to the Secretary of a consistency determination under section 307.</text></subsection> <subsection id="HAA1AE9D245884DD5BE67147255008C5E"><enum>(b)</enum><header>Closure of record</header> <paragraph id="H9F5FA1C2884949CD00335C1BEAC600C5"><enum>(1)</enum><header>In General</header><text>Not later than the end of the 120-day period beginning on the date of publication of an initial notice under subsection (a), the Secretary shall receive no more filings on the appeal and the administrative record regarding the appeal shall be closed.</text></paragraph> <paragraph id="HDFFFDB07101C4988A44DCFC8BDC8176E"><enum>(2)</enum><header>Notice</header><text>Upon the closure of the administrative record, the Secretary shall immediately publish a notice that the administrative record has been closed.</text></paragraph></subsection> <subsection id="HC42C4AD40FC245C889EAAFBA5104DBCB"><enum>(c)</enum><header>Deadline for decision</header><text>The Secretary shall issue a decision in any appeal filed under section 307 not later than 120 days after the closure of the administrative record.</text></subsection> <subsection id="HA944570191014A0487C2FE5F6DF51379"><enum>(d)</enum><header>Application</header><text>This section applies to appeals initiated by the Secretary and appeals filed by an applicant.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HCE9AEDEA58EA4C3F8302DE6E203E826"><enum>(b)</enum><header>Application</header> <paragraph id="HF8B6706F7FC545508E0570AD35B2657B"><enum>(1)</enum><header>In General</header><text>Except as provided in paragraph (2), the amendment made by subsection (a) shall apply with respect to any appeal initiated or filed before, on, or after the date of enactment of this Act.</text></paragraph> <paragraph id="H59C6622C6F424B9F8178F36DA5A5EC71"><enum>(2)</enum><header>Limitation</header><text>Subsection (a) of section 319 of the <act-name parsable-cite="CZMA72">Coastal Zone Management Act of 1972</act-name> (as amended by subsection (a)) shall not apply with respect to an appeal initiated or filed before the date of enactment of this Act.</text></paragraph></subsection> <subsection id="H1307747C08DE41DABCB3391E9F7E48BE"><enum>(c)</enum><header>Closure of record for appeal filed before date of enactment</header><text>Notwithstanding section 319(b)(1) of the <act-name parsable-cite="CZMA72">Coastal Zone Management Act of 1972</act-name> (as amended by this section), in the case of an appeal of a consistency determination under section 307 of that Act initiated or filed before the date of enactment of this Act, the Secretary of Commerce shall receive no more filings on the appeal and the administrative record regarding the appeal shall be closed not later than 120 days after the date of enactment of this Act.</text></subsection></section> <section id="H81EAA82D5FFE4471B1906E98BCD36FF8"><enum>326.</enum><header>Reimbursement for costs of NEPA analyses, documentation, and studies</header> <subsection id="H00FD47CB77E54D9D9B008C4EB3CC13BE"><enum>(a)</enum><header>In General</header><text>The <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> is amended by inserting after section 37 (<external-xref legal-doc="usc" parsable-cite="usc/30/193">30 U.S.C. 193</external-xref>) the following:</text> <quoted-block style="traditional" act-name="Mineral Leasing Act" id="H93B7202BD1094C60B8B2C9B95B47ED53"> <section id="HB88F91A01CFC4474B5F1EDB450E53922"><enum>38.</enum><header>Reimbursement for costs of certain analyses, documentation, and studies</header> <subsection display-inline="yes-display-inline" id="H8437DA318049418E817BD0CFEC990055"><enum>(a)</enum><header>In General</header><text>The Secretary of the Interior may reimburse a person that is a lessee, operator, operating rights owner, or applicant for any lease under this Act for reasonable amounts paid by the person for preparation for the Secretary by a contractor or other person selected by the Secretary of any project-level analysis, documentation, or related study required pursuant to the <act-name parsable-cite="NEPA69">National Environmental Policy Act of 1969</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/4321">42 U.S.C. 4321 et seq.</external-xref>) with respect to the lease.</text></subsection> <subsection id="HDD4E5B03E6504D20819DB47478B2FDAF"><enum>(b)</enum><header>Conditions</header><text>The Secretary may provide reimbursement under subsection (a) only if—</text> <paragraph id="H8645C0FE39084268855BB952C2AD0216"><enum>(1)</enum><text>adequate funding to enable the Secretary to timely prepare the analysis, documentation, or related study is not appropriated;</text></paragraph> <paragraph id="H8940C61A2E9C4D819237915FF73B7F27"><enum>(2)</enum><text>the person paid the costs voluntarily;</text></paragraph> <paragraph id="HA1E83BB768BC455581241C56088B36E5"><enum>(3)</enum><text>the person maintains records of its costs in accordance with regulations issued by the Secretary;</text></paragraph> <paragraph id="H9CE6AFBD763D496EAD3BAA285F00A186"><enum>(4)</enum><text>the reimbursement is in the form of a reduction in the Federal share of the royalty required to be paid for the lease for which the analysis, documentation, or related study is conducted, and is agreed to by the Secretary and the person reimbursed prior to commencing the analysis, documentation, or related study; and</text></paragraph> <paragraph id="H913711FC44CD4F5FBA44F89B2718758E"><enum>(5)</enum><text>the agreement required under paragraph (4) contains provisions—</text> <subparagraph id="H8F48DC8B00394C77AA0782D3D02D7042"><enum>(A)</enum><text>reducing royalties owed on lease production based on market prices;</text></subparagraph> <subparagraph id="H4FA27C38B67346778CD485B3F567A155"><enum>(B)</enum><text>stipulating an automatic termination of the royalty reduction upon recovery of documented costs; and</text></subparagraph> <subparagraph id="HA2C6B6E05D3C4C11B357C093DED44798"><enum>(C)</enum><text>providing a process by which the lessee may seek reimbursement for circumstances in which production from the specified lease is not possible.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H420012A446FC483CA18134068211B6A9"><enum>(b)</enum><header>Application</header><text>The amendment made by this section shall apply with respect to an analysis, documentation, or a related study conducted on or after the date of enactment of this Act for any lease entered into before, on, or after the date of enactment of this Act.</text></subsection> <subsection id="H588D409D8C0346F9BDC7E935B42D05D"><enum>(c)</enum><header>Deadline for regulations</header><text>The Secretary shall issue regulations implementing the amendment made by this section by not later than 1 year after the date of enactment of this Act.</text></subsection></section> <section id="HD4EFE8651D2D4D5EB016D9307EC5CAEB"><enum>327.</enum><header>Hydraulic fracturing</header><text display-inline="no-display-inline">Paragraph (1) of section 1421(d) of the Safe Drinking Water Act (<external-xref legal-doc="usc" parsable-cite="usc/42/300h">42 U.S.C. 300h(d)</external-xref>) is amended to read as follows:</text> <quoted-block id="HB0391F1787EE43CBB6F412553876D363"> <paragraph id="H2EF1EAD6015E4F5A91A24EF7DAEF055B"><enum>(1)</enum><header>Underground injection</header><text>The term <term>underground injection</term>—</text> <subparagraph id="H288EA9B09B3F49DF88E9DB7D84D8251"><enum>(A)</enum><text>means the subsurface emplacement of fluids by well injection; and</text></subparagraph> <subparagraph id="H5EFEAEDBECB7478494227B94312F0053"><enum>(B)</enum><text>excludes—</text> <clause id="H02192BF3C463461EA789761EC7BC801E"><enum>(i)</enum><text>the underground injection of natural gas for purposes of storage; and</text></clause> <clause id="HE7235E1583BA4620981C8D436004EAFE"><enum>(ii)</enum><text>the underground injection of fluids or propping agents pursuant to hydraulic fracturing operations related to oil or gas production activities.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H184867997DEB4816BB35EEEA723922FB"><enum>328.</enum><header>Oil and gas exploration and production defined</header><text display-inline="no-display-inline">Section 502 of the <act-name parsable-cite="FWPCA">Federal Water Pollution Control Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/33/1362">33 U.S.C. 1362</external-xref>) is amended by adding at the end the following:</text> <quoted-block act-name="Federal Water Pollution Control Act" id="H11CA72F02B4A40119E02A1D8D21D2BF1"> <paragraph id="H90B8EFD3338B4B92A6986C9B01686051"><enum>(24)</enum><header>Oil and gas exploration and production</header><text>The term <term>oil and gas exploration, production, processing, or treatment operations or transmission facilities</term> means all field activities or operations associated with exploration, production, processing, or treatment operations, or transmission facilities, including activities necessary to prepare a site for drilling and for the movement and placement of drilling equipment, whether or not such field activities or operations may be considered to be construction activities.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HBFD820C0C6B54F98B22C83A63C90928D"><enum>329.</enum><header>Outer Continental Shelf provisions</header> <subsection id="H961088ED995947198B598ECEF94703E"><enum>(a)</enum><header>Storage on the outer Continental Shelf</header><text>Section 5(a)(5) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1334">43 U.S.C. 1334(a)(5)</external-xref>) is amended by inserting <quote>from any source</quote> after <quote>oil and gas</quote>.</text></subsection> <subsection id="H0256F6EE666242958D76928E39AF7B87"><enum>(b)</enum><header>Deepwater projects</header><text>Section 6 of the Deepwater Port Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/33/1505">33 U.S.C. 1505</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H7DD9C57DE66D49808907325D961CA27F"> <subsection id="H929E37357791408AB856A0A8348B4668"><enum>(d)</enum><header>Reliance on activities of other agencies</header><text>In fulfilling the requirements of section 5(f)—</text> <paragraph id="H0BE258C9FF544AA984DE365E099F3C8"><enum>(1)</enum><text>to the extent that other Federal agencies have prepared environmental impact statements, are conducting studies, or are monitoring the affected human, marine, or coastal environment, the Secretary may use the information derived from those activities in lieu of directly conducting such activities; and</text></paragraph> <paragraph id="H5C2E6B0DC9FE4963B7C6911301EB3B5E"><enum>(2)</enum><text>the Secretary may use information obtained from any State or local government or from any person.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HD06D4897FD7545A5B846B7454EB5394"><enum>(c)</enum><header>Natural gas defined</header><text>Section 3(13) of the Deepwater Port Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/33/1502">33 U.S.C. 1502(13)</external-xref>) is amended to read as follows:</text> <quoted-block id="H0AB9FE88DE3F437EBAC68F0861C59C88"> <paragraph id="HB62D58D9FF294A43A840F12BF3902C61"><enum>(13)</enum><text>natural gas means—</text> <subparagraph id="H10102E550B9341738898CDDA2B770042"><enum>(A)</enum><text>natural gas unmixed; or</text></subparagraph> <subparagraph id="HA7AD888B4E0842A300005E516765A4C"><enum>(B)</enum><text>any mixture of natural or artificial gas, including compressed or liquefied natural gas, natural gas liquids, liquefied petroleum gas, and condensate recovered from natural gas;</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="HBA615A8040FB4157BF57C710770030C9"><enum>330.</enum><header>Appeals relating to pipeline construction or offshore mineral development projects</header> <subsection id="H4375817F14D3418800AB4815002708E3"><enum>(a)</enum><header>Agency of record, pipeline construction projects</header><text>Any Federal administrative agency proceeding that is an appeal or review under section 319 of the <act-name parsable-cite="CZMA72">Coastal Zone Management Act of 1972</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/16/1465">16 U.S.C. 1465</external-xref>), as amended by this Act, related to Federal authority for an interstate natural gas pipeline construction project, including construction of natural gas storage and liquefied natural gas facilities, shall use as its exclusive record for all purposes the record compiled by the Federal Energy Regulatory Commission pursuant to the Commission’s proceeding under sections 3 and 7 of the Natural Gas Act (<external-xref legal-doc="usc" parsable-cite="usc/15/717b">15 U.S.C. 717b</external-xref>, 717f).</text></subsection> <subsection id="H1CCF51B29EAC41D9B962EADB22F8935"><enum>(b)</enum><header>Sense of Congress</header><text>It is the sense of Congress that all Federal and State agencies with jurisdiction over interstate natural gas pipeline construction activities should coordinate their proceedings within the timeframes established by the Federal Energy Regulatory Commission when the Commission is acting under sections 3 and 7 of the Natural Gas Act (<external-xref legal-doc="usc" parsable-cite="usc/15/717b">15 U.S.C. 717b</external-xref>, 717f) to determine whether a certificate of public convenience and necessity should be issued for a proposed interstate natural gas pipeline.</text></subsection> <subsection id="HACEBD59C8C5649D8B1F92E8B1761F651"><enum>(c)</enum><header>Agency of record, offshore mineral development projects</header><text>Any Federal administrative agency proceeding that is an appeal or review under section 319 of the <act-name parsable-cite="CZMA72">Coastal Zone Management Act of 1972</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/16/1465">16 U.S.C. 1465</external-xref>), as amended by this Act, related to Federal authority for the permitting, approval, or other authorization of energy projects, including projects to explore, develop, or produce mineral resources in or underlying the outer Continental Shelf shall use as its exclusive record for all purposes (except for the filing of pleadings) the record compiled by the relevant Federal permitting agency.</text></subsection></section> <section id="HC954E6B53131440CBFF01E69A58E6BAF"><enum>331.</enum><header>Bilateral international oil supply agreements</header> <subsection id="H0AFC6D259B9148ACB600F792778D207D"><enum>(a)</enum><header>In General</header><text>Notwithstanding any other provision of law, the President may export oil to, or secure oil for, any country pursuant to a bilateral international oil supply agreement entered into by the United States with the country before June 25, 1979, or to any country pursuant to the International Emergency Oil Sharing Plan of the International Energy Agency.</text></subsection> <subsection id="HF2C727D646B9455186DD01D4A128DEF5"><enum>(b)</enum><header>Memorandum of Agreement</header><text>The following agreements are deemed to have entered into force by operation of law and are deemed to have no termination date:</text> <paragraph id="H29DEBFE54E4549BE8C339E9934FB034B"><enum>(1)</enum><text>The agreement entitled <quote>Agreement amending and extending the memorandum of agreement of June 22, 1979</quote>, entered into force November 13, 1994 (TIAS 12580).</text></paragraph> <paragraph id="H8018DD041876448FBD5904D9064C30D7"><enum>(2)</enum><text>The agreement entitled <quote>Agreement amending the contingency implementing arrangements of October 17, 1980</quote>, entered into force June 27, 1995 (TIAS 12670).</text></paragraph></subsection></section> <section id="HC462FAFAA8EE4752AF2679BFCC6593F0"><enum>332.</enum><header>Natural gas market reform</header> <subsection id="H6B3265FE6A78405CB791AB3166268E01"><enum>(a)</enum><header>Clarification of existing CFTC authority</header> <paragraph id="H38C37B14E49A4B13AAAF6B8E6C2D83D9"><enum>(1)</enum><header>False reporting</header><text>Section 9(a)(2) of the <act-name parsable-cite="COMEX">Commodity Exchange Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/7/13">7 U.S.C. 13(a)(2)</external-xref>) is amended by striking <quote>false or misleading or knowingly inaccurate reports</quote> and inserting <quote>knowingly false or knowingly misleading or knowingly inaccurate reports</quote>.</text></paragraph> <paragraph id="H355AA28BEDB64CF998006F201147CD41"><enum>(2)</enum><header>Commission administrative and civil authority</header><text>Section 9 of the <act-name parsable-cite="COMEX">Commodity Exchange Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/7/13">7 U.S.C. 13</external-xref>) is amended by redesignating subsection (f) as subsection (e), and adding:</text> <quoted-block act-name="Commodity Exchange Act" id="H8E7145CFFD8F4F50922FAE24D100BC00"> <subsection id="H257B947AB5DD4FBAB618E7B103759C98"><enum>(f)</enum><header>Commission administrative and civil authority</header><text>The Commission may bring administrative or civil actions as provided in this Act against any person for a violation of any provision of this section including, but not limited to, false reporting under subsection (a)(2).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H0256976EFC134B8C984DCD2860C80328"><enum>(3)</enum><header>Effect of amendments</header><text>The amendments made by paragraphs (1) and (2) restate, without substantive change, existing burden of proof provisions and existing Commission civil enforcement authority, respectively. These clarifying changes do not alter any existing burden of proof or grant any new statutory authority. The provisions of this section, as restated herein, continue to apply to any action pending on or commenced after the date of enactment of this Act for any act, omission, or violation occurring before, on, or after, such date of enactment.</text></paragraph></subsection> <subsection id="H93D06D91A10A4F7CBF8EF12741FD4165"><enum>(b)</enum><header>Fraud authority</header><text>Section 4b of the <act-name parsable-cite="COMEX">Commodity Exchange Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/7/6b">7 U.S.C. 6b</external-xref>) is amended—</text> <paragraph id="HA39FA5C9451C42EEA32024D954487E60"><enum>(1)</enum><text>by redesignating subsections (b) and (c) as subsections (c) and (d), respectively; and</text></paragraph> <paragraph id="H69556B8ED2A243AA922B6852C3F1A537"><enum>(2)</enum><text>by striking subsection (a) and inserting the following:</text> <quoted-block id="H644EF2467DEB427FACAA9CD212369322"> <subsection id="HD9E68A520ACD4301ABCB59000029D085"><enum>(a)</enum><text>It shall be unlawful—</text> <paragraph id="H9E7FE27B249A47729DC1C517DB657E9"><enum>(1)</enum><text>for any person, in or in connection with any order to make, or the making of, any contract of sale of any commodity for future delivery or in interstate commerce, that is made, or to be made, on or subject to the rules of a designated contract market, for or on behalf of any other person; or</text></paragraph> <paragraph id="H3D0D728F998A4AAC9D7D8DE2628B8107"><enum>(2)</enum><text>for any person, in or in connection with any order to make, or the making of, any contract of sale of any commodity for future delivery, or other agreement, contract, or transaction subject to section 5a(g) (1) and (2) of this Act, that is made, or to be made, for or on behalf of, or with, any other person, other than on or subject to the rules of a designated contract market—</text> <subparagraph id="H53056C828FE041388C924E826FC2C97"><enum>(A)</enum><text>to cheat or defraud or attempt to cheat or defraud such other person;</text></subparagraph> <subparagraph id="H8F97E63645ED4AF6B31F7393290091D"><enum>(B)</enum><text>willfully to make or cause to be made to such other person any false report or statement or willfully to enter or cause to be entered for such other person any false record;</text></subparagraph> <subparagraph id="H7F8E75EF2DC04E01BFD6E1B073BAF047"><enum>(C)</enum><text>willfully to deceive or attempt to deceive such other person by any means whatsoever in regard to any order or contract or the disposition or execution of any order or contract, or in regard to any act of agency performed, with respect to any order or contract for or, in the case of subsection (a)(2), with such other person; or</text></subparagraph> <subparagraph id="H6D386D5EED87429E956CAE5517D8CE35"><enum>(D)</enum> <clause display-inline="yes-display-inline" id="H8FF5C0D0639548E2B2000177C48C5E9C"><enum>(i)</enum><text>to bucket an order if such order is either represented by such person as an order to be executed, or required to be executed, on or subject to the rules of a designated contract market; or</text></clause> <clause indent="up1" id="HE63325A7B84B409799F941657D155253"><enum>(ii)</enum><text>to fill an order by offset against the order or orders of any other person, or willfully and knowingly and without the prior consent of such other person to become the buyer in respect to any selling order of such other person, or become the seller in respect to any buying order of such other person, if such order is either represented by such person as an order to be executed, or required to be executed, on or subject to the rules of a designated contract market.</text></clause></subparagraph></paragraph></subsection> <subsection id="H7FFAF7A0432741BA8959F48C79503762"><enum>(b)</enum><text>Subsection (a)(2) shall not obligate any person, in connection with a transaction in a contract of sale of a commodity for future delivery, or other agreement, contract or transaction subject to section 5a(g) (1) and (2) of this Act, with another person, to disclose to such other person nonpublic information that may be material to the market price of such commodity or transaction, except as necessary to make any statement made to such other person in connection with such transaction, not misleading in any material respect.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HC81A3BA0BD88411D8435CF9249466C56"><enum>(c)</enum><header>Jurisdiction of the CFTC</header><text>The Natural Gas Act (<external-xref legal-doc="usc" parsable-cite="usc/15/717">15 U.S.C. 717 et seq.</external-xref>) is amended by adding at the end:</text> <quoted-block id="HEABB9A01B42C4711BB94D45088F59B41"> <section id="H5A28C8D4B7C54EC4B7B8D56968F7F9ED"><enum>26.</enum><header>Jurisdiction</header><text display-inline="no-display-inline">This Act shall not affect the exclusive jurisdiction of the Commodity Futures Trading Commission with respect to accounts, agreements, contracts, or transactions in commodities under the <act-name parsable-cite="COMEX">Commodity Exchange Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/7/1">7 U.S.C. 1 et seq.</external-xref>). Any request for information by the Commission to a designated contract market, registered derivatives transaction execution facility, board of trade, exchange, or market involving accounts, agreements, contracts, or transactions in commodities (including natural gas, electricity, and other energy commodities) within the exclusive jurisdiction of the Commodity Futures Trading Commission shall be directed to the Commodity Futures Trading Commission, which shall cooperate in responding to any information request by the Commission.</text></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H97D09F6EE2B641F893C373C772EE4ECD"><enum>(d)</enum><header>Increased penalties</header><text>Section 21 of the Natural Gas Act (<external-xref legal-doc="usc" parsable-cite="usc/15/717t">15 U.S.C. 717t</external-xref>) is amended—</text> <paragraph id="H1DB6A8D7BF744A9CBC962833D3F9DAE6"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="H35AC87A75AF5412D0084D4DAB584505E"><enum>(A)</enum><text>by striking <quote>$5,000</quote> and inserting <quote>$1,000,000</quote>; and</text></subparagraph> <subparagraph id="H39F78098C49D4E10AF405DA8A1FE515D"><enum>(B)</enum><text>by striking <quote>two years</quote> and inserting <quote>5 years</quote>; and</text></subparagraph></paragraph> <paragraph id="HC66A302BBF094A19B972D614C490F107"><enum>(2)</enum><text>in subsection (b), by striking <quote>$500</quote> and inserting <quote>$50,000</quote>.</text></paragraph></subsection></section> <section id="H874001941E814C62A33450001826E968"><enum>333.</enum><header>Natural gas market transparency</header><text display-inline="no-display-inline">The Natural Gas Act (15 U.S.C 717 et seq.) is amended—</text> <paragraph id="H0640D1FD151B413281B639697C17ACD3"><enum>(1)</enum><text>by redesignating section 24 as section 25; and</text></paragraph> <paragraph id="HBC6C4EDEDF4B4F4C9D3DE4AAECC45C1"><enum>(2)</enum><text>by inserting after section 23 the following:</text> <quoted-block id="H57D93EAD3D384B6700AFCBB0424BF539"> <section id="HB07EA1E28BCE4432B517F278C3733522"><enum>24.</enum><header>Natural gas market transparency</header> <subsection id="H39F54E32E793402A947899CCCB358794"><enum>(a)</enum><header>Authorization</header> <paragraph display-inline="yes-display-inline" id="HFB611475C2B94931BDB20352C2F383ED"><enum>(1)</enum><text>Not later than 180 days after the date of enactment of the Energy Policy Act of 2003, the Federal Energy Regulatory Commission shall issue rules directing all entities subject to the Commission’s jurisdiction as provided under this Act to timely report information about the availability and prices of natural gas sold at wholesale in interstate commerce to the Commission and price publishers.</text></paragraph> <paragraph indent="up1" id="HEB350D3304A840C1000166FF9878FEB"><enum>(2)</enum><text>The Commission shall evaluate the data for adequate price transparency and accuracy.</text></paragraph> <paragraph indent="up1" id="H7005A224F55D472CBB995E106EE73F4B"><enum>(3)</enum><text>Rules issued under this subsection requiring the reporting of information to the Commission that may become publicly available shall be limited to aggregate data and transaction-specific data that are otherwise required by the Commission to be made public.</text></paragraph> <paragraph indent="up1" id="HE0E561A3C86C4E97B8AB008889FE000"><enum>(4)</enum><text>In exercising its authority under this section, the Commission shall not—</text> <subparagraph id="H44A5F114F7FF43EA86A8FDBE1DAF2129"><enum>(A)</enum><text>compete with, or displace from the market place, any price publisher; or</text></subparagraph> <subparagraph id="H5F1642486C1E4721B4EE43C4E165EBCC"><enum>(B)</enum><text>regulate price publishers or impose any requirements on the publication of information.</text></subparagraph></paragraph></subsection> <subsection id="HEF7A3428C6FA4873AB195C385800512C"><enum>(b)</enum><header>Timely enforcement</header><text>No person shall be subject to any penalty under this section with respect to a violation occurring more than 3 years before the date on which the Federal Energy Regulatory Commission seeks to assess a penalty.</text></subsection> <subsection id="H893B1F9DE41349678FA0F90066513773"><enum>(c)</enum><header>Limitation on Commission authority</header> <paragraph display-inline="yes-display-inline" id="H0CEFA18F8AB64270AB9DD6ECFCE3D3A5"><enum>(1)</enum><text>The Commission shall not condition access to interstate pipeline transportation upon the reporting requirements authorized under this section.</text></paragraph> <paragraph indent="up1" id="H4F927A7E6E7247ED909D0300B5305592"><enum>(2)</enum><text>Natural gas sales by a producer that are attributable to volumes of natural gas produced by such producer shall not be subject to the rules issued pursuant to this section.</text></paragraph> <paragraph indent="up1" id="H2D2A506438A94DB4A0C49210F07EB4D"><enum>(3)</enum><text>The Commission shall not require natural gas producers, processors, or users who have a de minimis market presence to participate in the reporting requirements provided in this section.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section></subtitle> <subtitle id="H7B7DDBB3A4CA45DEAECF49D996A591C3"><enum>C</enum><header>Access to Federal land</header> <section id="HC03406CDF1004CF59C8EFA6F9C0924B3"><enum>341.</enum><header>Office of Federal Energy Project Coordination</header> <subsection id="HFD5373B4C7CC46B4848EAFA5A7CA7B00"><enum>(a)</enum><header>Establishment</header><text>The President shall establish the Office of Federal Energy Project Coordination (referred to in this section as the <quote>Office</quote>) within the Executive Office of the President in the same manner and with the same mission as the White House Energy Projects Task Force established by Executive Order No. 13212 (<external-xref legal-doc="usc" parsable-cite="usc/42/13201">42 U.S.C. 13201</external-xref> note).</text></subsection> <subsection id="H2C9E05C48794454898141ECC718C4FBB"><enum>(b)</enum><header>Staffing</header><text>The Office shall be staffed by functional experts from relevant Federal agencies on a nonreimbursable basis to carry out the mission of the Office.</text></subsection> <subsection id="H26331B08062F4391AA90787DD1D5D1AA"><enum>(c)</enum><header>Report</header><text>The Office shall transmit an annual report to Congress that describes the activities put in place to coordinate and expedite Federal decisions on energy projects. The report shall list accomplishments in improving the Federal decisionmaking process and shall include any additional recommendations or systemic changes needed to establish a more effective and efficient Federal permitting process.</text></subsection></section> <section id="HABF0AF43A0474A34BE7B00DC6E9951D4"><enum>342.</enum><header>Federal onshore oil and gas leasing and permitting practices</header> <subsection id="H0E9EB3BE659A4084A030E9F457D12240"><enum>(a)</enum><header>Review of onshore oil and gas leasing practices</header> <paragraph id="H57B1C6B2598B4BE881F32FBFBBAD2AC"><enum>(1)</enum><header>In General</header><text>The Secretary of the Interior, in consultation with the Secretary of Agriculture with respect to National Forest System lands under the jurisdiction of the Department of Agriculture, shall perform an internal review of current Federal onshore oil and gas leasing and permitting practices.</text></paragraph> <paragraph id="H8341F95DAA364534B3D3E8D9BE00E2CF"><enum>(2)</enum><header>Inclusions</header><text>The review shall include the process for—</text> <subparagraph id="HBE31D24890D84D39A414F4D0C523002C"><enum>(A)</enum><text>accepting or rejecting offers to lease;</text></subparagraph> <subparagraph id="HACF3834404E54BDA80913F10CBD6C7F"><enum>(B)</enum><text>administrative appeals of decisions or orders of officers or employees of the Bureau of Land Management with respect to a Federal oil or gas lease;</text></subparagraph> <subparagraph id="H36F36735F71440EA9800FD947BBEAD26"><enum>(C)</enum><text>considering surface use plans of operation, including the timeframes in which the plans are considered, and any recommendations for improving and expediting the process; and</text></subparagraph> <subparagraph id="H2DB3D1BA900E44A7AD0418D2C3A291B1"><enum>(D)</enum><text>identifying stipulations to address site-specific concerns and conditions, including those stipulations relating to the environment and resource use conflicts.</text></subparagraph></paragraph></subsection> <subsection id="HC63AD52FC22848E0AB1E7EFCDE76ABA5"><enum>(b)</enum><header>Report</header><text>Not later than 180 days after the date of enactment of this Act, the Secretary of the Interior and the Secretary of Agriculture shall transmit a report to Congress that describes—</text> <paragraph id="H807C131FDD074E04B4A5A6E2BDBE5895"><enum>(1)</enum><text>actions taken under section 3 of Executive Order No. 13212 (<external-xref legal-doc="usc" parsable-cite="usc/42/13201">42 U.S.C. 13201</external-xref> note); and</text></paragraph> <paragraph id="H88668A5FC17A480E942E29CC1614BB57"><enum>(2)</enum><text>actions taken or any plans to improve the Federal onshore oil and gas leasing program.</text></paragraph></subsection></section> <section id="H5235A7A7CE3342F08495004FF500007F"><enum>343.</enum><header>Management of Federal oil and gas leasing programs</header> <subsection id="H044AAC56C40148BE9F92EC17A31784D7"><enum>(a)</enum><header>Timely action on leases and permits</header><text>To ensure timely action on oil and gas leases and applications for permits to drill on land otherwise available for leasing, the Secretary of the Interior (in this section referred to as the <quote>Secretary</quote>) shall—</text> <paragraph id="HEC4E7272875D4550B68727BB057494A"><enum>(1)</enum><text>ensure expeditious compliance with section 102(2)(C) of the <act-name parsable-cite="NEPA69">National Environmental Policy Act of 1969</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/4332">42 U.S.C. 4332(2)(C)</external-xref>);</text></paragraph> <paragraph id="H8C5618F4B2BA40EB8C8596D541683710"><enum>(2)</enum><text>improve consultation and coordination with the States and the public; and</text></paragraph> <paragraph id="H5F966EE16C0E4E15A4537DC255E2E48F"><enum>(3)</enum><text>improve the collection, storage, and retrieval of information relating to the leasing activities.</text></paragraph></subsection> <subsection id="HD1E90CB058E94CAC9B872227E8F67F52"><enum>(b)</enum><header>Best management practices</header> <paragraph id="HFEF3F15760A843A1AB1D780737E8A121"><enum>(1)</enum><header>In General</header><text>Not later than 18 months after the date of enactment of this Act, the Secretary shall develop and implement best management practices to—</text> <subparagraph id="HBBBC340CC43B4530A52136EFEAA983B4"><enum>(A)</enum><text>improve the administration of the onshore oil and gas leasing program under the <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/30/181">30 U.S.C. 181 et seq.</external-xref>); and</text></subparagraph> <subparagraph id="H369B2C68B76D4FC48F8BE300E147912D"><enum>(B)</enum><text>ensure timely action on oil and gas leases and applications for permits to drill on lands otherwise available for leasing.</text></subparagraph></paragraph> <paragraph id="H8357D05130574BAABC43CA9627E12CDC"><enum>(2)</enum><header>Considerations</header><text>In developing the best management practices under paragraph (1), the Secretary shall consider any recommendations from the review under section 342.</text></paragraph> <paragraph id="HA01354DD130E48EB87B846D08FBB5E56"><enum>(3)</enum><header>Regulations</header><text>Not later than 180 days after the development of best management practices under paragraph (1), the Secretary shall publish, for public comment, proposed regulations that set forth specific timeframes for processing leases and applications in accordance with the practices, including deadlines for—</text> <subparagraph id="H68F8B7CFFDF747D8817663F037FD7EE2"><enum>(A)</enum><text>approving or disapproving resource management plans and related documents, lease applications, and surface use plans; and</text></subparagraph> <subparagraph id="H89938289398241CA9B11D593DE6369AC"><enum>(B)</enum><text>related administrative appeals.</text></subparagraph></paragraph></subsection> <subsection id="H4522E788A29842E20008371E47D58800"><enum>(c)</enum><header>Improved enforcement</header><text>The Secretary shall improve inspection and enforcement of oil and gas activities, including enforcement of terms and conditions in permits to drill.</text></subsection> <subsection id="HD71DB4E987E14BA9A8E0FDF8DEC294F1"><enum>(d)</enum><header>Authorization of appropriations</header><text>In addition to amounts authorized to be appropriated to carry out section 17 of the <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/30/226">30 U.S.C. 226</external-xref>), there are authorized to be appropriated to the Secretary for each of fiscal years 2004 through 2007—</text> <paragraph id="HBB23874960D14617838875C8A5919C73"><enum>(1)</enum><text>$40,000,000 to carry out subsections (a) and (b); and</text></paragraph> <paragraph id="H48E65426F4FA4930815F11B682B71812"><enum>(2)</enum><text>$20,000,000 to carry out subsection (c).</text></paragraph></subsection></section> <section id="HE20F4F3BFD57445391469E62D6FC542E"><enum>344.</enum><header>Consultation regarding oil and gas leasing on public land</header> <subsection id="H39D8CC15486346EE88EAFAF829B3CD29"><enum>(a)</enum><header>In General</header><text>Not later than 180 days after the date of enactment of this Act, the Secretary of the Interior and the Secretary of Agriculture shall enter into a memorandum of understanding regarding oil and gas leasing on—</text> <paragraph id="H743869589338469196E8E8656B5820BE"><enum>(1)</enum><text>public lands under the jurisdiction of the Secretary of the Interior; and</text></paragraph> <paragraph id="H8487D81CBF6848DF00D0DB3CFF96FADD"><enum>(2)</enum><text>National Forest System lands under the jurisdiction of the Secretary of Agriculture.</text></paragraph></subsection> <subsection id="H3D287580C22141FB9390BA79CF781C59"><enum>(b)</enum><header>Contents</header><text>The memorandum of understanding shall include provisions that—</text> <paragraph id="H069F27FE2D5B4F449700CD652912CE5C"><enum>(1)</enum><text>establish administrative procedures and lines of authority that ensure timely processing of oil and gas lease applications, surface use plans of operation, and applications for permits to drill, including steps for processing surface use plans and applications for permits to drill consistent with the timelines established by the amendment made by section 348;</text></paragraph> <paragraph id="H1201B2A723814BD19D463DB63FBE7330"><enum>(2)</enum><text>eliminate duplication of effort by providing for coordination of planning and environmental compliance efforts; and</text></paragraph> <paragraph id="HEB204AEDF1E84E54BD45405F512684CB"><enum>(3)</enum><text>ensure that lease stipulations are—</text> <subparagraph id="H8175AAFFFC6445018B452B432F95B5D6"><enum>(A)</enum><text>applied consistently;</text></subparagraph> <subparagraph id="H7A4ABEB70E5B4A90BFC13DC7555F3E76"><enum>(B)</enum><text>coordinated between agencies; and</text></subparagraph> <subparagraph id="H37C4ED048ADD4D5C90F21FF333D167B5"><enum>(C)</enum><text>only as restrictive as necessary to protect the resource for which the stipulations are applied.</text></subparagraph></paragraph></subsection> <subsection id="HD05E06BFB4DA496BA82DFF8725D7B9B8"><enum>(c)</enum><header>Data retrieval system</header> <paragraph id="H9E369E162D764AC19FAC72A0008D361F"><enum>(1)</enum><header>In General</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary of the Interior and the Secretary of Agriculture shall establish a joint data retrieval system that is capable of—</text> <subparagraph id="H017133F9F19146AB869BAB50F9252815"><enum>(A)</enum><text>tracking applications and formal requests made in accordance with procedures of the Federal onshore oil and gas leasing program; and</text></subparagraph> <subparagraph id="H00AD76E18F25453CAFE6074021CF5FEB"><enum>(B)</enum><text>providing information regarding the status of the applications and requests within the Department of the Interior and the Department of Agriculture.</text></subparagraph></paragraph> <paragraph id="H3804402107BC4902B3BCCF8F008863BF"><enum>(2)</enum><header>Resource mapping</header><text>Not later than 2 years after the date of enactment of this Act, the Secretary of the Interior and the Secretary of Agriculture shall establish a joint Geographic Information System mapping system for use in—</text> <subparagraph id="H8E21DBFC2B204EAE8F058E59AC18D7E0"><enum>(A)</enum><text>tracking surface resource values to aid in resource management; and</text></subparagraph> <subparagraph id="H9DF267B3C5DF423D826246BF76194D09"><enum>(B)</enum><text>processing surface use plans of operation and applications for permits to drill.</text></subparagraph></paragraph></subsection></section> <section id="H5C5F6511F59140BA97D278A403D5CEEA"><enum>345.</enum><header>Estimates of oil and gas resources underlying onshore Federal land</header> <subsection id="H24BA45DB6AB24B31906B23ED21A44137"><enum>(a)</enum><header>Assessment</header><text>Section 604 of the Energy Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/42/6217">42 U.S.C. 6217</external-xref>) is amended—</text> <paragraph id="H46647562A5234984BCFAC9C000B5B0CF"><enum>(1)</enum><text>in subsection (a)—</text> <subparagraph id="H8E162EDB041442A18D252B2DF3D5D0FC"><enum>(A)</enum><text>in paragraph (1)—</text> <clause id="H8226C864E034468D8249304CB4542F53"><enum>(i)</enum><text>by striking <quote>reserve</quote>; and</text></clause> <clause id="H688E1B945D3D43ABA587E2E600E25657"><enum>(ii)</enum><text>by striking <quote>and</quote> after the semicolon; and</text></clause></subparagraph> <subparagraph id="H6E175BE340864D0BA89B50258CE577E1"><enum>(B)</enum><text>by striking paragraph (2) and inserting the following:</text> <quoted-block id="HF8802F44C9A74181A402F7228F9BAC8B"> <paragraph id="H9FB4D77A9FCE481AB7EB239EB27DFF5"><enum>(2)</enum><text>the extent and nature of any restrictions or impediments to the development of the resources, including—</text> <subparagraph id="HBF8B713B86DC415394806C33153BA769"><enum>(A)</enum><text>impediments to the timely granting of leases;</text></subparagraph> <subparagraph id="HE3880A89E0FB448DA1D064B0D32B8D16"><enum>(B)</enum><text>post-lease restrictions, impediments, or delays on development for conditions of approval, applications for permits to drill, or processing of environmental permits; and</text></subparagraph> <subparagraph id="H42657D688F9B4184BA89703818828E8C"><enum>(C)</enum><text>permits or restrictions associated with transporting the resources for entry into commerce; and</text></subparagraph></paragraph> <paragraph id="H182C13CEBA674CE1B17779016C48517C"><enum>(3)</enum><text>the quantity of resources not produced or introduced into commerce because of the restrictions.</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H16AC372628F941C9B6B4C849B102007F"><enum>(2)</enum><text>in subsection (b)—</text> <subparagraph id="H0E219EA0866B454290640317EF15FB74"><enum>(A)</enum><text>by striking <quote>reserve</quote> and inserting <quote>resource</quote>; and</text></subparagraph> <subparagraph id="HC4A888D81BE542C19B8CA64FCF18BC"><enum>(B)</enum><text>by striking <quote>publically</quote> and inserting <quote>publicly</quote>; and</text></subparagraph></paragraph> <paragraph id="HDE934A70236140DD80C7D06306E10203"><enum>(3)</enum><text>by striking subsection (d) and inserting the following:</text> <quoted-block id="H0868A7938E9747C7916C3D7C78AF319B"> <subsection id="H50BBDD2198B4498300038CE2C70CA00"><enum>(d)</enum><header>Assessments</header><text>Using the inventory, the Secretary of Energy shall make periodic assessments of economically recoverable resources accounting for a range of parameters such as current costs, commodity prices, technology, and regulations.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H3493416C36F44642A9B3C7ADF6496016"><enum>(b)</enum><header>Methodology</header><text>The Secretary of the Interior shall use the same assessment methodology across all geological provinces, areas, and regions in preparing and issuing national geological assessments to ensure accurate comparisons of geological resources.</text></subsection></section> <section id="H2CF50839BBD94F8F9EB5F15694C722C5"><enum>346.</enum><header>Compliance with executive order 13211; actions concerning regulations that significantly affect energy supply, distribution, or use</header> <subsection id="HC180036A9B9D491E9FE118063C7775B8"><enum>(a)</enum><header>Requirement</header><text>The head of each Federal agency shall require that before the Federal agency takes any action that could have a significant adverse effect on the supply of domestic energy resources from Federal public land, the Federal agency taking the action shall comply with Executive Order No. 13211 (<external-xref legal-doc="usc" parsable-cite="usc/42/13201">42 U.S.C. 13201</external-xref> note).</text></subsection> <subsection id="HC3726779ADA941F5AA4FC2FF3D692826"><enum>(b)</enum><header>Guidance</header><text>Not later than 180 days after the date of enactment of this Act, the Secretary of Energy shall publish guidance for purposes of this section describing what constitutes a significant adverse effect on the supply of domestic energy resources under Executive Order No. 13211 (<external-xref legal-doc="usc" parsable-cite="usc/42/13201">42 U.S.C. 13201</external-xref> note).</text></subsection> <subsection id="HC8092EF9895143F9A9361D1B787400B5"><enum>(c)</enum><header>Memorandum of understanding</header><text>The Secretary of the Interior and the Secretary of Agriculture shall include in the memorandum of understanding under section 344 provisions for implementing subsection (a) of this section.</text></subsection></section> <section id="H792C4FDC357649E28E92A3357DAD0D0"><enum>347.</enum><header>Pilot Project to improve Federal permit coordination</header> <subsection id="HEAE8725195AE492985C9D712D266B5AB"><enum>(a)</enum><header>Establishment</header><text>The Secretary of the Interior (in this section referred to as the <quote>Secretary</quote>) shall establish a Federal Permit Streamlining Pilot Project (in this section referred to as the <quote>Pilot Project</quote>).</text></subsection> <subsection id="H25A7E1D6AEEA403B96B5DCC9BEE0F01B"><enum>(b)</enum><header>Memorandum of understanding</header> <paragraph id="H52A3B24D26F0462591B5004BF4F6135D"><enum>(1)</enum><header>In General</header><text>Not later than 90 days after the date of enactment of this Act, the Secretary shall enter into a memorandum of understanding with the Secretary of Agriculture, the Administrator of the Environmental Protection Agency, and the Chief of Engineers of the Army Corps of Engineers for purposes of this section.</text></paragraph> <paragraph id="HE1DAE52AE03A477A9F2D2B8372D17158"><enum>(2)</enum><header>State participation</header><text>The Secretary may request that the Governors of Wyoming, Montana, Colorado, Utah, and New Mexico be signatories to the memorandum of understanding.</text></paragraph></subsection> <subsection id="H7BF99E3D5A5340ACAC30CDB586EE056"><enum>(c)</enum><header>Designation of qualified staff</header> <paragraph id="H76F3A98E08934723BC390040EC19C4E"><enum>(1)</enum><header>In General</header><text>Not later than 30 days after the date of the signing of the memorandum of understanding under subsection (b), all Federal signatory parties shall assign to each of the field offices identified in subsection (d), on a nonreimbursable basis, an employee who has expertise in the regulatory issues relating to the office in which the employee is employed, including, as applicable, particular expertise in—</text> <subparagraph id="H975405DA65E6486AAD47B006FC41E41"><enum>(A)</enum><text>the consultations and the preparation of biological opinions under section 7 of the <act-name parsable-cite="ESA">Endangered Species Act of 1973</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/16/1536">16 U.S.C. 1536</external-xref>);</text></subparagraph> <subparagraph id="H1C8BAA3FE26C47E091F415C1AA445F09"><enum>(B)</enum><text>permits under section 404 of <act-name parsable-cite="FWPCA">Federal Water Pollution Control Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/33/1344">33 U.S.C. 1344</external-xref>);</text></subparagraph> <subparagraph id="H818566454CA6416F8CF96640B9C1BC4B"><enum>(C)</enum><text>regulatory matters under the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7401">42 U.S.C. 7401 et seq.</external-xref>);</text></subparagraph> <subparagraph id="HF70A165FE92440A09345F665F15E0940"><enum>(D)</enum><text>planning under the National Forest Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/16/472a">16 U.S.C. 472a et seq.</external-xref>); and</text></subparagraph> <subparagraph id="H45B3B5416D764A4D97B2B20092E0F606"><enum>(E)</enum><text>the preparation of analyses under the <act-name parsable-cite="NEPA69">National Environmental Policy Act of 1969</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/4321">42 U.S.C. 4321 et seq.</external-xref>).</text></subparagraph></paragraph> <paragraph id="HBD0AF9379B3E467D8FA9FEB32CA3FBB4"><enum>(2)</enum><header>Duties</header><text>Each employee assigned under paragraph (1) shall—</text> <subparagraph id="HB9B9C82C268E4F2CB05DA635C5A74E3B"><enum>(A)</enum><text>not later than 90 days after the date of assignment, report to the Bureau of Land Management Field Managers in the office to which the employee is assigned;</text></subparagraph> <subparagraph id="H7BA685B4A3BD47C59837A070892D89ED"><enum>(B)</enum><text>be responsible for all issues relating to the jurisdiction of the home office or agency of the employee; and</text></subparagraph> <subparagraph id="H39D98B2D3FFC4697B711C30083F8F596"><enum>(C)</enum><text>participate as part of the team of personnel working on proposed energy projects, planning, and environmental analyses.</text></subparagraph></paragraph></subsection> <subsection id="HC043D2493ECE4E62A3D51936DB932252"><enum>(d)</enum><header>Field offices</header><text>The following Bureau of Land Management Field Offices shall serve as the Pilot Project offices:</text> <paragraph id="HA2F737724433453383627D7D023BA7C8"><enum>(1)</enum><text>Rawlins, Wyoming.</text></paragraph> <paragraph id="H4B9558BF1F28495DAB1F97CB3B20453B"><enum>(2)</enum><text>Buffalo, Wyoming.</text></paragraph> <paragraph id="H274C123469384512B8DC57EE1CF13AB"><enum>(3)</enum><text>Miles City, Montana</text></paragraph> <paragraph id="H66D6B1F9B8A14207A9EA86572D637018"><enum>(4)</enum><text>Farmington, New Mexico.</text></paragraph> <paragraph id="H07FB304BFC284CC3BA67CABB75B8D3C3"><enum>(5)</enum><text>Carlsbad, New Mexico.</text></paragraph> <paragraph id="HBA18E7999A244399BC356717C9D5BDBB"><enum>(6)</enum><text>Glenwood Springs, Colorado.</text></paragraph> <paragraph id="H6501A30BB5F6495C91E67989AA787B5E"><enum>(7)</enum><text>Vernal, Utah.</text></paragraph></subsection> <subsection id="HC042A3C505B74C9F9B5EF87358333301"><enum>(e)</enum><header>Reports</header><text>Not later than 3 years after the date of enactment of this Act, the Secretary shall transmit to Congress a report that—</text> <paragraph id="HF8C54E0A8F2B46699DC23759E671C204"><enum>(1)</enum><text>outlines the results of the Pilot Project to date; and</text></paragraph> <paragraph id="H9CF01B11DB06451F9733E87E2B231886"><enum>(2)</enum><text>makes a recommendation to the President regarding whether the Pilot Project should be implemented throughout the United States.</text></paragraph></subsection> <subsection id="HA41716A833D64A75B4C1841125F7DAA7"><enum>(f)</enum><header>Additional personnel</header><text>The Secretary shall assign to each field office identified in subsection (d) any additional personnel that are necessary to ensure the effective implementation of—</text> <paragraph id="H105627A67621468E84D4DDDDE73E1B1"><enum>(1)</enum><text>the Pilot Project; and</text></paragraph> <paragraph id="H72B4E85DABCA4CDFB6A59B81D5BA2EE2"><enum>(2)</enum><text>other programs administered by the field offices, including inspection and enforcement relating to energy development on Federal land, in accordance with the multiple use mandate of the <act-name parsable-cite="FLPMA">Federal Land Policy and Management Act of 1976</act-name> (43 U.S.C. 1701 et seq).</text></paragraph></subsection> <subsection id="HC38596735BBB4623AE90BA86E9966EAD"><enum>(g)</enum><header>Savings provision</header><text>Nothing in this section affects—</text> <paragraph id="HAA7F936CE4E84F3EBA003619F4F7916F"><enum>(1)</enum><text>the operation of any Federal or State law; or</text></paragraph> <paragraph id="HCD8CFE06A4FE44A292A562CF673023C7"><enum>(2)</enum><text>any delegation of authority made by the head of a Federal agency whose employees are participating in the Pilot Project.</text></paragraph></subsection></section> <section id="H9141F184580C44DAB1BDB21C18379400"><enum>348.</enum><header>Deadline for consideration of applications for permits</header><text display-inline="no-display-inline">Section 17 of the <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/30/226">30 U.S.C. 226</external-xref>) is amended by adding at the end the following:</text> <quoted-block act-name="Mineral Leasing Act" id="H6B9142735CE94002B279713D762E0016"> <subsection id="H8432278041C346168620C000AB6237BE"><enum>(p)</enum><header>Deadlines for consideration of applications for permits</header> <paragraph id="H7C032DF9249B45009940B9B8A2AA7417"><enum>(1)</enum><header>In General</header><text>Not later than 10 days after the date on which the Secretary receives an application for any permit to drill, the Secretary shall—</text> <subparagraph id="HC6D7AD4D35FD4627005B48C49036D860"><enum>(A)</enum><text>notify the applicant that the application is complete; or</text></subparagraph> <subparagraph id="H0778F0BC15D24342AC56FA1852AE7CB1"><enum>(B)</enum><text>notify the applicant that information is missing and specify any information that is required to be submitted for the application to be complete.</text></subparagraph></paragraph> <paragraph id="H312B993D0AA0473FB82ED6F746EE71DD"><enum>(2)</enum><header>Issuance or deferral</header><text>Not later than 30 days after the applicant for a permit has submitted a complete application, the Secretary shall—</text> <subparagraph id="H419BD5D0E2BE42B6A140FB00E3490094"><enum>(A)</enum><text>issue the permit; or</text></subparagraph> <subparagraph id="HAED5BD8DAF534075855CEB2163F62D42"><enum>(B)</enum> <clause display-inline="yes-display-inline" id="H9FC3266BA0474781BBDFC4C362514B58"><enum>(i)</enum><text>defer decision on the permit; and</text></clause> <clause indent="up1" id="HC88AF3C6869C4D8D86935E49F75083E3"><enum>(ii)</enum><text>provide to the applicant a notice that specifies any steps that the applicant could take for the permit to be issued.</text></clause></subparagraph></paragraph> <paragraph id="H9B2AC0068D234DE0BC00FC9B38AFC75"><enum>(3)</enum><header>Requirements for deferred applications</header> <subparagraph id="H9CCF7FCD313049B290A664A6A1630722"><enum>(A)</enum><header>In General</header><text>If the Secretary provides notice under paragraph (2)(B)(ii), the applicant shall have a period of 2 years from the date of receipt of the notice in which to complete all requirements specified by the Secretary, including providing information needed for compliance with the <act-name parsable-cite="NEPA69">National Environmental Policy Act of 1969</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/4321">42 U.S.C. 4321 et seq.</external-xref>).</text></subparagraph> <subparagraph id="H95C5E168ED674BCBB0C0348702A8C113"><enum>(B)</enum><header>Issuance of decision on permit</header><text>If the applicant completes the requirements within the period specified in subparagraph (A), the Secretary shall issue a decision on the permit not later than 10 days after the date of completion of the requirements described in subparagraph (A).</text></subparagraph> <subparagraph id="HB51A3186B1BC40CAA741EC43DAAD9E07"><enum>(C)</enum><header>Denial of permit</header><text>If the applicant does not complete the requirements within the period specified in subparagraph (A), the Secretary shall deny the permit.</text></subparagraph></paragraph></subsection> <subsection id="H93DBD99D8EAE49E7BBCDF85012EE4843"><enum>(q)</enum><header>Report</header><text>On a quarterly basis, each field office of the Bureau of Land Management and the Forest Service shall transmit to the Secretary of the Interior or the Secretary of Agriculture, respectively, a report that—</text> <paragraph id="HEDC82000EA9945D08B3900C4948F7D3D"><enum>(1)</enum><text>specifies the number of applications for permits to drill received by the field office in the period covered by the report; and</text></paragraph> <paragraph id="H9882B757A31143989258C603A8F5B084"><enum>(2)</enum><text>describes how each of the applications was disposed of by the field office.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H6867A46A96AF4638AFFD98DD54A4FB4C"><enum>349.</enum><header>Clarification of fair market rental value determinations for public land and Forest Service rights-of-way</header> <subsection id="H54F82EE6B74E421DB8694C0617EEEDB4"><enum>(a)</enum><header>Linear rights-of-way under <act-name parsable-cite="FLPMA">Federal Land Policy and Management Act of 1976</act-name></header><text>Section 504 of the <act-name parsable-cite="FLPMA">Federal Land Policy and Management Act of 1976</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/43/1764">43 U.S.C. 1764</external-xref>) is amended by adding at the end the following:</text> <quoted-block act-name="Federal Land Policy and Management Act of 1976" id="H5E88FC33942A40459F6FC4E74FACD55E"> <subsection id="H69B52438B7D54AF3B686415667D6A8E4"><enum>(k)</enum><header>Determination of fair market value of linear rights-of-way</header> <paragraph id="HD7E25439886244D5A5EF087649557C9E"><enum>(1)</enum><header>In General</header><text>Effective beginning on the date of the issuance of the rules required by paragraph (2), for purposes of subsection (g), the Secretary concerned shall determine the fair market value for the use of land encumbered by a linear right-of-way granted, issued, or renewed under this title using the valuation method described in paragraphs (2), (3), and (4).</text></paragraph> <paragraph id="H3C5D13DF824E433F95A22EADFC1E32C5"><enum>(2)</enum><header>Revisions</header><text>Not later than 1 year after the date of enactment of this subsection—</text> <subparagraph id="H257590CEE54044E18261AC8CF24CE07F"><enum>(A)</enum><text>the Secretary of the Interior shall amend <external-xref legal-doc="cfr" parsable-cite="cfr/43/2803.1">section 2803.1–2</external-xref> of title 43, Code of Federal Regulations, as in effect on the date of enactment of this subsection, to revise the per acre rental fee zone value schedule by State, county, and type of linear right-of-way use to reflect current values of land in each zone; and</text></subparagraph> <subparagraph id="HEEE2A4DF2EDB44F096DE1F1C002EA81E"><enum>(B)</enum><text>the Secretary of Agriculture shall make the same revision for linear rights-of-way granted, issued, or renewed under this title on National Forest System land.</text></subparagraph></paragraph> <paragraph id="HA852851BCA92447500C07492721F2096"><enum>(3)</enum><header>Updates</header><text>The Secretary concerned shall annually update the schedule revised under paragraph (2) by multiplying the current year’s rental per acre by the annual change, second quarter to second quarter (June 30 to June 30) in the Gross National Product Implicit Price Deflator Index published in the Survey of Current Business of the Department of Commerce, Bureau of Economic Analysis.</text></paragraph> <paragraph id="H7646CC5751894803AC06D7225DCBC570"><enum>(4)</enum><header>Review</header><text>If the cumulative change in the index referred to in paragraph (3) exceeds 30 percent, or the change in the 3-year average of the 1-year Treasury interest rate used to determine per acre rental fee zone values exceeds plus or minus 50 percent, the Secretary concerned shall conduct a review of the zones and rental per acre figures to determine whether the value of Federal land has differed sufficiently from the index referred to in paragraph (3) to warrant a revision in the base zones and rental per acre figures. If, as a result of the review, the Secretary concerned determines that such a revision is warranted, the Secretary concerned shall revise the base zones and rental per acre figures accordingly. Any revision of base zones and rental per acre figure shall only affect lease rental rates at inception or renewal.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H112A27F704124174ADA50000C5903579"><enum>(b)</enum><header>Rights-of-way under <act-name parsable-cite="MLA">Mineral Leasing Act</act-name></header><text>Section 28(<italic>l</italic>) of the <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> (30 U.S.C. 185(<italic>l</italic>)) is amended by inserting before the period at the end the following: <quote>using the valuation method described in <external-xref legal-doc="cfr" parsable-cite="cfr/43/2803.1">section 2803.1–2</external-xref> of title 43, Code of Federal Regulations, as revised in accordance with section 504(k) of the <act-name parsable-cite="FLPMA">Federal Land Policy and Management Act of 1976</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/43/1764">43 U.S.C. 1764(k)</external-xref>)</quote>.</text></subsection></section> <section id="H4CB8582BFC4040E0B7C2C2AE8C00C44C"><enum>350.</enum><header>Energy facility rights-of-way and corridors on Federal land</header> <subsection id="H7554B294B9154FEA868FDE63D72E1F25"><enum>(a)</enum><header>Report to Congress</header> <paragraph id="HE1F4C82880364CF8B17F00D0BD9CD01D"><enum>(1)</enum><header>In General</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary of Agriculture and the Secretary of the Interior, in consultation with the Secretary of Commerce, the Secretary of Defense, the Secretary of Energy, and the Federal Energy Regulatory Commission, shall submit to Congress a joint report—</text> <subparagraph id="H5F38AD004C9E4141A654BF97650283BC"><enum>(A)</enum><text>that addresses—</text> <clause id="H61E4E900FA3F47B0B0DC896B16011632"><enum>(i)</enum><text>the location of existing rights-of-way and designated and de facto corridors for oil and gas pipelines and electric transmission and distribution facilities on Federal land; and</text></clause> <clause id="H3C4F6C28B7F8478198906EF1A188EC18"><enum>(ii)</enum><text>opportunities for additional oil and gas pipeline and electric transmission capacity within those rights-of-way and corridors; and</text></clause></subparagraph> <subparagraph id="HB745DD7DB9994BC0BA6BF9C9815BE89E"><enum>(B)</enum><text>that includes a plan for making available, on request, to the appropriate Federal, State, and local agencies, tribal governments, and other persons involved in the siting of oil and gas pipelines and electricity transmission facilities Geographic Information System-based information regarding the location of the existing rights-of-way and corridors and any planned rights-of-way and corridors.</text></subparagraph></paragraph> <paragraph id="H1BE91C08B9C34E918CF13E575030A234"><enum>(2)</enum><header>Consultations and considerations</header><text>In preparing the report, the Secretary of the Interior and the Secretary of Agriculture shall consult with—</text> <subparagraph id="H01AB01FE13F34B01AEDFFC7C19B52C9B"><enum>(A)</enum><text>other agencies of Federal, State, tribal, or local units of government, as appropriate;</text></subparagraph> <subparagraph id="H5823B74FD73A4317AF2954A4BB1F3AA"><enum>(B)</enum><text>persons involved in the siting of oil and gas pipelines and electric transmission facilities; and</text></subparagraph> <subparagraph id="H6BA510D846744E4AB1B3DAD6C89459AF"><enum>(C)</enum><text>other interested members of the public.</text></subparagraph></paragraph> <paragraph id="H3C2DE0ADA0E2436D895FE7A08297FF6F"><enum>(3)</enum><header>Limitation</header><text>The Secretary of the Interior and the Secretary of Agriculture shall limit the distribution of the report and Geographic Information System-based information referred to in paragraph (1) as necessary for national and infrastructure security reasons, if either Secretary determines that the information may be withheld from public disclosure under a national security or other exception under <external-xref legal-doc="usc" parsable-cite="usc/5/552">section 552(b)</external-xref> of title 5, United States Code.</text></paragraph></subsection> <subsection id="H831D16B903C64BAD9BAA03E8CC2920FE"><enum>(b)</enum><header>Corridor designations</header> <paragraph id="HC94D466B23774F28A16E58B0D87CC2E5"><enum>(1)</enum><header>11 contiguous Western States</header><text>Not later than 2 years after the date of enactment of this Act, the Secretary of Agriculture, the Secretary of Commerce, the Secretary of Defense, the Secretary of Energy, and the Secretary of the Interior, in consultation with the Federal Energy Regulatory Commission and the affected utility industries, shall jointly—</text> <subparagraph id="H323D55D338FB4541A340E971B1B2425E"><enum>(A)</enum><text>designate, under title V of the <act-name parsable-cite="FLPMA">Federal Land Policy and Management Act of 1976</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/43/1761">43 U.S.C. 1761 et seq.</external-xref>) and other applicable Federal laws, corridors for oil and gas pipelines and electricity transmission and facilities on Federal land in the eleven contiguous Western States (as defined in section 103 of the <act-name parsable-cite="FLPMA">Federal Land Policy and Management Act of 1976</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/43/1702">43 U.S.C. 1702</external-xref>));</text></subparagraph> <subparagraph id="H1AE01485DC1D43578B94B638BF20F33C"><enum>(B)</enum><text>perform any environmental reviews that may be required to complete the designations of corridors for the facilities on Federal land in the eleven contiguous Western States; and</text></subparagraph> <subparagraph id="HAEB93A5DD070435FAE521500525DB0C4"><enum>(C)</enum><text>incorporate the designated corridors into—</text> <clause id="HC5BCDA638709473C8FE4C6C323E3CF72"><enum>(i)</enum><text>the relevant departmental and agency land use and resource management plans; or</text></clause> <clause id="H9B2632DB9C8345F29F4100897F814161"><enum>(ii)</enum><text>equivalent plans.</text></clause></subparagraph></paragraph> <paragraph id="HB135D3C7CC9C45ABB623133900BB5C37"><enum>(2)</enum><header>Other States</header><text>Not later than 4 years after the date of enactment of this Act, the Secretary of Agriculture, the Secretary of Commerce, the Secretary of Defense, the Secretary of Energy, and the Secretary of the Interior, in consultation with the Federal Energy Regulatory Commission and the affected utility industries, shall jointly—</text> <subparagraph id="H5108ACAAA32E4CAF8D87F5B23356CDBE"><enum>(A)</enum><text>identify corridors for oil and gas pipelines and electricity transmission and distribution facilities on Federal land in the States other than those described in paragraph (1); and</text></subparagraph> <subparagraph id="H6F5C8D70299C405688BDA9DAF8F2EA2E"><enum>(B)</enum><text>schedule prompt action to identify, designate, and incorporate the corridors into the land use plan.</text></subparagraph></paragraph> <paragraph id="HCF8E29D425A544DAB1C07F6B6EA7DB19"><enum>(3)</enum><header>Ongoing responsibilities</header><text>After completing the requirements under paragraphs (1) and (2), the Secretary of Agriculture, the Secretary of Commerce, the Secretary of Defense, the Secretary of Energy, and the Secretary of the Interior, with respect to lands under their respective jurisdictions, in consultation with the Federal Energy Regulatory Commission and the affected utility industries, shall establish procedures that—</text> <subparagraph id="H89A18D8C11944D5E9BE41895DBCC17A7"><enum>(A)</enum><text>ensure that additional corridors for oil and gas pipelines and electricity transmission and distribution facilities on Federal land are promptly identified and designated; and</text></subparagraph> <subparagraph id="HA56A6C53B6EA4338A9597C58C30008DF"><enum>(B)</enum><text>expedite applications to construct or modify oil and gas pipelines and electricity transmission and distribution facilities within the corridors, taking into account prior analyses and environmental reviews undertaken during the designation of corridors.</text></subparagraph></paragraph></subsection> <subsection id="H283A104D5ADB4AF093D0CFC20020F2D7"><enum>(c)</enum><header>Considerations</header><text>In carrying out this section, the Secretaries shall take into account the need for upgraded and new electricity transmission and distribution facilities to—</text> <paragraph id="H68CBAC0E656A4234B1B23F804F19D5D7"><enum>(1)</enum><text>improve reliability;</text></paragraph> <paragraph id="HBAF524FA1DA8461B9D77B917CB25C105"><enum>(2)</enum><text>relieve congestion; and</text></paragraph> <paragraph id="HA70A4348409B488CA7B5B71F4BCC36E"><enum>(3)</enum><text>enhance the capability of the national grid to deliver electricity.</text></paragraph></subsection> <subsection id="H4E55502ECFE74356A99D2633174F0093"><enum>(d)</enum><header>Definition of corridor</header> <paragraph id="H78C3A73F56B2494599447D66334E9D12"><enum>(1)</enum><header>In General</header><text>In this section and title V of the <act-name parsable-cite="FLPMA">Federal Land Policy and Management Act of 1976</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/43/1761">43 U.S.C. 1761 et seq.</external-xref>), the term <term>corridor</term> means—</text> <subparagraph id="H10C8D540A79D417C832FBDB853F674A8"><enum>(A)</enum><text>a linear strip of land—</text> <clause id="HC4227724865E4AC4A6F2005224DB0355"><enum>(i)</enum><text>with a width determined with consideration given to technological, environmental, and topographical factors; and</text></clause> <clause id="H39F6EECF216E4829B2D0B7C59749B5E2"><enum>(ii)</enum><text>that contains, or may in the future contain, 1 or more utility, communication, or transportation facilities;</text></clause></subparagraph> <subparagraph id="HF8DE8F98659F4D31B8013E7E8C4840B7"><enum>(B)</enum><text>a land use designation that is established—</text> <clause id="H78F87F3C282E49619710E0BC9EAE0094"><enum>(i)</enum><text>by law;</text></clause> <clause id="H1C8567FAF27F46C600A900FDE6167613"><enum>(ii)</enum><text>by Secretarial Order;</text></clause> <clause id="HB021D3C1C9D4427CB6EE6BE91DD944D5"><enum>(iii)</enum><text>through the land use planning process; or</text></clause> <clause id="HA6BBBB0654724776A2F512988B39D4E4"><enum>(iv)</enum><text>by other management decision; and</text></clause></subparagraph> <subparagraph id="H0267582AC06A471EBDEADA2279826EF9"><enum>(C)</enum><text>a designation made for the purpose of establishing the preferred location of compatible linear facilities and land uses.</text></subparagraph></paragraph> <paragraph id="H2CED97AA1CC64348A2B8AA40A4225149"><enum>(2)</enum><header>Specifications of corridor</header><text>On designation of a corridor under this section, the centerline, width, and compatible uses of a corridor shall be specified.</text></paragraph></subsection></section> <section id="H3624CE4A462046949E70958D9BBC0523"><enum>351.</enum><header>Consultation regarding energy rights-of-way on public land</header> <subsection id="H741481FE0EDE4A4E96B2177FA02E8900"><enum>(a)</enum><header>Memorandum of understanding</header> <paragraph id="H4D0B82B721A5405EA4AB14F600F2957E"><enum>(1)</enum><header>In General</header><text>Not later than 6 months after the date of enactment of this Act, the Secretary of Energy, in consultation with the Secretary of the Interior, the Secretary of Agriculture, and the Secretary of Defense with respect to lands under their respective jurisdictions, shall enter into a memorandum of understanding to coordinate all applicable Federal authorizations and environmental reviews relating to a proposed or existing utility facility. To the maximum extent practicable under applicable law, the Secretary of Energy shall, to ensure timely review and permit decisions, coordinate such authorizations and reviews with any Indian tribes, multi-State entities, and State agencies that are responsible for conducting any separate permitting and environmental reviews of the affected utility facility.</text></paragraph> <paragraph id="HF26022D1EF4E45ABB7CA27C578849400"><enum>(2)</enum><header>Contents</header><text>The memorandum of understanding shall include provisions that—</text> <subparagraph id="H537914A2462D4976AC9FF73C45D42300"><enum>(A)</enum><text>establish—</text> <clause id="HC6B1829DE59B43CFA7D66F673ED7A59F"><enum>(i)</enum><text>a unified right-of-way application form; and</text></clause> <clause id="H772816B9451D47C0A45F1D93E8894694"><enum>(ii)</enum><text>an administrative procedure for processing right-of-way applications, including lines of authority, steps in application processing, and timeframes for application processing;</text></clause></subparagraph> <subparagraph id="H05E730699895435A8E896CDA5B024342"><enum>(B)</enum><text>provide for coordination of planning relating to the granting of the rights-of-way;</text></subparagraph> <subparagraph id="HC2FA060FDB6E4C1291001D00FEF400B2"><enum>(C)</enum><text>provide for an agreement among the affected Federal agencies to prepare a single environmental review document to be used as the basis for all Federal authorization decisions; and</text></subparagraph> <subparagraph id="HE549117501174861B6974B5492228F14"><enum>(D)</enum><text>provide for coordination of use of right-of-way stipulations to achieve consistency.</text></subparagraph></paragraph></subsection> <subsection id="H2C703CAAB5C94901A885AB1EB565DAFE"><enum>(b)</enum><header>Natural gas pipelines</header> <paragraph id="HA5DA613AE63B4E1297F86E8B612322AE"><enum>(1)</enum><header>In General</header><text>With respect to permitting activities for interstate natural gas pipelines, the May 2002 document entitled <quote>Interagency Agreement On Early Coordination Of Required Environmental And Historic Preservation Reviews Conducted In Conjunction With The Issuance Of Authorizations To Construct And Operate Interstate Natural Gas Pipelines Certificated By The Federal Energy Regulatory Commission</quote> shall constitute compliance with subsection (a).</text></paragraph> <paragraph id="H0C72A0F52C7D4DDEA61BDA5284F2E361"><enum>(2)</enum><header>Report</header> <subparagraph id="H42D672F6BF6E49ACBD9FAFC5E9222099"><enum>(A)</enum><header>In General</header><text>Not later than 1 year after the date of enactment of this Act, and every 2 years thereafter, agencies that are signatories to the document referred to in paragraph (1) shall transmit to Congress a report on how the agencies under the jurisdiction of the Secretaries are incorporating and implementing the provisions of the document referred to in paragraph (1).</text></subparagraph> <subparagraph id="H6D57CD3F52E84F7DB9131106E66C8AD"><enum>(B)</enum><header>Contents</header><text>The report shall address—</text> <clause id="H33296E73F4AC48E6B9497F6797C1963"><enum>(i)</enum><text>efforts to implement the provisions of the document referred to in paragraph (1);</text></clause> <clause id="H4D1D56320A3A45A6A9F2B778A3E4A149"><enum>(ii)</enum><text>whether the efforts have had a streamlining effect;</text></clause> <clause id="H65631EC7BBBD405E99E0D5EBFF0C16B"><enum>(iii)</enum><text>further improvements to the permitting process of the agency; and</text></clause> <clause id="H46E4E8A1C93044FFA09ED83834A746B6"><enum>(iv)</enum><text>recommendations for inclusion of State and tribal governments in a coordinated permitting process.</text></clause></subparagraph></paragraph></subsection> <subsection id="HFBCF1FAE83D14A05A493D526FEDC4BD8"><enum>(c)</enum><header>Definition of utility facility</header><text>In this section, the term <term>utility facility</term> means any privately, publicly, or cooperatively owned line, facility, or system—</text> <paragraph id="H1C9F4191E1FF463DBCF8EED26D663F9"><enum>(1)</enum><text>for the transportation of—</text> <subparagraph id="HF298A01ED56643C3AE46A7335366E546"><enum>(A)</enum><text>oil, natural gas, synthetic liquid fuel, or gaseous fuel;</text></subparagraph> <subparagraph id="HF5F3FE3DD2B3496CAD471F798D9D032D"><enum>(B)</enum><text>any refined product produced from oil, natural gas, synthetic liquid fuel, or gaseous fuel; or</text></subparagraph> <subparagraph id="H3FCF29855CFD44E88C256705C6D052F1"><enum>(C)</enum><text>products in support of the production of material referred to in subparagraph (A) or (B);</text></subparagraph></paragraph> <paragraph id="H1E9C6E56D5974DBE88B116ECAE19C460"><enum>(2)</enum><text>for storage and terminal facilities in connection with the production of material referred to in paragraph (1); or</text></paragraph> <paragraph id="H57583E44CDC044439BD65433BFBE6FD2"><enum>(3)</enum><text>for the generation, transmission, and distribution of electric energy.</text></paragraph></subsection></section> <section id="H26731157B1754DC3B38BEC11E962C931"><enum>352.</enum><header>Renewable energy on Federal land</header> <subsection id="HA484669083844D60BEA5C3BA22F23B04"><enum>(a)</enum><header>Report</header> <paragraph id="H8E2E5D7A462242D1AA71FD74C8F1B56D"><enum>(1)</enum><header>In General</header><text>Not later than 24 months after the date of enactment of this Act, the Secretary of the Interior, in cooperation with the Secretary of Agriculture, shall develop and transmit to Congress a report that includes recommendations on opportunities to develop renewable energy on—</text> <subparagraph id="H868F597FBACA41A08C004E77C2E1977D"><enum>(A)</enum><text>public lands under the jurisdiction of the Secretary of the Interior; and</text></subparagraph> <subparagraph id="H1668D61B5C9045D893C4F01F9B6981ED"><enum>(B)</enum><text>National Forest System lands under the jurisdiction of the Secretary of Agriculture.</text></subparagraph></paragraph> <paragraph id="H5C5CEABF180E4A20842D28DEE96C00AF"><enum>(2)</enum><header>Contents</header><text>The report shall include—</text> <subparagraph id="H33D182BDBB0B4D16B3EE540183F3AD72"><enum>(A)</enum><text>5-year plans developed by the Secretary of the Interior and the Secretary of Agriculture, respectively, for encouraging the development of renewable energy consistent with applicable law and management plans;</text></subparagraph> <subparagraph id="H72348F3639F142DD8EC60BD04B6F0EF"><enum>(B)</enum><text>an analysis of—</text> <clause id="HF1F1E2D97EB54F4F9DB66E02004EB781"><enum>(i)</enum><text>the use of rights-of-way, leases, or other methods to develop renewable energy on such lands;</text></clause> <clause id="HA48B1AA610F442D991027E99539DF324"><enum>(ii)</enum><text>the anticipated benefits of grants, loans, tax credits, or other provisions to promote renewable energy development on such lands; and</text></clause> <clause id="H0B17751D02984D8A992FDBDA2E3B50DF"><enum>(iii)</enum><text>any issues that the Secretary of the Interior or the Secretary of Agriculture have encountered in managing renewable energy projects on such lands, believe are likely to arise in relation to the development of renewable energy on such lands;</text></clause></subparagraph> <subparagraph id="H97F9C370D2CC4E088E869C8900A9946B"><enum>(C)</enum><text>a list, developed in consultation with the Secretary of Energy and the Secretary of Defense, of lands under the jurisdiction of the Department of Energy or the Department of Defense that would be suitable for development for renewable energy, and any recommended statutory and regulatory mechanisms for such development; and</text></subparagraph> <subparagraph id="HF8EBE04D04B34549B43E2D48DE8BA0C6"><enum>(D)</enum><text>any recommendations relating to the issues addressed in the report.</text></subparagraph></paragraph></subsection> <subsection id="HF692657063D349258D4F203157782FA7"><enum>(b)</enum><header>National Academy of Sciences study</header> <paragraph id="H42F38FB050794B6EB92E9CCD002FD022"><enum>(1)</enum><header>In General</header><text>Not later than 90 days after the date of enactment of this Act, the Secretary of the Interior shall contract with the National Academy of Sciences to—</text> <subparagraph id="H23AF7E8B606A4BB2BF759027FE8D4C56"><enum>(A)</enum><text>study the potential for the development of wind, solar, and ocean energy (including tidal, wave, and thermal energy) on the outer Continental Shelf;</text></subparagraph> <subparagraph id="HE48932FB8BBE4F6DAC50D8B7C55E49F"><enum>(B)</enum><text>assess existing Federal authorities for the development of such resources; and</text></subparagraph> <subparagraph id="H7D9F3D5963BB47C686273CB1B1C5943D"><enum>(C)</enum><text>recommend statutory and regulatory mechanisms for such development.</text></subparagraph></paragraph> <paragraph id="H27F67E772FB2474BA015DC510AD431"><enum>(2)</enum><header>Transmittal</header><text>The results of the study shall be transmitted to Congress not later than 2 years after the date of enactment of this Act.</text></paragraph></subsection> <subsection id="H4858655BDC404354A6235167917700CE"><enum>(c)</enum><header>Generation capacity of electricity from renewable energy resources on public land</header><text>The Secretary of the Interior shall, not later than 10 years after the date of enactment of this Act, seek to approve renewable energy projects located (or to be located) on public lands with a generation capacity of at least 10,000 megawatts of electricity.</text></subsection></section> <section id="HAAA81B40E88B4CCBB483CB8000BB1756"><enum>353.</enum><header>Electricity transmission line right-of-way, cleveland national forest and adjacent public land, California</header> <subsection id="HCDC9E9FF1A2F4B688FD362B7DA7C1EDB"><enum>(a)</enum><header>Issuance</header> <paragraph id="H4DFE508D9FBE47AF9909F54F00212BF2"><enum>(1)</enum><header>In General</header><text>Not later than 60 days after the completion of the environmental reviews under subsection (c), the Secretary of the Interior and the Secretary of Agriculture shall issue all necessary grants, easements, permits, plan amendments, and other approvals to allow for the siting and construction of a high-voltage electricity transmission line right-of-way running approximately north to south through the Trabuco Ranger District of the Cleveland National Forest in the State of California and adjacent lands under the jurisdiction of the Bureau of Land Management and the Forest Service.</text></paragraph> <paragraph id="H642B9258CC824176A50297B909B9C667"><enum>(2)</enum><header>Inclusions</header><text>The right-of-way approvals under paragraph (1) shall provide all necessary Federal authorization from the Secretary of the Interior and the Secretary of Agriculture for the routing, construction, operation, and maintenance of a 500-kilovolt transmission line capable of meeting the long-term electricity transmission needs of the region between the existing Valley-Serrano transmission line to the north and the Telega-Escondido transmission line to the south, and for connecting to future generating capacity that may be developed in the region.</text></paragraph></subsection> <subsection id="HBA35D8729FA349F68F055BA3D6F5FEDB"><enum>(b)</enum><header>Protection of wilderness areas</header><text>The Secretary of the Interior and the Secretary of Agriculture shall not allow any portion of a transmission line right-of-way corridor identified in subsection (a) to enter any identified wilderness area in existence as of the date of enactment of this Act.</text></subsection> <subsection id="H2A5B0A7519804222B52DCD4E5BAF4298"><enum>(c)</enum><header>Environmental and administrative reviews</header> <paragraph id="HE18ACAE9F5894C158946196F314E9FAC"><enum>(1)</enum><header>Department of interior or local agency</header><text>The Secretary of the Interior, acting through the Director of the Bureau of Land Management, shall be the lead Federal agency with overall responsibility to ensure completion of required environmental and other reviews of the approvals to be issued under subsection (a).</text></paragraph> <paragraph id="H7B0801D5F6B347E7927885F01D548668"><enum>(2)</enum><header>National Forest System land</header><text>For the portions of the corridor on National Forest System lands, the Secretary of Agriculture shall complete all required environmental reviews and administrative actions in coordination with the Secretary of the Interior.</text></paragraph> <paragraph id="HF0C80AE733324A30A08ED427B100001B"><enum>(3)</enum><header>Expeditious completion</header><text>The reviews required for issuance of the approvals under subsection (a) shall be completed not later than 1 year after the date of the enactment of this Act.</text></paragraph></subsection> <subsection id="H9588059A70044D1DB99DF54CEC97C864"><enum>(d)</enum><header>Other terms and conditions</header><text>The transmission line right-of-way shall be subject to such terms and conditions as the Secretary of the Interior and the Secretary of Agriculture consider necessary, based on the environmental reviews under subsection (c), to protect the value of historic, cultural, and natural resources under the jurisdiction of the Secretary of the Interior or the Secretary of Agriculture.</text></subsection> <subsection id="HDFCD94FB53124E71B2FBC99440ED805D"><enum>(e)</enum><header>Preference among proposals</header><text>The Secretary of the Interior and the Secretary of Agriculture shall give a preference to any application or preapplication proposal for a transmission line right-of-way referred to in subsection (a) that was submitted before December 31, 2002, over all other applications and proposals for the same or a similar right-of-way submitted on or after that date.</text></subsection></section> <section id="HBBF407F6D62645279DEE00B1971F1CFB"><enum>354.</enum><header>Sense of Congress regarding development of MINERALS under Padre Island National Seashore</header> <subsection id="H4139A93BB89147079600DAE1DB817221"><enum>(a)</enum><header>Findings</header><text>Congress finds the following:</text> <paragraph id="H25C358DDA87D49D287C7B296755E6BD"><enum>(1)</enum><text>Pursuant to <external-xref legal-doc="public-law" parsable-cite="pl/87/712">Public Law 87–712</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/16/459d">16 U.S.C. 459d et seq.</external-xref>; popularly known as the <quote>Federal Enabling Act</quote>) and various deeds and actions under that Act, the United States is the owner of only the surface estate of certain lands constituting the Padre Island National Seashore.</text></paragraph> <paragraph id="H7652C17D0DE74B0F9E2EF1D9D2A8D000"><enum>(2)</enum><text>Ownership of the oil, gas, and other minerals in the subsurface estate of the lands constituting the Padre Island National Seashore was never acquired by the United States, and ownership of those interests is held by the State of Texas and private parties.</text></paragraph> <paragraph id="HFFA68114A9A541F59743E2EBED5BE5CF"><enum>(3)</enum><text>Public Law 87–712 (<external-xref legal-doc="usc" parsable-cite="usc/16/459d">16 U.S.C. 459d et seq.</external-xref>)—</text> <subparagraph id="HF3FF610E9E3B491FB4F1BA028D070966"><enum>(A)</enum><text>expressly contemplated that the United States would recognize the ownership and future development of the oil, gas, and other minerals in the subsurface estate of the lands constituting the Padre Island National Seashore by the owners and their mineral lessees; and</text></subparagraph> <subparagraph id="H525EB33924224E87905F4BA3A13FF78B"><enum>(B)</enum><text>recognized that approval of the State of Texas was required to create Padre Island National Seashore.</text></subparagraph></paragraph> <paragraph id="H5E8EAADF84DB49A9AFA6905E63DF1BA3"><enum>(4)</enum><text>Approval was given for the creation of Padre Island National Seashore by the State of Texas through Tex. Rev. Civ. Stat. Ann. Art. 6077(t) (Vernon 1970), which expressly recognized that development of the oil, gas, and other minerals in the subsurface of the lands constituting Padre Island National Seashore would be conducted with full rights of ingress and egress under the laws of the State of Texas.</text></paragraph></subsection> <subsection id="H5F3A04BCE5FD485094AC4F604831B0F"><enum>(b)</enum><header>Sense of Congress</header><text>It is the sense of Congress that with regard to Federal law, any regulation of the development of oil, gas, or other minerals in the subsurface of the lands constituting Padre Island National Seashore should be made as if those lands retained the status that the lands had on September 27, 1962.</text></subsection></section> <section id="H8BB54D85D2534465A2DCF7425CA5393C"><enum>355.</enum><header>Encouraging prohibition of off-shore Drilling in the Great Lakes</header><text display-inline="no-display-inline">Congress encourages—</text> <paragraph id="H8622C247852046C2B6F967663ABC9E5"><enum>(1)</enum><text>the States of Illinois, Michigan, New York, Pennsylvania, and Wisconsin to continue to prohibit offshore drilling in the Great Lakes for oil and gas; and</text></paragraph> <paragraph id="H3D6FCC83529D485F9877BCE218C146AB"><enum>(2)</enum><text>the States of Indiana, Minnesota, and Ohio to enact a prohibition of such drilling.</text></paragraph></section> <section id="H1640915DB04248ACB69E812B6969C8C0"><enum>356.</enum><header>Finger Lakes National Forest withdrawal</header><text display-inline="no-display-inline">All Federal land within the boundary of Finger Lakes National Forest in the State of New York is withdrawn from—</text> <paragraph id="H9751AE5A1302447CB3DA648CFF8A290"><enum>(1)</enum><text>all forms of entry, appropriation, or disposal under the public land laws; and</text></paragraph> <paragraph id="H6B61E1E47BE64F8F822658F9A705EB7"><enum>(2)</enum><text>disposition under all laws relating to oil and gas leasing.</text></paragraph></section> <section id="H0CE31F405BF04D89B04E9D1903F54349"><enum>357.</enum><header>Study on lease exchanges in the rocky mountain front</header> <subsection id="HA84199CF65434EF0BE5BE1801D8B40B2"><enum>(a)</enum><header>Definitions</header><text>For the purposes of this section:</text> <paragraph id="H16CE2B447B3E495294C5013194464DA5"><enum>(1)</enum><header>Badger-Two Medicine Area</header><text>The term <term>Badger-Two Medicine Area</term> means the Forest Service land located in—</text> <subparagraph id="H52CDD46CF7ED442EAAC1F376E26DF6BD"><enum>(A)</enum><text>T. 31 N., R. 12–13 W.;</text></subparagraph> <subparagraph id="H1B2CA55DEAE7405AA500160258ADA1EF"><enum>(B)</enum><text>T. 30 N., R. 11–13 W.;</text></subparagraph> <subparagraph id="H9B8E06F03FD74A8B9575F9CC19155B51"><enum>(C)</enum><text>T. 29 N., R. 10–16 W.; and</text></subparagraph> <subparagraph id="H29AA6AFAA7BE4DE1ABFECEF014C4F052"><enum>(D)</enum><text>T. 28 N., R. 10–14 W.</text></subparagraph></paragraph> <paragraph id="H43824DD50F39426EB9B0E44500304CB0"><enum>(2)</enum><header>Blackleaf Area</header><text>The term <term>Blackleaf Area</term> means the Federal land owned by the Forest Service and Bureau of Land Management that is located in—</text> <subparagraph id="H71F016D1D81C471FABC43DE00065F968"><enum>(A)</enum><text>T. 27 N., R. 9 W.;</text></subparagraph> <subparagraph id="H5451A6AEC91147DB9CC43671004BA252"><enum>(B)</enum><text>T. 26 N., R. 9–10 W.;</text></subparagraph> <subparagraph id="H7E1200F80C954DAF86B602B01E077900"><enum>(C)</enum><text>T. 25 N., R. 8–10 W.; and</text></subparagraph> <subparagraph id="HB1739256E3804CD88E792C2432E6A365"><enum>(D)</enum><text>T. 24 N., R. 8–9 W.</text></subparagraph></paragraph> <paragraph id="H9831B71F46134437BD1E00200000C09E"><enum>(3)</enum><header>Eligible lessee</header><text>The term <term>eligible lessee</term> means a lessee under a nonproducing lease.</text></paragraph> <paragraph id="HA6E2E6EA654546278612D86846EB1185"><enum>(4)</enum><header>Nonproducing lease</header><text>The term <term>nonproducing lease</term> means a Federal oil or gas lease—</text> <subparagraph id="HBC8B3E6FAC9E45218C88C4D73C885039"><enum>(A)</enum><text>that is in existence and in good standing on the date of enactment of this Act; and</text></subparagraph> <subparagraph id="HE2C3E9D7732C472CBA1CD04810AE996E"><enum>(B)</enum><text>that is located in the Badger-Two Medicine Area or the Blackleaf Area.</text></subparagraph></paragraph> <paragraph id="H137FA3A12B5D4D6FB42932C03D250954"><enum>(5)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of the Interior.</text></paragraph> <paragraph id="H2FF3E98369894CB7B228FC8A64C004E"><enum>(6)</enum><header>State</header><text>The term <term>State</term> means the State of Montana.</text></paragraph></subsection> <subsection id="HE3AE4FCD8F3549F7BF4B53CC344B4ED2"><enum>(b)</enum><header>Evaluation</header> <paragraph id="HE5CE6E1936094E52A4BCCF73770298E0"><enum>(1)</enum><header>In General</header><text>The Secretary, in consultation with the Governor of the State, and the eligible lessees, shall evaluate opportunities for domestic oil and gas production through the exchange of the nonproducing leases.</text></paragraph> <paragraph id="HE7F5114828F94ADFBB963289BAE5773B"><enum>(2)</enum><header>Requirements</header><text>In carrying out the evaluation under subsection (a), the Secretary shall—</text> <subparagraph id="HD3445B07097D4213B0ED7D6D00227627"><enum>(A)</enum><text>consider opportunities for domestic production of oil and gas through—</text> <clause id="HCF898EE7366E429900D800B5F9864709"><enum>(i)</enum><text>the exchange of the nonproducing leases for oil and gas lease tracts of comparable value in the State; and</text></clause> <clause id="H46E82DA64CA240E000FBE5002688A650"><enum>(ii)</enum><text>the issuance of bidding, royalty, or rental credits for Federal oil and gas leases in the State in exchange for the cancellation of the nonproducing leases;</text></clause></subparagraph> <subparagraph id="H6C7EA8E4FC2F4B2881CCB42D7C1F9C24"><enum>(B)</enum><text>consider any other appropriate means to exchange, or provide compensation for the cancellation of, nonproducing leases, subject to the consent of the eligible lessees;</text></subparagraph> <subparagraph id="H91F067C5527A4B4E83EA9B325ED7353F"><enum>(C)</enum><text>consider the views of any interested persons, including the State;</text></subparagraph> <subparagraph id="H09635F57AA794E0C8D70B71243ED6124"><enum>(D)</enum><text>determine the level of interest of the eligible lessees in exchanging the nonproducing leases;</text></subparagraph> <subparagraph id="HBE2006AA4D5447ECB42D833FAF9C6621"><enum>(E)</enum><text>assess the economic impact on the lessees and the State of lease exchange, lease cancellation, and final judicial or administrative decisions related to the nonproducing leases; and</text></subparagraph> <subparagraph id="H57F2E4EEDF334A4DAFA8A9A2EC967B64"><enum>(F)</enum><text>provide recommendations on—</text> <clause id="HB1D8215693B241BF96D087C6A559C4E5"><enum>(i)</enum><text>whether to pursue an exchange of the nonproducing leases;</text></clause> <clause id="H2F56E9915A5D40F6A168C78BF13C8C62"><enum>(ii)</enum><text>any changes in laws (including regulations) that are necessary for the Secretary to carry out the exchange; and</text></clause> <clause id="H21D3F2FBBE634D9CACB141272FCA8245"><enum>(iii)</enum><text>any other appropriate means to exchange or provide compensation for the cancellation of a nonproducing lease, subject to the consent of the eligible lessee.</text></clause></subparagraph></paragraph></subsection> <subsection id="H889E574310B44356ADD1E9BA5900F5E7"><enum>(c)</enum><header>Valuation of nonproducing leases</header><text>For the purpose of the evaluation under subsection (a), the value of a nonproducing lease shall be an amount equal to the difference between—</text> <paragraph id="H999191CB5E9A4916B46800025C00002D"><enum>(1)</enum><text>the sum of—</text> <subparagraph id="HB0D8492A421A4042B66EB53F51A85507"><enum>(A)</enum><text>the amount paid by the eligible lessee for the nonproducing lease;</text></subparagraph> <subparagraph id="H3F77788D206A4B4A9FBCD7958713398F"><enum>(B)</enum><text>any direct expenditures made by the eligible lessee before the transmittal of the report in subsection (c) associated with the exploration and development of the nonproducing lease; and</text></subparagraph> <subparagraph id="H3F07A020F777444AACEC1CC3BDA9A6A4"><enum>(C)</enum><text>interest on any amounts under subparagraphs (A) and (B) during the period beginning on the date on which the amount was paid and ending on the date on which credits are issued under subsection (b)(2)(A)(ii); and</text></subparagraph></paragraph> <paragraph id="H7B9E1551556E4D798727B6696F18E6A9"><enum>(2)</enum><text>the sum of the revenues from the nonproducing lease.</text></paragraph></subsection> <subsection id="HDD875FD2FA644EEA8E5CC3F9A05B68DB"><enum>(d)</enum><header>Report to Congress</header><text>Not later than 2 years after the date of the enactment of this Act, the Secretary shall initiate the evaluation in subsection (b) and transmit to Congress a report on the evaluation.</text></subsection></section> <section id="HEF5FE6C50AE645F18C3728CCFFCF078F"><enum>358.</enum><header>Federal coalbed methane regulation</header><text display-inline="no-display-inline">Any State currently on the list of Affected States established under section 1339(b) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13368">42 U.S.C. 13368(b)</external-xref>) shall be removed from the list if, not later than 3 years after the date of enactment of this Act, the State takes, or prior to the date of enactment has taken, any of the actions required for removal from the list under such section 1339(b).</text></section> <section id="H81FEC660813143C4A568C8DFD5F57D86"><enum>359.</enum><header>Livingston parish mineral rights transfer</header> <subsection id="HEAD1407A219D43C386D02219C1243857"><enum>(a)</enum><header>Amendments</header><text>Section 102 of <external-xref legal-doc="public-law" parsable-cite="pl/102/562">Public Law 102–562</external-xref> (106 Stat. 4234) is amended—</text> <paragraph id="H7FEA026428544643A9BE84CFF484E620"><enum>(1)</enum><text>by striking <quote>(a) <header-in-text level="subsection">In General</header-in-text>.—</quote>; </text></paragraph> <paragraph id="H7002A89AD5374B9AA0B946523EB996D"><enum>(2)</enum><text>by striking <quote>and subject to the reservation in subsection (b),</quote>; and</text></paragraph> <paragraph id="H7F8B6F66F4DE4667B54EB9249BA41828"><enum>(3)</enum><text>by striking subsection (b).</text></paragraph></subsection> <subsection id="H2983CD593B854E4A93CA39816615FA2C"><enum>(b)</enum><header>Implementation of amendment</header><text>The Secretary of the Interior shall execute the legal instruments necessary to effectuate the amendment made by subsection (a)(3).</text></subsection></section></subtitle> <subtitle id="HCE4170DFAD984BD0B873A32B00B9DDF4"><enum>D</enum><header>Alaska Natural Gas Pipeline</header> <section id="H826225B60BC54F7986FFE86142190062"><enum>371.</enum><header>Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the <quote><short-title>Alaska Natural Gas Pipeline Act</short-title></quote>.</text></section> <section id="H98216FF8CAAE44F4B4EE68A0FF255DB7"><enum>372.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text> <paragraph id="H37D27CF32EDB48D48BF41E3E00D6467F"><enum>(1)</enum><header>Alaska natural gas</header><text>The term <term>Alaska natural gas</term> means natural gas derived from the area of the State of Alaska lying north of 64 degrees north latitude.</text></paragraph> <paragraph id="HF4FEED5A38C3439B93DAF6C9593D96D6"><enum>(2)</enum><header>Alaska natural gas transportation project</header><text>The term <term>Alaska natural gas transportation project</term> means any natural gas pipeline system that carries Alaska natural gas to the border between Alaska and Canada (including related facilities subject to the jurisdiction of the Commission) that is authorized under—</text> <subparagraph id="H96229D91FE6448EFABE322A1A2C30009"><enum>(A)</enum><text>the Alaska Natural Gas Transportation Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/15/719">15 U.S.C. 719 et seq.</external-xref>); or</text></subparagraph> <subparagraph id="H1631130BDF2E4B5F92DF4DF5D28717EA"><enum>(B)</enum><text>section 373.</text></subparagraph></paragraph> <paragraph id="H5542A34D7EF3453E8F46458EBE6915D1"><enum>(3)</enum><header>Alaska Natural Gas Transportation System</header><text>The term <term>Alaska natural gas transportation system</term> means the Alaska natural gas transportation project authorized under the Alaska Natural Gas Transportation Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/15/719">15 U.S.C. 719 et seq.</external-xref>) and designated and described in section 2 of the President’s decision.</text></paragraph> <paragraph id="HDA538B7551EB45BD9EE425514CADAAD7"><enum>(4)</enum><header>Commission</header><text>The term <term>Commission</term> means the Federal Energy Regulatory Commission.</text></paragraph> <paragraph id="HAC101612509D44ED9F8C31D73F020037"><enum>(5)</enum><header>Federal Coordinator</header><text>The term <term>Federal Coordinator</term> means the head of the Office of the Federal Coordinator for Alaska Natural Gas Transportation Projects established by section 376(a).</text></paragraph> <paragraph id="H91E20346D1B44708B534547088A2CEB"><enum>(6)</enum><header>President’s decision</header><text>The term <term>President’s decision</term> means the decision and report to Congress on the Alaska natural gas transportation system—</text> <subparagraph id="HC79F0A6C6C004FE99DB3CD9F99BE450"><enum>(A)</enum><text>issued by the President on September 22, 1977, in accordance with section 7 of the Alaska Natural Gas Transportation Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/15/719e">15 U.S.C. 719e</external-xref>); and</text></subparagraph> <subparagraph id="H47E75033BD6A4E5E95D99F007CEAD554"><enum>(B)</enum><text>approved by <external-xref legal-doc="public-law" parsable-cite="pl/95/158">Public Law 95–158</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/15/719f">15 U.S.C. 719f</external-xref> note; 91 Stat. 1268).</text></subparagraph></paragraph> <paragraph id="H5C5FF293E6304564B1011724C03E7146"><enum>(7)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Energy.</text></paragraph> <paragraph id="HEAA25FC825B1459BA5107C91F5E400C6"><enum>(8)</enum><header>State</header><text>The term <term>State</term> means the State of Alaska.</text></paragraph></section> <section id="H5C580C35096A42B0B1DB2B8D040059FE"><enum>373.</enum><header>Issuance of certificate of public convenience and necessity</header> <subsection id="H1FAFA5494C8344BD80E566B174A2135E"><enum>(a)</enum><header>Authority of the Commission</header><text>Notwithstanding the Alaska Natural Gas Transportation Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/15/719">15 U.S.C. 719 et seq.</external-xref>), the Commission may, in accordance with section 7(c) of the Natural Gas Act (<external-xref legal-doc="usc" parsable-cite="usc/15/717f">15 U.S.C. 717f(c)</external-xref>), consider and act on an application for the issuance of a certificate of public convenience and necessity authorizing the construction and operation of an Alaska natural gas transportation project other than the Alaska natural gas transportation system.</text></subsection> <subsection id="H90F2960F8AFD40BE9DC40000EFBDACB"><enum>(b)</enum><header>Issuance of certificate</header> <paragraph id="HCE53312C68F547E59E00B2AB4B73F141"><enum>(1)</enum><header>In General</header><text>The Commission shall issue a certificate of public convenience and necessity authorizing the construction and operation of an Alaska natural gas transportation project under this section if the applicant has satisfied the requirements of section 7(e) of the Natural Gas Act (<external-xref legal-doc="usc" parsable-cite="usc/15/717f">15 U.S.C. 717f(e)</external-xref>).</text></paragraph> <paragraph id="HF263E83F42524E070023BC5159312CF6"><enum>(2)</enum><header>Considerations</header><text>In considering an application under this section, the Commission shall presume that—</text> <subparagraph id="H4C5E5D9DBD3048E483F95FCC803C87B0"><enum>(A)</enum><text>a public need exists to construct and operate the proposed Alaska natural gas transportation project; and</text></subparagraph> <subparagraph id="H8A87643E3BC940D08768B4ED4D6E578"><enum>(B)</enum><text>sufficient downstream capacity will exist to transport the Alaska natural gas moving through the project to markets in the contiguous United States.</text></subparagraph></paragraph></subsection> <subsection id="H2EAEB6EA12A4451689E0B95060E6698"><enum>(c)</enum><header>Expedited approval process</header><text>Not later than 60 days after the date of issuance of the final environmental impact statement under section 374 for an Alaska natural gas transportation project, the Commission shall issue a final order granting or denying any application for a certificate of public convenience and necessity for the project under section 7(c) of the Natural Gas Act (<external-xref legal-doc="usc" parsable-cite="usc/15/717f">15 U.S.C. 717f(c)</external-xref>) and this section.</text></subsection> <subsection id="HD26A462FEBBA465DB0F26E9EC362EFF9"><enum>(d)</enum><header>Prohibition of certain pipeline route</header><text>No license, permit, lease, right-of-way, authorization, or other approval required under Federal law for the construction of any pipeline to transport natural gas from land within the Prudhoe Bay oil and gas lease area may be granted for any pipeline that follows a route that—</text> <paragraph id="H6DD1111FDE3743489E569677E66520A8"><enum>(1)</enum><text>traverses land beneath navigable waters (as defined in section 2 of the Submerged Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1301">43 U.S.C. 1301</external-xref>)) beneath, or the adjacent shoreline of, the Beaufort Sea; and</text></paragraph> <paragraph id="H81A21B67CCDE4870941E985E9440AC12"><enum>(2)</enum><text>enters Canada at any point north of 68 degrees north latitude.</text></paragraph></subsection> <subsection id="HABADFE8753F94FD0BEFF8896F55E06D3"><enum>(e)</enum><header>Open season</header> <paragraph id="H13BC40A55AD94F3DACF6846BA71148D0"><enum>(1)</enum><header>In General</header><text>Not later than 120 days after the date of enactment of this Act, the Commission shall issue regulations governing the conduct of open seasons for Alaska natural gas transportation projects (including procedures for the allocation of capacity).</text></paragraph> <paragraph id="H6C6A36970A53476F909F2E3FEE35A431"><enum>(2)</enum><header>Regulations</header><text>The regulations referred to in paragraph (1) shall—</text> <subparagraph id="H0F5F926995E946479D1477B45B6DFEE0"><enum>(A)</enum><text>include the criteria for and timing of any open seasons;</text></subparagraph> <subparagraph id="H43F5F57CD6ED40898CA0C4FA7995C839"><enum>(B)</enum><text>promote competition in the exploration, development, and production of Alaska natural gas; and</text></subparagraph> <subparagraph id="H98B7E20094824E10B9BBC0384E9E8E99"><enum>(C)</enum><text>for any open season for capacity exceeding the initial capacity, provide the opportunity for the transportation of natural gas other than from the Prudhoe Bay and Point Thomson units.</text></subparagraph></paragraph> <paragraph id="H8342D3B671174678A10944D8EF8CC26"><enum>(3)</enum><header>Applicability</header><text>Except in a case in which an expansion is ordered in accordance with section 375, initial or expansion capacity on any Alaska natural gas transportation project shall be allocated in accordance with procedures to be established by the Commission in regulations issued under paragraph (1).</text></paragraph></subsection> <subsection id="HBDE2A3725FB14100B5E4057E14C45DF"><enum>(f)</enum><header>Projects in the contiguous United States</header> <paragraph id="HE7D17315D5EB4296AE3C74CEE7757F"><enum>(1)</enum><header>In General</header><text>An application for additional or expanded pipeline facilities that may be required to transport Alaska natural gas from Canada to markets in the contiguous United States may be made in accordance with the Natural Gas Act (<external-xref legal-doc="usc" parsable-cite="usc/15/717a">15 U.S.C. 717a et seq.</external-xref>).</text></paragraph> <paragraph id="H8765264602DC4AFE89BA827BCC77ECC1"><enum>(2)</enum><header>Expansion</header><text>To the extent that a pipeline facility described in paragraph (1) includes the expansion of any facility constructed in accordance with the Alaska Natural Gas Transportation Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/15/719">15 U.S.C. 719 et seq.</external-xref>), that Act shall continue to apply.</text></paragraph></subsection> <subsection id="HC6D8247C2781481581D4C9E47B53CEA9"><enum>(g)</enum><header>Study of in-state needs</header><text>The holder of the certificate of public convenience and necessity issued, modified, or amended by the Commission for an Alaska natural gas transportation project shall demonstrate that the holder has conducted a study of Alaska in-State needs, including tie-in points along the Alaska natural gas transportation project for in-State access.</text></subsection> <subsection id="H601D0F4066834E22B4AC89C5173742F"><enum>(h)</enum><header>Alaska royalty gas</header> <paragraph id="H8431F4AAB0A540F6004634A040C81950"><enum>(1)</enum><header>In General</header><text>Except as provided in paragraph (2), the Commission, on a request by the State and after a hearing, may provide for reasonable access to the Alaska natural gas transportation project by the State (or State designee) for the transportation of royalty gas of the State for the purpose of meeting local consumption needs within the State.</text></paragraph> <paragraph id="HCD52F812AAE6498E86B1F106D3DE39D5"><enum>(2)</enum><header>Exception</header><text>The rates of shippers of subscribed capacity on an Alaska natural gas transportation project described in paragraph (1), as in effect as of the date on which access under that paragraph is granted, shall not be increased as a result of such access.</text></paragraph></subsection> <subsection id="H481AAFB5145D4961B3D552660046692E"><enum>(i)</enum><header>Regulations</header><text>The Commission may issue such regulations as are necessary to carry out this section.</text></subsection></section> <section id="HF41ED5C18B7F484696F0D5B1C3E16C34"><enum>374.</enum><header>Environmental reviews</header> <subsection id="H6F1713019A934C21BE65EC488F86AF52"><enum>(a)</enum><header>Compliance with NEPA</header><text>The issuance of a certificate of public convenience and necessity authorizing the construction and operation of any Alaska natural gas transportation project under section 373 shall be treated as a major Federal action significantly affecting the quality of the human environment within the meaning of section 102(2)(C) of the <act-name parsable-cite="NEPA69">National Environmental Policy Act of 1969</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/4332">42 U.S.C. 4332(2)(C)</external-xref>).</text></subsection> <subsection id="HB0EE99651E54423B9C8B48C3B3E62634"><enum>(b)</enum><header>Designation of lead agency</header> <paragraph id="HF5F70B8BFF7940B89CC9102B85D42E87"><enum>(1)</enum><header>In General</header><text>The Commission—</text> <subparagraph id="H6C1B2F51906A47F8B1A500B000FA2F86"><enum>(A)</enum><text>shall be the lead agency for purposes of complying with the <act-name parsable-cite="NEPA69">National Environmental Policy Act of 1969</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/4321">42 U.S.C. 4321 et seq.</external-xref>); and</text></subparagraph> <subparagraph id="HA9C1FEF267634EAC005CFDE93EEAEBB2"><enum>(B)</enum><text>shall be responsible for preparing the environmental impact statement required by section 102(2)(c) of that Act (42 U.S.C. 4332(2)(c)) with respect to an Alaska natural gas transportation project under section 373.</text></subparagraph></paragraph> <paragraph id="H5009322C9B5A4F21A32FA30081F0148E"><enum>(2)</enum><header>Consolidation of statements</header><text>In carrying out paragraph (1), the Commission shall prepare a single environmental impact statement, which shall consolidate the environmental reviews of all Federal agencies considering any aspect of the Alaska natural gas transportation project covered by the environmental impact statement.</text></paragraph></subsection> <subsection id="H3B8005D839F649E4AA62EFCC47B5F1F"><enum>(c)</enum><header>Other agencies</header> <paragraph id="H329362CF621642CF98EE3043DD756014"><enum>(1)</enum><header>In General</header><text>Each Federal agency considering an aspect of the construction and operation of an Alaska natural gas transportation project under section 373 shall—</text> <subparagraph id="HAD2D50C986044B759B041000DEE3A7F5"><enum>(A)</enum><text>cooperate with the Commission; and</text></subparagraph> <subparagraph id="H0CA9EF02C6CC4325AB85FE87138B3697"><enum>(B)</enum><text>comply with deadlines established by the Commission in the preparation of the environmental impact statement under this section.</text></subparagraph></paragraph> <paragraph id="H0B838D93175449AC95835D0327986E6F"><enum>(2)</enum><header>Satisfaction of NEPA requirements</header><text>The environmental impact statement prepared under this section shall be adopted by each Federal agency described in paragraph (1) in satisfaction of the responsibilities of the Federal agency under section 102(2)(C) of the <act-name parsable-cite="NEPA69">National Environmental Policy Act of 1969</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/4332">42 U.S.C. 4332(2)(C)</external-xref>) with respect to the Alaska natural gas transportation project covered by the environmental impact statement.</text></paragraph></subsection> <subsection id="HFF14B4E35E9A4315933C2C177076F01D"><enum>(d)</enum><header>Expedited process</header><text>The Commission shall—</text> <paragraph id="H377AD1AB4C6B4E79BE3E88005925DBE"><enum>(1)</enum><text>not later than 1 year after the Commission determines that the application under section 373 with respect to an Alaska natural gas transportation project is complete, issue a draft environmental impact statement under this section; and</text></paragraph> <paragraph id="HA26ACBC80DBC442397DEB12247C6DA12"><enum>(2)</enum><text>not later than 180 days after the date of issuance of the draft environmental impact statement, issue a final environmental impact statement, unless the Commission for good cause determines that additional time is needed.</text></paragraph></subsection></section> <section id="HEF315315AC00406393298C89E8A0ED0"><enum>375.</enum><header>Pipeline expansion</header> <subsection id="HD571A9DBBDFC4D5CBD1BE99B56EA249F"><enum>(a)</enum><header>Authority</header><text>With respect to any Alaska natural gas transportation project, on a request by 1 or more persons and after giving notice and an opportunity for a hearing, the Commission may order the expansion of the Alaska natural gas project if the Commission determines that such an expansion is required by the present and future public convenience and necessity.</text></subsection> <subsection id="HD598005745C340C2A004EDBB2B00E443"><enum>(b)</enum><header>Responsibilities of Commission</header><text>Before ordering an expansion under subsection (a), the Commission shall—</text> <paragraph id="HD7DDE0FCAED84CF5B345A1D254A189D9"><enum>(1)</enum><text>approve or establish rates for the expansion service that are designed to ensure the recovery, on an incremental or rolled-in basis, of the cost associated with the expansion (including a reasonable rate of return on investment);</text></paragraph> <paragraph id="HAB01685C66184AC3B98986D7B0E84E7E"><enum>(2)</enum><text>ensure that the rates do not require existing shippers on the Alaska natural gas transportation project to subsidize expansion shippers;</text></paragraph> <paragraph id="H0CB1F77E8B394E199EA979CB24B47EC3"><enum>(3)</enum><text>find that a proposed shipper will comply with, and the proposed expansion and the expansion of service will be undertaken and implemented based on, terms and conditions consistent with the tariff of the Alaska natural gas transportation project in effect as of the date of the expansion;</text></paragraph> <paragraph id="H36523E4DAC474A9C9FC14BAB64EE4B8"><enum>(4)</enum><text>find that the proposed facilities will not adversely affect the financial or economic viability of the Alaska natural gas transportation project;</text></paragraph> <paragraph id="HEE17D84419C741B697913DAEDB1B372"><enum>(5)</enum><text>find that the proposed facilities will not adversely affect the overall operations of the Alaska natural gas transportation project;</text></paragraph> <paragraph id="H7B5FC5C791A04C67A48700F7F3BCA917"><enum>(6)</enum><text>find that the proposed facilities will not diminish the contract rights of existing shippers to previously subscribed certificated capacity;</text></paragraph> <paragraph id="H5B0FECB6ADBA4B95ABD316FFA5735CE5"><enum>(7)</enum><text>ensure that all necessary environmental reviews have been completed; and</text></paragraph> <paragraph id="HC00C7205E78540509E81E1D8910FAC3"><enum>(8)</enum><text>find that adequate downstream facilities exist or are expected to exist to deliver incremental Alaska natural gas to market.</text></paragraph></subsection> <subsection id="H46A98A502F64463FA353AEE6A35FC1F3"><enum>(c)</enum><header>Requirement for a firm transportation Agreement</header><text>Any order of the Commission issued in accordance with this section shall be void unless the person requesting the order executes a firm transportation agreement with the Alaska natural gas transportation project within such reasonable period of time as the order may specify.</text></subsection> <subsection id="HA12B6B3B1DA64C23B611AD15B323A044"><enum>(d)</enum><header>Limitation</header><text>Nothing in this section expands or otherwise affects any authority of the Commission with respect to any natural gas pipeline located outside the State.</text></subsection> <subsection id="HD6642BB58D85450600233D6BBBFA00E2"><enum>(e)</enum><header>Regulations</header><text>The Commission may issue such regulations as are necessary to carry out this section.</text></subsection></section> <section id="H97D77F194FB74B28B9B8FA3AEB1291"><enum>376.</enum><header>Federal Coordinator</header> <subsection id="H8A7DAB63533241358814DE3032269BE6"><enum>(a)</enum><header>Establishment</header><text>There is established, as an independent office in the executive branch, the Office of the Federal Coordinator for Alaska Natural Gas Transportation Projects.</text></subsection> <subsection id="HC7A8588F54FF4C75A876E5058B4134C5"><enum>(b)</enum><header>Federal Coordinator</header> <paragraph id="HA744876809784D82B9ED167ECCE5F505"><enum>(1)</enum><header>Appointment</header><text>The Office shall be headed by a Federal Coordinator for Alaska Natural Gas Transportation Projects, who shall be appointed by the President, by and with the advice and consent of the Senate, to serve a term to last until 1 year following the completion of the project referred to in section 373.</text></paragraph> <paragraph id="H68E7365AFEE74A2695C4CF3DE266D48E"><enum>(2)</enum><header>Compensation</header><text>The Federal Coordinator shall be compensated at the rate prescribed for level III of the Executive Schedule (<external-xref legal-doc="usc" parsable-cite="usc/5/5314">5 U.S.C. 5314</external-xref>).</text></paragraph></subsection> <subsection id="H5BFAD6E0F0C9431DA386689260E79829"><enum>(c)</enum><header>Duties</header><text>The Federal Coordinator shall be responsible for—</text> <paragraph id="H5AC2C690F1044791A56C24C44DDB7E87"><enum>(1)</enum><text>coordinating the expeditious discharge of all activities by Federal agencies with respect to an Alaska natural gas transportation project; and</text></paragraph> <paragraph id="HA6C89A13C16949A287AB7021ED53F55D"><enum>(2)</enum><text>ensuring the compliance of Federal agencies with the provisions of this subtitle.</text></paragraph></subsection> <subsection id="HB3F2E65953A947178BD88EA401A2ED9"><enum>(d)</enum><header>Reviews and actions of other Federal agencies</header> <paragraph id="HF4D1AA1BD8854E75B242E6F7B5008989"><enum>(1)</enum><header>Expedited reviews and actions</header><text>All reviews conducted and actions taken by any Federal agency relating to an Alaska natural gas transportation project authorized under this section shall be expedited, in a manner consistent with completion of the necessary reviews and approvals by the deadlines under this subtitle.</text></paragraph> <paragraph id="HB3BBE80664A944F09EF2C1E7DC566E"><enum>(2)</enum><header>Prohibition of certain terms and conditions</header><text>No Federal agency may include in any certificate, right-of-way, permit, lease, or other authorization issued to an Alaska natural gas transportation project any term or condition that may be permitted, but is not required, by any applicable law if the Federal Coordinator determines that the term or condition would prevent or impair in any significant respect the expeditious construction and operation, or an expansion, of the Alaska natural gas transportation project.</text></paragraph> <paragraph id="H8B1C1503399B408BB48418AC00F33E51"><enum>(3)</enum><header>Prohibition of certain actions</header><text>Unless required by law, no Federal agency shall add to, amend, or abrogate any certificate, right-of-way, permit, lease, or other authorization issued to an Alaska natural gas transportation project if the Federal Coordinator determines that the action would prevent or impair in any significant respect the expeditious construction and operation, or an expansion, of the Alaska natural gas transportation project.</text></paragraph> <paragraph id="H3DD16BDD248B4AB89F4DAA0000ED83E5"><enum>(4)</enum><header>Limitation</header><text>The Federal Coordinator shall not have authority to—</text> <subparagraph id="H608F25067C4340609F7351460529FCBE"><enum>(A)</enum><text>override—</text> <clause id="H280C6E82B0F843589788A2DBB652C7D4"><enum>(i)</enum><text>the implementation or enforcement of regulations issued by the Commission under section 373; or</text></clause> <clause id="H114DFBADADC44B3E9E37644849E70085"><enum>(ii)</enum><text>an order by the Commission to expand the project under section 375; or</text></clause></subparagraph> <subparagraph id="H8E4CB21CDCFA41C7A28853B596880037"><enum>(B)</enum><text>impose any terms, conditions, or requirements in addition to those imposed by the Commission or any agency with respect to construction and operation, or an expansion of, the project.</text></subparagraph></paragraph></subsection> <subsection id="H9AA1B64D59824A988FFF71D1CD46D4A4"><enum>(e)</enum><header>State coordination</header> <paragraph id="H111A1EBD8525421087AEE768E3B4979B"><enum>(1)</enum><header>In General</header><text>The Federal Coordinator and the State shall enter into a joint surveillance and monitoring agreement similar to the agreement in effect during construction of the Trans-Alaska Pipeline, to be approved by the President and the Governor of the State, for the purpose of monitoring the construction of the Alaska natural gas transportation project.</text></paragraph> <paragraph id="H5A3729B5A8B74248B8086400DF591E4E"><enum>(2)</enum><header>Primary responsibility</header><text>With respect to an Alaska natural gas transportation project—</text> <subparagraph id="H2171282FA70840E19900009BBBEDCFD2"><enum>(A)</enum><text>the Federal Government shall have primary surveillance and monitoring responsibility in areas where the Alaska natural gas transportation project crosses Federal land or private land; and</text></subparagraph> <subparagraph id="HA3797B33B1764DF88249945C33BE0006"><enum>(B)</enum><text>the State government shall have primary surveillance and monitoring responsibility in areas where the Alaska natural gas transportation project crosses State land.</text></subparagraph></paragraph></subsection> <subsection id="H8E772475DD5A475695A251B1A0B9BF3B"><enum>(f)</enum><header>Transfer of Federal inspector functions and authority</header><text>On appointment of the Federal Coordinator by the President, all of the functions and authority of the Office of Federal Inspector of Construction for the Alaska Natural Gas Transportation System vested in the Secretary under section 3012(b) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/15/719e">15 U.S.C. 719e</external-xref> note; <external-xref legal-doc="public-law" parsable-cite="pl/102/486">Public Law 102–486</external-xref>), including all functions and authority described and enumerated in the Reorganization Plan No. 1 of 1979 (44 Fed. Reg. 33663), Executive Order No. 12142 of June 21, 1979 (44 Fed. Reg. 36927), and section 5 of the President’s decision, shall be transferred to the Federal Coordinator.</text></subsection> <subsection id="HDBBEBCDBE91147CD976D5EF216D33333"><enum>(g)</enum><header>Temporary authority</header><text>The functions, authorities, duties, and responsibilities of the Federal Coordinator shall be vested in the Secretary until the later of the appointment of the Federal Coordinator by the President, or 18 months after the date of enactment of this Act.</text></subsection></section> <section id="HABCBA71CB02541D5003400FC53007DDF"><enum>377.</enum><header>Judicial review</header> <subsection id="HDA632A3A779F45518FBCE29719FEDDD3"><enum>(a)</enum><header>Exclusive jurisdiction</header><text>Except for review by the Supreme Court on writ of certiorari, the United States Court of Appeals for the District of Columbia Circuit shall have original and exclusive jurisdiction to determine—</text> <paragraph id="HEB4F36C0E27E487581AA72CB13532274"><enum>(1)</enum><text>the validity of any final order or action (including a failure to act) of any Federal agency or officer under this subtitle;</text></paragraph> <paragraph id="HE7BE861EECF544C0A196481B6552147E"><enum>(2)</enum><text>the constitutionality of any provision of this subtitle, or any decision made or action taken under this subtitle; or</text></paragraph> <paragraph id="HCAF3D4A1DB204C8881CF2D2C22946D5F"><enum>(3)</enum><text>the adequacy of any environmental impact statement prepared under the <act-name parsable-cite="NEPA69">National Environmental Policy Act of 1969</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/4321">42 U.S.C. 4321 et seq.</external-xref>) with respect to any action under this subtitle.</text></paragraph></subsection> <subsection id="H0583CDAEBE674F54AB006012530004F7"><enum>(b)</enum><header>Deadline for filing claim</header><text>A claim arising under this subtitle may be brought not later than 60 days after the date of the decision or action giving rise to the claim.</text></subsection> <subsection id="H0153FB93F190498FBFA644304BC62277"><enum>(c)</enum><header>Expedited consideration</header><text>The United States Court of Appeals for the District of Columbia Circuit shall set any action brought under subsection (a) for expedited consideration, taking into account the national interest of enhancing national energy security by providing access to the significant gas reserves in Alaska needed to meet the anticipated demand for natural gas.</text></subsection> <subsection id="HB8359F63FC0143B5B4CB40DABDBEEC52"><enum>(d)</enum><header>Amendment of the Alaska Natural Gas Transportation Act of 1976</header><text>Section 10(c) of the Alaska Natural Gas Transportation Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/15/719h">15 U.S.C. 719h</external-xref>) is amended—</text> <paragraph id="HDAC75285A4304D4D85057B3EDC2125B7"><enum>(1)</enum><text>by striking <quote>(c)(1) A claim</quote> and inserting the following:</text> <quoted-block id="HB621E3123F884833A675D0C09489A1A"> <subsection id="H3343FD86E4D345D1A4AE88060039A14B"><enum>(c)</enum><header>Jurisdiction</header> <paragraph id="H5F1668E675A046FE9BE799A16B390042"><enum>(1)</enum><header>Special courts</header> <subparagraph id="H8E3E1E3C0FBC470D95E98482CFD3D55"><enum>(A)</enum><header>In General</header><text>A claim</text></subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H717FF44636B946D6BE8538FA5C472860"><enum>(2)</enum><text>by striking <quote>Such court shall have</quote> and inserting the following:</text> <quoted-block id="H39BB3685C7014A67AB74B5563848AA00"> <subparagraph id="H3AB7C9F0C3F14D6D872C47D163BCD67C"><enum>(B)</enum><header>Exclusive jurisdiction</header><text>The Special Court shall have</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H43806E3B58B24F5E9E813C79BE9D755B"><enum>(3)</enum><text>by inserting after paragraph (1) the following:</text> <quoted-block id="HC97CFF40B8354EC997009CC99E9F4080"> <paragraph id="H99F029BA113A48B7B6727448C1047586"><enum>(2)</enum><header>Expedited consideration</header><text>The Special Court shall set any action brought under this section for expedited consideration, taking into account the national interest described in section 2.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H1AB142F9FA1E419F81260052CDC9B6AF"><enum>(4)</enum><text>in paragraph (3), by striking <quote>(3) The enactment</quote> and inserting the following:</text> <quoted-block id="HC5C644B476DC4E6599AFF3A194A22714"> <paragraph id="H1B495841AA5D42468FFA9FC9A4D46FA1"><enum>(3)</enum><header>Environmental impact statements</header><text>The enactment</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section> <section id="H1EC6334E288C4489983655F1B164F4C"><enum>378.</enum><header>State jurisdiction over in-State delivery of natural gas</header> <subsection id="H694EB2589F8444858D28173B001D45EA"><enum>(a)</enum><header>Local distribution</header><text>Any facility receiving natural gas from an Alaska natural gas transportation project for delivery to consumers within the State—</text> <paragraph id="HBC658C3EEC3549ABA0005E4745EB3CA7"><enum>(1)</enum><text>shall be deemed to be a local distribution facility within the meaning of section 1(b) of the Natural Gas Act (<external-xref legal-doc="usc" parsable-cite="usc/15/717">15 U.S.C. 717(b)</external-xref>); and</text></paragraph> <paragraph id="H431BAD440F674695958673509BACC4A2"><enum>(2)</enum><text>shall not be subject to the jurisdiction of the Commission.</text></paragraph></subsection> <subsection id="HAD56BD14B92D4891BAD1BF8D014F33FC"><enum>(b)</enum><header>Additional pipelines</header><text>Except as provided in section 373(d), nothing in this subtitle shall preclude or otherwise affect a future natural gas pipeline that may be constructed to deliver natural gas to Fairbanks, Anchorage, Matanuska-Susitna Valley, or the Kenai peninsula or Valdez or any other site in the State for consumption within or distribution outside the State.</text></subsection> <subsection id="HA8C163CA5EFC41B3AEF9F4EDD30000E2"><enum>(c)</enum><header>Rate coordination</header> <paragraph id="HEBA69FBE3A354DD095C11558A93F9480"><enum>(1)</enum><header>In General</header><text>In accordance with the Natural Gas Act (<external-xref legal-doc="usc" parsable-cite="usc/15/717a">15 U.S.C. 717a et seq.</external-xref>), the Commission shall establish rates for the transportation of natural gas on any Alaska natural gas transportation project.</text></paragraph> <paragraph id="H079E874ACD94408298A5AD8352D6FC48"><enum>(2)</enum><header>Consultation</header><text>In carrying out paragraph (1), the Commission, in accordance with section 17(b) of the Natural Gas Act (<external-xref legal-doc="usc" parsable-cite="usc/15/717p">15 U.S.C. 717p(b)</external-xref>), shall consult with the State regarding rates (including rate settlements) applicable to natural gas transported on and delivered from the Alaska natural gas transportation project for use within the State.</text></paragraph></subsection></section> <section id="H5D666BFA30A947FBB6D152EEDCF0171C"><enum>379.</enum><header>Study of alternative means of construction</header> <subsection id="H78B6EC56BBF6455A82F912E6F19E3DAC"><enum>(a)</enum><header>Requirement of study</header><text>If no application for the issuance of a certificate or amended certificate of public convenience and necessity authorizing the construction and operation of an Alaska natural gas transportation project has been filed with the Commission by the date that is 18 months after the date of enactment of this Act, the Secretary shall conduct a study of alternative approaches to the construction and operation of such an Alaska natural gas transportation project.</text></subsection> <subsection id="HBE77A70666504D2C903F4483F57C3F37"><enum>(b)</enum><header>Scope of study</header><text>The study under subsection (a) shall take into consideration the feasibility of—</text> <paragraph id="HB303344AA6CD4D16AF3F2574721EE97B"><enum>(1)</enum><text>establishing a Federal Government corporation to construct an Alaska natural gas transportation project; and</text></paragraph> <paragraph id="H804E60252609468FA69105B0B58053E5"><enum>(2)</enum><text>securing alternative means of providing Federal financing and ownership (including alternative combinations of Government and private corporate ownership) of the Alaska natural gas transportation project.</text></paragraph></subsection> <subsection id="H1028E049D1944ADCA656B5CC11871082"><enum>(c)</enum><header>Consultation</header><text>In conducting the study under subsection (a), the Secretary shall consult with the Secretary of the Treasury and the Secretary of the Army (acting through the Chief of Engineers).</text></subsection> <subsection id="H46ABB588EC6941E89E3FB06C26E33BD0"><enum>(d)</enum><header>Report</header><text>On completion of any study under subsection (a), the Secretary shall submit to Congress a report that describes—</text> <paragraph id="H31AE9023240143F19FC7DF6FEDE7578F"><enum>(1)</enum><text>the results of the study; and</text></paragraph> <paragraph id="H84F5F1905E8F444DA9792096F555F286"><enum>(2)</enum><text>any recommendations of the Secretary (including proposals for legislation to implement the recommendations).</text></paragraph></subsection></section> <section id="H2280EB9C04E945FD8279490452109544"><enum>380.</enum><header>Clarification of angta status and authorities</header> <subsection id="H545B4AD45B10471BAE49907200E5D064"><enum>(a)</enum><header>Savings clause</header><text>Nothing in this subtitle affects—</text> <paragraph id="H9108C9796198409CA2C8C0785746C00"><enum>(1)</enum><text>any decision, certificate, permit, right-of-way, lease, or other authorization issued under section 9 of the Alaska Natural Gas Transportation Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/15/719g">15 U.S.C. 719g</external-xref>); or</text></paragraph> <paragraph id="H41BC1BEE40FA4904B22788123D7BD086"><enum>(2)</enum><text>any Presidential finding or waiver issued in accordance with that Act.</text></paragraph></subsection> <subsection id="H7EA4335B96724EABB9791DAECC4EFA09"><enum>(b)</enum><header>Clarification of authority to amend terms and conditions to meet current project requirements</header><text>Any Federal agency responsible for granting or issuing any certificate, permit, right-of-way, lease, or other authorization under section 9 of the Alaska Natural Gas Transportation Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/15/719g">15 U.S.C. 719g</external-xref>) may add to, amend, or rescind any term or condition included in the certificate, permit, right-of-way, lease, or other authorization to meet current project requirements (including the physical design, facilities, and tariff specifications), if the addition, amendment, or rescission—</text> <paragraph id="H5D39E622B2654E9EBA7210CDD03CA650"><enum>(1)</enum><text>would not compel any change in the basic nature and general route of the Alaska natural gas transportation system as designated and described in section 2 of the President’s decision; or</text></paragraph> <paragraph id="H70486C319D7B448089CAA1B5ED725214"><enum>(2)</enum><text>would not otherwise prevent or impair in any significant respect the expeditious construction and initial operation of the Alaska natural gas transportation system.</text></paragraph></subsection> <subsection id="HC67D44EBA13548AFBB7F00D086ED56F9"><enum>(c)</enum><header>Updated environmental reviews</header><text>The Secretary shall require the sponsor of the Alaska natural gas transportation system to submit such updated environmental data, reports, permits, and impact analyses as the Secretary determines are necessary to develop detailed terms, conditions, and compliance plans required by section 5 of the President’s decision.</text></subsection></section> <section id="H1683E211877F4C5D9B7F51A2026CE237"><enum>381.</enum><header>Sense of Congress concerning use of steel manufactured in North America negotiation of a project labor Agreement</header><text display-inline="no-display-inline">It is the sense of Congress that—</text> <paragraph id="HB64272B6C774405AAD06E5CF9FCEB323"><enum>(1)</enum><text>an Alaska natural gas transportation project would provide significant economic benefits to the United States and Canada; and</text></paragraph> <paragraph id="H15D1543FE4A444EEB48616F2BF35258F"><enum>(2)</enum><text>to maximize those benefits, the sponsors of the Alaska natural gas transportation project should make every effort to—</text> <subparagraph id="H9B44E635A55C4D4F9FFE00E1D1C1C638"><enum>(A)</enum><text>use steel that is manufactured in North America; and</text></subparagraph> <subparagraph id="HE2ADA1FE39894B9CB4C4D3C6E38DC54"><enum>(B)</enum><text>negotiate a project labor agreement to expedite construction of the pipeline.</text></subparagraph></paragraph></section> <section id="H91C4E125B93F49DFA52765532D848DF9"><enum>382.</enum><header>Sense of Congress and study concerning participation by small business concerns</header> <subsection id="HE0BD140E2D9341FBBD3325FE47314BAC"><enum>(a)</enum><header>Definition of small business concern</header><text>In this section, the term <term>small business concern</term> has the meaning given the term in section 3(a) of the <act-name parsable-cite="SBA">Small Business Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/15/632">15 U.S.C. 632(a)</external-xref>).</text></subsection> <subsection id="HB0F7C97B815F475AA7002CEF9050EF5C"><enum>(b)</enum><header>Sense of Congress</header><text>It is the sense of Congress that—</text> <paragraph id="H6B3B2951BF0C4341A6A71F41C1C7C299"><enum>(1)</enum><text>an Alaska natural gas transportation project would provide significant economic benefits to the United States and Canada; and</text></paragraph> <paragraph id="HB7EB248EC6E34516B292656494765BF6"><enum>(2)</enum><text>to maximize those benefits, the sponsors of the Alaska natural gas transportation project should maximize the participation of small business concerns in contracts and subcontracts awarded in carrying out the project.</text></paragraph></subsection> <subsection id="H74169EC707B845C197A448E8008151D"><enum>(c)</enum><header>Study</header> <paragraph id="H149F225467D44C83964658AF60357220"><enum>(1)</enum><header>In General</header><text>The Comptroller General of the United States shall conduct a study to determine the extent to which small business concerns participate in the construction of oil and gas pipelines in the United States.</text></paragraph> <paragraph id="HB5C5607CB7F940DB82AF07CA3C629F7C"><enum>(2)</enum><header>Report</header><text>Not later that 1 year after the date of enactment of this Act, the Comptroller General shall submit to Congress a report that describes results of the study under paragraph (1).</text></paragraph> <paragraph id="H02D81B3391D9482C87B9F76442CB4167"><enum>(3)</enum><header>Updates</header><text>The Comptroller General shall—</text> <subparagraph id="H054D48C554BB46CF8CFEB161862D9667"><enum>(A)</enum><text>update the study at least once every 5 years until construction of an Alaska natural gas transportation project is completed; and</text></subparagraph> <subparagraph id="HB6691C8E485D438A98798FAEECB669BA"><enum>(B)</enum><text>on completion of each update, submit to Congress a report containing the results of the update.</text></subparagraph></paragraph></subsection></section> <section id="H77746C2BB41E497285FA9B10B93002DC"><enum>383.</enum><header>Alaska pipeline construction training Program</header> <subsection id="HFDFBFF758F764937BC473F1B04039FC2"><enum>(a)</enum><header>Program</header> <paragraph id="HC45A83EB421D4EB485E33414CDE23400"><enum>(1)</enum><header>Establishment</header><text>The Secretary of Labor (in this section referred to as the <quote>Secretary</quote>) shall make grants to the Alaska Workforce Investment Board—</text> <subparagraph id="H13DC2E5FC5DA425A0098C11823390325"><enum>(A)</enum><text>to recruit and train adult and dislocated workers in Alaska, including Alaska Natives, in the skills required to construct and operate an Alaska gas pipeline system; and</text></subparagraph> <subparagraph id="H9FE079D6166E4F45BB20B000A1F29F0"><enum>(B)</enum><text>for the design and construction of a training facility to be located in Fairbanks, Alaska, to support an Alaska gas pipeline training program.</text></subparagraph></paragraph> <paragraph id="HC23E88ADA07042190036221B00DCA1DA"><enum>(2)</enum><header>Coordination with existing programs</header><text>The training program established with the grants authorized under paragraph (1) shall be consistent with the vision and goals set forth in the State of Alaska Unified Plan, as developed pursuant to the Workforce Investment Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/29/2801">29 U.S.C. 2801 et seq.</external-xref>).</text></paragraph></subsection> <subsection id="HE175BB02149945A4ABA8F2D7B2CB9E7"><enum>(b)</enum><header>Requirements for grants</header><text>The Secretary shall make a grant under subsection (a) only if—</text> <paragraph id="H8074851BE13D4BAF909635009E9D1347"><enum>(1)</enum><text>the Governor of the State of Alaska requests the grant funds and certifies in writing to the Secretary that there is a reasonable expectation that the construction of the Alaska natural gas pipeline system will commence by the date that is 2 years after the date of the certification; and</text></paragraph> <paragraph id="H57875BDE89B84B10001CD00596891994"><enum>(2)</enum><text>the Secretary of Energy concurs in writing to the Secretary with the certification made under paragraph (1) after considering—</text> <subparagraph id="H305A596F924E4DC290123C44B6F7BE96"><enum>(A)</enum><text>the status of necessary Federal and State permits;</text></subparagraph> <subparagraph id="HD99C43CA0790459488B736D6DEE5C898"><enum>(B)</enum><text>the availability of financing for the Alaska natural gas pipeline project; and</text></subparagraph> <subparagraph id="H93C7084A0185497D81A3F248C91592DF"><enum>(C)</enum><text>other relevant factors.</text></subparagraph></paragraph></subsection> <subsection id="H09013215801249CF9455FA06C475407B"><enum>(c)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary to carry out this section $20,000,000. Not more than 15 percent of the funds may be used for the facility described in subsection (a)(1)(B).</text></subsection></section> <section id="H546FB9DB8CF8428689D448A5ADB329DD"><enum>384.</enum><header>Sense of Congress concerning natural gas demand</header><text display-inline="no-display-inline">It is the sense of Congress that—</text> <paragraph id="H3D77C89775E442408C5476E0CF727044"><enum>(1)</enum><text>North American demand for natural gas will increase dramatically over the course of the next several decades;</text></paragraph> <paragraph id="HCE1824CB71EA4D149638373F1920682B"><enum>(2)</enum><text>both the Alaska Natural Gas Pipeline and the Mackenzie Delta Natural Gas project in Canada will be necessary to help meet the increased demand for natural gas in North America;</text></paragraph> <paragraph id="HFC85AE86FA1E4381A97B3B60842D01B8"><enum>(3)</enum><text>Federal and State officials should work together with officials in Canada to ensure both projects can move forward in a mutually beneficial fashion;</text></paragraph> <paragraph id="HBB7DEE8071F54E11A193E9D162E5EAA0"><enum>(4)</enum><text>Federal and State officials should acknowledge that the smaller scope, fewer permitting requirements, and lower cost of the Mackenzie Delta project means it will most likely be completed before the Alaska Natural Gas Pipeline;</text></paragraph> <paragraph id="HC7883CD4EBAD4F848EF010D59D44D2EA"><enum>(5)</enum><text>natural gas production in the 48 contiguous States and Canada will not be able to meet all domestic demand in the coming decades; and</text></paragraph> <paragraph id="H7750766978B147698C4905E49127352"><enum>(6)</enum><text>as a result, natural gas delivered from Alaskan North Slope will not displace or reduce the commercial viability of Canadian natural gas produced from the Mackenzie Delta or production from the 48 contiguous States.</text></paragraph></section> <section id="HF77913C6C03C4EDC96FB96A04BF34BFF"><enum>385.</enum><header>Sense of Congress concerning Alaskan ownership</header><text display-inline="no-display-inline">It is the sense of Congress that—</text> <paragraph id="H4B2C37460100453F9676BB8012059BF3"><enum>(1)</enum><text>Alaska Native Regional Corporations, companies owned and operated by Alaskans, and individual Alaskans should have the opportunity to own shares of the Alaska natural gas pipeline in a way that promotes economic development for the State; and</text></paragraph> <paragraph id="HE884627F51A54BFBA9946BA738E63770"><enum>(2)</enum><text>to facilitate economic development in the State, all project sponsors should negotiate in good faith with any willing Alaskan person that desires to be involved in the project.</text></paragraph></section> <section id="HFD62CD6D9EBA47B2A605931B51058EBC"><enum>386.</enum><header>Loan guarantees</header> <subsection id="HA0B7671544D14667B5CDF76D7EF7600"><enum>(a)</enum><header>Authority</header> <paragraph display-inline="yes-display-inline" id="HF77FA096C8D14AB6A34DC1FB9221FE69"><enum>(1)</enum><text>The Secretary may enter into agreements with 1 or more holders of a certificate of public convenience and necessity issued under section 373(b) of this Act or section 9 of the Alaska Natural Gas Transportation Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/15/719g">15 U.S.C. 719g</external-xref>) to issue Federal guarantee instruments with respect to loans and other debt obligations for a qualified infrastructure project.</text></paragraph> <paragraph indent="up1" id="HB47FE8D7CDCE44DB00FA49549E884E11"><enum>(2)</enum><text>Subject to the requirements of this section, the Secretary may also enter into agreements with 1 or more owners of the Canadian portion of a qualified infrastructure project to issue Federal guarantee instruments with respect to loans and other debt obligations for a qualified infrastructure project as though such owner were a holder described in paragraph (1).</text></paragraph> <paragraph indent="up1" id="H7EBCA4DC174F410386D39FF4CFFDE9A3"><enum>(3)</enum><text>The authority of the Secretary to issue Federal guarantee instruments under this section for a qualified infrastructure project shall expire on the date that is 2 years after the date on which the final certificate of public convenience and necessity (including any Canadian certificates of public convenience and necessity) is issued for the project. A final certificate shall be considered to have been issued when all certificates of public convenience and necessity have been issued that are required for the initial transportation of commercially economic quantities of natural gas from Alaska to the continental United States.</text></paragraph></subsection> <subsection id="H014587FC62CF450290176EC0AD53A6F4"><enum>(b)</enum><header>Conditions</header> <paragraph display-inline="yes-display-inline" id="H29E3555C816F44A0834DA6E974BBBA7E"><enum>(1)</enum><text>The Secretary may issue a Federal guarantee instrument for a qualified infrastructure project only after a certificate of public convenience and necessity under section 373(b) of this Act or an amended certificate under section 9 of the Alaska Natural Gas Transportation Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/15/719g">15 U.S.C. 719g</external-xref>) has been issued for the project.</text></paragraph> <paragraph indent="up1" id="H420B28E202D344D8A481881279AF229F"><enum>(2)</enum><text>The Secretary may issue a Federal guarantee instrument under this section for a qualified infrastructure project only if the loan or other debt obligation guaranteed by the instrument has been issued by an eligible lender.</text></paragraph> <paragraph indent="up1" id="H983094095728435DA3FBD4567123A00"><enum>(3)</enum><text>The Secretary shall not require as a condition of issuing a Federal guarantee instrument under this section any contractual commitment or other form of credit support of the sponsors (other than equity contribution commitments and completion guarantees), or any throughput or other guarantee from prospective shippers greater than such guarantees as shall be required by the project owners.</text></paragraph></subsection> <subsection id="HF6611C591E904E25930906807B8B79FE"><enum>(c)</enum><header>Limitations on amounts</header> <paragraph display-inline="yes-display-inline" id="HB69E1986DB664C6A938E2612003DADC0"><enum>(1)</enum><text>The amount of loans and other debt obligations guaranteed under this section for a qualified infrastructure project shall not exceed 80 percent of the total capital costs of the project, including interest during construction.</text></paragraph> <paragraph indent="up1" id="HF823664CCB1F4566A5476BF708EB8139"><enum>(2)</enum><text>The principal amount of loans and other debt obligations guaranteed under this section shall not exceed, in the aggregate, $18,000,000,000, which amount shall be indexed for United States dollar inflation from the date of enactment of this Act, as measured by the Consumer Price Index.</text></paragraph></subsection> <subsection id="H2E85FEAE765F4EC900E4B32E1DAF6880"><enum>(d)</enum><header>Loan terms and fees</header> <paragraph display-inline="yes-display-inline" id="H4E82D16527F246E2AA00F27DE386F2A7"><enum>(1)</enum><text>The Secretary may issue Federal guarantee instruments under this section that take into account repayment profiles and grace periods justified by project cash flows and project-specific considerations. The term of any loan guaranteed under this section shall not exceed 30 years.</text></paragraph> <paragraph indent="up1" id="HBBFD0F04796D4D7D8CCE629FB9DB1154"><enum>(2)</enum><text>An eligible lender may assess and collect from the borrower such other fees and costs associated with the application and origination of the loan or other debt obligation as are reasonable and customary for a project finance transaction in the oil and gas sector.</text></paragraph></subsection> <subsection id="H3859653374444713979DF506CFB4C7B5"><enum>(e)</enum><header>Regulations</header><text>The Secretary may issue regulations to carry out this section.</text></subsection> <subsection id="HD4B01E50C70B4010B3EEDF9E9554DA77"><enum>(f)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated such sums as may be necessary to cover the cost of loan guarantees under this section, as defined by section 502(5) of the <act-name parsable-cite="FCRA90">Federal Credit Reform Act of 1990</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a(5)</external-xref>). Such sums shall remain available until expended.</text></subsection> <subsection id="H7BADAB904CA648E5AD0424447CE1A794"><enum>(g)</enum><header>Definitions</header><text>In this section, the following definitions apply:</text> <paragraph id="H10D0B1AA15FC46BF983E544C03D7E4D7"><enum>(1)</enum><text>The term <term>Consumer Price Index</term> means the Consumer Price Index for all-urban consumers, United States city average, as published by the Bureau of Labor Statistics, or if such index shall cease to be published, any successor index or reasonable substitute thereof.</text></paragraph> <paragraph id="HAA24FA251647487CB793FA6F89BAB0BD"><enum>(2)</enum><text>The term <term>eligible lender</term> means any non-Federal qualified institutional buyer (as defined by <external-xref legal-doc="cfr" parsable-cite="cfr/17/230.144">section 230.144A(a)</external-xref> of title 17, Code of Federal Regulations (or any successor regulation), known as Rule 144A(a) of the Securities and Exchange Commission and issued under the <act-name parsable-cite="SA33">Securities Act of 1933</act-name>), including—</text> <subparagraph id="H0C326E6465A246D88D909DB95D75C613"><enum>(A)</enum><text>a qualified retirement plan (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/4974">section 4974(c)</external-xref> of the Internal Revenue Code of 1986 (<external-xref legal-doc="usc" parsable-cite="usc/26/4974">26 U.S.C. 4974(c)</external-xref>) that is a qualified institutional buyer; and</text></subparagraph> <subparagraph id="H0A0FBB8FBEAF4CCE91378DE443E475B7"><enum>(B)</enum><text>a governmental plan (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414(d)</external-xref> of the Internal Revenue Code of 1986 (<external-xref legal-doc="usc" parsable-cite="usc/26/414">26 U.S.C. 414(d)</external-xref>) that is a qualified institutional buyer.</text></subparagraph></paragraph> <paragraph id="H2AD58373A22D4B0B9E32A6A9CFE5E193"><enum>(3)</enum><text>The term <term>Federal guarantee instrument</term> means any guarantee or other pledge by the Secretary to pledge the full faith and credit of the United States to pay all of the principal and interest on any loan or other debt obligation entered into by a holder of a certificate of public convenience and necessity.</text></paragraph> <paragraph id="H51AE20C0024542A79157119E094FDBB7"><enum>(4)</enum><text>The term <term>qualified infrastructure project</term> means an Alaskan natural gas transportation project consisting of the design, engineering, finance, construction, and completion of pipelines and related transportation and production systems (including gas treatment plants), and appurtenances thereto, that are used to transport natural gas from the Alaska North Slope to the continental United States.</text></paragraph></subsection></section></subtitle> <enum>IV</enum><header>Coal</header> <subtitle id="H0D724DA81B21460DB100F0C86085C1A4"><enum>A</enum><header>Clean Coal Power Initiative</header> <section id="HA88C489183844B038C3C318F9DD01B70" section-type="subsequent-section"><enum>401.</enum><header>Authorization of appropriations</header> <subsection id="H3069BBA14CE349F48C1C006FEDD563E"><enum>(a)</enum><header>Clean coal power initiative</header><text>There are authorized to be appropriated to the Secretary of Energy (referred to in this title as the <quote>Secretary</quote>) to carry out the activities authorized by this subtitle $200,000,000 for each of fiscal years 2004 through 2012, to remain available until expended.</text></subsection> <subsection id="H9312E4AB10CD4D8F976FF1BE6B7E984E"><enum>(b)</enum><header>Report</header><text>The Secretary shall submit to Congress the report required by this subsection not later than March 31, 2005. The report shall include, with respect to subsection (a), a 10-year plan containing—</text> <paragraph id="H546C96D49700446C8463FA00D4009504"><enum>(1)</enum><text>a detailed assessment of whether the aggregate funding levels provided under subsection (a) are the appropriate funding levels for that program;</text></paragraph> <paragraph id="H8EFBBC25F194437781381DD3884F2EE"><enum>(2)</enum><text>a detailed description of how proposals will be solicited and evaluated, including a list of all activities expected to be undertaken;</text></paragraph> <paragraph id="H027CD1B5E00E44A1A1F36EA919ABB876"><enum>(3)</enum><text>a detailed list of technical milestones for each coal and related technology that will be pursued; and</text></paragraph> <paragraph id="H5C4B89A4134D4951A281267D5C374558"><enum>(4)</enum><text>a detailed description of how the program will avoid problems enumerated in General Accounting Office reports on the Clean Coal Technology Program, including problems that have resulted in unspent funds and projects that failed either financially or scientifically.</text></paragraph></subsection></section> <section id="HC4BCA9B1DE9B4AF2A0B3C9B18A311F8"><enum>402.</enum><header>Project criteria</header> <subsection id="H77FC637AF0C74F2DB502AA56B936E071"><enum>(a)</enum><header>In general</header><text>The Secretary shall not provide funding under this subtitle for any project that does not advance efficiency, environmental performance, and cost competitiveness well beyond the level of technologies that are in commercial service or have been demonstrated on a scale that the Secretary determines is sufficient to demonstrate that commercial service is viable as of the date of enactment of this Act.</text></subsection> <subsection id="H08DF4BDCD9B44DAE897C1D76801FB6B4"><enum>(b)</enum><header>Technical criteria for clean coal power initiative</header> <paragraph id="HF3E7CE93B69C4BA1860010C064408C40"><enum>(1)</enum><header>Gasification projects</header> <subparagraph id="H0BF890017CCE4879B946F1E4E38628F"><enum>(A)</enum><header>In general</header><text>In allocating the funds made available under section 401(a), the Secretary shall ensure that at least 60 percent of the funds are used only for projects on coal-based gasification technologies, including gasification combined cycle, gasification fuel cells, gasification coproduction, and hybrid gasification/combustion.</text></subparagraph> <subparagraph id="H9B1B255D3D6444F284D7936F8FE4BCAE"><enum>(B)</enum><header>Technical milestones</header><text>The Secretary shall periodically set technical milestones specifying the emission and thermal efficiency levels that coal gasification projects under this subtitle shall be designed, and reasonably expected, to achieve. The technical milestones shall become more restrictive during the life of the program. The Secretary shall set the periodic milestones so as to achieve by 2020 coal gasification projects able—</text> <clause id="H2CB8E381648140D4B8EF923724BDDEB9"><enum>(i)</enum><text>to remove 99 percent of sulfur dioxide;</text></clause> <clause id="HDFDC152F96E84E2297C486EE00243EFB"><enum>(ii)</enum><text>to emit not more than .05 lbs of NO<subscript>x</subscript> per million Btu;</text></clause> <clause id="HF7C5310889BD46C68FDAC61D6318CA43"><enum>(iii)</enum><text>to achieve substantial reductions in mercury emissions; and</text></clause> <clause id="H8D7FDEF35AC04C23960120EB619CC7C3"><enum>(iv)</enum><text>to achieve a thermal efficiency of—</text> <subclause id="H94DE2B887C194AA18D6DE0C9823C377C"><enum>(I)</enum><text>60 percent for coal of more than 9,000 Btu;</text></subclause> <subclause id="H94ADA66FA27E465EA65C39C01C598116"><enum>(II)</enum><text>59 percent for coal of 7,000 to 9,000 Btu; and</text></subclause> <subclause id="H9C48CDDC71E84DADAC74EC37ABFD424D"><enum>(III)</enum><text>50 percent for coal of less than 7,000 Btu.</text></subclause></clause></subparagraph></paragraph> <paragraph id="H714FFA8C0BCA4A40003067871B7D7232"><enum>(2)</enum><header>Other projects</header><text>The Secretary shall periodically set technical milestones and ensure that up to 40 percent of the funds appropriated pursuant to section 401(a) are used for projects not described in paragraph (1). The milestones shall specify the emission and thermal efficiency levels that projects funded under this paragraph shall be designed to and reasonably expected to achieve. The technical milestones shall become more restrictive during the life of the program. The Secretary shall set the periodic milestones so as to achieve by 2010 projects able—</text> <subparagraph id="H76C91D9939914406001CE2524244F5B1"><enum>(A)</enum><text>to remove 97 percent of sulfur dioxide;</text></subparagraph> <subparagraph id="HBC420CEB58C3495189FD9546894BCD4B"><enum>(B)</enum><text>to emit no more than .08 lbs of NO<subscript>x</subscript> per million Btu;</text></subparagraph> <subparagraph id="H160B158AEDD14FDCA9BAE75565E18FE"><enum>(C)</enum><text>to achieve substantial reductions in mercury emissions; and</text></subparagraph> <subparagraph id="HAF5C02473C2E4E90AE7E5230B5029517"><enum>(D)</enum><text>to achieve a thermal efficiency of—</text> <clause id="H13FB104FBEF041678F11F4FE7B8C206D"><enum>(i)</enum><text>45 percent for coal of more than 9,000 Btu;</text></clause> <clause id="HD4B6C730A81E4A2FA2E1E8D693D79713"><enum>(ii)</enum><text>44 percent for coal of 7,000 to 9,000 Btu; and</text></clause> <clause id="HDC52751F1B00486FBA38ED2F000479D"><enum>(iii)</enum><text>40 percent for coal of less than 7,000 Btu.</text></clause></subparagraph></paragraph> <paragraph id="H8559CB5297074B47858CE2511B905E95"><enum>(3)</enum><header>Consultation</header><text>Before setting the technical milestones under paragraphs (1)(B) and (2), the Secretary shall consult with the Administrator of the Environmental Protection Agency and interested entities, including coal producers, industries using coal, organizations to promote coal or advanced coal technologies, environmental organizations, and organizations representing workers.</text></paragraph> <paragraph id="H00D33DF68834419A9B6D96ABB15DA0BB"><enum>(4)</enum><header>Existing units</header><text>In the case of projects at units in existence on the date of enactment of this Act, in lieu of the thermal efficiency requirements set forth in paragraph (1)(B)(iv) and (2)(D), the milestones shall be designed to achieve an overall thermal design efficiency improvement, compared to the efficiency of the unit as operated, of not less than—</text> <subparagraph id="HCB1D1304D06340B0ADCED717129050F2"><enum>(A)</enum><text>7 percent for coal of more than 9,000 Btu;</text></subparagraph> <subparagraph id="H73C4322EEDC3469496E6D13E00AA9CC8"><enum>(B)</enum><text>6 percent for coal of 7,000 to 9,000 Btu; or</text></subparagraph> <subparagraph id="H8C60CAC74CC34CAE9F4E4B6F261FAA73"><enum>(C)</enum><text>4 percent for coal of less than 7,000 Btu.</text></subparagraph></paragraph> <paragraph id="HA38779BC11804A4BBFAFAEB8EBE903D2"><enum>(5)</enum><header>Permitted uses</header><text>In carrying out this subtitle, the Secretary may fund projects that include, as part of the project, the separation and capture of carbon dioxide.</text></paragraph></subsection> <subsection id="HDF257CD991384FDC94F5753500A614EF"><enum>(c)</enum><header>Financial criteria</header><text>The Secretary shall not provide a funding award under this subtitle unless the recipient documents to the satisfaction of the Secretary that—</text> <paragraph id="H7ED450153EFC449C816BC68138D96629"><enum>(1)</enum><text>the award recipient is financially viable without the receipt of additional Federal funding;</text></paragraph> <paragraph id="H02EC732DF4A4487194B8E944C1AE3FDD"><enum>(2)</enum><text>the recipient will provide sufficient information to the Secretary to enable the Secretary to ensure that the award funds are spent efficiently and effectively; and</text></paragraph> <paragraph id="H69F01D05853A46F5A92D15FC95326995"><enum>(3)</enum><text>a market exists for the technology being demonstrated or applied, as evidenced by statements of interest in writing from potential purchasers of the technology.</text></paragraph></subsection> <subsection id="HBC53EF1D342F457986326C9D410029C2"><enum>(d)</enum><header>Financial assistance</header><text>The Secretary shall provide financial assistance to projects that meet the requirements of subsections (a), (b), and (c) and are likely to—</text> <paragraph id="H8460F49CFC3A45A9B1009B0000C00859"><enum>(1)</enum><text>achieve overall cost reductions in the utilization of coal to generate useful forms of energy;</text></paragraph> <paragraph id="H6F02D60B6F194E608F0091F813B6AE86"><enum>(2)</enum><text>improve the competitiveness of coal among various forms of energy in order to maintain a diversity of fuel choices in the United States to meet electricity generation requirements; and</text></paragraph> <paragraph id="H2A2BF3482C9E40FE87E6DFBB654BE75F"><enum>(3)</enum><text>demonstrate methods and equipment that are applicable to 25 percent of the electricity generating facilities, using various types of coal, that use coal as the primary feedstock as of the date of enactment of this Act.</text></paragraph></subsection> <subsection id="H178C3F918A584D8294A824D5150303A0"><enum>(e)</enum><header>Federal share</header><text>The Federal share of the cost of a coal or related technology project funded by the Secretary under this subtitle shall not exceed 50 percent.</text></subsection> <subsection id="H2F9CC16F619840B2BC0082400012AA57"><enum>(f)</enum><header>Applicability</header><text>No technology, or level of emission reduction, shall be treated as adequately demonstrated for purposes of section 111 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7411">42 U.S.C. 7411</external-xref>), achievable for purposes of section 169 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7479">42 U.S.C. 7479</external-xref>), or achievable in practice for purposes of section 171 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7501">42 U.S.C. 7501</external-xref>) solely by reason of the use of such technology, or the achievement of such emission reduction, by 1 or more facilities receiving assistance under this subtitle.</text></subsection></section> <section id="H35680B6A2B8F4F68B343515FD86D806C"><enum>403.</enum><header>Report</header><text display-inline="no-display-inline">Not later than 1 year after the date of enactment of this Act, and once every 2 years thereafter through 2012, the Secretary, in consultation with other appropriate Federal agencies, shall submit to Congress a report describing—</text> <paragraph id="HC4EA1A44882F4C788FFD7953376FFAB8"><enum>(1)</enum><text>the technical milestones set forth in section 402 and how those milestones ensure progress toward meeting the requirements of subsections (b)(1)(B) and (b)(2) of section 402; and</text></paragraph> <paragraph id="H6961CC8148394F5CBAF5856848667BD9"><enum>(2)</enum><text>the status of projects funded under this subtitle.</text></paragraph></section> <section id="H4581A822BE7140E598AF151B8697ED41"><enum>404.</enum><header>Clean coal centers of excellence</header><text display-inline="no-display-inline">As part of the program authorized in section 401, the Secretary shall award competitive, merit-based grants to universities for the establishment of Centers of Excellence for Energy Systems of the Future. The Secretary shall provide grants to universities that show the greatest potential for advancing new clean coal technologies.</text></section></subtitle> <subtitle id="H9E3EAF648849433190E370E2FCC54592"><enum>B</enum><header>Clean Power Projects</header> <section id="H17185AA52A0D4A86B45CAA64E8F92E60"><enum>411.</enum><header>Coal technology loan</header><text display-inline="no-display-inline">There are authorized to be appropriated to the Secretary $125,000,000 to provide a loan to the owner of the experimental plant constructed under United States Department of Energy cooperative agreement number DE-FC-22-91PC90544 on such terms and conditions as the Secretary determines, including interest rates and upfront payments.</text></section> <section id="H386AADA300854BECBD08B59BE9AE0069"><enum>412.</enum><header>Coal gasification</header><text display-inline="no-display-inline">The Secretary is authorized to provide loan guarantees for a project to produce energy from a plant using integrated gasification combined cycle technology of at least 400 megawatts in capacity that produces power at competitive rates in deregulated energy generation markets and that does not receive any subsidy (direct or indirect) from ratepayers.</text></section> <section id="H03853D885FB64414B644BD60113F4951"><enum>413.</enum><header>Integrated gasification combined cycle technology</header><text display-inline="no-display-inline">The Secretary is authorized to provide loan guarantees for a project to produce energy from a plant using integrated gasification combined cycle technology located in a taconite-producing region of the United States that is entitled under the law of the State in which the plant is located to enter into a long-term contract approved by a State Public Utility Commission to sell at least 450 megawatts of output to a utility.</text></section> <section id="H79C2ADF15F5C4BF7A79D976039BF993E"><enum>414.</enum><header>Petroleum coke gasification</header><text display-inline="no-display-inline">The Secretary is authorized to provide loan guarantees for at least 1 petroleum coke gasification polygeneration project.</text></section> <section id="HDCC6781FE8EB4B279E219B54C6149DC8"><enum>415.</enum><header>Integrated coal/renewable energy system</header><text display-inline="no-display-inline">The Secretary is authorized, subject to the availability of appropriations, to provide loan guarantees for a project to produce energy from coal of less than 7000 btu/lb using appropriate advanced integrated gasification combined cycle technology, including repowering of existing facilities, that is combined with wind and other renewable sources, minimizes and offers the potential to sequester carbon dioxide emissions, and provides a ready source of hydrogen for near-site fuel cell demonstrations. The facility may be built in stages, combined output shall be at least 200 megawatts at successively more competitive rates, and the facility shall be located in the Upper Great Plains. Section 402(b) technical criteria apply, and the Federal cost share shall not exceed 50 percent. The loan guarantees provided under this section do not preclude the facility from receiving an allocation for investment tax credits under <external-xref legal-doc="usc" parsable-cite="usc/26/48A">section 48A</external-xref> of the Internal Revenue Code of 1986. Utilizing this investment tax credit does not prohibit the use of other Clean Coal Program funding.</text></section> <section id="HDA8E4225A20A4895A3901916EA64A325"><enum>416.</enum><header>Electron scrubbing demonstration</header><text display-inline="no-display-inline">The Secretary shall use $5,000,000 from amounts appropriated to initiate, through the Chicago Operations Office, a project to demonstrate the viability of high-energy electron scrubbing technology on commercial-scale electrical generation using high-sulfur coal.</text></section></subtitle> <subtitle id="HC129A2F306DB4020BF010600EF05EF72"><enum>C</enum><header>Federal Coal Leases</header> <section id="HCA0A60A1F11A414C9B0504003EEAD501"><enum>421.</enum><header>Repeal of the 160-acre limitation for coal leases</header><text display-inline="no-display-inline">Section 3 of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/203">30 U.S.C. 203</external-xref>) is amended—</text> <paragraph id="H3C95B164BB314476B7E94ECAECAB63DC"><enum>(1)</enum><text>in the first sentence—</text> <subparagraph id="H6B25B54EE4074D7EB56F385513C698DD"><enum>(A)</enum><text>by striking <quote>Any person</quote> and inserting <quote>(a) Any person</quote>;</text></subparagraph> <subparagraph id="HFB1EDCE39F964CF100A9055F78D9A9A9"><enum>(B)</enum><text>by inserting a comma after <quote>may</quote>; and</text></subparagraph> <subparagraph id="H8D53E42306F548CE90288FE7E147CE7"><enum>(C)</enum><text>by striking <quote>upon</quote> and all that follows through the period and inserting the following:</text> <quoted-block style="OLC" id="H36B651DD9C72430EA2D39820E0372431" display-inline="yes-display-inline"><text display-inline="yes-display-inline">upon a finding by the Secretary that the lease—</text> <paragraph id="H1BB3D0AFC63E40E2BC3DBD22D794EF37"><enum>(1)</enum><text>would be in the interest of the United States;</text></paragraph> <paragraph id="H781275ED09CC43DB85C77D44ADA8D9AF"><enum>(2)</enum><text>would not displace a competitive interest in the land; and</text></paragraph> <paragraph id="H72BEFB61BD6D43AB8B1B2277D2A0E24"><enum>(3)</enum><text>would not include land or deposits that can be developed as part of another potential or existing operation;</text><continuation-text continuation-text-level="subsection">secure modifications of the original coal lease by including additional coal land or coal deposits contiguous or cornering to those embraced in the lease, but in no event shall the total area added by any modifications to an existing coal lease exceed 1280 acres, or add acreage larger than the acreage in the original lease.</continuation-text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="HDDE1E750324F4708BDF0F3ABC1846142"><enum>(2)</enum><text>in the second sentence, by striking <quote>The Secretary</quote> and inserting the following:</text> <quoted-block id="HF853887FA48742128B63ACDEF4AD1E4" style="OLC"> <subsection id="H7DFA4B88918B45238D049B288C7F0930"><enum>(b)</enum><text>The Secretary</text></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H79DF612AC81147388E73C5CE27827422"><enum>(3)</enum><text>in the third sentence, by striking <quote>The minimum</quote> and inserting the following:</text> <quoted-block id="H78B3AB19C3014C55AE3C57EBF0EE4800" style="OLC"> <subsection id="H996EB84A86C7418A885C27DDF63D9BAE"><enum>(c)</enum><text>The minimum</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H3BC5B08D042E442BA1EAB90071BF5DCF"><enum>422.</enum><header>Mining plans</header><text display-inline="no-display-inline">Section 2(d)(2) of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/202a">30 U.S.C. 202a(2)</external-xref>) is amended—</text> <paragraph id="H4D07C77D469A48148696EFF913E6CAA3"><enum>(1)</enum><text>by inserting <quote>(A)</quote> after <quote>(2)</quote>; and</text></paragraph> <paragraph id="H8BF30446503A4647B184E776EED21700"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block id="H3EF43F164EE841D0A4EAF0F355D0399B" style="OLC"> <subparagraph id="H2E44370F49844F9D95738D427000ACD1" indent="up2"><enum>(B)</enum><text>The Secretary may establish a period of more than 40 years if the Secretary determines that the longer period—</text> <clause id="H14817C48256D420CB0F263CA2222614C"><enum>(i)</enum><text>will ensure the maximum economic recovery of a coal deposit; or</text></clause> <clause id="H1EDFA9899DA740DCA2B300C004F1AA1D"><enum>(ii)</enum><text>the longer period is in the interest of the orderly, efficient, or economic development of a coal resource.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H9CD7EAEF92F84019B7E7AFCA6C4EDE1E"><enum>423.</enum><header>Payment of advance royalties under coal leases</header><text display-inline="no-display-inline">Section 7(b) of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/207">30 U.S.C. 207(b)</external-xref>) is amended to read as follows:</text> <quoted-block id="H4A1B9DE424F54C52B9AEEB493F13A495" style="OLC"> <subsection id="H85B54BD66F134C00AB758B7564238C37"><enum>(b)</enum> <paragraph id="HC12C7C6ED47642ADA322E4F7B39CE0" display-inline="yes-display-inline"><enum>(1)</enum><text>Each lease shall be subjected to the condition of diligent development and continued operation of the mine or mines, except in a case in which operations under the lease are interrupted by strikes, the elements, or casualties not attributable to the lessee.</text></paragraph> <paragraph id="HE0132CFF2ECF44BCBD1C6923D173A2B1" indent="up1"><enum>(2)</enum> <subparagraph id="H243703B9580B483EB7786C2B0947CB19" display-inline="yes-display-inline"><enum>(A)</enum><text>The Secretary of the Interior may suspend the condition of continued operation upon the payment of advance royalties, if the Secretary determines that the public interest will be served by the suspension.</text></subparagraph> <subparagraph id="H422F056084DA47C48044D57D8D6C61B1" indent="up1"><enum>(B)</enum><text>Advance royalties required under subparagraph (A) shall be computed based on—</text> <clause id="H045B18564F7240538EEED99BE9EAAD61"><enum>(i)</enum><text>the average price for coal sold in the spot market from the same region during the last month of each applicable continued operation year; or</text></clause> <clause id="H4EE121B017714F378B3B8153E6361B36"><enum>(ii)</enum><text>by using other methods established by the Secretary of the Interior to capture the commercial value of coal,</text></clause><continuation-text continuation-text-level="subparagraph">and based on commercial quantities, as defined by regulation by the Secretary of the Interior.</continuation-text></subparagraph> <subparagraph id="H1104C4A47AC54D569C6E42C34500222B" indent="up1"><enum>(C)</enum><text>The aggregate number of years during the initial and any extended term of any lease for which advance royalties may be accepted in lieu of the condition of continued operation shall not exceed 20.</text></subparagraph></paragraph> <paragraph id="H4664CD4716614301BE7B938BAD66958B" indent="up1"><enum>(3)</enum><text>The amount of any production royalty paid for any year shall be reduced (but not below 0) by the amount of any advance royalties paid under the lease, to the extent that the advance royalties have not been used to reduce production royalties for a prior year.</text></paragraph> <paragraph id="H6436FE85D908424E9D5D90D122234158" indent="up1"><enum>(4)</enum><text>The Secretary may, upon 6 months’ notice to a lessee, cease to accept advance royalties in lieu of the requirement of continued operation.</text></paragraph> <paragraph id="HC2BDB3F5E8154F00B72F04D18F91E2DA" indent="up1"><enum>(5)</enum><text>Nothing in this subsection affects the requirement contained in the second sentence of subsection (a) relating to commencement of production at the end of 10 years.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H16A0B4BE7E614FB99F8607D5912B3996"><enum>424.</enum><header>Elimination of deadline for submission of coal lease operation and reclamation plan</header><text display-inline="no-display-inline">Section 7(c) of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/207">30 U.S.C. 207(c)</external-xref>) is amended in the first sentence by striking <quote>and not later than three years after a lease is issued,</quote>.</text></section> <section id="H80EFAF39E87B44BF9DCADEFEB1D100E5"><enum>425.</enum><header>Amendment relating to financial assurances with respect to bonus bids</header><text display-inline="no-display-inline">Section 2(a) of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/201">30 U.S.C. 201(a)</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H5533A4FF9B05484EAD7BC5F0E3D0D27C" style="OLC"> <paragraph id="H60CC73BF04BD4C18A1F9F7224FAD70C7" indent="up1"><enum>(4)</enum> <subparagraph id="H42B1DE13877144A18FB78E002D5D97AD" display-inline="yes-display-inline"><enum>(A)</enum><text>The Secretary shall not require a surety bond or any other financial assurance to guarantee payment of deferred bonus bid installments with respect to any coal lease issued on a cash bonus bid to a lessee or successor in interest having a history of a timely payment of noncontested coal royalties and advanced coal royalties in lieu of production (where applicable) and bonus bid installment payments.</text></subparagraph> <subparagraph id="HD3828DACD8DE4FECA38F45C48FDBE0F5" indent="up1"><enum>(B)</enum><text>The Secretary may waive any requirement that a lessee provide a surety bond or other financial assurance for a coal lease issued before the date of the enactment of the Energy Policy Act of 2003 only if the Secretary determines that the lessee has a history of making timely payments referred to in subparagraph (A).</text></subparagraph></paragraph> <paragraph id="HF95E4B479CEB4062B2B19C971CC7E049" indent="up1"><enum>(5)</enum><text>Notwithstanding any other provision of law, if the lessee under a coal lease fails to pay any installment of a deferred cash bonus bid within 10 days after the Secretary provides written notice that payment of the installment is past due—</text> <subparagraph id="H36401FC09ADE41378E2746BFB302F62"><enum>(A)</enum><text>the lease shall automatically terminate; and</text></subparagraph> <subparagraph id="HC4F43C32FB8A44969D4D5D50101ED9BA"><enum>(B)</enum><text>any bonus payments already made to the United States with respect to the lease shall not be returned to the lessee or credited in any future lease sale.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H4A32C533DAD640C582D5DFBCB091473F"><enum>426.</enum><header>Inventory requirement</header> <subsection id="HA487E86CCBDD4710992049D5BA08CCF"><enum>(a)</enum><header>Review of assessments</header> <paragraph id="H7BA743399DDD49469668958BFB92C867"><enum>(1)</enum><header>In general</header><text>The Secretary of the Interior, in consultation with the Secretary of Agriculture and the Secretary, shall review coal assessments and other available data to identify—</text> <subparagraph id="HB808BA38A2624B18B13DE607EAD47316"><enum>(A)</enum><text>public lands, other than National Park lands, with coal resources;</text></subparagraph> <subparagraph id="H7565C55C6A5247CA972838484C431845"><enum>(B)</enum><text>the extent and nature of any restrictions or impediments to the development of coal resources on public lands identified under subparagraph (A); and</text></subparagraph> <subparagraph id="H73202A135BF34663832041A7495FEBFE"><enum>(C)</enum><text>with respect to areas of such lands for which sufficient data exists, resources of compliant coal and supercompliant coal.</text></subparagraph></paragraph> <paragraph id="H6C952E8FF83842E59C6C901DE596F7D"><enum>(2)</enum><header>Definitions</header><text>In this subsection:</text> <subparagraph id="H27E92A5181314AC482EF90876F22AC1B"><enum>(A)</enum><header>Compliant coal</header><text>The term <quote>compliant coal</quote> means coal that contains not less than 1.0 and not more than 1.2 pounds of sulfur dioxide per million Btu.</text></subparagraph> <subparagraph id="HE298F37F0E9E4A50989CCFBFED28345"><enum>(B)</enum><header>Supercompliant coal</header><text>The term <quote>supercompliant coal</quote> means coal that contains less than 1.0 pounds of sulfur dioxide per million Btu.</text></subparagraph></paragraph></subsection> <subsection id="H52FEF42236164D9DA4388489FEF2727D"><enum>(b)</enum><header>Completion and updating of the inventory</header><text>The Secretary of the Interior—</text> <paragraph id="H7146EBA65476463BBFD9E164A8FB36E5"><enum>(1)</enum><text>shall complete the inventory under subsection (a)(1) by not later than 2 years after the date of the enactment of this Act; and</text></paragraph> <paragraph id="HD09363995E73445EB6000032CF965069"><enum>(2)</enum><text>shall update the inventory as the availability of data and developments in technology warrant.</text></paragraph></subsection> <subsection id="HE3EBB871550245448B440150DCED7D2F"><enum>(c)</enum><header>Report</header><text>The Secretary of the Interior shall submit to Congress, and make publicly available—</text> <paragraph id="H8C055DB15BBD4E9D910024E31E5D8201"><enum>(1)</enum><text>a report containing the inventory under this section by not later than 2 years after the effective date of this section; and</text></paragraph> <paragraph id="HAF3C526FDF9F4D10AE9C3BA5FF9EBD07"><enum>(2)</enum><text>each update of that inventory.</text></paragraph></subsection></section> <section id="H6563C5C46CC546FDA8801BD15E48E993"><enum>427.</enum><header>Application of amendments</header><text display-inline="no-display-inline">The amendments made by this subtitle apply—</text> <paragraph id="H08AA1633DC2F4761864FDF5613006D63"><enum>(1)</enum><text>with respect to any coal lease issued on or after the date of enactment of this Act; and</text></paragraph> <paragraph id="H595BA5CE628845F38634009C0010A0D6"><enum>(2)</enum><text>with respect to any coal lease issued before the date of enactment of this Act, upon the earlier of—</text> <subparagraph id="HF81B70A6ACC049378827FEBB938B5B8"><enum>(A)</enum><text>the date of readjustment of the lease as provided for by section 7(a) of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/207">30 U.S.C. 207(a)</external-xref>); or</text></subparagraph> <subparagraph id="H842FF3A8CB7B4D378CFBE4568C109BF5"><enum>(B)</enum><text>the date the lessee requests such application.</text></subparagraph></paragraph></section></subtitle> <subtitle id="H4BB71034B70944E782285E7CF0D4D5A2"><enum>D</enum><header>Coal and related programs</header> <section id="HF4BF30563ACF481ABDA35FD46260AEF2"><enum>441.</enum><header>Clean air coal program</header> <subsection id="HCD8BB67BBE5148BDB05CDB899BB91DFF"><enum>(a)</enum><header>Amendment</header><text>The Energy Policy Act of 1992 is amended by adding the following new title at the end thereof:</text> <quoted-block id="H6CCCEC96C8E04EA49276E9CB75CA4ECA"> <title id="HAE8999E7B7D148FDB1441BDBD610075"><enum>XXXI</enum><header>Clean air coal program</header> <section id="H50DA6B0A714849CEB4466D72AE959B6"><enum>3101.</enum><header>Findings; purposes; definitions</header> <subsection id="H79E66F60C47E475C971DFBE204309369"><enum>(a)</enum><header>Findings</header><text>The Congress finds that—</text> <paragraph id="HB4B8FDC06F7549A38200092896BD7132"><enum>(1)</enum><text>new environmental regulations present additional challenges for coal-fired electrical generation in the private marketplace; and</text></paragraph> <paragraph id="H2C7563180E1F4A2A999F2EB795F8A14D"><enum>(2)</enum><text>the Department of Energy, in cooperation with industry, has already fully developed and commercialized several new clean-coal technologies that will allow the clean use of coal.</text></paragraph></subsection> <subsection id="H7068A5932ECB46DDA0A2683FF06E44E3"><enum>(b)</enum><header>Purposes</header><text>The purposes of this title are to—</text> <paragraph id="HE5151755330D4902BC4CB610BD296EE6"><enum>(1)</enum><text>promote national energy policy and energy security, diversity, and economic competitiveness benefits that result from the increased use of coal;</text></paragraph> <paragraph id="HA74C98C6599F40D6905CC819FAADA200"><enum>(2)</enum><text>mitigate financial risks, reduce the cost, and increase the marketplace acceptance of the new clean coal technologies; and</text></paragraph> <paragraph id="H19091580FBE2418EA8004046F8873C86"><enum>(3)</enum><text>advance the deployment of pollution control equipment to meet the current and future obligations of coal-fired generation units regulated under the <act-name parsable-cite="CAA">Clean Air Act</act-name> (42 U.S.C. 7402 and following).</text></paragraph></subsection></section> <section id="H694F961B55E448B4B60015FC1ED680A7"><enum>3102.</enum><header>Authorization of program</header><text display-inline="no-display-inline">The Secretary shall carry out a program to facilitate production and generation of coal-based power and the installation of pollution control equipment.</text></section> <section id="HA836A9A8D8B74B479321E6006877A69F"><enum>3103.</enum><header>Authorization of appropriations</header> <subsection id="HD6204739B74A491CA202EAF7AE638FFF"><enum>(a)</enum><header>Pollution control projects</header><text>There are authorized to be appropriated to the Secretary $300,000,000 for fiscal year 2005, $100,000,000 for fiscal year 2006, $40,000,000 for fiscal year 2007, $30,000,000 for fiscal year 2008, and $30,000,000 for fiscal year 2009, to remain available until expended, for carrying out the program for pollution control projects, which may include—</text> <paragraph id="H8D9D498A56664E3793443710F6DA68D"><enum>(1)</enum><text>pollution control equipment and processes for the control of mercury air emissions;</text></paragraph> <paragraph id="HCE5AF022183F4372ADAE00E8B27DFAFA"><enum>(2)</enum><text>pollution control equipment and processes for the control of nitrogen dioxide air emissions or sulfur dioxide emissions;</text></paragraph> <paragraph id="H823BAC8A09414FCFAC98C5FED74E4165"><enum>(3)</enum><text>pollution control equipment and processes for the mitigation or collection of more than one pollutant;</text></paragraph> <paragraph id="HB5DA70466B0940CCAD6554A1E512BC3B"><enum>(4)</enum><text>advanced combustion technology for the control of at least two pollutants, including mercury, particulate matter, nitrogen oxides, and sulfur dioxide, which may also be designed to improve the energy efficiency of the unit; and</text></paragraph> <paragraph id="HFAC95A9D89004F12B6511E9215B2EF88"><enum>(5)</enum><text>advanced pollution control equipment and processes designed to allow use of the waste byproducts or other byproducts of the equipment or an electrical generation unit designed to allow the use of byproducts.</text></paragraph><continuation-text continuation-text-level="subsection">Funds appropriated under this subsection which are not awarded before fiscal year 2011 may be applied to projects under subsection (b), in addition to amounts authorized under subsection (b).</continuation-text></subsection> <subsection id="H77D6EEE9B8B24F36A0D34FAFD87CAB6"><enum>(b)</enum><header>Generation projects</header><text>There are authorized to be appropriated to the Secretary $150,000,000 for fiscal year 2006, $250,000,000 for each of the fiscal years 2007 through 2011, and $100,000,000 for fiscal year 2012, to remain available until expended, for generation projects and air pollution control projects. Such projects may include—</text> <paragraph id="H4914147D41C94A9DA29D3648EDDB547"><enum>(1)</enum><text>coal-based electrical generation equipment and processes, including gasification combined cycle or other coal-based generation equipment and processes;</text></paragraph> <paragraph id="HDC8CD91E151F4CEC81451E9EF81DA24D"><enum>(2)</enum><text>associated environmental control equipment, that will be cost-effective and that is designed to meet anticipated regulatory requirements;</text></paragraph> <paragraph id="H437A57A7EC7C44119B5794DDFC987160"><enum>(3)</enum><text>coal-based electrical generation equipment and processes, including gasification fuel cells, gasification coproduction, and hybrid gasification/combustion projects; and</text></paragraph> <paragraph id="H73CF57E6FDF8449082AD40E287CAFC39"><enum>(4)</enum><text>advanced coal-based electrical generation equipment and processes, including oxidation combustion techniques, ultra-supercritical boilers, and chemical looping, which the Secretary determines will be cost-effective and could substantially contribute to meeting anticipated environmental or energy needs.</text></paragraph></subsection> <subsection id="HD138B2E1FF2F4AE8AB726E13166F2E5C"><enum>(c)</enum><header>Limitation</header><text>Funds placed at risk during any fiscal year for Federal loans or loan guarantees pursuant to this title may not exceed 30 percent of the total funds obligated under this title.</text></subsection></section> <section id="H581F92336DD64049B5C8F808CA80474"><enum>3104.</enum><header>Air pollution control project criteria</header><text display-inline="no-display-inline">The Secretary shall pursuant to authorizations contained in section 3103 provide funding for air pollution control projects designed to facilitate compliance with Federal and State environmental regulations, including any regulation that may be established with respect to mercury.</text></section> <section id="HA061508C452B4E50A87F27310088B9F4"><enum>3105.</enum><header>Criteria for generation projects</header> <subsection id="H8BA6B130D0754FBF986C56E20077FA84"><enum>(a)</enum><header>Criteria</header><text>The Secretary shall establish criteria on which selection of individual projects described in section 3103(b) should be based. The Secretary may modify the criteria as appropriate to reflect improvements in equipment, except that the criteria shall not be modified to be less stringent. These selection criteria shall include—</text> <paragraph id="HC5C72045DF114B289ED9B495FECC4E91"><enum>(1)</enum><text>prioritization of projects whose installation is likely to result in significant air quality improvements in nonattainment air quality areas;</text></paragraph> <paragraph id="HDEF08D3438564FD7A84E183F004955AF"><enum>(2)</enum><text>prioritization of projects that result in the repowering or replacement of older, less efficient units;</text></paragraph> <paragraph id="HF941D80D44AB4CB09CF7CD90C878BB"><enum>(3)</enum><text>documented broad interest in the procurement of the equipment and utilization of the processes used in the projects by electrical generator owners or operators;</text></paragraph> <paragraph id="HC7EFCE80E0C8499AA2B6C1DC26164395"><enum>(4)</enum><text>equipment and processes beginning in 2005 through 2010 that are projected to achieve an thermal efficiency of—</text> <subparagraph id="H2150E7445E9948C486A1632B94B37F68"><enum>(A)</enum><text>40 percent for coal of more than 9,000 Btu per pound based on higher heating values;</text></subparagraph> <subparagraph id="HD211F1F9DAAD446F80C22922916500F9"><enum>(B)</enum><text>38 percent for coal of 7,000 to 9,000 Btu per pound based on higher heating values; and</text></subparagraph> <subparagraph id="H72361436A7154C37B9EC1771B03B0237"><enum>(C)</enum><text>36 percent for coal of less than 7,000 Btu per pound based on higher heating values,</text></subparagraph><continuation-text continuation-text-level="paragraph">except that energy used for coproduction or cogeneration shall not be counted in calculating the thermal efficiency under this paragraph; and</continuation-text></paragraph> <paragraph id="HC0DB76EC527B4D3DB8717E5E2EAE8358"><enum>(5)</enum><text>equipment and processes beginning in 2011 and 2012 that are projected to achieve an thermal efficiency of—</text> <subparagraph id="H0D42500EAD194060B6D171F29658DBDD"><enum>(A)</enum><text>45 percent for coal of more than 9,000 Btu per pound based on higher heating values;</text></subparagraph> <subparagraph id="HFEDF00F29F4842CEAEB1D46D825A2EE"><enum>(B)</enum><text>44 percent for coal of 7,000 to 9,000 Btu per pound based on higher heating values; and</text></subparagraph> <subparagraph id="H530BC601CDB7441A9885C89C6904A0FF"><enum>(C)</enum><text>40 percent for coal of less than 7,000 Btu per pound based on higher heating values,</text></subparagraph><continuation-text continuation-text-level="paragraph">except that energy used for coproduction or cogeneration shall not be counted in calculating the thermal efficiency under this paragraph.</continuation-text></paragraph></subsection> <subsection id="HA458C037947C439784CADAF8EF91D98C"><enum>(b)</enum><header>Selection</header> <paragraph display-inline="yes-display-inline" id="H68B89BAEDF854C9580E3FD44FAC2D1D"><enum>(1)</enum><text>In selecting the projects, up to 25 percent of the projects selected may be either coproduction or cogeneration or other gasification projects, but at least 25 percent of the projects shall be for the sole purpose of electrical generation, and priority should be given to equipment and projects less than 600 MW to foster and promote standard designs.</text></paragraph> <paragraph indent="up1" id="H819FEE7622114EDAA0ACD8791849CEE"><enum>(2)</enum><text>The Secretary shall give priority to projects that have been developed and demonstrated that are not yet cost competitive, and for coal energy generation projects that advance efficiency, environmental performance, or cost competitiveness significantly beyond the level of pollution control equipment that is in operation on a full scale.</text></paragraph></subsection></section> <section id="H16B34EB959E44741AE7CFA534D0098B"><enum>3106.</enum><header>Financial criteria</header> <subsection id="H6DD865608B84412086103536E585C93F"><enum>(a)</enum><header>In general</header><text>The Secretary shall only provide financial assistance to projects that meet the requirements of sections 3103 and 3104 and are likely to—</text> <paragraph id="H50648665147E490E914571FDBAA112E0"><enum>(1)</enum><text>achieve overall cost reductions in the utilization of coal to generate useful forms of energy; and</text></paragraph> <paragraph id="H9A722A33DCF44C968B29B463EDC06628"><enum>(2)</enum><text>improve the competitiveness of coal in order to maintain a diversity of domestic fuel choices in the United States to meet electricity generation requirements.</text></paragraph></subsection> <subsection id="H553AFB7C2A5B4F5EB9166D9918BB55D2"><enum>(b)</enum><header>Conditions</header><text>The Secretary shall not provide a funding award under this title unless—</text> <paragraph id="HEFB9AF9016254D2D00997CD20056AB4B"><enum>(1)</enum><text>the award recipient is financially viable without the receipt of additional Federal funding; and</text></paragraph> <paragraph id="HC1ACB52A3F8A478193D00358C4260CC"><enum>(2)</enum><text>the recipient provides sufficient information to the Secretary for the Secretary to ensure that the award funds are spent efficiently and effectively.</text></paragraph></subsection> <subsection id="H09068989F5F949CEAAD4FF01EC1492B"><enum>(c)</enum><header>Equal access</header><text>The Secretary shall, to the extent practical, utilize cooperative agreement, loan guarantee, and direct Federal loan mechanisms designed to ensure that all electrical generation owners have equal access to these technology deployment incentives. The Secretary shall develop and direct a competitive solicitation process for the selection of technologies and projects under this title.</text></subsection></section> <section id="HE4EBB3AC6E8F46B38F00D808BBAE5BF"><enum>3107.</enum><header>Federal share</header><text display-inline="no-display-inline">The Federal share of the cost of a coal or related technology project funded by the Secretary under this title shall not exceed 50 percent. For purposes of this title, Federal funding includes only appropriated funds.</text></section> <section id="HDFDC04D260C144CF90E4DB98F1EE895C"><enum>3108.</enum><header>Applicability</header><text display-inline="no-display-inline">No technology, or level of emission reduction, shall be treated as adequately demonstrated for purposes of section 111 of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7411">42 U.S.C. 7411</external-xref>), achievable for purposes of section 169 of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7479">42 U.S.C. 7479</external-xref>), or achievable in practice for purposes of section 171 of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7501">42 U.S.C. 7501</external-xref>) solely by reason of the use of such technology, or the achievement of such emission reduction, by one or more facilities receiving assistance under this title.</text></section>. (b)
Table of Contents Amendment
The table of contents of the Energy Policy Act of 1992 is amended by adding at the end the following: TITLE XXXI Clean air coal program Sec. 3101. Findings; purposes; definitions Sec. 3102. Authorization of program Sec. 3103. Authorization of appropriations Sec. 3104. Air pollution control project criteria Sec. 3105. Criteria for generation projects Sec. 3106. Financial criteria Sec. 3107. Federal share Sec. 3108. Applicability. <enum>V</enum><header>Indian energy</header> <section id="H5E1D23ADEA8941F88CCD2D00FF59E5D6"><enum>501.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Indian Tribal Energy Development and Self-Determination Act of 2004</short-title></quote>.</text></section> <section id="HBE8338732A52406A893EBE317D5FA18"><enum>502.</enum><header>Office of Indian Energy Policy and Programs</header> <subsection id="HAB2D7AA012474B2E91BDFB5244836FA1"><enum>(a)</enum><header>In general</header><text>Title II of the Department of Energy Organization Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7131">42 U.S.C. 7131 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block style="traditional" id="H3E910410EB3F47D1B45892BC665E89F6"> <section id="HB96E5DE70E1E415B8025837417CC78DE"><enum>217.</enum><header>Office of Indian Energy Policy and Programs</header> <subsection display-inline="yes-display-inline" id="H29E3909E8ED94C4486F474A6C0CB56AF"><enum>(a)</enum><header>Establishment</header><text>There is established within the Department an Office of Indian Energy Policy and Programs (referred to in this section as the <quote>Office</quote>). The Office shall be headed by a Director, who shall be appointed by the Secretary and compensated at a rate equal to that of level IV of the Executive Schedule under <external-xref legal-doc="usc" parsable-cite="usc/5/5315">section 5315</external-xref> of title 5, United States Code.</text></subsection> <subsection id="HEA0A3FB328914843BE2C28FC19DAD458"><enum>(b)</enum><header>Duties of Director</header><text>The Director, in accordance with Federal policies promoting Indian self-determination and the purposes of this Act, shall provide, direct, foster, coordinate, and implement energy planning, education, management, conservation, and delivery programs of the Department that—</text> <paragraph id="H7166A5BD2CC1400DB33FF3F44B6918D"><enum>(1)</enum><text>promote Indian tribal energy development, efficiency, and use;</text></paragraph> <paragraph id="HAC1C4E6A3E164798B73D427ECC8EF2B1"><enum>(2)</enum><text>reduce or stabilize energy costs;</text></paragraph> <paragraph id="H33AF35C317B348AE9582B842FC6905F"><enum>(3)</enum><text>enhance and strengthen Indian tribal energy and economic infrastructure relating to natural resource development and electrification; and</text></paragraph> <paragraph id="H2A66355B63E44F41A8C3CDA8B9BCFB5C"><enum>(4)</enum><text>bring electrical power and service to Indian land and the homes of tribal members located on Indian lands or acquired, constructed, or improved (in whole or in part) with Federal funds.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HCA751906A67240FAA3BA23BCF900073F"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H0B735344FC08414B928D30E18E4570A"><enum>(1)</enum><text>The table of contents of the Department of Energy Organization Act (42 U.S.C. prec. 7101) is amended—</text> <subparagraph id="H8E439BCD855749B7A293098500D5C0A"><enum>(A)</enum><text>in the item relating to section 209, by striking <quote>Section</quote> and inserting <quote>Sec.</quote>; and</text></subparagraph> <subparagraph id="H7EF8E47F174A4B85ACE7AA1580827B86"><enum>(B)</enum><text>by striking the items relating to sections 213 through 216 and inserting the following:</text> <quoted-block style="OLC" id="H3DDDD7D7E7DF4054AAAF52608DE51F"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 213. Establishment of policy for National Nuclear Security Administration</toc-entry> <toc-entry level="section">Sec. 214. Establishment of security, counterintelligence, and intelligence policies</toc-entry> <toc-entry level="section">Sec. 215. Office of Counterintelligence</toc-entry> <toc-entry level="section">Sec. 216. Office of Intelligence</toc-entry> <toc-entry level="section">Sec. 217. Office of Indian Energy Policy and Programs</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H3A2EA87E6D7B4C388E273B7ECF3BFBB4"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/5/5315">Section 5315</external-xref> of title 5, United States Code, is amended by inserting <quote>Director, Office of Indian Energy Policy and Programs, Department of Energy.</quote> after <quote>Inspector General, Department of Energy.</quote>.</text></paragraph></subsection></section> <section id="HD8AE9E72ED75461E8B74C0EA971C00D4"><enum>503.</enum><header>Indian energy</header> <subsection id="H6738C453D28941C780B4766E00B7BDF"><enum>(a)</enum><header>In general</header><text>Title XXVI of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/25/3501">25 U.S.C. 3501 et seq.</external-xref>) is amended to read as follows:</text> <quoted-block id="HD5CA419309BE46CDB9F75891DDC8B09"> <title id="HCDC609328E4C45A2B13950AE335C1857"><enum>XXVI</enum><header>Indian energy</header> <section id="HCF29374C0CF44060B6596374EEA5DF19"><enum>2601.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this title:</text> <paragraph id="H48B373E31FF84AD7A72D58E3C8BEBE69"><enum>(1)</enum><text>The term <term>Director</term> means the Director of the Office of Indian Energy Policy and Programs, Department of Energy.</text></paragraph> <paragraph id="H7D809ECDE4E645A7B12C3916FD753D3C"><enum>(2)</enum><text>The term <term>Indian land</term> means—</text> <subparagraph id="HDD05FB1E27F84C5B8CA1BB179CA15300"><enum>(A)</enum><text>any land located within the boundaries of an Indian reservation, pueblo, or rancheria;</text></subparagraph> <subparagraph id="H913827A145554418B6BEDAFBAD4B4E50"><enum>(B)</enum><text>any land not located within the boundaries of an Indian reservation, pueblo, or rancheria, the title to which is held—</text> <clause id="HA698AE33916042ED82B7424CD9E200C5"><enum>(i)</enum><text>in trust by the United States for the benefit of an Indian tribe or an individual Indian;</text></clause> <clause id="H26FB96B4AF0643BE8C1B1E4832D5549F"><enum>(ii)</enum><text>by an Indian tribe or an individual Indian, subject to restriction against alienation under laws of the United States; or</text></clause> <clause id="H92D485FFFBFF46999BB3D6361C594033"><enum>(iii)</enum><text>by a dependent Indian community; and</text></clause></subparagraph> <subparagraph id="H78945A13A9DC4C988633D5ADF2787CC8"><enum>(C)</enum><text>land that is owned by an Indian tribe and was conveyed by the United States to a Native Corporation pursuant to the Alaska Native Claims Settlement Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1601">43 U.S.C. 1601 et seq.</external-xref>), or that was conveyed by the United States to a Native Corporation in exchange for such land.</text></subparagraph></paragraph> <paragraph id="HEB363885D3CE43929DCC45A14017C242"><enum>(3)</enum><text>The term <term>Indian reservation</term> includes—</text> <subparagraph id="H7A3757ADEED846069D2042263453B559"><enum>(A)</enum><text>an Indian reservation in existence in any State or States as of the date of enactment of this paragraph;</text></subparagraph> <subparagraph id="H4FED1C25C9544103896EAA8BF25C7D75"><enum>(B)</enum><text>a public domain Indian allotment; and</text></subparagraph> <subparagraph id="HC05159DEFC5E43EAB7BD038BDBA9557C"><enum>(C)</enum><text>a dependent Indian community located within the borders of the United States, regardless of whether the community is located—</text> <clause id="H1940C079708849E3B36800D9007200C1"><enum>(i)</enum><text>on original or acquired territory of the community; or</text></clause> <clause id="H95187CD1D50C46029E0097E431590374"><enum>(ii)</enum><text>within or outside the boundaries of any particular State.</text></clause></subparagraph></paragraph> <paragraph id="H5A2C2B7059454C93AEE10015FA5C31FE"><enum>(4)</enum><text>The term <term>Indian tribe</term> has the meaning given the term in section 4 of the <act-name parsable-cite="ISDA">Indian Self-Determination and Education Assistance Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/25/450b">25 U.S.C. 450b</external-xref>), except that the term <term>Indian tribe</term>, for the purpose of paragraph (11) and sections 2603(b)(3) and 2604, shall not include any Native Corporation.</text></paragraph> <paragraph id="HDDF8F65DA6214780BC93A8725440FBCB"><enum>(5)</enum><text>The term <term>integration of energy resources</term> means any project or activity that promotes the location and operation of a facility (including any pipeline, gathering system, transportation system or facility, or electric transmission or distribution facility) on or near Indian land to process, refine, generate electricity from, or otherwise develop energy resources on, Indian land.</text></paragraph> <paragraph id="H875E869EA6704ED792F3B59B3861B3B0"><enum>(6)</enum><text>The term <term>Native Corporation</term> has the meaning given the term in section 3 of the Alaska Native Claims Settlement Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1602">43 U.S.C. 1602</external-xref>).</text></paragraph> <paragraph id="H50B9AB30958245FC9EA5CE0091CB00AD"><enum>(7)</enum><text>The term <term>organization</term> means a partnership, joint venture, limited liability company, or other unincorporated association or entity that is established to develop Indian energy resources.</text></paragraph> <paragraph id="H4E64799E232147A393D6848B93C7D6FC"><enum>(8)</enum><text>The term <term>Program</term> means the Indian energy resource development program established under section 2602(a).</text></paragraph> <paragraph id="H807F2E2FA33C4C36841BA26308F9423C"><enum>(9)</enum><text>The term <term>Secretary</term> means the Secretary of the Interior.</text></paragraph> <paragraph id="HB6CB9523169B4542AA550490EAB289E"><enum>(10)</enum><text>The term <term>tribal energy resource development organization</term> means an organization of 2 or more entities, at least 1 of which is an Indian tribe, that has the written consent of the governing bodies of all Indian tribes participating in the organization to apply for a grant, loan, or other assistance authorized by section 2602.</text></paragraph> <paragraph id="H43738B663B944AD4A85628888EDED05"><enum>(11)</enum><text>The term <term>tribal land</term> means any land or interests in land owned by any Indian tribe, title to which is held in trust by the United States or which is subject to a restriction against alienation under laws of the United States.</text></paragraph></section> <section id="HB8528F7D6B6842D0A8D437DD07CB58A4"><enum>2602.</enum><header>Indian tribal energy resource development</header> <subsection id="HBE1DC19F1EC240BE8C6BAE8D1371DD27"><enum>(a)</enum><header>Department of the interior Program</header> <paragraph id="H21EB45AF678C4C7AAEDE3337F611D0C0"><enum>(1)</enum><text>To assist Indian tribes in the development of energy resources and further the goal of Indian self-determination, the Secretary shall establish and implement an Indian energy resource development program to assist consenting Indian tribes and tribal energy resource development organizations in achieving the purposes of this title.</text></paragraph> <paragraph id="H19984FFD5FA341A700F455108825C300"><enum>(2)</enum><text>In carrying out the Program, the Secretary shall—</text> <subparagraph id="H1DA333838B3944298176D00C900BC05"><enum>(A)</enum><text>provide development grants to Indian tribes and tribal energy resource development organizations for use in developing or obtaining the managerial and technical capacity needed to develop energy resources on Indian land, and to properly account for resulting energy production and revenues;</text></subparagraph> <subparagraph id="H412B22CD58B948D08F81937074C34307"><enum>(B)</enum><text>provide grants to Indian tribes and tribal energy resource development organizations for use in carrying out projects to promote the integration of energy resources, and to process, use, or develop those energy resources, on Indian land; and</text></subparagraph> <subparagraph id="HC26F51B47B184E039DBDB604C3A267BD"><enum>(C)</enum><text>provide low-interest loans to Indian tribes and tribal energy resource development organizations for use in the promotion of energy resource development on Indian land and integration of energy resources.</text></subparagraph></paragraph> <paragraph id="HA67E0F66D8A94F9587BAEE57CAFD18E8"><enum>(3)</enum><text>There are authorized to be appropriated to carry out this subsection such sums as are necessary for each of fiscal years 2004 through 2014.</text></paragraph></subsection> <subsection id="H1A759C014F8D4F199F1E027517EB00C7"><enum>(b)</enum><header>Department of energy Indian energy education planning and management assistance Program</header> <paragraph id="H34A33EB96C0E49DBAEA3E943FC02C952"><enum>(1)</enum><text>The Director shall establish programs to assist consenting Indian tribes in meeting energy education, research and development, planning, and management needs.</text></paragraph> <paragraph id="HD8C488021499447C86F60335DEBA5C53"><enum>(2)</enum><text>In carrying out this subsection, the Director may provide grants, on a competitive basis, to an Indian tribe or tribal energy resource development organization for use in carrying out—</text> <subparagraph id="H8AC73B27F70A439EB689C9C09CBD863C"><enum>(A)</enum><text>energy, energy efficiency, and energy conservation programs;</text></subparagraph> <subparagraph id="H03A1F1E3489C4579897C949530027D87"><enum>(B)</enum><text>studies and other activities supporting tribal acquisitions of energy supplies, services, and facilities;</text></subparagraph> <subparagraph id="H8A35FA7C0CAE48E000F3C216214E3506"><enum>(C)</enum><text>planning, construction, development, operation, maintenance, and improvement of tribal electrical generation, transmission, and distribution facilities located on Indian land; and</text></subparagraph> <subparagraph id="HC550A862076B4EB38DB35FF58DDADC4"><enum>(D)</enum><text>development, construction, and interconnection of electric power transmission facilities located on Indian land with other electric transmission facilities.</text></subparagraph></paragraph> <paragraph id="H5BE1008B6F0F4537AF38323498DA6052"><enum>(3)</enum> <subparagraph display-inline="yes-display-inline" id="H4050F49F85BE4A908C00922142AA5DF7"><enum>(A)</enum><text>The Director may develop, in consultation with Indian tribes, a formula for providing grants under this subsection.</text></subparagraph> <subparagraph indent="up1" id="H87C17B52C1334B819C4DE888D74592F3"><enum>(B)</enum><text>In providing a grant under this subsection, the Director shall give priority to an application received from an Indian tribe with inadequate electric service (as determined by the Director).</text></subparagraph></paragraph> <paragraph id="H74ED98CACA984E0F96AB90BEAAFA3F3C"><enum>(4)</enum><text>The Secretary of Energy may issue such regulations as necessary to carry out this subsection.</text></paragraph> <paragraph id="H4512BB2A6EDD47DAAA95F75EC8B6E85"><enum>(5)</enum><text>There are authorized to be appropriated to carry out this subsection $20,000,000 for each of fiscal years 2004 through 2014.</text></paragraph></subsection> <subsection id="H3CECF3722E7D4C5E914397F17644E312"><enum>(c)</enum><header>Department of energy loan guarantee Program</header> <paragraph id="H3B0B5FE51482478E85ABD9487545E9AC"><enum>(1)</enum><text>Subject to paragraph (3), the Secretary of Energy may provide loan guarantees (as defined in section 502 of the <act-name parsable-cite="FCRA90">Federal Credit Reform Act of 1990</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a</external-xref>)) for not more than 90 percent of the unpaid principal and interest due on any loan made to any Indian tribe for energy development.</text></paragraph> <paragraph id="H05F62283FA6A460DB977E4E5D692C6BD"><enum>(2)</enum><text>A loan guarantee under this subsection shall be made by—</text> <subparagraph id="H6CAFBF0665CB4EC3AE7185F7664C7BBF"><enum>(A)</enum><text>a financial institution subject to examination by the Secretary of Energy; or</text></subparagraph> <subparagraph id="HFEF41989BC71448E8339BF702C77BAA4"><enum>(B)</enum><text>an Indian tribe, from funds of the Indian tribe.</text></subparagraph></paragraph> <paragraph id="HC127625AE4434313B862B7C65C0866BA"><enum>(3)</enum><text>The aggregate outstanding amount guaranteed by the Secretary of Energy at any time under this subsection shall not exceed $2,000,000,000.</text></paragraph> <paragraph id="H36DF42213D3B4EAAB3498C8901FF7707"><enum>(4)</enum><text>The Secretary of Energy may issue such regulations as the Secretary of Energy determines are necessary to carry out this subsection.</text></paragraph> <paragraph id="H0F9E322D83814DA3B836C128AFA001B"><enum>(5)</enum><text>There are authorized to be appropriated such sums as are necessary to carry out this subsection, to remain available until expended.</text></paragraph> <paragraph id="HD97BB6EEA64642E0B01C1382E8EDBDB3"><enum>(6)</enum><text>Not later than 1 year from the date of enactment of this section, the Secretary of Energy shall report to Congress on the financing requirements of Indian tribes for energy development on Indian land.</text></paragraph></subsection> <subsection id="H40F9F4BB34974A0783506355C400F6E4"><enum>(d)</enum><header>Federal agencies-indian energy preference</header> <paragraph id="HE795F4D0AEA743089353FD75DD348CD3"><enum>(1)</enum><text>In purchasing electricity or any other energy product or byproduct, a Federal agency or department may give preference to an energy and resource production enterprise, partnership, consortium, corporation, or other type of business organization the majority of the interest in which is owned and controlled by 1 or more Indian tribes.</text></paragraph> <paragraph id="H724900354ACC4D0C9F4C373E09D400D5"><enum>(2)</enum><text>In carrying out this subsection, a Federal agency or department shall not—</text> <subparagraph id="H78FC2A45F3274C778FC981F4C8F22859"><enum>(A)</enum><text>pay more than the prevailing market price for an energy product or byproduct; or</text></subparagraph> <subparagraph id="HF71BAB4E5F294BC80084F61405BC3559"><enum>(B)</enum><text>obtain less than prevailing market terms and conditions.</text></subparagraph></paragraph></subsection></section> <section id="HF37EDC5EFEBA4425BC75E301EF9FDEA9"><enum>2603.</enum><header>Indian tribal energy resource regulation</header> <subsection id="HF190FB398ECE40DC81AF836886A5BF11"><enum>(a)</enum><header>Grants</header><text>The Secretary may provide to Indian tribes, on an annual basis, grants for use in accordance with subsection (b).</text></subsection> <subsection id="HC9019D9CC14C4688BE5538A71DEF6461"><enum>(b)</enum><header>Use of funds</header><text>Funds from a grant provided under this section may be used—</text> <paragraph id="H571B8CCCFBA1485099DDB12EFCE8F6C1"><enum>(1)</enum><text>by an Indian tribe for the development of a tribal energy resource inventory or tribal energy resource on Indian land;</text></paragraph> <paragraph id="H83D2E5C85AB64762B462EBB8339523E9"><enum>(2)</enum><text>by an Indian tribe for the development of a feasibility study or other report necessary to the development of energy resources on Indian land;</text></paragraph> <paragraph id="HA7A37DEF75CD4C74AB3468B55CC06DD0"><enum>(3)</enum><text>by an Indian tribe (other than an Indian Tribe in Alaska except the Metlakatla Indian Community) for the development and enforcement of tribal laws (including regulations) relating to tribal energy resource development and the development of technical infrastructure to protect the environment under applicable law; or</text></paragraph> <paragraph id="H46FACEC7D3184644808FF2C09510F001"><enum>(4)</enum><text>by a Native Corporation for the development and implementation of corporate policies and the development of technical infrastructure to protect the environment under applicable law; and</text></paragraph> <paragraph id="HAC305193D4E94470AF24D32638D13C50"><enum>(5)</enum><text>by an Indian tribe for the training of employees that—</text> <subparagraph id="HDC2B24C101184F178E7B603769B28DD4"><enum>(A)</enum><text>are engaged in the development of energy resources on Indian land; or</text></subparagraph> <subparagraph id="HB8C497B029E849BABDC4B48AF5181E"><enum>(B)</enum><text>are responsible for protecting the environment.</text></subparagraph></paragraph></subsection> <subsection id="HBEE7D3D0EBB44BD492BD1DD48C798310"><enum>(c)</enum><header>Other assistance</header><text>In carrying out the obligations of the United States under this title, the Secretary shall ensure, to the maximum extent practicable and to the extent of available resources, that upon the request of an Indian tribe, the Indian tribe shall have available scientific and technical information and expertise, for use in the Indian tribe’s regulation, development, and management of energy resources on Indian land. The Secretary may fulfill this responsibility either directly, through the use of Federal officials, or indirectly, by providing financial assistance to the Indian tribe to secure independent assistance.</text></subsection></section> <section id="HDC6DB04E13E644EF8116E9536382EEFA"><enum>2604.</enum><header>Leases, business agreements, and rights-of-way involving energy development or transmission</header> <subsection id="H336383DF50424410B99410BD5CACAAB2"><enum>(a)</enum><header>Leases and business agreements</header><text>Subject to the provisions of this section—</text> <paragraph id="H0EDA8F109A8B4A01BBD8BE97F006B30"><enum>(1)</enum><text>an Indian tribe may, at its discretion, enter into a lease or business agreement for the purpose of energy resource development on tribal land, including a lease or business agreement for—</text> <subparagraph id="H6EB5BBC3B8AD43CAB5AF49AB11001134"><enum>(A)</enum><text>exploration for, extraction of, processing of, or other development of the Indian tribe’s energy mineral resources located on tribal land; and</text></subparagraph> <subparagraph id="H8C79108F35D34042942DBA8466001F6E"><enum>(B)</enum><text>construction or operation of an electric generation, transmission, or distribution facility located on tribal land or a facility to process or refine energy resources developed on tribal land; and</text></subparagraph></paragraph> <paragraph id="HD5F56E21EB7B4967B6DCEFB7BEB8911C"><enum>(2)</enum><text>such lease or business agreement described in paragraph (1) shall not require the approval of the Secretary under section 2103 of the Revised Statutes (<external-xref legal-doc="usc" parsable-cite="usc/25/81">25 U.S.C. 81</external-xref>) or any other provision of law, if—</text> <subparagraph id="HB4A72FC46CF9439FB6DBD65640F3B0E9"><enum>(A)</enum><text>the lease or business agreement is executed pursuant to a tribal energy resource agreement approved by the Secretary under subsection (e);</text></subparagraph> <subparagraph id="H2CBAD9FE2A674AA0AD6C6DBDA2265608"><enum>(B)</enum><text>the term of the lease or business agreement does not exceed—</text> <clause id="H36C311949EBF4D36AE26F2E69C152ED"><enum>(i)</enum><text>30 years; or</text></clause> <clause id="H721DD823936A495AA0852E3970928C6E"><enum>(ii)</enum><text>in the case of a lease for the production of oil resources, gas resources, or both, 10 years and as long thereafter as oil or gas is produced in paying quantities; and</text></clause></subparagraph> <subparagraph id="HF6EE7CC003DD4EE083E72F2592C07D96"><enum>(C)</enum><text>the Indian tribe has entered into a tribal energy resource agreement with the Secretary, as described in subsection (e), relating to the development of energy resources on tribal land (including the periodic review and evaluation of the activities of the Indian tribe under the agreement, to be conducted pursuant to the provisions required by subsection (e)(2)(D)(i)).</text></subparagraph></paragraph></subsection> <subsection id="HD6315DA91B344BEB00F5C7DCC43B8166"><enum>(b)</enum><header>Rights-of-way for pipelines or electric transmission or distribution lines</header><text>An Indian tribe may grant a right-of-way over tribal land for a pipeline or an electric transmission or distribution line without approval by the Secretary if—</text> <paragraph id="H1E9168ED1699410CBEC964052E1D9A2"><enum>(1)</enum><text>the right-of-way is executed in accordance with a tribal energy resource agreement approved by the Secretary under subsection (e);</text></paragraph> <paragraph id="H7767807575BA48FA8FF2AE155FE9AC3D"><enum>(2)</enum><text>the term of the right-of-way does not exceed 30 years;</text></paragraph> <paragraph id="H9DDBAC547BDC4B9F911C4C4D6D003F7D"><enum>(3)</enum><text>the pipeline or electric transmission or distribution line serves—</text> <subparagraph id="HE8438C396AAB4E649D37A38D52CF4585"><enum>(A)</enum><text>an electric generation, transmission, or distribution facility located on tribal land; or</text></subparagraph> <subparagraph id="HC0C5B8C1C34A406A8DEB2FB2CACBDF15"><enum>(B)</enum><text>a facility located on tribal land that processes or refines energy resources developed on tribal land; and</text></subparagraph></paragraph> <paragraph id="H6267AF95EDB0437B94EE5D47B2C166F4"><enum>(4)</enum><text>the Indian tribe has entered into a tribal energy resource agreement with the Secretary, as described in subsection (e), relating to the development of energy resources on tribal land (including the periodic review and evaluation of the Indian tribe’s activities under such agreement described in subparagraphs (D) and (E) of subsection (e)(2)).</text></paragraph></subsection> <subsection id="H884F9C6947C04729ABD684E09D8636"><enum>(c)</enum><header>Renewals</header><text>A lease or business agreement entered into or a right-of-way granted by an Indian tribe under this section may be renewed at the discretion of the Indian tribe in accordance with this section.</text></subsection> <subsection id="H36DEA4B82BAB4B20BD33D29C41D0F1A3"><enum>(d)</enum><header>Validity</header><text>No lease, business agreement, or right-of-way relating to the development of tribal energy resources pursuant to the provisions of this section shall be valid unless the lease, business agreement, or right-of-way is authorized by the provisions of a tribal energy resource agreement approved by the Secretary under subsection (e)(2).</text></subsection> <subsection id="H142C394253DB4B45A08C889500510701"><enum>(e)</enum><header>Tribal energy resource agreements</header> <paragraph id="H3992E9B4E269468F8EFB156B71752CA3"><enum>(1)</enum><text>On issuance of regulations under paragraph (8), an Indian tribe may submit to the Secretary for approval a tribal energy resource agreement governing leases, business agreements, and rights-of-way under this section.</text></paragraph> <paragraph id="H2F49BE11B0EF429B983C0310BADFB1F7"><enum>(2)</enum> <subparagraph display-inline="yes-display-inline" id="H1EA7AF71DDA14195AA1E9BF4CB92677"><enum>(A)</enum><text>Not later than 180 days after the date on which the Secretary receives a tribal energy resource agreement submitted by an Indian tribe under paragraph (1), or not later than 60 days after the Secretary receives a revised tribal energy resource agreement submitted by an Indian tribe under paragraph (4)(C), (or such later date as may be agreed to by the Secretary and the Indian tribe), the Secretary shall approve or disapprove the tribal energy resource agreement.</text></subparagraph> <subparagraph indent="up1" id="HDD560C75C0684B7FAEAF2673A61E12A7"><enum>(B)</enum><text>The Secretary shall approve a tribal energy resource agreement submitted under paragraph (1) if—</text> <clause id="HCBF826E0A0264408006CA886AB11098B"><enum>(i)</enum><text>the Secretary determines that the Indian tribe has demonstrated that the Indian tribe has sufficient capacity to regulate the development of energy resources of the Indian tribe;</text></clause> <clause id="HBFB4795582934CB69CD5CD5E4F933700"><enum>(ii)</enum><text>the tribal energy resource agreement includes provisions required under subparagraph (D); and</text></clause> <clause id="HB078FB12FA2841B6936E904327CC7415"><enum>(iii)</enum><text>the tribal energy resource agreement includes provisions that, with respect to a lease, business agreement, or right-of-way under this section—</text> <subclause id="H7ED02AEF5BD6413C87F848351CB0CE7C"><enum>(I)</enum><text>ensure the acquisition of necessary information from the applicant for the lease, business agreement, or right-of-way;</text></subclause> <subclause id="H6272CBEF7A414343ACEAEE6D56D9E73B"><enum>(II)</enum><text>address the term of the lease or business agreement or the term of conveyance of the right-of-way;</text></subclause> <subclause id="H552B7A69D84C49EAAF00B4F430920007"><enum>(III)</enum><text>address amendments and renewals;</text></subclause> <subclause id="HBA3A76C85C7747B2A4102F6F531C006E"><enum>(IV)</enum><text>address the economic return to the Indian tribe under leases, business agreements, and rights-of-way;</text></subclause> <subclause id="HC70724A58EA34CDCA7750092D8E2FF49"><enum>(V)</enum><text>address technical or other relevant requirements;</text></subclause> <subclause id="HA21A6E52FAEA4F5698549B85F51F79D"><enum>(VI)</enum><text>establish requirements for environmental review in accordance with subparagraph (C);</text></subclause> <subclause id="H04FE33C732234D779E5DBD77132CCCD2"><enum>(VII)</enum><text>ensure compliance with all applicable environmental laws;</text></subclause> <subclause id="H3D9EF7E4168B4187B1DE8FC73BE97F9C"><enum>(VIII)</enum><text>identify final approval authority;</text></subclause> <subclause id="H8DD05D3C1B4D481494AE6890DDFDC16"><enum>(IX)</enum><text>provide for public notification of final approvals;</text></subclause> <subclause id="HFA8EA0DD4C894E5B956C00536C8C2F51"><enum>(X)</enum><text>establish a process for consultation with any affected States concerning off-reservation impacts, if any, identified pursuant to the provisions required under subparagraph (C)(i);</text></subclause> <subclause id="H31B15AD006834755BEBF8F630456278B"><enum>(XI)</enum><text>describe the remedies for breach of the lease, business agreement, or right-of-way;</text></subclause> <subclause id="H60850F0800E04166AEE64C3200B33FEE"><enum>(XII)</enum><text>require each lease, business agreement, and right-of-way to include a statement that, in the event that any of its provisions violates an express term or requirement set forth in the tribal energy resource agreement pursuant to which it was executed—</text> <item id="HCF83037CB5FB4C778F7FE06CF2E3B2CF"><enum>(aa)</enum><text>such provision shall be null and void; and</text></item> <item id="HFE2E08EDD9C94967B9BDB7257FEC8D46"><enum>(bb)</enum><text>if the Secretary determines such provision to be material, the Secretary shall have the authority to suspend or rescind the lease, business agreement, or right-of-way or take other appropriate action that the Secretary determines to be in the best interest of the Indian tribe;</text></item></subclause> <subclause id="H07674F2C5EEC4AE589B8FCCA6A0FB6C"><enum>(XIII)</enum><text>require each lease, business agreement, and right-of-way to provide that it will become effective on the date on which a copy of the executed lease, business agreement, or right-of-way is delivered to the Secretary in accordance with regulations adopted pursuant to this subsection; and</text></subclause> <subclause id="HDEECD3ECF5BB4C1183ED2E1EDCCA00"><enum>(XIV)</enum><text>include citations to tribal laws, regulations, or procedures, if any, that set out tribal remedies that must be exhausted before a petition may be submitted to the Secretary pursuant to paragraph (7)(B).</text></subclause></clause></subparagraph> <subparagraph indent="up1" id="H9562B5B703C547FAB9E68841726700A3"><enum>(C)</enum><text>Tribal energy resource agreements submitted under paragraph (1) shall establish, and include provisions to ensure compliance with, an environmental review process that, with respect to a lease, business agreement, or right-of-way under this section, provides for—</text> <clause id="H790402ADECED436BAD99185826B2AC5B"><enum>(i)</enum><text>the identification and evaluation of all significant environmental impacts (as compared with a no-action alternative), including effects on cultural resources;</text></clause> <clause id="HD68A93E39FD24C35BF67FCB3565758C"><enum>(ii)</enum><text>the identification of proposed mitigation;</text></clause> <clause id="H69739FB2E1E542DDB1A8EA4BED3249"><enum>(iii)</enum><text>a process for ensuring that the public is informed of and has an opportunity to comment on the environmental impacts of the proposed action before tribal approval of the lease, business agreement, or right-of-way; and</text></clause> <clause id="HDA082397745B439DA9269DAF56DCB0A6"><enum>(iv)</enum><text>sufficient administrative support and technical capability to carry out the environmental review process.</text></clause></subparagraph> <subparagraph indent="up1" id="H8E092B2607A04F028600EA15B7C0F9F1"><enum>(D)</enum><text>A tribal energy resource agreement negotiated between the Secretary and an Indian tribe in accordance with this subsection shall include—</text> <clause id="H105102AC12874195B4A6BD249EB4E2BB"><enum>(i)</enum><text>provisions requiring the Secretary to conduct a periodic review and evaluation to monitor the performance of the Indian tribe’s activities associated with the development of energy resources under the tribal energy resource agreement; and</text></clause> <clause id="HC530DE47FF17481AA207AFCB8F9BAD03"><enum>(ii)</enum><text>when such review and evaluation result in a finding by the Secretary of imminent jeopardy to a physical trust asset arising from a violation of the tribal energy resource agreement or applicable Federal laws, provisions authorizing the Secretary to take appropriate actions determined by the Secretary to be necessary to protect such asset, which actions may include reassumption of responsibility for activities associated with the development of energy resources on tribal land until the violation and conditions that gave rise to such jeopardy have been corrected.</text></clause></subparagraph> <subparagraph indent="up1" id="H19AF4DE165DB4134AC8C5C44D4CBF31C"><enum>(E)</enum><text>The periodic review and evaluation described in subparagraph (D) shall be conducted on an annual basis, except that, after the third such annual review and evaluation, the Secretary and the Indian tribe may mutually agree to amend the tribal energy resource agreement to authorize the review and evaluation required by subparagraph (D) to be conducted once every 2 years.</text></subparagraph></paragraph> <paragraph id="HCE57C6172F60492789B8DB76573792B8"><enum>(3)</enum><text>The Secretary shall provide notice and opportunity for public comment on tribal energy resource agreements submitted for approval under paragraph (1). The Secretary’s review of a tribal energy resource agreement under the <act-name parsable-cite="NEPA69">National Environmental Policy Act of 1969</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/4321">42 U.S.C. 4321 et seq.</external-xref>) shall be limited to the direct effects of that approval.</text></paragraph> <paragraph id="H4E7E713578CA42CDAC1811F5CFCDDED5"><enum>(4)</enum><text>If the Secretary disapproves a tribal energy resource agreement submitted by an Indian tribe under paragraph (1), the Secretary shall, not later than 10 days after the date of disapproval—</text> <subparagraph id="H3D8B7D2C1662474586F46542BBA63921"><enum>(A)</enum><text>notify the Indian tribe in writing of the basis for the disapproval;</text></subparagraph> <subparagraph id="H2F07E8D4B151409684DA009410A1D01C"><enum>(B)</enum><text>identify what changes or other actions are required to address the concerns of the Secretary; and</text></subparagraph> <subparagraph id="H47CE537252864BA38B004E5D3150CBE9"><enum>(C)</enum><text>provide the Indian tribe with an opportunity to revise and resubmit the tribal energy resource agreement.</text></subparagraph></paragraph> <paragraph id="H7CA88EFE383D49AD898D30005E72F2F8"><enum>(5)</enum><text>If an Indian tribe executes a lease or business agreement or grants a right-of-way in accordance with a tribal energy resource agreement approved under this subsection, the Indian tribe shall, in accordance with the process and requirements set forth in the Secretary’s regulations adopted pursuant to paragraph (8), provide to the Secretary—</text> <subparagraph id="HDF8151B3D1564DCCAA849225A4050000"><enum>(A)</enum><text>a copy of the lease, business agreement, or right-of-way document (including all amendments to and renewals of the document); and</text></subparagraph> <subparagraph id="H7D50622D0EB84DFDBDE796C15592EDE6"><enum>(B)</enum><text>in the case of a tribal energy resource agreement or a lease, business agreement, or right-of-way that permits payments to be made directly to the Indian tribe, information and documentation of those payments sufficient to enable the Secretary to discharge the trust responsibility of the United States to enforce the terms of, and protect the Indian tribe’s rights under, the lease, business agreement, or right-of-way.</text></subparagraph></paragraph> <paragraph id="H2E8F3E4BCE3B45999C79EFA61D33B445"><enum>(6)</enum> <subparagraph display-inline="yes-display-inline" id="H42DC7B79C5D5483B8FA6D5CEC2575220"><enum>(A)</enum><text>For purposes of the activities to be undertaken by the Secretary pursuant to this section, the Secretary shall—</text> <clause indent="up1" id="HF2E4353890E746AE8E5D01F0EC452EB"><enum>(i)</enum><text>carry out such activities in a manner consistent with the trust responsibility of the United States relating to mineral and other trust resources; and</text></clause> <clause indent="up1" id="HB0C660BEC9D74BB3B5B6035FA4D936B"><enum>(ii)</enum><text>act in good faith and in the best interests of the Indian tribes.</text></clause></subparagraph> <subparagraph indent="up1" id="H7565E882827149AB908CDE71EF451307"><enum>(B)</enum><text>Subject to the provisions of subsections (a)(2), (b), and (c) waiving the requirement of Secretarial approval of leases, business agreements, and rights-of-way executed pursuant to tribal energy resource agreements approved under this section, and the provisions of subparagraph (D), nothing in this section shall absolve the United States from any responsibility to Indians or Indian tribes, including, but not limited to, those which derive from the trust relationship or from any treaties, statutes, and other laws of the United States, Executive Orders, or agreements between the United States and any Indian tribe.</text></subparagraph> <subparagraph indent="up1" id="HBA8D1BC0AB774E9C9809007C9F3D00B"><enum>(C)</enum><text>The Secretary shall continue to have a trust obligation to ensure that the rights and interests of an Indian tribe are protected in the event that—</text> <clause id="H7DACA8E10EE44EE8A9D39E5C2E00CE9E"><enum>(i)</enum><text>any other party to any such lease, business agreement, or right-of-way violates any applicable provision of Federal law or the terms of any lease, business agreement, or right-of-way under this section; or</text></clause> <clause id="H5BD14731F4BE41DA9D5CE83BEE54A5F"><enum>(ii)</enum><text>any provision in such lease, business agreement, or right-of-way violates any express provision or requirement set forth in the tribal energy resource agreement pursuant to which the lease, business agreement, or right-of-way was executed.</text></clause></subparagraph> <subparagraph indent="up1" id="H1B4382FD18434AA4B4F77F6147EC375B"><enum>(D)</enum><text>Notwithstanding subparagraph (B), the United States shall not be liable to any party (including any Indian tribe) for any of the negotiated terms of, or any losses resulting from the negotiated terms of, a lease, business agreement, or right-of-way executed pursuant to and in accordance with a tribal energy resource agreement approved by the Secretary under paragraph (2). For the purpose of this subparagraph, the term <term>negotiated terms</term> means any terms or provisions that are negotiated by an Indian tribe and any other party or parties to a lease, business agreement, or right-of-way entered into pursuant to an approved tribal energy resource agreement.</text></subparagraph></paragraph> <paragraph id="H7C2EEE17EA4F4E2E0000D7EE6B599969"><enum>(7)</enum> <subparagraph display-inline="yes-display-inline" id="H7A50ECDB59B340B1AE00F5729DFEA429"><enum>(A)</enum><text>In this paragraph, the term <term>interested party</term> means any person or entity the interests of which have sustained or will sustain a significant adverse environmental impact as a result of the failure of an Indian tribe to comply with a tribal energy resource agreement of the Indian tribe approved by the Secretary under paragraph (2).</text></subparagraph> <subparagraph indent="up1" id="H042103A8BA3143A091F1E5FE9FCCE1F2"><enum>(B)</enum><text>After exhaustion of tribal remedies, and in accordance with the process and requirements set forth in regulations adopted by the Secretary pursuant to paragraph (8), an interested party may submit to the Secretary a petition to review compliance of an Indian tribe with a tribal energy resource agreement of the Indian tribe approved by the Secretary under paragraph (2).</text></subparagraph> <subparagraph indent="up1" id="H15E4E619E7D9492D8594B10021A0AE46"><enum>(C)</enum> <clause display-inline="yes-display-inline" id="H443571632E234817A937E2A5B981D9A5"><enum>(i)</enum><text>Not later than 120 days after the date on which the Secretary receives a petition under subparagraph (B), the Secretary shall determine whether the Indian tribe is not in compliance with the tribal energy resource agreement, as alleged in the petition.</text></clause> <clause indent="up1" id="H30ED4F96CE0948FA95B0F0E320CED24C"><enum>(ii)</enum><text>The Secretary may adopt procedures under paragraph (8) authorizing an extension of time, not to exceed 120 days, for making the determination under clause (i) in any case in which the Secretary determines that additional time is necessary to evaluate the allegations of the petition.</text></clause> <clause indent="up1" id="H7C4E6FFF3BC544DF9E92A617E3A2493F"><enum>(iii)</enum><text>Subject to subparagraph (D), if the Secretary determines that the Indian tribe is not in compliance with the tribal energy resource agreement as alleged in the petition, the Secretary shall take such action as is necessary to ensure compliance with the provisions of the tribal energy resource agreement, which action may include—</text> <subclause id="H18BFA643214E4FB1AF0325B645158C5B"><enum>(I)</enum><text>temporarily suspending some or all activities under a lease, business agreement, or right-of-way under this section until the Indian tribe or such activities are in compliance with the provisions of the approved tribal energy resource agreement; or</text></subclause> <subclause id="H404D3A8E413C4420A066B0A71C8C251"><enum>(II)</enum><text>rescinding approval of all or part of the tribal energy resource agreement, and if all of such agreement is rescinded, reassuming the responsibility for approval of any future leases, business agreements, or rights-of-way described in subsections (a) and (b).</text></subclause></clause></subparagraph> <subparagraph indent="up1" id="H2913B4DC2CFC416CAAA3D08799FBF88F"><enum>(D)</enum><text>Prior to seeking to ensure compliance with the provisions of the tribal energy resource agreement of an Indian tribe under subparagraph (C)(iii), the Secretary shall—</text> <clause id="H74B4AC9DCBE2468B836C500000003EE3"><enum>(i)</enum><text>make a written determination that describes the manner in which the tribal energy resource agreement has been violated;</text></clause> <clause id="H378BD8EE00624709AB074045C27B9B6D"><enum>(ii)</enum><text>provide the Indian tribe with a written notice of the violations together with the written determination; and</text></clause> <clause id="H9C337273C2E7477594903CFF7C33EF48"><enum>(iii)</enum><text>before taking any action described in subparagraph (C)(iii) or seeking any other remedy, provide the Indian tribe with a hearing and a reasonable opportunity to attain compliance with the tribal energy resource agreement.</text></clause></subparagraph> <subparagraph indent="up1" id="H9D1D92307D2A4958AE9E96B5F70033C4"><enum>(E)</enum><text>An Indian tribe described in subparagraph (D) shall retain all rights to appeal as provided in regulations issued by the Secretary.</text></subparagraph></paragraph> <paragraph id="HAD50E462F6CF47EC84A61B22D2C6DEC5"><enum>(8)</enum><text>Not later than 1 year after the date of enactment of the <short-title>Indian Tribal Energy Development and Self-Determination Act of 2004</short-title>, the Secretary shall issue regulations that implement the provisions of this subsection, including—</text> <subparagraph id="H31C2A2D827204F028DFCA600F86B7B13"><enum>(A)</enum><text>criteria to be used in determining the capacity of an Indian tribe described in paragraph (2)(B)(i), including the experience of the Indian tribe in managing natural resources and financial and administrative resources available for use by the Indian tribe in implementing the approved tribal energy resource agreement of the Indian tribe;</text></subparagraph> <subparagraph id="H0F756DCD894748028F27958E3B28C630"><enum>(B)</enum><text>a process and requirements in accordance with which an Indian tribe may—</text> <clause id="HB3484E350559460ABD3036EB67325B71"><enum>(i)</enum><text>voluntarily rescind a tribal energy resource agreement approved by the Secretary under this subsection; and</text></clause> <clause id="HC1849F18687F4A90A37BF22F0029439C"><enum>(ii)</enum><text>return to the Secretary the responsibility to approve any future leases, business agreements, and rights-of-way described in this subsection;</text></clause></subparagraph> <subparagraph id="H6575B0BE0D534F778921566579C365A1"><enum>(C)</enum><text>provisions setting forth the scope of, and procedures for, the periodic review and evaluation described in subparagraphs (D) and (E) of paragraph (2), including provisions for review of transactions, reports, site inspections, and any other review activities the Secretary determines to be appropriate; and</text></subparagraph> <subparagraph id="H7D4A679C8C0B4F349C45F1E82E161FD3"><enum>(D)</enum><text>provisions defining final agency actions after exhaustion of administrative appeals from determinations of the Secretary under paragraph (7).</text></subparagraph></paragraph></subsection> <subsection id="H53E634A32F5145C1A150FC56F17FC8CE"><enum>(f)</enum><header>No effect on other law</header><text>Nothing in this section affects the application of—</text> <paragraph id="HA5CDB467B14842D4ADC134C346F73000"><enum>(1)</enum><text>any Federal environment law;</text></paragraph> <paragraph id="H90F9F516995240F09714D0BCBB04CF0"><enum>(2)</enum><text>the Surface Mining Control and Reclamation Act of 1977 (<external-xref legal-doc="usc" parsable-cite="usc/30/1201">30 U.S.C. 1201 et seq.</external-xref>); or</text></paragraph> <paragraph id="HCD85F28B0A614F40AAA385A3DF43A488"><enum>(3)</enum><text>except as otherwise provided in this title, the Indian Mineral Development Act of 1982 (<external-xref legal-doc="usc" parsable-cite="usc/25/2101">25 U.S.C. 2101 et seq.</external-xref>) and the <act-name parsable-cite="NEPA69">National Environmental Policy Act of 1969</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/4321">42 U.S.C. 4321 et seq.</external-xref>).</text></paragraph></subsection> <subsection id="HD615F8D43A9A434D9F8EF859262FD5D7"><enum>(g)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary such sums as are necessary for each of fiscal years 2004 through 2014 to implement the provisions of this section and to make grants or provide other appropriate assistance to Indian tribes to assist the Indian tribes in developing and implementing tribal energy resource agreements in accordance with the provisions of this section.</text></subsection></section> <section id="H708A861F58CF4F1FAFF3E6636968C500"><enum>2605.</enum><header>Indian mineral development review</header> <subsection id="H5FB3B8DBCF784289A9B2A8DD6DB814A5"><enum>(a)</enum><header>In general</header><text>The Secretary shall conduct a review of all activities being conducted under the Indian Mineral Development Act of 1982 (<external-xref legal-doc="usc" parsable-cite="usc/25/2101">25 U.S.C. 2101 et seq.</external-xref>) as of that date.</text></subsection> <subsection id="H9C534F5BD2F3414A9F43338009155D5C"><enum>(b)</enum><header>Report</header><text>Not later than 1 year after the date of enactment of the <short-title>Indian Tribal Energy Development and Self-Determination Act of 2004</short-title>, the Secretary shall submit to Congress a report that includes—</text> <paragraph id="H8BD7A18DB31346508C383CD4F646B870"><enum>(1)</enum><text>the results of the review;</text></paragraph> <paragraph id="HDBE7B68198F44925B422FD2F61DA874D"><enum>(2)</enum><text>recommendations to ensure that Indian tribes have the opportunity to develop Indian energy resources; and</text></paragraph> <paragraph id="H4E53E36580DC4194AEB7B83EA656F66"><enum>(3)</enum><text>an analysis of the barriers to the development of energy resources on Indian land (including legal, fiscal, market, and other barriers), along with recommendations for the removal of those barriers.</text></paragraph></subsection></section> <section id="H6D57944411DC4D22A09C18599D98469F"><enum>2606.</enum><header>Federal Power Marketing Administrations</header> <subsection id="H3A6CA957473A467C99D0F2A0F5035361"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H9BBF580D2F614B6B8DF967201FF19DA5"><enum>(1)</enum><text>The term <term>Administrator</term> means the Administrator of the Bonneville Power Administration and the Administrator of the Western Area Power Administration.</text></paragraph> <paragraph id="H10512F806EAD4602BA14EDE68AA85FF"><enum>(2)</enum><text>The term <term>power marketing administration</term> means—</text> <subparagraph id="H18A637E6C09B455D8DD425543D836BFE"><enum>(A)</enum><text>the Bonneville Power Administration;</text></subparagraph> <subparagraph id="HD9820970CBF44A5CACA81285E53BBC36"><enum>(B)</enum><text>the Western Area Power Administration; and</text></subparagraph> <subparagraph id="H0CCCE4DF5E5447198C5B76EFA11B26C8"><enum>(C)</enum><text>any other power administration the power allocation of which is used by or for the benefit of an Indian tribe located in the service area of the administration.</text></subparagraph></paragraph></subsection> <subsection id="HCEE3E4BDB8C24B75B321273D3B7D70AF"><enum>(b)</enum><header>Encouragement of Indian tribal energy development</header><text>Each Administrator shall encourage Indian tribal energy development by taking such actions as are appropriate, including administration of programs of the Bonneville Power Administration and the Western Area Power Administration, in accordance with this section.</text></subsection> <subsection id="HA1F5AEF72E45442B9085FBD226075C54"><enum>(c)</enum><header>Action by the Administrator</header><text>In carrying out this section, and in accordance with existing law—</text> <paragraph id="H866CA6969B1049A39C9B317524159957"><enum>(1)</enum><text>each Administrator shall consider the unique relationship that exists between the United States and Indian tribes;</text></paragraph> <paragraph id="H70EAFC0AE7B64BECA1C25000865FD395"><enum>(2)</enum><text>power allocations from the Western Area Power Administration to Indian tribes may be used to meet firming and reserve needs of Indian-owned energy projects on Indian land;</text></paragraph> <paragraph id="H57FFF8698132462AA1AF38DF9497AF75"><enum>(3)</enum><text>the Administrator of the Western Area Power Administration may purchase non-federally generated power from Indian tribes to meet the firming and reserve requirements of the Western Area Power Administration; and</text></paragraph> <paragraph id="H4A94A6DA60F6451B8C56F92C7CA59389"><enum>(4)</enum><text>each Administrator shall not pay more than the prevailing market price for an energy product nor obtain less than prevailing market terms and conditions.</text></paragraph></subsection> <subsection id="HA58AD750F1174DB18E05B006D7C5164D"><enum>(d)</enum><header>Assistance for transmission system use</header> <paragraph display-inline="yes-display-inline" id="HF5153AFFB134425DB4AD880F50548AA"><enum>(1)</enum><text>An Administrator may provide technical assistance to Indian tribes seeking to use the high-voltage transmission system for delivery of electric power.</text></paragraph> <paragraph indent="up1" id="H2406D53F319A4805ADFE00B2DD03C49"><enum>(2)</enum><text>The costs of technical assistance provided under paragraph (1) shall be funded by the Secretary of Energy using nonreimbursable funds appropriated for that purpose, or by the applicable Indian tribes.</text></paragraph></subsection> <subsection id="H45A3BB9DFBEB4B6CBC091B142FC6071B"><enum>(e)</enum><header>Power allocation study</header><text>Not later than 2 years after the date of enactment of the <short-title>Indian Tribal Energy Development and Self-Determination Act of 2004</short-title>, the Secretary of Energy shall submit to Congress a report that—</text> <paragraph id="H9283974EBBC840F5ACDDBA6757A4A600"><enum>(1)</enum><text>describes the use by Indian tribes of Federal power allocations of the Western Area Power Administration (or power sold by the Southwestern Power Administration) and the Bonneville Power Administration to or for the benefit of Indian tribes in service areas of those administrations; and</text></paragraph> <paragraph id="HFE98D10678204E9DB5B68B752575AB83"><enum>(2)</enum><text>identifies—</text> <subparagraph id="H27C732EFB3AB41A4B6D4806790644F42"><enum>(A)</enum><text>the quantity of power allocated to, or used for the benefit of, Indian tribes by the Western Area Power Administration;</text></subparagraph> <subparagraph id="H3F8800DA535649B9BCDE44B4868C3400"><enum>(B)</enum><text>the quantity of power sold to Indian tribes by other power marketing administrations; and</text></subparagraph> <subparagraph id="H0DA639A25889445C8BE699EA1D5600CC"><enum>(C)</enum><text>barriers that impede tribal access to and use of Federal power, including an assessment of opportunities to remove those barriers and improve the ability of power marketing administrations to deliver Federal power.</text></subparagraph></paragraph></subsection> <subsection id="H168F0C95B1DB41E499A065286EBD3830"><enum>(f)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out this section $750,000, which shall remain available until expended and shall not be reimbursable.</text></subsection></section> <section id="H77FA6CF0E6284A2D8DAAE65C4BEAE677"><enum>2607.</enum><header>Wind and hydropower feasibility study</header> <subsection id="H203E8E3C0A794C5098E0D54032E55165"><enum>(a)</enum><header>Study</header><text>The Secretary of Energy, in coordination with the Secretary of the Army and the Secretary, shall conduct a study of the cost and feasibility of developing a demonstration project that would use wind energy generated by Indian tribes and hydropower generated by the Army Corps of Engineers on the Missouri River to supply firming power to the Western Area Power Administration.</text></subsection> <subsection id="H2B72133194D34F60ACC93E5F3BB2680"><enum>(b)</enum><header>Scope of study</header><text>The study shall—</text> <paragraph id="H89CA166237034DC88B7C8EB730ED2FBC"><enum>(1)</enum><text>determine the feasibility of the blending of wind energy and hydropower generated from the Missouri River dams operated by the Army Corps of Engineers;</text></paragraph> <paragraph id="H175D3302F22F4F9694BD6EC1FFD004B"><enum>(2)</enum><text>review historical and projected requirements for firming power and the patterns of availability and use of firming power;</text></paragraph> <paragraph id="H77E7227256EC4C2AADDC71E755DBE8AC"><enum>(3)</enum><text>assess the wind energy resource potential on tribal land and projected cost savings through a blend of wind and hydropower over a 30-year period;</text></paragraph> <paragraph id="H8D67C434648F4DE6806D7204D8A312C0"><enum>(4)</enum><text>determine seasonal capacity needs and associated transmission upgrades for integration of tribal wind generation; and</text></paragraph> <paragraph id="HD6B65C916BA64061BD9CB3BD00EEE691"><enum>(5)</enum><text>include an independent tribal engineer as a study team member.</text></paragraph></subsection> <subsection id="HC8C8A68BDD164109BC08C4180083EBFE"><enum>(c)</enum><header>Report</header><text>Not later than 1 year after the date of enactment of the Energy Policy Act of 2003, the Secretary and Secretary of the Army shall submit to Congress a report that describes the results of the study, including—</text> <paragraph id="HD2A91E8BAF6A4C4E9E57E83DF23FCAEA"><enum>(1)</enum><text>an analysis of the potential energy cost or benefits to the customers of the Western Area Power Administration through the use of combined wind and hydropower;</text></paragraph> <paragraph id="HC3D307953F00438DA1055DF5D965DCE"><enum>(2)</enum><text>an evaluation of whether a combined wind and hydropower system can reduce reservoir fluctuation, enhance efficient and reliable energy production, and provide Missouri River management flexibility;</text></paragraph> <paragraph id="HC82EADF15AAE45459239EBDEB596B715"><enum>(3)</enum><text>recommendations for a demonstration project that could be carried out by the Western Area Power Administration in partnership with an Indian tribal government or tribal energy resource development organization to demonstrate the feasibility and potential of using wind energy produced on Indian land to supply firming energy to the Western Area Power Administration or any other Federal power marketing agency; and</text></paragraph> <paragraph id="HC247A9C4FB344CEBB861DFF00926EE32"><enum>(4)</enum><text>an identification of—</text> <subparagraph id="HB9597525C7F0450D89E8AAABE8AA082B"><enum>(A)</enum><text>the economic and environmental costs or benefits to be realized through such a Federal-tribal partnership; and</text></subparagraph> <subparagraph id="H3F39E9DF175C46058E95648DC49F1474"><enum>(B)</enum><text>the manner in which such a partnership could contribute to the energy security of the United States.</text></subparagraph></paragraph></subsection> <subsection id="HE2860784FEFF4ECBA94FA7C3B9002E15"><enum>(d)</enum><header>Funding</header> <paragraph id="H45A1FFE3CC554BB4AAFE2C59DD573C50"><enum>(1)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out this section $500,000, to remain available until expended.</text></paragraph> <paragraph indent="up1" id="HF64F04DEEA1147FBA4CCE1D8D729A9C0"><enum>(2)</enum><header>Nonreimbursability</header><text>Costs incurred by the Secretary in carrying out this section shall be nonreimbursable.</text></paragraph></subsection></section>. (b)
Conforming amendments
The table of contents for the Energy Policy Act of 1992 is amended by striking the items relating to title XXVI and inserting the following: Sec. 2601. Definitions Sec. 2602. Indian tribal energy resource development Sec. 2603. Indian tribal energy resource regulation Sec. 2604. Leases, business agreements, and rights-of-way involving energy development or transmission Sec. 2605. Indian mineral development review Sec. 2606. Federal Power Marketing Administrations Sec. 2607. Wind and hydropower feasibility study.
504.
Four corners transmission line project
The Dine Power Authority, an enterprise of the Navajo Nation, shall be eligible to receive grants and other assistance as authorized by section 217 of the Department of Energy Organization Act, as added by section 502 of this title, and section 2602 of the Energy Policy Act of 1992, as amended by this title, for activities associated with the development of a transmission line from the Four Corners Area to southern Nevada, including related power generation opportunities.
505.
Energy efficiency in federally assisted housing
(a)
In general
The Secretary of Housing and Urban Development shall promote energy conservation in housing that is located on Indian land and assisted with Federal resources through— (1)the use of energy-efficient technologies and innovations (including the procurement of energy-efficient refrigerators and other appliances); (2)the promotion of shared savings contracts; and (3)the use and implementation of such other similar technologies and innovations as the Secretary of Housing and Urban Development considers to be appropriate. (b)
Amendment
Section 202(2) of the Native American Housing and Self-Determination Act of 1996 (25 U.S.C. 4132(2)) is amended by inserting improvement to achieve greater energy efficiency, after planning,.
506.
Consultation with Indian tribes
In carrying out this title and the amendments made by this title, the Secretary of Energy and the Secretary shall, as appropriate and to the maximum extent practicable, involve and consult with Indian tribes in a manner that is consistent with the Federal trust and the government-to-government relationships between Indian tribes and the United States.
<enum>VI</enum><header>Nuclear matters</header> <subtitle id="H4CA2EC6037C94AD0B78FA1AB3BBF2BFD"><enum>A</enum><header>Price-Anderson Act Amendments</header> <section id="HF039F562B82D4E8D8933F7877111448F" section-type="subsequent-section"><enum>601.</enum><header>Short title</header><text display-inline="no-display-inline"> This subtitle may be cited as the <quote>Price-Anderson Amendments Act of 2003</quote>.</text></section> <section id="H017B438A1B314A3100FA34ED73F540F8"><enum>602.</enum><header>Extension of indemnification authority</header> <subsection id="HF7C55D49FFF049FA90E8ED74236B001C"><enum>(a)</enum><header>Indemnification of nuclear regulatory commission licensees</header><text>Section 170 c. of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2210">42 U.S.C. 2210(c)</external-xref>) is amended—</text> <paragraph id="H852A4BA83DE4403A86B130232788C6BE"><enum>(1)</enum><text>in the subsection heading, by striking <quote><header-in-text level="subsection">Licenses</header-in-text></quote> and inserting <quote><header-in-text level="subsection">Licensees</header-in-text></quote>; and</text></paragraph> <paragraph id="H5B92BA0D40ED42B0A4F9C348797278C3"><enum>(2)</enum><text>by striking <quote>December 31, 2003</quote> each place it appears and inserting <quote>December 31, 2023</quote>.</text></paragraph></subsection> <subsection id="H3E3D72471E9743EEAF06E3B7F6F316D"><enum>(b)</enum><header>Indemnification of Department of Energy contractors</header><text>Section 170 d.(1)(A) of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2210">42 U.S.C. 2210(d)(1)(A)</external-xref>) is amended by striking <quote>December 31, 2004</quote> and inserting <quote>December 31, 2023</quote>.</text></subsection> <subsection id="H321B63C8F7F94F9CAC5D4612BC8F7E47"><enum>(c)</enum><header>Indemnification of nonprofit educational institutions</header><text>Section 170 k. of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2210">42 U.S.C. 2210(k)</external-xref>) is amended by striking <quote>August 1, 2002</quote> each place it appears and inserting <quote>December 31, 2023</quote>.</text></subsection></section> <section id="HF07BC09906424FDFBA2380A79CC1FAB6"><enum>603.</enum><header>Maximum assessment</header><text display-inline="no-display-inline"> Section 170 of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2210">42 U.S.C. 2210</external-xref>) is amended—</text> <paragraph id="HE25D0AA5458849B4BF34CE1EE191639C"><enum>(1)</enum><text>in the second proviso of the third sentence of subsection b.(1)—</text> <subparagraph id="H58913746E5AD481BB0A3F1EB39E0BE2E"><enum>(A)</enum><text>by striking <quote>$63,000,000</quote> and inserting <quote>$95,800,000</quote>; and</text></subparagraph> <subparagraph id="HD897F2A9E2DB401FA62E92EE6447E475"><enum>(B)</enum><text>by striking <quote>$10,000,000 in any 1 year</quote> and inserting <quote>$15,000,000 in any 1 year (subject to adjustment for inflation under subsection t.)</quote>; and</text></subparagraph></paragraph> <paragraph id="HFDEE7F74477F46EDAB4715448B8D5647"><enum>(2)</enum><text>in subsection t.(1)—</text> <subparagraph id="HF359353697284720A139F8FCB637513B"><enum>(A)</enum><text>by inserting <quote>total and annual</quote> after <quote>amount of the maximum</quote>;</text></subparagraph> <subparagraph id="HCC4CBBE3C3EF487DB2AE54D1BAE0B300"><enum>(B)</enum><text>by striking <quote>the date of the enactment of the Price-Anderson Amendments Act of 1988</quote> and inserting <quote>August 20, 2003</quote>; and</text></subparagraph> <subparagraph id="H2C579A998CB34A8C00BDF58804668DF"><enum>(C)</enum><text>in subparagraph (A), by striking <quote>such date of enactment</quote> and inserting <quote>August 20, 2003</quote>.</text></subparagraph></paragraph></section> <section id="H36A8D42C37AF4D07BDF7BF927C08FF1C"><enum>604.</enum><header>Department of energy liability limit</header> <subsection id="H2013EB33837C452B9BD415BB405B31C6"><enum>(a)</enum><header>Indemnification of Department of Energy contractors</header><text>Section 170 d. of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2210">42 U.S.C. 2210(d)</external-xref>) is amended by striking paragraph (2) and inserting the following:</text> <quoted-block id="H78067CAC0E55469BA47D611300697E84" style="OLC"> <paragraph id="H11FBCD37C2344B8DBCDF965475D6A249" indent="up1"><enum>(2)</enum><text>In an agreement of indemnification entered into under paragraph (1), the Secretary—</text> <subparagraph id="H5646B99A3910467089B5E7308B4C3B3B"><enum>(A)</enum><text>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</text></subparagraph> <subparagraph id="H983D5EA547CB4B589FAE6DAB47AC4DD5"><enum>(B)</enum><text>shall indemnify the persons indemnified against such liability 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 the contract and for each nuclear incident, including such legal costs of the contractor as are approved by the Secretary.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H653F5381E0404860B6583D35B049B783"><enum>(b)</enum><header>Contract amendments</header><text>Section 170 d. of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2210">42 U.S.C. 2210(d)</external-xref>) is further amended by striking paragraph (3) and inserting the following—</text> <quoted-block id="H730AB9C52A8941A680BB28D8B11FF9B" style="OLC"> <paragraph id="H0A54D553838F481AB217317CD06224F0" indent="up1"><enum>(3)</enum><text>All agreements of indemnification under which the Department of Energy (or its predecessor agencies) may be required to indemnify any person under this section shall be deemed to be amended, on the date of enactment of the Price-Anderson Amendments Act of 2003, to reflect the amount of indemnity for public liability and any applicable financial protection required of the contractor under this subsection.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H60798FBB59C54909A76F8BEDC420AE00"><enum>(c)</enum><header>Liability limit</header><text>Section 170 e.(1)(B) of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2210">42 U.S.C. 2210(e)(1)(B)</external-xref>) is amended—</text> <paragraph id="HF2ADBCAF14404F3DAA138D4C17E28BE7"><enum>(1)</enum><text>by striking <quote>the maximum amount of financial protection required under subsection b. or</quote>; and</text></paragraph> <paragraph id="H13105CE939294A0EB100FDA7825E162E"><enum>(2)</enum><text>by striking <quote>paragraph (3) of subsection d., whichever amount is more</quote> and inserting <quote>paragraph (2) of subsection d.</quote>.</text></paragraph></subsection></section> <section id="HCA88DF6A49074A2500E500C8CF5F1EBD"><enum>605.</enum><header>Incidents outside the United States</header> <subsection id="H1FEC1C3598BE4F61A365F102F8335D00"><enum>(a)</enum><header>Amount of indemnification</header><text>Section 170 d.(5) of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2210">42 U.S.C. 2210(d)(5)</external-xref>) is amended by striking <quote>$100,000,000</quote> and inserting <quote>$500,000,000</quote>.</text></subsection> <subsection id="H534694A56070431ABDF9F7DFD6003C98"><enum>(b)</enum><header>Liability limit</header><text>Section 170 e.(4) of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2210">42 U.S.C. 2210(e)(4)</external-xref>) is amended by striking <quote>$100,000,000</quote> and inserting <quote>$500,000,000</quote>.</text></subsection></section> <section id="H75DB997C78E1440E8E3282DD4B7700E5"><enum>606.</enum><header>Reports</header><text display-inline="no-display-inline"> Section 170 p. of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2210">42 U.S.C. 2210(p)</external-xref>) is amended by striking <quote>August 1, 1998</quote> and inserting <quote>December 31, 2019</quote>.</text></section> <section id="H8486BE06007C49139FFB8CB200D898A8"><enum>607.</enum><header>Inflation adjustment</header><text display-inline="no-display-inline"> Section 170 t. of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2210">42 U.S.C. 2210(t)</external-xref>) is amended—</text> <paragraph id="HFB21A850CB1D479400416F46F0A73998"><enum>(1)</enum><text>by redesignating paragraph (2) as paragraph (3); and</text></paragraph> <paragraph id="H733A544FB05542F2B8473E7C48C7E427"><enum>(2)</enum><text>by inserting after paragraph (1) the following:</text> <quoted-block id="HA6F8AA2A96FE43A1BA97A4EF8E8896F8" style="OLC"> <paragraph id="HF930EA18D10447D2995F2812374D7300" indent="up1"><enum>(2)</enum><text>The Secretary shall adjust the amount of indemnification provided under an agreement of indemnification under subsection d. not less than once during each 5-year period following July 1, 2003, in accordance with the aggregate percentage change in the Consumer Price Index since—</text> <subparagraph id="H6986B15C5337492FBA042B5E8FF0EF53"><enum>(A)</enum><text>that date, in the case of the first adjustment under this paragraph; or</text></subparagraph> <subparagraph id="HA45DC9E5604E452BAE3FB5AB14F195E"><enum>(B)</enum><text>the previous adjustment under this paragraph.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="HF732B24EE8E44172B6DE337EC315DF9"><enum>608.</enum><header>Treatment of modular reactors</header><text display-inline="no-display-inline"> Section 170 b. of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2210">42 U.S.C. 2210(b)</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="HFB6281FD0966436BB9BC022711337DC1" style="OLC"> <paragraph id="H1A31D5B81F5146DBB9CBC38F52C1CCA1" indent="up1"><enum>(5)</enum> <subparagraph id="H4F0C54C389214C0CB4185067E0051F2F" display-inline="yes-display-inline"><enum>(A)</enum><text>For purposes of this section only, the Commission shall consider a combination of facilities described in subparagraph (B) to be a single facility having a rated capacity of 100,000 electrical kilowatts or more.</text></subparagraph> <subparagraph id="H9136DC4C1D704DE50040FB6D010650A6" indent="up1"><enum>(B)</enum><text>A combination of facilities referred to in subparagraph (A) is 2 or more facilities located at a single site, each of which has a rated capacity of 100,000 electrical kilowatts or more but not more than 300,000 electrical kilowatts, with a combined rated capacity of not more than 1,300,000 electrical kilowatts.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H02453620FD68483096A4BF1900B7DF76"><enum>609.</enum><header>Applicability</header><text display-inline="no-display-inline"> The amendments made by sections 603, 604, and 605 do not apply to a nuclear incident that occurs before the date of the enactment of this Act.</text></section> <section id="H4FF2F38F866243E7ADC92A2988DF1C6"><enum>610.</enum><header>Prohibition on assumption by United States government of liability for certain foreign incidents</header><text display-inline="no-display-inline"> Section 170 of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2210">42 U.S.C. 2210</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block id="HB34A951C13144C88A246C848EA008892" style="other" other-style="nuclear"> <subsection id="H7CA9B62AEC1240E7ACCC3693452013B1"><enum>u.</enum><header>Prohibition on assumption of liability for certain foreign incidents</header><text>Notwithstanding this section or any other provision of law, no officer of the United States or of any department, agency, or instrumentality of the United States Government may enter into any contract or other arrangement, or into any amendment or modification of a contract or other arrangement, the purpose or effect of which would be to directly or indirectly impose liability on the United States Government, or any department, agency, or instrumentality of the United States Government, or to otherwise directly or indirectly require an indemnity by the United States Government, for nuclear incidents occurring in connection with the design, construction, or operation of a production facility or utilization facility in any country whose government has been identified by the Secretary of State as engaged in state sponsorship of terrorist activities (specifically including any country the government of which, as of September 11, 2001, had been determined by the Secretary of State under section 620A(a) of the Foreign Assistance Act of 1961 (<external-xref legal-doc="usc" parsable-cite="usc/22/2371">22 U.S.C. 2371(a)</external-xref>), section 6(j)(1) of the Export Administration Act of 1979 (<external-xref legal-doc="usc-appendix" parsable-cite="usc-appendix/50/2405">50 U.S.C. App. 2405(j)(1)</external-xref>), or section 40(d) of the Arms Export Control Act (<external-xref legal-doc="usc" parsable-cite="usc/22/2780">22 U.S.C. 2780(d)</external-xref>) to have repeatedly provided support for acts of international terrorism). This subsection shall not apply to nuclear incidents occurring as a result of missions, carried out under the direction of the Secretary of Energy, the Secretary of Defense, or the Secretary of State, that are necessary to safely secure, store, transport, or remove nuclear materials for nuclear safety or nonproliferation purposes.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HD42ADE60E6B142C5001FC800FB1F491B"><enum>611.</enum><header>Civil penalties</header> <subsection id="H02E36269A85D4033910085A8795D0042"><enum>(a)</enum><header>Repeal of automatic remission</header><text>Section 234A b.(2) of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2282a">42 U.S.C. 2282a(b)(2)</external-xref>) is amended by striking the last sentence.</text></subsection> <subsection id="HA13CFFA6FC084926B90332E083A639F2"><enum>(b)</enum><header>Limitation for not-for-profit institutions</header><text>Subsection d. of section 234A of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2282a">42 U.S.C. 2282a(d)</external-xref>) is amended to read as follows:</text> <quoted-block id="H3315A3E80398429DBA6000D607A8EEEF" style="other" other-style="nuclear"> <subsection id="H9D5F8AA83822415DBE4BD854A6245FE7"><enum>d.</enum> <paragraph id="H06473440C6454FE7BB5800CBD727DBB" display-inline="yes-display-inline"><enum>(1)</enum><text>Notwithstanding subsection a., in the case of any not-for-profit contractor, subcontractor, or supplier, the total amount of civil penalties paid under subsection a. may not exceed the total amount of fees paid within any 1-year period (as determined by the Secretary) under the contract under which the violation occurs.</text></paragraph> <paragraph id="HEE52AC4EF95B46D68F4F36833DDCD6D1" indent="up1"><enum>(2)</enum><text>For purposes of this section, the term <quote>not-for-profit</quote> means that no part of the net earnings of the contractor, subcontractor, or supplier inures to the benefit of any natural person or for-profit artificial person.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HC915C14CF5664E2A8B04931C6E3578DC"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall not apply to any violation of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2011">42 U.S.C. 2011 et seq.</external-xref>) occurring under a contract entered into before the date of enactment of this section.</text></subsection></section></subtitle> <subtitle id="H4DA863DC36B04886823380E75FD3E0AE"><enum>B</enum><header>General Nuclear Matters</header> <section id="HDFE07736255B438CAFDAF49F22801FD7"><enum>621.</enum><header>Licenses</header><text display-inline="no-display-inline"> Section 103 c. of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2133">42 U.S.C. 2133(c)</external-xref>) is amended by inserting <quote>from the authorization to commence operations</quote> after <quote>forty years</quote>.</text></section> <section id="H67C84C20F38D4C7AADF4EF9565FE1D9E"><enum>622.</enum><header>NRC training program</header> <subsection id="H9E18D59E65E6442487A2C6D7E6356BD"><enum>(a)</enum><header>In general</header><text>In order to maintain the human resource investment and infrastructure of the United States in the nuclear sciences, health physics, and engineering fields, in accordance with the statutory authorities of the Nuclear Regulatory Commission relating to the civilian nuclear energy program, the Nuclear Regulatory Commission shall carry out a training and fellowship program to address shortages of individuals with critical nuclear safety regulatory skills.</text></subsection> <subsection id="H291653AAF1DF41E19236F6CF44008376"><enum>(b)</enum><header>Authorization of appropriations</header> <paragraph id="H3797836E85C34975B3E967B611F92B4"><enum>(1)</enum><header>In general</header><text>There are authorized to be appropriated to the Nuclear Regulatory Commission to carry out this section $1,000,000 for each of fiscal years 2004 through 2008.</text></paragraph> <paragraph id="H7AF5B0E8EB8840179417C8439818CD7"><enum>(2)</enum><header>Availability</header><text>Funds made available under paragraph (1) shall remain available until expended.</text></paragraph></subsection></section> <section id="HB853E1764B4D47EF80A59BBFB62F3E2B"><enum>623.</enum><header>Cost recovery from government agencies</header><text display-inline="no-display-inline"> Section 161 w. of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2201">42 U.S.C. 2201(w)</external-xref>) is amended—</text> <paragraph id="H112A3462E91E4E419FEAA77DACC9DFFA"><enum>(1)</enum><text>by striking <quote>for or is issued</quote> and all that follows through <quote>1702</quote> and inserting <quote>to the Commission for, or is issued by the Commission, a license or certificate</quote>;</text></paragraph> <paragraph id="HDC1CF095C2D147B89CDCDA00CE73ED46"><enum>(2)</enum><text>by striking <quote>483a</quote> and inserting <quote>9701</quote>; and</text></paragraph> <paragraph id="H20F56EACC9D0456898763BC97B0F6F4"><enum>(3)</enum><text>by striking <quote>, of applicants for, or holders of, such licenses or certificates</quote>.</text></paragraph></section> <section id="H49ABCA5B86174707B96300BF2C507D57"><enum>624.</enum><header>Elimination of pension offset</header><text display-inline="no-display-inline"> Section 161 of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2201">42 U.S.C. 2201</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H4BF3CE144FFB48438416A61F35B9CC43" style="other" other-style="nuclear"> <subsection id="H89383F93EF21418AAAB09CEF3B6521D0"><enum>y.</enum><text>Exempt from the application of sections <external-xref legal-doc="usc" parsable-cite="usc/5/8344">8344</external-xref> and <external-xref legal-doc="usc" parsable-cite="usc/5/8468">8468</external-xref> of title 5, United States Code, an annuitant who was formerly an employee of the Commission who is hired by the Commission as a consultant, if the Commission finds that the annuitant has a skill that is critical to the performance of the duties of the Commission.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HA23427BBA8A54CC9B5BD8FF5A124D085"><enum>625.</enum><header>Antitrust review</header><text display-inline="no-display-inline"> Section 105 c. of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2135">42 U.S.C. 2135(c)</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="HC87745F4BFD949549ECC4F00D6FF80EF" style="OLC"> <paragraph id="HCB9A068BBA1544FA9E489FA6841EBDEE" indent="up1"><enum>(9)</enum><header>Applicability</header><text>This subsection does not apply to an application for a license to construct or operate a utilization facility or production facility under section 103 or 104 b. that is filed on or after the date of enactment of this paragraph.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HB118AC5B366D476E9E9CDD51B0F9AAF"><enum>626.</enum><header>Decommissioning</header><text display-inline="no-display-inline"> Section 161 i. of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2201">42 U.S.C. 2201(i)</external-xref>) is amended—</text> <paragraph id="H4AE4A1459133458EA5F300FCEE9BCFAB"><enum>(1)</enum><text>by striking <quote>and (3)</quote> and inserting <quote>(3)</quote>; and</text></paragraph> <paragraph id="HED24177EC53D496CB3A0049D5417FF5"><enum>(2)</enum><text>by inserting before the semicolon at the end the following: <quote>, and (4) to ensure that sufficient funds will be available for the decommissioning of any production or utilization facility licensed under section 103 or 104 b., including standards and restrictions governing the control, maintenance, use, and disbursement by any former licensee under this Act that has control over any fund for the decommissioning of the facility</quote>.</text></paragraph></section> <section id="H7541086302C74B5A977C7D5738CF41F4"><enum>627.</enum><header>Limitation on legal fee reimbursement</header><text display-inline="no-display-inline"> The Department of Energy shall not, except as required under a contract entered into before the date of enactment of this Act, reimburse any contractor or subcontractor of the Department for any legal fees or expenses incurred with respect to a complaint subsequent to—</text> <paragraph id="H44D20E310784428AAB5E21ABC30009F4"><enum>(1)</enum><text>an adverse determination on the merits with respect to such complaint against the contractor or subcontractor by the Director of the Department of Energy’s Office of Hearings and Appeals pursuant to part 708 of title 10, Code of Federal Regulations, or by a Department of Labor Administrative Law Judge pursuant to section 211 of the Energy Reorganization Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/42/5851">42 U.S.C. 5851</external-xref>); or</text></paragraph> <paragraph id="H040D7A7637C444C9A2F3AFD85E497F0"><enum>(2)</enum><text>an adverse final judgment by any State or Federal court with respect to such complaint against the contractor or subcontractor for wrongful termination or retaliation due to the making of disclosures protected under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/12">chapter 12</external-xref> of title 5, United States Code, section 211 of the Energy Reorganization Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/42/5851">42 U.S.C. 5851</external-xref>), or any comparable State law,</text></paragraph><continuation-text continuation-text-level="section">unless the adverse determination or final judgment is reversed upon further administrative or judicial review.</continuation-text></section> <section id="HDF0E182F1F4F4DCB9DA9D72547D86DDD"><enum>628.</enum><header>Decommissioning pilot program</header> <subsection id="H6F154B738D14407F00833637D96F008"><enum>(a)</enum><header>Pilot program</header><text>The Secretary of Energy shall establish a decommissioning pilot program to decommission and decontaminate the sodium-cooled fast breeder experimental test-site reactor located in northwest Arkansas in accordance with the decommissioning activities contained in the August 31, 1998, Department of Energy report on the reactor.</text></subsection> <subsection id="H245A4A1062B14F80B32B5F6042D35FD6"><enum>(b)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary of Energy to carry out this section $16,000,000.</text></subsection></section> <section id="H7F4691CF762A46418EBDCDA148CBC43"><enum>629.</enum><header>Report on feasibility of developing commercial nuclear energy generation facilities at existing Department of Energy sites</header><text display-inline="no-display-inline"> Not later than 1 year after the date of the enactment of this Act, the Secretary of Energy shall submit to Congress a report on the feasibility of developing commercial nuclear energy generation facilities at Department of Energy sites in existence on the date of enactment of this Act.</text></section> <section id="HD8031AE55E2241FA999F5CA70982D06B"><enum>630.</enum><header>Uranium sales</header> <subsection id="H355A2C6D5249413595BEB3B091000083"><enum>(a)</enum><header>Sales, transfers, and services</header><text>Section 3112 of the USEC Privatization Act (<external-xref legal-doc="usc" parsable-cite="usc/42/2297h-10">42 U.S.C. 2297h–10</external-xref>) is amended by striking subsections (d), (e), and (f) and inserting the following:</text> <quoted-block id="H9A2EAD72ED204F4389508482583DAFE2" style="OLC"> <paragraph id="HF302E04183684B22A90045EB1EFBEFA2" indent="up1"><enum>(3)</enum><text>The Secretary may transfer to the Corporation, notwithstanding subsections (b)(2) and (d), natural uranium in amounts sufficient to fulfill the Department of Energy’s commitments under Article 4(B) of the Agreement between the Department and the Corporation dated June 17, 2002.</text></paragraph> <subsection id="H3C71CEBF014941289C8DB842A595B07E"><enum>(d)</enum><header>Inventory Sales</header> <paragraph id="H74BEB2E6079F440CB826ED7DDC39124E" display-inline="yes-display-inline"><enum>(1)</enum><text>In addition to the transfers and sales authorized under subsections (b) and (c) and under paragraph (5) of this subsection, the United States Government may transfer or sell uranium in any form subject to paragraphs (2), (3), and (4).</text></paragraph> <paragraph id="HCCC5E6D496F04DD8B167C5F1FCAEE8C" indent="up1"><enum>(2)</enum><text>Except as provided in subsections (b) and (c) and paragraph (5) of this subsection, no sale or transfer of uranium shall be made under this subsection by the United States Government unless—</text> <subparagraph id="HAEDACE9A1DFE4029BBE3D361B9C5ADD8"><enum>(A)</enum><text>the President determines that the material is not necessary for national security needs and the sale or transfer has no adverse impact on implementation of existing government-to-government agreements;</text></subparagraph> <subparagraph id="H5650B2C7862E437680DA043F34D7A32"><enum>(B)</enum><text>the price paid to the appropriate Federal agency, if the transaction is a sale, will not be less than the fair market value of the material; and</text></subparagraph> <subparagraph id="H39461558F0C947E19809B4E70833CC1D"><enum>(C)</enum><text>the sale or transfer to commercial nuclear power end users is made pursuant to a contract of at least 3 years' duration.</text></subparagraph></paragraph> <paragraph id="H9B636EF5298B44C7ACD0B51D15B31173" indent="up1"><enum>(3)</enum><text>Except as provided in paragraph (5), the United States Government shall not make any transfer or sale of uranium in any form under this subsection that would cause the total amount of uranium transferred or sold pursuant to this subsection that is delivered for consumption by commercial nuclear power end users to exceed—</text> <subparagraph id="H6E820ED525B241B7944CD1E3D6109EA4"><enum>(A)</enum><text>3,000,000 pounds of U<subscript>3</subscript> O<subscript>8</subscript> equivalent in fiscal year 2004, 2005, 2006, 2007, 2008, or 2009;</text></subparagraph> <subparagraph id="H6E342C15A11342820085B7F41B13D4CB"><enum>(B)</enum><text>5,000,000 pounds of U<subscript>3</subscript>O<subscript>8</subscript> equivalent in fiscal year 2010 or 2011;</text></subparagraph> <subparagraph id="H2B1D83B1140545D29637889B96365387"><enum>(C)</enum><text>7,000,000 pounds of U<subscript>3</subscript>O<subscript>8</subscript> equivalent in fiscal year 2012; and</text></subparagraph> <subparagraph id="H34DBFAB6816B40218BB795D921F1C11F"><enum>(D)</enum><text>10,000,000 pounds of U<subscript>3</subscript>O<subscript>8</subscript> equivalent in fiscal year 2013 or any fiscal year thereafter.</text></subparagraph></paragraph> <paragraph id="H89DB11F28E45403100B6009614582F2B" indent="up1"><enum>(4)</enum><text>Except for sales or transfers under paragraph (5), for the purposes of this subsection, the recovery of uranium from uranium bearing materials transferred or sold by the United States Government to the domestic uranium industry shall be the preferred method of making uranium available. The recovered uranium shall be counted against the annual maximum deliveries set forth in this section, when such uranium is sold to end users.</text></paragraph> <paragraph id="H685BE57961AA495EB67E4E5D19858683" indent="up1"><enum>(5)</enum><text>The United States Government may make the following sales and transfers:</text> <subparagraph id="H9F78F55C45304E64B893BEDE2592334F"><enum>(A)</enum><text>Sales or transfers to a Federal agency if the material is transferred for the use of the receiving agency without any resale or transfer to another entity and the material does not meet commercial specifications.</text></subparagraph> <subparagraph id="HBD80A1485939454DB70133D3C4CE2387"><enum>(B)</enum><text>Sales or transfers to any person for national security purposes, as determined by the Secretary.</text></subparagraph> <subparagraph id="H11EE8FF52B274601AB002EC49FD8FF55"><enum>(C)</enum><text>Sales or transfers to any State or local agency or nonprofit, charitable, or educational institution for use other than the generation of electricity for commercial use.</text></subparagraph> <subparagraph id="HC423539F6C684C2689F4793D2886D581"><enum>(D)</enum><text>Sales or transfers to the Department of Energy research reactor sales program.</text></subparagraph> <subparagraph id="H734C2C2009784174A73564052E4233C4"><enum>(E)</enum><text>Sales or transfers, at fair market value, for emergency purposes in the event of a disruption in supply to commercial nuclear power end users in the United States.</text></subparagraph> <subparagraph id="H46E77BBBE768444693B7E3AE7D967B1D"><enum>(F)</enum><text>Sales or transfers, at fair market value, for use in a commercial reactor in the United States with nonstandard fuel requirements.</text></subparagraph> <subparagraph id="H8B7175616049420D8D7F17005B438F91"><enum>(G)</enum><text>Sales or transfers provided for under law for use by the Tennessee Valley Authority in relation to the Department of Energy’s highly enriched uranium or tritium programs.</text></subparagraph></paragraph> <paragraph id="H7331B93C519445AD96F2FFD9E39AD70" indent="up1"><enum>(6)</enum><text>For purposes of this subsection, the term <quote>United States Government</quote> does not include the Tennessee Valley Authority.</text></paragraph></subsection> <subsection id="H91161391E4C84BF6AE7768CCCFD2F4EB"><enum>(e)</enum><header>Savings provision</header><text>Nothing in this subchapter modifies the terms of the Russian HEU Agreement.</text></subsection> <subsection id="HF3CF10950D8E41B19B9CF2C8B1CE431C"><enum>(f)</enum><header>Services</header><text>Notwithstanding any other provision of this section, if the Secretary determines that the Corporation has failed, or may fail, to perform any obligation under the Agreement between the Department of Energy and the Corporation dated June 17, 2002, and as amended thereafter, which failure could result in termination of the Agreement, the Secretary shall notify Congress, in such a manner that affords Congress an opportunity to comment, prior to a determination by the Secretary whether termination, waiver, or modification of the Agreement is required. The Secretary is authorized to take such action as he determines necessary under the Agreement to terminate, waive, or modify provisions of the Agreement to achieve its purposes.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H4267A58E86AC4FAA94F8E6991C8BB515"><enum>(b)</enum><header>Report</header><text>Not later than 3 years after the date of enactment of this Act, the Secretary of Energy shall report to Congress on the implementation of this section. The report shall include a discussion of available excess uranium inventories; all sales or transfers made by the United States Government; the impact of such sales or transfers on the domestic uranium industry, the spot market uranium price, and the national security interests of the United States; and any steps taken to remediate any adverse impacts of such sales or transfers.</text></subsection></section> <section id="HDA8761D965FF4A60A566C283F43E2221"><enum>631.</enum><header>Cooperative research and development and special demonstration projects for the uranium mining industry</header> <subsection id="H1F762EC6DCE7439DAAFD19CDA3009511"><enum>(a)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary of Energy $10,000,000 for each of fiscal years 2004, 2005, and 2006 for—</text> <paragraph id="HF4A98207A0D549079884815D61F9D169"><enum>(1)</enum><text>cooperative, cost-shared agreements between the Department of Energy and domestic uranium producers to identify, test, and develop improved in situ leaching mining technologies, including low-cost environmental restoration technologies that may be applied to sites after completion of in situ leaching operations; and</text></paragraph> <paragraph id="HB504733D85964507BDEFFFFF902DCBE5"><enum>(2)</enum><text>funding for competitively selected demonstration projects with domestic uranium producers relating to—</text> <subparagraph id="HF1D3254742284CF68DEE877B70569512"><enum>(A)</enum><text>enhanced production with minimal environmental impacts;</text></subparagraph> <subparagraph id="HC395C546880842F7B6C1DA47480885B9"><enum>(B)</enum><text>restoration of well fields; and</text></subparagraph> <subparagraph id="HD0FD0B1C4D974651AA69434580444161"><enum>(C)</enum><text>decommissioning and decontamination activities.</text></subparagraph></paragraph></subsection> <subsection id="HCFC83F0F36304B9984A1587B34871912"><enum>(b)</enum><header>Domestic uranium producer</header><text>For purposes of this section, the term <quote>domestic uranium producer</quote> has the meaning given that term in section 1018(4) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/2296b-7">42 U.S.C. 2296b–7(4)</external-xref>), except that the term shall not include any producer that has not produced uranium from domestic reserves on or after July 30, 1998.</text></subsection> <subsection id="HD510865DEFF2428592F2BDFC55B26B8E"><enum>(c)</enum><header>Limitation</header><text>No activities funded under this section may be carried out in the State of New Mexico.</text></subsection></section> <section id="H06B1667422DA450500F10006EE530D7"><enum>632.</enum><header>Whistleblower protection</header> <subsection id="H49E6C5B80D9044008D925EE1DA0000C2"><enum>(a)</enum><header>Definition of employer</header><text>Section 211(a)(2) of the Energy Reorganization Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/42/5851">42 U.S.C. 5851(a)(2)</external-xref>) is amended—</text> <paragraph id="H1CF829D0C40142A7968F7DD5A7F6E0FD"><enum>(1)</enum><text>in subparagraph (C), by striking <quote>and</quote> at the end;</text></paragraph> <paragraph id="H84211A735318452AB400407E5DFF152C"><enum>(2)</enum><text>in subparagraph (D), by striking the period at the end and inserting <quote>; and</quote> and</text></paragraph> <paragraph id="HDEE61A6BC2E6483D9CB25410A54B2416"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block id="H64DA19F88ACE4FCABC70207C2F9E01B2" style="OLC"> <subparagraph id="H334D6E5A9CDA44C18B4FAF65D6D6004B"><enum>(E)</enum><text>a contractor or subcontractor of the Commission.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H27D95119E6304151873CF4DA9B46BDAB"><enum>(b)</enum><header>De novo review</header><text>Subsection (b) of such section 211 is amended by adding at the end the following new paragraph:</text> <quoted-block id="H1F1CB163A8AA413E85E4D64249BCF42E" style="OLC"> <paragraph id="HE65F3AAC29FB43C280DCD96153718DF7"><enum>(4)</enum><text>If the Secretary has not issued a final decision within 540 days after the filing of a complaint under paragraph (1), and there is no showing that such delay is due to the bad faith of the person seeking relief under this paragraph, such person may bring an action at law or equity for de novo review in the appropriate district court of the United States, which shall have jurisdiction over such an action without regard to the amount in controversy.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="H437CF1281E5A46348FA4AB8FAD137DC5"><enum>633.</enum><header>Medical isotope production</header><text display-inline="no-display-inline">Section 134 of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2160d">42 U.S.C. 2160d</external-xref>) is amended—</text> <paragraph id="H66A7CF4BD57343C1B303DC8B1D498122"><enum>(1)</enum><text>in subsection a., by striking <quote>a. The Commission</quote> and inserting <quote>a. <header-in-text level="subsection">In General</header-in-text>.—Except as provided in subsection b., the Commission</quote>;</text></paragraph> <paragraph id="H2244496251AD45A1A20091AECC271E99"><enum>(2)</enum><text>by redesignating subsection b. as subsection c.; and</text></paragraph> <paragraph id="H2336CD4F789A417396AF77C6F399D794"><enum>(3)</enum><text>by inserting after subsection a. the following:</text> <quoted-block style="other" id="H9C20492CD4A44E4EBF6E3B36D396D8A4" display-inline="no-display-inline" other-style="nuclear"> <subsection id="HAC427CD3CD4B4F0C821101CEA0A9FE10"><enum>b.</enum><header>Medical Isotope Production</header> <paragraph id="HF2D68DD8D85F4144927F53D6AC11D643"><enum>(1)</enum><header>Definitions</header><text>In this subsection:</text> <subparagraph id="HFDEA84508F9B475797F6718024E5DE31"><enum>(A)</enum><header>Highly enriched uranium</header><text>The term <quote>highly enriched uranium</quote> means uranium enriched to include concentration of U–235 above 20 percent.</text></subparagraph> <subparagraph id="H5F43B1496B6D4D41AF337885CC157CA"><enum>(B)</enum><header>Medical isotope</header><text>The term <quote>medical isotope</quote> includes Molybdenum 99, Iodine 131, Xenon 133, and other radioactive materials used to produce a radiopharmaceutical for diagnostic, therapeutic procedures or for research and development.</text></subparagraph> <subparagraph id="HB5AD4E068F7247D1B203127B70BF8740"><enum>(C)</enum><header>Radiopharmaceutical</header><text>The term <quote>radiopharmaceutical</quote> means a radioactive isotope that—</text> <clause id="H98BA1F36F2B64B23B26B18AD4ED1F979"><enum>(i)</enum><text>contains byproduct material combined with chemical or biological material; and</text></clause> <clause id="H47ECD9990E2E4DCAACD39B8DDFC5247"><enum>(ii)</enum><text>is designed to accumulate temporarily in a part of the body for therapeutic purposes or for enabling the production of a useful image for use in a diagnosis of a medical condition.</text></clause></subparagraph> <subparagraph id="H11A7F383EA3542789BE6F8054375ECD"><enum>(D)</enum><header>Recipient country</header><text>The term <quote>recipient country</quote> means Canada, Belgium, France, Germany, and the Netherlands.</text></subparagraph></paragraph> <paragraph id="HAA35D494B66442E39BF912C4161E6F00"><enum>(2)</enum><header>Licenses</header><text>The Commission may issue a license authorizing the export (including shipment to and use at intermediate and ultimate consignees specified in the license) to a recipient country of highly enriched uranium for medical isotope production if, in addition to any other requirements of this Act (except subsection a.), the Commission determines that—</text> <subparagraph id="H04D99CA59CB24C94003E713F68C977B3"><enum>(A)</enum><text>a recipient country that supplies an assurance letter to the United States Government in connection with the consideration by the Commission of the export license application has informed the United States Government that any intermediate consignees and the ultimate consignee specified in the application are required to use the highly enriched uranium solely to produce medical isotopes; and</text></subparagraph> <subparagraph id="HBB8791ADCBB742169880096D6B1BA2B8"><enum>(B)</enum><text>the highly enriched uranium for medical isotope production will be irradiated only in a reactor in a recipient country that—</text> <clause id="HFB2CB5CA25B348C385CA29C3EC105981"><enum>(i)</enum><text>uses an alternative nuclear reactor fuel; or</text></clause> <clause id="H9C00A3A0131B4E88AEB7B373EDC1B9D"><enum>(ii)</enum><text>is the subject of an agreement with the United States Government to convert to an alternative nuclear reactor fuel when alternative nuclear reactor fuel can be used in the reactor.</text></clause></subparagraph></paragraph> <paragraph id="HC395C77A660D49C7A1119BB3EB420020"><enum>(3)</enum><header>Review of physical protection requirements</header> <subparagraph id="HB4B3C578817A48D185A01B7B82A41FA8" display-inline="no-display-inline"><enum>(A)</enum><header>In general</header><text>The Commission shall review the adequacy of physical protection requirements that, as of the date of an application under paragraph (2), are applicable to the transportation and storage of highly enriched uranium for medical isotope production or control of residual material after irradiation and extraction of medical isotopes.</text></subparagraph> <subparagraph id="H401A8F52D8144C7A87959F62DCDFA6E0"><enum>(B)</enum><header>Imposition of additional requirements</header><text>If the Commission determines that additional physical protection requirements are necessary (including a limit on the quantity of highly enriched uranium that may be contained in a single shipment), the Commission shall impose such requirements as license conditions or through other appropriate means.</text></subparagraph></paragraph> <paragraph id="H94B35224278443808BC72D594FC425B5"><enum>(4)</enum><header>First report to Congress</header> <subparagraph id="H377D5481D0414562B2FEFFB257C714CE"><enum>(A)</enum><header>NAS study</header><text>The Secretary shall enter into an arrangement with the National Academy of Sciences to conduct a study to determine—</text> <clause id="HD5ACBE9A3E1E4F5BAE024857B4B6E77E"><enum>(i)</enum><text>the feasibility of procuring supplies of medical isotopes from commercial sources that do not use highly enriched uranium;</text></clause> <clause id="HBDE917AEE8AD4AC68FDF4D9B3BBAD89F"><enum>(ii)</enum><text>the current and projected demand and availability of medical isotopes in regular current domestic use;</text></clause> <clause id="H6F9A871227AD42C2A1C10002D5997B37"><enum>(iii)</enum><text>the progress that is being made by the Department of Energy and others to eliminate all use of highly enriched uranium in reactor fuel, reactor targets, and medical isotope production facilities; and</text></clause> <clause id="HB1C9DD6802AD4C2DBC6152D7CA4800B1"><enum>(iv)</enum><text>the potential cost differential in medical isotope production in the reactors and target processing facilities if the products were derived from production systems that do not involve fuels and targets with highly enriched uranium.</text></clause></subparagraph> <subparagraph id="H2A9BFA5D4C7C4E929026C59034D45600"><enum>(B)</enum><header>Feasibility</header><text>For the purpose of this subsection, the use of low enriched uranium to produce medical isotopes shall be determined to be feasible if—</text> <clause id="H9C05AFBEA6C14FA198B3AB99C298864"><enum>(i)</enum><text>low enriched uranium targets have been developed and demonstrated for use in the reactors and target processing facilities that produce significant quantities of medical isotopes to serve United States needs for such isotopes;</text></clause> <clause id="HFF12F08592B14472000159F9CAE0FF71"><enum>(ii)</enum><text>sufficient quantities of medical isotopes are available from low enriched uranium targets and fuel to meet United States domestic needs; and</text></clause> <clause id="H3524375CDE2647E7B796FF77753BC99F"><enum>(iii)</enum><text>the average anticipated total cost increase from production of medical isotopes in such facilities without use of highly enriched uranium is less than 10 percent.</text></clause></subparagraph> <subparagraph id="H14F612AAEF584E8BBDCADD33F2E9BC4D"><enum>(C)</enum><header>Report by the Secretary</header><text>Not later than 5 years after the date of enactment of the Energy Policy Act of 2003, the Secretary shall submit to Congress a report that—</text> <clause id="H707CAC053E7D4BB886E3B1595FD0E476"><enum>(i)</enum><text>contains the findings of the National Academy of Sciences made in the study under subparagraph (A); and</text></clause> <clause id="H3418DBAF8CA24E0D9C00CF47DD2436D1"><enum>(ii)</enum><text>discloses the existence of any commitments from commercial producers to provide domestic requirements for medical isotopes without use of highly enriched uranium consistent with the feasibility criteria described in subparagraph (B) not later than the date that is 4 years after the date of submission of the report.</text></clause></subparagraph></paragraph> <paragraph id="H1CB0B3E13B264751954C88CCFA38C705"><enum>(5)</enum><header>Second report to Congress</header><text>If the study of the National Academy of Sciences determines under paragraph (4)(A)(i) that the procurement of supplies of medical isotopes from commercial sources that do not use highly enriched uranium is feasible, but the Secretary is unable to report the existence of commitments under paragraph (4)(C)(ii), not later than the date that is 6 years after the date of enactment of the Energy Policy Act of 2003, the Secretary shall submit to Congress a report that describes options for developing domestic supplies of medical isotopes in quantities that are adequate to meet domestic demand without the use of highly enriched uranium consistent with the cost increase described in paragraph (4)(B)(iii).</text></paragraph> <paragraph id="HCEA07B2CD08945FC8C9B07C50245A100"><enum>(6)</enum><header>Certification</header><text>At such time as commercial facilities that do not use highly enriched uranium are capable of meeting domestic requirements for medical isotopes, within the cost increase described in paragraph (4)(B)(iii) and without impairing the reliable supply of medical isotopes for domestic utilization, the Secretary shall submit to Congress a certification to that effect.</text></paragraph> <paragraph id="H09E44A78AE8D481F9E5CF38F7BCC9273"><enum>(7)</enum><header>Sunset provision</header><text>After the Secretary submits a certification under paragraph (6), the Commission shall, by rule, terminate its review of export license applications under this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H69B2986468DD42ED935105B9FB10E518"><enum>634.</enum><header>Fernald byproduct material</header><text display-inline="no-display-inline"> Notwithstanding any other law, the material in the concrete silos at the Fernald uranium processing facility managed on the date of enactment of this Act by the Department of Energy shall be considered byproduct material (as defined by section 11 e.(2) of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2014">42 U.S.C. 2014(e)(2)</external-xref>)). The Department of Energy may dispose of the material in a facility regulated by the Nuclear Regulatory Commission or by an Agreement State. If the Department of Energy disposes of the material in such a facility, the Nuclear Regulatory Commission or the Agreement State shall regulate the material as byproduct material under that Act. This material shall remain subject to the jurisdiction of the Department of Energy until it is received at a commercial, Nuclear Regulatory Commission-licensed, or Agreement State-licensed facility, at which time the material shall be subject to the health and safety requirements of the Nuclear Regulatory Commission or the Agreement State with jurisdiction over the disposal site.</text></section> <section id="HF8D12F0646DC4A569D49A8E21433F8BA"><enum>635.</enum><header>Safe disposal of greater-than-class c radioactive waste</header> <subsection id="HCED514A5D1104DA9A094EC547317B8"><enum>(a)</enum><header>Designation of responsibility</header><text>The Secretary of Energy shall designate an Office within the Department of Energy to have the responsibility for activities needed to develop a new, or use an existing, facility for safely disposing of all low-level radioactive waste with concentrations of radionuclides that exceed the limits established by the Nuclear Regulatory Commission for Class C radioactive waste (referred to in this section as <quote>GTCC waste</quote>).</text></subsection> <subsection id="HF17B073883A5472CBFCF014277BFA05B"><enum>(b)</enum><header>Comprehensive plan</header><text>The Secretary of Energy shall develop a comprehensive plan for permanent disposal of GTCC waste which includes plans for a disposal facility. This plan shall be transmitted to Congress in a series of reports, including the following:</text> <paragraph id="H639241EBE53E4E5F875FA3F5BEFB000"><enum>(1)</enum><header>Report on short-term plan</header><text>Not later than 180 days after the date of enactment of this Act, the Secretary of Energy shall submit to Congress a plan describing the Secretary’s operational strategy for continued recovery and storage of GTCC waste until a permanent disposal facility is available.</text></paragraph> <paragraph id="H55B20773DE3140A3AF6CEEA9DAD0FC61"><enum>(2)</enum><header>Update of 1987 report</header> <subparagraph id="H3F8C2374AE3B43E5ABA7F2ECEE898B65"><enum>(A)</enum><header>In general</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary of Energy shall submit to Congress an update of the Secretary’s February 1987 report submitted to Congress that made comprehensive recommendations for the disposal of GTCC waste.</text></subparagraph> <subparagraph id="H0A24C90AC6764FD092C12872776400F2"><enum>(B)</enum><header>Contents</header><text>The update under this paragraph shall contain—</text> <clause id="H0D61BEFA44F342E988AF45510567F6E9"><enum>(i)</enum><text>a detailed description and identification of the GTCC waste that is to be disposed;</text></clause> <clause id="HE92F23675A3A4719B5C200E4899493C7"><enum>(ii)</enum><text>a description of current domestic and international programs, both Federal and commercial, for management and disposition of GTCC waste;</text></clause> <clause id="HC00A513AD2954B0E9641B49D0075A5CA"><enum>(iii)</enum><text>an identification of the Federal and private options and costs for the safe disposal of GTCC waste;</text></clause> <clause id="H9AD927B5BCC840869745D13B7B00006D"><enum>(iv)</enum><text>an identification of the options for ensuring that, wherever possible, generators and users of GTCC waste bear all reasonable costs of waste disposal;</text></clause> <clause id="H7FADD61895F64F56A0DF251FF585DB1"><enum>(v)</enum><text>an identification of any new statutory authority required for disposal of GTCC waste; and</text></clause> <clause id="HFB41DBA309744F909D1C9E6C4E10C4D"><enum>(vi)</enum><text>in coordination with the Environmental Protection Agency and the Nuclear Regulatory Commission, an identification of any new regulatory guidance needed for the disposal of GTCC waste.</text></clause></subparagraph></paragraph> <paragraph id="HF68CC1F6BFDF437BA37BE32032FFAEA"><enum>(3)</enum><header>Report on cost and schedule for completion of environmental impact statement and record of decision</header><text>Not later than 180 days after the date of submission of the update required under paragraph (2), the Secretary of Energy shall submit to Congress a report containing an estimate of the cost and schedule to complete a draft and final environmental impact statement and to issue a record of decision for a permanent disposal facility, utilizing either a new or existing facility, for GTCC waste.</text></paragraph></subsection></section> <section id="HC4CAFDE65DD641968E39EFEBA0C45D36"><enum>636.</enum><header>Prohibition on nuclear exports to countries that sponsor terrorism</header> <subsection id="H203D9332A3684BB4B49395BE81C6D6EE"><enum>(a)</enum><header>In general</header><text>Section 129 of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2158">42 U.S.C. 2158</external-xref>) is amended—</text> <paragraph id="H5C98C41C1C6D458586B20089F8291317"><enum>(1)</enum><text>by inserting <quote>a.</quote> before <quote>No nuclear materials and equipment</quote>; and</text></paragraph> <paragraph id="H98006CAAFF59429C90BAE347BD6EBBDF"><enum>(2)</enum><text>by adding at the end the following new subsection:</text> <quoted-block id="H40455D6924954A919B9B2E79276F11B" style="other" other-style="nuclear"> <subsection id="HEF3091F0A6F04FE897A703BF13541B71"><enum>b.</enum> <paragraph id="HB1C451DCDB1B4F4C82CC0555314BD203" display-inline="yes-display-inline"><enum>(1)</enum><text>Notwithstanding any other provision of law, including specifically section 121 of this Act, and except as provided in paragraphs (2) and (3), no nuclear materials and equipment or sensitive nuclear technology, including items and assistance authorized by section 57 b. of this Act and regulated under part 810 of title 10, Code of Federal Regulations, and nuclear-related items on the Commerce Control List maintained under part 774 of title 15 of the Code of Federal Regulations, shall be exported or reexported, or transferred or retransferred whether directly or indirectly, and no Federal agency shall issue any license, approval, or authorization for the export or reexport, or transfer, or retransfer, whether directly or indirectly, of these items or assistance (as defined in this paragraph) to any country whose government has been identified by the Secretary of State as engaged in state sponsorship of terrorist activities (specifically including any country the government of which has been determined by the Secretary of State under section 620A(a) of the Foreign Assistance Act of 1961 (<external-xref legal-doc="usc" parsable-cite="usc/22/2371">22 U.S.C. 2371(a)</external-xref>), section 6(j)(1) of the Export Administration Act of 1979 (<external-xref legal-doc="usc-appendix" parsable-cite="usc-appendix/50/2405">50 U.S.C. App. 2405(j)(1)</external-xref>), or section 40(d) of the Arms Export Control Act (<external-xref legal-doc="usc" parsable-cite="usc/22/2780">22 U.S.C. 2780(d)</external-xref>) to have repeatedly provided support for acts of international terrorism).</text></paragraph> <paragraph id="H22D8B1EDB0514F24B9D4459C818EEB1" indent="up1"><enum>(2)</enum><text>This subsection shall not apply to exports, reexports, transfers, or retransfers of radiation monitoring technologies, surveillance equipment, seals, cameras, tamper-indication devices, nuclear detectors, monitoring systems, or equipment necessary to safely store, transport, or remove hazardous materials, whether such items, services, or information are regulated by the Department of Energy, the Department of Commerce, or the Nuclear Regulatory Commission, except to the extent that such technologies, equipment, seals, cameras, devices, detectors, or systems are available for use in the design or construction of nuclear reactors or nuclear weapons.</text></paragraph> <paragraph id="HE0D38CB575B245208DB9B83586D4DC9D" indent="up1"><enum>(3)</enum><text>The President may waive the application of paragraph (1) to a country if the President determines and certifies to Congress that the waiver will not result in any increased risk that the country receiving the waiver will acquire nuclear weapons, nuclear reactors, or any materials or components of nuclear weapons and—</text> <subparagraph id="H2ED2D4DF885344E2917CA37B8682FA9"><enum>(A)</enum><text>the government of such country has not within the preceding 12-month period willfully aided or abetted the international proliferation of nuclear explosive devices to individuals or groups or willfully aided and abetted an individual or groups in acquiring unsafeguarded nuclear materials;</text></subparagraph> <subparagraph id="HE84607F8720043ABA41C08E9729931C5"><enum>(B)</enum><text>in the judgment of the President, the government of such country has provided adequate, verifiable assurances that it will cease its support for acts of international terrorism;</text></subparagraph> <subparagraph id="HC580BCBDF2A841E8A18B341EC59FADA4"><enum>(C)</enum><text>the waiver of that paragraph is in the vital national security interest of the United States; or</text></subparagraph> <subparagraph id="H71F9D8D34E4740AF88CF4CB900D85773"><enum>(D)</enum><text>such a waiver is essential to prevent or respond to a serious radiological hazard in the country receiving the waiver that may or does threaten public health and safety.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HECD1EDA628264628A4E570ECC0DA761B"><enum>(b)</enum><header>Applicability to exports approved for transfer but Not transferred</header><text>Subsection b. of section 129 of Atomic Energy Act of 1954, as added by subsection (a) of this section, shall apply with respect to exports that have been approved for transfer as of the date of the enactment of this Act but have not yet been transferred as of that date.</text></subsection></section> <section id="HA116AC3360B848B900B9CBCAE06BFE2"><enum>637.</enum><header>Uranium enrichment facilities</header> <subsection id="H54193E2F0CAC4E039D09C7F4D1FE1F0"><enum>(a)</enum><header>Nuclear regulatory commission review of applications</header> <paragraph id="H50931807BFDE4925BB40AA070086961C"><enum>(1)</enum><header>In general</header><text>In order to facilitate a timely review and approval of an application in a proceeding for a license for the construction and operation of a uranium enrichment facility under sections 53 and 63 of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2073">42 U.S.C. 2073</external-xref>, 2093) (referred to in this subsection as a <quote>covered proceeding</quote>), the Nuclear Regulatory Commission shall, not later than 30 days after the receipt of the application, establish, by order, the schedule for the conduct of any hearing that may be requested by any person whose interest may be affected by the covered proceeding.</text></paragraph> <paragraph id="H41F6E4A376854785B5069503A51DCE39"><enum>(2)</enum><header>Final agency decision</header><text>The schedule shall provide that a final decision by the Commission on the application shall be made not later than the date that is 2 years after the date of submission of the application by the applicant.</text></paragraph> <paragraph id="H5AA890D24443456696391790EA3762C8"><enum>(3)</enum><header>Compliance with schedule</header> <subparagraph id="H656006C5F7A14F169ED28DFB3F1020BB"><enum>(A)</enum><header>In general</header><text>The Commission shall establish a process to assess compliance with the schedule established under paragraph (1) on an ongoing basis during the course of the review of the application, including ensuring compliance with schedules and milestones that are established for the conduct of any covered proceeding by the Atomic Safety and Licensing Board.</text></subparagraph> <subparagraph id="H2BCF68C696E2438D83916E99B6CBD21"><enum>(B)</enum><header>Report</header><text>The Commission shall submit to Congress on a bimonthly basis a report describing the status of compliance with the schedule established under paragraph (1), including a description of the status of actions required to be completed pursuant to the schedule by officers and employees of—</text> <clause id="H2C197AAADE2B442E00B4B97B19155589"><enum>(i)</enum><text>the Commission in undertaking the safety and environmental review of applications; and</text></clause> <clause id="H4274BDD358464C6AB9DD2F308C573897"><enum>(ii)</enum><text>the Atomic Safety and Licensing Board in the conduct of any covered proceeding.</text></clause></subparagraph></paragraph> <paragraph id="HDD1D3678E6A64AB4ABEBB6F65E6C07CD"><enum>(4)</enum><header>Environmental review</header> <subparagraph id="H6C620A75987F42CC9E70B87FD2756E13"><enum>(A)</enum><header>In general</header><text>In evaluating an application under the National Environmental Policy Act of 1969 (<external-xref legal-doc="usc" parsable-cite="usc/42/4321">42 U.S.C. 4321 et seq.</external-xref>) for licensing of a facility in a covered proceeding, the Commission shall limit the consideration of need to whether the licensing of the facility would advance the national interest of encouraging in the United States—</text> <clause id="H7EF67D6E22824EA1806DB6D41D841E95"><enum>(i)</enum><text>additional secure, reliable uranium enrichment capacity;</text></clause> <clause id="H2B1EF35FA46945779C971DCC1E2C37D2"><enum>(ii)</enum><text>diverse supplies and suppliers of uranium enrichment capacity; and</text></clause> <clause id="HF895CDEB0C8447E9B91C003175CF721B"><enum>(iii)</enum><text>the deployment of advanced centrifuge enrichment technology.</text></clause></subparagraph> <subparagraph id="H191FC4FC933848D9A9BF7D50E3A02ED1"><enum>(B)</enum><header>Comment</header><text>In carrying out subparagraph (A), the Commission shall consider and solicit the views of other affected Federal agencies.</text></subparagraph> <subparagraph id="HE0DC88BED5B64F709F5D1CDC73CCD54"><enum>(C)</enum><header>Atomic safety and licensing board</header> <clause id="H788E9EDB17EF489F96B2502B62053DC3"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), in any covered proceeding, the Commission shall allow the litigation and resolution by the Atomic Safety and Licensing Board of issues arising under the National Environmental Policy Act of 1969 (<external-xref legal-doc="usc" parsable-cite="usc/42/4321">42 U.S.C. 4321 et seq.</external-xref>), on the basis of information submitted by the applicant in its environmental report, prior to publication of any required environmental impact statement.</text></clause> <clause id="H8A513D4CE27046F5A265AE3EF2D2B798"><enum>(ii)</enum><header>Exceptions</header><text>On the publication of any required environmental impact statement, issues may be proffered for resolution by the Atomic Safety and Licensing Board only if information or conclusions in the environmental impact statement differ significantly from the information or conclusions in the environmental report submitted by the applicant.</text></clause></subparagraph> <subparagraph id="H0418A2207B6F41C1008DCEBE448E1CBF"><enum>(D)</enum><header>Environmental justice</header><text>In a covered proceeding, the Commission shall apply the criteria in Appendix C of the final report entitled <quote>Environmental Review Guidance for Licensing Actions Associated with NMSS Programs</quote> (NUREG-1748), published in August 2003, in any required review of environmental justice.</text></subparagraph></paragraph> <paragraph id="HB4819E4E8F5F450391F6A1E005BB17"><enum>(5)</enum><header>Low-level waste</header><text>In any covered proceeding, the Commission shall—</text> <subparagraph id="HCF66154C3E324C1CB823E985B566F9D"><enum>(A)</enum><text>deem the obligation of the Secretary of Energy pursuant to section 3113 of the USEC Privitization Act (42 U.S.C. 2297 h-11) to constitute a plausible strategy with regard to the disposition of depleted uranium generated by such facility; and</text></subparagraph> <subparagraph id="H5D19F1B0410E4F9B9DF9464BA192F0DE"><enum>(B)</enum><text>treat any residual material that remains following the extraction of any usable resource value from depleted uranium as low-level radioactive waste under part 61 of title 10, Code of Federal Regulations.</text></subparagraph></paragraph> <paragraph id="HDBC889DC9D4F4F73BEBDED84F95E8BA0"><enum>(6)</enum><header>Adjudicatory hearing on licensing of uranium enrichment facilities</header><text>Section 193(b) of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2243">42 U.S.C. 2243(b)</external-xref>) is amended by striking paragraph (2) and inserting the following:</text> <quoted-block id="HFECAD4BE19824B42A7B700CFCA4CA405" style="OLC"> <paragraph id="H4758FC5C3D264448978784F97D320093"><enum>(2)</enum><header>Timing</header><text>On the issuance of a final decision on the application by the Atomic Safety and Licensing Board, the Commission shall issue and make immediately effective any license for the construction and operation of a uranium enrichment facility under sections 53 and 63, on a determination by the Commission that the issuance of the license would not cause irreparable injury to the public health and safety or the common defense and security, notwithstanding the pendency before the Commission of any appeal or petition for review of any decision of the Atomic Safety and Licensing Board.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HABCA037703BE4768B716ECE185E44FE0"><enum>(b)</enum><header>Department of energy responsibilities</header> <paragraph id="H2AE125D980B04B46AD00A4D15DCB9F0"><enum>(1)</enum><header>In general</header><text>Not later than 180 days after a request is made to the Secretary of Energy by an applicant for or recipient of a license for a uranium enrichment facility under section 53, 63, or 193 of the Atomic Energy Act of 1954 ((<external-xref legal-doc="usc" parsable-cite="usc/42/2073">42 U.S.C. 2073</external-xref>, 2093, 2243), the Secretary shall enter into a memorandum of agreement with the applicant or licensee that provides a schedule for the transfer to the Secretary, not later than 5 years after the generation of any depleted uranium hexafluoride, of title and possession of the depleted uranium hexafluoride to be generated by the applicant or licensee.</text></paragraph> <paragraph id="HEA0C2E50E8504F59B032F85E8C9DA1AD"><enum>(2)</enum><header>Cost</header> <subparagraph id="H12BF6B32BF204F0082C4B4F95D11531D"><enum>(A)</enum><header>In general</header><text>Subject to subparagraphs (B) and (C), the memorandum of agreement shall specify the cost to be assessed by the Secretary for the transfer to the Secretary of the depleted uranium hexafluoride.</text></subparagraph> <subparagraph id="HC92DD12EA4304E059293BFB0C0F2CE7"><enum>(B)</enum><header>Nondiscriminatory basis</header><text>The cost shall be determined by the Secretary on a nondiscriminatory basis.</text></subparagraph> <subparagraph id="H145CD7D327984C28AC1BE31C0231306F"><enum>(C)</enum><header>Cost</header><text>Taking into account the physical and chemical characteristics of such depleted uranium hexafluoride, the cost shall not exceed the cost assessed by the Secretary for the acceptance of depleted uranium hexafluoride under—</text> <clause id="H9279B7E6AA01466FAC0716EDB0CAA748"><enum>(i)</enum><text>the memorandum of agreement between the United States Department of Energy and the United States Enrichment Corporation Relating to Depleted Uranium, dated June 30, 1998; and</text></clause> <clause id="H2EE2CB53C3E543A7AEBC56574A9F6C6"><enum>(ii)</enum><text>the Agreement Between the U.S. Department of Energy and USEC Inc., dated June 17, 2002.</text></clause></subparagraph></paragraph></subsection></section> <section id="H95CCCFEA69D24B99ABE25CF9E414CDA7"><enum>638.</enum><header>National uranium stockpile</header> <subsection id="H92E53DB97E4A44CD8B6E9F0600DACD32"><enum>(a)</enum><header>Stockpile creation</header><text>The Secretary of Energy may create a national low-enriched uranium stockpile with the goals to—</text> <paragraph id="HDF981EEBF1AB4189B822A33BC2692BAB"><enum>(1)</enum><text>enhance national energy security; and</text></paragraph> <paragraph id="HC72EAA68BCB04E99A272D1F066481F6D"><enum>(2)</enum><text>reduce global proliferation threats.</text></paragraph></subsection> <subsection id="H4FBF9252A727434C97FCAC6854B35B0"><enum>(b)</enum><header>Source of material</header><text>The Secretary shall obtain material for the stockpile from—</text> <paragraph id="H99575063296B44B4A823F7713B830000"><enum>(1)</enum><text>material derived from blend-down of Russian highly enriched uranium derived from weapons materials; and</text></paragraph> <paragraph id="H3BF0C644C1494854966671B8B8DF5302"><enum>(2)</enum><text>domestically mined and enriched uranium.</text></paragraph></subsection> <subsection id="HDE59D95D0A8E4DF797E2B906880019EA"><enum>(c)</enum><header>Limitation on sales or transfers</header><text>Sales or transfer of materials in the stockpile shall occur pursuant to section 3112 of the USEC Privitization Act (<external-xref legal-doc="usc" parsable-cite="usc/42/2297h-10">42 U.S.C. 2297h–10</external-xref>), as amended by section 630 of this Act.</text></subsection></section></subtitle> <subtitle id="H5156F9CFD80949AE892792D0F7E18282"><enum>C</enum><header>Advanced Reactor Hydrogen Cogeneration Project</header> <section id="HA5750DBB0EE342E08438E1F4DD477FD"><enum>651.</enum><header>Project establishment</header><text display-inline="no-display-inline"> The Secretary of Energy (in this subtitle referred to as the <quote>Secretary</quote>) is directed to establish an Advanced Reactor Hydrogen Cogeneration Project.</text></section> <section id="H68C003D2B2724266ABE02B9CFBFE2082"><enum>652.</enum><header>Project definition</header><text display-inline="no-display-inline"> The project shall consist of the research, development, design, construction, and operation of a hydrogen production cogeneration research facility that, relative to the current commercial reactors, enhances safety features, reduces waste production, enhances thermal efficiencies, increases proliferation resistance, and has the potential for improved economics and physical security in reactor siting. This facility shall be constructed so as to enable research and development on advanced reactors of the type selected and on alternative approaches for reactor-based production of hydrogen.</text></section> <section id="HF833299304E24C4A8E87D900004E0076"><enum>653.</enum><header>Project management</header> <subsection id="H36FEF09EB904446093522C5359C928D8"><enum>(a)</enum><header>Management</header><text>The project shall be managed within the Department by the Office of Nuclear Energy, Science, and Technology.</text></subsection> <subsection id="H8B77A6860EE2412583F571214BF9EC26"><enum>(b)</enum><header>Lead laboratory</header><text>The lead laboratory for the project, providing the site for the reactor construction, shall be the Idaho National Engineering and Environmental Laboratory (in this subtitle referred to as <quote>INEEL</quote>).</text></subsection> <subsection id="HC7D1AAD09282411698CC42E7A9E3FE18"><enum>(c)</enum><header>Steering committee</header><text>The Secretary shall establish a national steering committee with membership from the national laboratories, universities, and industry to provide advice to the Secretary and the Director of the Office of Nuclear Energy, Science, and Technology on technical and program management aspects of the project.</text></subsection> <subsection id="H9ACA290AFB104060B836ECB9015EA2F3"><enum>(d)</enum><header>Collaboration</header><text>Project activities shall be conducted at INEEL, other national laboratories, universities, domestic industry, and international partners.</text></subsection></section> <section id="H1DEB580E70484ADB905F29BDFADDE100"><enum>654.</enum><header>Project requirements</header> <subsection id="H125752836ECD4F309FE8E9622ED9B165"><enum>(a)</enum><header>Research and development</header> <paragraph id="H9D52AC72CB38416AA43B43301BCBF1D"><enum>(1)</enum><header>In general</header><text>The project shall include planning, research and development, design, and construction of an advanced, next-generation, nuclear energy system suitable for enabling further research and development on advanced reactor technologies and alternative approaches for reactor-based generation of hydrogen.</text></paragraph> <paragraph id="H377F4201AAB74F81832489E454BD60FB"><enum>(2)</enum><header>Reactor test capabilities at ineel</header><text>The project shall utilize, where appropriate, extensive reactor test capabilities resident at INEEL.</text></paragraph> <paragraph id="H38D1B2BB3C334CA08F36046922EF5163"><enum>(3)</enum><header>Alternatives</header><text>The project shall be designed to explore technical, environmental, and economic feasibility of alternative approaches for reactor-based hydrogen production.</text></paragraph> <paragraph id="H13ADBE359D3E4EF4A446C4342E30473F"><enum>(4)</enum><header>Industrial lead</header><text>The industrial lead for the project shall be a company incorporated in the United States.</text></paragraph></subsection> <subsection id="H3AF74616C2B542B5AD679315E7E57930"><enum>(b)</enum><header>International collaboration</header> <paragraph id="H2AA06A6D61D04E0195FD01D57D692E1B"><enum>(1)</enum><header>In general</header><text>The Secretary shall seek international cooperation, participation, and financial contribution in this project.</text></paragraph> <paragraph id="HFC64AF57F7844F2BAF141339F68566DC"><enum>(2)</enum><header>Assistance from international partners</header><text>The Secretary may contract for assistance from specialists or facilities from member countries of the Generation IV International Forum, the Russian Federation, or other international partners where such specialists or facilities provide access to cost-effective and relevant skills or test capabilities.</text></paragraph> <paragraph id="H34B1971C132F424D9D3BBB7E301CC0EB"><enum>(3)</enum><header>Generation iv international forum</header><text>International activities shall be coordinated with the Generation IV International Forum.</text></paragraph> <paragraph id="H6CAC0DD8F6E548658CD10048C5EAA20"><enum>(4)</enum><header>Generation iv nuclear energy systems program</header><text>The Secretary may combine this project with the Generation IV Nuclear Energy Systems Program.</text></paragraph></subsection> <subsection id="H0717A924A3B34682995600B325B1203C"><enum>(c)</enum><header>Demonstration</header><text>The overall project, which may involve demonstration of selected project objectives in a partner nation, must demonstrate both electricity and hydrogen production and may provide flexibility, where technically and economically feasible in the design and construction, to enable tests of alternative reactor core and cooling configurations.</text></subsection> <subsection id="HB4C646AE0BEF4B4AA6A362C371002DB9"><enum>(d)</enum><header>Partnerships</header><text>The Secretary shall establish cost-shared partnerships with domestic industry or international participants for the research, development, design, construction, and operation of the research facility, and preference in determining the final project structure shall be given to an overall project which retains United States leadership while maximizing cost sharing opportunities and minimizing Federal funding responsibilities.</text></subsection> <subsection id="H48C223AF1A744CE9A3E32F40384C3219"><enum>(e)</enum><header>Target date</header><text>The Secretary shall select technologies and develop the project to provide initial testing of either hydrogen production or electricity generation by 2010, or provide a report to Congress explaining why this date is not feasible.</text></subsection> <subsection id="HA27B672AB5A7491E90B51D299C6CDC9E"><enum>(f)</enum><header>Waiver of construction timelines</header><text>The Secretary is authorized to conduct the Advanced Reactor Hydrogen Cogeneration Project without the constraints of DOE Order 413.3, relating to program and project management for the acquisition of capital assets, as necessary to meet the specified operational date.</text></subsection> <subsection id="HE883A42776654715BC658F117D57CE8"><enum>(g)</enum><header>Competition</header><text>The Secretary may fund up to 2 teams for up to 1 year to develop detailed proposals for competitive evaluation and selection of a single proposal and concept for further progress. The Secretary shall define the format of the competitive evaluation of proposals.</text></subsection> <subsection id="H09CFDDC3C5B04B16A2DB83D17D35AF9E"><enum>(h)</enum><header>Use of facilities</header><text>Research facilities in industry, national laboratories, or universities either within the United States or with cooperating international partners may be used to develop the enabling technologies for the research facility. Utilization of domestic university-based facilities shall be encouraged to provide educational opportunities for student development.</text></subsection> <subsection id="H0CD7C0D79DC8418DA4A84D6583CAA552"><enum>(i)</enum><header>Role of nuclear regulatory commission</header> <paragraph id="H7378D493E1C94E939F8E0119D69BA835"><enum>(1)</enum><header>In general</header><text>The Nuclear Regulatory Commission shall have licensing and regulatory authority for any reactor authorized under this subtitle, pursuant to section 202 of the Energy Reorganization Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/42/5842">42 U.S.C. 5842</external-xref>).</text></paragraph> <paragraph id="HCAB2C56E6E6C45AFB6A3E8951C6CAA5"><enum>(2)</enum><header>Risk-based criteria</header><text>The Secretary shall seek active participation of the Nuclear Regulatory Commission throughout the project to develop risk-based criteria for any future commercial development of a similar reactor architecture.</text></paragraph></subsection> <subsection id="HA73830177A144198B854F900008C80D7"><enum>(j)</enum><header>Report</header><text>The Secretary shall develop and transmit to Congress a comprehensive project plan not later than April 30, 2004. The project plan shall be updated annually with each annual budget submission.</text></subsection></section> <section id="H2D2E896D747F45A2A96DA811CDA8CE00"><enum>655.</enum><header>Authorization of appropriations</header> <subsection id="H0586EB7CA42E495BBE3EFF64334F36F8"><enum>(a)</enum><header>Research, development, and design programs</header><text>The following sums are authorized to be appropriated to the Secretary for all activities under this subtitle except for construction activities described in subsection (b):</text> <paragraph id="HB08A6A8EF69641D29D53533D005106A3"><enum>(1)</enum><text>For fiscal year 2004, $35,000,000.</text></paragraph> <paragraph id="H9E4DD19B20264B7F8BE0E6C44614401B"><enum>(2)</enum><text>For each of fiscal years 2005 through 2008, $150,000,000.</text></paragraph> <paragraph id="H07B44A1138DA4524BCBBEEA1D2B6B30"><enum>(3)</enum><text>For fiscal years beyond 2008, such sums as are necessary.</text></paragraph></subsection> <subsection id="H70B7E322BAD54F0893F67601F09F948E"><enum>(b)</enum><header>Construction</header><text>There are authorized to be appropriated to the Secretary for all project-related construction activities, to be available until expended, $500,000,000.</text></subsection></section></subtitle> <subtitle id="H5BE87FA319B84C00003CAF31EF0000AD"><enum>D</enum><header>Nuclear Security</header> <section id="HFB9C3262BD024CD48BB40041756C01C6"><enum>661.</enum><header>Nuclear facility threats</header> <subsection id="H68B06984B9784BC7A38205C5A83650AB"><enum>(a)</enum><header>Study</header><text>The President, in consultation with the Nuclear Regulatory Commission (referred to in this subtitle as the <quote>Commission</quote>) and other appropriate Federal, State, and local agencies and private entities, shall conduct a study to identify the types of threats that pose an appreciable risk to the security of the various classes of facilities licensed by the Commission under the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2011">42 U.S.C. 2011 et seq.</external-xref>). Such study shall take into account, but not be limited to—</text> <paragraph id="HC6630C2FA5C34BC18921A2A7739D4286"><enum>(1)</enum><text>the events of September 11, 2001;</text></paragraph> <paragraph id="H70D13C31D7BA4FA3BDC8773136838CFC"><enum>(2)</enum><text>an assessment of physical, cyber, biochemical, and other terrorist threats;</text></paragraph> <paragraph id="H00CE9C7839644EFCAAF8FFBC3C8E2009"><enum>(3)</enum><text>the potential for attack on facilities by multiple coordinated teams of a large number of individuals;</text></paragraph> <paragraph id="H137FE7E1B67D4E7685A7FF40DF1F2292"><enum>(4)</enum><text>the potential for assistance in an attack from several persons employed at the facility;</text></paragraph> <paragraph id="HEDCE3D2815814BB4913FBB15720919E3"><enum>(5)</enum><text>the potential for suicide attacks;</text></paragraph> <paragraph id="H2DDB426596814D0AB74E99D06334A713"><enum>(6)</enum><text>the potential for water-based and air-based threats;</text></paragraph> <paragraph id="H0BE2BF988CC34EDFA1D726418D2F54BB"><enum>(7)</enum><text>the potential use of explosive devices of considerable size and other modern weaponry;</text></paragraph> <paragraph id="H69036957C34D47D39DE2539901FC62F0"><enum>(8)</enum><text>the potential for attacks by persons with a sophisticated knowledge of facility operations;</text></paragraph> <paragraph id="H3D37005FEE164BFAA53028E015718175"><enum>(9)</enum><text>the potential for fires, especially fires of long duration;</text></paragraph> <paragraph id="H69A611F32AD34935B74B29ADD54F477E"><enum>(10)</enum><text>the potential for attacks on spent fuel shipments by multiple coordinated teams of a large number of individuals;</text></paragraph> <paragraph id="H5EEA6772CAAD41159EFAF1D2E0426FD8"><enum>(11)</enum><text>the adequacy of planning to protect the public health and safety at and around nuclear facilities, as appropriate, in the event of a terrorist attack against a nuclear facility; and</text></paragraph> <paragraph id="HEA5866E0302943069839C303666FF389"><enum>(12)</enum><text>the potential for theft and diversion of nuclear materials from such facilities.</text></paragraph></subsection> <subsection id="H7A343A5A9BD84FD997004B8D6B7175C7"><enum>(b)</enum><header>Summary and classification report</header><text>Not later than 180 days after the date of the enactment of this Act, the President shall transmit to Congress and the Commission a report—</text> <paragraph id="H314765D61150458FAA3859640077B579"><enum>(1)</enum><text>summarizing the types of threats identified under subsection (a); and</text></paragraph> <paragraph id="H14DF47A6E3B14D22B95CB71BFC656B36"><enum>(2)</enum><text>classifying each type of threat identified under subsection (a), in accordance with existing laws and regulations, as either—</text> <subparagraph id="H88CEBDDC1A84477486EBB85375683C5E"><enum>(A)</enum><text>involving attacks and destructive acts, including sabotage, directed against the facility by an enemy of the United States, whether a foreign government or other person, or otherwise falling under the responsibilities of the Federal Government; or</text></subparagraph> <subparagraph id="HD82BF0C0C3DB4E48006400203500DE35"><enum>(B)</enum><text>involving the type of risks that Commission licensees should be responsible for guarding against.</text></subparagraph></paragraph></subsection> <subsection id="HDC0904C7E76B4CFC99D47425E300AB08"><enum>(c)</enum><header>Federal action report</header><text>Not later than 90 days after the date on which a report is transmitted under subsection (b), the President shall transmit to Congress a report on actions taken, or to be taken, to address the types of threats identified under subsection (b)(2)(A), including identification of the Federal, State, and local agencies responsible for carrying out the obligations and authorities of the United States. Such report may include a classified annex, as appropriate.</text></subsection> <subsection id="HC7BCB82B2E2140179F87E9FB828783DC"><enum>(d)</enum><header>Regulations</header><text>Not later than 180 days after the date on which a report is transmitted under subsection (b), the Commission may revise, by rule, the design basis threats issued before the date of enactment of this section as the Commission considers appropriate based on the summary and classification report.</text></subsection> <subsection id="H6B182A8DC9874586B3CDA477A39786CF"><enum>(e)</enum><header>Physical security program</header><text>The Commission shall establish an operational safeguards response evaluation program that ensures that the physical protection capability and operational safeguards response for sensitive nuclear facilities, as determined by the Commission consistent with the protection of public health and the common defense and security, shall be tested periodically through Commission approved or designed, observed, and evaluated force-on-force exercises to determine whether the ability to defeat the design basis threat is being maintained. For purposes of this subsection, the term <quote>sensitive nuclear facilities</quote> includes at a minimum commercial nuclear power plants and category I fuel cycle facilities.</text></subsection> <subsection id="H7B471BE5765A4C8DB98C7B1D5FD498B5"><enum>(f)</enum><header>Control of information</header><text>Notwithstanding any other provision of law, the Commission may undertake any rulemaking under this subtitle in a manner that will fully protect safeguards and classified national security information.</text></subsection> <subsection id="HE32409A90DFE485D843EB7F29019836"><enum>(g)</enum><header>Federal security coordinators</header> <paragraph id="HE4ED54430F664E17BFB53DC0A2BA65E2"><enum>(1)</enum><header>Regional offices</header><text>Not later than 18 months after the date of enactment of this Act, the Commission shall assign a Federal security coordinator, under the employment of the Commission, to each region of the Commission.</text></paragraph> <paragraph id="H31EAFCD7369E4204A8398E8538A3DFB"><enum>(2)</enum><header>Responsibilities</header><text>The Federal security coordinator shall be responsible for—</text> <subparagraph id="H43D7A43618574ED0899FE47D98AB3500"><enum>(A)</enum><text>communicating with the Commission and other Federal, State, and local authorities concerning threats, including threats against such classes of facilities as the Commission determines to be appropriate;</text></subparagraph> <subparagraph id="H825A6E9D4F684F418876BF0025772531"><enum>(B)</enum><text>ensuring that such classes of facilities as the Commission determines to be appropriate maintain security consistent with the security plan in accordance with the appropriate threat level; and</text></subparagraph> <subparagraph id="HC7C54A0F4B464186B3BCE38D837C47DE"><enum>(C)</enum><text>assisting in the coordination of security measures among the private security forces at such classes of facilities as the Commission determines to be appropriate and Federal, State, and local authorities, as appropriate.</text></subparagraph></paragraph></subsection> <subsection id="HBEE7F511D7CE4C6890918BAC01F5D2AF"><enum>(h)</enum><header>Training program</header><text>The President shall establish a program to provide technical assistance and training to Federal agencies, the National Guard, and State and local law enforcement and emergency response agencies in responding to threats against a designated nuclear facility.</text></subsection></section> <section id="HB43C143B763A43D6B7AF1B51C4DA3CC5"><enum>662.</enum><header>Fingerprinting for criminal history record checks</header> <subsection id="H7C437D73022D4288970020616EC1F592"><enum>(a)</enum><header>In general</header><text>Subsection a. of section 149 of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2169">42 U.S.C. 2169(a)</external-xref>) is amended—</text> <paragraph id="H6DCAF35D4F9C44A380598545585E339B"><enum>(1)</enum><text>by striking <quote>a. The Nuclear</quote> and all that follows through <quote>section 147.</quote> and inserting the following:</text> <quoted-block id="HFBC78DABC85649D5A08DE95FAA70BEC7" style="other" other-style="nuclear"> <subsection id="HEB029C9A50004A69AB02915DEA521EB3"><enum>a.</enum><header>In general</header> <paragraph id="H24C3F469B8144EE7AB442D7320971BFB"><enum>(1)</enum><header>Requirements</header> <subparagraph id="H54828EB82A5F468090A2227E0066257C"><enum>(A)</enum><header>In general</header><text>The Commission shall require each individual or entity—</text> <clause id="H12A51B245E7141AAA97347CF70D14C28"><enum>(i)</enum><text>that is licensed or certified to engage in an activity subject to regulation by the Commission;</text></clause> <clause id="HC083EA47F0514BC3A9ABC9BC3C5E0785"><enum>(ii)</enum><text>that has filed an application for a license or certificate to engage in an activity subject to regulation by the Commission; or</text></clause> <clause id="H54D158A616564E098B3D38012E7EC52D"><enum>(iii)</enum><text>that has notified the Commission, in writing, of an intent to file an application for licensing, certification, permitting, or approval of a product or activity subject to regulation by the Commission,</text></clause><continuation-text continuation-text-level="subparagraph">to fingerprint each individual described in subparagraph (B) before the individual is permitted unescorted access or access, whichever is applicable, as described in subparagraph (B).</continuation-text></subparagraph> <subparagraph id="HE5D1DA837D134E2BA0900799CF407532"><enum>(B)</enum><header>Individuals required to be fingerprinted</header><text>The Commission shall require to be fingerprinted each individual who—</text> <clause id="HCC545654525241628C11B9C9B2CF57B"><enum>(i)</enum><text>is permitted unescorted access to—</text> <subclause id="H8CE41ED063A843ECB1FB14AD31181064"><enum>(I)</enum><text>a utilization facility; or</text></subclause> <subclause id="HA46425940F4A4CE69E6F188FB648BDF3"><enum>(II)</enum><text>radioactive material or other property subject to regulation by the Commission that the Commission determines to be of such significance to the public health and safety or the common defense and security as to warrant fingerprinting and background checks; or</text></subclause></clause> <clause id="H240D93D27937460800001EC1D86059BC"><enum>(ii)</enum><text>is permitted access to safeguards information under section 147.</text></clause></subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="HE13C5ED62F53457285415CF56675D174"><enum>(2)</enum><text>by striking <quote>All fingerprints obtained by a licensee or applicant as required in the preceding sentence</quote> and inserting the following:</text> <quoted-block id="H8C4A9DD4781C488F93AADE5F86A6D92D" style="OLC"> <paragraph id="H243880414550450E82454122B85EE3AC"><enum>(2)</enum><header>Submission to the Attorney General</header><text>All fingerprints obtained by an individual or entity as required in paragraph (1)</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph> <paragraph id="H90B9519182414CD4907C3486B8BBC11"><enum>(3)</enum><text>by striking <quote>The costs of any identification and records check conducted pursuant to the preceding sentence shall be paid by the licensee or applicant.</quote> and inserting the following:</text> <quoted-block id="H314E7B88E4414658A0E5691F94EE7ECF" style="OLC"> <paragraph id="H2A09D9293C844EDEAD2C2C6926D3126D"><enum>(3)</enum><header>Costs</header><text>The costs of any identification and records check conducted pursuant to paragraph (1) shall be paid by the individual or entity required to conduct the fingerprinting under paragraph (1)(A).</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H6BADCA672D424EA599DCA9E742636CDF"><enum>(4)</enum><text>by striking <quote>Notwithstanding any other provision of law, the Attorney General may provide all the results of the search to the Commission, and, in accordance with regulations prescribed under this section, the Commission may provide such results to licensee or applicant submitting such fingerprints.</quote> and inserting the following:</text> <quoted-block id="H732C7B9D867A45B38C5B70D4DD7DA9E1" style="OLC"> <paragraph id="H6C46A4E5F9084055B6B08CCD8813C862"><enum>(4)</enum><header>Provision to individual or entity required to conduct fingerprinting</header><text>Notwithstanding any other provision of law, the Attorney General may provide all the results of the search to the Commission, and, in accordance with regulations prescribed under this section, the Commission may provide such results to the individual or entity required to conduct the fingerprinting under paragraph (1)(A).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H6702CED4DBA34981875BA1695FF38E82"><enum>(b)</enum><header>Administration</header><text>Subsection c. of section 149 of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2169">42 U.S.C. 2169(c)</external-xref>) is amended—</text> <paragraph id="HB2B6D20AD6A6496A91D681C9CAEF3F8B"><enum>(1)</enum><text>by striking <quote>, subject to public notice and comment, regulations—</quote> and inserting <quote>requirements—</quote>; and</text></paragraph> <paragraph id="H3E8A33661A574567B5BA9458833103D1"><enum>(2)</enum><text>by striking, in paragraph (2)(B), <quote>unescorted access to the facility of a licensee or applicant</quote> and inserting <quote>unescorted access to a utilization facility, radioactive material, or other property described in subsection a.(1)(B)</quote>.</text></paragraph></subsection> <subsection id="HF66B84F47DE44BD495B13EBB1B8186C"><enum>(c)</enum><header>Biometric methods</header><text>Subsection d. of section 149 of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2169">42 U.S.C. 2169(d)</external-xref>) is redesignated as subsection e., and the following is inserted after subsection c.:</text> <quoted-block id="H689CA052EA6E4F9B8C2469042B94376E" style="other" other-style="nuclear"> <subsection id="H3ECA035E1A42460FAD2B322DB64295C4"><enum>d.</enum><header>Use of other biometric methods</header><text>The Commission may satisfy any requirement for a person to conduct fingerprinting under this section using any other biometric method for identification approved for use by the Attorney General, after the Commission has approved the alternative method by rule.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="HDF68CD9B1B0947CF96218F00A5DEC283"><enum>663.</enum><header>Use of firearms by security personnel of licensees and certificate holders of the commission</header><text display-inline="no-display-inline"> Section 161 of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2201">42 U.S.C. 2201</external-xref>) is amended by adding at the end the following subsection:</text> <quoted-block id="H6BC3C137840D4C6DA357D63C6B8E812D" style="other" other-style="nuclear"> <subsection id="HB1D6EA3179484D87A52789001D1505FD" indent="down1"><enum>(z)</enum> <paragraph id="H2A0B42A1B80E4D6FA34157C9451F7F81" display-inline="yes-display-inline"><enum>(1)</enum><text>notwithstanding section 922(o), (v), and (w) of title 18, United States Code, or any similar provision of any State law or any similar rule or regulation of a State or any political subdivision of a State prohibiting the transfer or possession of a handgun, a rifle or shotgun, a short-barreled shotgun, a short-barreled rifle, a machinegun, a semiautomatic assault weapon, ammunition for the foregoing, or a large capacity ammunition feeding device, authorize security personnel of licensees and certificate holders of the Commission (including employees of contractors of licensees and certificate holders) to receive, possess, transport, import, and use 1 or more of those weapons, ammunition, or devices, if the Commission determines that—</text> <subparagraph id="H870D8E134390419E833DD06F15E015E0" indent="subparagraph"><enum>(A)</enum><text>such authorization is necessary to the discharge of the security personnel’s official duties; and</text></subparagraph> <subparagraph id="H4C0FCD2715334E97A875404D4BBDC5FB" indent="subparagraph"><enum>(B)</enum><text>the security personnel—</text> <clause id="HCB4B6DADDB884393BBBFED82FE79EEC" indent="clause"><enum>(i)</enum><text>are not otherwise prohibited from possessing or receiving a firearm under Federal or State laws pertaining to possession of firearms by certain categories of persons;</text></clause> <clause id="HAC1D6D79F52944998016702B213D18A4" indent="clause"><enum>(ii)</enum><text>have successfully completed requirements established through guidelines implementing this subsection for training in use of firearms and tactical maneuvers;</text></clause> <clause id="HAB34B053E28545D88FE8D2794B96DDEE" indent="clause"><enum>(iii)</enum><text>are engaged in the protection of—</text> <subclause id="HD67A486909C149C39DB5C875A5FB6C47" indent="subclause"><enum>(I)</enum><text>facilities owned or operated by a Commission licensee or certificate holder that are designated by the Commission; or</text></subclause> <subclause id="HCC1EBDA610D64A6AA98C3C1186D4DCB" indent="subclause"><enum>(II)</enum><text>radioactive material or other property owned or possessed by a person that is a licensee or certificate holder of the Commission, or that is being transported to or from a facility owned or operated by such a licensee or certificate holder, and that has been determined by the Commission to be of significance to the common defense and security or public health and safety; and</text></subclause></clause> <clause id="HF63650C6B45748AD9FF3A6F3EE77BEB" indent="clause"><enum>(iv)</enum><text>are discharging their official duties.</text></clause></subparagraph></paragraph> <paragraph id="H2A673F1AB9E84FDDB4C93688FD25479D" indent="paragraph"><enum>(2)</enum><text>Such receipt, possession, transportation, importation, or use shall be subject to—</text> <subparagraph id="H8B4AED48ED5248CDA25700D7772E02AF" indent="subparagraph"><enum>(A)</enum><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/18/44">chapter 44</external-xref> of title 18, United States Code, except for section 922(a)(4), (o), (v), and (w);</text></subparagraph> <subparagraph id="H4517FC05D2854626BDA6B800E571617D" indent="subparagraph"><enum>(B)</enum><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/53">chapter 53</external-xref> of title 26, United States Code, except for section 5844; and</text></subparagraph> <subparagraph id="H6782A19412524F8EB036E4545635200" indent="subparagraph"><enum>(C)</enum><text>a background check by the Attorney General, based on fingerprints and including a check of the system established under section 103(b) of the Brady Handgun Violence Prevention Act (<external-xref legal-doc="usc" parsable-cite="usc/18/922">18 U.S.C. 922</external-xref> note) to determine whether the person applying for the authority is prohibited from possessing or receiving a firearm under Federal or State law.</text></subparagraph></paragraph> <paragraph id="H41A91FEA77AA405B968F09DBF01DBB61" indent="paragraph"><enum>(3)</enum><text>This subsection shall become effective upon the issuance of guidelines by the Commission, with the approval of the Attorney General, to govern the implementation of this subsection.</text></paragraph> <paragraph id="H966759EEC5CE429EB023CBD5F2D38169" indent="paragraph"><enum>(4)</enum><text>In this subsection, the terms <quote>handgun</quote>, <quote>rifle</quote>, <quote>shotgun</quote>, <quote>firearm</quote>, <quote>ammunition</quote>, <quote>machinegun</quote>, <quote>semiautomatic assault weapon</quote>, <quote>large capacity ammunition feeding device</quote>, <quote>short-barreled shotgun</quote>, and <quote>short-barreled rifle</quote> shall have the meanings given those terms in <external-xref legal-doc="usc" parsable-cite="usc/18/921">section 921(a)</external-xref> of title 18, United States Code.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H8B2C71EDDF3E41AA8DC0214E1634E3DE"><enum>664.</enum><header>Unauthorized introduction of dangerous weapons</header><text display-inline="no-display-inline"> Section 229 a. of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2278a">42 U.S.C. 2278a(a)</external-xref>) is amended in the first sentence by inserting <quote>or subject to the licensing authority of the Commission or to certification by the Commission under this Act or any other Act</quote> before the period at the end.</text></section> <section id="H87D6B05721E449E38C9BD12307B59095"><enum>665.</enum><header>Sabotage of nuclear facilities or fuel</header> <subsection id="HF069BF3D4B1E4166830947A58979CD76"><enum>(a)</enum><header>In general</header><text>Section 236 a. of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2284">42 U.S.C. 2284(a)</external-xref>) is amended—</text> <paragraph id="H90790792FC2B4AC9A6E0DAF60073D766"><enum>(1)</enum><text>in paragraph (2), by striking <quote>storage facility</quote> and inserting <quote>storage, treatment, or disposal facility</quote>;</text></paragraph> <paragraph id="H5C1D9BF661C948BC9250B1FF5500B5C"><enum>(2)</enum><text>in paragraph (3)—</text> <subparagraph id="H559CAC9A39DE4E9ABBDB00FB8E75F06E"><enum>(A)</enum><text>by striking <quote>such a utilization facility</quote> and inserting <quote>a utilization facility licensed under this Act</quote>; and</text></subparagraph> <subparagraph id="H3EEAD3681DE34F0D86C5BE07D409CD05"><enum>(B)</enum><text>by striking <quote>or</quote> at the end;</text></subparagraph></paragraph> <paragraph id="H006B4289C42A43F999CE6BD8CC7688D"><enum>(3)</enum><text>in paragraph (4)—</text> <subparagraph id="HF9C61BCECCC24EFBB21E7986EED2F7AB"><enum>(A)</enum><text>by striking <quote>facility licensed</quote> and inserting <quote>, uranium conversion, or nuclear fuel fabrication facility licensed or certified</quote>; and</text></subparagraph> <subparagraph id="H9FD05DF70FCA4F54A6F61495703C03F9"><enum>(B)</enum><text>by striking the comma at the end and inserting a semicolon; and</text></subparagraph></paragraph> <paragraph id="HC05401398DB74B66997369B6CDE58900"><enum>(4)</enum><text>by inserting after paragraph (4) the following:</text> <quoted-block id="H2F5ABFD8C6BE4104989DE800056426DB" style="OLC"> <paragraph id="HE9F4B2FE6C1B4E519726F5EEF49C74F"><enum>(5)</enum><text>any production, utilization, waste storage, waste treatment, waste disposal, uranium enrichment, uranium conversion, or nuclear fuel fabrication facility subject to licensing or certification under this Act during construction of the facility, if the destruction or damage caused or attempted to be caused could adversely affect public health and safety during the operation of the facility;</text></paragraph> <paragraph id="HDFE6B6231A94497FA4BBDC5906655182"><enum>(6)</enum><text>any primary facility or backup facility from which a radiological emergency preparedness alert and warning system is activated; or</text></paragraph> <paragraph id="H30614B6375CD4CA48CBE2990996533A8"><enum>(7)</enum><text>any radioactive material or other property subject to regulation by the Nuclear Regulatory Commission that, before the date of the offense, the Nuclear Regulatory Commission determines, by order or regulation published in the Federal Register, is of significance to the public health and safety or to common defense and security,</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H648D8B48592F40239575C537DFC3C7EA"><enum>(b)</enum><header>Penalties</header><text>Section 236 of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2284">42 U.S.C. 2284</external-xref>) is amended by striking <quote>$10,000 or imprisoned for not more than 20 years, or both, and, if death results to any person, shall be imprisoned for any term of years or for life</quote> both places it appears and inserting <quote>$1,000,000 or imprisoned for up to life without parole</quote>.</text></subsection></section> <section id="H6721B93DC7284D1FBADC8DA6E9D5F677"><enum>666.</enum><header>Secure transfer of nuclear materials</header> <subsection id="HC3AC86270E0F4759A560B38E002E45B9"><enum>(a)</enum><header>Amendment</header><text>Chapter 14 of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2201">42 U.S.C. 2201–2210b</external-xref>) is amended by adding at the end the following new section:</text> <quoted-block id="H3EC8E17A39004179A572009F80B25189" style="OLC"> <section id="HFBE4D2CC57B9475493507CACC2F2F185"><enum>170C.</enum><header>Secure transfer of nuclear materials</header> <subsection id="H4035C7DB366B431A8ECE2B397BCA00EC"><enum>a.</enum><text>The Nuclear Regulatory Commission shall establish a system to ensure that materials described in subsection b., when transferred or received in the United States by any party pursuant to an import or export license issued pursuant to this Act, are accompanied by a manifest describing the type and amount of materials being transferred or received. Each individual receiving or accompanying the transfer of such materials shall be subject to a security background check conducted by appropriate Federal entities.</text></subsection> <subsection id="H1CE39879AA5C477A970000003D480909"><enum>b.</enum><text>Except as otherwise provided by the Commission by regulation, the materials referred to in subsection a. are byproduct materials, source materials, special nuclear materials, high-level radioactive waste, spent nuclear fuel, transuranic waste, and low-level radioactive waste (as defined in section 2(16) of the Nuclear Waste Policy Act of 1982 (<external-xref legal-doc="usc" parsable-cite="usc/42/10101">42 U.S.C. 10101(16)</external-xref>)).</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HFC9B4F8D53AE4558AA9018F7227F0098"><enum>(b)</enum><header>Regulations</header><text>Not later than 1 year after the date of the enactment of this Act, and from time to time thereafter as it considers necessary, the Nuclear Regulatory Commission shall issue regulations identifying radioactive materials or classes of individuals that, consistent with the protection of public health and safety and the common defense and security, are appropriate exceptions to the requirements of section 170C of the Atomic Energy Act of 1954, as added by subsection (a) of this section.</text></subsection> <subsection id="HDCA269EA7C8641FF89CE097E9083C0F9"><enum>(c)</enum><header>Effective date</header><text>The amendment made by subsection (a) shall take effect upon the issuance of regulations under subsection (b), except that the background check requirement shall become effective on a date established by the Commission.</text></subsection> <subsection id="HD8F50FF2F5854CAEAA94EED1362CB419"><enum>(d)</enum><header>Effect on other law</header><text>Nothing in this section or the amendment made by this section shall waive, modify, or affect the application of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/51">chapter 51</external-xref> of title 49, United States Code, part A of subtitle V of title 49, United States Code, part B of subtitle VI of title 49, United States Code, and title 23, United States Code.</text></subsection> <subsection id="H287E5BBEAA424A2D9218A6A0BE5945C7"><enum>(e)</enum><header>Table of sections amendment</header><text>The table of sections for chapter 14 of the Atomic Energy Act of 1954 is amended by adding at the end the following new item:</text> <quoted-block id="HBC152B16569642A7B120352BC536E6B5" style="OLC"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 170C. Secure transfer of nuclear materials</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="H28DDDCA30168461E97BA541EF41B31DB"><enum>667.</enum><header>Department of homeland security consultation</header><text display-inline="no-display-inline"> Before issuing a license for a utilization facility, the Nuclear Regulatory Commission shall consult with the Department of Homeland Security concerning the potential vulnerabilities of the location of the proposed facility to terrorist attack.</text></section> <section id="HBCCEF843C22F49839CFBA641B46900F3"><enum>668.</enum><header>Authorization of appropriations</header> <subsection id="H143449D2EC094AC08CD3303933457F54"><enum>(a)</enum><header>In general</header><text>There are authorized to be appropriated such sums as are necessary to carry out this subtitle and the amendments made by this subtitle.</text></subsection> <subsection id="H06BC747036F14111AEDC3C2C28864F90"><enum>(b)</enum><header>Aggregate amount of charges</header><text>Section 6101(c)(2)(A) of the Omnibus Budget Reconciliation Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/42/2214">42 U.S.C. 2214(c)(2)(A)</external-xref>) is amended—</text> <paragraph id="HF52F14E5D2124ECDA7C2C2073140041"><enum>(1)</enum><text>in clause (i), by striking <quote>and</quote> at the end;</text></paragraph> <paragraph id="HC015CB14B381451786DC8CC906B00BF"><enum>(2)</enum><text>in clause (ii), by striking the period at the end and inserting <quote>; and</quote> and</text></paragraph> <paragraph id="HAC5440F3B2DC450187623E602026C247"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block id="HB3C5B899C08A499398FC0045EE47E9BA" style="OLC"> <clause id="H2F6927B59F0B426681F43D02A810CB7D"><enum>(iii)</enum><text>amounts appropriated to the Commission for homeland security activities of the Commission for the fiscal year, except for the costs of fingerprinting and background checks required by section 149 of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2169">42 U.S.C. 2169</external-xref>) and the costs of conducting security inspections.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section></subtitle> <enum>VII</enum><header>Vehicles and fuels</header> <subtitle id="HF59F0C22CDCB49AAAB3445E27CCF14E"><enum>A</enum><header>Existing programs</header> <section id="H50F6D0E13E4244059F4EC419004925CF" section-type="subsequent-section"><enum>701.</enum><header>Use of alternative fuels by dual-fueled vehicles</header><text display-inline="no-display-inline">Section 400AA(a)(3)(E) of the <act-name parsable-cite="EPCA">Energy Policy and Conservation Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6374">42 U.S.C. 6374(a)(3)(E)</external-xref>) is amended to read as follows:</text> <quoted-block act-name="Energy Policy and Conservation Act" id="HA25D4111F5664272A861343D8D49F72B"> <subparagraph indent="up2" id="H4E9785A653FF40828D62A960C4881BB8"><enum>(E)</enum> <clause display-inline="yes-display-inline" id="H749B3019C07C4E718462D2D59905E382"><enum>(i)</enum><text>Dual fueled vehicles acquired pursuant to this section shall be operated on alternative fuels unless the Secretary determines that an agency qualifies for a waiver of such requirement for vehicles operated by the agency in a particular geographic area in which—</text> <subclause indent="up1" id="H17B237780E644E35A7B5F4972BAE3C8"><enum>(I)</enum><text>the alternative fuel otherwise required to be used in the vehicle is not reasonably available to retail purchasers of the fuel, as certified to the Secretary by the head of the agency; or</text></subclause> <subclause indent="up1" id="H16EE778366BD49679D5FDBED38126B60"><enum>(II)</enum><text>the cost of the alternative fuel otherwise required to be used in the vehicle is unreasonably more expensive compared to gasoline, as certified to the Secretary by the head of the agency.</text> <item indent="up2" id="H14F0DB2523BC48E9924F47A06BB4EEA2"><enum>(ii)</enum><text>The Secretary shall monitor compliance with this subparagraph by all such fleets and shall report annually to Congress on the extent to which the requirements of this subparagraph are being achieved. The report shall include information on annual reductions achieved from the use of petroleum-based fuels and the problems, if any, encountered in acquiring alternative fuels.</text></item></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HDD78653C34AC4CC694F7120043CB2323"><enum>702.</enum><header>Neighborhood electric vehicles</header> <subsection id="HE8007A0AB34C48B49403C1A3B0A40019"><enum>(a)</enum><header>Amendments</header><text>Section 301 of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13211">42 U.S.C. 13211</external-xref>) is amended—</text> <paragraph id="H32A6494D5419416491CB533229046F29"><enum>(1)</enum><text>in paragraph (3), by striking <quote>or a dual fueled vehicle</quote> and inserting <quote>, a dual fueled vehicle, or a neighborhood electric vehicle</quote>;</text></paragraph> <paragraph id="H3AB71A07A7FA4B6C9BD0CACFF9BE1AA"><enum>(2)</enum><text>in paragraph (13), by striking <quote>and</quote> at the end;</text></paragraph> <paragraph id="H25EAE8174E7E4BF682ECE7F0D88CEB00"><enum>(3)</enum><text>in paragraph (14), by striking the period at the end and inserting <quote>; and</quote>; and</text></paragraph> <paragraph id="H9A66C2DBFDF845DCA089FBD4008EBE76"><enum>(4)</enum><text>by adding at the end the following:</text> <quoted-block id="H0927A6A2B68740FCAA8D5F846FF92449"> <paragraph id="H7D553F1D429A414DB957EB428EEF27B6"><enum>(15)</enum><text>the term <term>neighborhood electric vehicle</term> means a motor vehicle that—</text> <subparagraph id="H8096023E658249899961B000B888BF5"><enum>(A)</enum><text>meets the definition of a low-speed vehicle (as defined in part 571 of title 49, Code of Federal Regulations);</text></subparagraph> <subparagraph id="H935631947FC64463A5AD843BFE50B7F"><enum>(B)</enum><text>meets the definition of a zero-emission vehicle (as defined in <external-xref legal-doc="cfr" parsable-cite="cfr/40/86.1702">section 86.1702–99</external-xref> of title 40, Code of Federal Regulations);</text></subparagraph> <subparagraph id="H2592370C108C4A5FA5F0C3E8BEF778A2"><enum>(C)</enum><text>meets the requirements of Federal Motor Vehicle Safety Standard No. 500; and</text></subparagraph> <subparagraph id="H02F63871D781433485DDC8118545A1A1"><enum>(D)</enum><text>has a maximum speed of not greater than 25 miles per hour.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H430DBE5D26F84E589D4083D2A250E900"><enum>(b)</enum><header>Credits</header><text>Notwithstanding section 508 of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13258">42 U.S.C. 13258</external-xref>) or any other provision of law, a neighborhood electric vehicle shall not be allocated credit as more than 1 vehicle for purposes of determining compliance with any requirement under title III or title V of such Act.</text></subsection></section> <section id="H28B9D06E4834483B978F5F7F009DD9F3"><enum>703.</enum><header>Credits for medium and heavy duty dedicated vehicles</header><text display-inline="no-display-inline">Section 508 of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13258">42 U.S.C. 13258</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H7AEC9CE988B5408BBAC2F38E1998B3B6"> <subsection id="HDCB47AB88DA441868857114385D2A1D6"><enum>(e)</enum><header>Credit for purchase of medium and heavy duty dedicated vehicles</header> <paragraph id="H57648BC84EEF440FB4294DD1D957984D"><enum>(1)</enum><header>Definitions</header><text>In this subsection:</text> <subparagraph id="HF689FD895B994FE18B1216A4B5EB6FDD"><enum>(A)</enum><header>Heavy duty dedicated vehicle</header><text>The term <term>heavy duty dedicated vehicle</term> means a dedicated vehicle that has a gross vehicle weight rating of more than 14,000 pounds.</text></subparagraph> <subparagraph id="H05BBA1C2269C48BC90F00040068D5C3"><enum>(B)</enum><header>Medium duty dedicated vehicle</header><text>The term <term>medium duty dedicated vehicle</term> means a dedicated vehicle that has a gross vehicle weight rating of more than 8,500 pounds but not more than 14,000 pounds.</text></subparagraph></paragraph> <paragraph id="H7C4E4DDD8BC14D679910AB42CD01C7C3"><enum>(2)</enum><header>Credits for medium duty vehicles</header><text>The Secretary shall issue 2 full credits to a fleet or covered person under this title, if the fleet or covered person acquires a medium duty dedicated vehicle.</text></paragraph> <paragraph id="HB272051D5EEE4644B477897B16E94E35"><enum>(3)</enum><header>Credits for heavy duty vehicles</header><text>The Secretary shall issue 3 full credits to a fleet or covered person under this title, if the fleet or covered person acquires a heavy duty dedicated vehicle.</text></paragraph> <paragraph id="H5DE96143F417490E8F42EC9006E4124"><enum>(4)</enum><header>Use of credits</header><text>At the request of a fleet or covered person allocated a credit under this subsection, the Secretary shall, for the year in which the acquisition of the dedicated vehicle is made, treat that credit as the acquisition of 1 alternative fueled vehicle that the fleet or covered person is required to acquire under this title.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H0B6C4F6266944AD8A1322BB065CE1C27"><enum>704.</enum><header>Incremental cost allocation</header><text display-inline="no-display-inline">Section 303(c) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13212">42 U.S.C. 13212(c)</external-xref>) is amended by striking <quote>may</quote> and inserting <quote>shall</quote>.</text></section> <section id="H8B15B231B3854D86A426E0BB778BCF5E"><enum>705.</enum><header>Alternative compliance and flexibility</header> <subsection id="H7B36E5A1DB62488CAE35334C2EDBE3B"><enum>(a)</enum><header>Alternative compliance</header> <paragraph id="HFF6F5D5411FF490F95FC5C2203072CC1"><enum>(1)</enum><header>In general</header><text>Title V of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13251">42 U.S.C. 13251 et seq.</external-xref>) is amended—</text> <subparagraph id="H4B1ED300D3654CCD8F368C46C73C8500"><enum>(A)</enum><text>by redesignating section 514 as section 515; and</text></subparagraph> <subparagraph id="H04E20D4BD863498F935C576D5721D8E5"><enum>(B)</enum><text>by inserting after section 513 the following:</text> <quoted-block id="HA5A6AFC0D67B43DF84542F7B15238E02"> <section id="H37ABF4E5A02F488983643BDBE3D73210"><enum>514.</enum><header>Alternative compliance</header> <subsection id="HE42AB23B652849A089024D1F5473E350"><enum>(a)</enum><header>Application for waiver</header><text>Any covered person subject to section 501 and any State subject to section 507(o) may petition the Secretary for a waiver of the applicable requirements of section 501 or 507(o).</text></subsection> <subsection id="H98175DD2DC0246169BC019E99DB16995"><enum>(b)</enum><header>Grant of waiver</header><text>The Secretary may grant a waiver of the requirements of section 501 or 507(o) upon a showing that the fleet owned, operated, leased, or otherwise controlled by the State or covered person—</text> <paragraph id="H72DDD4175161475EBB4400B8DD023698"><enum>(1)</enum><text>will achieve a reduction in its annual consumption of petroleum fuels equal to the reduction in consumption of petroleum that would result from 100 percent compliance with fuel use requirements in section 501, or, for entities covered under section 507(o), a reduction equal to the covered State entity’s consumption of alternative fuels if all its alternative fuel vehicles given credit under section 508 were to use alternative fuel 100 percent of the time; and</text></paragraph> <paragraph id="H62C451A600AB41A6AA6561AC53E7CEAF"><enum>(2)</enum><text>is in compliance with all applicable vehicle emission standards established by the Administrator under the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7401">42 U.S.C. 7401 et seq.</external-xref>).</text></paragraph></subsection> <subsection id="H6BDAD0FA80B24CDF86D5123DB21CEBD9"><enum>(c)</enum><header>Revocation of waiver</header><text>The Secretary shall revoke any waiver granted under this section if the State or covered person fails to comply with subsection (b).</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="H0D28E6CD273B42BCBAFEC7F0E17CB33B"><enum>(2)</enum><header>Table of contents amendment</header><text>The table of contents of the Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is amended by striking the item relating to section 514 and inserting the following:</text> <quoted-block style="OLC" id="H620D27187A314AA79C5088F071FB3E4"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 514. Alternative compliance</toc-entry> <toc-entry level="section">Sec. 515. Authorization of appropriations</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H32A89D11EF2F4F77A8224066F606CBD6"><enum>(b)</enum><header>Credits</header><text>Section 508 of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13258">42 U.S.C. 13258</external-xref>) (as amended by section 703) is amended—</text> <paragraph id="H25D03F6604504BDBB85BFDBF669F459B"><enum>(1)</enum><text>by redesignating subsections (b) through (e) as subsections (c) through (f), respectively;</text></paragraph> <paragraph id="H7512524B8A8C4847940020E27C1E8ED4"><enum>(2)</enum><text>by striking subsection (a) and inserting the following:</text> <quoted-block id="HBC91A2ACA5524E7AB16FD742F04BC455"> <subsection id="H484A452E7682499AAE22EDAA2FB1008F"><enum>(a)</enum><header>In general</header><text>The Secretary shall allocate a credit to a fleet or covered person that is required to acquire an alternative fueled vehicle under this title, if that fleet or person acquires an alternative fueled vehicle—</text> <paragraph id="HE038E2A978BC4689AD177421C5157500"><enum>(1)</enum><text>in excess of the number that fleet or person is required to acquire under this title;</text></paragraph> <paragraph id="HDF2C0F29A6B943E082D8FE0973575987"><enum>(2)</enum><text>before the date on which that fleet or person is required to acquire an alternative fueled vehicle under this title; or</text></paragraph> <paragraph id="H27876E6FAFD64D7E9C689FBB94675584"><enum>(3)</enum><text>that is eligible to receive credit under subsection (b).</text></paragraph></subsection> <subsection id="H09792238AA544CF0A44539F639265560"><enum>(b)</enum><header>Maximum available power</header><text>The Secretary shall allocate credit to a fleet under subsection (a)(3) for the acquisition by the fleet of a hybrid vehicle as follows:</text> <paragraph id="HD7C2448657504D9F954D5EFDC05077CA"><enum>(1)</enum><text>For a hybrid vehicle with at least 4 percent but less than 10 percent maximum available power, the Secretary shall allocate 25 percent of 1 credit.</text></paragraph> <paragraph id="H3FAE033F62234DE9A9F1B9979EBA645"><enum>(2)</enum><text>For a hybrid vehicle with at least 10 percent but less than 20 percent maximum available power, the Secretary shall allocate 50 percent of 1 credit.</text></paragraph> <paragraph id="H125C19A64AB749859C9B64BF675B7FB7"><enum>(3)</enum><text>For a hybrid vehicle with at least 20 percent but less than 30 percent maximum available power, the Secretary shall allocate 75 percent of 1 credit.</text></paragraph> <paragraph id="HE64D33BB838E4713B541CB2573000553"><enum>(4)</enum><text>For a hybrid vehicle with 30 percent or more maximum available power, the Secretary shall allocate 1 credit.</text></paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="HA49388608516431F94F3F6483E8D4DD"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block id="HC03CBAEEC410479EB89CA6E94D0488D5"> <subsection id="H38F45CDE24EE48A596A3E3752621B271"><enum>(g)</enum><header>Credit for investment in alternative fuel infrastructure</header> <paragraph id="HB3D7E08AEAA2471392FDB0399112CB59"><enum>(1)</enum><header>Definition of qualifying infrastructure</header><text>In this subsection, the term <term>qualifying infrastructure</term> means—</text> <subparagraph id="H6D4240DAA8D0486680CCAD8019A4B600"><enum>(A)</enum><text>equipment required to refuel or recharge alternative fueled vehicles;</text></subparagraph> <subparagraph id="H07E70EF8E10C4477BFBC1D64A000893E"><enum>(B)</enum><text>facilities or equipment required to maintain, repair, or operate alternative fueled vehicles; and</text></subparagraph> <subparagraph id="H4D80C001CA474546BF99188DAE43125"><enum>(C)</enum><text>such other activities as the Secretary considers to constitute an appropriate expenditure in support of the operation, maintenance, or further widespread adoption of or utilization of alternative fueled vehicles.</text></subparagraph></paragraph> <paragraph id="HFD39ED26D97A45BC8167A7810CCDA7F"><enum>(2)</enum><header>Issuance of credits</header><text>The Secretary shall issue a credit to a fleet or covered person under this title for investment in qualifying infrastructure if the qualifying infrastructure is open to the general public during regular business hours.</text></paragraph> <paragraph id="H85E685DD77EC4B30B13E1F5028D2F3C"><enum>(3)</enum><header>Amount</header><text>For the purpose of credits under this subsection—</text> <subparagraph id="H9ABA2D9A3225479E8079DAA24DA4EC9"><enum>(A)</enum><text>1 credit shall be equal to a minimum investment of $25,000 in cash or equivalent expenditure, as determined by the Secretary; and</text></subparagraph> <subparagraph id="H9821FA00BFB1427EA92B67AFC10A7B3"><enum>(B)</enum><text>except in the case of a Federal or State fleet, no part of the investment may be provided by Federal or State funds.</text></subparagraph></paragraph> <paragraph id="H593D2C0F84724BEB9EFA7862DA32F73"><enum>(4)</enum><header>Use of credits</header><text>At the request of a fleet or covered person allocated a credit under this subsection, the Secretary shall, for the year in which the investment is made, treat that credit as the acquisition of 1 alternative fueled vehicle that the fleet or covered person is required to acquire under this title.</text></paragraph></subsection> <subsection id="H0B9279898756416BA6E0AA59F3A626B9"><enum>(h)</enum><header>Definition of maximum available power</header><text>In this section, the term <term>maximum available power</term> means the quotient obtained by dividing—</text> <paragraph id="HEB177211F1AA4F5DA617312B6DF0C3D0"><enum>(1)</enum><text>the maximum power available from the energy storage device of a hybrid vehicle, during a standard 10-second pulse power or equivalent test; by</text></paragraph> <paragraph id="HF119655B98C6484984EF88112000A589"><enum>(2)</enum><text>the sum of—</text> <subparagraph id="HC2D2FF9251DE4A338674A0B26669C2E6"><enum>(A)</enum><text>the maximum power described in subparagraph (A); and</text></subparagraph> <subparagraph id="HD6FDF8E88AE94B069767E24B16004413"><enum>(B)</enum><text>the net power of the internal combustion or heat engine, as determined in accordance with standards established by the Society of Automobile Engineers.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H7C1C7BF263C24353819CA9A79540D50"><enum>(c)</enum><header>Lease condensate fuels</header><text>Section 301 of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13211">42 U.S.C. 13211</external-xref>) (as amended by section 702) is amended—</text> <paragraph id="H91B82987F5E44EB398E567A9B53B94F6"><enum>(1)</enum><text>in paragraph (2), by inserting <quote>mixtures containing 50 percent or more by volume of lease condensate or fuels extracted from lease condensate;</quote> after <quote>liquefied petroleum gas;</quote>;</text></paragraph> <paragraph id="HD6643AC1F490464DB9223D2BB73C9C35"><enum>(2)</enum><text>in paragraph (14)—</text> <subparagraph id="H95AE0E54DEE34D60B3BA24E717A49900"><enum>(A)</enum><text>by inserting <quote>mixtures containing 50 percent or more by volume of lease condensate or fuels extracted from lease condensate,</quote> after <quote>liquefied petroleum gas,</quote>; and</text></subparagraph> <subparagraph id="H4185D574E1C143E6BD962DC8507EEF2"><enum>(B)</enum><text>by striking <quote>and</quote> at the end;</text></subparagraph></paragraph> <paragraph id="H2F8E21B788A1431FB5CFB9E67F5F5541"><enum>(3)</enum><text>in paragraph (15), by striking the period at the end and inserting <quote>; and</quote>; and</text></paragraph> <paragraph id="HEEFB6FAD21B246CAAD2581A745D50054"><enum>(4)</enum><text>by adding at the end the following:</text> <quoted-block id="HFE37E274A2044A868DC5113EDA37F020"> <paragraph id="HEF0F85E0A15F446AA353868000ED52D6"><enum>(16)</enum><text>the term <term>lease condensate</term> means a mixture, primarily of pentanes and heavier hydrocarbons, that is recovered as a liquid from natural gas in lease separation facilities.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HE6A4B485358E473693587E24131B5CC6"><enum>(d)</enum><header>Lease condensate use credits</header> <paragraph id="H0F0128B4522D4D9A99302E97E2758D7D"><enum>(1)</enum><header>In general</header><text>Title III of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13211">42 U.S.C. 13211 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="HBDB5614BD64D4C09A30096F26FA6D68F"> <section id="H8CF11B8EB528437084C075DDAC70569D"><enum>313.</enum><header>Lease condensate use credits</header> <subsection id="H65DA090006AB4C47BFB7C38313D2E7A1"><enum>(a)</enum><header>In general</header><text>Subject to subsection (d), the Secretary shall allocate 1 credit under this section to a fleet or covered person for each qualifying volume of the lease condensate component of fuel containing at least 50 percent lease condensate, or fuels extracted from lease condensate, after the date of enactment of this section for use by the fleet or covered person in vehicles owned or operated by the fleet or covered person that weigh more than 8,500 pounds gross vehicle weight rating.</text></subsection> <subsection id="HF480053AD56846AA90BF94624E834FD9"><enum>(b)</enum><header>Requirements</header><text>A credit allocated under this section—</text> <paragraph id="HB79F98A424B74891B34883E844DE74F0"><enum>(1)</enum><text>shall be subject to the same exceptions, authority, documentation, and use of credits that are specified for qualifying volumes of biodiesel in section 312; and</text></paragraph> <paragraph id="H2C3B961449054EDAB40000F511E7F12"><enum>(2)</enum><text>shall not be considered a credit under section 508.</text></paragraph></subsection> <subsection id="H6C024948FB3445A2BA143F3C12A1588B"><enum>(c)</enum><header>Regulation</header> <paragraph id="H1694ABE55C9E4535984D35432C90EA2"><enum>(1)</enum><header>In general</header><text>Subject to subsection (d), not later than January 1, 2004, after the collection of appropriate information and data that consider usage options, uses in other industries, products, or processes, potential volume capacities, costs, air emissions, and fuel efficiencies, the Secretary shall issue a regulation establishing requirements and procedures for the implementation of this section.</text></paragraph> <paragraph id="H105A6E7EA8904F25A0E8404B81DDB55E"><enum>(2)</enum><header>Qualifying volume</header><text>The regulation shall include a determination of an appropriate qualifying volume for lease condensate, except that in no case shall the Secretary determine that the qualifying volume for lease condensate is less than 1,125 gallons.</text></paragraph></subsection> <subsection id="H3FA9764144174AC8A1BB88183E4216AB"><enum>(d)</enum><header>Applicability</header><text>This section applies unless the Secretary finds that the use of lease condensate as an alternative fuel would adversely affect public health or safety or ambient air quality or the environment.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H3326A65B4DA2472DB8D7E920BCC46662"><enum>(2)</enum><header>Table of contents amendment</header><text>The table of contents of the Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is amended by adding at the end of the items relating to title III the following:</text> <quoted-block style="OLC" id="HFC9F7C97F890439F8CCEAB414BC744D1"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 313. Lease condensate use credits</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HF3F4026E6EED41DDA2A73CDA64B43D7E"><enum>(e)</enum><header>Emergency exemption</header><text>Section 301 of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13211">42 U.S.C. 13211</external-xref>) (as amended by section 702 and this section) is amended in paragraph (9)(E) by inserting before the semicolon at the end <quote>, including vehicles directly used in the emergency repair of transmission lines and in the restoration of electricity service following power outages, as determined by the Secretary</quote>.</text></subsection></section> <section id="HB124102E2962461A9574C9C39BDF2797"><enum>706.</enum><header>Review of Energy Policy Act of 1992 programs</header> <subsection id="H23DC1BFDA44A49DE9E98ACFAE4403C9F"><enum>(a)</enum><header>In general</header><text>Not later than 180 days after the date of enactment of this section, the Secretary of Energy shall complete a study to determine the effect that titles III, IV, and V of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13211">42 U.S.C. 13211 et seq.</external-xref>) have had on—</text> <paragraph id="H5E0F26859C1143B282EEDFFF7FFCC9E7"><enum>(1)</enum><text>the development of alternative fueled vehicle technology;</text></paragraph> <paragraph id="HC535FDCD14FE4A9CAC792BEDABD635F9"><enum>(2)</enum><text>the availability of that technology in the market; and</text></paragraph> <paragraph id="H0D001615F3A44E50B4661F4E6D99AA00"><enum>(3)</enum><text>the cost of alternative fueled vehicles.</text></paragraph></subsection> <subsection id="H26DE550FB63D44798CEEED6CBFAB95E2"><enum>(b)</enum><header>Topics</header><text>As part of the study under subsection (a), the Secretary shall specifically identify—</text> <paragraph id="H2AEC104EAA8E45CDBD8D52DF37FE286"><enum>(1)</enum><text>the number of alternative fueled vehicles acquired by fleets or covered persons required to acquire alternative fueled vehicles;</text></paragraph> <paragraph id="H75D511AFADE74735A40319E6277DE53"><enum>(2)</enum><text>the quantity, by type, of alternative fuel actually used in alternative fueled vehicles acquired by fleets or covered persons;</text></paragraph> <paragraph id="H28DA33944D614F4A8C94B720436E9757"><enum>(3)</enum><text>the quantity of petroleum displaced by the use of alternative fuels in alternative fueled vehicles acquired by fleets or covered persons;</text></paragraph> <paragraph id="H09770EB75EE344B3BBD048C510B96566"><enum>(4)</enum><text>the direct and indirect costs of compliance with requirements under titles III, IV, and V of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13211">42 U.S.C. 13211 et seq.</external-xref>), including—</text> <subparagraph id="HB9EFAB9073B840C4901380F9DF282F7"><enum>(A)</enum><text>vehicle acquisition requirements imposed on fleets or covered persons;</text></subparagraph> <subparagraph id="H8ABCAFE61BAC4640BD20381C0333A012"><enum>(B)</enum><text>administrative and recordkeeping expenses;</text></subparagraph> <subparagraph id="HD49132EC1BD84909AB9DCF1E878436E4"><enum>(C)</enum><text>fuel and fuel infrastructure costs;</text></subparagraph> <subparagraph id="H30613708EFFC4FEA9215A267224B80B"><enum>(D)</enum><text>associated training and employee expenses; and</text></subparagraph> <subparagraph id="HB92638D432F04AFF9871D03B76987D9D"><enum>(E)</enum><text>any other factors or expenses the Secretary determines to be necessary to compile reliable estimates of the overall costs and benefits of complying with programs under those titles for fleets, covered persons, and the national economy;</text></subparagraph></paragraph> <paragraph id="HD4FF2BA17F764442BDD85596E22D6084"><enum>(5)</enum><text>the existence of obstacles preventing compliance with vehicle acquisition requirements and increased use of alternative fuel in alternative fueled vehicles acquired by fleets or covered persons; and</text></paragraph> <paragraph id="HC9F6BFB8ED0442339E8084A11300625E"><enum>(6)</enum><text>the projected impact of amendments to the Energy Policy Act of 1992 made by this title.</text></paragraph></subsection> <subsection id="H06C3E99844A241B2850532C0F908C810"><enum>(c)</enum><header>Report</header><text>Upon completion of the study under this section, the Secretary shall submit to Congress a report that describes the results of the study and includes any recommendations of the Secretary for legislative or administrative changes concerning the alternative fueled vehicle requirements under titles III, IV and V of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13211">42 U.S.C. 13211 et seq.</external-xref>).</text></subsection></section> <section id="H21A06C48E57D4D28A43056B83FA950F"><enum>707.</enum><header>Report concerning compliance with alternative fueled vehicle purchasing requirements</header><text display-inline="no-display-inline">Section 310(b)(1) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13218">42 U.S.C. 13218(b)(1)</external-xref>) is amended by striking <quote>1 year after the date of enactment of this subsection</quote> and inserting <quote>February 15, 2004</quote>.</text></section></subtitle> <subtitle id="HE0A89A31FB0345618BAF205463821E49"><enum>B</enum><header>Hybrid vehicles, advanced vehicles, and fuel cell buses</header> <part id="H68AC2ED8A3A04F4092B0BFF6DF9DE01F"><enum>I</enum><header>Hybrid vehicles</header> <section id="H139386C3558F41B69CE8F7C13878300"><enum>711.</enum><header>Hybrid vehicles</header><text display-inline="no-display-inline">The Secretary of Energy shall accelerate efforts directed toward the improvement of batteries and other rechargeable energy storage systems, power electronics, hybrid systems integration, and other technologies for use in hybrid vehicles.</text></section></part> <part id="H276B92874F644B04AA329F00AEEECD1D"><enum>II</enum><header>Advanced vehicles</header> <section id="H3F3384644DB849DEAAE5D82DEB0017D9"><enum>721.</enum><header>Definitions</header><text display-inline="no-display-inline">In this part:</text> <paragraph id="H43A6111D7FA544FA8C6141FA27A5786C"><enum>(1)</enum><header>Alternative fueled vehicle</header> <subparagraph id="H82E54A67D6EE4A8C9E05809E87ED652D"><enum>(A)</enum><header>In general</header><text>The term <term>alternative fueled vehicle</term> means a vehicle propelled solely on an alternative fuel (as defined in section 301 of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13211">42 U.S.C. 13211</external-xref>)).</text></subparagraph> <subparagraph id="H849744FF8B004713B63D25788200E7E2"><enum>(B)</enum><header>Exclusion</header><text>The term <term>alternative fueled vehicle</term> does not include a vehicle that the Secretary determines, by regulation, does not yield substantial environmental benefits over a vehicle operating solely on gasoline or diesel derived from fossil fuels.</text></subparagraph></paragraph> <paragraph id="HB40E6B99B2884D38A1C3C9CBB946CE7"><enum>(2)</enum><header>Fuel cell vehicle</header><text>The term <term>fuel cell vehicle</term> means a vehicle propelled by an electric motor powered by a fuel cell system that converts chemical energy into electricity by combining oxygen (from air) with hydrogen fuel that is stored on the vehicle or is produced onboard by reformation of a hydrocarbon fuel. Such fuel cell system may or may not include the use of auxiliary energy storage systems to enhance vehicle performance.</text></paragraph> <paragraph id="H8D3F79A9484D4B3D86ECD1194EC9A677"><enum>(3)</enum><header>Hybrid vehicle</header><text>The term <term>hybrid vehicle</term> means a medium or heavy duty vehicle propelled by an internal combustion engine or heat engine using any combustible fuel and an onboard rechargeable energy storage device.</text></paragraph> <paragraph id="H488809837E044DF589B9F9000053E96D"><enum>(4)</enum><header>Neighborhood electric vehicle</header><text>The term <term>neighborhood electric vehicle</term> means a motor vehicle that—</text> <subparagraph id="H06991096498F42A0AE75D23D558F4C92"><enum>(A)</enum><text>meets the definition of a low-speed vehicle (as defined in part 571 of title 49, Code of Federal Regulations);</text></subparagraph> <subparagraph id="H867A79EE039040E0A23DBF8C882E6607"><enum>(B)</enum><text>meets the definition of a zero-emission vehicle (as defined in <external-xref legal-doc="cfr" parsable-cite="cfr/40/86.1702">section 86.1702–99</external-xref> of title 40, Code of Federal Regulations);</text></subparagraph> <subparagraph id="H7CBF96A0091C4A61B658ABD9DBBE04F6"><enum>(C)</enum><text>meets the requirements of Federal Motor Vehicle Safety Standard No. 500; and</text></subparagraph> <subparagraph id="H7BD8FE478ADA4BB3952672FBF07B9CBD"><enum>(D)</enum><text>has a maximum speed of not greater than 25 miles per hour.</text></subparagraph></paragraph> <paragraph id="HB013D17077C647620000EBE8B6348CC4"><enum>(5)</enum><header>Pilot program</header><text>The term <term>pilot program</term> means the competitive grant program established under section 722.</text></paragraph> <paragraph id="HD0ED59FE662746D69E99FAF9E8026EAF"><enum>(6)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Energy.</text></paragraph> <paragraph id="H4A65E6CC0A1940C481D95F48D97F07CE"><enum>(7)</enum><header>Ultra-low sulfur diesel vehicle</header><text>The term <term>ultra-low sulfur diesel vehicle</term> means a vehicle manufactured in any of model years 2003 through 2006 powered by a heavy-duty diesel engine that—</text> <subparagraph id="HD99817606D254ACDA241D678B8E06E24"><enum>(A)</enum><text>is fueled by diesel fuel that contains sulfur at not more than 15 parts per million; and</text></subparagraph> <subparagraph id="H76D978478FB148DC905183DBBA9E73AE"><enum>(B)</enum><text>emits not more than the lesser of—</text> <clause id="H6321E698309140F69635828130E59EA9"><enum>(i)</enum><text>for vehicles manufactured in—</text> <subclause id="HDDA85218F9D14E8BA17469BFCAB180B5"><enum>(I)</enum><text>model year 2003, 3.0 grams per brake horsepower-hour of oxides of nitrogen and .01 grams per brake horsepower-hour of particulate matter; and</text></subclause> <subclause id="H4EF35790A5234C98866E75C09FF257CB"><enum>(II)</enum><text>model years 2004 through 2006, 2.5 grams per brake horsepower-hour of nonmethane hydrocarbons and oxides of nitrogen and .01 grams per brake horsepower-hour of particulate matter; or</text></subclause></clause> <clause id="H7C4989441E42404CA6D7032D2CB09B24"><enum>(ii)</enum><text>the quantity of emissions of nonmethane hydrocarbons, oxides of nitrogen, and particulate matter of the best-performing technology of ultra-low sulfur diesel vehicles of the same class and application that are commercially available.</text></clause></subparagraph></paragraph></section> <section id="HA0FD82C30B5E431ABDE1C9001235BABC"><enum>722.</enum><header>Pilot program</header> <subsection id="HEB5833E4F792414192EDAFF77908D7FC"><enum>(a)</enum><header>Establishment</header><text>The Secretary, in consultation with the Secretary of Transportation, shall establish a competitive grant pilot program, to be administered through the Clean Cities Program of the Department of Energy, to provide not more than 15 geographically dispersed project grants to State governments, local governments, or metropolitan transportation authorities to carry out a project or projects for the purposes described in subsection (b).</text></subsection> <subsection id="H12A1A66B07974D04AC2414F6FEE2FAAD"><enum>(b)</enum><header>Grant purposes</header><text>A grant under this section may be used for the following purposes:</text> <paragraph id="HBDB7BB5366DB42329B04C679F209601E"><enum>(1)</enum><text>The acquisition of alternative fueled vehicles or fuel cell vehicles, including—</text> <subparagraph id="H939765191F3E4B64BDCB8F63CDF8180"><enum>(A)</enum><text>passenger vehicles (including neighborhood electric vehicles); and</text></subparagraph> <subparagraph id="HB49D0A2E22E445768D65DD3B9061B2D8"><enum>(B)</enum><text>motorized 2-wheel bicycles, scooters, or other vehicles for use by law enforcement personnel or other State or local government or metropolitan transportation authority employees.</text></subparagraph></paragraph> <paragraph id="H436618940E054377A6A5D9EA03C59578"><enum>(2)</enum><text>The acquisition of alternative fueled vehicles, hybrid vehicles, or fuel cell vehicles, including—</text> <subparagraph id="H84158B1A982641B0ADE17E00FC40D88"><enum>(A)</enum><text>buses used for public transportation or transportation to and from schools;</text></subparagraph> <subparagraph id="H904C4788EC7F4A01BC111067F98417F7"><enum>(B)</enum><text>delivery vehicles for goods or services; and</text></subparagraph> <subparagraph id="H466B3A93A16A4DF2AEB95841125099A4"><enum>(C)</enum><text>ground support vehicles at public airports (including vehicles to carry baggage or push or pull airplanes toward or away from terminal gates).</text></subparagraph></paragraph> <paragraph id="HA22453E32D4547AF8E7B2E47D5028451"><enum>(3)</enum><text>The acquisition of ultra-low sulfur diesel vehicles.</text></paragraph> <paragraph id="H84F9467EBE0847D9818B83F2942754B"><enum>(4)</enum><text>Installation or acquisition of infrastructure necessary to directly support an alternative fueled vehicle, fuel cell vehicle, or hybrid vehicle project funded by the grant, including fueling and other support equipment.</text></paragraph> <paragraph id="HDC3D5B900FD4406DA95F1F0998DD9E00"><enum>(5)</enum><text>Operation and maintenance of vehicles, infrastructure, and equipment acquired as part of a project funded by the grant.</text></paragraph></subsection> <subsection id="HADAAC2CFB38A4EA9B4AA8659E14EB200"><enum>(c)</enum><header>Applications</header> <paragraph id="HF6A933A632004CCA83A038ADEDBB6E4F"><enum>(1)</enum><header>Requirements</header> <subparagraph id="HAFEFBC21A8C3439900F42E8D348C49CD"><enum>(A)</enum><header>In general</header><text>The Secretary shall issue requirements for applying for grants under the pilot program.</text></subparagraph> <subparagraph id="HFC5BA20BCF3042E5A34F798F7B82D056"><enum>(B)</enum><header>Minimum requirements</header><text>At a minimum, the Secretary shall require that an application for a grant—</text> <clause id="H9532592AC14541EE85E8BBA29704EE14"><enum>(i)</enum><text>be submitted by the head of a State or local government or a metropolitan transportation authority, or any combination thereof, and a registered participant in the Clean Cities Program of the Department of Energy; and</text></clause> <clause id="H453003966DD2466DB54B622F01119065"><enum>(ii)</enum><text>include—</text> <subclause id="HFDA6B2FBF6C64EA5BC7069A877CA8585"><enum>(I)</enum><text>a description of the project proposed in the application, including how the project meets the requirements of this part;</text></subclause> <subclause id="HD7F95DF4592D489F997562A16264371D"><enum>(II)</enum><text>an estimate of the ridership or degree of use of the project;</text></subclause> <subclause id="HD82E5E53FFA94B70ADAC80A611CAFBF7"><enum>(III)</enum><text>an estimate of the air pollution emissions reduced and fossil fuel displaced as a result of the project, and a plan to collect and disseminate environmental data, related to the project to be funded under the grant, over the life of the project;</text></subclause> <subclause id="H3DDE8AF64CB54138A0408B006CC69C5"><enum>(IV)</enum><text>a description of how the project will be sustainable without Federal assistance after the completion of the term of the grant;</text></subclause> <subclause id="HA7CDCEC77C2E433A83C4C0F75759914B"><enum>(V)</enum><text>a complete description of the costs of the project, including acquisition, construction, operation, and maintenance costs over the expected life of the project;</text></subclause> <subclause id="HB2A48693428440A9A9F8BA26E742AF6D"><enum>(VI)</enum><text>a description of which costs of the project will be supported by Federal assistance under this part; and</text></subclause> <subclause id="H24BAE66E3BCD4CFC90DE449B75FAEAF"><enum>(VII)</enum><text>documentation to the satisfaction of the Secretary that diesel fuel containing sulfur at not more than 15 parts per million is available for carrying out the project, and a commitment by the applicant to use such fuel in carrying out the project.</text></subclause></clause></subparagraph></paragraph> <paragraph id="HE794FF51D31E4736A4DAE9B9E73DBB42"><enum>(2)</enum><header>Partners</header><text>An applicant under paragraph (1) may carry out a project under the pilot program in partnership with public and private entities.</text></paragraph></subsection> <subsection id="H9BDDD4E3223449E889D0E6F3454A1FE"><enum>(d)</enum><header>Selection criteria</header><text>In evaluating applications under the pilot program, the Secretary shall—</text> <paragraph id="HEEC4DEB3B1224B9FB0ABAB4673182440"><enum>(1)</enum><text>consider each applicant’s previous experience with similar projects; and</text></paragraph> <paragraph id="H0C2C87D0F6BF4CB7A0E2114F2EBC51E3"><enum>(2)</enum><text>give priority consideration to applications that—</text> <subparagraph id="H874CD1A6562D4FA3AC195113CD89001D"><enum>(A)</enum><text>are most likely to maximize protection of the environment;</text></subparagraph> <subparagraph id="H231FDA0A15EC45349F0714706DFC00B9"><enum>(B)</enum><text>demonstrate the greatest commitment on the part of the applicant to ensure funding for the proposed project and the greatest likelihood that the project will be maintained or expanded after Federal assistance under this part is completed; and</text></subparagraph> <subparagraph id="H8C0ECB497587457EB0428B747FD0E2C8"><enum>(C)</enum><text>exceed the minimum requirements of subsection (c)(1)(B)(ii).</text></subparagraph></paragraph></subsection> <subsection id="HD975E090FC0642C9803726068F13B536"><enum>(e)</enum><header>Pilot project requirements</header> <paragraph id="H680669004DE1471786E6C2952553B83B"><enum>(1)</enum><header>Maximum amount</header><text>The Secretary shall not provide more than $20,000,000 in Federal assistance under the pilot program to any applicant.</text></paragraph> <paragraph id="H4EC1B8C6F9294066B169073C69003286"><enum>(2)</enum><header>Cost sharing</header><text>The Secretary shall not provide more than 50 percent of the cost, incurred during the period of the grant, of any project under the pilot program.</text></paragraph> <paragraph id="H32B6367D1E7340AB9430E5BBC4552720"><enum>(3)</enum><header>Maximum period of grants</header><text>The Secretary shall not fund any applicant under the pilot program for more than 5 years.</text></paragraph> <paragraph id="HC794448FEDB54651B83C3FCAA728D0AD"><enum>(4)</enum><header>Deployment and distribution</header><text>The Secretary shall seek to the maximum extent practicable to ensure a broad geographic distribution of project sites.</text></paragraph> <paragraph id="HEC5D27BC18A0472F8CE51EF96785ED68"><enum>(5)</enum><header>Transfer of information and knowledge</header><text>The Secretary shall establish mechanisms to ensure that the information and knowledge gained by participants in the pilot program are transferred among the pilot program participants and to other interested parties, including other applicants that submitted applications.</text></paragraph></subsection> <subsection id="HAD11B83786E4426CBA88A1BC673BC6C1"><enum>(f)</enum><header>Schedule</header> <paragraph id="H970B661C35B34C8CBD588788ADEE56"><enum>(1)</enum><header>Publication</header><text>Not later than 90 days after the date of enactment of this Act, the Secretary shall publish in the Federal Register, Commerce Business Daily, and elsewhere as appropriate, a request for applications to undertake projects under the pilot program. Applications shall be due not later than 180 days after the date of publication of the notice.</text></paragraph> <paragraph id="H50D990E2EBD7452EB19B11FBBFEE00D2"><enum>(2)</enum><header>Selection</header><text>Not later than 180 days after the date by which applications for grants are due, the Secretary shall select by competitive, peer reviewed proposal, all applications for projects to be awarded a grant under the pilot program.</text></paragraph></subsection> <subsection id="H816B5B74E09D4D3FB676FE2132812024"><enum>(g)</enum><header>Limit on funding</header><text>The Secretary shall provide not less than 20 nor more than 25 percent of the grant funding made available under this section for the acquisition of ultra-low sulfur diesel vehicles.</text></subsection></section> <section id="HC49E75EB366F4BF481694E2565280544"><enum>723.</enum><header>Reports to Congress</header> <subsection id="H27FE2A992CE44A23B3F2D43047003379"><enum>(a)</enum><header>Initial report</header><text>Not later than 60 days after the date on which grants are awarded under this part, the Secretary shall submit to Congress a report containing—</text> <paragraph id="H526BCC1F20AA438DBEE402A5B1648D42"><enum>(1)</enum><text>an identification of the grant recipients and a description of the projects to be funded;</text></paragraph> <paragraph id="HBEA4B1FB7A564D55962541E9A6197E74"><enum>(2)</enum><text>an identification of other applicants that submitted applications for the pilot program; and</text></paragraph> <paragraph id="H6E3C9B33FFAA468E9C7F0344ED3787E5"><enum>(3)</enum><text>a description of the mechanisms used by the Secretary to ensure that the information and knowledge gained by participants in the pilot program are transferred among the pilot program participants and to other interested parties, including other applicants that submitted applications.</text></paragraph></subsection> <subsection id="H090BE7A302C744E981FCF9BBC9B566A5"><enum>(b)</enum><header>Evaluation</header><text>Not later than 3 years after the date of enactment of this Act, and annually thereafter until the pilot program ends, the Secretary shall submit to Congress a report containing an evaluation of the effectiveness of the pilot program, including—</text> <paragraph id="HA17B2D6544904CC49DB516D3A5D732A9"><enum>(1)</enum><text>an assessment of the benefits to the environment derived from the projects included in the pilot program; and</text></paragraph> <paragraph id="H48559C99C2F64E058E2064EB3E7200E5"><enum>(2)</enum><text>an estimate of the potential benefits to the environment to be derived from widespread application of alternative fueled vehicles and ultra-low sulfur diesel vehicles.</text></paragraph></subsection></section> <section id="HEA9AA869DA9A4E138918B8AE53191F8C"><enum>724.</enum><header>Authorization of appropriations</header><text display-inline="no-display-inline">There are authorized to be appropriated to the Secretary to carry out this part $200,000,000, to remain available until expended.</text></section></part> <part id="HE495D46B3EF74E529B18F33B5D1429ED"><enum>III</enum><header>Fuel cell buses</header> <section id="H7113888F102E476AB7B5ADF2A5FA33E3"><enum>731.</enum><header>Fuel cell transit bus demonstration</header> <subsection id="H470B7F931AA64D5CAB3CD6A2A065BA88"><enum>(a)</enum><header>In general</header><text>The Secretary of Energy, in consultation with the Secretary of Transportation, shall establish a transit bus demonstration program to make competitive, merit-based awards for 5-year projects to demonstrate not more than 25 fuel cell transit buses (and necessary infrastructure) in 5 geographically dispersed localities.</text></subsection> <subsection id="H23BB6CBF05B94A62AE39ACDB00EBBC3"><enum>(b)</enum><header>Preference</header><text>In selecting projects under this section, the Secretary of Energy shall give preference to projects that are most likely to mitigate congestion and improve air quality.</text></subsection> <subsection id="HAAD863BF87F34004BABBACC96F007785"><enum>(c)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary of Energy to carry out this section $10,000,000 for each of fiscal years 2004 through 2008.</text></subsection></section></part></subtitle> <subtitle id="HA04C6691546046A59DED78E7AEA586DB"><enum>C</enum><header>Clean school buses</header> <section id="H9BE943055084461FBB4638B588580096"><enum>741.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text> <paragraph id="HD16F02FE5D654D91B9BF888F02E0B9FD"><enum>(1)</enum><header>Administrator</header><text>The term <term>Administrator</term> means the Administrator of the Environmental Protection Agency.</text></paragraph> <paragraph id="H13C53E0221364E9C99F0D31527E9191"><enum>(2)</enum><header>Alternative fuel</header><text>The term <term>alternative fuel</term> means liquefied natural gas, compressed natural gas, liquefied petroleum gas, hydrogen, propane, or methanol or ethanol at no less than 85 percent by volume.</text></paragraph> <paragraph id="HA9026AB6A5E64987B9EA0050E7A45259"><enum>(3)</enum><header>Alternative fuel school bus</header><text>The term <term>alternative fuel school bus</term> means a school bus that meets all of the requirements of this subtitle and is operated solely on an alternative fuel.</text></paragraph> <paragraph id="H6DAF6BB464344008919B7373F205B954"><enum>(4)</enum><header>Emissions control retrofit technology</header><text>The term <term>emissions control retrofit technology</term> means a particulate filter or other emissions control equipment that is verified or certified by the Administrator or the California Air Resources Board as an effective emission reduction technology when installed on an existing school bus.</text></paragraph> <paragraph id="HF9977ECE1B3842538719B92791629984"><enum>(5)</enum><header>Idling</header><text>The term <term>idling</term> means operating an engine while remaining stationary for more than approximately 15 minutes, except that the term does not apply to routine stoppages associated with traffic movement or congestion.</text></paragraph> <paragraph id="H88450B28B1894405BA8EEDD245394B39"><enum>(6)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Energy.</text></paragraph> <paragraph id="H55CDE7B20A214C74BFC7B2F159824B00"><enum>(7)</enum><header>Ultra-low sulfur diesel fuel</header><text>The term <term>ultra-low sulfur diesel fuel</term> means diesel fuel that contains sulfur at not more than 15 parts per million.</text></paragraph> <paragraph id="HC2097C8251AB44C4869FFD00787175EF"><enum>(8)</enum><header>Ultra-low sulfur diesel fuel school bus</header><text>The term <term>ultra-low sulfur diesel fuel school bus</term> means a school bus that meets all of the requirements of this subtitle and is operated solely on ultra-low sulfur diesel fuel.</text></paragraph></section> <section id="H87191F132BE84329805CCCAB54B15BF"><enum>742.</enum><header>Program for replacement of certain school buses with clean school buses</header> <subsection id="H5D6CF33266FB4600B1369BD4AF7B07D3"><enum>(a)</enum><header>Establishment</header><text>The Administrator, in consultation with the Secretary and other appropriate Federal departments and agencies, shall establish a program for awarding grants on a competitive basis to eligible entities for the replacement of existing school buses manufactured before model year 1991 with alternative fuel school buses and ultra-low sulfur diesel fuel school buses.</text></subsection> <subsection id="H8552C5CD6DD64E22AD01CFCEB54E963F"><enum>(b)</enum><header>Requirements</header> <paragraph id="HE52A0791678440B8A10024E4005909E7"><enum>(1)</enum><header>In general</header><text>Not later than 90 days after the date of enactment of this Act, the Administrator shall establish and publish in the Federal Register grant requirements on eligibility for assistance, and on implementation of the program established under subsection (a), including instructions for the submission of grant applications and certification requirements to ensure compliance with this subtitle.</text></paragraph> <paragraph id="H29349381377545B4BD9B47BC00C5F043"><enum>(2)</enum><header>Application deadlines</header><text>The requirements established under paragraph (1) shall require submission of grant applications not later than—</text> <subparagraph id="H8272577805444F0A93AAD94333E0A789"><enum>(A)</enum><text>in the case of the first year of program implementation, the date that is 180 days after the publication of the requirements in the Federal Register; and</text></subparagraph> <subparagraph id="HE26CD5DF1C044106AA9D24843E374C71"><enum>(B)</enum><text>in the case of each subsequent year, June 1 of the year.</text></subparagraph></paragraph></subsection> <subsection id="H4CC6F2CACC094D7D99913E08716094D1"><enum>(c)</enum><header>Eligible recipients</header><text>A grant shall be awarded under this section only—</text> <paragraph id="H4728DBBD65924E94AEC5C48F78C5178F"><enum>(1)</enum><text>to 1 or more local or State governmental entities responsible for providing school bus service to 1 or more public school systems or responsible for the purchase of school buses;</text></paragraph> <paragraph id="H3A514F1935BD479EB10067A8DA3300BE"><enum>(2)</enum><text>to 1 or more contracting entities that provide school bus service to 1 or more public school systems, if the grant application is submitted jointly with the 1 or more school systems to be served by the buses, except that the application may provide that buses purchased using funds awarded shall be owned, operated, and maintained exclusively by the 1 or more contracting entities; or</text></paragraph> <paragraph id="H9051D5AB3F2B418780B62A8D0D1F421"><enum>(3)</enum><text>to a nonprofit school transportation association representing private contracting entities, if the association has notified and received approval from the 1 or more school systems to be served by the buses.</text></paragraph></subsection> <subsection id="H5AC9B29C0CE94E1595BF185300E88632"><enum>(d)</enum><header>Award deadlines</header> <paragraph id="H83ADFB8E19FD4936A77FC7A3CF873463"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), the Administrator shall award a grant made to a qualified applicant for a fiscal year—</text> <subparagraph id="H8806CB2CD219449695EE5F56249F8574"><enum>(A)</enum><text>in the case of the first fiscal year of program implementation, not later than the date that is 90 days after the application deadline established under subsection (b)(2); and</text></subparagraph> <subparagraph id="H2CE145091A4E45E5A9C64C33EF31F6EF"><enum>(B)</enum><text>in the case of each subsequent fiscal year, not later than August 1 of the fiscal year.</text></subparagraph></paragraph> <paragraph id="H9F2B5F6F410C41A28F07CC36571739C5"><enum>(2)</enum><header>Insufficient number of qualified grant applications</header><text>If the Administrator does not receive a sufficient number of qualified grant applications to meet the requirements of subsection (i)(1) for a fiscal year, the Administrator shall award a grant made to a qualified applicant under subsection (i)(2) not later than September 30 of the fiscal year.</text></paragraph></subsection> <subsection id="H1666BA71B4F94DEF994494B33D5D9BC"><enum>(e)</enum><header>Types of grants</header> <paragraph id="H33C12977C7C647299D5B9DC64C266F09"><enum>(1)</enum><header>In general</header><text>A grant under this section shall be used for the replacement of school buses manufactured before model year 1991 with alternative fuel school buses and ultra-low sulfur diesel fuel school buses.</text></paragraph> <paragraph id="HE228905C88F74548A045FCD825C47258"><enum>(2)</enum><header>No economic benefit</header><text>Other than the receipt of the grant, a recipient of a grant under this section may not receive any economic benefit in connection with the receipt of the grant.</text></paragraph> <paragraph id="H37DD32A334114CA9A051A33509CCF35E"><enum>(3)</enum><header>Priority of grant applications</header><text>The Administrator shall give priority to applicants that propose to replace school buses manufactured before model year 1977.</text></paragraph></subsection> <subsection id="HB0C62101A917405F955E8DBDBB42C710"><enum>(f)</enum><header>Conditions of grant</header><text>A grant provided under this section shall include the following conditions:</text> <paragraph id="HE9C2D7375FB64D5F80184B4EFE4CAA3"><enum>(1)</enum><header>School bus fleet</header><text>All buses acquired with funds provided under the grant shall be operated as part of the school bus fleet for which the grant was made for a minimum of 5 years.</text></paragraph> <paragraph id="HCF670FCF22D94512B3F6EC12A97D4200"><enum>(2)</enum><header>Use of funds</header><text>Funds provided under the grant may only be used—</text> <subparagraph id="H2A75A6A0B54648D1B1BC092200CB0014"><enum>(A)</enum><text>to pay the cost, except as provided in paragraph (3), of new alternative fuel school buses or ultra-low sulfur diesel fuel school buses, including State taxes and contract fees associated with the acquisition of such buses; and</text></subparagraph> <subparagraph id="HE02EA41C488345AC994556ED94056835"><enum>(B)</enum><text>to provide—</text> <clause id="HE03E3F4F34B74AAD903E5106858E40F1"><enum>(i)</enum><text>up to 20 percent of the price of the alternative fuel school buses acquired, for necessary alternative fuel infrastructure if the infrastructure will only be available to the grant recipient; and</text></clause> <clause id="H5C3680C2BF20494BAA78FABDD4C72C46"><enum>(ii)</enum><text>up to 25 percent of the price of the alternative fuel school buses acquired, for necessary alternative fuel infrastructure if the infrastructure will be available to the grant recipient and to other bus fleets.</text></clause></subparagraph></paragraph> <paragraph id="H0F470ACEFC28492A9B6700E29D3C0056"><enum>(3)</enum><header>Grant recipient funds</header><text>The grant recipient shall be required to provide at least—</text> <subparagraph id="H88620069EC7343E892632C515D1C7E41"><enum>(A)</enum><text>in the case of a grant recipient described in paragraph (1) or (3) of subsection (c), the lesser of—</text> <clause id="HCE3E6FC2246E432893BD67F138192ECC"><enum>(i)</enum><text>an amount equal to 15 percent of the total cost of each bus received; or</text></clause> <clause id="H97B7DC5825C34721A84137DDA3D486CB"><enum>(ii)</enum><text>$15,000 per bus; and</text></clause></subparagraph> <subparagraph id="HB2D1582A800D424096F46CDDD79CA66B"><enum>(B)</enum><text>in the case of a grant recipient described in subsection (c)(2), the lesser of—</text> <clause id="H6D6D805389BE4758AED1FDA5EE70758"><enum>(i)</enum><text>an amount equal to 20 percent of the total cost of each bus received; or</text></clause> <clause id="H923638B3B09447FCB6A6834E3889A8C9"><enum>(ii)</enum><text>$20,000 per bus.</text></clause></subparagraph></paragraph> <paragraph id="H61A6F464898C4313B801E06DC61B002D"><enum>(4)</enum><header>Ultra-low sulfur diesel fuel</header><text>In the case of a grant recipient receiving a grant for ultra-low sulfur diesel fuel school buses, the grant recipient shall be required to provide documentation to the satisfaction of the Administrator that diesel fuel containing sulfur at not more than 15 parts per million is available for carrying out the purposes of the grant, and a commitment by the applicant to use such fuel in carrying out the purposes of the grant.</text></paragraph> <paragraph id="HBC3C7020B08741CDABA06FF7A5E7D025"><enum>(5)</enum><header>Timing</header><text>All alternative fuel school buses, ultra-low sulfur diesel fuel school buses, or alternative fuel infrastructure acquired under a grant awarded under this section shall be purchased and placed in service as soon as practicable.</text></paragraph></subsection> <subsection id="HB790BA9776344E0EA3E2C3AD2E7ED2C2"><enum>(g)</enum><header>Buses</header> <paragraph id="H139E7F38F6894C78AB749CE73CEE29FF"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), funding under a grant made under this section for the acquisition of new alternative fuel school buses or ultra-low sulfur diesel fuel school buses shall only be used to acquire school buses—</text> <subparagraph id="HC4CC039599FE4ADABF74C948199582F"><enum>(A)</enum><text>with a gross vehicle weight of greater than 14,000 pounds;</text></subparagraph> <subparagraph id="H8772CEB3F5D94B878586538B4984375E"><enum>(B)</enum><text>that are powered by a heavy duty engine;</text></subparagraph> <subparagraph id="H20333EA746074028997DE0622F7FF0A0"><enum>(C)</enum><text>in the case of alternative fuel school buses manufactured in model years 2004 through 2006, that emit not more than 1.8 grams per brake horsepower-hour of nonmethane hydrocarbons and oxides of nitrogen and .01 grams per brake horsepower-hour of particulate matter; and</text></subparagraph> <subparagraph id="HD4A8EFC8F038493595CECF9886D0405"><enum>(D)</enum><text>in the case of ultra-low sulfur diesel fuel school buses manufactured in model years 2004 through 2006, that emit not more than 2.5 grams per brake horsepower-hour of nonmethane hydrocarbons and oxides of nitrogen and .01 grams per brake horsepower-hour of particulate matter.</text></subparagraph></paragraph> <paragraph id="HFB4A44654EB14C08A855DE407527BE81"><enum>(2)</enum><header>Limitations</header><text>A bus shall not be acquired under this section that emits nonmethane hydrocarbons, oxides of nitrogen, or particulate matter at a rate greater than the best performing technology of the same class of ultra-low sulfur diesel fuel school buses commercially available at the time the grant is made.</text></paragraph></subsection> <subsection id="HCBED79BECA1F4537AD0638AE2F2C76C3"><enum>(h)</enum><header>Deployment and distribution</header><text>The Administrator shall—</text> <paragraph id="H2921472630804E43921D7300C2005F5E"><enum>(1)</enum><text>seek, to the maximum extent practicable, to achieve nationwide deployment of alternative fuel school buses and ultra-low sulfur diesel fuel school buses through the program under this section; and</text></paragraph> <paragraph id="H50AC925AC07F4B8CAEFA08E743AEE35F"><enum>(2)</enum><text>ensure a broad geographic distribution of grant awards, with a goal of no State receiving more than 10 percent of the grant funding made available under this section for a fiscal year.</text></paragraph></subsection> <subsection id="H26BB0E4ABC13408900DFD889B2C16217"><enum>(i)</enum><header>Allocation of funds</header> <paragraph id="H3780B8A7EFC94235AEA75A89B5EF57"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), of the amount of grant funding made available to carry out this section for any fiscal year, the Administrator shall use—</text> <subparagraph id="HAAEE6CE6CFC54E759C78BB6355713637"><enum>(A)</enum><text>70 percent for the acquisition of alternative fuel school buses or supporting infrastructure; and</text></subparagraph> <subparagraph id="H85A17C895BD14355A747F9F017692D01"><enum>(B)</enum><text>30 percent for the acquisition of ultra-low sulfur diesel fuel school buses.</text></subparagraph></paragraph> <paragraph id="H9A3AFA963CC741ED8681BBB74EA70730"><enum>(2)</enum><header>Insufficient number of qualified grant applications</header><text>After the first fiscal year in which this program is in effect, if the Administrator does not receive a sufficient number of qualified grant applications to meet the requirements of subparagraph (A) or (B) of paragraph (1) for a fiscal year, effective beginning on August 1 of the fiscal year, the Administrator shall make the remaining funds available to other qualified grant applicants under this section.</text></paragraph></subsection> <subsection id="HC78CA62E76D943D08D1EFC6666AAF9CF"><enum>(j)</enum><header>Reduction of school bus idling</header><text>Each local educational agency (as defined in section 9101 of the <act-name parsable-cite="ESEA">Elementary and Secondary Education Act of 1965</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/20/7801">20 U.S.C. 7801</external-xref>)) that receives Federal funds under the <act-name parsable-cite="ESEA">Elementary and Secondary Education Act of 1965</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/20/6301">20 U.S.C. 6301 et seq.</external-xref>) is encouraged to develop a policy, consistent with the health, safety, and welfare of students and the proper operation and maintenance of school buses, to reduce the incidence of unnecessary school bus idling at schools when picking up and unloading students.</text></subsection> <subsection id="HFD6ADAADCBDA41F7B8744C2B1CFEC015"><enum>(k)</enum><header>Annual report</header> <paragraph id="HCB6F926557AE47B996C747BDEEF9149"><enum>(1)</enum><header>In general</header><text>Not later than January 31 of each year, the Administrator shall transmit to Congress a report evaluating implementation of the programs under this section and section 743.</text></paragraph> <paragraph id="HD040DCC9136A430C90C0306776422200"><enum>(2)</enum><header>Components</header><text>The reports shall include a description of—</text> <subparagraph id="HDCDFA205274B48AB91738B278E1CAB27"><enum>(A)</enum><text>the total number of grant applications received;</text></subparagraph> <subparagraph id="H1297CD183BC246629CA4E75F7CBED3D6"><enum>(B)</enum><text>the number and types of alternative fuel school buses, ultra-low sulfur diesel fuel school buses, and retrofitted buses requested in grant applications;</text></subparagraph> <subparagraph id="HDC8189D8840C40C7BA302D7852DDC1CE"><enum>(C)</enum><text>grants awarded and the criteria used to select the grant recipients;</text></subparagraph> <subparagraph id="H111C90B7BB0F4EF38D03FA20AD8BE9B1"><enum>(D)</enum><text>certified engine emission levels of all buses purchased or retrofitted under the programs under this section and section 743;</text></subparagraph> <subparagraph id="H6A7D50AE30134901B96963FDD223AD64"><enum>(E)</enum><text>an evaluation of the in-use emission level of buses purchased or retrofitted under the programs under this section and section 743; and</text></subparagraph> <subparagraph id="HA3B807CA64954F49B07510917DCBC61"><enum>(F)</enum><text>any other information the Administrator considers appropriate.</text></subparagraph></paragraph></subsection> <subsection id="HA5FC36A4FD45483DB8C19BF029790006"><enum>(l)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Administrator to carry out this section, to remain available until expended—</text> <paragraph id="HFCC3931A10774B33BBA90156D7571191"><enum>(1)</enum><text>$45,000,000 for fiscal year 2005;</text></paragraph> <paragraph id="H7C303FBE4575497D85D3AA3344EBFF32"><enum>(2)</enum><text>$65,000,000 for fiscal year 2006;</text></paragraph> <paragraph id="H7396467BFFD14C5D86A9094DD020187B"><enum>(3)</enum><text>$90,000,000 for fiscal year 2007; and</text></paragraph> <paragraph id="HAFC9C01726CF45C0AC0056957B3335E7"><enum>(4)</enum><text>such sums as are necessary for each of fiscal years 2008 and 2009.</text></paragraph></subsection></section> <section id="H3174B2CBAEA448C98BA3A8FAA676BDDF"><enum>743.</enum><header>Diesel retrofit program</header> <subsection id="H16F8FB7175A54EAB971246049C641CA5"><enum>(a)</enum><header>Establishment</header><text>The Administrator, in consultation with the Secretary, shall establish a program for awarding grants on a competitive basis to entities for the installation of retrofit technologies for diesel school buses.</text></subsection> <subsection id="H50FB4E89B1A94F42AFD66171DFAF20D0"><enum>(b)</enum><header>Eligible recipients</header><text>A grant shall be awarded under this section only—</text> <paragraph id="H5C0770E4E40A46CDA81FFD8C1302002C"><enum>(1)</enum><text>to a local or State governmental entity responsible for providing school bus service to 1 or more public school systems;</text></paragraph> <paragraph id="HDA42C892ACF24BDF95E5D21757B600D6"><enum>(2)</enum><text>to 1 or more contracting entities that provide school bus service to 1 or more public school systems, if the grant application is submitted jointly with the 1 or more school systems that the buses will serve, except that the application may provide that buses purchased using funds awarded shall be owned, operated, and maintained exclusively by the 1 or more contracting entities; or</text></paragraph> <paragraph id="HA075AEF775DD4533A7B8B596363A335"><enum>(3)</enum><text>to a nonprofit school transportation association representing private contracting entities, if the association has notified and received approval from the 1 or more school systems to be served by the buses.</text></paragraph></subsection> <subsection id="HE109BD81A3644B81B801357442DBDF16"><enum>(c)</enum><header>Awards</header> <paragraph id="HACAA420160A34349A201C58FD4DFA212"><enum>(1)</enum><header>In general</header><text>The Administrator shall seek, to the maximum extent practicable, to ensure a broad geographic distribution of grants under this section.</text></paragraph> <paragraph id="HC5DFA85CDFD646FE97B349E067DA35F1"><enum>(2)</enum><header>Preferences</header><text>In making awards of grants under this section, the Administrator shall give preference to proposals that—</text> <subparagraph id="H4FCD8E1216A54CFA8202ECBD4DB2DE4"><enum>(A)</enum><text>will achieve the greatest reductions in emissions of nonmethane hydrocarbons, oxides of nitrogen, or particulate matter per proposal or per bus; or</text></subparagraph> <subparagraph id="H5365EAABC86145C6A8EFBBF67F42F560"><enum>(B)</enum><text>involve the use of emissions control retrofit technology on diesel school buses that operate solely on ultra-low sulfur diesel fuel.</text></subparagraph></paragraph></subsection> <subsection id="H6E41281CA94046549588C3B17BCB0714"><enum>(d)</enum><header>Conditions of grant</header><text>A grant shall be provided under this section on the conditions that—</text> <paragraph id="H0CC040C6D0294985BD1441B4E81FB0B6"><enum>(1)</enum><text>buses on which retrofit emissions-control technology are to be demonstrated—</text> <subparagraph id="HBF45703563444090A2F6D0E1D78DE7F1"><enum>(A)</enum><text>will operate on ultra-low sulfur diesel fuel where such fuel is reasonably available or required for sale by State or local law or regulation;</text></subparagraph> <subparagraph id="H7F43FF40DF394DE78E637C72F3408EE4"><enum>(B)</enum><text>were manufactured in model year 1991 or later; and</text></subparagraph> <subparagraph id="H2EC9B8936C2F4AADB668A9617697EAF6"><enum>(C)</enum><text>will be used for the transportation of school children to and from school for a minimum of 5 years;</text></subparagraph></paragraph> <paragraph id="H5F153833D39C4365BEA34E7D41007B00"><enum>(2)</enum><text>grant funds will be used for the purchase of emission control retrofit technology, including State taxes and contract fees; and</text></paragraph> <paragraph id="H98DB8A1E07F64634873F5BF760E908BF"><enum>(3)</enum><text>grant recipients will provide at least 15 percent of the total cost of the retrofit, including the purchase of emission control retrofit technology and all necessary labor for installation of the retrofit.</text></paragraph></subsection> <subsection id="H6331EF23233E47880053D83E77A1B2C8"><enum>(e)</enum><header>Verification</header><text>Not later than 90 days after the date of enactment of this Act, the Administrator shall publish in the Federal Register procedures to verify—</text> <paragraph id="H86274C01024A42AB8F3CBA00A439C8C7"><enum>(1)</enum><text>the retrofit emissions-control technology to be demonstrated;</text></paragraph> <paragraph id="HA370A851174A4E368DD15E26EBC3C17E"><enum>(2)</enum><text>that buses powered by ultra-low sulfur diesel fuel on which retrofit emissions-control technology are to be demonstrated will operate on diesel fuel containing not more than 15 parts per million of sulfur; and</text></paragraph> <paragraph id="H2F39B136FB2D414889716873EE1FBD35"><enum>(3)</enum><text>that grants are administered in accordance with this section.</text></paragraph></subsection> <subsection id="H201A21BC1E2B47D9B9BC73929594E930"><enum>(f)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Administrator to carry out this section, to remain available until expended—</text> <paragraph id="H7E5B982ACFE0414EAAF2957BB07932A2"><enum>(1)</enum><text>$20,000,000 for fiscal year 2005;</text></paragraph> <paragraph id="HCEC1746C1B3A4AFF976B2161A3E1D900"><enum>(2)</enum><text>$35,000,000 for fiscal year 2006;</text></paragraph> <paragraph id="H45AB8E9D9D0C450C9214EE9C51D651A9"><enum>(3)</enum><text>$45,000,000 for fiscal year 2007; and</text></paragraph> <paragraph id="HFFE95DF565D648B6AC567BF17B301BA5"><enum>(4)</enum><text>such sums as are necessary for each of fiscal years 2008 and 2009.</text></paragraph></subsection></section> <section id="HB1F6624BED7A477B8F4097CA8C416008"><enum>744.</enum><header>Fuel cell school buses</header> <subsection id="HD208DAFA9A154C8E9C444D324BA1E52B"><enum>(a)</enum><header>Establishment</header><text>The Secretary shall establish a program for entering into cooperative agreements—</text> <paragraph id="H2136D288477D4C349E78E2048C57D51C"><enum>(1)</enum><text>with private sector fuel cell bus developers for the development of fuel cell-powered school buses; and</text></paragraph> <paragraph id="HBB323332456D4867AB1EC99B52D52733"><enum>(2)</enum><text>subsequently, with not less than 2 units of local government using natural gas-powered school buses and such private sector fuel cell bus developers to demonstrate the use of fuel cell-powered school buses.</text></paragraph></subsection> <subsection id="H285ABD83409E4934A20055FE5CD53902"><enum>(b)</enum><header>Cost sharing</header><text>The non-Federal contribution for activities funded under this section shall be not less than—</text> <paragraph id="H026947DC2FF34BD4862FC61BCC44FF0"><enum>(1)</enum><text>20 percent for fuel infrastructure development activities; and</text></paragraph> <paragraph id="HEBC67F583A924C34A13011A838883F94"><enum>(2)</enum><text>50 percent for demonstration activities and for development activities not described in paragraph (1).</text></paragraph></subsection> <subsection id="HA9D14C8795114E05A1BC0056D8EBE83"><enum>(c)</enum><header>Reports to Congress</header><text>Not later than 3 years after the date of enactment of this Act, the Secretary shall transmit to Congress a report that—</text> <paragraph id="H8110B45A908544F1B73BB31008351F"><enum>(1)</enum><text>evaluates the process of converting natural gas infrastructure to accommodate fuel cell-powered school buses; and</text></paragraph> <paragraph id="HC5F5BAD1465E4A4691E0128C1640F200"><enum>(2)</enum><text>assesses the results of the development and demonstration program under this section.</text></paragraph></subsection> <subsection id="HD6A059B9093F48C5A1752B28B697C291"><enum>(d)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary to carry out this section $25,000,000 for the period of fiscal years 2004 through 2006.</text></subsection></section></subtitle> <subtitle id="H3A8EA1B87B9546B7B1075BD39CC6DB8C"><enum>D</enum><header>Miscellaneous</header> <section id="H302267B5D2B743EE992C264FE957EE3"><enum>751.</enum><header>Railroad efficiency</header> <subsection id="H0C2FB99F5D3E483683E9A59F48F4C420"><enum>(a)</enum><header>Establishment</header><text>The Secretary of Energy shall, in cooperation with the Secretary of Transportation and the Administrator of the Environmental Protection Agency, establish a cost-shared, public-private research partnership involving the Federal Government, railroad carriers, locomotive manufacturers and equipment suppliers, and the Association of American Railroads, to develop and demonstrate railroad locomotive technologies that increase fuel economy, reduce emissions, and lower costs of operation.</text></subsection> <subsection id="H83951F3A9DC24FD3800897292808005C"><enum>(b)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary of Energy to carry out this section—</text> <paragraph id="HF8C5D3169E49403FBC43677B2B00FE40"><enum>(1)</enum><text>$25,000,000 for fiscal year 2005;</text></paragraph> <paragraph id="HC706AF73D9F746E1BBB3D5C86BD00096"><enum>(2)</enum><text>$35,000,000 for fiscal year 2006; and</text></paragraph> <paragraph id="H293410CFAD5F4873A4A949000768C8DE"><enum>(3)</enum><text>$50,000,000 for fiscal year 2007.</text></paragraph></subsection></section> <section id="HAF0EF9FDE91C4DEEA39E9369F683547B"><enum>752.</enum><header>Mobile emission reductions trading and crediting</header> <subsection id="H5CEAD12943C74075A7DE0400FE06AF1"><enum>(a)</enum><header>In general</header><text>Not later than 180 days after the date of enactment of this Act, the Administrator of the Environmental Protection Agency shall submit to Congress a report on the experience of the Administrator with the trading of mobile source emission reduction credits for use by owners and operators of stationary source emission sources to meet emission offset requirements within a nonattainment area.</text></subsection> <subsection id="H074C1952656E41D0A0ED6E78E537F11B"><enum>(b)</enum><header>Contents</header><text>The report shall describe—</text> <paragraph id="HDCBA0AA68B9E462187F569B8964D9762"><enum>(1)</enum><text>projects approved by the Administrator that include the trading of mobile source emission reduction credits for use by stationary sources in complying with offset requirements, including a description of—</text> <subparagraph id="H927BA0F23D2941AE8000F9F5CF56A4F9"><enum>(A)</enum><text>project and stationary sources location;</text></subparagraph> <subparagraph id="HC0ADA2CDD3AF447298EB8CD683B4E54"><enum>(B)</enum><text>volumes of emissions offset and traded;</text></subparagraph> <subparagraph id="H95259AE2EED648C180304569005C10C2"><enum>(C)</enum><text>the sources of mobile emission reduction credits; and</text></subparagraph> <subparagraph id="HA772F0FEFD2C473A9EB7BD1061D9E75D"><enum>(D)</enum><text>if available, the cost of the credits;</text></subparagraph></paragraph> <paragraph id="H94D6AFBB1014417080508549049F7C8D"><enum>(2)</enum><text>the significant issues identified by the Administrator in consideration and approval of trading in the projects;</text></paragraph> <paragraph id="HE29A424C2F8C453EB208C13E37B6CAE"><enum>(3)</enum><text>the requirements for monitoring and assessing the air quality benefits of any approved project;</text></paragraph> <paragraph id="H052470B0BFA848D9AAC423B9B9F52C00"><enum>(4)</enum><text>the statutory authority on which the Administrator has based approval of the projects;</text></paragraph> <paragraph id="HDB108AE5A69440008187FE91D2626369"><enum>(5)</enum><text>an evaluation of how the resolution of issues in approved projects could be used in other projects; and</text></paragraph> <paragraph id="H2D028DEB9C6845069DB76B3E653575D2"><enum>(6)</enum><text>any other issues that the Administrator considers relevant to the trading and generation of mobile source emission reduction credits for use by stationary sources or for other purposes.</text></paragraph></subsection></section> <section id="HF071A0A3512F42FF828824E9E3DB1BEF"><enum>753.</enum><header>Aviation fuel conservation and emissions</header> <subsection id="H2510A7EC74D744C5863FF7892B3097F4"><enum>(a)</enum><header>In general</header><text>Not later than 60 days after the date of enactment of this Act, the Administrator of the Federal Aviation Administration and the Administrator of the Environmental Protection Agency shall jointly initiate a study to identify—</text> <paragraph id="H6134EEB19B55491B884FF7EC6B5DA4B"><enum>(1)</enum><text>the impact of aircraft emissions on air quality in nonattainment areas; and</text></paragraph> <paragraph id="HC880EA55833E4F1EAED7875421B8509"><enum>(2)</enum><text>ways to promote fuel conservation measures for aviation to—</text> <subparagraph id="H660E30D3B0F8492199004D2781233C3F"><enum>(A)</enum><text>enhance fuel efficiency; and</text></subparagraph> <subparagraph id="H96777177877E4422B748B22C5E5CE4A0"><enum>(B)</enum><text>reduce emissions.</text></subparagraph></paragraph></subsection> <subsection id="H04A77747AE14452CB44C1D4F117EC19E"><enum>(b)</enum><header>Focus</header><text>The study under subsection (a) shall focus on how air traffic management inefficiencies, such as aircraft idling at airports, result in unnecessary fuel burn and air emissions.</text></subsection> <subsection id="H2641206955634BCE8FE251EDF454D290"><enum>(c)</enum><header>Report</header><text>Not later than 1 year after the date of the initiation of the study under subsection (a), the Administrator of the Federal Aviation Administration and the Administrator of the Environmental Protection Agency shall jointly submit to the Committee on Energy and Commerce and the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Environment and Public Works and the Committee on Commerce, Science, and Transportation of the Senate a report that—</text> <paragraph id="HDC26ADCFD010419983748E983351CA47"><enum>(1)</enum><text>describes the results of the study; and</text></paragraph> <paragraph id="H4D447F5483A84A52BE168BA084301347"><enum>(2)</enum><text>includes any recommendations on ways in which unnecessary fuel use and emissions affecting air quality may be reduced—</text> <subparagraph id="HBB835E4A69754F9FB5B6176C473CB777"><enum>(A)</enum><text>without adversely affecting safety and security and increasing individual aircraft noise; and</text></subparagraph> <subparagraph id="H66F96515177A426A9EADE913F7851364"><enum>(B)</enum><text>while taking into account all aircraft emissions and the impact of the emissions on human health.</text></subparagraph></paragraph></subsection></section> <section id="H2DE53CE7284D4006A20601442077A9B5"><enum>754.</enum><header>Diesel fueled vehicles</header> <subsection id="HB7239ED8CD564A04AB03EDFCEAEBB344"><enum>(a)</enum><header>Definition of tier 2 emission standards</header><text>In this section, the term <term>tier 2 emission standards</term> means the motor vehicle emission standards that apply to passenger cars, light trucks, and larger passenger vehicles manufactured after the 2003 model year, as issued on February 10, 2000, by the Administrator of the Environmental Protection Agency under sections 202 and 211 of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7521">42 U.S.C. 7521</external-xref>, 7545).</text></subsection> <subsection id="HBF7E5D652BA94462B1CADDE23406BEAE"><enum>(b)</enum><header>Diesel combustion and after-treatment technologies</header><text>The Secretary of Energy shall accelerate efforts to improve diesel combustion and after-treatment technologies for use in diesel fueled motor vehicles.</text></subsection> <subsection id="H171AD0A31A914B71BF89E7B6AAED5CC9"><enum>(c)</enum><header>Goals</header><text>The Secretary shall carry out subsection (b) with a view toward achieving the following goals:</text> <paragraph id="H622CC9C562094F72AF09753008FDF60"><enum>(1)</enum><text>Developing and demonstrating diesel technologies that, not later than 2010, meet the following standards:</text> <subparagraph id="H676C7205F0DD4F9CB183272DAE372B95"><enum>(A)</enum><text>Tier 2 emission standards.</text></subparagraph> <subparagraph id="HC1D079BC213B466A99C5EA73652BE600"><enum>(B)</enum><text>The heavy-duty emissions standards of 2007 that are applicable to heavy-duty vehicles under regulations issued by the Administrator of the Environmental Protection Agency as of the date of enactment of this Act.</text></subparagraph></paragraph> <paragraph id="H330A235998584E90839500D303479191"><enum>(2)</enum><text>Developing the next generation of low-emission, high efficiency diesel engine technologies, including homogeneous charge compression ignition technology.</text></paragraph></subsection></section> <section id="H301C2F7AF6174370B74B15F274C8F6A3"><enum>755.</enum><header>Conserve by Bicycling Program</header> <subsection id="H5720AA6EA096433C8F16CD2920FFD1DD"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H2949F9640C34415FB2CA11C7BD2D9672"><enum>(1)</enum><header>Program</header><text>The term <term>program</term> means the Conserve by Bicycling Program established by subsection (b).</text></paragraph> <paragraph id="H5DCA7354C8C948909C06726D680028C"><enum>(2)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Transportation.</text></paragraph></subsection> <subsection id="HA2DEA8C83D0E49B3AD8C0032C300C5CA"><enum>(b)</enum><header>Establishment</header><text>There is established within the Department of Transportation a program to be known as the <quote>Conserve by Bicycling Program</quote>.</text></subsection> <subsection id="HA97490A111B0432B878C1F067FD10068"><enum>(c)</enum><header>Projects</header> <paragraph id="HD7602197703A46999E092EEA097CB85D"><enum>(1)</enum><header>In general</header><text>In carrying out the program, the Secretary shall establish not more than 10 pilot projects that are—</text> <subparagraph id="H550082881B704995954715CDCB01EF2"><enum>(A)</enum><text>dispersed geographically throughout the United States; and</text></subparagraph> <subparagraph id="HDD286841981F403FA2393FB0034FE284"><enum>(B)</enum><text>designed to conserve energy resources by encouraging the use of bicycles in place of motor vehicles.</text></subparagraph></paragraph> <paragraph id="H706F0D773135489797A4853D3900EC50"><enum>(2)</enum><header>Requirements</header><text>A pilot project described in paragraph (1) shall—</text> <subparagraph id="H1620CC9C31924F78A2673871E78A210"><enum>(A)</enum><text>use education and marketing to convert motor vehicle trips to bicycle trips;</text></subparagraph> <subparagraph id="H980828FE66CC440D8F46CFF05D8E6D77"><enum>(B)</enum><text>document project results and energy savings (in estimated units of energy conserved);</text></subparagraph> <subparagraph id="H51A1C24D90034DE3822466EB419EED2E"><enum>(C)</enum><text>facilitate partnerships among interested parties in at least 2 of the fields of—</text> <clause id="H08ADFFF343B74B02845198C23E41C87"><enum>(i)</enum><text>transportation;</text></clause> <clause id="H9C7D6807D0E74CE4829F91384C8F8980"><enum>(ii)</enum><text>law enforcement;</text></clause> <clause id="H381BD66CCB8F4C7D8B386209DFD236A8"><enum>(iii)</enum><text>education;</text></clause> <clause id="H90C216D96F934AE6B5108537407DBF91"><enum>(iv)</enum><text>public health;</text></clause> <clause id="HF74AD23C4E1D4D24BFBD009EE77E98D"><enum>(v)</enum><text>environment; and</text></clause> <clause id="H876A3559D39349FDB493EAC934691B9F"><enum>(vi)</enum><text>energy;</text></clause></subparagraph> <subparagraph id="HB9A4B14D7B204AA3A3D0EDFD7CC4DE2"><enum>(D)</enum><text>maximize bicycle facility investments;</text></subparagraph> <subparagraph id="HF074A7E518374DF9B4DBE0D36EDC7B00"><enum>(E)</enum><text>demonstrate methods that may be used in other regions of the United States; and</text></subparagraph> <subparagraph id="H69267D74FF6D46E600E5FD7CED4333AC"><enum>(F)</enum><text>facilitate the continuation of ongoing programs that are sustained by local resources.</text></subparagraph></paragraph> <paragraph id="HC1B97AD25C2542B49307626EB5DFE5AC"><enum>(3)</enum><header>Cost sharing</header><text>At least 20 percent of the cost of each pilot project described in paragraph (1) shall be provided from State or local sources.</text></paragraph></subsection> <subsection id="H45A6233448CC4ADEB18946271FBBB900"><enum>(d)</enum><header>Energy and bicycling research study</header> <paragraph id="HEDB8BB2279AB4A6299E6137C7E00DE51"><enum>(1)</enum><header>In general</header><text>Not later than 2 years after the date of enactment of this Act, the Secretary shall enter into a contract with the National Academy of Sciences for, and the National Academy of Sciences shall conduct and submit to Congress a report on, a study on the feasibility of converting motor vehicle trips to bicycle trips.</text></paragraph> <paragraph id="HE403290ABD694C0E9E8859844DE82C29"><enum>(2)</enum><header>Components</header><text>The study shall—</text> <subparagraph id="H9E6EEA7FB9554251BF1C42E8818FB043"><enum>(A)</enum><text>document the results or progress of the pilot projects under subsection (c);</text></subparagraph> <subparagraph id="HFBCE67813F6A4474BBBCC500A5F802B2"><enum>(B)</enum><text>determine the type and duration of motor vehicle trips that people in the United States may feasibly make by bicycle, taking into consideration factors such as—</text> <clause id="HB9992B12CCEA42CC84F0B576EEDCADED"><enum>(i)</enum><text>weather;</text></clause> <clause id="H9DA06F2565D744FA8E2714DDE1ABEAE6"><enum>(ii)</enum><text>land use and traffic patterns;</text></clause> <clause id="HABD3820B3491499FBA7769AE6DCF648B"><enum>(iii)</enum><text>the carrying capacity of bicycles; and</text></clause> <clause id="HFCA72DF535BB466B9D898351FADC3464"><enum>(iv)</enum><text>bicycle infrastructure;</text></clause></subparagraph> <subparagraph id="HF3DDF159CDF541D6BD0808B8208419F6"><enum>(C)</enum><text>determine any energy savings that would result from the conversion of motor vehicle trips to bicycle trips;</text></subparagraph> <subparagraph id="HE1B5AD796ABE4192B455958602B7596"><enum>(D)</enum><text>include a cost-benefit analysis of bicycle infrastructure investments; and</text></subparagraph> <subparagraph id="H46058991955741F889B46243A1F53F30"><enum>(E)</enum><text>include a description of any factors that would encourage more motor vehicle trips to be replaced with bicycle trips.</text></subparagraph></paragraph></subsection> <subsection id="H92FD766E50A34C5582AE529EEF895F6"><enum>(e)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary to carry out this section $6,200,000, to remain available until expended, of which—</text> <paragraph id="HA94F4BAE8179430A00D000FA9F404C51"><enum>(1)</enum><text>$5,150,000 shall be used to carry out pilot projects described in subsection (c);</text></paragraph> <paragraph id="H91E8AA71351141E191C8A87E1D83D8DF"><enum>(2)</enum><text>$300,000 shall be used by the Secretary to coordinate, publicize, and disseminate the results of the program; and</text></paragraph> <paragraph id="HAFEC2C928C8F410BB5B2E43B65E5233"><enum>(3)</enum><text>$750,000 shall be used to carry out subsection (d).</text></paragraph></subsection></section> <section id="HE5FA6D3DCC524FFCAF67CC0011D255E2"><enum>756.</enum><header>Reduction of engine idling of heavy-duty vehicles</header> <subsection id="H73E1C41562A3456BACFAAABC4F3B3D09"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H7D56BC6DE3924B6F92E22200944EA432"><enum>(1)</enum><header>Administrator</header><text>The term <term>Administrator</term> means the Administrator of the Environmental Protection Agency.</text></paragraph> <paragraph id="HDFFAB75A4F844FE688E7D932084FBA83"><enum>(2)</enum><header>Advanced truck stop electrification system</header><text>The term <term>advanced truck stop electrification system</term> means a stationary system that delivers heat, air conditioning, electricity, and communications, and is capable of providing verifiable and auditable evidence of use of those services, to a heavy-duty vehicle and any occupants of the heavy-duty vehicle without relying on components mounted onboard the heavy-duty vehicle for delivery of those services.</text></paragraph> <paragraph id="H348704D77CBF40E2B349A9F6FEA887E7"><enum>(3)</enum><header>Auxiliary power unit</header><text>The term <term>auxiliary power unit</term> means an integrated system that—</text> <subparagraph id="H2BF52B859C964CF700EF1E331B90D63E"><enum>(A)</enum><text>provides heat, air conditioning, engine warming, and electricity to the factory-installed components on a heavy-duty vehicle as if the main drive engine of the heavy-duty vehicle were running; and</text></subparagraph> <subparagraph id="H112365336B1E4A6499D3F37F11E39CD6"><enum>(B)</enum><text>is certified by the Administrator under part 89 of title 40, Code of Federal Regulations (or any successor regulation), as meeting applicable emission standards.</text></subparagraph></paragraph> <paragraph id="H8DA9A1DB7B0D47B1A8F070CE6CA95302"><enum>(4)</enum><header>Heavy-duty vehicle</header><text>The term <term>heavy-duty vehicle</term> means a vehicle that—</text> <subparagraph id="H114BD8C1B769491B804F81EC15A936C0"><enum>(A)</enum><text>has a gross vehicle weight rating greater than 12,500 pounds; and</text></subparagraph> <subparagraph id="H00CC6B192E51458298834187D56746B7"><enum>(B)</enum><text>is powered by a diesel engine.</text></subparagraph></paragraph> <paragraph id="HF4A6AC7FF51E4E93B534EDD940DD366F"><enum>(5)</enum><header>Idle reduction technology</header><text>The term <term>idle reduction technology</term> means an advanced truck stop electrification system, auxiliary power unit, or other device or system of devices that—</text> <subparagraph id="H56A9F112E9304746AA19E7F9A6A869E4"><enum>(A)</enum><text>is used to reduce long-duration idling of a heavy-duty vehicle; and</text></subparagraph> <subparagraph id="HABAC28DAA39942ABB11CC7EF358C8200"><enum>(B)</enum><text>allows for the main drive engine or auxiliary refrigeration engine of a heavy-duty vehicle to be shut down.</text></subparagraph></paragraph> <paragraph id="H351583304C2F4C0DBDE48553DD949E59"><enum>(6)</enum><header>Long-duration idling</header> <subparagraph id="H3D122B37B5D2483C9414C0A7BFDF2C60"><enum>(A)</enum><header>In general</header><text>The term <term>long-duration idling</term> means the operation of a main drive engine or auxiliary refrigeration engine of a heavy-duty vehicle, for a period greater than 15 consecutive minutes, at a time at which the main drive engine is not engaged in gear.</text></subparagraph> <subparagraph id="H1A3B572DA70B4DBD85CF529E12F2AE57"><enum>(B)</enum><header>Exclusions</header><text>The term <term>long-duration idling</term> does not include the operation of a main drive engine or auxiliary refrigeration engine of a heavy-duty vehicle during a routine stoppage associated with traffic movement or congestion.</text></subparagraph></paragraph></subsection> <subsection id="H087FAACC459E4EC785FB00D3D4E261FF"><enum>(b)</enum><header>Idle reduction technology benefits, programs, and studies</header> <paragraph id="HC2AFCD4267F64716A540A11CD796002"><enum>(1)</enum><header>In general</header><text>Not later than 90 days after the date of enactment of this Act, the Administrator shall—</text> <subparagraph id="H663139A58E144110864753C3798776B"><enum>(A)</enum> <clause display-inline="yes-display-inline" id="H76E8A25DE381459E983FCC942D51BCF"><enum>(i)</enum><text>commence a review of the mobile source air emission models of the Environmental Protection Agency used under the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7401">42 U.S.C. 7401 et seq.</external-xref>) to determine whether the models accurately reflect the emissions resulting from long-duration idling of heavy-duty vehicles and other vehicles and engines; and</text></clause> <clause indent="up1" id="H731AA926DDD74AF9BA1BB05CAE921264"><enum>(ii)</enum><text>update those models as the Administrator determines to be appropriate; and</text></clause></subparagraph> <subparagraph id="H9B937BACF0724ADE0011C1AEBE9173B4"><enum>(B)</enum> <clause display-inline="yes-display-inline" id="H343FADFFC7704E6EB300EEA8E8D03EEB"><enum>(i)</enum><text>commence a review of the emission reductions achieved by the use of idle reduction technology; and</text></clause> <clause indent="up1" id="H3BB02E643A9842CC914476D4BA1B2CEC"><enum>(ii)</enum><text>complete such revisions of the regulations and guidance of the Environmental Protection Agency as the Administrator determines to be appropriate.</text></clause></subparagraph></paragraph> <paragraph id="H87761FE1F2B24CC4AFC0BD77BDB5B53B"><enum>(2)</enum><header>Deadline for completion</header><text>Not later than 180 days after the date of enactment of this Act, the Administrator shall—</text> <subparagraph id="HF35318BA3AA54D2600EF47DB90DCA3D0"><enum>(A)</enum><text>complete the reviews under subparagraphs (A)(i) and (B)(i) of paragraph (1); and</text></subparagraph> <subparagraph id="HC0AC0A2AE3E445EB8C321D3E5531F69E"><enum>(B)</enum><text>prepare and make publicly available 1 or more reports on the results of the reviews.</text></subparagraph></paragraph> <paragraph id="HE0CE316132B74D9EBC80167D927335B"><enum>(3)</enum><header>Discretionary inclusions</header><text>The reviews under subparagraphs (A)(i) and (B)(i) of paragraph (1) and the reports under paragraph (2)(B) may address the potential fuel savings resulting from use of idle reduction technology.</text></paragraph> <paragraph id="H3A0254055E0D43E3A2CEEC3B5F298010"><enum>(4)</enum><header>Idle reduction deployment program</header> <subparagraph id="HD95DBBE753BD417FA8697B007BD1C1D5"><enum>(A)</enum><header>Establishment</header> <clause id="H0E6E02233A6B4BFE9380BDDD4945917"><enum>(i)</enum><header>In general</header><text>Not later than 90 days after the date of enactment of this Act, the Administrator, in consultation with the Secretary of Transportation, shall establish a program to support deployment of idle reduction technology.</text></clause> <clause id="H49E29BEFFA1D4F8C9B918F36AF3CB33D"><enum>(ii)</enum><header>Priority</header><text>The Administrator shall give priority to the deployment of idle reduction technology based on beneficial effects on air quality and ability to lessen the emission of criteria air pollutants.</text></clause></subparagraph> <subparagraph id="H278F11EC1F5E4DD092797ECECF752328"><enum>(B)</enum><header>Funding</header> <clause id="H8A3A41CEFCE64400858C5BB6579E86B3"><enum>(i)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Administrator to carry out subparagraph (A) $19,500,000 for fiscal year 2004, $30,000,000 for fiscal year 2005, and $45,000,000 for fiscal year 2006.</text></clause> <clause id="HDF5D007ACC4C4F209FC700F2E962F09B"><enum>(ii)</enum><header>Cost sharing</header><text>Subject to clause (iii), the Administrator shall require at least 50 percent of the costs directly and specifically related to any project under this section to be provided from non-Federal sources.</text></clause> <clause id="H283DAF9DA8F24DE9B1B53F96681DC8A8"><enum>(iii)</enum><header>Necessary and appropriate reductions</header><text>The Administrator may reduce the non-Federal requirement under clause (ii) if the Administrator determines that the reduction is necessary and appropriate to meet the objectives of this section.</text></clause></subparagraph></paragraph> <paragraph id="H69F9A35669B242F1A87079FCD45E46F3"><enum>(5)</enum><header>Idling location study</header> <subparagraph id="HCD3C4252D73249A3BBA12508BCDF75D7"><enum>(A)</enum><header>In general</header><text>Not later than 90 days after the date of enactment of this Act, the Administrator, in consultation with the Secretary of Transportation, shall commence a study to analyze all locations at which heavy-duty vehicles stop for long-duration idling, including—</text> <clause id="HC5F0A2CE383343BDA700844C6C44315B"><enum>(i)</enum><text>truck stops;</text></clause> <clause id="H27C1EBAC545D4B7B00ADC0262FD21BA"><enum>(ii)</enum><text>rest areas;</text></clause> <clause id="HD385F41F44E941E280A36D8268097DD8"><enum>(iii)</enum><text>border crossings;</text></clause> <clause id="H80C72F839B4843389F378142AA2EE8B6"><enum>(iv)</enum><text>ports;</text></clause> <clause id="HF92C9EC02BA346EA97D7758636DE0535"><enum>(v)</enum><text>transfer facilities; and</text></clause> <clause id="HBBD601728759420D8B488033A7C4807F"><enum>(vi)</enum><text>private terminals.</text></clause></subparagraph> <subparagraph id="H48A3F76F248C4D6A907300D3CF1CF4F"><enum>(B)</enum><header>Deadline for completion</header><text>Not later than 180 days after the date of enactment of this Act, the Administrator shall—</text> <clause id="H0423A70E873D4F0998B2CB52E4FBAB7C"><enum>(i)</enum><text>complete the study under subparagraph (A); and</text></clause> <clause id="HA12A067FEABB4C8EB6EF2487F628CEA"><enum>(ii)</enum><text>prepare and make publicly available 1 or more reports of the results of the study.</text></clause></subparagraph></paragraph></subsection> <subsection id="H2D72E99192504A71A8E94B00E5296D76"><enum>(c)</enum><header>Vehicle weight exemption</header><text><external-xref legal-doc="usc" parsable-cite="usc/23/127">Section 127(a)</external-xref> of title 23, United States Code, is amended—</text> <paragraph id="H67668C765C9F46839D00A5DD009188E3"><enum>(1)</enum><text>by designating the first through eleventh sentences as paragraphs (1) through (11), respectively; and</text></paragraph> <paragraph id="HD9FEF84C028441158B929D3CFDE1ED1D"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block id="H89F2173B869A4D3E80C051BD704046BD"> <paragraph id="H8F7BE420FC5246E1B738188947C1FFF7"><enum>(12)</enum><header>Heavy duty vehicles</header> <subparagraph id="H4F8A5C27E3274535801D630218B281A5"><enum>(A)</enum><header>In general</header><text>Subject to subparagraphs (B) and (C), in order to promote reduction of fuel use and emissions because of engine idling, the maximum gross vehicle weight limit and the axle weight limit for any heavy-duty vehicle equipped with an idle reduction technology shall be increased by a quantity necessary to compensate for the additional weight of the idle reduction system.</text></subparagraph> <subparagraph id="H57437E65D5A94079B821A93B0015E500"><enum>(B)</enum><header>Maximum weight increase</header><text>The weight increase under subparagraph (A) shall be not greater than 250 pounds.</text></subparagraph> <subparagraph id="H6212DF8DBB1A41AB91FCEA8567F1887D"><enum>(C)</enum><header>Proof</header><text>On request by a regulatory agency or law enforcement agency, the vehicle operator shall provide proof (through demonstration or certification) that—</text> <clause id="HB83D78E0FAF040C2B9851C43C3C86EF7"><enum>(i)</enum><text>the idle reduction technology is fully functional at all times; and</text></clause> <clause id="H4650A580978A4B6687FFE6638FD8C763"><enum>(ii)</enum><text>the 250-pound gross weight increase is not used for any purpose other than the use of idle reduction technology described in subparagraph (A).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section> <section id="H349817D5F26D4CA5A92B66009860E987"><enum>757.</enum><header>Biodiesel engine testing program</header> <subsection id="HD08B7E40BF5D4E5FA47132817F64D53B"><enum>(a)</enum><header>In general</header><text>Not later that 180 days after the date of enactment of this Act, the Secretary shall initiate a partnership with diesel engine, diesel fuel injection system, and diesel vehicle manufacturers and diesel and biodiesel fuel providers, to include biodiesel testing in advanced diesel engine and fuel system technology.</text></subsection> <subsection id="H77F2008E8DA149D7AD058C7FB781A269"><enum>(b)</enum><header>Scope</header><text>The program shall provide for testing to determine the impact of biodiesel from different sources on current and future emission control technologies, with emphasis on—</text> <paragraph id="HB2F5B5F362564DDD9F572FFF004293FD"><enum>(1)</enum><text>the impact of biodiesel on emissions warranty, in-use liability, and antitampering provisions;</text></paragraph> <paragraph id="H79AC02EBE36F486BBB17642DCE213510"><enum>(2)</enum><text>the impact of long-term use of biodiesel on engine operations;</text></paragraph> <paragraph id="H2C4BCAB8CE5C4C34A8607F48693373F7"><enum>(3)</enum><text>the options for optimizing these technologies for both emissions and performance when switching between biodiesel and diesel fuel; and</text></paragraph> <paragraph id="HAA33F2FED8054D2FB8CF90DF6B50DD4E"><enum>(4)</enum><text>the impact of using biodiesel in these fueling systems and engines when used as a blend with 2006 Environmental Protection Agency-mandated diesel fuel containing a maximum of 15-parts-per-million sulfur content.</text></paragraph></subsection> <subsection id="H31C1FE39E307495784978C29888118E2"><enum>(c)</enum><header>Report</header><text>Not later than 2 years after the date of enactment of this Act, the Secretary shall provide an interim report to Congress on the findings of the program, including a comprehensive analysis of impacts from biodiesel on engine operation for both existing and expected future diesel technologies, and recommendations for ensuring optimal emissions reductions and engine performance with biodiesel.</text></subsection> <subsection id="H1D000AB4EB694A91BB5478877CAB1593"><enum>(d)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated $5,000,000 for each of fiscal years 2004 through 2008 to carry out this section.</text></subsection> <subsection id="HC5618114852A4A9E95A6D7485C9782D"><enum>(e)</enum><header>Definition</header><text>For purposes of this section, the term <term>biodiesel</term> means a diesel fuel substitute produced from nonpetroleum renewable resources that meets the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545</external-xref>) and that meets the American Society for Testing and Materials D6751-02a Standard Specification for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels.</text></subsection></section> <section id="H3243F92F8B394C309C4DD810EC02C7E9"><enum>758.</enum><header>High occupancy vehicle exception</header><text display-inline="no-display-inline">Notwithstanding <external-xref legal-doc="usc" parsable-cite="usc/23/102">section 102(a)</external-xref> of title 23, United States Code, a State may permit a vehicle with fewer than 2 occupants to operate in high occupancy vehicle lanes if the vehicle—</text> <paragraph id="HF3AEC7BF1F294ED3BC8BBEB0CEB7EF74"><enum>(1)</enum><text>is a dedicated vehicle (as defined in section 301 of the Energy Policy Act of 1992 (42 U.S. 13211)); or</text></paragraph> <paragraph id="H5382197B90F846798BA44100B6F42BB2"><enum>(2)</enum><text>is a hybrid vehicle (as defined by the State for the purpose of this section).</text></paragraph></section></subtitle> <subtitle id="H61AA5BD3AFAC4C4D81781B3C5274BB48"><enum>E</enum><header>Automobile efficiency</header> <section id="H64C7498E9ED448D184FC4CAFF7ACB5E4"><enum>771.</enum><header>Authorization of appropriations for implementation and enforcement of fuel economy standards</header><text display-inline="no-display-inline">In addition to any other funds authorized by law, there are authorized to be appropriated to the National Highway Traffic Safety Administration to carry out its obligations with respect to average fuel economy standards $2,000,000 for each of fiscal years 2004 through 2008.</text></section> <section id="H86A077DAB68B4D49A852E3071EB2D548"><enum>772.</enum><header>Revised considerations for decisions on maximum feasible average fuel economy</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/49/32902">Section 32902(f)</external-xref> of title 49, United States Code, is amended to read as follows:</text> <quoted-block id="HD020711F68D7435300D072512794CB84"> <subsection id="HC964E418C6C24C3BBCE77D33C65064D2"><enum>(f)</enum><header>Considerations for decisions on maximum feasible average fuel economy</header><text>When deciding maximum feasible average fuel economy under this section, the Secretary of Transportation shall consider the following matters:</text> <paragraph id="H0FB7FD1D72554E0ABEF90520EEE9F94B"><enum>(1)</enum><text>Technological feasibility.</text></paragraph> <paragraph id="HD8ECAC6C011B4476B1AD8471B361F48"><enum>(2)</enum><text>Economic practicability.</text></paragraph> <paragraph id="H491E0A10D999446EBC5496AD2610FC02"><enum>(3)</enum><text>The effect of other motor vehicle standards of the Government on fuel economy.</text></paragraph> <paragraph id="HBB18287FA1F44606A7A53D8476AE83B2"><enum>(4)</enum><text>The need of the United States to conserve energy.</text></paragraph> <paragraph id="HD7F31FA633834A4991B13D74B8D1A76E"><enum>(5)</enum><text>The effects of fuel economy standards on passenger automobiles, nonpassenger automobiles, and occupant safety.</text></paragraph> <paragraph id="HE7A93FD5FADB4416867B47FD9555C754"><enum>(6)</enum><text>The effects of compliance with average fuel economy standards on levels of automobile industry employment in the United States.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H8810A9508959428281DB83131AA7183"><enum>773.</enum><header>Extension of maximum fuel economy increase for alternative fueled vehicles</header> <subsection id="HE27844EABC63424C98E4B5D37180542"><enum>(a)</enum><header>Manufacturing incentives</header><text><external-xref legal-doc="usc" parsable-cite="usc/49/32905">Section 32905</external-xref> of title 49, United States Code, is amended—</text> <paragraph id="H410DB1E582E14A68A8B5D62B7700D471"><enum>(1)</enum><text>in each of subsections (b) and (d), by striking <quote>1993–2004</quote> and inserting <quote>1993–2008</quote>;</text></paragraph> <paragraph id="H1FB88723E13D433DB7E9C9FDD93CFECB"><enum>(2)</enum><text>in subsection (f), by striking <quote>2001</quote> and inserting <quote>2005</quote>; and</text></paragraph> <paragraph id="H6855E9E32EBA443688001DCD8295C889"><enum>(3)</enum><text>in subsection (f)(1), by striking <quote>2004</quote> and inserting <quote>2008</quote>.</text></paragraph></subsection> <subsection id="H4D72D8C4AA0D4616ACFAE0144ECB00B6"><enum>(b)</enum><header>Maximum fuel economy increase</header><text>Subsection (a)(1) of <external-xref legal-doc="usc" parsable-cite="usc/49/32906">section 32906</external-xref> of title 49, United States Code, is amended—</text> <paragraph id="H8B9575EB8BC34C80844E42256BEE34C"><enum>(1)</enum><text>in subparagraph (A), by striking <quote>the model years 1993–2004</quote> and inserting <quote>model years 1993–2008</quote>; and</text></paragraph> <paragraph id="HCADDDCC3349245CB91A7919B96E3E91"><enum>(2)</enum><text>in subparagraph (B), by striking <quote>the model years 2005–2008</quote> and inserting <quote>model years 2009–2012</quote>.</text></paragraph></subsection></section> <section id="H134E5EB9B56A44C29D2DCBD63FD4E9F6"><enum>774.</enum><header>Study of feasibility and effects of reducing use of fuel for automobiles</header> <subsection id="H8731262E7C51418393B497A788A0344F"><enum>(a)</enum><header>In general</header><text>Not later than 30 days after the date of the enactment of this Act, the Administrator of the National Highway Traffic Safety Administration shall initiate a study of the feasibility and effects of reducing by model year 2012, by a significant percentage, the amount of fuel consumed by automobiles.</text></subsection> <subsection id="HB8918830939D40A182B300D3D3300CF"><enum>(b)</enum><header>Subjects of study</header><text>The study under this section shall include—</text> <paragraph id="H34B6C272884740A09C9579961DF23742"><enum>(1)</enum><text>examination of, and recommendation of alternatives to, the policy under current Federal law of establishing average fuel economy standards for automobiles and requiring each automobile manufacturer to comply with average fuel economy standards that apply to the automobiles it manufactures;</text></paragraph> <paragraph id="HCF868949B762427BA2862209F5B8BA37"><enum>(2)</enum><text>examination of how automobile manufacturers could contribute toward achieving the reduction referred to in subsection (a);</text></paragraph> <paragraph id="HA086D3D812ED43418772E85FD8BAA36C"><enum>(3)</enum><text>examination of the potential of fuel cell technology in motor vehicles in order to determine the extent to which such technology may contribute to achieving the reduction referred to in subsection (a); and</text></paragraph> <paragraph id="H781EAF947E824D01BAAF3BB0329453BD"><enum>(4)</enum><text>examination of the effects of the reduction referred to in subsection (a) on—</text> <subparagraph id="H67A91A70ABC74DDEA484C654C8C4F1D0"><enum>(A)</enum><text>gasoline supplies;</text></subparagraph> <subparagraph id="HDD818D3A8C1442D291A0F161CBF0DD64"><enum>(B)</enum><text>the automobile industry, including sales of automobiles manufactured in the United States;</text></subparagraph> <subparagraph id="H20EE050BDAF84B74B65BE85DFAD311EE"><enum>(C)</enum><text>motor vehicle safety; and</text></subparagraph> <subparagraph id="H18A5A11E4F4141D6008E42A74E7DBC8"><enum>(D)</enum><text>air quality.</text></subparagraph></paragraph></subsection> <subsection id="HA2769939E4A34933ABC83113EAFC9F8D"><enum>(c)</enum><header>Report</header><text>The Administrator shall submit to Congress a report on the findings, conclusion, and recommendations of the study under this section by not later than 1 year after the date of the enactment of this Act.</text></subsection></section></subtitle> <enum>VIII</enum><header>Hydrogen</header> <section id="H00D95B460B274AF0BA8D14EFC6084B5B" section-type="subsequent-section"><enum>801.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title:</text> <paragraph id="H7701FE6397234BCA97CA30AAC750F045"><enum>(1)</enum><header>Advisory Committee</header><text>The term <term>Advisory Committee</term> means the Hydrogen Technical and Fuel Cell Advisory Committee established under section 805.</text></paragraph> <paragraph id="HE5B67382F25B41AAA0192EE33428B3C4"><enum>(2)</enum><header>Department</header><text>The term <term>Department</term> means the Department of Energy.</text></paragraph> <paragraph id="H1125152C3D284C1790CD00D600A473B3"><enum>(3)</enum><header>Fuel cell</header><text>The term <term>fuel cell</term> means a device that directly converts the chemical energy of a fuel and an oxidant into electricity by an electrochemical process taking place at separate electrodes in the device.</text></paragraph> <paragraph id="HB1F5299F8C5F4714AEF703B956141640"><enum>(4)</enum><header>Infrastructure</header><text>The term <term>infrastructure</term> means the equipment, systems, or facilities used to produce, distribute, deliver, or store hydrogen.</text></paragraph> <paragraph id="HEEEC60BA8AC34E4CAC058C805E24A23"><enum>(5)</enum><header>Light duty vehicle</header><text>The term <term>light duty vehicle</term> means a car or truck classified by the Department of Transportation as a Class I or IIA vehicle.</text></paragraph> <paragraph id="HC28FAF9BCBAB4C038EA331F283034FE8"><enum>(6)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Energy.</text></paragraph></section> <section id="H21D9864E56DB45F8932D24877C27C4B9"><enum>802.</enum><header>Plan</header><text display-inline="no-display-inline">Not later than 6 months after the date of enactment of this Act, the Secretary shall transmit to Congress a coordinated plan for the programs described in this title and any other programs of the Department that are directly related to fuel cells or hydrogen. The plan shall describe, at a minimum—</text> <paragraph id="HCFEB3773B0764716BE11006DEAF46DFC"><enum>(1)</enum><text>the agenda for the next 5 years for the programs authorized under this title, including the agenda for each activity enumerated in section 803(a);</text></paragraph> <paragraph id="H1521E62A0B5142BEA292E18C73867E55"><enum>(2)</enum><text>the types of entities that will carry out the activities under this title and what role each entity is expected to play;</text></paragraph> <paragraph id="H5605CE14A909429B935DFAE32DB782AC"><enum>(3)</enum><text>the milestones that will be used to evaluate the programs for the next 5 years;</text></paragraph> <paragraph id="H19B7851890D045099EDAF4D17D789399"><enum>(4)</enum><text>the most significant technical and nontechnical hurdles that stand in the way of achieving the goals described in section 803(b), and how the programs will address those hurdles; and</text></paragraph> <paragraph id="H53FA9440C0354B7EA4A73605F82F0E6"><enum>(5)</enum><text>the policy assumptions that are implicit in the plan, including any assumptions that would affect the sources of hydrogen or the marketability of hydrogen-related products.</text></paragraph></section> <section id="H6854B8685EF849E09C3990C0A81771CC"><enum>803.</enum><header>Programs</header> <subsection id="H2EC881536804400E005874F0A58E957C"><enum>(a)</enum><header>Activities</header><text>The Secretary, in partnership with the private sector, shall conduct programs to address—</text> <paragraph id="H416E29F9E0E24569972EF11611F41712"><enum>(1)</enum><text>production of hydrogen from diverse energy sources, including—</text> <subparagraph id="H8E7541D2143A4EEA8472D885E4DAF892"><enum>(A)</enum><text>fossil fuels, which may include carbon capture and sequestration;</text></subparagraph> <subparagraph id="H204416A981294084938BC03800F1FD83"><enum>(B)</enum><text>hydrogen-carrier fuels (including ethanol and methanol);</text></subparagraph> <subparagraph id="H7F39F40310694600A5E6710943E5D748"><enum>(C)</enum><text>renewable energy resources, including biomass; and</text></subparagraph> <subparagraph id="H2329F7F8CEB04D7600224C00ECBA8032"><enum>(D)</enum><text>nuclear energy;</text></subparagraph></paragraph> <paragraph id="H0D09FF61521346FCAEF920BC59FB6808"><enum>(2)</enum><text>use of hydrogen for commercial, industrial, and residential electric power generation;</text></paragraph> <paragraph id="H8A6A5694E4B74E7694D6A3B7DCF51DE"><enum>(3)</enum><text>safe delivery of hydrogen or hydrogen-carrier fuels, including—</text> <subparagraph id="H3E95451880E64A51AA8F091C42D9F72F"><enum>(A)</enum><text>transmission by pipeline and other distribution methods; and</text></subparagraph> <subparagraph id="H59C073729AF14EBFBB8089AA62918FF1"><enum>(B)</enum><text>convenient and economic refueling of vehicles either at central refueling stations or through distributed on-site generation;</text></subparagraph></paragraph> <paragraph id="H4F4BD48FF42D4160B68BBF44E2547CFD"><enum>(4)</enum><text>advanced vehicle technologies, including—</text> <subparagraph id="HFBC21664936F44FE95EA43A6CD001642"><enum>(A)</enum><text>engine and emission control systems;</text></subparagraph> <subparagraph id="H892C0A278BDF4278844185EAD309D7F9"><enum>(B)</enum><text>energy storage, electric propulsion, and hybrid systems;</text></subparagraph> <subparagraph id="H2FFF7872560341D7BC9ECC454DD77B35"><enum>(C)</enum><text>automotive materials; and</text></subparagraph> <subparagraph id="HC032F2369E544A3BB4F0B4BA00E4E220"><enum>(D)</enum><text>other advanced vehicle technologies;</text></subparagraph></paragraph> <paragraph id="HE7B3C953E5554279B844E989752D2100"><enum>(5)</enum><text>storage of hydrogen or hydrogen-carrier fuels, including development of materials for safe and economic storage in gaseous, liquid, or solid form at refueling facilities and onboard vehicles;</text></paragraph> <paragraph id="HAFA277DEFE2D40D78B076EE7EEEE84E2"><enum>(6)</enum><text>development of safe, durable, affordable, and efficient fuel cells, including fuel-flexible fuel cell power systems, improved manufacturing processes, high-temperature membranes, cost-effective fuel processing for natural gas, fuel cell stack and system reliability, low temperature operation, and cold start capability;</text></paragraph> <paragraph id="H1F6A5EC53B394CF99FA98FAE3B169F64"><enum>(7)</enum><text>development, after consultation with the private sector, of necessary codes and standards (including international codes and standards and voluntary consensus standards adopted in accordance with OMB Circular A–119) and safety practices for the production, distribution, storage, and use of hydrogen, hydrogen-carrier fuels, and related products; and</text></paragraph> <paragraph id="HEBF32A3087CE4B9DB6F2B2404B294484"><enum>(8)</enum><text>a public education program to develop improved knowledge and acceptability of hydrogen-based systems.</text></paragraph></subsection> <subsection id="H3A20BC520DA741F38171B2BA1D814C2F"><enum>(b)</enum><header>Program goals</header> <paragraph id="H660BD28F21A7495D9E2E8B41725B356D"><enum>(1)</enum><header>Vehicles</header><text>For vehicles, the goals of the program are—</text> <subparagraph id="H93453A81634D473B9210B4004CDF2C8"><enum>(A)</enum><text>to enable a commitment by automakers no later than year 2015 to offer safe, affordable, and technically viable hydrogen fuel cell vehicles in the mass consumer market; and</text></subparagraph> <subparagraph id="HF1A9B78B7C854168B21D66AE4355A0BA"><enum>(B)</enum><text>to enable production, delivery, and acceptance by consumers of model year 2020 hydrogen fuel cell and other hydrogen-powered vehicles that will have—</text> <clause id="H422569933B7445EDBCDCE53402005644"><enum>(i)</enum><text>a range of at least 300 miles;</text></clause> <clause id="H7144D9FA5D5243768091AECF60B90956"><enum>(ii)</enum><text>improved performance and ease of driving;</text></clause> <clause id="HD4A5BFF2335443649DD3D896A88EC336"><enum>(iii)</enum><text>safety and performance comparable to vehicle technologies in the market; and</text></clause> <clause id="H2E4D39925CF342BB8D4FEBB34184BD00"><enum>(iv)</enum><text>when compared to light duty vehicles in model year 2003—</text> <subclause id="HF61321D2C4BF41F7BADD339785D460DE"><enum>(I)</enum><text>fuel economy that is substantially higher;</text></subclause> <subclause id="HFA97271A8F9F4BBEBCD3D48FAEC6BC"><enum>(II)</enum><text>substantially lower emissions of air pollutants; and</text></subclause> <subclause id="H568E965D8FF945B59930E483007E4CA9"><enum>(III)</enum><text>equivalent or improved vehicle fuel system crash integrity and occupant protection.</text></subclause></clause></subparagraph></paragraph> <paragraph id="H051C54AB452C407AABE2EBF5952F1B8"><enum>(2)</enum><header>Hydrogen energy and energy infrastructure</header><text>For hydrogen energy and energy infrastructure, the goals of the program are to enable a commitment not later than 2015 that will lead to infrastructure by 2020 that will provide—</text> <subparagraph id="H637256A1A1B04D1990BB52543DD47700"><enum>(A)</enum><text>safe and convenient refueling;</text></subparagraph> <subparagraph id="H2DD2CD5053C64398A748711900B44C9E"><enum>(B)</enum><text>improved overall efficiency;</text></subparagraph> <subparagraph id="HF8D0412F257448DCB81137234F7122FD"><enum>(C)</enum><text>widespread availability of hydrogen from domestic energy sources through—</text> <clause id="HB61A3310A982403497365F11AE5DE46E"><enum>(i)</enum><text>production, with consideration of emissions levels;</text></clause> <clause id="HE8A9324E7657419BB366A3E1744CB714"><enum>(ii)</enum><text>delivery, including transmission by pipeline and other distribution methods for hydrogen; and</text></clause> <clause id="H085C33D344D2476891F198B9232E3D8C"><enum>(iii)</enum><text>storage, including storage in surface transportation vehicles;</text></clause></subparagraph> <subparagraph id="HE0F7909D714C40D88FA2E9D465DD391"><enum>(D)</enum><text>hydrogen for fuel cells, internal combustion engines, and other energy conversion devices for portable, stationary, and transportation applications; and</text></subparagraph> <subparagraph id="HFBCC8E61FC634053913F42CA00F14238"><enum>(E)</enum><text>other technologies consistent with the Department’s plan.</text></subparagraph></paragraph> <paragraph id="HAE4A83BAD7DD4144911F8CFD28C5F7B"><enum>(3)</enum><header>Fuel cells</header><text>The goals for fuel cells and their portable, stationary, and transportation applications are to enable—</text> <subparagraph id="H41B70B2495C84AC0B0DEC3E79900B8E9"><enum>(A)</enum><text>safe, economical, and environmentally sound hydrogen fuel cells;</text></subparagraph> <subparagraph id="HAD4E5485A13F46D2BED8CAC988631B5B"><enum>(B)</enum><text>fuel cells for light duty and other vehicles; and</text></subparagraph> <subparagraph id="HDC422BEFD2D045FFB1BA87F6F3A33119"><enum>(C)</enum><text>other technologies consistent with the Department’s plan.</text></subparagraph></paragraph></subsection> <subsection id="H1ABDE1318E844FD5BF641FB446A909F4"><enum>(c)</enum><header>Demonstration</header><text>In carrying out the programs under this section, the Secretary shall fund a limited number of demonstration projects, consistent with a determination of the maturity, cost-effectiveness, and environmental impacts of technologies supporting each project. In selecting projects under this subsection, the Secretary shall, to the extent practicable and in the public interest, select projects that—</text> <paragraph id="HE8FAD9BAFCCF4D33824500E05DADB534"><enum>(1)</enum><text>involve using hydrogen and related products at existing facilities or installations, such as existing office buildings, military bases, vehicle fleet centers, transit bus authorities, or units of the National Park System;</text></paragraph> <paragraph id="H5619B10C8B1E44ED815BFC4B9C79849C"><enum>(2)</enum><text>depend on reliable power from hydrogen to carry out essential activities;</text></paragraph> <paragraph id="H6FDAE33340DC45D89CDEAE63BCEE1D54"><enum>(3)</enum><text>lead to the replication of hydrogen technologies and draw such technologies into the marketplace;</text></paragraph> <paragraph id="H3D5F6FDCB8344510B5546958D98E6D1B"><enum>(4)</enum><text>include vehicle, portable, and stationary demonstrations of fuel cell and hydrogen-based energy technologies;</text></paragraph> <paragraph id="HE7BE89BE7D8645279023C86A9C0F7DE"><enum>(5)</enum><text>address the interdependency of demand for hydrogen fuel cell applications and hydrogen fuel infrastructure;</text></paragraph> <paragraph id="H41FF58865D704CD79FE77DDBCCB6A765"><enum>(6)</enum><text>raise awareness of hydrogen technology among the public;</text></paragraph> <paragraph id="HD3F32FC325C24813B495368B3EF642D0"><enum>(7)</enum><text>facilitate identification of an optimum technology among competing alternatives;</text></paragraph> <paragraph id="H7136740EE27942629700F45999EA79CF"><enum>(8)</enum><text>address distributed generation using renewable sources; and</text></paragraph> <paragraph id="H8C219BA16CB24D05BDF46CC00E6ABBF"><enum>(9)</enum><text>address applications specific to rural or remote locations, including isolated villages and islands, the National Park System, and tribal entities.</text></paragraph><continuation-text continuation-text-level="subsection">The Secretary shall give preference to projects which address multiple elements contained in paragraphs (1) through (9).</continuation-text></subsection> <subsection id="H632225895C5C45E98BFC4399052F795C"><enum>(d)</enum><header>Deployment</header><text>In carrying out the programs under this section, the Secretary shall, in partnership with the private sector, conduct activities to facilitate the deployment of hydrogen energy and energy infrastructure, fuel cells, and advanced vehicle technologies.</text></subsection> <subsection id="HD7C2A11E5F4B488B00A463F6237B00C8"><enum>(e)</enum><header>Funding</header> <paragraph id="HC2885293E4AA4FF0AE94C1F8B5D49502"><enum>(1)</enum><header>In general</header><text>The Secretary shall carry out the programs under this section using a competitive, merit-based review process and consistent with the generally applicable Federal laws and regulations governing awards of financial assistance, contracts, or other agreements.</text></paragraph> <paragraph id="H73553EE794A84252A210C7B63FB8293"><enum>(2)</enum><header>Research centers</header><text>Activities under this section may be carried out by funding nationally recognized university-based or Federal laboratory research centers.</text></paragraph></subsection> <subsection id="H3E4F603AB0F04F8F820679ADD87F8C00"><enum>(f)</enum><header>Cost sharing</header> <paragraph id="H51B5770846444F76B4DDDFDD655C68E2"><enum>(1)</enum><header>Research and development</header><text>Except as otherwise provided in this title, for research and development programs carried out under this title the Secretary shall require a commitment from non-Federal sources of at least 20 percent of the cost of the project. The Secretary may reduce or eliminate the non-Federal requirement under this paragraph if the Secretary determines that the research and development is of a basic or fundamental nature or involves technical analyses or educational activities.</text></paragraph> <paragraph id="HE630B4E82DBF4151A090ED17752E7087"><enum>(2)</enum><header>Demonstration and commercial application</header><text>Except as otherwise provided in this title, the Secretary shall require at least 50 percent of the costs directly and specifically related to any demonstration or commercial application project under this title to be provided from non-Federal sources. The Secretary may reduce 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 the objectives of this title.</text></paragraph> <paragraph id="H7125A13DF9724EE3888832AA3E149969"><enum>(3)</enum><header>Calculation of amount</header><text>In calculating the amount of the non-Federal commitment under paragraph (1) or (2), the Secretary may include personnel, services, equipment, and other resources.</text></paragraph> <paragraph id="H3CCB9157100C47C193D3924F815EB185"><enum>(4)</enum><header>Size of non-federal share</header><text>The Secretary may consider the size of the non-Federal share in selecting projects.</text></paragraph></subsection> <subsection id="H46EB3A156A5B428E92F5515033673DBE"><enum>(g)</enum><header>Disclosure</header><text>Section 623 of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13293">42 U.S.C. 13293</external-xref>) relating to the protection of information shall apply to projects carried out through grants, cooperative agreements, or contracts under this title.</text></subsection></section> <section id="H6C7C066F5D9546718F7405B0D7A3EA37"><enum>804.</enum><header>Interagency task force</header> <subsection id="HC441E92A3EAD4465953372B1559B800"><enum>(a)</enum><header>Establishment</header><text>Not later than 120 days after the date of enactment of this Act, the President shall establish an interagency task force chaired by the Secretary with representatives from each of the following:</text> <paragraph id="HAEDE9EB9B09840CB9B8CD67C403068B5"><enum>(1)</enum><text>The Office of Science and Technology Policy within the Executive Office of the President.</text></paragraph> <paragraph id="HA246391C9328446CB7329B867EC42506"><enum>(2)</enum><text>The Department of Transportation.</text></paragraph> <paragraph id="H258454ED770E4B84AE741143A1776362"><enum>(3)</enum><text>The Department of Defense.</text></paragraph> <paragraph id="H940A527905024B7DB9706FB027957CF1"><enum>(4)</enum><text>The Department of Commerce (including the National Institute of Standards and Technology).</text></paragraph> <paragraph id="H4570550F6CD247F68F92E40627574EC9"><enum>(5)</enum><text>The Department of State.</text></paragraph> <paragraph id="H39E68990A1124C1085A0AAC143FD4E09"><enum>(6)</enum><text>The Environmental Protection Agency.</text></paragraph> <paragraph id="H0DBCFD5784E64DA784EC5ECC6CF92275"><enum>(7)</enum><text>The National Aeronautics and Space Administration.</text></paragraph> <paragraph id="H8D7CFDB16AD048079F9CF5056300F0A2"><enum>(8)</enum><text>Other Federal agencies as the Secretary determines appropriate.</text></paragraph></subsection> <subsection id="HCABDFFE003EF47B19E9C7B6F7B90DCAD"><enum>(b)</enum><header>Duties</header> <paragraph id="H13E9DB97E4D242D592CADFF727BCAB9E"><enum>(1)</enum><header>Planning</header><text>The interagency task force shall work toward—</text> <subparagraph id="HCB3F9B724925477CB897AA17CC9042DA"><enum>(A)</enum><text>a safe, economical, and environmentally sound fuel infrastructure for hydrogen and hydrogen-carrier fuels, including an infrastructure that supports buses and other fleet transportation;</text></subparagraph> <subparagraph id="H5D56A64337374701BE66A95508E6918E"><enum>(B)</enum><text>fuel cells in government and other applications, including portable, stationary, and transportation applications;</text></subparagraph> <subparagraph id="H690C8FABC46C448F9D0223CC24C2788E"><enum>(C)</enum><text>distributed power generation, including the generation of combined heat, power, and clean fuels including hydrogen;</text></subparagraph> <subparagraph id="HC3B89875C8F34CDE80005D03CFA02DDC"><enum>(D)</enum><text>uniform hydrogen codes, standards, and safety protocols; and</text></subparagraph> <subparagraph id="H96AB00B94C2444A4BCC58C6CE24D50A5"><enum>(E)</enum><text>vehicle hydrogen fuel system integrity safety performance.</text></subparagraph></paragraph> <paragraph id="H2B1824434E3C43D48D4C3DC8A2510029"><enum>(2)</enum><header>Activities</header><text>The interagency task force may organize workshops and conferences, may issue publications, and may create databases to carry out its duties. The interagency task force shall—</text> <subparagraph id="H696883E8A6824E23B65C54C9E9F1B33B"><enum>(A)</enum><text>foster the exchange of generic, nonproprietary information and technology among industry, academia, and government;</text></subparagraph> <subparagraph id="HD1249FCEF5594CD98797762E0597424F"><enum>(B)</enum><text>develop and maintain an inventory and assessment of hydrogen, fuel cells, and other advanced technologies, including the commercial capability of each technology for the economic and environmentally safe production, distribution, delivery, storage, and use of hydrogen;</text></subparagraph> <subparagraph id="HCFB5586EDDBA4E658B722FD73D6800DD"><enum>(C)</enum><text>integrate technical and other information made available as a result of the programs and activities under this title;</text></subparagraph> <subparagraph id="HEFE5B704D165478B80733E284BE562E1"><enum>(D)</enum><text>promote the marketplace introduction of infrastructure for hydrogen fuel vehicles; and</text></subparagraph> <subparagraph id="H7B5A27DA0FB64B31818518BD7B54A3CA"><enum>(E)</enum><text>conduct an education program to provide hydrogen and fuel cell information to potential end-users.</text></subparagraph></paragraph></subsection> <subsection id="HC1D852F6462D4D819B1965EE50E4A403"><enum>(c)</enum><header>Agency cooperation</header><text>The heads of all agencies, including those whose agencies are not represented on the interagency task force, shall cooperate with and furnish information to the interagency task force, the Advisory Committee, and the Department.</text></subsection></section> <section id="H458C3BD5F95840BAA9C6009BF9A0DEE6"><enum>805.</enum><header>Advisory Committee</header> <subsection id="HA362FF411A174452B0BC10E77B52BA36"><enum>(a)</enum><header>Establishment</header><text>The Hydrogen Technical and Fuel Cell Advisory Committee is established to advise the Secretary on the programs and activities under this title.</text></subsection> <subsection id="H4DC0CC192D894357AA9CAF6BA60075AF"><enum>(b)</enum><header>Membership</header> <paragraph id="H11B60062BAE44EACBB7573036139DBDC"><enum>(1)</enum><header>Members</header><text>The Advisory Committee shall be comprised of not fewer than 12 nor more than 25 members. The members shall be appointed by the Secretary to represent domestic industry, academia, professional societies, government agencies, Federal laboratories, previous advisory panels, and financial, environmental, and other appropriate organizations based on the Department’s assessment of the technical and other qualifications of committee members and the needs of the Advisory Committee.</text></paragraph> <paragraph id="HB9B72AADF4E3459EB162958757B2046E"><enum>(2)</enum><header>Terms</header><text>The term of a member of the Advisory Committee shall not be more than 3 years. The Secretary may appoint members of the Advisory Committee in a manner that allows the terms of the members serving at any time to expire at spaced intervals so as to ensure continuity in the functioning of the Advisory Committee. A member of the Advisory Committee whose term is expiring may be reappointed.</text></paragraph> <paragraph id="H0A49A48ED98B4ED4BC6E5DF2A492C065"><enum>(3)</enum><header>Chairperson</header><text>The Advisory Committee shall have a chairperson, who is elected by the members from among their number.</text></paragraph></subsection> <subsection id="HB748DEDBCCF548EBAEB2865891A4AEA7"><enum>(c)</enum><header>Review</header><text>The Advisory Committee shall review and make recommendations to the Secretary on—</text> <paragraph id="H525B743561CF4BB2B9F0FFC1929FABF4"><enum>(1)</enum><text>the implementation of programs and activities under this title;</text></paragraph> <paragraph id="HD4B37D501E104D6FAED08DDB582EEAE"><enum>(2)</enum><text>the safety, economical, and environmental consequences of technologies for the production, distribution, delivery, storage, or use of hydrogen energy and fuel cells; and</text></paragraph> <paragraph id="H9AE9F02A88EA4D21A95914D9FE7B04B2"><enum>(3)</enum><text>the plan under section 802.</text></paragraph></subsection> <subsection id="HEBAFB45AA8A4411BAD3234B9DABE2708"><enum>(d)</enum><header>Response</header> <paragraph id="H4859E1BA76A44F6BABB6624F95ED59B0"><enum>(1)</enum><header>Consideration of recommendations</header><text>The Secretary shall consider, but need not adopt, any recommendations of the Advisory Committee under subsection (c).</text></paragraph> <paragraph id="HE830325D8B71480DB3B3EBE53D43EC2E"><enum>(2)</enum><header>Biennial report</header><text>The Secretary shall transmit a biennial report to Congress describing any recommendations made by the Advisory Committee since the previous report. The report shall include a description of how the Secretary has implemented or plans to implement the recommendations, or an explanation of the reasons that a recommendation will not be implemented. The report shall be transmitted along with the President’s budget proposal.</text></paragraph></subsection> <subsection id="H5CA8E6C19ED64439A1D535CAA5433CF6"><enum>(e)</enum><header>Support</header><text>The Secretary shall provide resources necessary in the judgment of the Secretary for the Advisory Committee to carry out its responsibilities under this title.</text></subsection></section> <section id="H0758CCF8E4C7457195B7BBF87FBB6BF1"><enum>806.</enum><header>External review</header> <subsection id="H93486D90920B40B282C83D354E5DB08"><enum>(a)</enum><header>Plan</header><text>The Secretary shall enter into an arrangement with the National Academy of Sciences to review the plan prepared under section 802, which shall be completed not later than 6 months after the Academy receives the plan. Not later than 45 days after receiving the review, the Secretary shall transmit the review to Congress along with a plan to implement the review’s recommendations or an explanation of the reasons that a recommendation will not be implemented.</text></subsection> <subsection id="H00A62CF8689F46EDB547B0529457E169"><enum>(b)</enum><header>Additional review</header><text>The Secretary shall enter into an arrangement with the National Academy of Sciences under which the Academy will review the programs under section 803 during the fourth year following the date of enactment of this Act. The Academy’s review shall include the research priorities and technical milestones, and evaluate the progress toward achieving them. The review shall be completed not later than 5 years after the date of enactment of this Act. Not later than 45 days after receiving the review, the Secretary shall transmit the review to Congress along with a plan to implement the review’s recommendations or an explanation for the reasons that a recommendation will not be implemented.</text></subsection></section> <section id="HE2E9D6E2995446770067D7895B4C1760"><enum>807.</enum><header>Miscellaneous provisions</header> <subsection id="HBA8598D72D89404289D4F0F020E412C1"><enum>(a)</enum><header>Representation</header><text>The Secretary may represent the United States interests with respect to activities and programs under this title, in coordination with the Department of Transportation, the National Institute of Standards and Technology, and other relevant Federal agencies, before governments and nongovernmental organizations including—</text> <paragraph id="HD294FCBF520545DABFC3C033008FDDC0"><enum>(1)</enum><text>other Federal, State, regional, and local governments and their representatives;</text></paragraph> <paragraph id="HA94411C067664FABBDF65ECA178F91B"><enum>(2)</enum><text>industry and its representatives, including members of the energy and transportation industries; and</text></paragraph> <paragraph id="H2399371B569D4FAF8147853B267948E3"><enum>(3)</enum><text>in consultation with the Department of State, foreign governments and their representatives including international organizations.</text></paragraph></subsection> <subsection id="H32ADF9CE549142D1866E6449849535E5"><enum>(b)</enum><header>Regulatory authority</header><text>Nothing in this title shall be construed to alter the regulatory authority of the Department.</text></subsection></section> <section id="H16570ABD154D4774B071A7AE4CB1E750"><enum>808.</enum><header>Savings clause</header><text display-inline="no-display-inline">Nothing in this title shall be construed to affect the authority of the Secretary of Transportation that may exist prior to the date of enactment of this Act with respect to—</text> <paragraph id="HB774DFBE71C040269E5D6885E78EACC3"><enum>(1)</enum><text>research into, and regulation of, hydrogen-powered vehicles fuel systems integrity, standards, and safety under subtitle VI of title 49, United States Code;</text></paragraph> <paragraph id="HE24BE4ABE1AA4E4E8DFE1FB969335825"><enum>(2)</enum><text>regulation of hazardous materials transportation under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/51">chapter 51</external-xref> of title 49, United States Code;</text></paragraph> <paragraph id="H0F3EF03CE4EE42A9B016723B184F0019"><enum>(3)</enum><text>regulation of pipeline safety under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/601">chapter 601</external-xref> of title 49, United States Code;</text></paragraph> <paragraph id="H26678473688A4C58B4C0E2723EB7A637"><enum>(4)</enum><text>encouragement and promotion of research, development, and deployment activities relating to advanced vehicle technologies under <external-xref legal-doc="usc" parsable-cite="usc/49/5506">section 5506</external-xref> of title 49, United States Code;</text></paragraph> <paragraph id="HA9C2739B3A0746438D9D234DBCF2D8F6"><enum>(5)</enum><text>regulation of motor vehicle safety under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/301">chapter 301</external-xref> of title 49, United States Code;</text></paragraph> <paragraph id="H50E420DDA02042C2A5BA5098D4C8BE36"><enum>(6)</enum><text>automobile fuel economy under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/329">chapter 329</external-xref> of title 49, United States Code; or</text></paragraph> <paragraph id="HFDD50B01DBEC4F4BA093CA7C1AFF68C"><enum>(7)</enum><text>representation of the interests of the United States with respect to the activities and programs under the authority of title 49, United States Code.</text></paragraph></section> <section id="H4773A1F7A2E74B4EAF00D1B9F143A860"><enum>809.</enum><header>Authorization of appropriations</header><text display-inline="no-display-inline">There are authorized to be appropriated to the Secretary to carry out this title, in addition to any amounts made available for these purposes under other Acts—</text> <paragraph id="HF906F037C7744BD69822BB23EE832E68"><enum>(1)</enum><text>$273,500,000 for fiscal year 2004;</text></paragraph> <paragraph id="H619D03CD06A344FEAC9B5C428D14A39C"><enum>(2)</enum><text>$375,000,000 for fiscal year 2005;</text></paragraph> <paragraph id="HCE0E055F80A74050AF3DEFB57B6E9CA8"><enum>(3)</enum><text>$450,000,000 for fiscal year 2006;</text></paragraph> <paragraph id="H65F7DD4B89984913BDB58E00E37FAB71"><enum>(4)</enum><text>$500,000,000 for fiscal year 2007; and</text></paragraph> <paragraph id="H60C760294E504D88A4399C4CDAD5A409"><enum>(5)</enum><text>$550,000,000 for fiscal year 2008.</text></paragraph></section> <enum>IX</enum><header>Research and Development</header> <section id="H9D2A9258D7A04671B161BE4B1C15F9FD" section-type="subsequent-section"><enum>901.</enum><header>Goals</header> <subsection id="H3E66081918C94385BAFDFC11A6ED2DC"><enum>(a)</enum><header>In General</header><text>The Secretary shall conduct a balanced set of programs of energy research, development, demonstration, and commercial application to support Federal energy policy and programs by the Department. Such programs shall be focused on— </text> <paragraph id="HF8F76F4A4BA94BCA9107D7BD0025ACEA"><enum>(1)</enum><text>increasing the efficiency of all energy intensive sectors through conservation and improved technologies;</text></paragraph> <paragraph id="H8C4901CE2ED647588EB66BED6002E62"><enum>(2)</enum><text>promoting diversity of energy supply;</text></paragraph> <paragraph id="HA46E76C751DB4C808485A1339CDA8F78"><enum>(3)</enum><text>decreasing the Nation’s dependence on foreign energy supplies;</text></paragraph> <paragraph id="HCD11C5727740405DBA7EA7A53E2DC8C5"><enum>(4)</enum><text>improving United States energy security; and</text></paragraph> <paragraph id="HE7CBA2B474E04E74BBB1ABCCEFFA342B"><enum>(5)</enum><text>decreasing the environmental impact of energy-related activities.</text></paragraph></subsection> <subsection id="H4147457E73604E52BB5F00537DE78100"><enum>(b)</enum><header>Goals</header><text>The Secretary shall publish measurable 5-year cost and performance-based goals with each annual budget submission in at least the following areas:</text> <paragraph id="HA26B29E1152141228F1CDB75529752C"><enum>(1)</enum><text>Energy efficiency for buildings, energy-consuming industries, and vehicles.</text></paragraph> <paragraph id="HAC4AAD0AC7474BEDB2D9152D5D488201"><enum>(2)</enum><text>Electric energy generation (including distributed generation), transmission, and storage.</text></paragraph> <paragraph id="HD6E814DBF9344E08ADE6770234C43666"><enum>(3)</enum><text>Renewable energy technologies including wind power, photovoltaics, solar thermal systems, geothermal energy, hydrogen-fueled systems, biomass-based systems, biofuels, and hydropower.</text></paragraph> <paragraph id="H6CDFFD9B4A4743019BF4574BD37600FB"><enum>(4)</enum><text>Fossil energy including power generation, onshore and offshore oil and gas resource recovery, and transportation.</text></paragraph> <paragraph id="H36C27DF71F2E48FEAF9B05EC3100A18F"><enum>(5)</enum><text>Nuclear energy including programs for existing and advanced reactors and education of future specialists.</text></paragraph></subsection> <subsection id="HB16B76ACBE0E4F0896E7F2132D2D948"><enum>(c)</enum><header>Public comment</header><text>The Secretary shall provide mechanisms for input on the annually published goals from industry, university, and other public sources.</text></subsection> <subsection id="HE2DB40359EF947D4ADB4D82EC6AAB442"><enum>(d)</enum><header>Effect of goals</header> <paragraph id="H12A0960862D64DF700AF00B4A70D405"><enum>(1)</enum><header>No new authority or requirement</header><text>Nothing in subsection (a) or the annually published goals shall—</text> <subparagraph id="H50ADE36F71C44DF29E00731D1108D566"><enum>(A)</enum><text>create any new—</text> <clause id="H724672F523134E9FBA1EF9BDDDFCE300"><enum>(i)</enum><text>authority for any Federal agency; or</text></clause> <clause id="HAE3290B3E1E84749A3112265B7BB24DD"><enum>(ii)</enum><text>requirement for any other person;</text></clause></subparagraph> <subparagraph id="HE29A713B3DA24AD1AE86726E2E9BCF50"><enum>(B)</enum><text>be used by a Federal agency to support the establishment of regulatory standards or regulatory requirements; or</text></subparagraph> <subparagraph id="H6DEBAED601944E4D82CBE4F764EE97A5"><enum>(C)</enum><text>alter the authority of the Secretary to make grants or other awards.</text></subparagraph></paragraph> <paragraph id="H6D18F5C089C44BBCA3B951E005015B5"><enum>(2)</enum><header>No limitation</header><text>Nothing in this subsection shall be construed to limit the authority of the Secretary to impose conditions on grants or other awards based on the goals in subsection (a) or any subsequent modification thereto.</text></paragraph></subsection></section> <section id="HBC23DC7D3A954C229CDF970744214943"><enum>902.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this title:</text> <paragraph id="H7573CD3F697D4FC3A2CDEE7BF27DA513"><enum>(1)</enum><header>Department</header><text>The term <term>Department</term> means the Department of Energy.</text></paragraph> <paragraph id="H190AAD2B821445E1B6ACE78E23BEC499"><enum>(2)</enum><header>Departmental mission</header><text>The term <term>departmental mission</term> means any of the functions vested in the Secretary of Energy by the Department of Energy Organization Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7101">42 U.S.C. 7101 et seq.</external-xref>) or other law.</text></paragraph> <paragraph id="HB0A7E4527D6949D8AB5395F7D10041B6"><enum>(3)</enum><header>Institution of higher education</header><text>The term <term>institution of higher education</term> has the meaning given that term in section 101(a) of the <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/20/1001">20 U.S.C. 1001(a)</external-xref>).</text></paragraph> <paragraph id="HC7DB617807F74FC29EF8DA2112CE9133"><enum>(4)</enum><header>National Laboratory</header><text>The term <term>National Laboratory</term> means any of the following laboratories owned by the Department:</text> <subparagraph id="H02047EF5725940CC96B18D474C2B1267"><enum>(A)</enum><text>Ames Laboratory.</text></subparagraph> <subparagraph id="HF9BFEA5BC70A47CCB4149389744668E2"><enum>(B)</enum><text>Argonne National Laboratory.</text></subparagraph> <subparagraph id="H5521CB8F3FA948C68BDDD6B5A0DFDF51"><enum>(C)</enum><text>Brookhaven National Laboratory.</text></subparagraph> <subparagraph id="HB9BAE8662E434578B7037BED5B76C4A"><enum>(D)</enum><text>Fermi National Accelerator Laboratory.</text></subparagraph> <subparagraph id="H175E2BE58C194A0CA599FF03184C63FC"><enum>(E)</enum><text>Idaho National Engineering and Environmental Laboratory.</text></subparagraph> <subparagraph id="HBC770C9A2ED84D3782B6CF7DEA404E00"><enum>(F)</enum><text>Lawrence Berkeley National Laboratory.</text></subparagraph> <subparagraph id="H88AFBA72DE8D426183A2953E5156474"><enum>(G)</enum><text>Lawrence Livermore National Laboratory.</text></subparagraph> <subparagraph id="H3E562E93C9B7481795F9F3AD2460E188"><enum>(H)</enum><text>Los Alamos National Laboratory.</text></subparagraph> <subparagraph id="H51E34F50180B4C2380F9A63037CE041E"><enum>(I)</enum><text>National Energy Technology Laboratory.</text></subparagraph> <subparagraph id="H16A02864651A4B0CBE8D90E824145E92"><enum>(J)</enum><text>National Renewable Energy Laboratory.</text></subparagraph> <subparagraph id="H907C4A8FA67F4F3D92D43506FF42E291"><enum>(K)</enum><text>Oak Ridge National Laboratory.</text></subparagraph> <subparagraph id="H7A678AEDF3FD49AAAA2CA300C112D388"><enum>(L)</enum><text>Pacific Northwest National Laboratory.</text></subparagraph> <subparagraph id="H139C337D33194BE3983208315E5D0409"><enum>(M)</enum><text>Princeton Plasma Physics Laboratory.</text></subparagraph> <subparagraph id="HC5D14D1444F0489398821CBCBF7F2466"><enum>(N)</enum><text>Sandia National Laboratories.</text></subparagraph> <subparagraph id="HBB33E94ECD06424F97EA1B5C68AC2E00"><enum>(O)</enum><text>Stanford Linear Accelerator Center.</text></subparagraph> <subparagraph id="HD85E33C3E62A4935A5A8009593177F99"><enum>(P)</enum><text>Thomas Jefferson National Accelerator Facility.</text></subparagraph></paragraph> <paragraph id="HF7BAB81FFCD94A8EACADF72995EE00E5"><enum>(5)</enum><header>Nonmilitary energy laboratory</header><text>The term <term>nonmilitary energy laboratory</term> means the laboratories listed in paragraph (4), except for those listed in subparagraphs (G), (H), and (N).</text></paragraph> <paragraph id="H35B4861DCD874E0FAF8F974C4D52B43C"><enum>(6)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Energy.</text></paragraph> <paragraph id="HE8ACCDD8EB38406D87025FF98FCFCBDA"><enum>(7)</enum><header>Single-purpose research facility</header><text>The term <term>single-purpose research facility</term> means any of the primarily single-purpose entities owned by the Department or any other organization of the Department designated by the Secretary.</text></paragraph></section> <subtitle id="HFC6D74C05192441B92FE4503FE9A8D2"><enum>A</enum><header>Energy Efficiency</header> <section id="HC6256B9150AF48A393C747DFA6B1364"><enum>904.</enum><header>Energy efficiency</header> <subsection id="HF0C8EB8346F141F6AC70DF47AFC598D1"><enum>(a)</enum><header>In general</header><text>The following sums are authorized to be appropriated to the Secretary for energy efficiency and conservation research, development, demonstration, and commercial application activities, including activities authorized under this subtitle:</text> <paragraph id="HEA8A7AA4A953433D802D77785D00903B"><enum>(1)</enum><text>For fiscal year 2004, $616,000,000.</text></paragraph> <paragraph id="HBF3D0F0E823A43C6A70562869FD765B3"><enum>(2)</enum><text>For fiscal year 2005, $695,000,000.</text></paragraph> <paragraph id="H507A79C9DD444707AB0550BF22250189"><enum>(3)</enum><text>For fiscal year 2006, $772,000,000.</text></paragraph> <paragraph id="H59A725220777453CA50947D150362B22"><enum>(4)</enum><text>For fiscal year 2007, $865,000,000.</text></paragraph> <paragraph id="HC434F60B7FB54EB9AEF94C7ECE3C1BAA"><enum>(5)</enum><text>For fiscal year 2008, $920,000,000.</text></paragraph></subsection> <subsection id="H4DB7D1A8D84F4523973172AA3C102859"><enum>(b)</enum><header>Allocations</header><text>From amounts authorized under subsection (a), the following sums are authorized:</text> <paragraph id="H3547BF2F96C34F91AD30FAEEDE8964DF"><enum>(1)</enum><text>For activities under section 905—</text> <subparagraph id="H214E38371AF14026ABECE8576E6D406"><enum>(A)</enum><text>for fiscal year 2004, $20,000,000;</text></subparagraph> <subparagraph id="H0988392B42E64EF28DAD357FCB857E57"><enum>(B)</enum><text>for fiscal year 2005, $30,000,000;</text></subparagraph> <subparagraph id="H07B1085045C644EBAD69820611819FE7"><enum>(C)</enum><text>for fiscal year 2006, $50,000,000;</text></subparagraph> <subparagraph id="H7A2AE80FC7F74B78B37807ACBC482F8C"><enum>(D)</enum><text>for fiscal year 2007, $50,000,000; and</text></subparagraph> <subparagraph id="H6BD549E5259A4DAAB348C93DB4915FA6"><enum>(E)</enum><text>for fiscal year 2008, $50,000,000.</text></subparagraph></paragraph> <paragraph id="H8DF34B6145EA49508F3EE00057774496"><enum>(2)</enum><text>For activities under section 907—</text> <subparagraph id="HF4831DF76DE243529E59BE347C5D8D5B"><enum>(A)</enum><text>for fiscal year 2004, $4,000,000; and</text></subparagraph> <subparagraph id="H7110AC333FBB400A8C4B26BCFD4DD7EA"><enum>(B)</enum><text>for each of fiscal years 2005 through 2008, $7,000,000.</text></subparagraph></paragraph> <paragraph id="H76474AEEBC7C4C2CBE08420094BF76D3"><enum>(3)</enum><text>For activities under section 908—</text> <subparagraph id="HC47B5C4EE9AC43248E302E43B5D22928"><enum>(A)</enum><text>for fiscal year 2004, $20,000,000;</text></subparagraph> <subparagraph id="HF787CC00C3044D7EB42E1DE270324638"><enum>(B)</enum><text>for fiscal year 2005, $25,000,000;</text></subparagraph> <subparagraph id="HE29E9E11B0CB4A3CBBC46DC39972CDC5"><enum>(C)</enum><text>for fiscal year 2006, $30,000,000;</text></subparagraph> <subparagraph id="HB3D382E4EA474AF296542318EB4C9C00"><enum>(D)</enum><text>for fiscal year 2007, $35,000,000; and</text></subparagraph> <subparagraph id="H8E26314E6E8241E3A884D2AF363BBB6F"><enum>(E)</enum><text>for fiscal year 2008, $40,000,000.</text></subparagraph></paragraph> <paragraph id="HC3344FE372CC4DE6A629F2004455D5EE"><enum>(4)</enum><text>For activities under section 909, $2,000,000 for each of fiscal years 2005 through 2008.</text></paragraph></subsection> <subsection id="HD83100B2E65D4A0A8E4C008BE0AA93E9"><enum>(c)</enum><header>Extended authorization</header><text>There are authorized to be appropriated to the Secretary for activities under section 905, $50,000,000 for each of fiscal years 2009 through 2013.</text></subsection> <subsection id="H0CC05A3F15DB46FDAA619B77A8617FE2"><enum>(d)</enum><header>Limitation on use of funds</header><text>None of the funds authorized to be appropriated under this section may be used for—</text> <paragraph id="H0120438B7AFF4D66B420ECCE903DF7D"><enum>(1)</enum><text>the issuance and implementation of energy efficiency regulations;</text></paragraph> <paragraph id="H476B485BB3664A23BD3CB2B09723D2C7"><enum>(2)</enum><text>the Weatherization Assistance Program under part A of title IV of the Energy Conservation and Production Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6861">42 U.S.C. 6861 et seq.</external-xref>);</text></paragraph> <paragraph id="H90332E9E1090444895BBF8CA598EBD83"><enum>(3)</enum><text>the State Energy Program under part D of title III of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6321">42 U.S.C. 6321 et seq.</external-xref>); or</text></paragraph> <paragraph id="HED8FDEDB490A4A52968E672512354746"><enum>(4)</enum><text>the Federal Energy Management Program under part 3 of title V of the National Energy Conservation Policy Act (<external-xref legal-doc="usc" parsable-cite="usc/42/8251">42 U.S.C. 8251 et seq.</external-xref>).</text></paragraph></subsection></section> <section id="H4E9468E6789C4655B4FFB92E3232F471"><enum>905.</enum><header>Next generation lighting initiative</header> <subsection id="H6E4BA8D018AD40F9854196C58CC75985"><enum>(a)</enum><header>In general</header><text>The Secretary shall carry out a Next Generation Lighting Initiative in accordance with this section to support research, development, demonstration, and commercial application activities related to advanced solid-state lighting technologies based on white light emitting diodes.</text></subsection> <subsection id="HEF133227F9384868BE8B4DF46CD21B2D"><enum>(b)</enum><header>Objectives</header><text>The objectives of the initiative shall be to develop advanced solid-state organic and inorganic lighting technologies based on white light emitting diodes that, compared to incandescent and fluorescent lighting technologies, are longer lasting; more energy-efficient; and cost-competitive, and have less environmental impact.</text></subsection> <subsection id="H761C91218FED4883ACDCEF07AA5F3DAC"><enum>(c)</enum><header>Industry alliance</header><text>The Secretary shall, not later than 3 months after the date of enactment of this section, competitively select an Industry Alliance to represent participants that are private, for-profit firms which, as a group, are broadly representative of United States solid state lighting research, development, infrastructure, and manufacturing expertise as a whole.</text></subsection> <subsection id="H617EF05881764AA1A7956E90303D30D1"><enum>(d)</enum><header>Research</header> <paragraph id="H7AF7708273C743C3BF77C108C608140"><enum>(1)</enum><header>In general</header><text>The Secretary shall carry out the research activities of the Next Generation Lighting Initiative through competitively awarded grants to researchers, including Industry Alliance participants, National Laboratories, and institutions of higher education.</text></paragraph> <paragraph id="HC66BC90797934822B72D00C2696DA3A9"><enum>(2)</enum><header>Assistance from the industry alliance</header><text>The Secretary shall annually solicit from the Industry Alliance—</text> <subparagraph id="HF3A3F15831094023AF8FB1243D25C022"><enum>(A)</enum><text>comments to identify solid-state lighting technology needs;</text></subparagraph> <subparagraph id="HC59951D253304457A171676DA2E9189E"><enum>(B)</enum><text>assessment of the progress of the Initiative’s research activities; and</text></subparagraph> <subparagraph id="H162CAE11C5354A2B81BD9FF773741956"><enum>(C)</enum><text>assistance in annually updating solid-state lighting technology roadmaps.</text></subparagraph></paragraph> <paragraph id="H0E232AB89DA44C79ACF1E304873B4E27"><enum>(3)</enum><header>Availability of information and roadmaps</header><text>The information and roadmaps under paragraph (2) shall be available to the public and public response shall be solicited by the Secretary.</text></paragraph></subsection> <subsection id="H987C635F596943CA97A2C3A788F408F7"><enum>(e)</enum><header>Development, demonstration, and commercial application</header><text>The Secretary shall carry out a development, demonstration, and commercial application program for the Next Generation Lighting Initiative through competitively selected awards. The Secretary may give preference to participants of the Industry Alliance selected pursuant to subsection (c).</text></subsection> <subsection id="H7DE2D4D0E2D84F4481E5F5204424B360"><enum>(f)</enum><header>Intellectual property</header><text>The Secretary may require, in accordance with the authorities provided in <external-xref legal-doc="usc" parsable-cite="usc/35/202">section 202(a)(ii)</external-xref> of title 35, United States Code, section 152 of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2182">42 U.S.C. 2182</external-xref>), and section 9 of the Federal Nonnuclear Energy Research and Development Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/42/5908">42 U.S.C. 5908</external-xref>), that—</text> <paragraph id="HA63FD3FDDBAC48A59D854DA11EF9C50"><enum>(1)</enum><text>for any new invention resulting from activities under subsection (d)—</text> <subparagraph id="H97620B38DF624620AF00BFB8AD98D85"><enum>(A)</enum><text>the Industry Alliance members that are active participants in research, development, and demonstration activities related to the advanced solid-state lighting technologies that are the subject of this section shall be granted first option to negotiate with the invention owner nonexclusive licenses and royalties for uses of the invention related to solid-state lighting on terms that are reasonable under the circumstances; and</text></subparagraph> <subparagraph id="H8002BE8D90BC42619B34C17EECEE79B7"><enum>(B)</enum> <clause id="H4D367B6D34814C5A8C7603001DA04B54" display-inline="yes-display-inline"><enum>(i)</enum><text>for 1 year after a United States patent is issued for the invention, the patent holder shall not negotiate any license or royalty with any entity that is not a participant in the Industry Alliance described in subparagraph (A); and</text></clause> <clause id="HFA8E346F8E4241F4BC23168BD404BD77" indent="up1"><enum>(ii)</enum><text>during the year described in clause (i), the invention owner shall negotiate nonexclusive licenses and royalties in good faith with any interested participant in the Industry Alliance described in subparagraph (A); and</text></clause></subparagraph></paragraph> <paragraph id="H8444C0C7984549DB8354F1E58275001B"><enum>(2)</enum><text>such other terms as the Secretary determines are required to promote accelerated commercialization of inventions made under the Initiative.</text></paragraph></subsection> <subsection id="HD13A125A782745529F47B05FD5BA8FB"><enum>(g)</enum><header>National academy review</header><text>The Secretary shall enter into an arrangement with the National Academy of Sciences to conduct periodic reviews of the Next Generation Lighting Initiative. The Academy shall review the research priorities, technical milestones, and plans for technology transfer and progress towards achieving them. The Secretary shall consider the results of such reviews in evaluating the information obtained under subsection (d)(2).</text></subsection> <subsection id="H30AAFED49FEF45B3B55D00200044CBA2"><enum>(h)</enum><header>Definitions</header><text>As used in this section:</text> <paragraph id="H1E17B785E77E48F3A4E6AF85CDA4899D"><enum>(1)</enum><header>Advanced solid-state lighting</header><text>The term <quote>advanced solid-state lighting</quote> means a semiconducting device package and delivery system that produces white light using externally applied voltage.</text></paragraph> <paragraph id="H8F4012115CE34003BF4E002D2FCD95DB"><enum>(2)</enum><header>Research</header><text>The term <quote>research</quote> includes research on the technologies, materials, and manufacturing processes required for white light emitting diodes.</text></paragraph> <paragraph id="H46D4AC533B1F4B098CFAB9D867F1FC3E"><enum>(3)</enum><header>Industry alliance</header><text>The term <quote>Industry Alliance</quote> means an entity selected by the Secretary under subsection (c).</text></paragraph> <paragraph id="H9575925972CE49448E79847100005D22"><enum>(4)</enum><header>White light emitting diode</header><text>The term <quote>white light emitting diode</quote> means a semiconducting package, utilizing either organic or inorganic materials, that produces white light using externally applied voltage.</text></paragraph></subsection></section> <section id="HE04405A4254F4AAEBDC551D39B6BA78B"><enum>906.</enum><header>National building performance initiative</header> <subsection id="HC3C0D70210044A76AB6CF095D75F8D23"><enum>(a)</enum><header>Interagency group</header><text>Not later than 90 days after the date of enactment of this Act, the Director of the Office of Science and Technology Policy shall establish an interagency group to develop, in coordination with the advisory committee established under subsection (e), a National Building Performance Initiative (in this section referred to as the <quote>Initiative</quote>). The interagency group shall be co-chaired by appropriate officials of the Department and the Department of Commerce, who shall jointly arrange for the provision of necessary administrative support to the group.</text></subsection> <subsection id="H8569A0CB3B8B42CD9377009F616B3D32"><enum>(b)</enum><header>Integration of efforts</header><text>The Initiative, working with the National Institute of Building Sciences, shall integrate Federal, State, and voluntary private sector efforts to reduce the costs of construction, operation, maintenance, and renovation of commercial, industrial, institutional, and residential buildings.</text></subsection> <subsection id="H15E16076AB014E60960477700117BCE5"><enum>(c)</enum><header>Plan</header><text>Not later than 1 year after the date of enactment of this Act, the interagency group shall submit to Congress a plan for carrying out the appropriate Federal role in the Initiative. The plan shall include—</text> <paragraph id="H01E081ADA6EE4AAAAF6CC2F86B74119C"><enum>(1)</enum><text>research, development, demonstration, and commercial application of systems and materials for new construction and retrofit relating to the building envelope and building system components; and</text></paragraph> <paragraph id="HF3DA6197A17E487B94581B9E43361275"><enum>(2)</enum><text>the collection, analysis, and dissemination of research results and other pertinent information on enhancing building performance to industry, government entities, and the public.</text></paragraph></subsection> <subsection id="HE7D78274400A4C718100082BAE102EFD"><enum>(d)</enum><header>Department of energy role</header><text>Within the Federal portion of the Initiative, the Department shall be the lead agency for all aspects of building performance related to use and conservation of energy.</text></subsection> <subsection id="H7C9305D4B9AD4832A43BD1006F0083F9"><enum>(e)</enum><header>Advisory committee</header> <paragraph id="H7D1ADF9542774EFBB991E2AABA2CCBED"><enum>(1)</enum><header>Establishment</header><text>The Secretary, in consultation with the Secretary of Commerce and the Director of the Office of Science and Technology Policy, shall establish an advisory committee to—</text> <subparagraph id="H62914B085C2C43E2A54E4CB4E04C2C2E"><enum>(A)</enum><text>analyze and provide recommendations on potential private sector roles and participation in the Initiative; and</text></subparagraph> <subparagraph id="HB75475253B064FD0AA6598D6600075B4"><enum>(B)</enum><text>review and provide recommendations on the plan described in subsection (c).</text></subparagraph></paragraph> <paragraph id="HFA838E76C72D408EB9CBBFCA1D1FD8DE"><enum>(2)</enum><header>Membership</header><text>Membership of the advisory committee shall include representatives with a broad range of appropriate expertise, including expertise in—</text> <subparagraph id="HE208BE206D6F4D7CA2B316B1F1634A2"><enum>(A)</enum><text>building research and technology;</text></subparagraph> <subparagraph id="H29B02B041BDE49DA99648DF22DCCCCB7"><enum>(B)</enum><text>architecture, engineering, and building materials and systems; and</text></subparagraph> <subparagraph id="HB843786758844D94BB6066F0D1408919"><enum>(C)</enum><text>the residential, commercial, and industrial sectors of the construction industry.</text></subparagraph></paragraph></subsection> <subsection id="HE2EE14A457C948D6B07200A7B01636DE"><enum>(f)</enum><header>Construction</header><text>Nothing in this section provides any Federal agency with new authority to regulate building performance.</text></subsection></section> <section id="HBB6ECFC2039D4F7B91F9ACF07B7923A7"><enum>907.</enum><header>Secondary electric vehicle battery use program</header> <subsection id="H9D3D31DA1F9942BC9BBB89555104D240"><enum>(a)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="H4D22559AB183425B9E002E594DE9A74D"><enum>(1)</enum><header>Associated equipment</header><text>The term <quote>associated equipment</quote> means equipment located where the batteries will be used that is necessary to enable the use of the energy stored in the batteries.</text></paragraph> <paragraph id="HEB8A758913D74074BC14C1582942E924"><enum>(2)</enum><header>Battery</header><text>The term <quote>battery</quote> means an energy storage device that previously has been used to provide motive power in a vehicle powered in whole or in part by electricity.</text></paragraph></subsection> <subsection id="HFA6B2E4DE8344FB7B8C8D64D86C66E00"><enum>(b)</enum><header>Program</header><text>The Secretary shall establish and conduct a research, development, demonstration, and commercial application program for the secondary use of batteries if the Secretary finds that there are sufficient numbers of such batteries to support the program. The program shall be—</text> <paragraph id="H42A13F0E60E548D582762D11DC38131F"><enum>(1)</enum><text>designed to demonstrate the use of batteries in secondary applications, including utility and commercial power storage and power quality;</text></paragraph> <paragraph id="H40D389BAD92E4786865707ECB290A809"><enum>(2)</enum><text>structured to evaluate the performance, including useful service life and costs, of such batteries in field operations, and the necessary supporting infrastructure, including reuse and disposal of batteries; and</text></paragraph> <paragraph id="H9A6135486B364A30A6AA2D0882D5FECC"><enum>(3)</enum><text>coordinated with ongoing secondary battery use programs at the National Laboratories and in industry.</text></paragraph></subsection> <subsection id="HEC2B963BFCDC442C9F3EDDB11393BEE4"><enum>(c)</enum><header>Solicitation</header><text>Not later than 180 days after the date of enactment of this Act, if the Secretary finds under subsection (b) that there are sufficient numbers of batteries to support the program, the Secretary shall solicit proposals to demonstrate the secondary use of batteries and associated equipment and supporting infrastructure in geographic locations throughout the United States. The Secretary may make additional solicitations for proposals if the Secretary determines that such solicitations are necessary to carry out this section.</text></subsection> <subsection id="HFB15BE3AEBBD434DB42981EB001F3CF0"><enum>(d)</enum><header>Selection of proposals</header> <paragraph id="H5E62AFDA710A4F039DE854AF62A67203"><enum>(1)</enum><header>In general</header><text>The Secretary shall, not later than 90 days after the closing date established by the Secretary for receipt of proposals under subsection (c), select up to 5 proposals which may receive financial assistance under this section, subject to the availability of appropriations.</text></paragraph> <paragraph id="H96CA4162E41049A8A9FC422009329793"><enum>(2)</enum><header>Diversity; environmental effect</header><text>In selecting proposals, the Secretary shall consider diversity of battery type, geographic and climatic diversity, and life-cycle environmental effects of the approaches.</text></paragraph> <paragraph id="H021A6CCC28DF4DF1AD9B46069C7DE3C5"><enum>(3)</enum><header>Limitation</header><text>No 1 project selected under this section shall receive more than 25 percent of the funds authorized for the program under this section.</text></paragraph> <paragraph id="HC9CFE8282E7F413EAF7DE74555CEBF3"><enum>(4)</enum><header>Optimization of federal resources</header><text>The Secretary shall consider the extent of involvement of State or local government and other persons in each demonstration project to optimize use of Federal resources.</text></paragraph> <paragraph id="H925977DBABE443FDB73B033442A6B070"><enum>(5)</enum><header>Other criteria</header><text>The Secretary may consider such other criteria as the Secretary considers appropriate.</text></paragraph></subsection> <subsection id="HFD9A2226FE144B4BB2B8D4272E50717D"><enum>(e)</enum><header>Conditions</header><text>The Secretary shall require that—</text> <paragraph id="HA4CB071F706B42BA9DD9ECE981EB8C0"><enum>(1)</enum><text>relevant information be provided to the Department, the users of the batteries, the proposers, and the battery manufacturers;</text></paragraph> <paragraph id="H8068A97E758C46179958721FCD65876E"><enum>(2)</enum><text>the proposer provide at least 50 percent of the costs associated with the proposal; and</text></paragraph> <paragraph id="HAD0E0E322F13451D8DC735A3BAED0B1"><enum>(3)</enum><text>the proposer provide to the Secretary such information regarding the disposal of the batteries as the Secretary may require to ensure that the proposer disposes of the batteries in accordance with applicable law.</text></paragraph></subsection></section> <section id="H438C78857180435A0065F8E4F2D20710"><enum>908.</enum><header>Energy efficiency science initiative</header> <subsection id="H7D1A0E6646434190870237D675691B5"><enum>(a)</enum><header>Establishment</header><text>The Secretary shall establish an Energy Efficiency Science Initiative to be managed by the Assistant Secretary in the Department with responsibility for energy conservation under section 203(a)(9) of the Department of Energy Organization Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7133">42 U.S.C. 7133(a)(9)</external-xref>), in consultation with the Director of the Office of Science, for grants to be competitively awarded and subject to peer review for research relating to energy efficiency.</text></subsection> <subsection id="H499E7D62E7AF4CB08B6CCB7D24006E70"><enum>(b)</enum><header>Report</header><text>The Secretary shall submit to Congress, along with the President’s annual budget request under <external-xref legal-doc="usc" parsable-cite="usc/31/1105">section 1105(a)</external-xref> of title 31, United States Code, a report on the activities of the Energy Efficiency Science Initiative, including a description of the process used to award the funds and an explanation of how the research relates to energy efficiency.</text></subsection></section> <section id="HD45ABD09A90849CD9F3FF239AC55005F"><enum>909.</enum><header>Electric motor control technology</header><text display-inline="no-display-inline">The Secretary shall conduct a research, development, demonstration, and commercial application program on advanced control devices to improve the energy efficiency of electric motors used in heating, ventilation, air conditioning, and comparable systems.</text></section> <section id="HC7EAFCD53EB54277811F9FFABB3043A6"><enum>910.</enum><header>Advanced energy technology transfer centers</header> <subsection id="H00B93FA42FCC48B9ABCA74465CDF084"><enum>(a)</enum><header>Grants</header><text>Not later than 18 months after the date of enactment of this Act, the Secretary shall make grants to nonprofit institutions, State and local governments, or universities (or consortia thereof), to establish a geographically dispersed network of Advanced Energy Technology Transfer Centers, to be located in areas the Secretary determines have the greatest need of the services of such Centers.</text></subsection> <subsection id="H4FF9260D75EE42ECAEF412E5CC737DFC"><enum>(b)</enum><header>Activities</header> <paragraph id="H9F28653BD8754A70B538D576229529C1"><enum>(1)</enum><header>In general</header><text>Each Center shall operate a program to encourage demonstration and commercial application of advanced energy methods and technologies through education and outreach to building and industrial professionals, and to other individuals and organizations with an interest in efficient energy use.</text></paragraph> <paragraph id="HCA2363BD736B4B7E99496579953B7020"><enum>(2)</enum><header>Advisory panel</header><text>Each Center shall establish an advisory panel to advise the Center on how best to accomplish the activities under paragraph (1).</text></paragraph></subsection> <subsection id="HD0081972B9E64F108E59DFD3EF46759"><enum>(c)</enum><header>Application</header><text>A person seeking a grant under this section shall submit to the Secretary an application in such form and containing such information as the Secretary may require. The Secretary may award a grant under this section to an entity already in existence if the entity is otherwise eligible under this section.</text></subsection> <subsection id="HCA9157BBF74A4754B5EEA4469EF8C1DD"><enum>(d)</enum><header>Selection criteria</header><text>The Secretary shall award grants under this section on the basis of the following criteria, at a minimum:</text> <paragraph id="H02674D3F90484A91B586008809959DD3"><enum>(1)</enum><text>The ability of the applicant to carry out the activities in subsection (b).</text></paragraph> <paragraph id="H607F2C1DB1A345E79DF5F1FA490060CF"><enum>(2)</enum><text>The extent to which the applicant will coordinate the activities of the Center with other entities, such as State and local governments, utilities, and educational and research institutions.</text></paragraph></subsection> <subsection id="H55B64C7C20544025BF6ECB2CC55BABC2"><enum>(e)</enum><header>Matching funds</header><text>The Secretary shall require a non-Federal matching requirement of at least 50 percent of the costs of establishing and operating each Center.</text></subsection> <subsection id="HD6D310597F6A4100B41961DBD0D9CC5E"><enum>(f)</enum><header>Advisory committee</header><text>The Secretary shall establish an advisory committee to advise the Secretary on the establishment of Centers under this section. The advisory committee shall be composed of individuals with expertise in the area of advanced energy methods and technologies, including at least 1 representative from—</text> <paragraph id="H369B7BE8CF1C4DF69250DCFD19FDF25"><enum>(1)</enum><text>State or local energy offices;</text></paragraph> <paragraph id="H812AD82CD4A04A14AF52573E595E8BEE"><enum>(2)</enum><text>energy professionals;</text></paragraph> <paragraph id="HE046B37AABD741B4AF9FA4D286CD15A9"><enum>(3)</enum><text>trade or professional associations;</text></paragraph> <paragraph id="H2177A2E8E9D34B5DA91D8F9759031E43"><enum>(4)</enum><text>architects, engineers, or construction professionals;</text></paragraph> <paragraph id="HC98BB7CC02974BBCB976E21F8D2DE68"><enum>(5)</enum><text>manufacturers;</text></paragraph> <paragraph id="H60DFAF902DEC4F899F087B3BA45606EE"><enum>(6)</enum><text>the research community; and</text></paragraph> <paragraph id="HB96D9332F5104EB2A8166F8E94AEEAED"><enum>(7)</enum><text>nonprofit energy or environmental organizations.</text></paragraph></subsection> <subsection id="HAE71BCFC0E2E45C1A529C5C854DB43"><enum>(g)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="H0FC4F2D5CED74CDFBF81F2C99E40B0ED"><enum>(1)</enum><header>Advanced energy methods and technologies</header><text>The term <quote>advanced energy methods and technologies</quote> means all methods and technologies that promote energy efficiency and conservation, including distributed generation technologies, and life-cycle analysis of energy use.</text></paragraph> <paragraph id="H000C20A00D0841008B46CDCE665B8F13"><enum>(2)</enum><header>Center</header><text>The term <quote>Center</quote> means an Advanced Energy Technology Transfer Center established pursuant to this section.</text></paragraph> <paragraph id="H04FC8607D3CD4B06007600073CC25700"><enum>(3)</enum><header>Distributed generation</header><text>The term <quote>distributed generation</quote> means an electric power generation facility that is designed to serve retail electric consumers at or near the facility site.</text></paragraph></subsection></section></subtitle> <subtitle id="H7CD9853F99454FE696B4A8C565AB00D6"><enum>B</enum><header>Distributed Energy and Electric Energy Systems</header> <section id="H94970F96DAE24DE8B4DB62EE989D6C6D"><enum>911.</enum><header>Distributed energy and electric energy systems</header> <subsection id="H29AE7F0D06C4476500F286119C97CCDE"><enum>(a)</enum><header>In general</header><text>The following sums are authorized to be appropriated to the Secretary for distributed energy and electric energy systems activities, including activities authorized under this subtitle:</text> <paragraph id="H0BE9C95898024D66B566CC9D36B4985B"><enum>(1)</enum><text>For fiscal year 2004, $190,000,000.</text></paragraph> <paragraph id="HFB9B8800A5B4461BA11EDE04A02DD629"><enum>(2)</enum><text>For fiscal year 2005, $200,000,000.</text></paragraph> <paragraph id="H52DE94771B794742B4941E26278B08D0"><enum>(3)</enum><text>For fiscal year 2006, $220,000,000.</text></paragraph> <paragraph id="H5573403487324BB786A35E2C4C5EA925"><enum>(4)</enum><text>For fiscal year 2007, $240,000,000.</text></paragraph> <paragraph id="HF40B1A6B994A4C1ABF72323259773904"><enum>(5)</enum><text>For fiscal year 2008, $260,000,000.</text></paragraph></subsection> <subsection id="HCFC25341341E4DF99D00A7AE96941E27"><enum>(b)</enum><header>Micro-cogeneration energy technology</header><text>From amounts authorized under subsection (a), $20,000,000 for each of fiscal years 2004 and 2005 is authorized for activities under section 914.</text></subsection></section> <section id="H259EBD2F45874FBE8510AFD048E92F64"><enum>912.</enum><header>Hybrid distributed power systems</header> <subsection id="H762CA24CF5914C46BBE45EF46000B04B"><enum>(a)</enum><header>Requirement</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary shall develop and transmit to Congress a strategy for a comprehensive research, development, demonstration, and commercial application program to develop hybrid distributed power systems that combine—</text> <paragraph id="HE8825159579F47DDBBAB5E004C8B2BF5"><enum>(1)</enum><text>1 or more renewable electric power generation technologies of 10 megawatts or less located near the site of electric energy use; and</text></paragraph> <paragraph id="HC11ADEBB8F3D4D21B59231611665BFF7"><enum>(2)</enum><text>nonintermittent electric power generation technologies suitable for use in a distributed power system.</text></paragraph></subsection> <subsection id="HB1E4852819BA4A2FBBA26BB8EE713354"><enum>(b)</enum><header>Contents</header><text>The strategy shall—</text> <paragraph id="H6AC3861895014C5990DBDABDAB57481"><enum>(1)</enum><text>identify the needs best met with such hybrid distributed power systems and the technological barriers to the use of such systems;</text></paragraph> <paragraph id="H164758BC80DD46FC9B86D6799831C1CA"><enum>(2)</enum><text>provide for the development of methods to design, test, integrate into systems, and operate such hybrid distributed power systems;</text></paragraph> <paragraph id="H1919A2A3C5CE45B6A773847FF584EFF4"><enum>(3)</enum><text>include, as appropriate, research, development, demonstration, and commercial application on related technologies needed for the adoption of such hybrid distributed power systems, including energy storage devices and environmental control technologies;</text></paragraph> <paragraph id="H6599F76D26B04349BC87ACE3B1B85D5"><enum>(4)</enum><text>include research, development, demonstration, and commercial application of interconnection technologies for communications and controls of distributed generation architectures, particularly technologies promoting real-time response to power market information and physical conditions on the electrical grid; and</text></paragraph> <paragraph id="H620C4895627A44F989EDF3032847A7F8"><enum>(5)</enum><text>describe how activities under the strategy will be integrated with other research, development, demonstration, and commercial application activities supported by the Department related to electric power technologies.</text></paragraph></subsection></section> <section id="H6DC72EA6D1E44726B62EE31696A261CC"><enum>913.</enum><header>High power density industry program</header><text display-inline="no-display-inline"> The Secretary shall establish a comprehensive research, development, demonstration, and commercial application program to improve energy efficiency of high power density facilities, including data centers, server farms, and telecommunications facilities. Such program shall consider technologies that provide significant improvement in thermal controls, metering, load management, peak load reduction, or the efficient cooling of electronics.</text></section> <section id="HAF884ECA8B394C1CB0B9C8CF4C13D095"><enum>914.</enum><header>Micro-cogeneration energy technology</header><text display-inline="no-display-inline"> The Secretary shall make competitive, merit-based grants to consortia for the development of micro-cogeneration energy technology. The consortia shall explore—</text> <paragraph id="H2FBC17FC2844466696D005095E51FC7D"><enum>(1)</enum><text>the use of small-scale combined heat and power in residential heating appliances; and</text></paragraph> <paragraph id="H78140F0544C140C79E1703855C9F9962"><enum>(2)</enum><text>the use of excess power to operate other appliances within the residence and supply excess generated power to the power grid.</text></paragraph></section> <section id="HEC0E2BC6C3534A07BDED141288D3451B"><enum>915.</enum><header>Distributed energy technology demonstration program</header><text display-inline="no-display-inline"> The Secretary, within the sums authorized under section 911(a), may provide financial assistance to coordinating consortia of interdisciplinary participants for demonstrations designed to accelerate the utilization of distributed energy technologies, such as fuel cells, microturbines, reciprocating engines, thermally activated technologies, and combined heat and power systems, in highly energy intensive commercial applications.</text></section> <section id="H8C5E30B8911E4F6A9E6700B16B89FD72"><enum>916.</enum><header>Reciprocating power</header><text display-inline="no-display-inline"> The Secretary shall conduct a research, development, and demonstration program regarding fuel system optimization and emissions reduction after-treatment technologies for industrial reciprocating engines. Such after-treatment technologies shall use processes that reduce emissions by recirculating exhaust gases and shall be designed to be retrofitted to any new or existing diesel or natural gas engine used for power generation, peaking power generation, combined heat and power, or compression.</text></section></subtitle> <subtitle id="H58F69B61F8534D109950BE56CEA87CD"><enum>C</enum><header>Renewable energy</header> <section id="HAA2E2C1EE99B4CD68EB4F9B0043EF74"><enum>918.</enum><header>Renewable energy</header> <subsection id="H4B31784C591C48589EA3F9E3EB00C829"><enum>(a)</enum><header>In general</header><text>The following sums are authorized to be appropriated to the Secretary for renewable energy research, development, demonstration, and commercial application activities, including activities authorized under this subtitle:</text> <paragraph id="H4051AE1E2ED045DBB066F8427413BC00"><enum>(1)</enum><text>For fiscal year 2004, $480,000,000.</text></paragraph> <paragraph id="H55BD4E6CEBBB412883A3C0100380B00"><enum>(2)</enum><text>For fiscal year 2005, $550,000,000.</text></paragraph> <paragraph id="HBE02DBC2CE3D4CA0A4423794905ED510"><enum>(3)</enum><text>For fiscal year 2006, $610,000,000.</text></paragraph> <paragraph id="H3AAA4ED26FAC4A9F96E0DE58AD1C5D50"><enum>(4)</enum><text>For fiscal year 2007, $659,000,000.</text></paragraph> <paragraph id="H59B93664C527437AADEDA4EBC0E7A69C"><enum>(5)</enum><text>For fiscal year 2008, $710,000,000.</text></paragraph></subsection> <subsection id="H520F43B4D2034312A079221319A0A9A7"><enum>(b)</enum><header>Bioenergy</header><text>From the amounts authorized under subsection (a), the following sums are authorized to be appropriated to carry out section 919:</text> <paragraph id="HFC9D0177E7F64FFB888DDE2613870028"><enum>(1)</enum><text>For fiscal year 2004, $135,425,000.</text></paragraph> <paragraph id="H3CF286D6409D48E88543389FF8875CFE"><enum>(2)</enum><text>For fiscal year 2005, $155,600,000.</text></paragraph> <paragraph id="H7F04B315CF1E4F6C8092FAE98761E0FC"><enum>(3)</enum><text>For fiscal year 2006, $167,650,000.</text></paragraph> <paragraph id="HAF16ABAF18174CF7B4E0DAD19F86C161"><enum>(4)</enum><text>For fiscal year 2007, $180,000,000.</text></paragraph> <paragraph id="HBB0045930DB8449AA954EB16C0A1A435"><enum>(5)</enum><text>For fiscal year 2008, $192,000,000.</text></paragraph></subsection> <subsection id="HE64ECF3238574ECB89C37990CF11E663"><enum>(c)</enum><header>Concentrating solar power</header><text>From amounts authorized under subsection (a), the following sums are authorized to be appropriated to carry out section 920:</text> <paragraph id="HD66FAF0A552342FA8C4349675D60AB28"><enum>(1)</enum><text>For fiscal year 2004, $20,000,000.</text></paragraph> <paragraph id="H6B523E82E0074C0E9955D6571C5DECEE"><enum>(2)</enum><text>For fiscal year 2005, $40,000,000.</text></paragraph> <paragraph id="HA9B8F61BE45B49BB80101CE926001FF9"><enum>(3)</enum><text>For each of fiscal years 2006, 2007 and 2008, $50,000,000.</text></paragraph></subsection> <subsection id="H17186052E97B45FE8777D9BF772E8B98"><enum>(d)</enum><header>Public buildings</header><text>From the amounts authorized under subsection (a), $30,000,000 for each of the fiscal years 2004 through 2008 are authorized to be appropriated to carry out section 922.</text></subsection> <subsection id="H8374DD2408B74BB0AA8B9846E6D9AD09"><enum>(e)</enum><header>Limits on use of funds</header> <paragraph id="H1E703EAEB159441B9E0073CA0688FAA4"><enum>(1)</enum><header>No funds for Renewable Support and Implementation</header><text>None of the funds authorized to be appropriated under this section may be used for Renewable Support and Implementation.</text></paragraph> <paragraph id="H755E8A93FBE548988074701CFD23D299"><enum>(2)</enum><header>Grants</header><text>Of the funds authorized under subsection (b), not less than $5,000,000 for each fiscal year shall be made available for grants to Historically Black Colleges and Universities, Tribal Colleges, and Hispanic-Serving Institutions.</text></paragraph> <paragraph id="H1F8DBF9374AB40CFAE7600DB70AB368E"><enum>(3)</enum><header>Regional field verification Program</header><text>Of the funds authorized under subsection (a), not less than $4,000,000 for each fiscal year shall be made available for the Regional Field Verification Program of the Department.</text></paragraph> <paragraph id="H030575F361524FBDA3566D2DBF94B2E1"><enum>(4)</enum><header>Off-stream pumped storage hydropower</header><text>Of the funds authorized under subsection (a), such sums as may be necessary shall be made available for demonstration projects of off-stream pumped storage hydropower.</text></paragraph></subsection> <subsection id="H1CCED7891DD6493C8335522CCEF3FC0"><enum>(f)</enum><header>Consultation</header><text>In carrying out this subtitle, the Secretary, in consultation with the Secretary of Agriculture, shall demonstrate the use of advanced wind power technology, including combined use with coal gasification; biomass; geothermal energy systems; and other renewable energy technologies to assist in delivering electricity to rural and remote locations.</text></subsection></section> <section id="HB3BE1B30441E4FF191E88C0780358900"><enum>919.</enum><header>Bioenergy programs</header> <subsection id="H868DAC7DB4514AD397F64F02C01C4C56"><enum>(a)</enum><header>Definitions</header><text>For the purposes of this section:</text> <paragraph id="H20C035B4E3C045DDADCC02DEF0541759"><enum>(1)</enum><text>The term <term>agricultural byproducts</term> includes waste products, including poultry fat and poultry waste.</text></paragraph> <paragraph id="H3662B2E44A44423DAEB9C108F740E22F"><enum>(2)</enum><text>The term <term>cellulosic biomass</term> means any portion of a crop containing lignocellulose or hemicellulose, including barley grain, grapeseed, forest thinnings, rice bran, rice hulls, rice straw, soybean matter, and sugarcane bagasse, or any crop grown specifically for the purpose of producing cellulosic feedstocks.</text></paragraph></subsection> <subsection id="H76CAF15DC0AF406792F04FA2B6B1B9E"><enum>(b)</enum><header>Program</header><text>The Secretary shall conduct a program of research, development, demonstration, and commercial application for bioenergy, including—</text> <paragraph id="HEF3CC3545EA445F6AE55CA3D7D74CBE2"><enum>(1)</enum><text>biopower energy systems;</text></paragraph> <paragraph id="HD5C2AD4C4BF648BC80774100D167C5D4"><enum>(2)</enum><text>biofuels;</text></paragraph> <paragraph id="HDB02A3D815284C73AF286644882600FC"><enum>(3)</enum><text>bio-based products;</text></paragraph> <paragraph id="HA718AE8C616547C9A42062FE1CE075B8"><enum>(4)</enum><text>integrated biorefineries that may produce biopower, biofuels, and bio-based products;</text></paragraph> <paragraph id="H74BDDF0A3B2D4CFEA66953D1FF67DE47"><enum>(5)</enum><text>cross-cutting research and development in feedstocks and enzymes; and</text></paragraph> <paragraph id="H1CDC90B2BB05460E966CBC475FE53ECF"><enum>(6)</enum><text>economic analysis.</text></paragraph></subsection> <subsection id="H0CB1861B61A44095A8F1E4323FD7BD2"><enum>(c)</enum><header>Biofuels and bio-based products</header><text>The goals of the biofuels and bio-based products programs shall be to develop, in partnership with industry—</text> <paragraph id="HFE2160939B304E7EB6B364792656C000"><enum>(1)</enum><text>advanced biochemical and thermochemical conversion technologies capable of making biofuels that are price-competitive with gasoline or diesel in either internal combustion engines or fuel cell-powered vehicles, and bio-based products from a variety of feedstocks, including grains, cellulosic biomass, and other agricultural byproducts; and</text></paragraph> <paragraph id="H60522F14FC89420084D102477C5D6B8E"><enum>(2)</enum><text>advanced biotechnology processes capable of making biofuels and bio-based products with emphasis on development of biorefinery technologies using enzyme-based processing systems.</text></paragraph></subsection></section> <section id="HBB0AC50861344A32A33F1EAAB46D334F"><enum>920.</enum><header>Concentrating solar power research and development Program</header> <subsection id="HADCBDA34A6F1404FAD5CA18F5395C701"><enum>(a)</enum><header>In general</header><text>The Secretary shall conduct a program of research and development to evaluate the potential of concentrating solar power for hydrogen production, including cogeneration approaches for both hydrogen and electricity. Such program shall take advantage of existing facilities to the extent possible and shall include—</text> <paragraph id="H1F530B94CC1B43D9B9827ECAE58DB009"><enum>(1)</enum><text>development of optimized technologies that are common to both electricity and hydrogen production;</text></paragraph> <paragraph id="HBC78E1955D7C49C4B2C653CA175E50F9"><enum>(2)</enum><text>evaluation of thermochemical cycles for hydrogen production at the temperatures attainable with concentrating solar power;</text></paragraph> <paragraph id="HA4FB2BA63993489280757636952D004C"><enum>(3)</enum><text>evaluation of materials issues for the thermochemical cycles described in paragraph (2);</text></paragraph> <paragraph id="H619970502347495E94540182F8830088"><enum>(4)</enum><text>system architectures and economics studies; and</text></paragraph> <paragraph id="HB9D180FC079B47D1B5265843CA002E9F"><enum>(5)</enum><text>coordination with activities in the Advanced Reactor Hydrogen Cogeneration Project on high temperature materials, thermochemical cycles, and economic issues.</text></paragraph></subsection> <subsection id="H6F9E61D8D94C4CD489FD2376E9FB43D5"><enum>(b)</enum><header>Assessment</header><text>In carrying out the program under this section, the Secretary shall—</text> <paragraph id="H89CDB025AA8344AB93AB00368C092EB7"><enum>(1)</enum><text>assess conflicting guidance on the economic potential of concentrating solar power for electricity production received from the National Research Council report entitled <quote>Renewable Power Pathways: A Review of the U.S. Department of Energy’s Renewable Energy Programs</quote> in 2000 and subsequent Department-funded reviews of that report; and</text></paragraph> <paragraph id="HF94ABFF64B7B4116BBDEF4EF24072D8C"><enum>(2)</enum><text>provide an assessment of the potential impact of the technology before, or concurrent with, submission of the fiscal year 2006 budget.</text></paragraph></subsection> <subsection id="HB9DDDA73706446C3BFF3498897FBD644"><enum>(c)</enum><header>Report</header><text>Not later than 5 years after the date of enactment of this Act, the Secretary shall provide a report to Congress on the economic and technical potential for electricity or hydrogen production, with or without cogeneration, with concentrating solar power, including the economic and technical feasibility of potential construction of a pilot demonstration facility suitable for commercial production of electricity or hydrogen from concentrating solar power.</text></subsection></section> <section id="HAF61F9B0F98F448797C74E2E78EF8978"><enum>921.</enum><header>Miscellaneous projects</header><text display-inline="no-display-inline">The Secretary may conduct research, development, demonstration, and commercial application programs for—</text> <paragraph id="H723DC4DBA266406AA500CD72F802A166"><enum>(1)</enum><text>ocean energy, including wave energy; and</text></paragraph> <paragraph id="HBD641F94DAE749A09076322F018825E"><enum>(2)</enum><text>the combined use of renewable energy technologies with one another and with other energy technologies, including the combined use of wind power and coal gasification technologies.</text></paragraph></section> <section id="H07D1C86679AD4BC59D97A1581EF15783"><enum>922.</enum><header>Renewable energy in public buildings</header> <subsection id="HE5099760D60C42AF95662BE79D0040AE"><enum>(a)</enum><header>Demonstration and Technology transfer Program</header><text>The Secretary shall establish a program for the demonstration of innovative technologies for solar and other renewable energy sources in buildings owned or operated by a State or local government, and for the dissemination of information resulting from such demonstration to interested parties.</text></subsection> <subsection id="HF0605FE1ABBB4BC19151AA4448BB9288"><enum>(b)</enum><header>Limit on Federal funding</header><text>The Secretary shall provide under this section no more than 40 percent of the incremental costs of the solar or other renewable energy source project funded.</text></subsection> <subsection id="H5C397D3089854C1CAF90DC4F8DE3D700"><enum>(c)</enum><header>Requirement</header><text>As part of the application for awards under this section, the Secretary shall require all applicants—</text> <paragraph id="H1591911E1F274138A6CDAAF816F224B2"><enum>(1)</enum><text>to demonstrate a continuing commitment to the use of solar and other renewable energy sources in buildings they own or operate; and</text></paragraph> <paragraph id="HB94538CC44D34D098EE3FD1C10C57826"><enum>(2)</enum><text>to state how they expect any award to further their transition to the significant use of renewable energy.</text></paragraph></subsection></section> <section id="H660C2804E69A4ECD8BF942AFEE387B3C"><enum>923.</enum><header>Study of marine renewable energy options</header> <subsection id="H02387944757B49B7A6B9E27F08C47491"><enum>(a)</enum><header>In general</header><text>The Secretary shall enter into an arrangement with the National Academy of Sciences to conduct a study on—</text> <paragraph id="H7D668F0B675F471296C4E88B8750A86B"><enum>(1)</enum><text>the feasibility of various methods of renewable generation of energy from the ocean, including energy from waves, tides, currents, and thermal gradients; and</text></paragraph> <paragraph id="H49342CBE7F0042D3A914E45528FCA2C1"><enum>(2)</enum><text>the research, development, demonstration, and commercial application activities required to make marine renewable energy generation competitive with other forms of electricity generation.</text></paragraph></subsection> <subsection id="H35B9295A7D614391AFA5DA58611868B7"><enum>(b)</enum><header>Transmittal</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary shall transmit the study to Congress along with the Secretary’s recommendations for implementing the results of the study.</text></subsection></section></subtitle> <subtitle id="H041AEA34A2054DFFA8D59BD84E98FE20"><enum>D</enum><header>Nuclear energy</header> <section id="H0BE648CEE87343E79B85762F7BB4E2AD"><enum>924.</enum><header>Nuclear energy</header> <subsection id="H3D319665B2904B229B956C4DC7CD319C"><enum>(a)</enum><header>Core programs</header><text>The following sums are authorized to be appropriated to the Secretary for nuclear energy research, development, demonstration, and commercial application activities, including activities authorized under this subtitle, other than those described in subsection (b):</text> <paragraph id="HDCB7542FC1B94F51B4B81E97AD008205"><enum>(1)</enum><text>For fiscal year 2004, $273,000,000.</text></paragraph> <paragraph id="HCACF5948D8134920A2E2D4B7E532C8A2"><enum>(2)</enum><text>For fiscal year 2005, $355,000,000.</text></paragraph> <paragraph id="H08E371EFFF654B2785009146F2A633C7"><enum>(3)</enum><text>For fiscal year 2006, $430,000,000.</text></paragraph> <paragraph id="H5824DFDE5B5C496400A6D7E27B1BB20"><enum>(4)</enum><text>For fiscal year 2007, $455,000,000.</text></paragraph> <paragraph id="H50915BB008B94954AC1EDB3300EE9116"><enum>(5)</enum><text>For fiscal year 2008, $545,000,000.</text></paragraph></subsection> <subsection id="H0F7640220B034EC9823B8D0963003300"><enum>(b)</enum><header>Nuclear infrastructure support</header><text>The following sums are authorized to be appropriated to the Secretary for activities under section 925(e):</text> <paragraph id="H68CB8832E6C64EF08CC59264378FD54D"><enum>(1)</enum><text>For fiscal year 2004, $125,000,000.</text></paragraph> <paragraph id="H966E8AAA0B824208A22CBD4D7FFEAB5C"><enum>(2)</enum><text>For fiscal year 2005, $130,000,000.</text></paragraph> <paragraph id="H4861EC2BB34C4330A7C820AC6C10004C"><enum>(3)</enum><text>For fiscal year 2006, $135,000,000.</text></paragraph> <paragraph id="H47CA7DFD44A7484FB13063C0893EC3A8"><enum>(4)</enum><text>For fiscal year 2007, $140,000,000.</text></paragraph> <paragraph id="H06EA18F7EF0E49A796821D441B151DC8"><enum>(5)</enum><text>For fiscal year 2008, $145,000,000.</text></paragraph></subsection> <subsection id="H26C1EB4E9902450895360900FB58F4B4"><enum>(c)</enum><header>Allocations</header><text>From amounts authorized under subsection (a), the following sums are authorized:</text> <paragraph id="H9E633BE6042D4CEAA9BF93A7E7567EAD"><enum>(1)</enum><text>For activities under section 926—</text> <subparagraph id="HB4098EEC25C84A10A98000390261BAF0"><enum>(A)</enum><text>for fiscal year 2004, $140,000,000;</text></subparagraph> <subparagraph id="H16A9BF2740854358BFB794BC59908C72"><enum>(B)</enum><text>for fiscal year 2005, $145,000,000;</text></subparagraph> <subparagraph id="H2CC1813D9FB7446AAD7389C1F72BAC31"><enum>(C)</enum><text>for fiscal year 2006, $150,000,000;</text></subparagraph> <subparagraph id="H54DF8DA910214C64BBBEFCF823CEB8D4"><enum>(D)</enum><text>for fiscal year 2007, $155,000,000; and</text></subparagraph> <subparagraph id="HD1D2451EDA6E45EA9B236E3F11BFBDB6"><enum>(E)</enum><text>for fiscal year 2008, $275,000,000.</text></subparagraph></paragraph> <paragraph id="H1BAB0281AAE44C72B268002F53D4EC2F"><enum>(2)</enum><text>For activities under section 927—</text> <subparagraph id="H3044C041F530467294BE45BCCD58A6"><enum>(A)</enum><text>for fiscal year 2004, $35,200,000;</text></subparagraph> <subparagraph id="H5F1C6788A3DD427AA5BE39F85740095"><enum>(B)</enum><text>for fiscal year 2005, $44,350,000;</text></subparagraph> <subparagraph id="H4F720527700A44639CFA7C9877B9FCB4"><enum>(C)</enum><text>for fiscal year 2006, $49,200,000;</text></subparagraph> <subparagraph id="H514C852658D04A93BB94BB5803F39091"><enum>(D)</enum><text>for fiscal year 2007, $54,950,000; and</text></subparagraph> <subparagraph id="H19AF8E257B2747B7B250702585665C12"><enum>(E)</enum><text>for fiscal year 2008, $60,000,000.</text></subparagraph></paragraph> <paragraph id="HB6D7A4E52A274387923B4C2270030936"><enum>(3)</enum><text>For activities under section 929, for each of fiscal years 2004 through 2008, $6,000,000.</text></paragraph></subsection> <subsection id="H4DBB5E3A2BE54FE9966F42BEB4BBD703"><enum>(d)</enum><header>Limitation on use of funds</header><text>None of the funds authorized under this section may be used for decommissioning the Fast Flux Test Facility.</text></subsection></section> <section id="H53A91BFC8A544429A0A12CB5327F5572"><enum>925.</enum><header>Nuclear energy research and development programs</header> <subsection id="H3A16FFA6EDE041D4979092167F8976DF"><enum>(a)</enum><header>Nuclear Energy Research Initiative</header><text>The Secretary shall carry out a Nuclear Energy Research Initiative for research and development related to nuclear energy.</text></subsection> <subsection id="H190269279744479BBCDF0015C8E7CCFE"><enum>(b)</enum><header>Nuclear Energy Plant Optimization Program</header><text>The Secretary shall carry out a Nuclear Energy Plant Optimization Program to support research and development activities addressing reliability, availability, productivity, component aging, safety, and security of existing nuclear power plants.</text></subsection> <subsection id="HF862C0D347B84686A6E5E1EFEC8B8434"><enum>(c)</enum><header>Nuclear Power 2010 Program</header><text>The Secretary shall carry out a Nuclear Power 2010 Program, consistent with recommendations in the October 2001 report entitled <quote>A Roadmap to Deploy New Nuclear Power Plants in the United States by 2010</quote> issued by the Nuclear Energy Research Advisory Committee of the Department. Whatever type of reactor is chosen for the hydrogen cogeneration project under subtitle C of title VI, that type shall not be addressed in the Program under this section. The Program shall include—</text> <paragraph id="H7750F8782C2A4E2098845DB324CAFCFC"><enum>(1)</enum><text>support for first-of-a-kind engineering design and certification expenses of advanced nuclear power plant designs, which offer improved safety and economics over current conventional plants and the promise of near-term to medium-term commercial deployment;</text></paragraph> <paragraph id="HB1BD2A76D2354874A97BC07BFF85D3F"><enum>(2)</enum><text>action by the Secretary to encourage domestic power companies to install new nuclear plant capacity as soon as possible;</text></paragraph> <paragraph id="H2A9B430B6DC344A7A51DBEC38500008F"><enum>(3)</enum><text>utilization of the expertise and capabilities of industry, universities, and National Laboratories in evaluation of advanced nuclear fuel cycles and fuels testing;</text></paragraph> <paragraph id="H0ED31EC23EAA4748A92F82ED5F81603F"><enum>(4)</enum><text>consideration of proliferation-resistant passively-safe, small reactors suitable for long-term electricity production without refueling and suitable for use in remote installations;</text></paragraph> <paragraph id="H9A70F3CEE2B94CE1B88F30F9A7DFB9C"><enum>(5)</enum><text>participation of international collaborators in research, development, design, and deployment efforts as appropriate and consistent with United States interests in nonproliferation of nuclear weapons;</text></paragraph> <paragraph id="H313757436B9D44E20031657280DAA037"><enum>(6)</enum><text>encouragement for university and industry participation; and</text></paragraph> <paragraph id="HDD168202A7F84568883CEF4248BEF7DB"><enum>(7)</enum><text>selection of projects such as to strengthen the competitive position of the domestic nuclear power industrial infrastructure.</text></paragraph></subsection> <subsection id="H6D9E2485E2964BF3AF46382478C72DCC"><enum>(d)</enum><header>Generation IV Nuclear Energy Systems Initiative</header><text>The Secretary shall carry out a Generation IV Nuclear Energy Systems Initiative to develop an overall technology plan and to support research and development necessary to make an informed technical decision about the most promising candidates for eventual commercial application. The Initiative shall examine advanced proliferation-resistant and passively safe reactor designs, including designs that—</text> <paragraph id="H3EE6F9F317FB4272AEF92B2B16312B44"><enum>(1)</enum><text>are economically competitive with other electric power generation plants;</text></paragraph> <paragraph id="H176A72A3E81942E49B2EED19AA942BDD"><enum>(2)</enum><text>have higher efficiency, lower cost, and improved safety compared to reactors in operation on the date of enactment of this Act;</text></paragraph> <paragraph id="H18096C32D2BB4836AB625656CDC005C0"><enum>(3)</enum><text>use fuels that are proliferation-resistant and have substantially reduced production of high-level waste per unit of output; and</text></paragraph> <paragraph id="H83B1AA9734D44D5E841D15593DCC76A9"><enum>(4)</enum><text>use improved instrumentation.</text></paragraph></subsection> <subsection id="HF2C83048F1A2402C8B1E367B48EBFBBE"><enum>(e)</enum><header>Nuclear infrastructure support</header><text>The Secretary shall develop and implement a strategy for the facilities of the Office of Nuclear Energy, Science, and Technology and shall transmit a report containing the strategy along with the President’s budget request to Congress for fiscal year 2006.</text></subsection></section> <section id="H9AD015ED86A44D518D636310A012B199"><enum>926.</enum><header>Advanced fuel cycle Initiative</header> <subsection id="H05BD3D0F30514420ACD00276DECEDA"><enum>(a)</enum><header>In general</header><text>The Secretary, through the Director of the Office of Nuclear Energy, Science, and Technology, shall conduct an advanced fuel recycling technology research and development program to evaluate proliferation-resistant fuel recycling and transmutation technologies that minimize environmental or public health and safety impacts as an alternative to aqueous reprocessing technologies deployed as of the date of enactment of this Act in support of evaluation of alternative national strategies for spent nuclear fuel and the Generation IV advanced reactor concepts, subject to annual review by the Secretary’s Nuclear Energy Research Advisory Committee or other independent entity, as appropriate. Opportunities to enhance progress of the program through international cooperation should be sought.</text></subsection> <subsection id="H1469C42F92224709A3F6AAB9069D7C37"><enum>(b)</enum><header>Reports</header><text>The Secretary shall report on the activities of the advanced fuel recycling technology research and development program as part of the Department’s annual budget submission.</text></subsection></section> <section id="HBAC318E048F644A5AF454BA745E14024"><enum>927.</enum><header>University nuclear science and engineering support</header> <subsection id="H5873175E83214FE1A767B0EEC15DDFD5"><enum>(a)</enum><header>Establishment</header><text>The Secretary shall support a program to invest in human resources and infrastructure in the nuclear sciences and engineering and related fields (including health physics and nuclear and radiochemistry), consistent with departmental missions related to civilian nuclear research and development.</text></subsection> <subsection id="H6DBCFD59A4124D6FB888E0B1B9E59E39"><enum>(b)</enum><header>Duties</header><text>In carrying out the program under this section, the Secretary shall establish fellowship and faculty assistance programs, as well as provide support for fundamental research and encourage collaborative research among industry, National Laboratories, and universities through the Nuclear Energy Research Initiative. The Secretary is encouraged to support activities addressing the entire fuel cycle through involvement of both the Office of Nuclear Energy, Science, and Technology and the Office of Civilian Radioactive Waste Management. The Secretary shall support communication and outreach related to nuclear science, engineering, and nuclear waste management, consistent with interests of the United States in nonproliferation of nuclear weapons capabilities.</text></subsection> <subsection id="H7B2E0D2BA111484B9172E5C7AF144164"><enum>(c)</enum><header>Strengthening university research and training reactors and associated infrastructure</header><text>Activities under this section may include—</text> <paragraph id="HE558B5DF277246B390CF43A7359DAD00"><enum>(1)</enum><text>converting research and training reactors currently using high-enrichment fuels to low-enrichment fuels, upgrading operational instrumentation, and sharing of reactors among institutions of higher education;</text></paragraph> <paragraph id="H3DF888ECE50E4C5E9806F68E7B3CB17"><enum>(2)</enum><text>providing technical assistance, in collaboration with the United States nuclear industry, in relicensing and upgrading research and training reactors as part of a student training program; and</text></paragraph> <paragraph id="HFCC64473196142FAB5D6E0FD82ED279D"><enum>(3)</enum><text>providing funding, through the Innovations in Nuclear Infrastructure and Education Program, for reactor improvements as part of a focused effort that emphasizes research, training, and education.</text></paragraph></subsection> <subsection id="HBA9712D7B83446C0B941E25BBEACC0E1"><enum>(d)</enum><header>University National Laboratory interactions</header><text>The Secretary shall develop sabbatical fellowship and visiting scientist programs to encourage sharing of personnel between National Laboratories and universities.</text></subsection> <subsection id="H063681F31F8E4F8BA9A9CA00065900D7"><enum>(e)</enum><header>Operating and maintenance costs</header><text>Funding for a research project provided under this section may be used to offset a portion of the operating and maintenance costs of a research and training reactor at an institution of higher education used in the research project.</text></subsection></section> <section id="H027FEA9A8ED9452A002BD2D4723D03E5"><enum>928.</enum><header>Security of reactor designs</header><text display-inline="no-display-inline">The Secretary, through the Director of the Office of Nuclear Energy, Science, and Technology, shall conduct a research and development program on cost-effective technologies for increasing the safety of reactor designs from natural phenomena and the security of reactor designs from deliberate attacks.</text></section> <section id="H612CACE9C72148AEAE7ED2834C2FC0C6"><enum>929.</enum><header>Alternatives to industrial radioactive sources</header> <subsection id="HBE312EF796C64737BA4E79657C916B90"><enum>(a)</enum><header>Study</header><text>The Secretary shall conduct a study and provide a report to Congress not later than August 1, 2004. The study shall—</text> <paragraph id="H28B3F58065844BE69CFA3005639CD294"><enum>(1)</enum><text>survey industrial applications of large radioactive sources, including well-logging sources;</text></paragraph> <paragraph id="H77572EB39AD04630A6FD768035E0CD3C"><enum>(2)</enum><text>review current domestic and international Department, Department of Defense, Department of State, and commercial programs to manage and dispose of radioactive sources;</text></paragraph> <paragraph id="H2712F6973E044A76B6EA97A25972B5B5"><enum>(3)</enum><text>discuss disposal options and practices for currently deployed or future sources and, if deficiencies are noted in existing disposal options or practices for either deployed or future sources, recommend options to remedy deficiencies; and</text></paragraph> <paragraph id="HF59DD9DBCBD4475AAFE193A85F16E58C"><enum>(4)</enum><text>develop a program plan for research and development to develop alternatives to large industrial sources that reduce safety, environmental, or proliferation risks to either workers using the sources or the public.</text></paragraph></subsection> <subsection id="H178E8D569DB749C08CD8ED8FC9D94522"><enum>(b)</enum><header>Program</header><text>The Secretary shall establish a research and development program to implement the program plan developed under subsection (a)(4). The program shall include miniaturized particle accelerators for well-logging or other industrial applications and portable accelerators for production of short-lived radioactive materials at an industrial site.</text></subsection></section> <section id="HDE08FA59E36D466FA78645E7157D198C"><enum>930.</enum><header>Geological isolation of spent fuel</header><text display-inline="no-display-inline">The Secretary shall conduct a study to determine the feasibility of deep borehole disposal of spent nuclear fuel and high-level radioactive waste. The study shall emphasize geological, chemical, and hydrological characterization of, and design of engineered structures for, deep borehole environments. Not later than 1 year after the date of enactment of this Act, the Secretary shall transmit the study to Congress.</text></section></subtitle> <subtitle id="HED27EEFDC21F49CB84883C30A496190"><enum>E</enum><header>Fossil energy</header> <part id="HF9F2D56B8CB7469783B5313E293C38D4"><enum>I</enum><header>Research programs</header> <section id="HFECD935DD8DF44DA8148F279EC2BDFCC"><enum>931.</enum><header>Fossil energy</header> <subsection id="HD658E9A63A1D4080A8CC469135D7B3DA"><enum>(a)</enum><header>In general</header><text>The following sums are authorized to be appropriated to the Secretary for fossil energy research, development, demonstration, and commercial application activities, including activities authorized under this part:</text> <paragraph id="H126F17DAC8AA4538A16B61EAEF9E3DE4"><enum>(1)</enum><text>For fiscal year 2004, $530,000,000.</text></paragraph> <paragraph id="H8D05346F9BDA4EF4A62005F4433028B1"><enum>(2)</enum><text>For fiscal year 2005, $556,000,000.</text></paragraph> <paragraph id="H0F6CCE4C35DF43E1A1F3651F00EFD5E3"><enum>(3)</enum><text>For fiscal year 2006, $583,000,000.</text></paragraph> <paragraph id="HA5AB8F61A1A4459085C6C05752D306EF"><enum>(4)</enum><text>For fiscal year 2007, $611,000,000.</text></paragraph> <paragraph id="H5BC0EAF32DBB4A80B83910740404CD85"><enum>(5)</enum><text>For fiscal year 2008, $626,000,000.</text></paragraph></subsection> <subsection id="H7A53605F7987430192EB3C9B2DEB8700"><enum>(b)</enum><header>Allocations</header><text>From amounts authorized under subsection (a), the following sums are authorized:</text> <paragraph id="H217D65CA20C24A9699667D30F2F91DA8"><enum>(1)</enum><text>For activities under section 932(b)(2), $28,000,000 for each of the fiscal years 2004 through 2008.</text></paragraph> <paragraph id="H1118BD94D7BF4F34A6CF35AFEA95C007"><enum>(2)</enum><text>For activities under section 934—</text> <subparagraph id="HCE0AF4C4ABC244CB87F6A2D0AD12646E"><enum>(A)</enum><text>for fiscal year 2004, $12,000,000;</text></subparagraph> <subparagraph id="H50A55C4A2DE142E0BE6F1FEC190600E0"><enum>(B)</enum><text>for fiscal year 2005, $15,000,000; and</text></subparagraph> <subparagraph id="HB665215A52C34F43A1A192D16D9CEA8F"><enum>(C)</enum><text>for each of fiscal years 2006 through 2008, $20,000,000.</text></subparagraph></paragraph> <paragraph id="H2E9292C837EE46DEAF25F97BC696201E"><enum>(3)</enum><text>For activities under section 935—</text> <subparagraph id="HF55539F493874C499B4B6865B4BB24B8"><enum>(A)</enum><text>for fiscal year 2004, $259,000,000;</text></subparagraph> <subparagraph id="H9AD4D6EA62654027AFF591443EC8085"><enum>(B)</enum><text>for fiscal year 2005, $272,000,000;</text></subparagraph> <subparagraph id="HCFB1AEEA7220426E990081CF27E1285"><enum>(C)</enum><text>for fiscal year 2006, $285,000,000;</text></subparagraph> <subparagraph id="H0CE0727AE58E469C94875360E7EBE1A0"><enum>(D)</enum><text>for fiscal year 2007, $298,000,000; and</text></subparagraph> <subparagraph id="H819EC6E597284E6FBB085F15C0E59230"><enum>(E)</enum><text>for fiscal year 2008, $308,000,000.</text></subparagraph></paragraph> <paragraph id="H10C6B27329E04B15AEDFC2AADB761167"><enum>(4)</enum><text>For the Office of Arctic Energy under section 3197 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (<external-xref legal-doc="usc" parsable-cite="usc/42/7144d">42 U.S.C. 7144d</external-xref>), $25,000,000 for each of fiscal years 2004 through 2008.</text></paragraph> <paragraph id="H6D7D01FB3A004D55B249F56309190276"><enum>(5)</enum><text>For activities under section 933, $4,000,000 for fiscal year 2004 and $2,000,000 for each of fiscal years 2005 through 2008.</text></paragraph></subsection> <subsection id="HCE9D151B34A9426CBAE68123F35E0AA"><enum>(c)</enum><header>Extended authorization</header><text>There are authorized to be appropriated to the Secretary for the Office of Arctic Energy under section 3197 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (<external-xref legal-doc="usc" parsable-cite="usc/42/7144d">42 U.S.C. 7144d</external-xref>), $25,000,000 for each of fiscal years 2009 through 2012.</text></subsection> <subsection id="HC0450F1A8427489BB01350F3D6E5A7D1"><enum>(d)</enum><header>Limits on use of funds</header> <paragraph id="HD626E0E806E3498A00F063D7FE4E24CE"><enum>(1)</enum><header>No funds for certain programs</header><text>None of the funds authorized under this section may be used for Fossil Energy Environmental Restoration or Import/Export Authorization.</text></paragraph> <paragraph id="HBA3C8D7166C34257B218E14F8EA68DEA"><enum>(2)</enum><header>Institutions of higher education</header><text>Of the funds authorized under subsection (b)(2), not less than 20 percent of the funds appropriated for each fiscal year shall be dedicated to research and development carried out at institutions of higher education.</text></paragraph></subsection></section> <section id="HFB5EB1DE7DE7444D80BEA5A6A077E68D"><enum>932.</enum><header>Oil and gas research programs</header> <subsection id="H0FC083E28F654759A113A4CAEB9DA0E6"><enum>(a)</enum><header>Oil and gas research</header><text>The Secretary shall conduct a program of research, development, demonstration, and commercial application on oil and gas, including—</text> <paragraph id="H661AF1ACAE6C44309BB192F42C563BE"><enum>(1)</enum><text>exploration and production;</text></paragraph> <paragraph id="H24EF6165F1AA465D865E45762610E67B"><enum>(2)</enum><text>gas hydrates;</text></paragraph> <paragraph id="HD74062D9953C4477BAE8FFD890CF6107"><enum>(3)</enum><text>reservoir life and extension;</text></paragraph> <paragraph id="H8C607B624F1F48BF9D203FC3A3E75CBF"><enum>(4)</enum><text>transportation and distribution infrastructure;</text></paragraph> <paragraph id="H5F4D5E9D7E0F447792532E41D9C7E4BB"><enum>(5)</enum><text>ultraclean fuels;</text></paragraph> <paragraph id="HAF44E8CA09934AB09C35B449A0AD4EF4"><enum>(6)</enum><text>heavy oil and oil shale;</text></paragraph> <paragraph id="H8015EA09CBC143938564B7343B9F8B46"><enum>(7)</enum><text>related environmental research; and</text></paragraph> <paragraph id="H89ECAB01159B4CA981F8B2AE3685E4BC"><enum>(8)</enum><text>compressed natural gas marine transport.</text></paragraph></subsection> <subsection id="H66E8760F1F074B16B1AA3DF3389FD361"><enum>(b)</enum><header>Fuel cells</header> <paragraph id="HE8D7082E253B4E7B8F13A155E1854015"><enum>(1)</enum><header>In general</header><text>The Secretary shall conduct a program of research, development, demonstration, and commercial application on fuel cells for low-cost, high-efficiency, fuel-flexible, modular power systems.</text></paragraph> <paragraph id="H3CD3BF4D542F403B007F88007F67383D"><enum>(2)</enum><header>Improved manufacturing production and processes</header><text>The demonstrations under paragraph (1) shall include fuel cell technology for commercial, residential, and transportation applications, and distributed generation systems, utilizing improved manufacturing production and processes.</text></paragraph></subsection> <subsection id="H2C981B5AAAA741E18172F54053779237"><enum>(c)</enum><header>Natural gas and oil deposits report</header><text>Not later than 2 years after the date of enactment of this Act, and every 2 years thereafter, the Secretary of the Interior, in consultation with other appropriate Federal agencies, shall transmit a report to Congress of the latest estimates of natural gas and oil reserves, reserves growth, and undiscovered resources in Federal and State waters off the coast of Louisiana and Texas.</text></subsection> <subsection id="H0A2150CF83EE43DC957052B88980000"><enum>(d)</enum><header>Integrated clean power and energy research</header> <paragraph id="H8F96C6AA193944D09046008495DD8F65"><enum>(1)</enum><header>National Center or consortium of excellence</header><text>The Secretary shall establish a national center or consortium of excellence in clean energy and power generation, utilizing the resources of the existing Clean Power and Energy Research Consortium, to address the Nation’s critical dependence on energy and the need to reduce emissions.</text></paragraph> <paragraph id="H328F84A29713441387215D2047F2484D"><enum>(2)</enum><header>Program</header><text>The center or consortium shall conduct a program of research, development, demonstration, and commercial application on integrating the following focus areas:</text> <subparagraph id="HB8C55177546F44DDB4F176B7C4C0E8A1"><enum>(A)</enum><text>Efficiency and reliability of gas turbines for power generation.</text></subparagraph> <subparagraph id="H0C47404F8A4941B09C7B5900E960ED9B"><enum>(B)</enum><text>Reduction in emissions from power generation.</text></subparagraph> <subparagraph id="H1DE7F6345D1647C7A1659CC1F2FA5369"><enum>(C)</enum><text>Promotion of energy conservation issues.</text></subparagraph> <subparagraph id="H6EFDC6F15B5D46DFAD267C62CCE713E9"><enum>(D)</enum><text>Effectively utilizing alternative fuels and renewable energy.</text></subparagraph> <subparagraph id="H3868F40D387D42B3B8C82C621035563"><enum>(E)</enum><text>Development of advanced materials technology for oil and gas exploration and utilization in harsh environments.</text></subparagraph> <subparagraph id="H2DAA9BF2BE7E4993B221C293EA4783C4"><enum>(F)</enum><text>Education on energy and power generation issues.</text></subparagraph></paragraph></subsection></section> <section id="HEDF5DE689BBF4801A1BA006BBA4D41D"><enum>933.</enum><header>Technology transfer</header><text display-inline="no-display-inline">The Secretary shall establish a competitive program to award a contract to a nonprofit entity for the purpose of transferring technologies developed with public funds. The entity selected under this section shall have experience in offshore oil and gas technology research management, in the transfer of technologies developed with public funds to the offshore and maritime industry, and in management of an offshore and maritime industry consortium. The program consortium selected under section 942 shall not be eligible for selection under this section. When appropriate, the Secretary shall consider utilizing the entity selected under this section when implementing the activities authorized by section 975.</text></section> <section id="HB86A87944BC84CCE962EB86679003880"><enum>934.</enum><header>Research and development for coal mining technologies</header> <subsection id="H1E4B2E944F7B42D1BC76ADE84E126947"><enum>(a)</enum><header>Establishment</header><text>The Secretary shall carry out a program of research and development on coal mining technologies. The Secretary shall cooperate with appropriate Federal agencies, coal producers, trade associations, equipment manufacturers, institutions of higher education with mining engineering departments, and other relevant entities.</text></subsection> <subsection id="H53E1741CB7D3489BA3C86CDDA5CB026B"><enum>(b)</enum><header>Program</header><text>The research and development activities carried out under this section shall—</text> <paragraph id="H4118EE2DE42544C580830916284D1F3D"><enum>(1)</enum><text>be guided by the mining research and development priorities identified by the Mining Industry of the Future Program and in the recommendations from relevant reports of the National Academy of Sciences on mining technologies;</text></paragraph> <paragraph id="H4D12A00EF8224A1F89967FD62EF30000"><enum>(2)</enum><text>include activities exploring minimization of contaminants in mined coal that contribute to environmental concerns including development and demonstration of electromagnetic wave imaging ahead of mining operations;</text></paragraph> <paragraph id="H1CE0F35A44B442888EB4CDEF8DBAA89"><enum>(3)</enum><text>develop and demonstrate electromagnetic wave imaging and radar techniques for horizontal drilling in coal beds in order to increase methane recovery efficiency, prevent spoilage of domestic coal reserves, and minimize water disposal associated with methane extraction; and</text></paragraph> <paragraph id="H5DDC48DCE68B4D939C4ED423BABCA3DC"><enum>(4)</enum><text>expand mining research capabilities at institutions of higher education.</text></paragraph></subsection></section> <section id="H1F2986078E274EC6BEBF43A89BD92818"><enum>935.</enum><header>Coal and related technologies Program</header> <subsection id="HD680C52681A3455CA8FE7CCE8FE8F616"><enum>(a)</enum><header>In general</header><text>In addition to the programs authorized under title IV, the Secretary shall conduct a program of technology research, development, demonstration, and commercial application for coal and power systems, including programs to facilitate production and generation of coal-based power through—</text> <paragraph id="H3792127CE96748D681BCB8BDB73E5B5B"><enum>(1)</enum><text>innovations for existing plants;</text></paragraph> <paragraph id="H87EFFD73B17E4D63B6E51FAFBDBCAF59"><enum>(2)</enum><text>integrated gasification combined cycle;</text></paragraph> <paragraph id="HBF7ACE1CBCF3421F8561E03E00D2892"><enum>(3)</enum><text>advanced combustion systems;</text></paragraph> <paragraph id="HA4F2D1AD55ED4F4A893853E300676B50"><enum>(4)</enum><text>turbines for synthesis gas derived from coal;</text></paragraph> <paragraph id="H4CCB435F90E048C0ACF3526C86E38467"><enum>(5)</enum><text>carbon capture and sequestration research and development;</text></paragraph> <paragraph id="H71587F13651F47EAB2558DAA38E5DFE7"><enum>(6)</enum><text>coal-derived transportation fuels and chemicals;</text></paragraph> <paragraph id="H7C2968E12433432A8F33FCD72A4E96"><enum>(7)</enum><text>solid fuels and feedstocks;</text></paragraph> <paragraph id="H8A840805DEE748968560EBBEE2CE32C"><enum>(8)</enum><text>advanced coal-related research;</text></paragraph> <paragraph id="H06DCFA0E5D1A4E6D95DD853D03FDF276"><enum>(9)</enum><text>advanced separation technologies; and</text></paragraph> <paragraph id="HDC2CA27A9F0F4A96B17CD8968BD1B6F"><enum>(10)</enum><text>a joint project for permeability enhancement in coals for natural gas production and carbon dioxide sequestration.</text></paragraph></subsection> <subsection id="H9188FA3470694F5EB397DEA5871D7790"><enum>(b)</enum><header>Cost and performance goals</header><text>In carrying out programs authorized by this section, the Secretary shall identify cost and performance goals for coal-based technologies that would permit the continued cost-competitive use of coal for electricity generation, as chemical feedstocks, and as transportation fuel in 2007, 2015, and the years after 2020. In establishing such cost and performance goals, the Secretary shall—</text> <paragraph id="HD215485BC8BD40F79C728400122F00B2"><enum>(1)</enum><text>consider activities and studies undertaken to date by industry in cooperation with the Department in support of such assessment;</text></paragraph> <paragraph id="H34539F6ED05F42D2916765C93BD4F35"><enum>(2)</enum><text>consult with interested entities, including coal producers, industries using coal, organizations to promote coal and advanced coal technologies, environmental organizations, and organizations representing workers;</text></paragraph> <paragraph id="H196202E81AC643AAA3EA84009B153DA2"><enum>(3)</enum><text>not later than 120 days after the date of enactment of this Act, publish in the Federal Register proposed draft cost and performance goals for public comments; and</text></paragraph> <paragraph id="H48A449F5023540208C95CD1908B9F3A9"><enum>(4)</enum><text>not later than 180 days after the date of enactment of this Act and every 4 years thereafter, submit to Congress a report describing final cost and performance goals for such technologies that includes a list of technical milestones as well as an explanation of how programs authorized in this section will not duplicate the activities authorized under the Clean Coal Power Initiative authorized under subtitle A of title IV.</text></paragraph></subsection></section> <section id="HE3BE5E69AB5E4551B64F7F5CA8BDBAA"><enum>936.</enum><header>Complex Well Technology Testing Facility</header><text display-inline="no-display-inline">The Secretary, in coordination with industry leaders in extended research drilling technology, shall establish a Complex Well Technology Testing Facility at the Rocky Mountain Oilfield Testing Center to increase the range of extended drilling technologies.</text></section> <section id="H06368B89DC1D47C48B77E537D8007533"><enum>937.</enum><header>Fischer-Tropsch diesel fuel loan guarantee Program</header> <subsection id="H196B7CFC7D1445B88519007C375032F4"><enum>(a)</enum><header>Definition of Fischer-Tropsch diesel fuel</header><text>In this section, the term <term>Fischer-Tropsch diesel fuel</term> means diesel fuel that—</text> <paragraph id="HE4F8CFF3C7FF43A5A89F232143BDDF22"><enum>(1)</enum><text>contains less than 10 parts per million sulfur; and</text></paragraph> <paragraph id="H51CB3B7E734548C197BB0060692F0899"><enum>(2)</enum><text>is produced through the Fischer-Tropsch liquification process from coal or waste from coal that was mined in the United States.</text></paragraph></subsection> <subsection id="H6707EA8B07CB4F19925E9B87A9C866A1"><enum>(b)</enum><header>Loan guarantees</header> <paragraph id="H2F95A0786B8E41F800A948356F38848E"><enum>(1)</enum><header>Establishment of Program</header><text>The Secretary of Energy shall establish a program to provide guarantees of loans by private lending institutions for the construction of facilities for the production of Fischer-Tropsch diesel fuel and commercial byproducts of that production.</text></paragraph> <paragraph id="H9D6AE111DB064A9CB3BFE0BC13E02381"><enum>(2)</enum><header>Requirements</header><text>The Secretary may provide a loan guarantee under paragraph (1) if—</text> <subparagraph id="HE3C720BDF70E497688A7031035DCD978"><enum>(A)</enum><text>without a loan guarantee, credit is not available to the applicant under reasonable terms or conditions sufficient to finance the construction of a facility described in paragraph (1);</text></subparagraph> <subparagraph id="H517D7031494F468480BF68F43EC9F5E9"><enum>(B)</enum><text>the prospective earning power of the applicant and the character and value of the security pledged provide a reasonable assurance of repayment of the loan to be guaranteed in accordance with the terms of the loan; and</text></subparagraph> <subparagraph id="H36844AFD937645D4A324ACFA841A079"><enum>(C)</enum><text>the loan bears interest at a rate determined by the Secretary to be reasonable, taking into account the current average yield on outstanding obligations of the United States with remaining periods of maturity comparable to the maturity of the loan.</text></subparagraph></paragraph> <paragraph id="H7C0C28CE169D448B8CACADD6BD96297"><enum>(3)</enum><header>Criteria</header><text>In selecting recipients of loan guarantees from among applicants, the Secretary shall give preference to proposals that—</text> <subparagraph id="HF9F4E01906614CCBAD14A9C9CE06D1D4"><enum>(A)</enum><text>meet all Federal and State permitting requirements;</text></subparagraph> <subparagraph id="H7BA0D4434C834879A0B02EE316F59920"><enum>(B)</enum><text>are most likely to be successful; and</text></subparagraph> <subparagraph id="H0DFE3AE970FB4615BEBFA734C3149E39"><enum>(C)</enum><text>are located in local markets that have the greatest need for the facility because of—</text> <clause id="H6C944BB82CD4430E8D778449D3F3E38F"><enum>(i)</enum><text>the availability of domestic coal or coal waste for conversion; or</text></clause> <clause id="HAFA6E1CFCB424A398CB2AF9135E0AF24"><enum>(ii)</enum><text>a projected high level of demand for Fischer-Tropsch diesel fuel or other commercial byproducts of the facility.</text></clause></subparagraph></paragraph> <paragraph id="H65678BDA35C74A0ABA8CA99002962800"><enum>(4)</enum><header>Maturity</header><text>A loan guaranteed under paragraph (1) shall have a maturity of not more than 25 years.</text></paragraph> <paragraph id="H0B43709C28F64F09865C082000310067"><enum>(5)</enum><header>Terms and conditions</header><text>The loan agreement for a loan guaranteed under paragraph (1) shall provide that no provision of the loan may be amended or waived without the consent of the Secretary.</text></paragraph> <paragraph id="HACA0E42DB4BE49CC973DA03C00AED697"><enum>(6)</enum><header>Guarantee fee</header><text>A recipient of a loan guarantee under paragraph (1) shall pay the Secretary an amount to be determined by the Secretary to be sufficient to cover the administrative costs of the Secretary relating to the loan guarantee.</text></paragraph> <paragraph id="H9504DB194A0F4484BE00DA8904965400"><enum>(7)</enum><header>Full faith and credit</header> <subparagraph id="HC5FABCDBAD7842CB89452594E865C00"><enum>(A)</enum><header>In general</header><text>The full faith and credit of the United States is pledged to payment of loan guarantees made under this section.</text></subparagraph> <subparagraph id="H5851EC9B4BBB43CC9061EA073F77075F"><enum>(B)</enum><header>Conclusive evidence</header><text>Any loan guarantee made by the Secretary under this section shall be conclusive evidence of the eligibility of the loan for the guarantee with respect to principal and interest.</text></subparagraph> <subparagraph id="H3369230A11F842D686FAE41D900C673"><enum>(C)</enum><header>Validity</header><text>The validity of a loan guarantee shall be incontestable in the hands of a holder of the guaranteed loan.</text></subparagraph></paragraph> <paragraph id="HC2B8A544511447F8A63B8D7D38CED9B0"><enum>(8)</enum><header>Reports</header><text>Until each guaranteed loan under this section is repaid in full, the Secretary shall annually submit to Congress a report on the activities of the Secretary under this section.</text></paragraph> <paragraph id="H6BB56349035949DF9545865DDAF66D"><enum>(9)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated such sums as are necessary to carry out this section.</text></paragraph> <paragraph id="HB6CB4A7542B34EE8BCD76F048D0014CE"><enum>(10)</enum><header>Termination of authority</header><text>The authority of the Secretary to issue a new loan guarantee under paragraph (1) terminates on the date that is 5 years after the date of enactment of this Act.</text></paragraph></subsection></section></part> <part id="H3EAFB609E0D3444C00C975E62790D8DA"><enum>II</enum><header>Ultra-deepwater and unconventional natural gas and other petroleum resources</header> <section id="H0118D144CEC448B8AEB89648E54875A6"><enum>941.</enum><header>Program authority</header> <subsection id="HEE055F7073AD4F9D888CAAF97C77D020"><enum>(a)</enum><header>In general</header><text>The Secretary shall carry out a program under this part of research, development, demonstration, and commercial application of technologies for ultra-deepwater and unconventional natural gas and other petroleum resource exploration and production, including addressing the technology challenges for small producers, safe operations, and environmental mitigation (including reduction of greenhouse gas emissions and sequestration of carbon).</text></subsection> <subsection id="HABF26879196E486E9500761328F9CBBE"><enum>(b)</enum><header>Program elements</header><text>The program under this part shall address the following areas, including improving safety and minimizing environmental impacts of activities within each area:</text> <paragraph id="HFC5DD3340322477DA3545071EAE88D89"><enum>(1)</enum><text>Ultra-deepwater technology, including drilling to formations in the Outer Continental Shelf to depths greater than 15,000 feet.</text></paragraph> <paragraph id="H1A975C083AAA4674B7224E83E2959AB"><enum>(2)</enum><text>Ultra-deepwater architecture.</text></paragraph> <paragraph id="HA7A0E36ED20740FCA1A81B167BCA0608"><enum>(3)</enum><text>Unconventional natural gas and other petroleum resource exploration and production technology, including the technology challenges of small producers.</text></paragraph></subsection> <subsection id="HBB798F852EEB453100DA48AD1CAD3BA7"><enum>(c)</enum><header>Limitation on location of field activities</header><text>Field activities under the program under this part shall be carried out only—</text> <paragraph id="H564CD20A5B6D4198B896EDB79371F726"><enum>(1)</enum><text>in—</text> <subparagraph id="H008CB12E8F064C528B56C2E0B132A641"><enum>(A)</enum><text>areas in the territorial waters of the United States not under any Outer Continental Shelf moratorium as of September 30, 2002;</text></subparagraph> <subparagraph id="H1971FFC4D4A842CD8F7B6EEF2644021B"><enum>(B)</enum><text>areas onshore in the United States on public land administered by the Secretary of the Interior available for oil and gas leasing, where consistent with applicable law and land use plans; and</text></subparagraph> <subparagraph id="H1C05312D1E8742A0B850C743CC3DEFF2"><enum>(C)</enum><text>areas onshore in the United States on State or private land, subject to applicable law; and</text></subparagraph></paragraph> <paragraph id="HA3867B548315480B97A163FE6B4008B"><enum>(2)</enum><text>with the approval of the appropriate Federal or State land management agency or private land owner.</text></paragraph></subsection> <subsection id="H0F4B5CD5E1B541F39E3BD891206B49D3"><enum>(d)</enum><header>Research at National Energy Technology Laboratory</header><text>The Secretary, through the National Energy Technology Laboratory, shall carry out research complementary to research under subsection (b).</text></subsection> <subsection id="H447C8EA31CD843F8AC5FE6568CB8C4F4"><enum>(e)</enum><header>Consultation with Secretary of the Interior</header><text>In carrying out this part, the Secretary shall consult regularly with the Secretary of the Interior.</text></subsection></section> <section id="H7B7881AFFCFE47E4A8AA223CD81461B3"><enum>942.</enum><header>Ultra-deepwater Program</header> <subsection id="H61D4B2AAD54C4D4F85C0B46146892243"><enum>(a)</enum><header>In general</header><text>The Secretary shall carry out the activities under section 941(a), to maximize the use of the ultra-deepwater natural gas and other petroleum resources of the United States by increasing the supply of such resources, through reducing the cost and increasing the efficiency of exploration for and production of such resources, while improving safety and minimizing environmental impacts.</text></subsection> <subsection id="HC18931ABD5AC4F7687B3BF37D4F6153E"><enum>(b)</enum><header>Role of the Secretary</header><text>The Secretary shall have ultimate responsibility for, and oversight of, all aspects of the program under this section.</text></subsection> <subsection id="H2D7E98B8F7CC45319E25C032D4D68B41"><enum>(c)</enum><header>Role of the Program consortium</header> <paragraph id="H4635A4ADF11341499C0277A7EC616F18"><enum>(1)</enum><header>In general</header><text>The Secretary may contract with a consortium to—</text> <subparagraph id="H2FDB3B5391B14EA8A13178C33F6CFAC"><enum>(A)</enum><text>manage awards pursuant to subsection (f)(4);</text></subparagraph> <subparagraph id="HAB3D06491E204C2F96CE5115124D576B"><enum>(B)</enum><text>make recommendations to the Secretary for project solicitations;</text></subparagraph> <subparagraph id="H16C0F1B61C7340739DA990AD1E801071"><enum>(C)</enum><text>disburse funds awarded under subsection (f) as directed by the Secretary in accordance with the annual plan under subsection (e); and</text></subparagraph> <subparagraph id="HBC9ECB8643FF4A20BC5FA774CCE7A9C9"><enum>(D)</enum><text>carry out other activities assigned to the program consortium by this section.</text></subparagraph></paragraph> <paragraph id="H8AF190441324446CB1D7DC7FCFC701"><enum>(2)</enum><header>Limitation</header><text>The Secretary may not assign any activities to the program consortium except as specifically authorized under this section.</text></paragraph> <paragraph id="HA8EC71392F6941E0B7CEAD0063000326"><enum>(3)</enum><header>Conflict of interest</header> <subparagraph id="H7F7BDBC6148F48DFA63FC7D54CE30056"><enum>(A)</enum><header>Procedures</header><text>The Secretary shall establish procedures—</text> <clause id="H32E190F95AC54F82AC05A8C11EBC1919"><enum>(i)</enum><text>to ensure that each board member, officer, or employee of the program consortium who is in a decision-making capacity under subsection (f)(3) or (4) shall disclose to the Secretary any financial interests in, or financial relationships with, applicants for or recipients of awards under this section, including those of his or her spouse or minor child, unless such relationships or interests would be considered to be remote or inconsequential; and</text></clause> <clause id="HCDF9746A608A47F9A7B0000A4BE5E63"><enum>(ii)</enum><text>to require any board member, officer, or employee with a financial relationship or interest disclosed under clause (i) to recuse himself or herself from any review under subsection (f)(3) or oversight under subsection (f)(4) with respect to such applicant or recipient.</text></clause></subparagraph> <subparagraph id="H5D6697D19BE040D68FE1F84ECB494C62"><enum>(B)</enum><header>Failure to comply</header><text>The Secretary may disqualify an application or revoke an award under this section if a board member, officer, or employee has failed to comply with procedures required under subparagraph (A)(ii).</text></subparagraph></paragraph></subsection> <subsection id="HE01AED05BFDA431B8DE71531846F162"><enum>(d)</enum><header>Selection of the Program consortium</header> <paragraph id="HC464A1B70A72418FA9D5A8A467EB9080"><enum>(1)</enum><header>In general</header><text>The Secretary shall select the program consortium through an open, competitive process.</text></paragraph> <paragraph id="H4C9F6A375D27493198F1F947B9701D24"><enum>(2)</enum><header>Members</header><text>The program consortium may include corporations, trade associations, institutions of higher education, National Laboratories, or other research institutions. After submitting a proposal under paragraph (4), the program consortium may not add members without the consent of the Secretary.</text></paragraph> <paragraph id="H9544A4F2A4474972A73DB23FF1ADA3CB"><enum>(3)</enum><header>Tax status</header><text>The program consortium shall be an entity that is exempt from tax under <external-xref legal-doc="usc" parsable-cite="usc/26/501">section 501(c)(3)</external-xref> of the Internal Revenue Code of 1986.</text></paragraph> <paragraph id="H444B8D46E70348ED855BBD5FC066D95B"><enum>(4)</enum><header>Schedule</header><text>Not later than 180 days after the date of enactment of this Act, the Secretary shall solicit proposals from eligible consortia to perform the duties in subsection (c)(1), which shall be submitted not later than 360 days after the date of enactment of this Act. The Secretary shall select the program consortium not later than 18 months after such date of enactment.</text></paragraph> <paragraph id="HD56DA0F2286341C19819C0478F82B599"><enum>(5)</enum><header>Application</header><text>Applicants shall submit a proposal including such information as the Secretary may require. At a minimum, each proposal shall—</text> <subparagraph id="HB3340CED0EDB4C9700A3DD4002D61B92"><enum>(A)</enum><text>list all members of the consortium;</text></subparagraph> <subparagraph id="HBDE65A55AEB54D1797445768094404D1"><enum>(B)</enum><text>fully describe the structure of the consortium, including any provisions relating to intellectual property; and</text></subparagraph> <subparagraph id="HB1AEFDE34CA84C638BD0DDC403DFD577"><enum>(C)</enum><text>describe how the applicant would carry out the activities of the program consortium under this section.</text></subparagraph></paragraph> <paragraph id="H904B9B88447A4FFCA1D7ADF01DE7C9B7"><enum>(6)</enum><header>Eligibility</header><text>To be eligible to be selected as the program consortium, an applicant must be an entity whose members collectively have demonstrated capabilities in planning and managing research, development, demonstration, and commercial application programs in natural gas or other petroleum exploration or production.</text></paragraph> <paragraph id="H16069B82E74648449C8775F36FB5A765"><enum>(7)</enum><header>Criterion</header><text>The Secretary shall consider the amount of the fee an applicant proposes to receive under subsection (g) in selecting a consortium under this section.</text></paragraph></subsection> <subsection id="H6C90032A1BF341089C57212D3FADB77B"><enum>(e)</enum><header>Annual plan</header> <paragraph id="HCBF7E33A0C4742FD99E239F86E41CA29"><enum>(1)</enum><header>In general</header><text>The program under this section shall be carried out pursuant to an annual plan prepared by the Secretary in accordance with paragraph (2).</text></paragraph> <paragraph id="HDFCF08024B8945B4AA877D2D4DC11B82"><enum>(2)</enum><header>Development</header> <subparagraph id="H123187F98C9E4A2192E79865DB79195D"><enum>(A)</enum><header>Solicitation of recommendations</header><text>Before drafting an annual plan under this subsection, the Secretary shall solicit specific written recommendations from the program consortium for each element to be addressed in the plan, including those described in paragraph (4). The Secretary may request that the program consortium submit its recommendations in the form of a draft annual plan.</text></subparagraph> <subparagraph id="H5B509A5E5ABC4C3CA400D0D82BDD9902"><enum>(B)</enum><header>Submission of recommendations; other comment</header><text>The Secretary shall submit the recommendations of the program consortium under subparagraph (A) to the Ultra-Deepwater Advisory Committee established under section 945(a) for review, and such Advisory Committee shall provide to the Secretary written comments by a date determined by the Secretary. The Secretary may also solicit comments from any other experts.</text></subparagraph> <subparagraph id="H73027C723C894AEEAFD5CEF10987CCD4"><enum>(C)</enum><header>Consultation</header><text>The Secretary shall consult regularly with the program consortium throughout the preparation of the annual plan.</text></subparagraph></paragraph> <paragraph id="H1F78B3F7AF12486E8810C68238A200BF"><enum>(3)</enum><header>Publication</header><text>The Secretary shall transmit to Congress and publish in the Federal Register the annual plan, along with any written comments received under paragraph (2)(A) and (B).</text></paragraph> <paragraph id="H6DD5CFE93E904C75AF83F09CB9AD0709"><enum>(4)</enum><header>Contents</header><text>The annual plan shall describe the ongoing and prospective activities of the program under this section and shall include—</text> <subparagraph id="H7C15670AADA74376A2DF622633645EE7"><enum>(A)</enum><text>a list of any solicitations for awards that the Secretary plans to issue to carry out research, development, demonstration, or commercial application activities, including the topics for such work, who would be eligible to apply, selection criteria, and the duration of awards; and</text></subparagraph> <subparagraph id="H5D623A39040B4B90A2AF61009E89E079"><enum>(B)</enum><text>a description of the activities expected of the program consortium to carry out subsection (f)(4).</text></subparagraph></paragraph> <paragraph id="H119A6C5DD89D47FD8C6ED3BD58E152E4"><enum>(5)</enum><header>Estimates of increased royalty receipts</header><text>The Secretary, in consultation with the Secretary of the Interior, shall provide an annual report to Congress with the President’s budget on the estimated cumulative increase in Federal royalty receipts (if any) resulting from the implementation of this part. The initial report under this paragraph shall be submitted in the first President’s budget following the completion of the first annual plan required under this subsection.</text></paragraph></subsection> <subsection id="H365405A0293447FF0085F6978D86A061"><enum>(f)</enum><header>Awards</header> <paragraph id="H1ECF43DC2FC0469885C7A5ADD26E4294"><enum>(1)</enum><header>In general</header><text>The Secretary shall make awards to carry out research, development, demonstration, and commercial application activities under the program under this section. The program consortium shall not be eligible to receive such awards, but members of the program consortium may receive such awards.</text></paragraph> <paragraph id="H6748CC2D512F4F3181640011FAFEE48"><enum>(2)</enum><header>Proposals</header><text>The Secretary shall solicit proposals for awards under this subsection in such manner and at such time as the Secretary may prescribe, in consultation with the program consortium.</text></paragraph> <paragraph id="H1EBF882556CF45ACB3714C7BD74EAB75"><enum>(3)</enum><header>Review</header><text>The Secretary shall make awards under this subsection through a competitive process, which shall include a review by individuals selected by the Secretary. Such individuals shall include, for each application, Federal officials, the program consortium, and non-Federal experts who are not board members, officers, or employees of the program consortium or of a member of the program consortium.</text></paragraph> <paragraph id="HC1183FA9E4734C6180879143DF734FF5"><enum>(4)</enum><header>Oversight</header> <subparagraph id="HE6BAAD63002247AC9D0038FE71A3105C"><enum>(A)</enum><header>In general</header><text>The program consortium shall oversee the implementation of awards under this subsection, consistent with the annual plan under subsection (e), including disbursing funds and monitoring activities carried out under such awards for compliance with the terms and conditions of the awards.</text></subparagraph> <subparagraph id="H0BE98B54F3894CEA92B251A69BE086BA"><enum>(B)</enum><header>Effect</header><text>Nothing in subparagraph (A) shall limit the authority or responsibility of the Secretary to oversee awards, or limit the authority of the Secretary to review or revoke awards.</text></subparagraph> <subparagraph id="H7B4898D0F3334FBC92B05803437144EB"><enum>(C)</enum><header>Provision of information</header><text>The Secretary shall provide to the program consortium the information necessary for the program consortium to carry out its responsibilities under this paragraph.</text></subparagraph></paragraph></subsection> <subsection id="HBDBEA6C95C474C66AD11FB6954B2BB53"><enum>(g)</enum><header>Administrative costs</header> <paragraph id="HAC10D6DBB4114E309E54EC00D7F7A758"><enum>(1)</enum><header>In general</header><text>To compensate the program consortium for carrying out its activities under this section, the Secretary shall provide to the program consortium funds sufficient to administer the program. This compensation may include a management fee consistent with Department of Energy contracting practices and procedures.</text></paragraph> <paragraph id="H0BE3B264E3994661B22FD7D521A80030"><enum>(2)</enum><header>Advance</header><text>The Secretary shall advance funds to the program consortium upon selection of the consortium, which shall be deducted from amounts to be provided under paragraph (1).</text></paragraph></subsection> <subsection id="HB5C18391D06D49F9A3484C298BB76015"><enum>(h)</enum><header>Audit</header><text>The Secretary shall retain an independent, commercial auditor to determine the extent to which funds provided to the program consortium, and funds provided under awards made under subsection (f), have been expended in a manner consistent with the purposes and requirements of this part. The auditor shall transmit a report annually to the Secretary, who shall transmit the report to Congress, along with a plan to remedy any deficiencies cited in the report.</text></subsection></section> <section id="HABF32B4F0C234BF8A700815F830092E3"><enum>943.</enum><header>Unconventional natural gas and other petroleum resources Program</header> <subsection id="H55F249C42E5A4EEEB3F096C24EC6FCB8"><enum>(a)</enum><header>In general</header><text>The Secretary shall carry out activities under subsection 941(b)(3), to maximize the use of the onshore unconventional natural gas and other petroleum resources of the United States, by increasing the supply of such resources, through reducing the cost and increasing the efficiency of exploration for and production of such resources, while improving safety and minimizing environmental impacts.</text></subsection> <subsection id="HB44509AE280A4D2C002E1F8C9190ED2E"><enum>(b)</enum><header>Awards</header> <paragraph id="H886C33AE5A9D47219BE83C50206DD5E5"><enum>(1)</enum><header>In general</header><text>The Secretary shall carry out this section through awards to research consortia made through an open, competitive process. As a condition of award of funds, qualified research consortia shall—</text> <subparagraph id="H823723479118490194ADFE960011F5F1"><enum>(A)</enum><text>demonstrate capability and experience in unconventional onshore natural gas or other petroleum research and development;</text></subparagraph> <subparagraph id="H656073FE064442FF8700296F91F9D7C"><enum>(B)</enum><text>provide a research plan that demonstrates how additional natural gas or oil production will be achieved; and</text></subparagraph> <subparagraph id="H0A4481370E9340EA00B0C8B4259692D0"><enum>(C)</enum><text>at the request of the Secretary, provide technical advice to the Secretary for the purposes of developing the annual plan required under subsection (e).</text></subparagraph></paragraph> <paragraph id="H3482DAD64824468BB20000ED7C2698B3"><enum>(2)</enum><header>Production potential</header><text>The Secretary shall seek to ensure that the number and types of awards made under this subsection have reasonable potential to lead to additional oil and natural gas production on Federal lands.</text></paragraph> <paragraph id="H58E276B43FEC4C019FA2CC960094B62B"><enum>(3)</enum><header>Schedule</header><text>To carry out this subsection, not later than 180 days after the date of enactment of this Act, the Secretary shall solicit proposals from research consortia, which shall be submitted not later than 360 days after the date of enactment of this Act. The Secretary shall select the first group of research consortia to receive awards under this subsection not later than 18 months after such date of enactment.</text></paragraph></subsection> <subsection id="H0157067BBFBB429891C61538E305DB11"><enum>(c)</enum><header>Audit</header><text>The Secretary shall retain an independent, commercial auditor to determine the extent to which funds provided under awards made under this section have been expended in a manner consistent with the purposes and requirements of this part. The auditor shall transmit a report annually to the Secretary, who shall transmit the report to Congress, along with a plan to remedy any deficiencies cited in the report.</text></subsection> <subsection id="HBCE79FA315E14266BF00A1F319DC03A8"><enum>(d)</enum><header>Focus areas for awards</header> <paragraph id="H596E67E0CC6B46EDA92F14E760089075"><enum>(1)</enum><header>Unconventional resources</header><text>Awards from allocations under section 949(d)(2) shall focus on areas including advanced coalbed methane, deep drilling, natural gas production from tight sands, natural gas production from gas shales, stranded gas, innovative exploration and production techniques, enhanced recovery techniques, and environmental mitigation of unconventional natural gas and other petroleum resources exploration and production.</text></paragraph> <paragraph id="HA7A189DCE8DA424B886E31F303E3ACF"><enum>(2)</enum><header>Small producers</header><text>Awards from allocations under section 949(d)(3) shall be made to consortia consisting of small producers or organized primarily for the benefit of small producers, and shall focus on areas including complex geology involving rapid changes in the type and quality of the oil and gas reservoirs across the reservoir; low reservoir pressure; unconventional natural gas reservoirs in coalbeds, deep reservoirs, tight sands, or shales; and unconventional oil reservoirs in tar sands and oil shales.</text></paragraph></subsection> <subsection id="HAE2A44A59E164B08B8BEE514D0D138B6"><enum>(e)</enum><header>Annual plan</header> <paragraph id="H2F1B0B78B5D645F1B1135CED6EBCCF2C"><enum>(1)</enum><header>In general</header><text>The program under this section shall be carried out pursuant to an annual plan prepared by the Secretary in accordance with paragraph (2).</text></paragraph> <paragraph id="H30FCDE64870C42A38E8DE96126EF3EAB"><enum>(2)</enum><header>Development</header> <subparagraph id="HFF5326E8E47840A49F975B36D5EBC664"><enum>(A)</enum><header>Written recommendations</header><text>Before drafting an annual plan under this subsection, the Secretary shall solicit specific written recommendations from the research consortia receiving awards under subsection (b) and the Unconventional Resources Technology Advisory Committee for each element to be addressed in the plan, including those described in subparagraph (D).</text></subparagraph> <subparagraph id="H65BB07E5C06944BBBBB51BCEDFBFACC"><enum>(B)</enum><header>Consultation</header><text>The Secretary shall consult regularly with the research consortia throughout the preparation of the annual plan.</text></subparagraph> <subparagraph id="HFC9449DF7E3F4127BE4F775D3625CD5D"><enum>(C)</enum><header>Publication</header><text>The Secretary shall transmit to Congress and publish in the Federal Register the annual plan, along with any written comments received under subparagraph (A).</text></subparagraph> <subparagraph id="H0F7AE015E27942039717E8AA642E1E"><enum>(D)</enum><header>Contents</header><text>The annual plan shall describe the ongoing and prospective activities under this section and shall include a list of any solicitations for awards that the Secretary plans to issue to carry out research, development, demonstration, or commercial application activities, including the topics for such work, who would be eligible to apply, selection criteria, and the duration of awards.</text></subparagraph></paragraph> <paragraph id="H36A466540DBA4258BE18C2FC98659C71"><enum>(3)</enum><header>Estimates of increased royalty receipts</header><text>The Secretary, in consultation with the Secretary of the Interior, shall provide an annual report to Congress with the President’s budget on the estimated cumulative increase in Federal royalty receipts (if any) resulting from the implementation of this part. The initial report under this paragraph shall be submitted in the first President’s budget following the completion of the first annual plan required under this subsection.</text></paragraph></subsection> <subsection id="HE7AE106897974E54AEF89AD89E7BE09"><enum>(f)</enum><header>Activities by the United States Geological Survey</header><text>The Secretary of the Interior, through the United States Geological Survey, shall, where appropriate, carry out programs of long-term research to complement the programs under this section.</text></subsection></section> <section id="H7D24F5DFEFC84EC0983469FEC4F3293C"><enum>944.</enum><header>Additional requirements for awards</header> <subsection id="H06B773AB951A4BED80F7D75B94950257"><enum>(a)</enum><header>Demonstration projects</header><text>An application for an award under this part for a demonstration project shall describe with specificity the intended commercial use of the technology to be demonstrated.</text></subsection> <subsection id="H100AE7118A3A4635AD66E18E425FAF55"><enum>(b)</enum><header>Flexibility in locating demonstration projects</header><text>Subject to the limitation in section 941(c), a demonstration project under this part relating to an ultra-deepwater technology or an ultra-deepwater architecture may be conducted in deepwater depths.</text></subsection> <subsection id="H47508EB899E644E48C3FA9FB7734FC60"><enum>(c)</enum><header>Intellectual property agreements</header><text>If an award under this part is made to a consortium (other than the program consortium), the consortium shall provide to the Secretary a signed contract agreed to by all members of the consortium describing the rights of each member to intellectual property used or developed under the award.</text></subsection> <subsection id="H615FFDDE2E5D4EFC9CD6AFE3BF4297B2"><enum>(d)</enum><header>Technology transfer</header><text>2.5 percent of the amount of each award made under this part shall be designated for technology transfer and outreach activities under this title.</text></subsection> <subsection id="HE093F181D84D431FAA82B25BB1E79CB5"><enum>(e)</enum><header>Cost sharing reduction for independent producers</header><text>In applying the cost sharing requirements under section 972 to an award under this part the Secretary may reduce or eliminate the non-Federal requirement if the Secretary determines that the reduction is necessary and appropriate considering the technological risks involved in the project.</text></subsection></section> <section id="H7BB25029AAA5463283998987B250A284"><enum>945.</enum><header>Advisory committees</header> <subsection id="H3F2BB37592BE4A9AB68F480009C43B45"><enum>(a)</enum><header>Ultra-Deepwater Advisory Committee</header> <paragraph id="H2AE4E232F00C46FBB0BE1B381F5D7675"><enum>(1)</enum><header>Establishment</header><text>Not later than 270 days after the date of enactment of this Act, the Secretary shall establish an advisory committee to be known as the Ultra-Deepwater Advisory Committee.</text></paragraph> <paragraph id="H949C19547BCA4C6E83F925023E249E94"><enum>(2)</enum><header>Membership</header><text>The advisory committee under this subsection shall be composed of members appointed by the Secretary including—</text> <subparagraph id="H1F41A60545F4486AA7F7D2E309DDCD02"><enum>(A)</enum><text>individuals with extensive research experience or operational knowledge of offshore natural gas and other petroleum exploration and production;</text></subparagraph> <subparagraph id="H771B3F04390345A083BB60322F2B155E"><enum>(B)</enum><text>individuals broadly representative of the affected interests in ultra-deepwater natural gas and other petroleum production, including interests in environmental protection and safe operations;</text></subparagraph> <subparagraph id="H30D34CFF3DC7444394AEE4D630BE3FD"><enum>(C)</enum><text>no individuals who are Federal employees; and</text></subparagraph> <subparagraph id="HDFCC28A4C7494DB7BEF14613838BEE50"><enum>(D)</enum><text>no individuals who are board members, officers, or employees of the program consortium.</text></subparagraph></paragraph> <paragraph id="H4FC4CF9B3D8B440389E7CE3C6FACB874"><enum>(3)</enum><header>Duties</header><text>The advisory committee under this subsection shall—</text> <subparagraph id="H492EE5A36A3D4CB080685DEF4B78DC10"><enum>(A)</enum><text>advise the Secretary on the development and implementation of programs under this part related to ultra-deepwater natural gas and other petroleum resources; and</text></subparagraph> <subparagraph id="HE1B1C4D8F16049C2B0C07B0063B6AD4D"><enum>(B)</enum><text>carry out section 942(e)(2)(B).</text></subparagraph></paragraph> <paragraph id="H20DDFD1FE22A4497912C5E86238D4D85"><enum>(4)</enum><header>Compensation</header><text>A member of the advisory committee under this subsection shall serve without compensation but shall receive travel expenses in accordance with applicable provisions under subchapter I of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/57">chapter 57</external-xref> of title 5, United States Code.</text></paragraph></subsection> <subsection id="HD89936D779A3499F83F4141FF973B3A1"><enum>(b)</enum><header>Unconventional Resources Technology Advisory Committee</header> <paragraph id="H70618C2CDCD84BFDBCDC6BFC8E9CCB4E"><enum>(1)</enum><header>Establishment</header><text>Not later than 270 days after the date of enactment of this Act, the Secretary shall establish an advisory committee to be known as the Unconventional Resources Technology Advisory Committee.</text></paragraph> <paragraph id="H15294A9D0E344FA5A5D7BB2D51E8C97F"><enum>(2)</enum><header>Membership</header><text>The advisory committee under this subsection shall be composed of members appointed by the Secretary including—</text> <subparagraph id="H78E9F9AFAD1D40FFA8591C54EDC4AFFA"><enum>(A)</enum><text>a majority of members who are employees or representatives of independent producers of natural gas and other petroleum, including small producers;</text></subparagraph> <subparagraph id="HA58A4238191F4E24816E009D00267887"><enum>(B)</enum><text>individuals with extensive research experience or operational knowledge of unconventional natural gas and other petroleum resource exploration and production;</text></subparagraph> <subparagraph id="HC16F7926515745118C75DB6FCD45A407"><enum>(C)</enum><text>individuals broadly representative of the affected interests in unconventional natural gas and other petroleum resource exploration and production, including interests in environmental protection and safe operations; and</text></subparagraph> <subparagraph id="H8B2F75E012F14E2E95988577305109B1"><enum>(D)</enum><text>no individuals who are Federal employees.</text></subparagraph></paragraph> <paragraph id="HB9EABE57C883416F8555C2FCA6BD0688"><enum>(3)</enum><header>Duties</header><text>The advisory committee under this subsection shall advise the Secretary on the development and implementation of activities under this part related to unconventional natural gas and other petroleum resources.</text></paragraph> <paragraph id="H53C2120C720D4F62BCA3E01E4C9C46D5"><enum>(4)</enum><header>Compensation</header><text>A member of the advisory committee under this subsection shall serve without compensation but shall receive travel expenses in accordance with applicable provisions under subchapter I of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/57">chapter 57</external-xref> of title 5, United States Code.</text></paragraph></subsection> <subsection id="H22ACE4A5315F4BAD85512FD7DDBB328E"><enum>(c)</enum><header>Prohibition</header><text>No advisory committee established under this section shall make recommendations on funding awards to particular consortia or other entities, or for specific projects.</text></subsection></section> <section id="H866DC7ADB7E243B5B40959685F640169"><enum>946.</enum><header>Limits on participation</header><text display-inline="no-display-inline">An entity shall be eligible to receive an award under this part only if the Secretary finds—</text> <paragraph id="H862AC929CAE14CFC9D7DE118676184F8"><enum>(1)</enum><text>that the entity’s participation in the program under this part would be in the economic interest of the United States; and</text></paragraph> <paragraph id="HC93ACDE43212427EBE55A7D2B73627CD"><enum>(2)</enum><text>that either—</text> <subparagraph id="HCC1D270E65204D96B8BCDFD979BA07BC"><enum>(A)</enum><text>the entity is a United States-owned entity organized under the laws of the United States; or</text></subparagraph> <subparagraph id="H013F625CF8684FB9A5ABD1EE67DC3DF"><enum>(B)</enum><text>the entity is organized under the laws of the United States and has a parent entity organized under the laws of a country that affords—</text> <clause id="H1AF7501BA91E4622BB2CEA00A746E331"><enum>(i)</enum><text>to United States-owned entities opportunities, comparable to those afforded to any other entity, to participate in any cooperative research venture similar to those authorized under this part;</text></clause> <clause id="HC683BE8A71794E908ED1E51262ACB9E4"><enum>(ii)</enum><text>to United States-owned entities local investment opportunities comparable to those afforded to any other entity; and</text></clause> <clause id="HF0002E6D833549FAA0AE72A6D8AF02ED"><enum>(iii)</enum><text>adequate and effective protection for the intellectual property rights of United States-owned entities.</text></clause></subparagraph></paragraph></section> <section id="HACCE7D3018DD4E499BD5C2500BF3F14"><enum>947.</enum><header>Sunset</header><text display-inline="no-display-inline">The authority provided by this part shall terminate on September 30, 2011.</text></section> <section id="HB95CE396420D467395007C79813B7499"><enum>948.</enum><header>Definitions</header><text display-inline="no-display-inline">In this part:</text> <paragraph id="HAE6715D29C1E4CC9988574006565A16D"><enum>(1)</enum><header>Deepwater</header><text>The term <term>deepwater</term> means a water depth that is greater than 200 but less than 1,500 meters.</text></paragraph> <paragraph id="H461466D8E73942258435DD005852FA"><enum>(2)</enum><header>Independent producer of oil or gas</header> <subparagraph id="H9407A5B7DAFA4787AE25E884A17E4E6B"><enum>(A)</enum><header>In general</header><text>The term <term>independent producer of oil or gas</term> means any person that produces oil or gas other than a person to whom subsection (c) of <external-xref legal-doc="usc" parsable-cite="usc/26/613A">section 613A</external-xref> of the Internal Revenue Code of 1986 does not apply by reason of paragraph (2) (relating to certain retailers) or paragraph (4) (relating to certain refiners) of section 613A(d) of such Code.</text></subparagraph> <subparagraph id="HE531FD85B26944258BCE79FAD6B3F35"><enum>(B)</enum><header>Rules for applying paragraphs (2) and (4) of Section 613a<enum-in-header>(d)</enum-in-header></header><text>For purposes of subparagraph (A), paragraphs (2) and (4) of <external-xref legal-doc="usc" parsable-cite="usc/26/613A">section 613A(d)</external-xref> of the Internal Revenue Code of 1986 shall be applied by substituting <quote>calendar year</quote> for <quote>taxable year</quote> each place it appears in such paragraphs.</text></subparagraph></paragraph> <paragraph id="H9936230ADD074DAE92F3DE88994D79E8"><enum>(3)</enum><header>Program consortium</header><text>The term <term>program consortium</term> means the consortium selected under section 942(d).</text></paragraph> <paragraph id="HE5593B9E99874061987E2E00C2009348"><enum>(4)</enum><header>Remote or inconsequential</header><text>The term <term>remote or inconsequential</term> has the meaning given that term in regulations issued by the Office of Government Ethics under <external-xref legal-doc="usc" parsable-cite="usc/18/208">section 208(b)(2)</external-xref> of title 18, United States Code.</text></paragraph> <paragraph id="H00D91FAB721840D5B741279D66F78C76"><enum>(5)</enum><header>Small producer</header><text>The term <term>small producer</term> means an entity organized under the laws of the United States with production levels of less than 1,000 barrels per day of oil equivalent.</text></paragraph> <paragraph id="H51DA95B41F0B4F70A6F8FEECAC7981B3"><enum>(6)</enum><header>Ultra-deepwater</header><text>The term <term>ultra-deepwater</term> means a water depth that is equal to or greater than 1,500 meters.</text></paragraph> <paragraph id="HFC0B853343E74C8B85BE632CF045BE75"><enum>(7)</enum><header>Ultra-deepwater architecture</header><text>The term <term>ultra-deepwater architecture</term> means the integration of technologies for the exploration for, or production of, natural gas or other petroleum resources located at ultra-deepwater depths.</text></paragraph> <paragraph id="H1B198BC01C8447C7B101B6020007D822"><enum>(8)</enum><header>Ultra-deepwater Technology</header><text>The term <term>ultra-deepwater technology</term> means a discrete technology that is specially suited to address 1 or more challenges associated with the exploration for, or production of, natural gas or other petroleum resources located at ultra-deepwater depths.</text></paragraph> <paragraph id="HD48120CCDE934928939BFDEF17C33452"><enum>(9)</enum><header>Unconventional natural gas and other petroleum resource</header><text>The term <term>unconventional natural gas and other petroleum resource</term> means natural gas and other petroleum resource located onshore in an economically inaccessible geological formation, including resources of small producers.</text></paragraph></section> <section id="H908DEED4834347958C510268BFA06CEB"><enum>949.</enum><header>Funding</header> <subsection id="H76E576305B7E498484ECC200A1B1776F"><enum>(a)</enum><header>In general</header> <paragraph id="H2CA5611973E742D09E72313D169FA5E5"><enum>(1)</enum><header>Oil and gas lease income</header><text>For each of fiscal years 2004 through 2013, from any Federal royalties, rents, and bonuses derived from Federal onshore and offshore oil and gas leases issued under the Outer Continental Shelf Lands Act and the <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> which are deposited in the Treasury, and after distribution of any such funds as described in subsection (c), $150,000,000 shall be deposited into the Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Research Fund (in this section referred to as the Fund). For purposes of this section, the term <term>royalties</term> excludes proceeds from the sale of royalty production taken in kind and royalty production that is transferred under section 27(a)(3) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1353">43 U.S.C. 1353(a)(3)</external-xref>).</text></paragraph> <paragraph id="H5ED41D29916943CE8BC62CF4DE4CEFC"><enum>(2)</enum><header>Authorization of appropriations</header><text>In addition to amounts described in paragraph (1), there are authorized to be appropriated to the Secretary, to be deposited in the Fund, $50,000,000 for each of the fiscal years 2004 through 2013, to remain available until expended.</text></paragraph></subsection> <subsection id="H34F7DF45DBAF4D0CBF448C06410414A3"><enum>(b)</enum><header>Obligational authority</header><text>Monies in the Fund shall be available to the Secretary for obligation under this part without fiscal year limitation, to remain available until expended.</text></subsection> <subsection id="H3625C8E36C104F9300127EAA2390081"><enum>(c)</enum><header>Prior distributions</header><text>The distributions described in subsection (a) are those required by law—</text> <paragraph id="H5187E62F7423490187AA42DE04958E39"><enum>(1)</enum><text>to States and to the Reclamation Fund under the <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/30/191">30 U.S.C. 191(a)</external-xref>); and</text></paragraph> <paragraph id="HB8870B6F3D7940989623973C7020B680"><enum>(2)</enum><text>to other funds receiving monies from Federal oil and gas leasing programs, including—</text> <subparagraph id="H0110FF6AB9334E18A08769024D00CF3"><enum>(A)</enum><text>any recipients pursuant to section 8(g) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(g)</external-xref>);</text></subparagraph> <subparagraph id="H0E5688FF9B0D4F098DDEBC004D3633AE"><enum>(B)</enum><text>the Land and Water Conservation Fund, pursuant to section 2(c) of the <act-name parsable-cite="LWCFA">Land and Water Conservation Fund Act of 1965</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/16/4601-5">16 U.S.C. 4601–5(c)</external-xref>);</text></subparagraph> <subparagraph id="H31DFCC387F004148A9C06D90C609EEE"><enum>(C)</enum><text>the Historic Preservation Fund, pursuant to section 108 of the National Historic Preservation Act (<external-xref legal-doc="usc" parsable-cite="usc/16/470h">16 U.S.C. 470h</external-xref>); and</text></subparagraph> <subparagraph id="H0198ABFD690E4E259CB5A8D06795084"><enum>(D)</enum><text>the Secure Energy Reinvestment Fund.</text></subparagraph></paragraph></subsection> <subsection id="HD62B6C4F14D04081B3120963D70092A9"><enum>(d)</enum><header>Allocation</header><text>Amounts obligated from the Fund under this section in each fiscal year shall be allocated as follows:</text> <paragraph id="H822F0033EEF041979E4334D8DF43B50"><enum>(1)</enum><text>50 percent shall be for activities under section 942.</text></paragraph> <paragraph id="H8909D23C09EE43BC9898CED094006F02"><enum>(2)</enum><text>35 percent shall be for activities under section 943(d)(1).</text></paragraph> <paragraph id="H1E2C5AAA088A40B0BD4F92ABFA890006"><enum>(3)</enum><text>10 percent shall be for activities under section 943(d)(2).</text></paragraph> <paragraph id="H0CF8760C008F47FFB80089516D4F86C9"><enum>(4)</enum><text>5 percent shall be for research under section 941(d).</text></paragraph></subsection> <subsection id="HF2DB0A8CCBAA4C7696148FE4E9CF1BF6"><enum>(e)</enum><header>Fund</header><text>There is hereby established in the Treasury of the United States a separate fund to be known as the <quote>Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Research Fund</quote>.</text></subsection></section></part></subtitle> <subtitle id="HA02536A42DEA4384AFBB225F2CB7CC3C"><enum>F</enum><header>Science</header> <section id="H994F2FA50E43499D828CF400202F451C"><enum>951.</enum><header>Science</header> <subsection id="H329FFA84FD61466CAF18810242F978E5"><enum>(a)</enum><header>In general</header><text>The following sums are authorized to be appropriated to the Secretary for research, development, demonstration, and commercial application activities of the Office of Science, including activities authorized under this subtitle, including the amounts authorized under the amendment made by section 958(c)(2)(C), and including basic energy sciences, advanced scientific computing research, biological and environmental research, fusion energy sciences, high energy physics, nuclear physics, and research analysis and infrastructure support:</text> <paragraph id="HF88E248D3B664F9288AF5D935F8FE252"><enum>(1)</enum><text>For fiscal year 2004, $3,785,000,000.</text></paragraph> <paragraph id="H5E4FEA2083F94E4A83005890343C5FCB"><enum>(2)</enum><text>For fiscal year 2005, $4,153,000,000.</text></paragraph> <paragraph id="H5A82039F7FAD4D6C88CEBAC7A009973"><enum>(3)</enum><text>For fiscal year 2006, $4,618,000,000.</text></paragraph> <paragraph id="HDD8FBA6388314239B111E546739483FA"><enum>(4)</enum><text>For fiscal year 2007, $5,310,000,000.</text></paragraph> <paragraph id="H295FE9D5C4AB48639EF13C63C2BB0100"><enum>(5)</enum><text>For fiscal year 2008, $5,800,000,000.</text></paragraph></subsection> <subsection id="H6B8662795D054E7194D74CEE2C1D924F"><enum>(b)</enum><header>Allocations</header><text>From amounts authorized under subsection (a), the following sums are authorized:</text> <paragraph id="H6BE770CFA01749BB8152756C75C31250"><enum>(1)</enum><text>For activities of the Fusion Energy Sciences Program, including activities under sections 952 and 953—</text> <subparagraph id="HB120569A2A0A4CAEBBCD6924BDB69BC6"><enum>(A)</enum><text>for fiscal year 2004, $335,000,000;</text></subparagraph> <subparagraph id="H21DADB9308D54A788DFE54451E7804AB"><enum>(B)</enum><text>for fiscal year 2005, $349,000,000;</text></subparagraph> <subparagraph id="H555A2703C4A24A889071BD43ABF79EE4"><enum>(C)</enum><text>for fiscal year 2006, $362,000,000;</text></subparagraph> <subparagraph id="H9DD5D064D73942E6B9CE391D9E480049"><enum>(D)</enum><text>for fiscal year 2007, $377,000,000; and</text></subparagraph> <subparagraph id="H96F19E3E1D4C4D73A6ABB26EF37DA1C8"><enum>(E)</enum><text>for fiscal year 2008, $393,000,000.</text></subparagraph></paragraph> <paragraph id="H287E032D848942739EDFD1E2D030DB69"><enum>(2)</enum><text>For the Spallation Neutron Source—</text> <subparagraph id="HF0D922D00BC34A4495D22F964BCDD6CB"><enum>(A)</enum><text>for construction in fiscal year 2004, $124,600,000;</text></subparagraph> <subparagraph id="HE385926EEEC14970B47F42AD69872C33"><enum>(B)</enum><text>for construction in fiscal year 2005, $79,800,000;</text></subparagraph> <subparagraph id="HD644A0AC31D446D4B4AD1C839935266D"><enum>(C)</enum><text>for completion of construction in fiscal year 2006, $41,100,000; and</text></subparagraph> <subparagraph id="HC5D366FFBD324182A01E3846D5AAE1E1"><enum>(D)</enum><text>for other project costs (including research and development necessary to complete the project, preoperations costs, and capital equipment related to construction), $103,279,000 for the period encompassing fiscal years 2003 through 2006, to remain available until expended through September 30, 2006.</text></subparagraph></paragraph> <paragraph id="HD9C1C64C54FC4355B7C502ADD24F562C"><enum>(3)</enum><text>For Catalysis Research activities under section 956—</text> <subparagraph id="HB7A5094CD02F45D68248090007E7FCA4"><enum>(A)</enum><text>for fiscal year 2004, $33,000,000;</text></subparagraph> <subparagraph id="HE6252C1CC42A4AC8AA9796B07B873B28"><enum>(B)</enum><text>for fiscal year 2005, $35,000,000;</text></subparagraph> <subparagraph id="H75DE3F6181374B65AF445CF4AB47B712"><enum>(C)</enum><text>for fiscal year 2006, $36,500,000;</text></subparagraph> <subparagraph id="HF2E1F6CBE36941E4A21E83A5A13B8E04"><enum>(D)</enum><text>for fiscal year 2007, $38,200,000; and</text></subparagraph> <subparagraph id="H57356461F528482700156371CC6E19E4"><enum>(E)</enum><text>for fiscal year 2008, $40,100,000.</text></subparagraph></paragraph> <paragraph id="H3B723EA5B7A94FC19DD5E581D4145932"><enum>(4)</enum><text>For Nanoscale Science and Engineering Research activities under section 957—</text> <subparagraph id="H1E7C117CBFBA4DEC98EE086F6F6DDE3C"><enum>(A)</enum><text>for fiscal year 2004, $270,000,000;</text></subparagraph> <subparagraph id="H49CC210841174E3D9538A71F79667DFF"><enum>(B)</enum><text>for fiscal year 2005, $292,000,000;</text></subparagraph> <subparagraph id="H5B038D96B99E4062A9B849043BE42255"><enum>(C)</enum><text>for fiscal year 2006, $322,000,000;</text></subparagraph> <subparagraph id="H77EAF1D3D6964FB100B71DE21E377F29"><enum>(D)</enum><text>for fiscal year 2007, $355,000,000; and</text></subparagraph> <subparagraph id="HB801D82A4FD04C48B9B24B5841E560A9"><enum>(E)</enum><text>for fiscal year 2008, $390,000,000.</text></subparagraph></paragraph> <paragraph id="H4679ECC690EE4EC69FDDAB203DD510BD"><enum>(5)</enum><text>For activities under section 957(c), from the amounts authorized under paragraph (4) of this subsection—</text> <subparagraph id="H057AA1C635E74ECA868B61A8BAF0205D"><enum>(A)</enum><text>for fiscal year 2004, $135,000,000;</text></subparagraph> <subparagraph id="HCA3F84124B624002A18822FF55F8C6FA"><enum>(B)</enum><text>for fiscal year 2005, $150,000,000;</text></subparagraph> <subparagraph id="HF339C1AF790C489FB956CEDAF60884C8"><enum>(C)</enum><text>for fiscal year 2006, $120,000,000;</text></subparagraph> <subparagraph id="HB83947F84A984295B25C6BE68E804CC7"><enum>(D)</enum><text>for fiscal year 2007, $100,000,000; and</text></subparagraph> <subparagraph id="H6480DA942CB24EC79870FDB9872B98E2"><enum>(E)</enum><text>for fiscal year 2008, $125,000,000.</text></subparagraph></paragraph> <paragraph id="H012230B5F5334B278232B5B34262D6D9"><enum>(6)</enum><text>For activities in the Genomes to Life Program under section 959—</text> <subparagraph id="H92F493F175F34E13BE5D84B81F4DE301"><enum>(A)</enum><text>for fiscal year 2004, $100,000,000; and</text></subparagraph> <subparagraph id="HB19C4F48F2AC4B06916E56C314E5EF90"><enum>(B)</enum><text>for fiscal years 2005 through 2008, such sums as may be necessary.</text></subparagraph></paragraph> <paragraph id="H5DD47BB5460F4A05A7C3778C13E5C94E"><enum>(7)</enum><text>For activities in the Energy-Water Supply Program under section 961, $30,000,000 for each of fiscal years 2004 through 2008.</text></paragraph></subsection> <subsection id="H26E2E5A47C1E4A8AA5954642F3169D65"><enum>(c)</enum><header>ITER construction</header><text>In addition to the funds authorized under subsection (b)(1), such sums as may be necessary for costs associated with ITER construction, consistent with limitations under section 952.</text></subsection></section> <section id="H1D2169D5996143219784D514CA90774B"><enum>952.</enum><header>United States participation in ITER</header> <subsection id="H2D3B6C8A6B0D494B8E36965963EC4100"><enum>(a)</enum><header>In general</header><text>The United States may participate in ITER in accordance with the provisions of this section.</text></subsection> <subsection id="H469F34358DF147E293A8BE43C2CD967B"><enum>(b)</enum><header>Agreement</header> <paragraph id="H829EE1859B9443DA990365BB8B7BBBE5"><enum>(1)</enum><header>In general</header><text>The Secretary is authorized to negotiate an agreement for United States participation in ITER.</text></paragraph> <paragraph id="HDB5ACFFBE838432EA1B7007BF7AF3B5B"><enum>(2)</enum><header>Contents</header><text>Any agreement for United States participation in ITER shall, at a minimum—</text> <subparagraph id="H74239475F29443BAB0A90515A55D7D98"><enum>(A)</enum><text>clearly define the United States financial contribution to construction and operating costs;</text></subparagraph> <subparagraph id="H1584EDFBBF8846FCA0AFE6D22866CB6"><enum>(B)</enum><text>ensure that the share of ITER’s high-technology components manufactured in the United States is at least proportionate to the United States financial contribution to ITER;</text></subparagraph> <subparagraph id="H0B6F702F0AD04BCFA5C718A4F230DBA6"><enum>(C)</enum><text>ensure that the United States will not be financially responsible for cost overruns in components manufactured in other ITER participating countries;</text></subparagraph> <subparagraph id="H88AADDB11C6E467D9593FB076E888324"><enum>(D)</enum><text>guarantee the United States full access to all data generated by ITER;</text></subparagraph> <subparagraph id="H7D0B05301B544651B5271B86EC8EFA37"><enum>(E)</enum><text>enable United States researchers to propose and carry out an equitable share of the experiments at ITER;</text></subparagraph> <subparagraph id="H2625DEF7962043CF9FD0F50382919C00"><enum>(F)</enum><text>provide the United States with a role in all collective decisionmaking related to ITER; and</text></subparagraph> <subparagraph id="H53B317D26C3A4DF6A4829E15548F5759"><enum>(G)</enum><text>describe the process for discontinuing or decommissioning ITER and any United States role in those processes.</text></subparagraph></paragraph></subsection> <subsection id="H2E1567788D6A4105A6F2097843511119"><enum>(c)</enum><header>Plan</header><text>The Secretary, in consultation with the Fusion Energy Sciences Advisory Committee, shall develop a plan for the participation of United States scientists in ITER that shall include the United States research agenda for ITER, methods to evaluate whether ITER is promoting progress toward making fusion a reliable and affordable source of power, and a description of how work at ITER will relate to other elements of the United States fusion program. The Secretary shall request a review of the plan by the National Academy of Sciences.</text></subsection> <subsection id="HF55B00CD54CC4B4D8081BFC310E24DBF"><enum>(d)</enum><header>Limitation</header><text>No funds shall be expended for the construction of ITER until the Secretary has transmitted to Congress—</text> <paragraph id="H6E48C6901CDE4C8E9ED1606D48CE5D85"><enum>(1)</enum><text>the agreement negotiated pursuant to subsection (b) and 120 days have elapsed since that transmission;</text></paragraph> <paragraph id="HFB97B83AAD274BE0B5EE06B10960A139"><enum>(2)</enum><text>a report describing the management structure of ITER and providing a fixed dollar estimate of the cost of United States participation in the construction of ITER, and 120 days have elapsed since that transmission;</text></paragraph> <paragraph id="H4665DDB2CDD349B4B708982B96D9AEC"><enum>(3)</enum><text>a report describing how United States participation in ITER will be funded without reducing funding for other programs in the Office of Science, including other fusion programs, and 60 days have elapsed since that transmission; and</text></paragraph> <paragraph id="H3D11C5DD63064A26A9C26DC8C252BA6"><enum>(4)</enum><text>the plan required by subsection (c) (but not the National Academy of Sciences review of that plan), and 60 days have elapsed since that transmission.</text></paragraph></subsection> <subsection id="H621DEC212B134536B0F08F6953B4FAC6"><enum>(e)</enum><header>Alternative to ITER</header><text>If at any time during the negotiations on ITER, the Secretary determines that construction and operation of ITER is unlikely or infeasible, the Secretary shall send to Congress, as part of the budget request for the following year, a plan for implementing the domestic burning plasma experiment known as FIRE, including costs and schedules for such a plan. The Secretary shall refine such plan in full consultation with the Fusion Energy Sciences Advisory Committee and shall also transmit such plan to the National Academy of Sciences for review.</text></subsection> <subsection id="H275B8A0EFF0548CEBD7BCFD2DC25D3D1"><enum>(f)</enum><header>Definitions</header><text>In this section and sections 951(b)(1) and (c):</text> <paragraph id="H39864E8CA0804F09B384C299A692C105"><enum>(1)</enum><header>Construction</header><text>The term <term>construction</term> means the physical construction of the ITER facility, and the physical construction, purchase, or manufacture of equipment or components that are specifically designed for the ITER facility, but does not mean the design of the facility, equipment, or components.</text></paragraph> <paragraph id="H5B2441E896044C059F4FFFA73024F849"><enum>(2)</enum><header>FIRE</header><text>The term <term>FIRE</term> means the Fusion Ignition Research Experiment, the fusion research experiment for which design work has been supported by the Department as a possible alternative burning plasma experiment in the event that ITER fails to move forward.</text></paragraph> <paragraph id="H28F40DCACB5A4A2782C95D55003DB17B"><enum>(3)</enum><header>ITER</header><text>The term <term>ITER</term> means the international burning plasma fusion research project in which the President announced United States participation on January 30, 2003.</text></paragraph></subsection></section> <section id="H85B2732694E944B19697F051F2A2F8EB"><enum>953.</enum><header>Plan for Fusion Energy Sciences Program</header> <subsection id="HCB484137AD704B0BAFB6DAAA51C77EC"><enum>(a)</enum><header>Declaration of policy</header><text>It shall be the policy of the United States to conduct research, development, demonstration, and commercial application to provide for the scientific, engineering, and commercial infrastructure necessary to ensure that the United States is competitive with other nations in providing fusion energy for its own needs and the needs of other nations, including by demonstrating electric power or hydrogen production for the United States energy grid utilizing fusion energy at the earliest date possible.</text></subsection> <subsection id="HDF5B993175B143D591EABD4587D063C3"><enum>(b)</enum><header>Planning</header> <paragraph id="H2DF0E52C4DA9416281E004824FB0792"><enum>(1)</enum><header>In general</header><text>Not later than 180 days after the date of enactment of this Act, the Secretary shall present to Congress a plan, with proposed cost estimates, budgets, and potential international partners, for the implementation of the policy described in subsection (a). The plan shall ensure that—</text> <subparagraph id="HE058AB16312A47689CF527621C18546E"><enum>(A)</enum><text>existing fusion research facilities are more fully utilized;</text></subparagraph> <subparagraph id="H294A0506B07C4C5F80B465076432C437"><enum>(B)</enum><text>fusion science, technology, theory, advanced computation, modeling, and simulation are strengthened;</text></subparagraph> <subparagraph id="H0B909C884FF745B09C7442144C13B6AF"><enum>(C)</enum><text>new magnetic and inertial fusion research facilities are selected based on scientific innovation, cost effectiveness, and their potential to advance the goal of practical fusion energy at the earliest date possible, and those that are selected are funded at a cost-effective rate;</text></subparagraph> <subparagraph id="H75515893FC3943038FBB950562CFC9A4"><enum>(D)</enum><text>communication of scientific results and methods between the fusion energy science community and the broader scientific and technology communities is improved;</text></subparagraph> <subparagraph id="HC4843A3DAB7C4237B3603421DE1CA76B"><enum>(E)</enum><text>inertial confinement fusion facilities are utilized to the extent practicable for the purpose of inertial fusion energy research and development; and</text></subparagraph> <subparagraph id="H60A4FE72A2F9418D959200C2A1E8748"><enum>(F)</enum><text>attractive alternative inertial and magnetic fusion energy approaches are more fully explored.</text></subparagraph></paragraph> <paragraph id="H4264AF1F0E9F42E1BDFAB1D9CEA7B9"><enum>(2)</enum><header>Costs and schedules</header><text>Such plan shall also address the status of and, to the degree possible, costs and schedules for—</text> <subparagraph id="HB211C603AD684E0CAA0000FD4857A8F7"><enum>(A)</enum><text>in coordination with the program under section 960, the design and implementation of international or national facilities for the testing of fusion materials; and</text></subparagraph> <subparagraph id="H54D73A818086400BA44FA4B9BDCDFC8C"><enum>(B)</enum><text>the design and implementation of international or national facilities for the testing and development of key fusion technologies.</text></subparagraph></paragraph></subsection></section> <section id="H2AB7664FEEC44DEE81B44467525AE35"><enum>954.</enum><header>Spallation Neutron Source</header> <subsection id="H591C865C151140CE8B00626742E63EA"><enum>(a)</enum><header>Definition</header><text>For the purposes of this section, the term <term>Spallation Neutron Source</term> means Department Project 99–E–334, Oak Ridge National Laboratory, Oak Ridge, Tennessee.</text></subsection> <subsection id="H4119CFA27D234B86A545C004C7B66153"><enum>(b)</enum><header>Report</header><text>The Secretary shall report on the Spallation Neutron Source as part of the Department’s annual budget submission, including a description of the achievement of milestones, a comparison of actual costs to estimated costs, and any changes in estimated project costs or schedule.</text></subsection> <subsection id="HE0F11C9A79F3470CBBBD32715EF528F4"><enum>(c)</enum><header>Limitations</header><text>The total amount obligated by the Department, including prior year appropriations, for the Spallation Neutron Source shall not exceed—</text> <paragraph id="HAF956B4232064C398E25041264255909"><enum>(1)</enum><text>$1,192,700,000 for costs of construction;</text></paragraph> <paragraph id="H2B1B9FD44BC8466589CE2DE4DA388283"><enum>(2)</enum><text>$219,000,000 for other project costs; and</text></paragraph> <paragraph id="HDFF105BD6F3D4E33837FF1C3005FC61E"><enum>(3)</enum><text>$1,411,700,000 for total project cost.</text></paragraph></subsection></section> <section id="HAE96EC66A5A74BDD924CF11896E0C8AE"><enum>955.</enum><header>Support for science and energy facilities and infrastructure</header> <subsection id="H4FAF77550C1E4158B1447D9C8800B239"><enum>(a)</enum><header>Facility and infrastructure policy</header><text>The Secretary shall develop and implement a strategy for facilities and infrastructure supported primarily from the Office of Science, the Office of Energy Efficiency and Renewable Energy, the Office of Fossil Energy, or the Office of Nuclear Energy, Science, and Technology Programs at all National Laboratories and single-purpose research facilities. Such strategy shall provide cost-effective means for—</text> <paragraph id="H679CCF8B31DD493BB0009B50C9E6049"><enum>(1)</enum><text>maintaining existing facilities and infrastructure, as needed;</text></paragraph> <paragraph id="HCB3F040D4E944086B5B5933CD06B1022"><enum>(2)</enum><text>closing unneeded facilities;</text></paragraph> <paragraph id="HBF0524FBB63A42F981DC6941AB845FE"><enum>(3)</enum><text>making facility modifications; and</text></paragraph> <paragraph id="H14064E214DAC482E9D4F71CFC5025EF6"><enum>(4)</enum><text>building new facilities.</text></paragraph></subsection> <subsection id="H7494FDF52652470988D57DFD4FBBBC41"><enum>(b)</enum><header>Report</header> <paragraph id="HD79D57C0928D455181B4F558E48900B6"><enum>(1)</enum><header>In general</header><text>The Secretary shall prepare and transmit, along with the President’s budget request to Congress for fiscal year 2006, a report containing the strategy developed under subsection (a).</text></paragraph> <paragraph id="H44F79C2D046E4209A9C23321459226F7"><enum>(2)</enum><header>Contents</header><text>For each National Laboratory and single-purpose research facility, for the facilities primarily used for science and energy research, such report shall contain—</text> <subparagraph id="H56B5C17A03DD43A18370B9C3456BA00"><enum>(A)</enum><text>the current priority list of proposed facilities and infrastructure projects, including cost and schedule requirements;</text></subparagraph> <subparagraph id="H88180C59CEEA4865B023A0553DFFE4A4"><enum>(B)</enum><text>a current 10-year plan that demonstrates the reconfiguration of its facilities and infrastructure to meet its missions and to address its long-term operational costs and return on investment;</text></subparagraph> <subparagraph id="HD440F445A80D41C5959250EB4801F5D3"><enum>(C)</enum><text>the total current budget for all facilities and infrastructure funding; and</text></subparagraph> <subparagraph id="H110815914AE7419183CB60BD807BE0AB"><enum>(D)</enum><text>the current status of each facility and infrastructure project compared to the original baseline cost, schedule, and scope.</text></subparagraph></paragraph></subsection></section> <section id="H40633E96AE3A44779481D8C86DD36924"><enum>956.</enum><header>Catalysis Research and development Program</header> <subsection id="H66751908A9A14CE59898F91B3DC97F42"><enum>(a)</enum><header>Establishment</header><text>The Secretary, through the Office of Science, shall support a program of research and development in catalysis science consistent with the Department’s statutory authorities related to research and development. The program shall include efforts to—</text> <paragraph id="HFFA0B7CB0798497587F1A67748D56D88"><enum>(1)</enum><text>enable catalyst design using combinations of experimental and mechanistic methodologies coupled with computational modeling of catalytic reactions at the molecular level;</text></paragraph> <paragraph id="HE28FE23E78CD41D6BAE22F487C396D"><enum>(2)</enum><text>develop techniques for high throughput synthesis, assay, and characterization at nanometer and subnanometer scales in situ under actual operating conditions;</text></paragraph> <paragraph id="H6ECBAAA347C7451F901D17A1B766B444"><enum>(3)</enum><text>synthesize catalysts with specific site architectures;</text></paragraph> <paragraph id="H1E0780562B244405B88914E0CC001FDF"><enum>(4)</enum><text>conduct research on the use of precious metals for catalysis; and</text></paragraph> <paragraph id="H91969C5D75A2453B8DE4B2CB56FE68B5"><enum>(5)</enum><text>translate molecular understanding to the design of catalytic compounds.</text></paragraph></subsection> <subsection id="H12E9A85DE1524E75A800B9A758CE180"><enum>(b)</enum><header>Duties of the Office of Science</header><text>In carrying out the program under this section, the Director of the Office of Science shall—</text> <paragraph id="H0FF181A49C5F450DAD70A402C71C00FC"><enum>(1)</enum><text>support both individual investigators and multidisciplinary teams of investigators to pioneer new approaches in catalytic design;</text></paragraph> <paragraph id="H1C48673CF55A4DDEAFEF093B2935D151"><enum>(2)</enum><text>develop, plan, construct, acquire, share, or operate special equipment or facilities for the use of investigators in collaboration with national user facilities such as nanoscience and engineering centers;</text></paragraph> <paragraph id="HDD2C9612FE4040C88FEF9228FE7E104E"><enum>(3)</enum><text>support technology transfer activities to benefit industry and other users of catalysis science and engineering; and</text></paragraph> <paragraph id="H0DA8CD7F13B04BCE9699C0A68C374EE8"><enum>(4)</enum><text>coordinate research and development activities with industry and other Federal agencies.</text></paragraph></subsection> <subsection id="H850F08CB74D343449E832304FF8C9C22"><enum>(c)</enum><header>Triennial assessment</header><text>The National Academy of Sciences shall review the catalysis program every 3 years to report on gains made in the fundamental science of catalysis and its progress towards developing new fuels for energy production and material fabrication processes.</text></subsection></section> <section id="H3E5F86B2240948A79BE5128813FBDC9"><enum>957.</enum><header>Nanoscale Science and Engineering Research, development, demonstration, and commercial application</header> <subsection id="H0A8C90CCB82A42D9A908E2ACB64F7508"><enum>(a)</enum><header>Establishment</header><text>The Secretary, acting through the Office of Science, shall support a program of research, development, demonstration, and commercial application in nanoscience and nanoengineering. The program shall include efforts to further the understanding of the chemistry, physics, materials science, and engineering of phenomena on the scale of nanometers and to apply that knowledge to the Department’s mission areas.</text></subsection> <subsection id="HD1D703AFCEC8444CAE15B8B0096E5E86"><enum>(b)</enum><header>Duties of the Office of Science</header><text>In carrying out the program under this section, the Office of Science shall—</text> <paragraph id="HAAEBB7D4A94947B49DA97D1781F2B6C0"><enum>(1)</enum><text>support both individual investigators and teams of investigators, including multidisciplinary teams;</text></paragraph> <paragraph id="H0DD0DB46890440649881C6DE6DBCFC8"><enum>(2)</enum><text>carry out activities under subsection (c);</text></paragraph> <paragraph id="HEA0FC033FCF54D4890CBD902E222CA83"><enum>(3)</enum><text>support technology transfer activities to benefit industry and other users of nanoscience and nanoengineering;</text></paragraph> <paragraph id="H86E8D2D4EFBA407A94E365E3834016DB"><enum>(4)</enum><text>coordinate research and development activities with other Department programs, industry, and other Federal agencies;</text></paragraph> <paragraph id="H0770C97C7ED84BD3BA94759B9CA6A553"><enum>(5)</enum><text>ensure that societal and ethical concerns will be addressed as the technology is developed by—</text> <subparagraph id="H31908A180772412EB7A37F48E006FD0"><enum>(A)</enum><text>establishing a research program to identify societal and ethical concerns related to nanotechnology, and ensuring that the results of such research are widely disseminated; and</text></subparagraph> <subparagraph id="H1C2D8754CF2F4601B92DEFBEABFF32B"><enum>(B)</enum><text>integrating, insofar as possible, research on societal and ethical concerns with nanotechnology research and development; and</text></subparagraph></paragraph> <paragraph id="H491433359AC743E78EB5FB57002EAFC0"><enum>(6)</enum><text>ensure that the potential of nanotechnology to produce or facilitate the production of clean, inexpensive energy is realized by supporting nanotechnology energy applications research and development.</text></paragraph></subsection> <subsection id="H917F5DB7987B4C1EBA45642B113DF203"><enum>(c)</enum><header>Nanoscience and nanoengineering research centers and major instrumentation</header> <paragraph id="H9E01A65D8DE0453DAC543CFF2267A06C"><enum>(1)</enum><header>In general</header><text>The Secretary shall carry out projects to develop, plan, construct, acquire, operate, or support special equipment, instrumentation, or facilities for investigators conducting research and development in nanoscience and nanoengineering.</text></paragraph> <paragraph id="HBB506C3A79754BE48C23318CAE161923"><enum>(2)</enum><header>Activities</header><text>Projects under paragraph (1) may include the measurement of properties at the scale of nanometers, manipulation at such scales, and the integration of technologies based on nanoscience or nanoengineering into bulk materials or other technologies.</text></paragraph> <paragraph id="H94A565EFD9CA4B079901DAAA76ED8D3C"><enum>(3)</enum><header>Facilities</header><text>Facilities under paragraph (1) may include electron microcharacterization facilities, microlithography facilities, scanning probe facilities, and related instrumentation.</text></paragraph> <paragraph id="H4A2EA165329A4B4BA714D964B9D15847"><enum>(4)</enum><header>Collaborations</header><text>The Secretary shall encourage collaborations among Department programs, institutions of higher education, laboratories, and industry at facilities under this subsection.</text></paragraph></subsection></section> <section id="HC5CA4C0E81414ED7863CDF16E27BA7AB"><enum>958.</enum><header>Advanced scientific computing for energy missions</header> <subsection id="H4A43D97AF9E7407D961B08FB3B2E71D"><enum>(a)</enum><header>In general</header><text>The Secretary, acting through the Office of Science, shall support a program to advance the Nation’s computing capability across a diverse set of grand challenge, computationally based, science problems related to departmental missions.</text></subsection> <subsection id="H9356442E5DD84E71B1509FC213BA0082"><enum>(b)</enum><header>Duties of the Office of Science</header><text>In carrying out the program under this section, the Office of Science shall—</text> <paragraph id="H17F64D190F4B427E957C660762F9ABD4"><enum>(1)</enum><text>advance basic science through computation by developing software to solve grand challenge science problems on new generations of computing platforms in collaboration with other Department program offices;</text></paragraph> <paragraph id="H7C6FD938974A42A8B3D3001BD5897136"><enum>(2)</enum><text>enhance the foundations for scientific computing by developing the basic mathematical and computing systems software needed to take full advantage of the computing capabilities of computers with peak speeds of 100 teraflops or more, some of which may be unique to the scientific problem of interest;</text></paragraph> <paragraph id="HB7F9CB50EFDA4D1DA1501BFB8EB12FC8"><enum>(3)</enum><text>enhance national collaboratory and networking capabilities by developing software to integrate geographically separated researchers into effective research teams and to facilitate access to and movement and analysis of large (petabyte) data sets;</text></paragraph> <paragraph id="HB5260889DF5B408DA945D8AB0056869B"><enum>(4)</enum><text>develop and maintain a robust scientific computing hardware infrastructure to ensure that the computing resources needed to address departmental missions are available; and</text></paragraph> <paragraph id="H5EE1A512C68944D5A3E3C5124EC5D24"><enum>(5)</enum><text>explore new computing approaches and technologies that promise to advance scientific computing, including developments in quantum computing.</text></paragraph></subsection> <subsection id="H3DDAF47009F845B4B723E5B4FD5BA911"><enum>(c)</enum><header>High-Performance Computing Act of 1991 amendments</header><text>The High-Performance Computing Act of 1991 is amended—</text> <paragraph id="H2474E8DDD8C74DB59CECF76E4749C195"><enum>(1)</enum><text>in section 4 (<external-xref legal-doc="usc" parsable-cite="usc/15/5503">15 U.S.C. 5503</external-xref>)—</text> <subparagraph id="HDD5EDEA43A3548EEBAB9518D92C0CB77"><enum>(A)</enum><text>in paragraph (3) by striking <quote>means</quote> and inserting <quote>and networking and information technology mean</quote>, and by striking <quote>(including vector supercomputers and large scale parallel systems)</quote>; and</text></subparagraph> <subparagraph id="HAE54BA84A8D94F70BC00004F85D4E0A2"><enum>(B)</enum><text>in paragraph (4), by striking <quote>packet switched</quote>; and</text></subparagraph></paragraph> <paragraph id="H8DB3743C54DF4351A988203C5126545D"><enum>(2)</enum><text>in section 203 (<external-xref legal-doc="usc" parsable-cite="usc/15/5523">15 U.S.C. 5523</external-xref>)—</text> <subparagraph id="HC73112B734B24D73AE66FBDDECEA10E5"><enum>(A)</enum><text>in subsection (a), by striking all after <quote>As part of the</quote> and inserting <quote>Networking and Information Technology Research and Development Program, the Secretary of Energy shall conduct basic and applied research in networking and information technology, with emphasis on supporting fundamental research in the physical sciences and engineering, and energy applications; providing supercomputer access and advanced communication capabilities and facilities to scientific researchers; and developing tools for distributed scientific collaboration.</quote>;</text></subparagraph> <subparagraph id="H85A06AE83EF648909B0069A03D919521"><enum>(B)</enum><text>in subsection (b), by striking <quote>Program</quote> and inserting <quote>Networking and Information Technology Research and Development Program</quote>; and</text></subparagraph> <subparagraph id="H7832C00B5187486C8C0050A5DA851253"><enum>(C)</enum><text>by amending subsection (e) to read as follows:</text> <quoted-block id="HEB5E4611EB414BBA8CCD001877C1D095"> <subsection id="H36731ED71EBF4501A5AC82004610CDF3"><enum>(e)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary of Energy to carry out the Networking and Information Technology Research and Development Program such sums as may be necessary for fiscal years 2004 through 2008.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection> <subsection id="H8E733661699846FABEC92CBE9B2B32D9"><enum>(d)</enum><header>Coordination</header><text>The Secretary shall ensure that the program under this section is integrated and consistent with—</text> <paragraph id="H86B0F183B5A04110803CA6EA95F88600"><enum>(1)</enum><text>the Advanced Simulation and Computing Program, formerly known as the Accelerated Strategic Computing Initiative, of the National Nuclear Security Administration; and</text></paragraph> <paragraph id="H3F4772D61B9B4E4A85ADD713594E945F"><enum>(2)</enum><text>other national efforts related to advanced scientific computing for science and engineering.</text></paragraph></subsection> <subsection id="H9E04F4536B9F4B4DBEE09B4249FF2DE4"><enum>(e)</enum><header>Report</header> <paragraph id="H91AB1B292AFA40029DBBDE706E198056"><enum>(1)</enum><header>In general</header><text>Before undertaking any new initiative to develop any new advanced architecture for high-speed computing, the Secretary, through the Director of the Office of Science, shall transmit a report to Congress describing—</text> <subparagraph id="HCCCBA9603BB242CFA5EFE753BAFD712C"><enum>(A)</enum><text>the expected duration and cost of the initiative;</text></subparagraph> <subparagraph id="HB52DB548018A47ABBBE4ADA83170E89C"><enum>(B)</enum><text>the technical milestones the initiative is designed to achieve;</text></subparagraph> <subparagraph id="H2A3E256848DE4CB690FA8D60D043C3EC"><enum>(C)</enum><text>how institutions of higher education and private firms will participate in the initiative; and</text></subparagraph> <subparagraph id="H76A88D0EBA0543BABC619C9213996598"><enum>(D)</enum><text>why the goals of the initiative could not be achieved through existing programs.</text></subparagraph></paragraph> <paragraph id="H77BAEBBD83BE452E87FD51843FDE3989"><enum>(2)</enum><header>Limitation</header><text>No funds may be expended on any initiative described in paragraph (1) until 30 days after the report required by that paragraph is transmitted to Congress.</text></paragraph></subsection></section> <section id="HB29CF09117434DC1847ED68B4623DB30"><enum>959.</enum><header>Genomes to Life Program</header> <subsection id="H59AA9FDA123A468499CA58D3BAF4A1EC"><enum>(a)</enum><header>Program</header> <paragraph id="HA31F489B495A4482A7CAC5BD119635D0"><enum>(1)</enum><header>Establishment</header><text>The Secretary shall establish a research, development, and demonstration program in genetics, protein science, and computational biology to support the energy, national security, and environmental mission of the Department.</text></paragraph> <paragraph id="H34DD7A92C23F442590CC7C61D56BC4C2"><enum>(2)</enum><header>Grants</header><text>The program shall support individual investigators and multidisciplinary teams of investigators through competitive, merit-reviewed grants.</text></paragraph> <paragraph id="H439BD972ED8E47DCACD8FFE3C791EB02"><enum>(3)</enum><header>Consultation</header><text>In carrying out the program, the Secretary shall consult with other Federal agencies that conduct genetic and protein research.</text></paragraph></subsection> <subsection id="HD25F8AFB01AD4D2B84D9005F00F4A487"><enum>(b)</enum><header>Goals</header><text>The program shall have the goal of developing technologies and methods based on the biological functions of genomes, microbes, and plants that—</text> <paragraph id="H05DEFF680F6244F7B4904323C7FE86F9"><enum>(1)</enum><text>can facilitate the production of fuels, including hydrogen;</text></paragraph> <paragraph id="HDD1B5E52E6474E55B000F950D2067530"><enum>(2)</enum><text>convert carbon dioxide to organic carbon;</text></paragraph> <paragraph id="HB35242254B9648439DCA973278741F1C"><enum>(3)</enum><text>improve national security and combat terrorism;</text></paragraph> <paragraph id="H7D12404B0D6D4AF4893DB4B7B8FAD22C"><enum>(4)</enum><text>detoxify soils and water at Department facilities contaminated with heavy metals and radiological materials; and</text></paragraph> <paragraph id="HDD5110EB501248358BD095ACB068465F"><enum>(5)</enum><text>address other Department missions as identified by the Secretary.</text></paragraph></subsection> <subsection id="HFEC6BD2B037640D0A9957BF2D554D732"><enum>(c)</enum><header>Plan</header> <paragraph id="H4EF5F4BEBCDD4EA8AF00DB9522B46FA2"><enum>(1)</enum><header>Development of plan</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary shall prepare and transmit to Congress a research plan describing how the program authorized pursuant to this section will be undertaken to accomplish the program goals established in subsection (b).</text></paragraph> <paragraph id="HC75662A037EC43B18EE04020CF0319D2"><enum>(2)</enum><header>Review of plan</header><text>The Secretary shall contract with the National Academy of Sciences to review the research plan developed under this subsection. The Secretary shall transmit the review to Congress not later than 18 months after transmittal of the research plan under paragraph (1), along with the Secretary’s response to the recommendations contained in the review.</text></paragraph></subsection> <subsection id="H63AB4A04714A4750B53E4381F6908562"><enum>(d)</enum><header>Genomes to life user facilities and ancillary equipment</header> <paragraph id="HBE61C65AD5C64946B0C7DEA1D360EE44"><enum>(1)</enum><header>In general</header><text>Within the funds authorized to be appropriated pursuant to this Act, the amounts specified under section 951(b)(6) shall, subject to appropriations, be available for projects to develop, plan, construct, acquire, or operate special equipment, instrumentation, or facilities for investigators conducting research, development, demonstration, and commercial application in systems biology and proteomics and associated biological disciplines.</text></paragraph> <paragraph id="HD839B1034E39423EA64E4B62FDE56DF9"><enum>(2)</enum><header>Facilities</header><text>Facilities under paragraph (1) may include facilities, equipment, or instrumentation for—</text> <subparagraph id="HB4611E636BEA49178926A084060656F4"><enum>(A)</enum><text>the production and characterization of proteins;</text></subparagraph> <subparagraph id="H32C85CA3762C4699B6DABB63E0480021"><enum>(B)</enum><text>whole proteome analysis;</text></subparagraph> <subparagraph id="HB794549457A6457B8761BDC4056837CE"><enum>(C)</enum><text>characterization and imaging of molecular machines; and</text></subparagraph> <subparagraph id="H1650DFB7FFF04AA9921F59728D03B547"><enum>(D)</enum><text>analysis and modeling of cellular systems.</text></subparagraph></paragraph> <paragraph id="H7F40C129CE874D5CBF4D8009BD4E584"><enum>(3)</enum><header>Collaborations</header><text>The Secretary shall encourage collaborations among universities, laboratories, and industry at facilities under this subsection. All facilities under this subsection shall have a specific mission of technology transfer to other institutions.</text></paragraph></subsection> <subsection id="HE742EC1ACD8E4C6CAE6CC38431B0F233"><enum>(e)</enum><header>Prohibition on biomedical and human cell and human subject research</header> <paragraph id="HA93B1D93F22D417BB0A2BC3C73E565"><enum>(1)</enum><header>No biomedical research</header><text>In carrying out the program under this section, the Secretary shall not conduct biomedical research.</text></paragraph> <paragraph id="H6EF70FE680D84269AD7DA6A2AED6CB1"><enum>(2)</enum><header>Limitations</header><text>Nothing in this section shall authorize the Secretary to conduct any research or demonstrations—</text> <subparagraph id="H7206E52984BE430CA58139B674AD8B72"><enum>(A)</enum><text>on human cells or human subjects; or</text></subparagraph> <subparagraph id="HFC32D93950704EFAB1E72B5B8FAE41C4"><enum>(B)</enum><text>designed to have direct application with respect to human cells or human subjects.</text></subparagraph></paragraph></subsection></section> <section id="HDE2E082B3448475E91262700678CC97C"><enum>960.</enum><header>Fission and fusion energy materials research Program</header><text display-inline="no-display-inline">In the President’s fiscal year 2006 budget request, the Secretary shall establish a research and development program on material science issues presented by advanced fission reactors and the Department’s fusion energy program. The program shall develop a catalog of material properties required for these applications, develop theoretical models for materials possessing the required properties, benchmark models against existing data, and develop a roadmap to guide further research and development in this area.</text></section> <section id="H54953C6FE54B4BF28230ABBAF2DB9E8C"><enum>961.</enum><header>Energy-Water Supply Program</header> <subsection id="H1B63F7BEFF7A48C784786CE44958A67"><enum>(a)</enum><header>Establishment</header><text>There is established within the Department the Energy-Water Supply Program, to study energy-related and certain other issues associated with the supply of drinking water and operation of community water systems and to study water supply issues related to energy.</text></subsection> <subsection id="H0CE5654D76B24D4897DA5DBAF8AB5C"><enum>(b)</enum><header>Definitions</header><text>For the purposes of this section:</text> <paragraph id="H8163864C2A7D407A96F4AE2C916C7E56"><enum>(1)</enum><header>Administrator</header><text>The term <term>Administrator</term> means the Administrator of the Environmental Protection Agency.</text></paragraph> <paragraph id="H66359EF1C2BD4465A3FE2C785FF300E1"><enum>(2)</enum><header>Agency</header><text>The term <term>Agency</term> means the Environmental Protection Agency.</text></paragraph> <paragraph id="H11B361B99F624210B2D50000F157621"><enum>(3)</enum><header>Foundation</header><text>The term <term>Foundation</term> means the American Water Works Association Research Foundation.</text></paragraph> <paragraph id="HACB1DCAD036C467FB1B211ADD35BFB"><enum>(4)</enum><header>Indian tribe</header><text>The term <term>Indian tribe</term> has the meaning given the term in section 4 of the <act-name parsable-cite="ISDA">Indian Self-Determination and Education Assistance Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/25/450b">25 U.S.C. 450b</external-xref>).</text></paragraph> <paragraph id="H24C8A3F8C85345DAB21CB039F48B0000"><enum>(5)</enum><header>Program</header><text>The term <term>Program</term> means the Energy-Water Supply Program established by this section.</text></paragraph></subsection> <subsection id="HA9B7FA0E4A6B47389E23065DA4EBBA1"><enum>(c)</enum><header>Program areas</header><text>The Program shall develop methods, means, procedures, equipment, and improved technologies relating to—</text> <paragraph id="H25748DCE7637483FB3063CB941D330A3"><enum>(1)</enum><text>the arsenic removal program under subsection (d);</text></paragraph> <paragraph id="H39B5A7E958E54870B0B907C6FF6EE2E9"><enum>(2)</enum><text>the desalination program under subsection (e); and</text></paragraph> <paragraph id="H9EBAA01D2DD6478FADC9D9D81FF3C29"><enum>(3)</enum><text>the water and energy sustainability program under subsection (f).</text></paragraph></subsection> <subsection id="H6FBE8BC495004490AEF0038BA201495"><enum>(d)</enum><header>Arsenic removal Program</header> <paragraph id="H09A5ECB4202D4CA8000030E921812606"><enum>(1)</enum><header>In general</header><text>As soon as practicable after the date of enactment of this Act, the Secretary, in coordination with the Administrator and in partnership with the Foundation, shall utilize the facilities, institutions, and relationships established in the Consolidated Appropriations Resolution, 2003 as described in Senate Report 107–220 to carry out a research program to provide innovative methods and means for removal of arsenic.</text></paragraph> <paragraph id="H1BB802E825114E8E9401C683DDBAC8B9"><enum>(2)</enum><header>Required evaluations</header><text>The program shall, to the maximum extent practicable, evaluate the means of—</text> <subparagraph id="H3CB7039C07A84334B57D002F7973C68D"><enum>(A)</enum><text>reducing energy costs incurred in using arsenic removal technologies;</text></subparagraph> <subparagraph id="H6DA78933CB53429480A82C63F4687F79"><enum>(B)</enum><text>minimizing materials, operating, and maintenance costs; and</text></subparagraph> <subparagraph id="H2AEB2D3571E14822A476F40564F8A3A5"><enum>(C)</enum><text>minimizing any quantities of waste (especially hazardous waste) that result from use of arsenic removal technologies.</text></subparagraph></paragraph> <paragraph id="H82194BBA48584252A9A2FE1426A70069"><enum>(3)</enum><header>Peer review</header><text>Where applicable and reasonably available, projects undertaken under this subsection shall be peer-reviewed.</text></paragraph> <paragraph id="H87B0517DCE314C8C912E218CA28C5100"><enum>(4)</enum><header>Community water systems</header><text>In carrying out the program under this subsection, the Secretary, in coordination with the Administrator, shall—</text> <subparagraph id="H9E11E06774E74CB9A1F29BB5F000B0FB"><enum>(A)</enum><text>select projects involving a geographically and hydrologically diverse group of community water systems (as defined in section 1003 of the <act-name parsable-cite="PHSA">Public Health Service Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/300">42 U.S.C. 300</external-xref>)) and water chemistries, that have experienced technical or economic difficulties in providing drinking water with levels of arsenic at 10 parts-per-billion or lower, which projects shall be designed to develop innovative methods and means to deliver drinking water that contains less than 10 parts per billion of arsenic; and</text></subparagraph> <subparagraph id="HA61E9FF368A2478982FEC63E1196D8AE"><enum>(B)</enum><text>provide not less than 40 percent of all funds spent pursuant to this subsection to address the needs of, and in collaboration with, rural communities or Indian tribes.</text></subparagraph></paragraph> <paragraph id="HA1819DB110D34E5F819F0772685FEB7B"><enum>(5)</enum><header>Cost effectiveness</header><text>The Foundation shall create methods for determining cost effectiveness of arsenic removal technologies used in the program.</text></paragraph> <paragraph id="H1EBE0D77D7B94B65A550BC82DB9001F5"><enum>(6)</enum><header>Education, training, and Technology</header><text>The Foundation shall include education, training, and technology transfer as part of the program.</text></paragraph> <paragraph id="H771FC9959C844EFA91B2F0F07763A296"><enum>(7)</enum><header>Coordination</header><text>The Secretary shall consult with the Administrator to ensure that all activities conducted under the program are coordinated with the Agency and do not duplicate other programs in the Agency and other Federal agencies, State programs, and academia.</text></paragraph> <paragraph id="H113BAA966F5F46F18D74898F3E43B3E"><enum>(8)</enum><header>Reports</header><text>Not later than 1 year after the date of commencement of the program under this subsection, and once every year thereafter, the Secretary shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Environment and Public Works and the Committee on Energy and Natural Resources of the Senate a report on the results of the program under this subsection.</text></paragraph></subsection> <subsection id="H2B4D4AA80F2C4D94BB4FC1FAE61EC87"><enum>(e)</enum><header>Desalination Program</header> <paragraph id="HC41227A5DD01493000AC141DE9007901"><enum>(1)</enum><header>In general</header><text>The Secretary, in cooperation with the Commissioner of Reclamation of the Department of the Interior, shall carry out a program to conduct research and develop methods and means for desalination in accordance with the desalination technology progress plan developed under title II of the Energy and Water Development Appropriations Act, 2002 (115 Stat. 498), and described in Senate Report 107–39 under the heading <quote><header-in-text level="paragraph">water and related resources</header-in-text></quote> in the <quote><header-in-text level="subsection">Bureau of Reclamation</header-in-text></quote> section.</text></paragraph> <paragraph id="H3CFF628EB56045BA87CAB0A400434B82"><enum>(2)</enum><header>Requirements</header><text>The desalination program shall—</text> <subparagraph id="HB79EEDAA0FDC414E87CB9971B5C1EF33"><enum>(A)</enum><text>use the resources of the Department and the Department of the Interior that were involved in the development of the 2003 National Desalination and Water Purification Technology Roadmap for next-generation desalination technology;</text></subparagraph> <subparagraph id="HD1307089F8D040C8B980AC8DB63E7674"><enum>(B)</enum><text>focus on technologies that are appropriate for use in desalinating brackish groundwater, drinking water, wastewater and other saline water supplies, or disposal of residual brine or salt; and</text></subparagraph> <subparagraph id="H25D1DCC6FD9542A491D1AA7D7B2FFE1E"><enum>(C)</enum><text>consider the use of renewable energy sources.</text></subparagraph></paragraph> <paragraph id="HA1984254A205451DA1BB11A41A122B6"><enum>(3)</enum><header>Construction projects</header><text>Funds made available to carry out this subsection may be used for construction projects, including completion of the National Desalination Research Center for brackish groundwater and ongoing operational costs of this facility.</text></paragraph> <paragraph id="HFB11B40AB7794ECCAA1518B500DE5461"><enum>(4)</enum><header>Steering committee</header><text>The Secretary and the Commissioner of Reclamation of the Department of the Interior shall jointly establish a steering committee for activities conducted under this subsection. The steering committee shall be jointly chaired by 1 representative from the program and 1 representative from the Bureau of Reclamation.</text></paragraph></subsection> <subsection id="H6A61D4F9E1DB4971BCF800027259AE1B"><enum>(f)</enum><header>Water and Energy Sustainability Program</header> <paragraph id="H240B73E8CA75492DB5E77CB22B7923D9"><enum>(1)</enum><header>In general</header><text>The Secretary shall develop a program to identify methods, means, procedures, equipment, and improved technologies necessary to ensure that sufficient quantities of water are available to meet energy needs and sufficient energy is available to meet water needs.</text></paragraph> <paragraph id="HACE92B19C8864B6C807DBBAE7BD92D6E"><enum>(2)</enum><header>Assessments</header><text>In order to acquire information and avoid duplication, the Secretary shall work in collaboration with the Secretary of the Interior, the Army Corps of Engineers, the Administrator, the Secretary of Commerce, the Secretary of Defense, relevant State agencies, nongovernmental organizations, and academia, to assess—</text> <subparagraph id="HB90ADDF34AA94676B9B635F46F96D982"><enum>(A)</enum><text>future water resources needed to support energy development and production within the United States including water used for hydropower, and production of, or electricity generation by, hydrogen, biomass, fossil fuels, and nuclear fuel;</text></subparagraph> <subparagraph id="HBA88E0EF52894188996638475606E000"><enum>(B)</enum><text>future energy resources needed to support water purification and wastewater treatment, including desalination and water conveyance;</text></subparagraph> <subparagraph id="HC967AFB278DD4B16B1CE7FE6B85DFB01"><enum>(C)</enum><text>use of impaired and nontraditional water supplies for energy production other than oil and gas extraction;</text></subparagraph> <subparagraph id="H777CCA7D2BE246D79CA62F4CA32D0058"><enum>(D)</enum><text>technology and programs for improving water use efficiency; and</text></subparagraph> <subparagraph id="H2D04C2538506474A941C8829164C88E1"><enum>(E)</enum><text>technologies to reduce water use in energy development and production.</text></subparagraph></paragraph> <paragraph id="H3EC0067F16894F1AA35E3CFE52CDA265"><enum>(3)</enum><header>Roadmap; tools</header><text>The Secretary shall—</text> <subparagraph id="H18758F57F933480DAD43A69780ADE379"><enum>(A)</enum><text>develop a program plan and technology development roadmap for the Water and Energy Sustainability Program to identify scientific and technical requirements and activities that are required to support planning for energy sustainability under current and potential future conditions of water availability, use of impaired water for energy production and other uses, and reduction of water use in energy development and production;</text></subparagraph> <subparagraph id="H24099B2CE6204D71804C877563A9C527"><enum>(B)</enum><text>develop tools for national and local energy and water sustainability planning, including numerical models, decision analysis tools, economic analysis tools, databases, and planning methodologies and strategies;</text></subparagraph> <subparagraph id="H15DFA043796F44FFBAEADBD0025C004D"><enum>(C)</enum><text>implement at least 3 planning projects involving energy development or production that use the tools described in subparagraph (B) and assess the viability of those tools at the scale of river basins with at least 1 demonstration involving an international border; and</text></subparagraph> <subparagraph id="HEFCBD8D95AB2415086A9442C12646900"><enum>(D)</enum><text>transfer those tools to other Federal agencies, State agencies, nonprofit organizations, industry, and academia.</text></subparagraph></paragraph> <paragraph id="HD4E269E8DB494764AA6D935FC72DA15F"><enum>(4)</enum><header>Report</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to Congress a report on the Water and Energy Sustainability Program that—</text> <subparagraph id="HB8DEA29B7FAB480683E153F374EB6BE3"><enum>(A)</enum><text>includes the results of the assessment under paragraph (2) and the program plan and technology development roadmap; and</text></subparagraph> <subparagraph id="HB042C576870047AEB994E9FFD5CA114D"><enum>(B)</enum><text>identifies policy, legal, and institutional issues related to water and energy sustainability.</text></subparagraph></paragraph></subsection></section> <section id="HA634834E8F0A4B34BAEBB11F65238CBE"><enum>962.</enum><header>Nitrogen fixation</header><text display-inline="no-display-inline">The Secretary, acting through the Office of Science, shall support a program of research, development, demonstration, and commercial application on biological nitrogen fixation, including plant genomics research relevant to the development of commercial crop varieties with enhanced nitrogen fixation efficiency and ability.</text></section></subtitle> <subtitle id="HDD8EA20857794D16A019283B7192C12D"><enum>G</enum><header>Energy and environment</header> <section id="H2273024B09834F83A8231FB0278CE896"><enum>964.</enum><header>United States-Mexico energy Technology cooperation</header> <subsection id="H3C85EF1936D3414FA58920251041FAA9"><enum>(a)</enum><header>Program</header><text>The Secretary shall establish a research, development, demonstration, and commercial application program to be carried out in collaboration with entities in Mexico and the United States to promote energy efficient, environmentally sound economic development along the United States-Mexico border that minimizes public health risks from industrial activities in the border region.</text></subsection> <subsection id="H1972AD83F3864DB08C93B955EEA2EBF9"><enum>(b)</enum><header>Program management</header><text>The program under subsection (a) shall be managed by the Department of Energy Carlsbad Environmental Management Field Office.</text></subsection> <subsection id="H34E7D94D71BF44E490A8DD85D49C7E15"><enum>(c)</enum><header>Technology transfer</header><text>In carrying out projects and activities under this section, the Secretary shall assess the applicability of technology developed under the Environmental Management Science Program of the Department.</text></subsection> <subsection id="HECDF89AC092E48339FB242C338FCE24"><enum>(d)</enum><header>Intellectual property</header><text>In carrying out this section, the Secretary shall comply with the requirements of any agreement entered into between the United States and Mexico regarding intellectual property protection.</text></subsection> <subsection id="H444D0CB8D5B94D0B8358C0DE92743200"><enum>(e)</enum><header>Authorization of appropriations</header><text>The following sums are authorized to be appropriated to the Secretary to carry out activities under this section:</text> <paragraph id="HF57F1DEF22F84710B6EAA282218017E5"><enum>(1)</enum><text>For each of fiscal years 2004 and 2005, $5,000,000.</text></paragraph> <paragraph id="HBB6D5A6344BC4C7D9897D3AF47DAB972"><enum>(2)</enum><text>For each of fiscal years 2006, 2007, and 2008, $6,000,000.</text></paragraph></subsection></section> <section id="H5DDA05CE1A6C4DB8AC9E47A618B4A700"><enum>965.</enum><header>Western Hemisphere energy cooperation</header> <subsection id="H0D255854E1E44CE19495D8BAF0F30000"><enum>(a)</enum><header>Program</header><text>The Secretary shall carry out a program to promote cooperation on energy issues with Western Hemisphere countries.</text></subsection> <subsection id="HAE13296CDDD046DBB22BBC3E698D188D"><enum>(b)</enum><header>Activities</header><text>Under the program, the Secretary shall fund activities to work with Western Hemisphere countries to—</text> <paragraph id="H0E87124DD1BD4DE5BB6672BA35829002"><enum>(1)</enum><text>assist the countries in formulating and adopting changes in economic policies and other policies to—</text> <subparagraph id="H9D23A13BD80E491D8361D031846F9D26"><enum>(A)</enum><text>increase the production of energy supplies; and</text></subparagraph> <subparagraph id="H4EAEB0E87F8D453E9FBD64D2E05E7881"><enum>(B)</enum><text>improve energy efficiency; and</text></subparagraph></paragraph> <paragraph id="HA002AEA527124E0883BA5F000663F444"><enum>(2)</enum><text>assist in the development and transfer of energy supply and efficiency technologies that would have a beneficial impact on world energy markets.</text></paragraph></subsection> <subsection id="HB27C6B6D9AD748DF8EE8FCE820883D1F"><enum>(c)</enum><header>University participation</header><text>To the extent practicable, the Secretary shall carry out the program under this section with the participation of universities so as to take advantage of the acceptance of universities by Western Hemisphere countries as sources of unbiased technical and policy expertise when assisting the Secretary in—</text> <paragraph id="HB59962791A6B47C3B34EAD064DD6A44C"><enum>(1)</enum><text>evaluating new technologies;</text></paragraph> <paragraph id="HDDB69043047349E3AFD41441E156439D"><enum>(2)</enum><text>resolving technical issues;</text></paragraph> <paragraph id="H9D576340F5EE4C55B268BAB876A70083"><enum>(3)</enum><text>working with those countries in the development of new policies; and</text></paragraph> <paragraph id="HBB66AC47CE7942CC99443106F891DDC8"><enum>(4)</enum><text>training policymakers, particularly in the case of universities that involve the participation of minority students, such as Hispanic-serving institutions and Historically Black Colleges and Universities.</text></paragraph></subsection> <subsection id="H465AB1D8679840A7A75C4047D2DDD349"><enum>(d)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out this section—</text> <paragraph id="HF796AE28F7FF49B6875C8050F630C3A1"><enum>(1)</enum><text>$8,000,000 for fiscal year 2004;</text></paragraph> <paragraph id="HB48D03F54C5E499D8FD4AF39FCA1ACF3"><enum>(2)</enum><text>$10,000,000 for fiscal year 2005;</text></paragraph> <paragraph id="H65B2FD0E42F4404F8F6C4B022429B300"><enum>(3)</enum><text>$13,000,000 for fiscal year 2006;</text></paragraph> <paragraph id="HD6B0CD5386154BABA5333FDD6DDD7BA8"><enum>(4)</enum><text>$16,000,000 for fiscal year 2007; and</text></paragraph> <paragraph id="H7930815BDBAF4F2F82157B523B705319"><enum>(5)</enum><text>$19,000,000 for fiscal year 2008.</text></paragraph></subsection></section> <section id="H569174D73F104A059D2E5F1999BC6176"><enum>966.</enum><header>Waste reduction and use of alternatives</header> <subsection id="H69B1F657140D4D528557417544118046"><enum>(a)</enum><header>Grant authority</header><text>The Secretary may make a single grant to a qualified institution to examine and develop the feasibility of burning post-consumer carpet in cement kilns as an alternative energy source. The purposes of the grant shall include determining—</text> <paragraph id="HEE7E130D93ED4BCEB7E189A1B500E978"><enum>(1)</enum><text>how post-consumer carpet can be burned without disrupting kiln operations;</text></paragraph> <paragraph id="HE9014DCC052E40E0A0837DFE7BEB9376"><enum>(2)</enum><text>the extent to which overall kiln emissions may be reduced;</text></paragraph> <paragraph id="HCC8D062E6D8041139C82D1DE5C7B6402"><enum>(3)</enum><text>the emissions of air pollutants and other relevant environmental impacts; and</text></paragraph> <paragraph id="H7910380A40664DB7A344622DC72CC382"><enum>(4)</enum><text>how this process provides benefits to both cement kiln operations and carpet suppliers.</text></paragraph></subsection> <subsection id="HF7F02705380A4954A9A0EF746F20BFB6"><enum>(b)</enum><header>Qualified institution</header><text>For the purposes of subsection (a), a qualified institution is a research-intensive institution of higher education with demonstrated expertise in the fields of fiber recycling and logistical modeling of carpet waste collection and preparation.</text></subsection> <subsection id="H8DEE16D4A41446389F76943DC609EA1B"><enum>(c)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary for carrying out this section $500,000.</text></subsection></section> <section id="H6E98D2AD2E814082A48D327730A110DA"><enum>967.</enum><header>Report on fuel cell test Center</header> <subsection id="H15B102CD6C6644B2BBE32F58470099E2"><enum>(a)</enum><header>Report</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary shall transmit to Congress a report on the results of a study of the establishment of a test center for next-generation fuel cells at an institution of higher education that has available a continuous source of hydrogen and access to the electric transmission grid. Such report shall include a conceptual design for such test center and a projection of the costs of establishing the test center.</text></subsection> <subsection id="HC1A21577053640FC922818E9AADE4BFA"><enum>(b)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary for carrying out this section $500,000.</text></subsection></section> <section id="H6ADB4B79FFCB409F806041241585032D"><enum>968.</enum><header>Arctic Engineering Research Center</header> <subsection id="HD55EAD33936945008BC0D69D36AACBDA"><enum>(a)</enum><header>In general</header><text>The Secretary of Energy (referred to in this section as the <quote>Secretary</quote>) in consultation with the Secretary of Transportation and the United States Arctic Research Commission shall provide annual grants to a university located adjacent to the Arctic Energy Office of the Department of Energy, to establish and operate a university research center to be headquartered in Fairbanks and to be known as the <quote>Arctic Engineering Research Center</quote> (referred to in this section as the <quote>Center</quote>).</text></subsection> <subsection id="HD0A4DB03715348B2902E72EB4924E115"><enum>(b)</enum><header>Purpose</header><text>The purpose of the Center shall be to conduct research on, and develop improved methods of, construction and use of materials to improve the overall performance of roads, bridges, residential, commercial, and industrial structures, and other infrastructure in the Arctic region, with an emphasis on developing—</text> <paragraph id="H8F392B7F9D1745718EF1F88D00AE2CA0"><enum>(1)</enum><text>new construction techniques for roads, bridges, rail, and related transportation infrastructure and residential, commercial, and industrial infrastructure that are capable of withstanding the Arctic environment and using limited energy resources as efficiently as possible;</text></paragraph> <paragraph id="H05DF55642EFC4B76B2EC24F97463E6B9"><enum>(2)</enum><text>technologies and procedures for increasing road, bridge, rail, and related transportation infrastructure and residential, commercial, and industrial infrastructure safety, reliability, and integrity in the Arctic region;</text></paragraph> <paragraph id="H838C5C4D92F74B8DB878CCE084ED6579"><enum>(3)</enum><text>new materials and improving the performance and energy efficiency of existing materials for the construction of roads, bridges, rail, and related transportation infrastructure and residential, commercial, and industrial infrastructure in the Arctic region; and</text></paragraph> <paragraph id="H0D3BFA288BF748A2B10041511445BB93"><enum>(4)</enum><text>recommendations for new local, regional, and State permitting and building codes to ensure transportation and building safety and efficient energy use when constructing, using, and occupying such infrastructure in the Arctic region.</text></paragraph></subsection> <subsection id="H13F34A244ACA4351979792C3DE6F426C"><enum>(c)</enum><header>Objectives</header><text>The Center shall carry out—</text> <paragraph id="H5ADAC7FE36FE44638B4500C24120DA3F"><enum>(1)</enum><text>basic and applied research in the subjects described in subsection (b), the products of which shall be judged by peers or other experts in the field to advance the body of knowledge in road, bridge, rail, and infrastructure engineering in the Arctic region; and</text></paragraph> <paragraph id="H5888782EFD724D838232FEEDB9865BC3"><enum>(2)</enum><text>an ongoing program of technology transfer that makes research results available to potential users in a form that can be implemented.</text></paragraph></subsection> <subsection id="HB07B24992FA94AE484087396DDA29906"><enum>(d)</enum><header>Amount of grant</header><text>For each of fiscal years 2004 through 2009, the Secretary shall provide a grant in the amount of $3,000,000 to the institution specified in subsection (a) to carry out this section.</text></subsection> <subsection id="H1EFA549D22BE4EB595373EFD8BAE7C"><enum>(e)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out this section $3,000,000 for each of fiscal years 2004 through 2009.</text></subsection></section> <section id="HDAE1303CB64B48798D030060BD6125AF"><enum>969.</enum><header>Barrow Geophysical Research Facility</header> <subsection id="H7981731CCC984369BDE4D09D43052E77"><enum>(a)</enum><header>Establishment</header><text>The Secretary of Commerce, in consultation with the Secretaries of Energy and the Interior, the Director of the National Science Foundation, and the Administrator of the Environmental Protection Agency, shall establish a joint research facility in Barrow, Alaska, to be known as the <quote>Barrow Geophysical Research Facility</quote>, to support scientific research activities in the Arctic.</text></subsection> <subsection id="HED32A862EB69403B90B2C383F471B3D"><enum>(b)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretaries of Commerce, Energy, and the Interior, the Director of the National Science Foundation, and the Administrator of the Environmental Protection Agency for the planning, design, construction, and support of the Barrow Geophysical Research Facility $61,000,000.</text></subsection></section> <section id="H4C13285E8D084A79872C4008B551DF14"><enum>970.</enum><header>Western Michigan demonstration project</header><text display-inline="no-display-inline">The Administrator of the Environmental Protection Agency, in consultation with the State of Michigan and affected local officials, shall conduct a demonstration project to address the effect of transported ozone and ozone precursors in Southwestern Michigan. The demonstration program shall address projected nonattainment areas in Southwestern Michigan that include counties with design values for ozone of less than .095 based on years 2000 to 2002 or the most current 3-year period of air quality data. The Administrator shall assess any difficulties such areas may experience in meeting the 8 hour national ambient air quality standard for ozone due to the effect of transported ozone or ozone precursors into the areas. The Administrator shall work with State and local officials to determine the extent of ozone and ozone precursor transport, to assess alternatives to achieve compliance with the 8 hour standard apart from local controls, and to determine the timeframe in which such compliance could take place. The Administrator shall complete this demonstration project no later than 2 years after the date of enactment of this section and shall not impose any requirement or sanction that might otherwise apply during the pendency of the demonstration project.</text></section></subtitle> <subtitle id="H6EFE699CB76943CB86DC3C4333B2FE8F"><enum>H</enum><header>Management</header> <section id="H103FAC1629514D51A8D869A0F29F005F"><enum>971.</enum><header>Availability of funds</header><text display-inline="no-display-inline">Funds authorized to be appropriated to the Department under this title shall remain available until expended.</text></section> <section id="HF272CC96CC7048CEA0E0AE1FB1D0801"><enum>972.</enum><header>Cost sharing</header> <subsection id="HDE6D33D70F0849B18850EE6ECD4E0952"><enum>(a)</enum><header>Research and development</header><text>Except as otherwise provided in this title, for research and development programs carried out under this title the Secretary shall require a commitment from non-Federal sources of at least 20 percent of the cost of the project. The Secretary may reduce or eliminate the non-Federal requirement under this subsection if the Secretary determines that the research and development is of a basic or fundamental nature or involves technical analyses or educational activities.</text></subsection> <subsection id="H679766E086634D8C9B2E85A0C1B620E3"><enum>(b)</enum><header>Demonstration and commercial application</header><text>Except as otherwise provided in this title, the Secretary shall require at least 50 percent of the costs directly and specifically related to any demonstration or commercial application project under this title to be provided from non-Federal sources. The Secretary may reduce the non-Federal requirement under this subsection if the Secretary determines that the reduction is necessary and appropriate considering the technological risks involved in the project and is necessary to meet the objectives of this title.</text></subsection> <subsection id="HD831D90E05F0462B8F35D92D249D1DC0"><enum>(c)</enum><header>Calculation of amount</header><text>In calculating the amount of the non-Federal commitment under subsection (a) or (b), the Secretary may include personnel, services, equipment, and other resources.</text></subsection> <subsection id="HC1FC0A719FBE4A069DE4ACA07F17E6E6"><enum>(d)</enum><header>Size of non-federal share</header><text>The Secretary may consider the size of the non-Federal share in selecting projects.</text></subsection></section> <section id="HEF7A85E5C536497A0082A196F2373105"><enum>973.</enum><header>Merit review of proposals</header><text display-inline="no-display-inline">Awards of funds authorized under this title shall be made only after an impartial review of the scientific and technical merit of the proposals for such awards has been carried out by or for the Department.</text></section> <section id="HFEB257934C09490DA222A9E541D15B85"><enum>974.</enum><header>External technical review of departmental programs</header> <subsection id="H7210CC4858A6426DB51B188EB4C73C7"><enum>(a)</enum><header>National energy research and development advisory boards</header> <paragraph id="H7DD697F44D61448FBFFA8A98564592E"><enum>(1)</enum><header>In general</header><text>The Secretary shall establish 1 or more advisory boards to review Department research, development, demonstration, and commercial application programs in energy efficiency, renewable energy, nuclear energy, and fossil energy.</text></paragraph> <paragraph id="H34DE53C3E92B40709ED22EF1B21465D"><enum>(2)</enum><header>Existing advisory boards</header><text>The Secretary may designate an existing advisory board within the Department to fulfill the responsibilities of an advisory board under this subsection, and may enter into appropriate arrangements with the National Academy of Sciences to establish such an advisory board.</text></paragraph></subsection> <subsection id="H0EC9FAFFC4BF459B898D6DE677DAFBE"><enum>(b)</enum><header>Office of Science advisory committees</header> <paragraph id="H461258D73B464ECEAC1B3283C2485D81"><enum>(1)</enum><header>Utilization of existing committees</header><text>The Secretary shall continue to use the scientific program advisory committees chartered under the <act-name parsable-cite="FACA">Federal Advisory Committee Act</act-name> (5 U.S.C. App.) by the Office of Science to oversee research and development programs under that Office.</text></paragraph> <paragraph id="H5C0F444ED12E43F987575092F852E3F1"><enum>(2)</enum><header>Science Advisory Committee</header> <subparagraph id="H80D59C9A071741C4A11600F9576365E5"><enum>(A)</enum><header>Establishment</header><text>There shall be in the Office of Science a Science Advisory Committee that includes the chairs of each of the advisory committees described in paragraph (1).</text></subparagraph> <subparagraph id="H0AB524CB721C4692B08869939D995000"><enum>(B)</enum><header>Responsibilities</header><text>The Science Advisory Committee shall—</text> <clause id="H9DA608E3E2364B71AE829CEE2546E0DA"><enum>(i)</enum><text>serve as the science advisor to the Director of the Office of Science;</text></clause> <clause id="H95E9F646FD4645339B2556F3D3433723"><enum>(ii)</enum><text>advise the Director with respect to the well-being and management of the National Laboratories and single-purpose research facilities;</text></clause> <clause id="H793E6A337F4E4FC5BC1649E6383335A9"><enum>(iii)</enum><text>advise the Director with respect to education and workforce training activities required for effective short-term and long-term basic and applied research activities of the Office of Science; and</text></clause> <clause id="HC7329E985D044EC1ABD203C06633BBE5"><enum>(iv)</enum><text>advise the Director with respect to the well being of the university research programs supported by the Office of Science.</text></clause></subparagraph></paragraph></subsection> <subsection id="HD00CBDEE92284CF29073CCDD8100F5E4"><enum>(c)</enum><header>Membership</header><text>Each advisory board under this section shall consist of persons with appropriate expertise representing a diverse range of interests.</text></subsection> <subsection id="HD1A434E79DD7478B87BE4E721CC4A300"><enum>(d)</enum><header>Meetings and purposes</header><text>Each advisory board under this section shall meet at least semiannually to review and advise on the progress made by the respective research, development, demonstration, and commercial application program or programs. The advisory board shall also review the measurable cost and performance-based goals for such programs as established under section 901(b), and the progress on meeting such goals.</text></subsection> <subsection id="H10B0DDD7B05B4F2DA758A1B61995FCF4"><enum>(e)</enum><header>Periodic reviews and assessments</header><text>The Secretary shall enter into appropriate arrangements with the National Academy of Sciences to conduct periodic reviews and assessments of the programs authorized by this title, the measurable cost and performance-based goals for such programs as established under section 901(b), if any, and the progress on meeting such goals. Such reviews and assessments shall be conducted every 5 years, or more often as the Secretary considers necessary, and the Secretary shall transmit to Congress reports containing the results of all such reviews and assessments.</text></subsection></section> <section id="H07B0317E5E304755992CF0A5FF6EF8C0"><enum>975.</enum><header>Improved coordination of Technology transfer activities</header> <subsection id="HC74FBF67CFC04613B171FC16D7BEA0DC"><enum>(a)</enum><header>Technology Transfer Coordinator</header><text>The Secretary shall designate a Technology Transfer Coordinator to perform oversight of and policy development for technology transfer activities at the Department. The Technology Transfer Coordinator shall—</text> <paragraph id="HBCBA8DA895BB48C99E69DAD78DBB28B"><enum>(1)</enum><text>coordinate the activities of the Technology Transfer Working Group;</text></paragraph> <paragraph id="HAA8A229D280049D9AD846536B326B808"><enum>(2)</enum><text>oversee the expenditure of funds allocated to the Technology Transfer Working Group; and</text></paragraph> <paragraph id="H7C08818752ED43D2BA2FBED367937C08"><enum>(3)</enum><text>coordinate with each technology partnership ombudsman appointed under section 11 of the Technology Transfer Commercialization Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/42/7261c">42 U.S.C. 7261c</external-xref>).</text></paragraph></subsection> <subsection id="H9A1262BC26A84667B0DBE8553E4521DC"><enum>(b)</enum><header>Technology Transfer Working Group</header><text>The Secretary shall establish a Technology Transfer Working Group, which shall consist of representatives of the National Laboratories and single-purpose research facilities, to—</text> <paragraph id="H9641AC57D0A648CFA300A28D2F354001"><enum>(1)</enum><text>coordinate technology transfer activities occurring at National Laboratories and single-purpose research facilities;</text></paragraph> <paragraph id="H59AB0B498D41442300D1753FC6CB88FD"><enum>(2)</enum><text>exchange information about technology transfer practices, including alternative approaches to resolution of disputes involving intellectual property rights and other technology transfer matters; and</text></paragraph> <paragraph id="HB019ADD23A314C9B8CAB96C43D00B014"><enum>(3)</enum><text>develop and disseminate to the public and prospective technology partners information about opportunities and procedures for technology transfer with the Department, including those related to alternative approaches to resolution of disputes involving intellectual property rights and other technology transfer matters.</text></paragraph></subsection> <subsection id="H7E14A1896A4347A2B5989D3D00AB97A9"><enum>(c)</enum><header>Technology transfer responsibility</header><text>Nothing in this section shall affect the technology transfer responsibilities of Federal employees under the Stevenson-Wydler Technology Innovation Act of 1980 (<external-xref legal-doc="usc" parsable-cite="usc/15/3701">15 U.S.C. 3701 et seq.</external-xref>).</text></subsection></section> <section id="H76FDAB9D815545C2915700014CCDA900"><enum>976.</enum><header>Federal laboratory educational partners</header> <subsection id="HF9D5EF35586F4FE4BDFB0572A416A4EE"><enum>(a)</enum><header>Distribution of royalties received by Federal agencies</header><text>Section 14(a)(1)(B)(v) of the Stevenson-Wydler Technology Innovation Act of 1980 (<external-xref legal-doc="usc" parsable-cite="usc/15/3710c">15 U.S.C. 3710c(a)(1)(B)(v)</external-xref>), is amended to read as follows:</text> <quoted-block id="HD2AD07BAB628491B8920FD2C00E197CD"> <clause id="H6DBBE9747BCC478F9DD64FFCF636D3C6" indent="up1"><enum>(v)</enum><text>for scientific research and development and for educational assistance and other purposes consistent with the missions and objectives of the agency and the laboratory.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H2486900D24CA4265B99D569D5E396233"><enum>(b)</enum><header>Cooperative research and development agreements</header><text>Section 12(b)(5)(C) of the Stevenson-Wydler Technology Innovation Act of 1980 (<external-xref legal-doc="usc" parsable-cite="usc/15/3710a">15 U.S.C. 3710a(b)(5)(C)</external-xref>) is amended to read as follows:</text> <quoted-block id="HB8332574543C41E8A6B008F007F37CB"> <subclause indent="up3" id="HB34E5EBA21DE4FAFA41181C420543B3B"><enum>(C)</enum><text>for scientific research and development and for educational assistance consistent with the missions and objectives of the agency and the laboratory.</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="HEFE365F48A1E40E4897224254ECAAB37"><enum>977.</enum><header>Interagency cooperation</header><text display-inline="no-display-inline">The Secretary shall enter into discussions with the Administrator of the National Aeronautics and Space Administration with the goal of reaching an interagency working agreement between the 2 agencies that would make the National Aeronautics and Space Administration’s expertise in energy, gained from its existing and planned programs, more readily available to the relevant research, development, demonstration, and commercial applications programs of the Department. Technologies to be discussed should include the National Aeronautics and Space Administration’s modeling, research, development, testing, and evaluation of new energy technologies, including solar, wind, fuel cells, and hydrogen storage and distribution.</text></section> <section id="H866FD2B5991E4551B665565B04AFC45B"><enum>978.</enum><header>Technology Infrastructure Program</header> <subsection id="H7F24CAF0DA0A45F5900116BD29004C15"><enum>(a)</enum><header>Establishment</header><text>The Secretary shall establish a Technology Infrastructure Program in accordance with this section.</text></subsection> <subsection id="H0BFDE35713944C04AE93D35FE69B69D9"><enum>(b)</enum><header>Purpose</header><text>The purpose of the Technology Infrastructure Program shall be to improve the ability of National Laboratories and single-purpose research facilities to support departmental missions by—</text> <paragraph id="H128384F4067C4EA28D9CAF0087AD69E3"><enum>(1)</enum><text>stimulating the development of technology clusters that can support departmental missions at the National Laboratories or single-purpose research facilities;</text></paragraph> <paragraph id="HA3ACA5CF295044E8A9DDBC8BACD94836"><enum>(2)</enum><text>improving the ability of National Laboratories and single-purpose research facilities to leverage and benefit from commercial research, technology, products, processes, and services; and</text></paragraph> <paragraph id="HADE923A41545467E94D1BB7DCDB2006B"><enum>(3)</enum><text>encouraging the exchange of scientific and technological expertise between National Laboratories or single-purpose research facilities and entities that can support departmental missions at the National Laboratories or single-purpose research facilities, such as institutions of higher education; technology-related business concerns; nonprofit institutions; and agencies of State, tribal, or local governments.</text></paragraph></subsection> <subsection id="H9119E09D83FA442481BBCB157B5CD9E4"><enum>(c)</enum><header>Projects</header><text>The Secretary shall authorize the Director of each National Laboratory or single-purpose research facility to implement the Technology Infrastructure Program at such National Laboratory or facility through projects that meet the requirements of subsections (d) and (e).</text></subsection> <subsection id="HAE89D62E7F0348FEA07BA35CC1F504B6"><enum>(d)</enum><header>Program requirements</header><text>Each project funded under this section shall meet the following requirements:</text> <paragraph id="H847F53E3E3564A88A8DE2E2C4E3E6F06"><enum>(1)</enum><text>Each project shall include at least 1 of each of the following entities: a business; an institution of higher education; a nonprofit institution; and an agency of a State, local, or tribal government.</text></paragraph> <paragraph id="H61D483C4475E4BC6B18F8200699F0090"><enum>(2)</enum><text>Not less than 50 percent of the costs of each project funded under this section shall be provided from non-Federal sources. The calculation of costs paid by the non-Federal sources to a project shall include cash, personnel, services, equipment, and other resources expended on the project after start of the project. Independent research and development expenses of Government contractors that qualify for reimbursement under section 31.205–18(e) of the Federal Acquisition Regulation issued pursuant to section 25(c)(1) of the Office of Federal Procurement Policy Act (<external-xref legal-doc="usc" parsable-cite="usc/41/421">41 U.S.C. 421(c)(1)</external-xref>) may be credited toward costs paid by non-Federal sources to a project, if the expenses meet the other requirements of this section.</text></paragraph> <paragraph id="H04F0F142F5FA49889DEAC5BCDE00C9C1"><enum>(3)</enum><text>All projects under this section shall be competitively selected using procedures determined by the Secretary.</text></paragraph> <paragraph id="H4E689C557EB2445C9776017BD290094B"><enum>(4)</enum><text>Any participant that receives funds under this section may use generally accepted accounting principles for maintaining accounts, books, and records relating to the project.</text></paragraph> <paragraph id="HD832DCAEC5444199A2E39B07B6FDA900"><enum>(5)</enum><text>No Federal funds shall be made available under this section for construction or any project for more than 5 years.</text></paragraph></subsection> <subsection id="HA10FA26A0CD94D0D89E7C8C69BAE523C"><enum>(e)</enum><header>Selection criteria</header> <paragraph id="HA4FBCF29A7C14D2DA86EECBEAC46AF9E"><enum>(1)</enum><header>In general</header><text>The Secretary shall allocate funds under this section only if the Director of the National Laboratory or single-purpose research facility managing the project determines that the project is likely to improve the ability of the National Laboratory or single-purpose research facility to achieve technical success in meeting departmental missions.</text></paragraph> <paragraph id="H68AEC21FD0D94F8CA0036457F6B2B7F4"><enum>(2)</enum><header>Criteria</header><text>The Secretary shall consider the following criteria in selecting a project to receive Federal funds:</text> <subparagraph id="HE4BFDED6027E4307965FD4BABF406873"><enum>(A)</enum><text>The potential of the project to promote the development of a commercially sustainable technology cluster following the period of Department investment, which will derive most of the demand for its products or services from the private sector, and which will support departmental missions at the participating National Laboratory or single-purpose research facility.</text></subparagraph> <subparagraph id="HFA1B58C666FD435D823896F44BE3A173"><enum>(B)</enum><text>The potential of the project to promote the use of commercial research, technology, products, processes, and services by the participating National Laboratory or single-purpose research facility to achieve its mission or the commercial development of technological innovations made at the participating National Laboratory or single-purpose research facility.</text></subparagraph> <subparagraph id="HF31FB3B6AB5143189F3DCC70639E7250"><enum>(C)</enum><text>The extent to which the project involves a wide variety and number of institutions of higher education, nonprofit institutions, and technology-related business concerns that can support the missions of the participating National Laboratory or single-purpose research facility and that will make substantive contributions to achieving the goals of the project.</text></subparagraph> <subparagraph id="HACBA80B28F75485F92E99073E6A7D3DC"><enum>(D)</enum><text>The extent to which the project focuses on promoting the development of technology-related business concerns that are small businesses or involves such small businesses substantively in the project.</text></subparagraph> <subparagraph id="HD37C2E2B55FF46EBB5F3E2CDFE73D73E"><enum>(E)</enum><text>Such other criteria as the Secretary determines to be appropriate.</text></subparagraph></paragraph></subsection> <subsection id="HDDD43A2FE96F43328D464B0000CA448"><enum>(f)</enum><header>Allocation</header><text>In allocating funds for projects approved under this section, the Secretary shall provide—</text> <paragraph id="HFE06082467C2459E9E6DADB376EB1DF5"><enum>(1)</enum><text>the Federal share of the project costs; and</text></paragraph> <paragraph id="H2A1EFBF080CF4894A5558299A5D1DC15"><enum>(2)</enum><text>additional funds to the National Laboratory or single-purpose research facility managing the project to permit the National Laboratory or single-purpose research facility to carry out activities relating to the project, and to coordinate such activities with the project.</text></paragraph></subsection> <subsection id="H2C4428CF48D84955BB62848DA9F635D4"><enum>(g)</enum><header>Report to Congress</header><text>Not later than July 1, 2006, the Secretary shall report to Congress on whether the Technology Infrastructure Program should be continued and, if so, how the program should be managed.</text></subsection> <subsection id="H238109276CAF43719813792F50AA4804"><enum>(h)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H51A3B824E2A743E39EDF7D1FD1923288"><enum>(1)</enum><header>Technology cluster</header><text>The term <term>technology cluster</term> means a concentration of technology-related business concerns, institutions of higher education, or nonprofit institutions that reinforce each other’s performance in the areas of technology development through formal or informal relationships.</text></paragraph> <paragraph id="H9B5595C33CB347D39104BB7D00B08E69"><enum>(2)</enum><header>Technology-related business concern</header><text>The term <term>technology-related business concern</term> means a for-profit corporation, company, association, firm, partnership, or small business concern that conducts scientific or engineering research; develops new technologies; manufactures products based on new technologies; or performs technological services.</text></paragraph></subsection> <subsection id="HDE4AA891C3954142B172004F00887ECC"><enum>(i)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary for activities under this section $10,000,000 for each of fiscal years 2004, 2005, and 2006.</text></subsection></section> <section id="H3062004B79524C9483F42B38547100F4"><enum>979.</enum><header>Reprogramming</header> <subsection id="H131DDC3B55964079B824EAF916DFE44E"><enum>(a)</enum><header>Distribution report</header><text>Not later than 60 days after the date of the enactment of an Act appropriating amounts authorized under this title, the Secretary shall transmit to the appropriate authorizing committees of Congress a report explaining how such amounts will be distributed among the authorizations contained in this title.</text></subsection> <subsection id="H6D64B859D0A64F6BA7B44518C347792E"><enum>(b)</enum><header>Prohibition</header> <paragraph id="H440DCF7D09D94875A06536F6703900A3"><enum>(1)</enum><header>In general</header><text>No amount identified under subsection (a) shall be reprogrammed if such reprogramming would result in an obligation which changes an individual distribution required to be reported under subsection (a) by more than 5 percent unless the Secretary has transmitted to the appropriate authorizing committees of Congress a report described in subsection (c) and a period of 30 days has elapsed after such committees receive the report.</text></paragraph> <paragraph id="HD545AB732EB94E999F65DA39E63DDFB"><enum>(2)</enum><header>Computation</header><text>In the computation of the 30-day period described in paragraph (1), there shall be excluded any day on which either House of Congress is not in session because of an adjournment of more than 3 days to a day certain.</text></paragraph></subsection> <subsection id="HE870B2AA020444EBBE1E35B0CBDEB39C"><enum>(c)</enum><header>Reprogramming report</header><text>A report referred to in subsection (b)(1) shall contain a full and complete statement of the action proposed to be taken and the facts and circumstances relied on in support of the proposed action.</text></subsection></section> <section id="HE1D774B277DF47BE86A5A800C9110056"><enum>980.</enum><header>Construction with other laws</header><text display-inline="no-display-inline">Except as otherwise provided in this title, the Secretary shall carry out the research, development, demonstration, and commercial application programs, projects, and activities authorized by this title in accordance with the applicable provisions of the <act-name parsable-cite="AEA54">Atomic Energy Act of 1954</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/2011">42 U.S.C. 2011 et seq.</external-xref>), the Federal Nonnuclear Research and Development Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/42/5901">42 U.S.C. 5901 et seq.</external-xref>), the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13201">42 U.S.C. 13201 et seq.</external-xref>), the Stevenson-Wydler Technology Innovation Act of 1980 (<external-xref legal-doc="usc" parsable-cite="usc/15/3701">15 U.S.C. 3701 et seq.</external-xref>), <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/35/18">chapter 18</external-xref> of title 35, United States Code (commonly referred to as the Bayh-Dole Act), and any other Act under which the Secretary is authorized to carry out such activities.</text></section> <section id="H81A9E753B7CD4AD1B48015C89F2E281D"><enum>981.</enum><header>Report on research and development Program evaluation methodologies</header><text display-inline="no-display-inline">Not later than 180 days after the date of enactment of this Act, the Secretary shall enter into appropriate arrangements with the National Academy of Sciences to investigate and report on the scientific and technical merits of any evaluation methodology currently in use or proposed for use in relation to the scientific and technical programs of the Department by the Secretary or other Federal official. Not later than 6 months after receiving the report of the National Academy, the Secretary shall submit such report to Congress, along with any other views or plans of the Secretary with respect to the future use of such evaluation methodology.</text></section> <section id="H4BB6789FBDBC4CF78400851EF4B30692"><enum>982.</enum><header>Department of Energy Science and Technology Scholarship Program</header> <subsection id="H95DF081968924F979F109EC559574E68"><enum>(a)</enum><header>Establishment of Program</header> <paragraph id="HB58125794E4D406494009E0089F854CE"><enum>(1)</enum><header>In general</header><text>The Secretary is authorized to establish a Department of Energy Science and Technology Scholarship Program to award scholarships to individuals that is designed to recruit and prepare students for careers in the Department.</text></paragraph> <paragraph id="H892F9ACBE31D4918A28F91EB21A8B45E"><enum>(2)</enum><header>Competitive process</header><text>Individuals shall be selected to receive scholarships under this section through a competitive process primarily on the basis of academic merit, with consideration given to financial need and the goal of promoting the participation of individuals identified in section 33 or 34 of the Science and Engineering Equal Opportunities Act (42 U.S.C. 1885a or 1885b).</text></paragraph> <paragraph id="HF9E7C42910DE4C62A33EB62DB3C08370"><enum>(3)</enum><header>Service agreements</header><text>To carry out the Program the Secretary shall enter into contractual agreements with individuals selected under paragraph (2) under which the individuals agree to serve as full-time employees of the Department, for the period described in subsection (f)(1), in positions needed by the Department and for which the individuals are qualified, in exchange for receiving a scholarship.</text></paragraph></subsection> <subsection id="H9EEBD2120BAC44C685C15E90C3AF7D09"><enum>(b)</enum><header>Scholarship eligibility</header><text>In order to be eligible to participate in the Program, an individual must—</text> <paragraph id="H8220CAF86376442E83C223901C14148"><enum>(1)</enum><text>be enrolled or accepted for enrollment as a full-time student at an institution of higher education in an academic program or field of study described in the list made available under subsection (d);</text></paragraph> <paragraph id="H9F5C326762554E5787CE0060386634BD"><enum>(2)</enum><text>be a United States citizen; and</text></paragraph> <paragraph id="HEDA8C9E698354C07A7251DDF0268072"><enum>(3)</enum><text>at the time of the initial scholarship award, not be a Federal employee as defined in <external-xref legal-doc="usc" parsable-cite="usc/5/2105">section 2105</external-xref> of title 5 of the United States Code.</text></paragraph></subsection> <subsection id="H82D344CB4EF5442BAA40A4B719BCF39E"><enum>(c)</enum><header>Application required</header><text>An individual seeking a scholarship under this section shall submit an application to the Secretary at such time, in such manner, and containing such information, agreements, or assurances as the Secretary may require.</text></subsection> <subsection id="H45541EAD805E4D269755C71531745D09"><enum>(d)</enum><header>Eligible academic programs</header><text>The Secretary shall make publicly available a list of academic programs and fields of study for which scholarships under the Program may be utilized, and shall update the list as necessary.</text></subsection> <subsection id="H3EF43CCDCCAD4156A4AA565262DAFC28"><enum>(e)</enum><header>Scholarship requirement</header> <paragraph id="HC81EEBA8E0C04EAA9F1006CB6C007E1F"><enum>(1)</enum><header>In general</header><text>The Secretary may provide a scholarship under the Program for an academic year if the individual applying for the scholarship has submitted to the Secretary, as part of the application required under subsection (c), a proposed academic program leading to a degree in a program or field of study on the list made available under subsection (d).</text></paragraph> <paragraph id="HF774A056F9ED4F96BCB26900C5054C47"><enum>(2)</enum><header>Duration of eligibility</header><text>An individual may not receive a scholarship under this section for more than 4 academic years, unless the Secretary grants a waiver.</text></paragraph> <paragraph id="HF2ADEF3593D143658BDB2F44C58EE67D"><enum>(3)</enum><header>Scholarship amount</header><text>The dollar amount of a scholarship under this section for an academic year shall be determined under regulations issued by the Secretary, but shall in no case exceed the cost of attendance.</text></paragraph> <paragraph id="H3B0FD7ECB3DE4C079CBE332FB9D12CA7"><enum>(4)</enum><header>Authorized uses</header><text>A scholarship provided under this section may be expended for tuition, fees, and other authorized expenses as established by the Secretary by regulation.</text></paragraph> <paragraph id="HF5E909A87FD843C38666DE8383B243F6"><enum>(5)</enum><header>Contracts regarding direct payments to institutions</header><text>The Secretary may enter into a contractual agreement with an institution of higher education under which the amounts provided for a scholarship under this section for tuition, fees, and other authorized expenses are paid directly to the institution with respect to which the scholarship is provided.</text></paragraph></subsection> <subsection id="H4FA84ADCA48A46D8805F153482296FBE"><enum>(f)</enum><header>Period of obligated service</header> <paragraph id="H8E5856B07CD14330AC226918F2BD691C"><enum>(1)</enum><header>Duration of service</header><text>The period of service for which an individual shall be obligated to serve as an employee of the Department is, except as provided in subsection (h)(2), 24 months for each academic year for which a scholarship under this section is provided.</text></paragraph> <paragraph id="HD8522BC1344349D08892A91815F0E7B9"><enum>(2)</enum><header>Schedule for service</header> <subparagraph id="HBA72677279F64C3193E0FCEE81AE9302"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), obligated service under paragraph (1) shall begin not later than 60 days after the individual obtains the educational degree for which the scholarship was provided.</text></subparagraph> <subparagraph id="HE0701E0A6C974157B884A952D61F6D2E"><enum>(B)</enum><header>Deferral</header><text>The Secretary may defer the obligation of an individual to provide a period of service under paragraph (1) if the Secretary determines that such a deferral is appropriate. The Secretary shall prescribe the terms and conditions under which a service obligation may be deferred through regulation.</text></subparagraph></paragraph></subsection> <subsection id="H9CFC35504D544A64ABE4C2842EB894C4"><enum>(g)</enum><header>Penalties for breach of scholarship agreement</header> <paragraph id="HDDBA3A2A0C6F4671B9E0CC3BBBE148"><enum>(1)</enum><header>Failure to complete academic training</header><text>Scholarship recipients who fail to maintain a high level of academic standing, as defined by the Secretary by regulation, who are dismissed from their educational institutions for disciplinary reasons, or who voluntarily terminate academic training before graduation from the educational program for which the scholarship was awarded, shall be in breach of their contractual agreement and, in lieu of any service obligation arising under such agreement, shall be liable to the United States for repayment not later than 1 year after the date of default of all scholarship funds paid to them and to the institution of higher education on their behalf under the agreement, except as provided in subsection (h)(2). The repayment period may be extended by the Secretary when determined to be necessary, as established by regulation.</text></paragraph> <paragraph id="H42B5CD3EFBE447C7BD5085E3CB793BC9"><enum>(2)</enum><header>Failure to begin or complete the service obligation or meet the terms and conditions of deferment</header><text>A scholarship recipient who, for any reason, fails to begin or complete a service obligation under this section after completion of academic training, or fails to comply with the terms and conditions of deferment established by the Secretary pursuant to subsection (f)(2)(B), shall be in breach of the contractual agreement. When a recipient breaches an agreement for the reasons stated in the preceding sentence, the recipient shall be liable to the United States for an amount equal to—</text> <subparagraph id="H92C247EC00AA43AB9DBFC500BF119D4E"><enum>(A)</enum><text>the total amount of scholarships received by such individual under this section; plus</text></subparagraph> <subparagraph id="H503691C89213456082CF9F1ED562EE44"><enum>(B)</enum><text>the interest on the amounts of such awards which would be payable if at the time the awards were received they were loans bearing interest at the maximum legal prevailing rate, as determined by the Treasurer of the United States,</text></subparagraph><continuation-text continuation-text-level="paragraph">multiplied by 3.</continuation-text></paragraph></subsection> <subsection id="H859E35F89D024A6FA4C0697B6CA0E98D"><enum>(h)</enum><header>Waiver or suspension of obligation</header> <paragraph id="H2A0D535E491149F8A0EDDE1096B052C"><enum>(1)</enum><header>Death of individual</header><text>Any obligation of an individual incurred under the Program (or a contractual agreement thereunder) for service or payment shall be canceled upon the death of the individual.</text></paragraph> <paragraph id="H80975ED413D94E9C9D1144BC75AD6F40"><enum>(2)</enum><header>Impossibility or extreme hardship</header><text>The Secretary shall by regulation provide for the partial or total waiver or suspension of any obligation of service or payment incurred by an individual under the Program (or a contractual agreement thereunder) whenever compliance by the individual is impossible or would involve extreme hardship to the individual, or if enforcement of such obligation with respect to the individual would be contrary to the best interests of the Government.</text></paragraph></subsection> <subsection id="HE35AEA9B7007406583FDF0100A1ECF8"><enum>(i)</enum><header>Definitions</header><text>In this section the following definitions apply:</text> <paragraph id="H9F0186AE4CE84670B288D8CBB4E55853"><enum>(1)</enum><header>Cost of attendance</header><text>The term <term>cost of attendance</term> has the meaning given that term in section 472 of the <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20 U.S.C. 1087<italic>ll</italic>).</text></paragraph> <paragraph id="HDD282EC65A9046A28BFA1D92EDFD2022"><enum>(2)</enum><header>Program</header><text>The term <term>Program</term> means the Department of Energy Science and Technology Scholarship Program established under this section.</text></paragraph></subsection> <subsection id="H7912E80D28D14FB1B2993300084C2F57"><enum>(j)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary for activities under this section—</text> <paragraph id="HB175F82A43DD4309A48E71E7C2E2708F"><enum>(1)</enum><text>for fiscal year 2004, $800,000;</text></paragraph> <paragraph id="HA730448DDB144F7ABBC600AD9452943E"><enum>(2)</enum><text>for fiscal year 2005, $1,600,000;</text></paragraph> <paragraph id="H40B6E1615EBB438AB777652EF6A7B145"><enum>(3)</enum><text>for fiscal year 2006, $2,000,000;</text></paragraph> <paragraph id="HDBD34D352C504BA4BFB77BBA10D9A904"><enum>(4)</enum><text>for fiscal year 2007, $2,000,000; and</text></paragraph> <paragraph id="H3A611392C74440EA97FAD1FFDC00D1ED"><enum>(5)</enum><text>for fiscal year 2008, $2,000,000.</text></paragraph></subsection></section> <section id="H9FFC74A3D0FA4E0EA6AACFB53B6D0310"><enum>983.</enum><header>Report on equal employment opportunity practices</header><text display-inline="no-display-inline">Not later than 12 months after the date of enactment of this Act, and biennially thereafter, the Secretary shall transmit to Congress a report on the equal employment opportunity practices at National Laboratories. Such report shall include—</text> <paragraph id="H0657FC382B054B189CE1005BEA8CA700"><enum>(1)</enum><text>a thorough review of each laboratory contractor’s equal employment opportunity policies, including promotion to management and professional positions and pay raises;</text></paragraph> <paragraph id="HFBCD11517B2D4126B886A498C9079888"><enum>(2)</enum><text>a statistical report on complaints and their disposition in the laboratories;</text></paragraph> <paragraph id="H63E5AA6059D24D8D9FD4CF32B6E1462D"><enum>(3)</enum><text>a description of how equal employment opportunity practices at the laboratories are treated in the contract and in calculating award fees for each contractor;</text></paragraph> <paragraph id="H11036AC6AC5C44E5A23F2646A8A18B75"><enum>(4)</enum><text>a summary of disciplinary actions and their disposition by either the Department or the relevant contractors for each laboratory;</text></paragraph> <paragraph id="H3903365A69B54CBC8D40ABA3968C2300"><enum>(5)</enum><text>a summary of outreach efforts to attract women and minorities to the laboratories;</text></paragraph> <paragraph id="H1F5781026A584E32BEB8B48646DFF9C6"><enum>(6)</enum><text>a summary of efforts to retain women and minorities in the laboratories; and</text></paragraph> <paragraph id="H5DCD6BB319D3449DA08D3CA5C005DFFD"><enum>(7)</enum><text>a summary of collaboration efforts with the Office of Federal Contract Compliance Programs to improve equal employment opportunity practices at the laboratories.</text></paragraph></section> <section id="H608AE380723641EAB332F07367C03438"><enum>984.</enum><header>Small business advocacy and assistance</header> <subsection id="H30C2D1B95DCD4E5E937306A82C8DDCEE"><enum>(a)</enum><header>Small business advocate</header><text>The Secretary shall require the Director of each National Laboratory, and may require the Director of a single-purpose research facility, to designate a small business advocate to—</text> <paragraph id="H18E35E05CE6C4F51BC3859B7F2B6EC06"><enum>(1)</enum><text>increase the participation of small business concerns, including socially and economically disadvantaged small business concerns, in procurement, collaborative research, technology licensing, and technology transfer activities conducted by the National Laboratory or single-purpose research facility;</text></paragraph> <paragraph id="H7C19F7D08BA441D48D36BF9276EFE680"><enum>(2)</enum><text>report to the Director of the National Laboratory or single-purpose research facility on the actual participation of small business concerns, including socially and economically disadvantaged small business concerns, in procurement, collaborative research, technology licensing, and technology transfer activities along with recommendations, if appropriate, on how to improve participation;</text></paragraph> <paragraph id="H7337EF2486634B9F8170796642DE716F"><enum>(3)</enum><text>make available to small businesses training, mentoring, and information on how to participate in procurement and collaborative research activities;</text></paragraph> <paragraph id="H840A2D5A85E24AC497B091C1CA199FFF"><enum>(4)</enum><text>increase the awareness inside the National Laboratory or single-purpose research facility of the capabilities and opportunities presented by small business concerns; and</text></paragraph> <paragraph id="H7CC4799A57FC473F8051E35374A84F00"><enum>(5)</enum><text>establish guidelines for the program under subsection (b) and report on the effectiveness of such program to the Director of the National Laboratory or single-purpose research facility.</text></paragraph></subsection> <subsection id="H4A168B0AAE4B41068DA125A220E5F4BF"><enum>(b)</enum><header>Establishment of small business assistance Program</header><text>The Secretary shall require the Director of each National Laboratory, and may require the Director of a single-purpose research facility, to establish a program to provide small business concerns—</text> <paragraph id="H4C55883E39E744A8A2B47EAE9BB2BE9F"><enum>(1)</enum><text>assistance directed at making them more effective and efficient subcontractors or suppliers to the National Laboratory or single-purpose research facility; or</text></paragraph> <paragraph id="HF0E6B62179114C328E37FACC505CC7EF"><enum>(2)</enum><text>general technical assistance, the cost of which shall not exceed $10,000 per instance of assistance, to improve the small business concerns’ products or services.</text></paragraph></subsection> <subsection id="H0108C0AB379B42F9AB5DB85E69CA54DB"><enum>(c)</enum><header>Use of funds</header><text>None of the funds expended under subsection (b) may be used for direct grants to the small business concerns.</text></subsection> <subsection id="H976A013013E94FA2B6E6A954A562FBB9"><enum>(d)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="H4A926CE9DC45449B001589F65223FB8"><enum>(1)</enum><header>Small business concern</header><text>The term <term>small business concern</term> has the meaning given such term in section 3 of the <act-name parsable-cite="SBA">Small Business Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/15/632">15 U.S.C. 632</external-xref>).</text></paragraph> <paragraph id="HC5E72D5ECDF4467C8E4DE47BE76B4C49"><enum>(2)</enum><header>Socially and economically disadvantaged small business concerns</header><text>The term <term>socially and economically disadvantaged small business concerns</term> has the meaning given such term in section 8(a)(4) of the <act-name parsable-cite="SBA">Small Business Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/15/637">15 U.S.C. 637(a)(4)</external-xref>).</text></paragraph></subsection> <subsection id="HEBF72C00B5124138BA266600004BA45"><enum>(e)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to the Secretary for activities under this section $5,000,000 for each of fiscal years 2004 through 2008.</text></subsection></section> <section id="H6997A053E9754C758661267CE01F4231"><enum>985.</enum><header>Report on mobility of scientific and technical personnel</header><text display-inline="no-display-inline">Not later than 2 years after the date of enactment of this Act, the Secretary shall transmit a report to Congress identifying any policies or procedures of a contractor operating a National Laboratory or single-purpose research facility that create disincentives to the temporary transfer of scientific and technical personnel among the contractor-operated National Laboratories or contractor-operated single-purpose research facilities and provide suggestions for improving interlaboratory exchange of scientific and technical personnel.</text></section> <section id="H6AC851A0FA4143A2B60045204F93835C"><enum>986.</enum><header>National Academy of Sciences report</header><text display-inline="no-display-inline">Not later than 90 days after the date of enactment of this Act, the Secretary shall enter into an arrangement with the National Academy of Sciences for the Academy to—</text> <paragraph id="H584352C465BE40B490B6E600D0B71D00"><enum>(1)</enum><text>conduct a study on—</text> <subparagraph id="HAE9B747811BC4212A9746B61A5CB6B7D"><enum>(A)</enum><text>the obstacles to accelerating the commercial application of energy technology; and</text></subparagraph> <subparagraph id="H92521C0EBDD04DDDA5EB01F928633626"><enum>(B)</enum><text>the adequacy of Department policies and procedures for, and oversight of, technology transfer-related disputes between contractors of the Department and the private sector; and</text></subparagraph></paragraph> <paragraph id="H952BA21562E14955B02FBED2B81C3EAE"><enum>(2)</enum><text>transmit a report to Congress on recommendations developed as a result of the study.</text></paragraph></section> <section id="HCA1F5AB8844F4AE0A8A113E464DCCD00"><enum>987.</enum><header>Outreach</header><text display-inline="no-display-inline">The Secretary shall ensure that each program authorized by this title includes an outreach component to provide information, as appropriate, to manufacturers, consumers, engineers, architects, builders, energy service companies, institutions of higher education, small businesses, facility planners and managers, State and local governments, and other entities.</text></section> <section id="HAA18B52627304023AEB6B4BB856D1081"><enum>988.</enum><header>Competitive award of management contracts</header><text display-inline="no-display-inline">None of the funds authorized to be appropriated to the Secretary by this title may be used to award a management and operating contract for a nonmilitary energy laboratory of the Department unless such contract is competitively awarded or the Secretary grants, on a case-by-case basis, a waiver to allow for such a deviation. The Secretary may not delegate the authority to grant such a waiver and shall submit to Congress a report notifying Congress of the waiver and setting forth the reasons for the waiver at least 60 days prior to the date of the award of such a contract.</text></section> <section id="HA356B84362914B8BB51CCA00CBC0476F"><enum>989.</enum><header>Educational programs in science and mathematics</header> <subsection id="HA7ECF2D44B944881A9B209D63E3D3D59"><enum>(a)</enum><header>Activities</header><text>Section 3165(a) of the Department of Energy Science Education Enhancement Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7381b">42 U.S.C. 7381b(a)</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H28AB868F353E421494864B58DF4A9C4"> <paragraph id="H69637A789B354811A060444E9E94176D"><enum>(14)</enum><text>Support competitive events for students, under supervision of teachers, designed to encourage student interest and knowledge in science and mathematics.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H1EFA430830AE42ADACB6D91466EC100"><enum>(b)</enum><header>Authorization of appropriations</header><text>Section 3169 of the Department of Energy Science Education Enhancement Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7381e">42 U.S.C. 7381e</external-xref>), as so redesignated by section 1102(b), is amended by inserting before the period <quote>; and $40,000,000 for each of fiscal years 2004 through 2008</quote>.</text></subsection></section></subtitle> <enum>X</enum><header>Department of energy management</header> <section id="HDACAD0900A334AD39E7BDC10A0BACFC8" section-type="subsequent-section"><enum>1001.</enum><header>Additional Assistant Secretary position</header> <subsection id="H057BA61EFC8049A28E23C5F3A4004DD"><enum>(a)</enum><header>Additional Assistant Secretary position to enable improved management of nuclear energy issues</header> <paragraph id="HC336FCED615A4B63AAFD61B324F32B7"><enum>(1)</enum><header>In general</header><text>Section 203(a) of the Department of Energy Organization Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7133">42 U.S.C. 7133(a)</external-xref>) is amended by striking <quote>six Assistant Secretaries</quote> and inserting <quote>7 Assistant Secretaries</quote>.</text></paragraph> <paragraph id="H0F955F30AC5543DB99D75BCD88126552"><enum>(2)</enum><header>Sense of Congress</header><text>It is the sense of Congress that the leadership for departmental missions in nuclear energy should be at the Assistant Secretary level.</text></paragraph></subsection> <subsection id="HE3BC16753D324AEA9F040009FCF28167"><enum>(b)</enum><header>Technical and conforming amendments</header> <paragraph id="H9CC8E2D2DC0B410FAF538C7DF02426C4"><enum>(1)</enum><header>Title 5</header><text><external-xref legal-doc="usc" parsable-cite="usc/5/5315">Section 5315</external-xref> of title 5, United States Code, is amended by striking <quote>Assistant Secretaries of Energy (6)</quote> and inserting <quote>Assistant Secretaries of Energy (7)</quote>.</text></paragraph> <paragraph id="HCFC78B0F9A7C4B08A44000A36FAC381C"><enum>(2)</enum><header>Department of Energy Organization Act</header><text>The table of contents for the Department of Energy Organization Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7101">42 U.S.C. 7101</external-xref> note) is amended—</text> <subparagraph id="H08EE73018F5E47FB9B05475702FE8FB6"><enum>(A)</enum><text>by striking <quote>Section 209</quote> and inserting <quote>Sec. 209</quote>;</text></subparagraph> <subparagraph id="H774ACD518C26485B00EB02EC3E8CDB1B"><enum>(B)</enum><text>by striking <quote>213.</quote> and inserting <quote>Sec. 213.</quote>;</text></subparagraph> <subparagraph id="HC41FF197D2934F5D836C732F68AF42B1"><enum>(C)</enum><text>by striking <quote>214.</quote> and inserting <quote>Sec. 214.</quote>;</text></subparagraph> <subparagraph id="HA0FFDF9FE77B403FB96135CDCAFFD04F"><enum>(D)</enum><text>by striking <quote>215.</quote> and inserting <quote>Sec. 215.</quote>; and</text></subparagraph> <subparagraph id="HD8048B1EF6074F4F93DB8DCCBC04E8C1"><enum>(E)</enum><text>by striking <quote>216.</quote> and inserting <quote>Sec. 216.</quote>.</text></subparagraph></paragraph></subsection></section> <section id="H3E1963EC007E4AA3A7E5102D5D5C89CB"><enum>1002.</enum><header>Other transactions authority</header><text display-inline="no-display-inline">Section 646 of the Department of Energy Organization Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7256">42 U.S.C. 7256</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H31B0AEDB76454CF4833F2B7500D33F10"> <subsection id="H1CC9EC32FBCD4DE4893DCA65318BE14B"><enum>(g)</enum> <paragraph display-inline="yes-display-inline" id="H145B9FA63B894633ADB317D5534260F9"><enum>(1)</enum><text>In addition to other authorities granted to the Secretary under law, the Secretary may enter into other transactions on such terms as the Secretary may deem appropriate in furtherance of research, development, or demonstration functions vested in the Secretary. Such other transactions shall not be subject to the provisions of section 9 of the Federal Nonnuclear Energy Research and Development Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/42/5908">42 U.S.C. 5908</external-xref>) or section 152 of the <act-name parsable-cite="AEA54">Atomic Energy Act of 1954</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/2182">42 U.S.C. 2182</external-xref>).</text></paragraph> <paragraph indent="up1" id="HA19EE5A0EDB7458B8552BAF51D4200B2"><enum>(2)</enum> <subparagraph display-inline="yes-display-inline" id="HAFAE8ECF750943299B2300FCCB8EA"><enum>(A)</enum><text>The Secretary shall ensure that—</text> <clause indent="up1" id="H2DF8365BF645407F925296FC2900E371"><enum>(i)</enum><text>to the maximum extent the Secretary determines practicable, no transaction entered into under paragraph (1) provides for research, development, or demonstration that duplicates research, development, or demonstration being conducted under existing projects carried out by the Department;</text></clause> <clause indent="up1" id="H790AC69820364B3A95BC3B6DA58506"><enum>(ii)</enum><text>to the extent the Secretary determines practicable, the funds provided by the Government under a transaction authorized by paragraph (1) do not exceed the total amount provided by other parties to the transaction; and</text></clause> <clause indent="up1" id="HC9725A76678C479D90F1499E1EA5514C"><enum>(iii)</enum><text>to the extent the Secretary determines practicable, competitive, merit-based selection procedures shall be used when entering into transactions under paragraph (1).</text></clause></subparagraph> <subparagraph indent="up1" id="H23C76C1F840D4CB489B8DD00CACA7D97"><enum>(B)</enum><text>A transaction authorized by paragraph (1) may be used for a research, development, or demonstration project only if the Secretary makes a written determination that the use of a standard contract, grant, or cooperative agreement for the project is not feasible or appropriate.</text></subparagraph></paragraph> <paragraph indent="up1" id="HC47ABB00405D4641AE001F9E66186077"><enum>(3)</enum> <subparagraph display-inline="yes-display-inline" id="HD3922018461C494A95DBA917BAC780BC"><enum>(A)</enum><text>The Secretary shall protect from disclosure, including disclosure under <external-xref legal-doc="usc" parsable-cite="usc/5/552">section 552</external-xref> of title 5, United States Code, for up to 5 years after the date the information is received by the Secretary—</text> <clause indent="up1" id="HBAAAECBE6B9E470FA33654AE5B3571FA"><enum>(i)</enum><text>a proposal, proposal abstract, and supporting documents submitted to the Department in a competitive or noncompetitive process having the potential for resulting in an award under paragraph (1) to the party submitting the information; and</text></clause> <clause indent="up1" id="H9DA4B905092B4795BA0954E2FBB01B4"><enum>(ii)</enum><text>a business plan and technical information relating to a transaction authorized by paragraph (1) submitted to the Department as confidential business information.</text></clause></subparagraph> <subparagraph indent="up1" id="H793C6E66F6AE4F08A23990C3EE86EB00"><enum>(B)</enum><text>The Secretary may protect from disclosure, for up to 5 years after the information was developed, any information developed pursuant to a transaction under paragraph (1) which developed information is of a character that it would be protected from disclosure under <external-xref legal-doc="usc" parsable-cite="usc/5/552">section 552(b)(4)</external-xref> of title 5, United States Code, if obtained from a person other than a Federal agency.</text></subparagraph></paragraph> <paragraph indent="up1" id="HF55B7F521CDE4D5A9BEF7F69A99E53C6"><enum>(4)</enum><text>Not later than 90 days after the date of enactment of this subsection, the Secretary shall prescribe guidelines for using other transactions authorized by paragraph (1). Such guidelines shall be published in the Federal Register for public comment under rulemaking procedures of the Department.</text></paragraph> <paragraph indent="up1" id="H3D0BA580E7EB476F0002928CD1700027"><enum>(5)</enum><text>The authority of the Secretary under this subsection may be delegated only to an officer of the Department who is appointed by the President by and with the advice and consent of the Senate and may not be delegated to any other person.</text></paragraph> <paragraph indent="up1" id="HD49A447B87F242D2870233053BC98BD3"><enum>(6)</enum> <subparagraph display-inline="yes-display-inline" id="H4A2E57514100484D9489461D64EA0114"><enum>(A)</enum><text>Not later than September 31, 2005, the Comptroller General of the United States shall report to Congress on the Department’s use of the authorities granted under this section, including the ability to attract nontraditional government contractors and whether additional safeguards are needed with respect to the use of such authorities.</text></subparagraph> <subparagraph indent="up1" id="HF2C1C928F2CB4BE38D1EC95DF49FAF49"><enum>(B)</enum><text>In this section, the term <term>nontraditional Government contractor</term> has the same meaning as the term <term>nontraditional defense contractor</term> as defined in section 845(e) of the National Defense Authorization Act for Fiscal Year 1994 (<external-xref legal-doc="public-law" parsable-cite="pl/103/160">Public Law 103–160</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/10/2371">10 U.S.C. 2371</external-xref> note).</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <enum>XI</enum><header>Personnel and training</header> <section id="HE6E8E189F01E4EFFADD9E169AC444F3F"><enum>1101.</enum><header>Training guidelines for electric energy industry personnel</header><text display-inline="no-display-inline">The Secretary of Energy, in consultation with the Secretary of Labor and jointly with the electric industry and recognized employee representatives, shall develop model personnel training guidelines to support electric system reliability and safety. The training guidelines shall, at a minimum—</text> <paragraph id="H68E54090676F4787B352ACC9F45D2FE0"><enum>(1)</enum><text>include training requirements for workers engaged in the construction, operation, inspection, and maintenance of electric generation, transmission, and distribution, including competency and certification requirements, and assessment requirements that include initial and ongoing evaluation of workers, recertification assessment procedures, and methods for examining or testing the qualification of individuals performing covered tasks; and</text></paragraph> <paragraph id="H69AD77616C1A4456B032B4C36D26A812"><enum>(2)</enum><text>consolidate existing training guidelines on the construction, operation, maintenance, and inspection of electric generation, transmission, and distribution facilities, such as those established by the National Electric Safety Code and other industry consensus standards.</text></paragraph></section> <section id="HE434A9C6F4974E2400F4A960BB80F31C"><enum>1102.</enum><header>Improved access to energy-related scientific and technical careers</header> <subsection id="H69A0AE2CC82C4EFE9BC216C080A6BAF0"><enum>(a)</enum><header>Department of energy science education programs</header><text>Section 3164 of the Department of Energy Science Education Enhancement Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7381a">42 U.S.C. 7381a</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H035064A6C07046508FD87951D263A77"> <subsection id="HB5C600822505454A8D97E0A659DBE36"><enum>(c)</enum><header>Programs for students from underrepresented groups</header><text>In carrying out a program under subsection (a), the Secretary shall give priority to activities that are designed to encourage students from underrepresented groups to pursue scientific and technical careers.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HA6D81E5ED10645B9003D007D6DB9E083"><enum>(b)</enum><header>Partnerships with historically Black colleges and universities, Hispanic-servicing institutions, and tribal colleges</header><text>The Department of Energy Science Education Enhancement Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7381">42 U.S.C. 7381 et seq.</external-xref>) is amended—</text> <paragraph id="H1F2F1BCB8F074EF092C106365FAA2E00"><enum>(1)</enum><text>by redesignating sections 3167 and 3168 as sections 3168 and 3169, respectively; and</text></paragraph> <paragraph id="H2C87DD4EE85D4DC7B732581932C91C09"><enum>(2)</enum><text>by inserting after section 3166 the following:</text> <quoted-block id="HF816342B65A7409F97AFEA09C0DF4296"> <section id="H628E989D358745F5B16354AFA2874FCB"><enum>3167.</enum><header>Partnerships with historically Black colleges and universities, Hispanic-serving institutions, and tribal colleges</header> <subsection id="HC0D5246CB689428ABB307CC12FA52248"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HE24E7C52DB0A48DEBBEA406213544672"><enum>(1)</enum><header>Hispanic-serving institution</header><text>The term <term>Hispanic-serving institution</term> has the meaning given that term in section 502(a) of the <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/20/1101a">20 U.S.C. 1101a(a)</external-xref>).</text></paragraph> <paragraph id="H2D2FDD237D32495C004F00CC1D639665"><enum>(2)</enum><header>Historically Black college or University</header><text>The term <term>historically Black college or university</term> has the meaning given the term <term>part B institution</term> in section 322 of the <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/20/1061">20 U.S.C. 1061</external-xref>).</text></paragraph> <paragraph id="H2EE1E01DD4DA4CA89DF8F1B9C355BF5"><enum>(3)</enum><header>National Laboratory</header><text>The term <term>National Laboratory</term> has the meaning given that term in section 902 of the Energy Policy Act of 2003.</text></paragraph> <paragraph id="H18C716F7CD254D6BBF5BC5125B62C5A5"><enum>(4)</enum><header>Science facility</header><text>The term <term>science facility</term> has the meaning given the term <term>single-purpose research facility</term> in section 902 of the Energy Policy Act of 2003.</text></paragraph> <paragraph id="HF796590A239848E697E1F58C3CA56C56"><enum>(5)</enum><header>Tribal College</header><text>The term <term>tribal college</term> has the meaning given the term <term>Tribal College or University</term> in section 316(b)(3) of the <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/20/1059c">20 U.S.C. 1059c(b)(3)</external-xref>).</text></paragraph></subsection> <subsection id="H7628A8F3EE1F4596ACCEC7275790065"><enum>(b)</enum><header>Education partnership</header><text>The Secretary shall direct the Director of each National Laboratory and, to the extent practicable, the head of any science facility to increase the participation of historically Black colleges or universities, Hispanic-serving institutions, or tribal colleges in activities that increase the capacity of the historically Black colleges or universities, Hispanic-serving institutions, or tribal colleges to train personnel in science or engineering.</text></subsection> <subsection id="H94A5B9CCA3A14BBDB7A6D700F9B31366"><enum>(c)</enum><header>Activities</header><text>An activity under subsection (b) may include—</text> <paragraph id="HD5B2D79F150F4CFD874DEC548F44F3BE"><enum>(1)</enum><text>collaborative research;</text></paragraph> <paragraph id="HEBA228AF8D9E4BABA7BF00E4C9400005"><enum>(2)</enum><text>equipment transfer;</text></paragraph> <paragraph id="HBB338AAA38864989A509B3FADC3F2127"><enum>(3)</enum><text>training activities conducted at a National Laboratory or science facility; and</text></paragraph> <paragraph id="HE6D0B6C3C81D4C6C8316DD05164B4191"><enum>(4)</enum><text>mentoring activities conducted at a National Laboratory or science facility.</text></paragraph></subsection> <subsection id="H69B698B75AF74324A5BAEB4C99EC1C"><enum>(d)</enum><header>Report</header><text>Not later than 2 years after the date of enactment of the Energy Policy Act of 2003, the Secretary shall submit to Congress a report on the activities carried out under this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section> <section id="HC83FB0EB6C8944B6A47C5EF825E87677"><enum>1103.</enum><header>National Power Plant Operations Technology and Education Center</header> <subsection id="H87AF2FDF42954E1794A9964077C05028"><enum>(a)</enum><header>Establishment</header><text>The Secretary shall support the establishment of a National Power Plant Operations Technology and Education Center (in this section referred to as the <quote>Center</quote>), to address the need for training and educating certified operators for nonnuclear electric power generation plants.</text></subsection> <subsection id="HC27ABB1376F14439B157D538C8277CB3"><enum>(b)</enum><header>Role</header><text>The Center shall provide both training and continuing education relating to nonnuclear electric power generation plant technologies and operations. The Center shall conduct training and education activities on site and through Internet-based information technologies that allow for learning at remote sites.</text></subsection> <subsection id="HA256FE52E8E74B91ADDE2B8FAE3CEE7B"><enum>(c)</enum><header>Criteria for competitive selection</header><text>The Secretary shall support the establishment of the Center at an institution of higher education with expertise in power plant technology and operation and with the ability to provide onsite as well as Internet-based training.</text></subsection></section> <section id="HED5A5CF277024A3FB65F66F1BA69FA00"><enum>1104.</enum><header>International energy training</header> <subsection id="H213D85B4191F49828EB170C3F6DD00A1"><enum>(a)</enum><header>In general</header><text>The Secretary of Energy, in consultation with the Secretaries of Commerce, Interior, and State and the Federal Energy Regulatory Commission, shall coordinate training and outreach efforts for international commercial energy markets in countries with developing and restructuring economies.</text></subsection> <subsection id="H2482CDCF2DF84C9198197298179B7D9F"><enum>(b)</enum><header>Components</header><text>The efforts may address—</text> <paragraph id="H8D76E24928DF4FE08E094903A5B4AF4F"><enum>(1)</enum><text>production-related fiscal regimes;</text></paragraph> <paragraph id="H6DBF8C33ED124E328CCC3319714CDEC5"><enum>(2)</enum><text>grid and network issues;</text></paragraph> <paragraph id="HE628B751980044CC8F22CDD6BCB7C19B"><enum>(3)</enum><text>energy user and demand side response;</text></paragraph> <paragraph id="HA80F79AE3C1B4C768449145200226B55"><enum>(4)</enum><text>international trade of energy; and</text></paragraph> <paragraph id="H02B15544540F49A5A1CB13F5C6716FB1"><enum>(5)</enum><text>international transportation of energy.</text></paragraph></subsection> <subsection id="H5013743CA3A44AE1801F4CEAFFB139F1"><enum>(c)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out this section $1,500,000 for each of fiscal years 2004 through 2007.</text></subsection></section> <enum>XII</enum><header>Electricity</header> <section id="H4717089DFC7A4C2C8205D2CB1D74A935" section-type="subsequent-section"><enum>1201.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Electric Reliability Act of 2004</short-title></quote>.</text></section> <subtitle id="HE387C529E64E41099376E15EDCD443E"><enum>A</enum><header>Reliability standards</header> <section id="H9798F6B69F0F4003934D8309883753A4"><enum>1211.</enum><header>Electric reliability standards</header> <subsection id="H266DE2A76B044E0FA8A4CE1E21861E90"><enum>(a)</enum><header>In general</header><text>Part II of the Federal Power Act (16 U.S.C 824 et seq.) is amended by adding at the end the following:</text> <quoted-block id="HB92BC6168FB9459FAE960025A029CC1E"> <section id="HCEEB0451CA6E44DAA9BF44565E144118"><enum>215.</enum><header>Electric reliability</header> <subsection id="H42C38D1D8DF64E68ABDF74C469E5DA34"><enum>(a)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="HCCF232CA75C0496DAB3E4FA2BF1FD77"><enum>(1)</enum><text>The term <term>bulk-power system</term> means—</text> <subparagraph id="H0C9E38E2B31F4FD000F13EF588797186"><enum>(A)</enum><text>facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof); and</text></subparagraph> <subparagraph id="H70045CC923074C43BD24C333E836AE30"><enum>(B)</enum><text>electric energy from generation facilities needed to maintain transmission system reliability.</text></subparagraph><continuation-text continuation-text-level="paragraph">The term does not include facilities used in the local distribution of electric energy.</continuation-text></paragraph> <paragraph id="H90AA12FD64994FD2AA4F301DE4779435"><enum>(2)</enum><text>The terms <term>Electric Reliability Organization</term> and <term>ERO</term> mean the organization certified by the Commission under subsection (c) the purpose of which is to establish and enforce reliability standards for the bulk-power system, subject to Commission review.</text></paragraph> <paragraph id="H3B37AA595BCA46B2963709F42F721C30"><enum>(3)</enum><text>The term <term>reliability standard</term> means a requirement, approved by the Commission under this section, to provide for reliable operation of the bulk-power system. The term includes requirements for the operation of existing bulk-power system facilities and the design of planned additions or modifications to such facilities to the extent necessary to provide for reliable operation of the bulk-power system, but the term does not include any requirement to enlarge such facilities or to construct new transmission capacity or generation capacity.</text></paragraph> <paragraph id="HB497FEDBE489410A80D6029EE009B9CD"><enum>(4)</enum><text>The term <term>reliable operation</term> means operating the elements of the bulk-power system within equipment and electric system thermal, voltage, and stability limits so that instability, uncontrolled separation, or cascading failures of such system will not occur as a result of a sudden disturbance or unanticipated failure of system elements.</text></paragraph> <paragraph id="H2E5A02D326284380B86BEEBE48CD0076"><enum>(5)</enum><text>The term <term>Interconnection</term> means a geographic area in which the operation of bulk-power system components is synchronized such that the failure of 1 or more of such components may adversely affect the ability of the operators of other components within the system to maintain reliable operation of the facilities within their control.</text></paragraph> <paragraph id="H60C64C3D6185461BAD36B0FE60A7941B"><enum>(6)</enum><text>The term <term>transmission organization</term> means a Regional Transmission Organization, Independent System Operator, independent transmission provider, or other transmission organization finally approved by the Commission for the operation of transmission facilities.</text></paragraph> <paragraph id="H786D305B3F0543D3966C63B7B77407E1"><enum>(7)</enum><text>The term <term>regional entity</term> means an entity having enforcement authority pursuant to subsection (e)(4).</text></paragraph></subsection> <subsection id="H944E0F64EC3C4B3689C84776B7DEB96"><enum>(b)</enum><header>Jurisdiction and applicability</header> <paragraph display-inline="yes-display-inline" id="HC7C777D141474DE8BE6326471243C900"><enum>(1)</enum><text>The Commission shall have jurisdiction, within the United States, over the ERO certified by the Commission under subsection (c), any regional entities, and all users, owners and operators of the bulk-power system, including but not limited to the entities described in section 201(f), for purposes of approving reliability standards established under this section and enforcing compliance with this section. All users, owners and operators of the bulk-power system shall comply with reliability standards that take effect under this section.</text></paragraph> <paragraph indent="up1" id="H21340CFEFEF94C3AAA84A93F6CC70D7"><enum>(2)</enum><text>The Commission shall issue a final rule to implement the requirements of this section not later than 180 days after the date of enactment of this section.</text></paragraph></subsection> <subsection id="H834BF30CC5E246D8A69504F7CDCC2EC3"><enum>(c)</enum><header>Certification</header><text>Following the issuance of a Commission rule under subsection (b)(2), any person may submit an application to the Commission for certification as the Electric Reliability Organization. The Commission may certify 1 such ERO if the Commission determines that such ERO—</text> <paragraph id="HB92E3D7F1BF440E596516CA97A9832D"><enum>(1)</enum><text>has the ability to develop and enforce, subject to subsection (e)(2), reliability standards that provide for an adequate level of reliability of the bulk-power system; and</text></paragraph> <paragraph id="H8FAE51C346CD44ACAABD63FB5008B06"><enum>(2)</enum><text>has established rules that—</text> <subparagraph id="HB3D2CD1848B84BEDA31EE2316D613CEF"><enum>(A)</enum><text>assure its independence of the users and owners and operators of the bulk-power system, while assuring fair stakeholder representation in the selection of its directors and balanced decisionmaking in any ERO committee or subordinate organizational structure;</text></subparagraph> <subparagraph id="HB6935FE8005D431C845C7850F735F291"><enum>(B)</enum><text>allocate equitably reasonable dues, fees, and other charges among end users for all activities under this section;</text></subparagraph> <subparagraph id="H1AA471844D15403B8BA08C21AB6162C4"><enum>(C)</enum><text>provide fair and impartial procedures for enforcement of reliability standards through the imposition of penalties in accordance with subsection (e) (including limitations on activities, functions, or operations, or other appropriate sanctions);</text></subparagraph> <subparagraph id="HFCBCB47AF6C3427700EFB7B509333388"><enum>(D)</enum><text>provide for reasonable notice and opportunity for public comment, due process, openness, and balance of interests in developing reliability standards and otherwise exercising its duties; and</text></subparagraph> <subparagraph id="HF7648FEBFF024125B56F00D5CE007E4D"><enum>(E)</enum><text>provide for taking, after certification, appropriate steps to gain recognition in Canada and Mexico.</text></subparagraph></paragraph></subsection> <subsection id="HFF6258EF85C54FBE987C30FD8548930"><enum>(d)</enum><header>Reliability standards</header> <paragraph display-inline="yes-display-inline" id="HCCE7E7B1E1B24005A8825171CDCB67E7"><enum>(1)</enum><text>The Electric Reliability Organization shall file each reliability standard or modification to a reliability standard that it proposes to be made effective under this section with the Commission.</text></paragraph> <paragraph indent="up1" id="HFBFA1F8BC73E442AAB00137B00994010"><enum>(2)</enum><text>The Commission may approve, by rule or order, a proposed reliability standard or modification to a reliability standard if it determines that the standard is just, reasonable, not unduly discriminatory or preferential, and in the public interest. The Commission shall give due weight to the technical expertise of the Electric Reliability Organization with respect to the content of a proposed standard or modification to a reliability standard and to the technical expertise of a regional entity organized on an Interconnection-wide basis with respect to a reliability standard to be applicable within that Interconnection, but shall not defer with respect to the effect of a standard on competition. A proposed standard or modification shall take effect upon approval by the Commission.</text></paragraph> <paragraph indent="up1" id="HCD56B86848A6437A99D6945300D4ABFD"><enum>(3)</enum><text>The Electric Reliability Organization shall rebuttably presume that a proposal from a regional entity organized on an Interconnection-wide basis for a reliability standard or modification to a reliability standard to be applicable on an Interconnection-wide basis is just, reasonable, and not unduly discriminatory or preferential, and in the public interest.</text></paragraph> <paragraph indent="up1" id="HA2CE7FD90D1A44C689635B6647AB9D16"><enum>(4)</enum><text>The Commission shall remand to the Electric Reliability Organization for further consideration a proposed reliability standard or a modification to a reliability standard that the Commission disapproves in whole or in part.</text></paragraph> <paragraph indent="up1" id="H869275DA953C475B008588BBB67B733C"><enum>(5)</enum><text>The Commission, upon its own motion or upon complaint, may order the Electric Reliability Organization to submit to the Commission a proposed reliability standard or a modification to a reliability standard that addresses a specific matter if the Commission considers such a new or modified reliability standard appropriate to carry out this section.</text></paragraph> <paragraph indent="up1" id="H85F85D3CCE8C4E088FF17143A586F9B0"><enum>(6)</enum><text>The final rule adopted under subsection (b)(2) shall include fair processes for the identification and timely resolution of any conflict between a reliability standard and any function, rule, order, tariff, rate schedule, or agreement accepted, approved, or ordered by the Commission applicable to a transmission organization. Such transmission organization shall continue to comply with such function, rule, order, tariff, rate schedule or agreement accepted approved, or ordered by the Commission until—</text> <subparagraph id="HB0BD820F14E84191B6753DD33B43BEE"><enum>(A)</enum><text>the Commission finds a conflict exists between a reliability standard and any such provision;</text></subparagraph> <subparagraph id="H5A124ADF2BE3427F0089DF05DDCF4100"><enum>(B)</enum><text>the Commission orders a change to such provision pursuant to section 206 of this part; and</text></subparagraph> <subparagraph id="HE45877CA252E4444842C9900EC19A7A7"><enum>(C)</enum><text>the ordered change becomes effective under this part.</text></subparagraph></paragraph><continuation-text continuation-text-level="subsection">If the Commission determines that a reliability standard needs to be changed as a result of such a conflict, it shall order the ERO to develop and file with the Commission a modified reliability standard under paragraph (4) or (5) of this subsection.</continuation-text></subsection> <subsection id="H57ACDE14DA8B4E00A21BBF9448ABFDC8"><enum>(e)</enum><header>Enforcement</header> <paragraph display-inline="yes-display-inline" id="HC1812FAF97BC47DD81B854F5D22B4E50"><enum>(1)</enum><text>The ERO may impose, subject to paragraph (2), a penalty on a user or owner or operator of the bulk-power system for a violation of a reliability standard approved by the Commission under subsection (d) if the ERO, after notice and an opportunity for a hearing—</text> <subparagraph indent="up1" id="H2C9925BB30ED4B7E8844478689C55E2C"><enum>(A)</enum><text>finds that the user or owner or operator has violated a reliability standard approved by the Commission under subsection (d); and</text></subparagraph> <subparagraph indent="up1" id="H8AACF2B71C3C4A6EBA70783CEA4103F6"><enum>(B)</enum><text>files notice and the record of the proceeding with the Commission.</text></subparagraph></paragraph> <paragraph indent="up1" id="H099AF1AAEE7D4B5ABAEA118B96771824"><enum>(2)</enum><text>A penalty imposed under paragraph (1) may take effect not earlier than the 31st day after the ERO files with the Commission notice of the penalty and the record of proceedings. Such penalty shall be subject to review by the Commission, on its own motion or upon application by the user, owner or operator that is the subject of the penalty filed within 30 days after the date such notice is filed with the Commission. Application to the Commission for review, or the initiation of review by the Commission on its own motion, shall not operate as a stay of such penalty unless the Commission otherwise orders upon its own motion or upon application by the user, owner or operator that is the subject of such penalty. In any proceeding to review a penalty imposed under paragraph (1), the Commission, after notice and opportunity for hearing (which hearing may consist solely of the record before the ERO and opportunity for the presentation of supporting reasons to affirm, modify, or set aside the penalty), shall by order affirm, set aside, reinstate, or modify the penalty, and, if appropriate, remand to the ERO for further proceedings. The Commission shall implement expedited procedures for such hearings.</text></paragraph> <paragraph indent="up1" id="H7588315772F044E8B8E238072F8EA63"><enum>(3)</enum><text>On its own motion or upon complaint, the Commission may order compliance with a reliability standard and may impose a penalty against a user or owner or operator of the bulk-power system if the Commission finds, after notice and opportunity for a hearing, that the user or owner or operator of the bulk-power system has engaged or is about to engage in any acts or practices that constitute or will constitute a violation of a reliability standard.</text></paragraph> <paragraph indent="up1" id="HD2F983FD42CC42BF88C379F679E4F188"><enum>(4)</enum><text>The Commission shall issue regulations authorizing the ERO to enter into an agreement to delegate authority to a regional entity for the purpose of proposing reliability standards to the ERO and enforcing reliability standards under paragraph (1) if—</text> <subparagraph id="H8308EE7E3BAC4B5A9EC235A17DDAEAE"><enum>(A)</enum><text>the regional entity is governed by—</text> <clause id="H28806D398FDD48F0A7C1A6C6749D4FA8"><enum>(i)</enum><text>an independent board;</text></clause> <clause id="HCDAEE6732379400582D8E6B2F7AC68B7"><enum>(ii)</enum><text>a balanced stakeholder board; or</text></clause> <clause id="H6FD47E3AC5BE4BAD8D00EF2052534E46"><enum>(iii)</enum><text>a combination independent and balanced stakeholder board.</text></clause></subparagraph> <subparagraph id="HB528D15EB3C741A58D00158FA80884C"><enum>(B)</enum><text>the regional entity otherwise satisfies the provisions of subsection (c)(1) and (2); and</text></subparagraph> <subparagraph id="H701DF952B8A7432C827EF700F8077792"><enum>(C)</enum><text>the agreement promotes effective and efficient administration of bulk-power system reliability.</text></subparagraph></paragraph><continuation-text continuation-text-level="subsection">The Commission may modify such delegation. The ERO and the Commission shall rebuttably presume that a proposal for delegation to a regional entity organized on an Interconnection-wide basis promotes effective and efficient administration of bulk-power system reliability and should be approved. Such regulation may provide that the Commission may assign the ERO’s authority to enforce reliability standards under paragraph (1) directly to a regional entity consistent with the requirements of this paragraph.</continuation-text> <paragraph indent="up1" id="H90854E0F528D49BFAE37496DDA5D38DF"><enum>(5)</enum><text>The Commission may take such action as is necessary or appropriate against the ERO or a regional entity to ensure compliance with a reliability standard or any Commission order affecting the ERO or a regional entity.</text></paragraph> <paragraph indent="up1" id="H5FDEC07D950345BE9BC86CEF6CF0236C"><enum>(6)</enum><text>Any penalty imposed under this section shall bear a reasonable relation to the seriousness of the violation and shall take into consideration the efforts of such user, owner, or operator to remedy the violation in a timely manner.</text></paragraph></subsection> <subsection id="HD3A1B012F8864B73882984AEC659874D"><enum>(f)</enum><header>Changes in Electric Reliability Organization rules</header><text>The Electric Reliability Organization shall file with the Commission for approval any proposed rule or proposed rule change, accompanied by an explanation of its basis and purpose. The Commission, upon its own motion or complaint, may propose a change to the rules of the ERO. A proposed rule or proposed rule change shall take effect upon a finding by the Commission, after notice and opportunity for comment, that the change is just, reasonable, not unduly discriminatory or preferential, is in the public interest, and satisfies the requirements of subsection (c).</text></subsection> <subsection id="HD5616E1F423B45DB9B74886DEEF4EC74"><enum>(g)</enum><header>Reliability reports</header><text>The ERO shall conduct periodic assessments of the reliability and adequacy of the bulk-power system in North America.</text></subsection> <subsection id="H9F8591ABAB804C1E003579EF75C801"><enum>(h)</enum><header>Coordination with Canada and Mexico</header><text>The President is urged to negotiate international agreements with the governments of Canada and Mexico to provide for effective compliance with reliability standards and the effectiveness of the ERO in the United States and Canada or Mexico.</text></subsection> <subsection id="H1CF318A5A97140199EFAE7DEC11D8254"><enum>(i)</enum><header>Savings provisions</header> <paragraph display-inline="yes-display-inline" id="HFD689240F6544A0B00DF73BF2C2F39BB"><enum>(1)</enum><text>The ERO shall have authority to develop and enforce compliance with reliability standards for only the bulk-power system.</text></paragraph> <paragraph indent="up1" id="H1F9951652A8748B081C105967560F5C9"><enum>(2)</enum><text>This section does not authorize the ERO or the Commission to order the construction of additional generation or transmission capacity or to set and enforce compliance with standards for adequacy or safety of electric facilities or services.</text></paragraph> <paragraph indent="up1" id="H37D7FF7E54474F56B8CA49ABA1F3A4DA"><enum>(3)</enum><text>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 reliability standard.</text></paragraph> <paragraph indent="up1" id="HB9F28F3C514E4FD29DFA73AFD4AB1B2D"><enum>(4)</enum><text>Within 90 days of the application of the Electric Reliability Organization or other affected party, and after notice and opportunity for comment, the Commission shall issue a final order determining whether a State action is inconsistent with a reliability standard, taking into consideration any recommendation of the ERO.</text></paragraph> <paragraph indent="up1" id="H8598AFB52CD04590BE758B990089F3F2"><enum>(5)</enum><text>The Commission, after consultation with the ERO and the State taking action, may stay the effectiveness of any State action, pending the Commission’s issuance of a final order.</text></paragraph></subsection> <subsection id="H945D068B0DE9481FBB2EC7D2488500C6"><enum>(j)</enum><header>Regional advisory bodies</header><text>The Commission shall establish a regional advisory body on the petition of at least <fraction>2/3</fraction> of the States within a region that have more than <fraction>1/2</fraction> of their electric load served within the region. A regional advisory body shall be composed of 1 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. A regional advisory body may provide advice to the Electric Reliability Organization, a regional entity, or the Commission regarding the governance of an existing or proposed regional entity within the same region, whether a standard proposed to apply within the region is just, reasonable, not unduly discriminatory or preferential, and in the public interest, whether fees proposed to be assessed within the region are just, reasonable, not unduly discriminatory or preferential, and in the public interest and any other responsibilities requested by the Commission. The Commission may give deference to the advice of any such regional advisory body if that body is organized on an Interconnection-wide basis.</text></subsection> <subsection id="HB930BA560CF44CEE9D00000040B51CFE"><enum>(k)</enum><header>Alaska and Hawaii</header><text>The provisions of this section do not apply to Alaska or Hawaii.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H09A1E160A59C41A2A2FD0059A7A7F955"><enum>(b)</enum><header>Status of ERO</header><text>The Electric Reliability Organization certified by the Federal Energy Regulatory Commission under section 215(c) of the Federal Power Act and any regional entity delegated enforcement authority pursuant to section 215(e)(4) of that Act are not departments, agencies, or instrumentalities of the United States Government.</text></subsection></section></subtitle> <subtitle id="H5D438674B7F0487C8128D36F91E1FE53"><enum>B</enum><header>Transmission infrastructure modernization</header> <section id="H163AC6D517D2420091327CCB182B6A2"><enum>1221.</enum><header>Siting of interstate electric transmission facilities</header> <subsection id="H6B6C8B9EAD3446CB83C18F7EF73104B5"><enum>(a)</enum><header>Amendment of Federal Power Act</header><text>Part II of the Federal Power Act is amended by adding at the end the following:</text> <quoted-block id="H9AB1AB71C62B422285BFDB0825CFCDDF"> <section id="HCB103984D11049DBB5B2562CC0F8D840"><enum>216.</enum><header>Siting of interstate electric transmission facilities</header> <subsection id="H9B11FF1196434E089138E25794AC805F"><enum>(a)</enum><header>Designation of national interest electric transmission corridors</header> <paragraph id="H9F426743BB5B480BB2042662A99931F5"><enum>(1)</enum><header>Transmission congestion study</header><text>Within 1 year after the enactment of this section, and every 3 years thereafter, the Secretary of Energy, in consultation with affected States, shall conduct a study of electric transmission congestion. After considering alternatives and recommendations from interested parties, including an opportunity for comment from affected States, the Secretary shall issue a report, based on such study, which may designate any geographic area experiencing electric energy transmission capacity constraints or congestion that adversely affects consumers as a national interest electric transmission corridor. The Secretary shall conduct the study and issue the report in consultation with any appropriate regional entity referenced in section 215 of this Act.</text></paragraph> <paragraph id="H0301ED2443FF48FD86B51F2CE55CA955"><enum>(2)</enum><header>Considerations</header><text>In determining whether to designate a national interest electric transmission corridor referred to in paragraph (1) under this section, the Secretary may consider whether—</text> <subparagraph id="H4EB821384F094220AE67076893951BBF"><enum>(A)</enum><text>the economic vitality and development of the corridor, or the end markets served by the corridor, may be constrained by lack of adequate or reasonably priced electricity;</text></subparagraph> <subparagraph id="H29996F0B4C274C4BAD234F1634AB1656"><enum>(B)</enum> <clause display-inline="yes-display-inline" id="H844BEC845FB344E9856FB492B82CE764"><enum>(i)</enum><text>economic growth in the corridor, or the end markets served by the corridor, may be jeopardized by reliance on limited sources of energy; and</text></clause> <clause indent="up1" id="H8A0E5DEC402948B1A68E87E6313E5914"><enum>(ii)</enum><text>a diversification of supply is warranted;</text></clause></subparagraph> <subparagraph id="H076BDA1AD6BD4B8D93F178C7274F5CAE"><enum>(C)</enum><text>the energy independence of the United States would be served by the designation;</text></subparagraph> <subparagraph id="HEEC459E0FC1842CB82B9A52521C611F5"><enum>(D)</enum><text>the designation would be in the interest of national energy policy; and</text></subparagraph> <subparagraph id="H41AD3EF0E27D47068DB65BBBE9665C7C"><enum>(E)</enum><text>the designation would enhance national defense and homeland security.</text></subparagraph></paragraph></subsection> <subsection id="HA06D31AE1CE84CD999AA9E79C09EC21"><enum>(b)</enum><header>Construction permit</header><text>Except as provided in subsection (i), the Commission is authorized, after notice and an opportunity for hearing, to issue a permit or permits for the construction or modification of electric transmission facilities in a national interest electric transmission corridor designated by the Secretary under subsection (a) if the Commission finds that—</text> <paragraph id="HC19501C0A9F045F6AB06D406CE7663D5"><enum>(1)</enum> <subparagraph display-inline="yes-display-inline" id="HE2CB73D39A3A4516851BE3105D43913F"><enum>(A)</enum><text>a State in which the transmission facilities are to be constructed or modified is without authority to—</text> <clause indent="up1" id="H7C01052995F94F2FA4615DB0AC7B79B"><enum>(i)</enum><text>approve the siting of the facilities; or</text></clause> <clause indent="up1" id="H510E757792DE42AD8881EED262DFAFB2"><enum>(ii)</enum><text>consider the interstate benefits expected to be achieved by the proposed construction or modification of transmission facilities in the State;</text></clause></subparagraph> <subparagraph indent="up1" id="H4D49380D6A1D4F4FBD3D94974892C78C"><enum>(B)</enum><text>the applicant for a permit is a transmitting utility under this Act but does not qualify to apply for a permit or siting approval for the proposed project in a State because the applicant does not serve end-use customers in the State; or</text></subparagraph> <subparagraph indent="up1" id="HE738E181CF384839B09D6021F6B36162"><enum>(C)</enum><text>a State commission or other entity that has authority to approve the siting of the facilities has—</text> <clause id="HC8EAC104684F412EA006AEC9445DB00"><enum>(i)</enum><text>withheld approval for more than 1 year after the filing of an application pursuant to applicable law seeking approval or 1 year after the designation of the relevant national interest electric transmission corridor, whichever is later; or</text></clause> <clause id="HAD8638973E2144D6B340F7DAFEDDA655"><enum>(ii)</enum><text>conditioned its approval in such a manner that the proposed construction or modification will not significantly reduce transmission congestion in interstate commerce or is not economically feasible;</text></clause></subparagraph></paragraph> <paragraph id="H8E18F8DCBCDF4EB0894824679E3C525D"><enum>(2)</enum><text>the facilities to be authorized by the permit will be used for the transmission of electric energy in interstate commerce;</text></paragraph> <paragraph id="H970943AF77AE432CA7FF6C2802E80047"><enum>(3)</enum><text>the proposed construction or modification is consistent with the public interest;</text></paragraph> <paragraph id="H95954B2AE388486B91CDBFFE753E82B"><enum>(4)</enum><text>the proposed construction or modification will significantly reduce transmission congestion in interstate commerce and protects or benefits consumers; and</text></paragraph> <paragraph id="H82889A07C9E54CD3964386260071BE7C"><enum>(5)</enum><text>the proposed construction or modification is consistent with sound national energy policy and will enhance energy independence.</text></paragraph></subsection> <subsection id="H492276EEF8644798009BB8D4E993253B"><enum>(c)</enum><header>Permit applications</header><text>Permit applications under subsection (b) shall be made in writing to the Commission. The Commission shall issue rules setting forth the form of the application, the information to be contained in the application, and the manner of service of notice of the permit application upon interested persons.</text></subsection> <subsection id="H07F1A12B3F65405491D4646DBAB0010"><enum>(d)</enum><header>Comments</header><text>In any proceeding before the Commission under subsection (b), the Commission shall afford each State in which a transmission facility covered by the permit is or will be located, each affected Federal agency and Indian tribe, private property owners, and other interested persons, a reasonable opportunity to present their views and recommendations with respect to the need for and impact of a facility covered by the permit.</text></subsection> <subsection id="H49515AA19F974066A42CA64176B38C83"><enum>(e)</enum><header>Rights-of-way</header><text>In the case of a permit under subsection (b) for electric transmission facilities to be located on property other than property owned by the United States or a State, if the permit holder cannot acquire by contract, or is unable to agree with the owner of the property to the compensation to be paid for, the necessary right-of-way to construct or modify such transmission facilities, the permit holder may acquire the right-of-way by the exercise of the right of eminent domain in the district court of the United States for the district in which the property concerned is located, or in the appropriate court of the State in which the property is located. The practice and procedure in any action or proceeding for that purpose in the district court of the United States shall conform as nearly as may be with the practice and procedure in similar action or proceeding in the courts of the State where the property is situated.</text></subsection> <subsection id="H6570B721C6C94E69998BDC962F2ED085"><enum>(f)</enum><header>State law</header><text>Nothing in this section shall preclude any person from constructing or modifying any transmission facility pursuant to State law.</text></subsection> <subsection id="HD7243C4D4DBF4FF2AC924F9749BAEF75"><enum>(g)</enum><header>Compensation</header><text>Any exercise of eminent domain authority pursuant to this section shall be considered a taking of private property for which just compensation is due. Just compensation shall be an amount equal to the full fair market value of the property taken on the date of the exercise of eminent domain authority, except that the compensation shall exceed fair market value if necessary to make the landowner whole for decreases in the value of any portion of the land not subject to eminent domain. Any parcel of land acquired by eminent domain under this subsection shall be transferred back to the owner from whom it was acquired (or his heirs or assigns) if the land is not used for the construction or modification of electric transmission facilities within a reasonable period of time after the acquisition. Other than construction, modification, operation, or maintenance of electric transmission facilities and related facilities, property acquired under subsection (e) may not be used for any purpose (including use for any heritage area, recreational trail, or park) without the consent of the owner of the parcel from whom the property was acquired (or the owner’s heirs or assigns).</text></subsection> <subsection id="HEEF86DE3EBFD4E96BBE6B55452C8E78"><enum>(h)</enum><header>Coordination of Federal authorizations for transmission and distribution facilities</header> <paragraph id="HD1AD8EDC09034B18877B776E328676AE"><enum>(1)</enum><header>Lead agency</header><text>If an applicant, or prospective applicant, for a Federal authorization related to an electric transmission or distribution facility so requests, the Department of Energy (DOE) shall act as the lead agency for purposes of coordinating all applicable Federal authorizations and related environmental reviews of the facility. For purposes of this subsection, the term <term>Federal authorization</term> means any authorization required under Federal law in order to site a transmission or distribution facility, including but not limited to such permits, special use authorizations, certifications, opinions, or other approvals as may be required, whether issued by a Federal or a State agency. To the maximum extent practicable under applicable Federal law, the Secretary of Energy shall coordinate this Federal authorization and review process with any Indian tribes, multi-State entities, and State agencies that are responsible for conducting any separate permitting and environmental reviews of the facility, to ensure timely and efficient review and permit decisions.</text></paragraph> <paragraph id="H4CA5AB6E4BD6448EB8809FFC942890F7"><enum>(2)</enum><header>Authority to set deadlines</header><text>As lead agency, the Department of Energy, in consultation with agencies responsible for Federal authorizations and, as appropriate, with Indian tribes, multi-State entities, and State agencies that are willing to coordinate their own separate permitting and environmental reviews with the Federal authorization and environmental reviews, shall establish prompt and binding intermediate milestones and ultimate deadlines for the review of, and Federal authorization decisions relating to, the proposed facility. The Secretary of Energy shall ensure that once an application has been submitted with such data as the Secretary considers necessary, all permit decisions and related environmental reviews under all applicable Federal laws shall be completed within 1 year or, if a requirement of another provision of Federal law makes this impossible, as soon thereafter as is practicable. The Secretary of Energy also shall provide an expeditious pre-application mechanism for prospective applicants to confer with the agencies involved to have each such agency determine and communicate to the prospective applicant within 60 days of when the prospective applicant submits a request for such information concerning—</text> <subparagraph id="HEB2CAFE7DBF74901BADDC0F0C7308E01"><enum>(A)</enum><text>the likelihood of approval for a potential facility; and</text></subparagraph> <subparagraph id="HB8D0D0B1EE894EF394C2E4855570FB84"><enum>(B)</enum><text>key issues of concern to the agencies and public.</text></subparagraph></paragraph> <paragraph id="HE910E20D30514E0FA800CDB0A8C700E"><enum>(3)</enum><header>Consolidated environmental review and record of decision</header><text>As lead agency head, the Secretary of Energy, in consultation with the affected agencies, shall prepare a single environmental review document, which shall be used as the basis for all decisions on the proposed project under Federal law. The document may be an environmental assessment or environmental impact statement under the <act-name parsable-cite="NEPA69">National Environmental Policy Act of 1969</act-name> if warranted, or such other form of analysis as may be warranted. The Secretary of Energy and the heads of other agencies shall streamline the review and permitting of transmission and distribution facilities within corridors designated under section 503 of the Federal Land Policy and Management Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1763">43 U.S.C. 1763</external-xref>) by fully taking into account prior analyses and decisions relating to the corridors. Such document shall include consideration by the relevant agencies of any applicable criteria or other matters as required under applicable laws.</text></paragraph> <paragraph id="H00D0CF7D662D49FAB36F00E87BADA4EC"><enum>(4)</enum><header>Appeals</header><text>In the event that any agency has denied a Federal authorization required for a transmission or distribution facility, or has failed to act by the deadline established by the Secretary pursuant to this section for deciding whether to issue the authorization, the applicant or any State in which the facility would be located may file an appeal with the Secretary, who shall, in consultation with the affected agency, review the denial or take action on the pending application. Based on the overall record and in consultation with the affected agency, the Secretary may then either issue the necessary authorization with any appropriate conditions, or deny the application. The Secretary shall issue a decision within 90 days of the filing of the appeal. In making a decision under this paragraph, the Secretary shall comply with applicable requirements of Federal law, including any requirements of the Endangered Species Act, the Clean Water Act, the National Forest Management Act, the <act-name parsable-cite="NEPA69">National Environmental Policy Act of 1969</act-name>, and the Federal Land Policy and Management Act.</text></paragraph> <paragraph id="HC39156949BE74E00B27DBE9FB7D9A257"><enum>(5)</enum><header>Conforming regulations and Memoranda of Understanding</header><text>Not later than 18 months after the date of enactment of this section, the Secretary of Energy shall issue any regulations necessary to implement this subsection. Not later than 1 year after the date of enactment of this section, the Secretary and the heads of all Federal agencies with authority to issue Federal authorizations shall enter into Memoranda of Understanding to ensure the timely and coordinated review and permitting of electricity transmission and distribution facilities. The head of each Federal agency with authority to issue a Federal authorization shall designate a senior official responsible for, and dedicate sufficient other staff and resources to ensure, full implementation of the DOE regulations and any Memoranda. Interested Indian tribes, multi-State entities, and State agencies may enter such Memoranda of Understanding.</text></paragraph> <paragraph id="H9114BF4CA4D64ECD99D3646266EBFFCB"><enum>(6)</enum><header>Duration and renewal</header><text>Each Federal land use authorization for an electricity transmission or distribution facility shall be issued—</text> <subparagraph id="H63187EB79D32415889AC2F4B79A100FD"><enum>(A)</enum><text>for a duration, as determined by the Secretary of Energy, commensurate with the anticipated use of the facility, and</text></subparagraph> <subparagraph id="H89F9E67921754FA2A13D4CCCA1F3BD34"><enum>(B)</enum><text>with appropriate authority to manage the right-of-way for reliability and environmental protection.</text></subparagraph><continuation-text continuation-text-level="paragraph">Upon the expiration of any such authorization (including an authorization issued prior to enactment of this section), the authorization shall be reviewed for renewal taking fully into account reliance on such electricity infrastructure, recognizing its importance for public health, safety and economic welfare and as a legitimate use of Federal lands.</continuation-text></paragraph> <paragraph id="HF7087437E90D4FF39BECE6E918977806"><enum>(7)</enum><header>Maintaining and enhancing the transmission infrastructure</header><text>In exercising the responsibilities under this section, the Secretary of Energy shall consult regularly with the Federal Energy Regulatory Commission (FERC), FERC-approved electric reliability organizations (including related regional entities), and FERC-approved Regional Transmission Organizations and Independent System Operators.</text></paragraph></subsection> <subsection id="H5A75D876D0CE4A750063AAD3007FB823"><enum>(i)</enum><header>Interstate compacts</header><text>The consent of Congress is hereby given for 3 or more contiguous States to enter into an interstate compact, subject to approval by Congress, establishing regional transmission siting agencies to facilitate siting of future electric energy transmission facilities within such States and to carry out the electric energy transmission siting responsibilities of such States. The Secretary of Energy may provide technical assistance to regional transmission siting agencies established under this subsection. Such regional transmission siting agencies shall have the authority to review, certify, and permit siting of transmission facilities, including facilities in national interest electric transmission corridors (other than facilities on property owned by the United States). The Commission shall have no authority to issue a permit for the construction or modification of electric transmission facilities within a State that is a party to a compact, unless the members of a compact are in disagreement and the Secretary makes, after notice and an opportunity for a hearing, the finding described in section (b)(1)(C).</text></subsection> <subsection id="H30466B9B6F15499C90A5B55085CD000"><enum>(j)</enum><header>Savings clause</header><text>Nothing in this section shall be construed to affect any requirement of the environmental laws of the United States, including, but not limited to, the <act-name parsable-cite="NEPA69">National Environmental Policy Act of 1969</act-name>. Subsection (h)(4) of this section shall not apply to any Congressionally-designated components of the National Wilderness Preservation System, the National Wild and Scenic Rivers System, or the National Park system (including National Monuments therein).</text></subsection> <subsection id="H6C547D923D2648A58B1815860027B1D6"><enum>(k)</enum><header>ERCOT</header><text>This section shall not apply within the area referred to in section 212(k)(2)(A).</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H27EA648AC0F54E17AD9B25073D45BBBA"><enum>(b)</enum><header>Reports to Congress on corridors and rights of way on Federal lands</header><text>The Secretary of the Interior, the Secretary of Energy, the Secretary of Agriculture, and the Chairman of the Council on Environmental Quality shall, within 90 days of the date of enactment of this subsection, submit a joint report to Congress identifying each of the following:</text> <paragraph id="HE443DC41A72342268BF5E939E45D2C58"><enum>(1)</enum><text>All existing designated transmission and distribution corridors on Federal land and the status of work related to proposed transmission and distribution corridor designations under Title V of the Federal Land Policy and Management Act (43 U.S.C. 1761 et. Seq.), the schedule for completing such work, any impediments to completing the work, and steps that Congress could take to expedite the process.</text></paragraph> <paragraph id="HF533243EEE5346C291DFADC06DF56051"><enum>(2)</enum><text>The number of pending applications to locate transmission and distribution facilities on Federal lands, key information relating to each such facility, how long each application has been pending, the schedule for issuing a timely decision as to each facility, and progress in incorporating existing and new such rights-of-way into relevant land use and resource management plans or their equivalent.</text></paragraph> <paragraph id="H46C2DCCFAADE4C26A4CF70364FFB0930"><enum>(3)</enum><text>The number of existing transmission and distribution rights-of-way on Federal lands that will come up for renewal within the following 5, 10, and 15 year periods, and a description of how the Secretaries plan to manage such renewals.</text></paragraph></subsection></section> <section id="HAB539694312845BDB37865DBB6F7F7EE"><enum>1222.</enum><header>Third-party finance</header> <subsection id="H2C9AC2EDD77D46F3A1CB584048E99FC9"><enum>(a)</enum><header>Existing facilities</header><text>The Secretary of Energy (hereinafter in this section referred to as the <quote>Secretary</quote>), acting through the Administrator of the Western Area Power Administration (hereinafter in this section referred to as <quote>WAPA</quote>), or through the Administrator of the Southwestern Power Administration (hereinafter in this section referred to as <quote>SWPA</quote>), or both, may design, develop, construct, operate, maintain, or own, or participate with other entities in designing, developing, constructing, operating, maintaining, or owning, an electric power transmission facility and related facilities (<quote>Project</quote>) needed to upgrade existing transmission facilities owned by SWPA or WAPA if the Secretary of Energy, in consultation with the applicable Administrator, determines that the proposed Project—</text> <paragraph id="H50DB41D74474470C958DD79534BC2612"><enum>(1)</enum> <subparagraph display-inline="yes-display-inline" id="H57EFF857C4CC42BEB7E71CD493C6B853"><enum>(A)</enum><text>is located in a national interest electric transmission corridor designated under section 216(a) of the Federal Power Act and will reduce congestion of electric transmission in interstate commerce; or</text></subparagraph> <subparagraph indent="up1" id="H667C468824154D95B3B5594FC11F5E6C"><enum>(B)</enum><text>is necessary to accommodate an actual or projected increase in demand for electric transmission capacity;</text></subparagraph></paragraph> <paragraph id="H143E4DB05E4C49E983AD02CF9D2293FA"><enum>(2)</enum><text>is consistent with—</text> <subparagraph id="H4DEA126D1B8D412D80AB177DD364CD75"><enum>(A)</enum><text>transmission needs identified, in a transmission expansion plan or otherwise, by the appropriate Regional Transmission Organization or Independent System Operator (as defined in the Federal Power Act), if any, or approved regional reliability organization; and</text></subparagraph> <subparagraph id="H31578200B7FC4249881922F6BF00EFF6"><enum>(B)</enum><text>efficient and reliable operation of the transmission grid; and</text></subparagraph></paragraph> <paragraph id="H22BDDCD65CF047A591874CB5C5D607A7"><enum>(3)</enum><text>would be operated in conformance with prudent utility practice.</text></paragraph></subsection> <subsection id="HC7CE6C72AA75468ABBFD190500AC0033"><enum>(b)</enum><header>New facilities</header><text>The Secretary, acting through WAPA or SWPA, or both, may design, develop, construct, operate, maintain, or own, or participate with other entities in designing, developing, constructing, operating, maintaining, or owning, a new electric power transmission facility and related facilities (<quote>Project</quote>) located within any State in which WAPA or SWPA operates if the Secretary, in consultation with the applicable Administrator, determines that the proposed Project—</text> <paragraph id="H4E4974768DC446F190C38310C300F09D"><enum>(1)</enum> <subparagraph display-inline="yes-display-inline" id="H9BC64EABE2514AE892E3A1376679D428"><enum>(A)</enum><text>is located in an area designated under section 216(a) of the Federal Power Act and will reduce congestion of electric transmission in interstate commerce; or</text></subparagraph> <subparagraph indent="up1" id="H0D34E00E6D7D48599686FBCD3C9D01A"><enum>(B)</enum><text>is necessary to accommodate an actual or projected increase in demand for electric transmission capacity;</text></subparagraph></paragraph> <paragraph id="H42DC5A51B68A41579EA812763D7595C"><enum>(2)</enum><text>is consistent with—</text> <subparagraph id="H184FE58BC33146F8B901CAFAD6002711"><enum>(A)</enum><text>transmission needs identified, in a transmission expansion plan or otherwise, by the appropriate Regional Transmission Organization or Independent System Operator, if any, or approved regional reliability organization; and</text></subparagraph> <subparagraph id="HBE61D00C6870423D9D237776D2F2C2C1"><enum>(B)</enum><text>efficient and reliable operation of the transmission grid;</text></subparagraph></paragraph> <paragraph id="H34BB88A6CC6A4922A3C54A1E29C753F"><enum>(3)</enum><text>will be operated in conformance with prudent utility practice;</text></paragraph> <paragraph id="H8F6CCCB5935A471C92C7FA04102FB34C"><enum>(4)</enum><text>will be operated by, or in conformance with the rules of, the appropriate (A) Regional Transmission Organization or Independent System Operator, if any, or (B) if such an organization does not exist, regional reliability organization; and</text></paragraph> <paragraph id="H563D46D11D924768B7A1AB1819001DFA"><enum>(5)</enum><text>will not duplicate the functions of existing transmission facilities or proposed facilities which are the subject of ongoing or approved siting and related permitting proceedings.</text></paragraph></subsection> <subsection id="H3D4EBE1918C0482BA56F19417416DF92"><enum>(c)</enum><header>Other funds</header> <paragraph id="HFF903BF65FF34CE6A10164C9FFD1EE13"><enum>(1)</enum><header>In general</header><text>In carrying out a Project under subsection (a) or (b), the Secretary may accept and use funds contributed by another entity for the purpose of carrying out the Project.</text></paragraph> <paragraph id="H9F16B557A421462AAC0380CBD86B48A7"><enum>(2)</enum><header>Availability</header><text>The contributed funds shall be available for expenditure for the purpose of carrying out the Project—</text> <subparagraph id="HD14FFC34E5184C5DBD21005025C332A1"><enum>(A)</enum><text>without fiscal year limitation; and</text></subparagraph> <subparagraph id="H5AEC04DF38A64521A1B61421BC5B53D"><enum>(B)</enum><text>as if the funds had been appropriated specifically for that Project.</text></subparagraph></paragraph> <paragraph id="H9270E5506D224284BBC025E1A76CB590"><enum>(3)</enum><header>Allocation of costs</header><text>In carrying out a Project under subsection (a) or (b), any costs of the Project not paid for by contributions from another entity shall be collected through rates charged to customers using the new transmission capability provided by the Project and allocated equitably among these project beneficiaries using the new transmission capability.</text></paragraph></subsection> <subsection id="HD83786D9F0014D1A89F560001E832F97"><enum>(d)</enum><header>Relationship to other laws</header><text>Nothing in this section affects any requirement of—</text> <paragraph id="HF1B0222835CD4436A0537507A3554C00"><enum>(1)</enum><text>any Federal environmental law, including the <act-name parsable-cite="NEPA69">National Environmental Policy Act of 1969</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/4321">42 U.S.C. 4321 et seq.</external-xref>);</text></paragraph> <paragraph id="HE37B4A8B0FB04D0FA7A36322384B10D8"><enum>(2)</enum><text>any Federal or State law relating to the siting of energy facilities; or</text></paragraph> <paragraph id="H997591F0529E4EF3B0CCC035097A9B"><enum>(3)</enum><text>any existing authorizing statutes.</text></paragraph></subsection> <subsection id="H8EA25A25A7C84890AC29C2EA754F4141"><enum>(e)</enum><header>Savings clause</header><text>Nothing in this section shall constrain or restrict an Administrator in the utilization of other authority delegated to the Administrator of WAPA or SWPA.</text></subsection> <subsection id="HF55491C2A08B425D966F006D04861EE"><enum>(f)</enum><header>Secretarial determinations</header><text>Any determination made pursuant to subsections (a) or (b) shall be based on findings by the Secretary using the best available data.</text></subsection> <subsection id="HB14EAD5852C248C0B5730500FC8DCAFA"><enum>(g)</enum><header>Maximum funding amount</header><text>The Secretary shall not accept and use more than $100,000,000 under subsection (c)(1) for the period encompassing fiscal years 2004 through 2013.</text></subsection></section> <section id="HBA7DEEE774D14E27993B83A6464659A2"><enum>1223.</enum><header>Transmission system monitoring</header><text display-inline="no-display-inline">Within 6 months after the date of enactment of this Act, the Secretary of Energy and the Federal Energy Regulatory Commission shall study and report to Congress on the steps which must be taken to establish a system to make available to all transmission system owners and Regional Transmission Organizations (as defined in the Federal Power Act) within the Eastern and Western Interconnections real-time information on the functional status of all transmission lines within such Interconnections. In such study, the Commission shall assess technical means for implementing such transmission information system and identify the steps the Commission or Congress must take to require the implementation of such system.</text></section> <section id="H27ED8BD048B84EDB8B6FA3880027A95F"><enum>1224.</enum><header>Advanced transmission technologies</header> <subsection id="HDAD70F5065AD46F4903C975F7288AA60"><enum>(a)</enum><header>Authority</header><text>The Federal Energy Regulatory Commission, in the exercise of its authorities under the Federal Power Act and the Public Utility Regulatory Policies Act of 1978, shall encourage the deployment of advanced transmission technologies.</text></subsection> <subsection id="HA9BD47211E3245CDAE490049DB697B76"><enum>(b)</enum><header>Definition</header><text>For the purposes of this section, the term <term>advanced transmission technologies</term> means technologies that increase the capacity, efficiency, or reliability of existing or new transmission facilities, including, but not limited to—</text> <paragraph id="H61855D2B681D48DEABAFF4B8208B9C1B"><enum>(1)</enum><text>high-temperature lines (including superconducting cables);</text></paragraph> <paragraph id="H8CAC4B8213B8435F98280079453F96A4"><enum>(2)</enum><text>underground cables;</text></paragraph> <paragraph id="H0E5A8A2581AE4158B6CBB7AFF8F8F00"><enum>(3)</enum><text>advanced conductor technology (including advanced composite conductors, high-temperature low-sag conductors, and fiber optic temperature sensing conductors);</text></paragraph> <paragraph id="HD2E7C3C37CC4430E81C4345F31F6D9AE"><enum>(4)</enum><text>high-capacity ceramic electric wire, connectors, and insulators;</text></paragraph> <paragraph id="H4EA2E37515274D878174347BE2BDDDA1"><enum>(5)</enum><text>optimized transmission line configurations (including multiple phased transmission lines);</text></paragraph> <paragraph id="H2DF57EE80F8E403D9D63B0AEF06F00CA"><enum>(6)</enum><text>modular equipment;</text></paragraph> <paragraph id="HA8AA6AC304BF47DC846BBFEBB618CD49"><enum>(7)</enum><text>wireless power transmission;</text></paragraph> <paragraph id="H259359E6BCDA44ECA221A9D2260035AB"><enum>(8)</enum><text>ultra-high voltage lines;</text></paragraph> <paragraph id="H39CD5C536CB64CA4843269E467824DD1"><enum>(9)</enum><text>high-voltage DC technology;</text></paragraph> <paragraph id="HF6B2F9E5D06446F099D00054B94972DF"><enum>(10)</enum><text>flexible AC transmission systems;</text></paragraph> <paragraph id="H0FFA6F3659FF404BA88FE235BF66FD3D"><enum>(11)</enum><text>energy storage devices (including pumped hydro, compressed air, superconducting magnetic energy storage, flywheels, and batteries);</text></paragraph> <paragraph id="H9E74DC19AA06417AB400E406F03C4F5D"><enum>(12)</enum><text>controllable load;</text></paragraph> <paragraph id="H9A59571A58DC4912916B1CBA09891717"><enum>(13)</enum><text>distributed generation (including PV, fuel cells, microturbines);</text></paragraph> <paragraph id="H8A9CF7EF3AC1466A0009BA7F02FEFF0"><enum>(14)</enum><text>enhanced power device monitoring;</text></paragraph> <paragraph id="H4508811E49E443BE80C059CCF8FF3F55"><enum>(15)</enum><text>direct system state sensors;</text></paragraph> <paragraph id="HC50404368B2646B6A5D67640F26ED6AA"><enum>(16)</enum><text>fiber optic technologies;</text></paragraph> <paragraph id="H19D4A4A4D8C547FB9DC987CAEB94D2AD"><enum>(17)</enum><text>power electronics and related software (including real time monitoring and analytical software); and</text></paragraph> <paragraph id="H61EC82778F374B5E88D67184D0B77B62"><enum>(18)</enum><text>any other technologies the Commission considers appropriate.</text></paragraph></subsection> <subsection id="HC569522A496644FF92F0006004CF8C0"><enum>(c)</enum><header>Obsolete or impracticable technologies</header><text>The Commission is authorized to cease encouraging the deployment of any technology described in this section on a finding that such technology has been rendered obsolete or otherwise impracticable to deploy.</text></subsection></section> <section id="H9F474BBEC3414A78B07E06453500AFDD"><enum>1225.</enum><header>Electric transmission and distribution programs</header> <subsection id="H8461072F7DCE4767BFD4DA38C44B2D40"><enum>(a)</enum><header>Electric transmission and distribution program</header><text>The Secretary of Energy (hereinafter in this section referred to as the <quote>Secretary</quote>) acting through the Director of the Office of Electric Transmission and Distribution shall establish a comprehensive research, development, demonstration and commercial application program to promote improved reliability and efficiency of electrical transmission and distribution systems. This program shall include—</text> <paragraph id="H1D74FA14AC804924AEE349E7FFD7CA7C"><enum>(1)</enum><text>advanced energy delivery and storage technologies, materials, and systems, including new transmission technologies, such as flexible alternating current transmission systems, composite conductor materials and other technologies that enhance reliability, operational flexibility, or power-carrying capability;</text></paragraph> <paragraph id="H27C78C7AAB454A21ABBD22F77058EC4"><enum>(2)</enum><text>advanced grid reliability and efficiency technology development;</text></paragraph> <paragraph id="H3A0811171C4D401BAF327BE89DE1E254"><enum>(3)</enum><text>technologies contributing to significant load reductions;</text></paragraph> <paragraph id="HBB2B0E25CA404B3883F4D01138C34E47"><enum>(4)</enum><text>advanced metering, load management, and control technologies;</text></paragraph> <paragraph id="HF5750C35A51A4D568B79DA347B140097"><enum>(5)</enum><text>technologies to enhance existing grid components;</text></paragraph> <paragraph id="H71A890B978D7485496448B202DCACED8"><enum>(6)</enum><text>the development and use of high-temperature superconductors to—</text> <subparagraph id="H40BBF21458044166A82C0047C4A31BEF"><enum>(A)</enum><text>enhance the reliability, operational flexibility, or power-carrying capability of electric transmission or distribution systems; or</text></subparagraph> <subparagraph id="H13C4C9DF779D442FB2E7556E2C63E100"><enum>(B)</enum><text>increase the efficiency of electric energy generation, transmission, distribution, or storage systems;</text></subparagraph></paragraph> <paragraph id="H3F19D6A4E77B47FCBA89003CD038AD71"><enum>(7)</enum><text>integration of power systems, including systems to deliver high-quality electric power, electric power reliability, and combined heat and power;</text></paragraph> <paragraph id="H9DB59A3696594202A657BF5BB9E638D3"><enum>(8)</enum><text>supply of electricity to the power grid by small scale, distributed and residential-based power generators;</text></paragraph> <paragraph id="HE184945BA11C41EEAC9E6FD2F23B22"><enum>(9)</enum><text>the development and use of advanced grid design, operation and planning tools;</text></paragraph> <paragraph id="HC137CA6072C14575A0854FA637324249"><enum>(10)</enum><text>any other infrastructure technologies, as appropriate; and</text></paragraph> <paragraph id="HD4AFB48674934490A8084ECEB24EDA9"><enum>(11)</enum><text>technology transfer and education.</text></paragraph></subsection> <subsection id="HA29BF3A3DE2C47890090003BAAAEAFB9"><enum>(b)</enum><header>Program plan</header><text>Not later than 1 year after the date of the enactment of this legislation, the Secretary, in consultation with other appropriate Federal agencies, shall prepare and transmit to Congress a 5-year program plan to guide activities under this section. In preparing the program plan, the Secretary may consult with utilities, energy services providers, manufacturers, institutions of higher education, other appropriate State and local agencies, environmental organizations, professional and technical societies, and any other persons the Secretary considers appropriate.</text></subsection> <subsection id="HDB7B81ECAE3B437700E1E0D7C696962E"><enum>(c)</enum><header>Implementation</header><text>The Secretary shall consider implementing this program using a consortium of industry, university and national laboratory participants.</text></subsection> <subsection id="H93416698C4B042B098001F80B58D8B51"><enum>(d)</enum><header>Report</header><text>Not later than 2 years after the transmittal of the plan under subsection (b), the Secretary shall transmit a report to Congress describing the progress made under this section and identifying any additional resources needed to continue the development and commercial application of transmission and distribution infrastructure technologies.</text></subsection> <subsection id="HC9AEFDDD1F3248B20073A9BF8233FF9B"><enum>(e)</enum><header>Power delivery research initiative</header> <paragraph id="H5FF4D4EBFAC341A58FDA5BE900480025"><enum>(1)</enum><header>In general</header><text>The Secretary shall establish a research, development, demonstration, and commercial application initiative specifically focused on power delivery utilizing components incorporating high temperature superconductivity.</text></paragraph> <paragraph id="H077C4D4AA1C8420CA61FBD4618809CB2"><enum>(2)</enum><header>Goals</header><text>The goals of this initiative shall be to—</text> <subparagraph id="H94D35FA13D0741E59FA09D9BFDEC8318"><enum>(A)</enum><text>establish facilities to develop high temperature superconductivity power applications in partnership with manufacturers and utilities;</text></subparagraph> <subparagraph id="H147FDD11975542858DB2FFEF1B1D1F1C"><enum>(B)</enum><text>provide technical leadership for establishing reliability for high temperature superconductivity power applications including suitable modeling and analysis;</text></subparagraph> <subparagraph id="H5FB830255AD2425DBC3489D1C2F16F11"><enum>(C)</enum><text>facilitate commercial transition toward direct current power transmission, storage, and use for high power systems utilizing high temperature superconductivity; and</text></subparagraph> <subparagraph id="H3E10EC5A59C947F987C755AE946CCCCE"><enum>(D)</enum><text>facilitate the integration of very low impedance high temperature superconducting wires and cables in existing electric networks to improve system performance, power flow control and reliability.</text></subparagraph></paragraph> <paragraph id="H544FA85C2318472C979995972679823C"><enum>(3)</enum><header>Requirements</header><text>The initiative shall include—</text> <subparagraph id="HE8CDBF47CD224689AE90825284858B94"><enum>(A)</enum><text>feasibility analysis, planning, research, and design to construct demonstrations of superconducting links in high power, direct current and controllable alternating current transmission systems;</text></subparagraph> <subparagraph id="HFC45CEA7752F47BEA0B3F7481F6D8CE9"><enum>(B)</enum><text>public-private partnerships to demonstrate deployment of high temperature superconducting cable into testbeds simulating a realistic transmission grid and under varying transmission conditions, including actual grid insertions; and</text></subparagraph> <subparagraph id="H4EA69A43991E4C9F8295B935EA50AED1"><enum>(C)</enum><text>testbeds developed in cooperation with national laboratories, industries, and universities to demonstrate these technologies, prepare the technologies for commercial introduction, and address cost or performance roadblocks to successful commercial use.</text></subparagraph></paragraph> <paragraph id="H812BBCDF000E40D390BA4BF03382F000"><enum>(4)</enum><header>Authorization of appropriations</header><text>For purposes of carrying out this subsection, there are authorized to be appropriated—</text> <subparagraph id="H8A12250EDD4A40F6999606F3BA6E6B2F"><enum>(A)</enum><text>for fiscal year 2004, $15,000,000;</text></subparagraph> <subparagraph id="HD1DB490851D145629198EF1429BD6C74"><enum>(B)</enum><text>for fiscal year 2005, $20,000,000;</text></subparagraph> <subparagraph id="HBDC5498FDCB442A40029B2BB99DAE0D3"><enum>(C)</enum><text>for fiscal year 2006, $30,000,000;</text></subparagraph> <subparagraph id="HB77E3B1DDB6642C299C82CF2C3004DAC"><enum>(D)</enum><text>for fiscal year 2007, $35,000,000; and</text></subparagraph> <subparagraph id="H101E3CFDC5C1437284248C470050ED52"><enum>(E)</enum><text>for fiscal year 2008, $40,000,000.</text></subparagraph></paragraph></subsection></section> <section id="H9BFBCC8E23504E78A7B3AD000870A868"><enum>1226.</enum><header>Advanced Power System Technology Incentive Program</header> <subsection id="HFD7F70E3325440AC00339862AC9E7D80"><enum>(a)</enum><header>Program</header><text>The Secretary of Energy is authorized to establish an Advanced Power System Technology Incentive Program to support the deployment of certain advanced power system technologies and to improve and protect certain critical governmental, industrial, and commercial processes. Funds provided under this section shall be used by the Secretary to make incentive payments to eligible owners or operators of advanced power system technologies to increase power generation through enhanced operational, economic, and environmental performance. Payments under this section may only be made upon receipt by the Secretary of an incentive payment application establishing an applicant as either—</text> <paragraph id="H0AF97704E5534D85A323AD6FA1A7B7F1"><enum>(1)</enum><text>a qualifying advanced power system technology facility; or</text></paragraph> <paragraph id="H9CF063F21E5243DBA0529B9464E9D9D0"><enum>(2)</enum><text>a qualifying security and assured power facility.</text></paragraph></subsection> <subsection id="HEF2C1EF675934E4C84EFD8AD7FBC54F3"><enum>(b)</enum><header>Incentives</header><text>Subject to availability of funds, a payment of 1.8 cents per kilowatt-hour shall be paid to the owner or operator of a qualifying advanced power system technology facility under this section for electricity generated at such facility. An additional 0.7 cents per kilowatt-hour shall be paid to the owner or operator of a qualifying security and assured power facility for electricity generated at such facility. Any facility qualifying under this section shall be eligible for an incentive payment for up to, but not more than, the first 10,000,000 kilowatt-hours produced in any fiscal year.</text></subsection> <subsection id="H564C9A7A78B64C799B424437E025858F"><enum>(c)</enum><header>Eligibility</header><text>For purposes of this section:</text> <paragraph id="H5AFD3AFB89D94DA891565471FB00A5A3"><enum>(1)</enum><header>Qualifying advanced power system technology facility</header><text>The term <term>qualifying advanced power system technology facility</term> means a facility using an advanced fuel cell, turbine, or hybrid power system or power storage system to generate or store electric energy.</text></paragraph> <paragraph id="H794E980D64874484828813AB5F004861"><enum>(2)</enum><header>Qualifying security and assured power facility</header><text>The term <term>qualifying security and assured power facility</term> means a qualifying advanced power system technology facility determined by the Secretary of Energy, in consultation with the Secretary of Homeland Security, to be in critical need of secure, reliable, rapidly available, high-quality power for critical governmental, industrial, or commercial applications.</text></paragraph></subsection> <subsection id="H9767BE0F85094596BFDED0C86BE053E1"><enum>(d)</enum><header>Authorization</header><text>There are authorized to be appropriated to the Secretary of Energy for the purposes of this section, $10,000,000 for each of the fiscal years 2004 through 2010.</text></subsection></section> <section id="H8FED8FBA82F745EABC40CC52396E1501"><enum>1227.</enum><header>Office of Electric Transmission and Distribution</header> <subsection id="H224452CF839A4D0AAFC77FC2AC521C93"><enum>(a)</enum><header>Creation of an Office of Electric Transmission and Distribution</header><text>Title II of the Department of Energy Organization Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7131">42 U.S.C. 7131 et seq.</external-xref>) (as amended by section 502(a) of this Act) is amended by inserting the following after section 217, as added by title V of this Act:</text> <quoted-block id="HAF69D2096A744317859D472B5543F5B5"> <section id="H6F9CD5F228C845A1B8E17D63D3DE3D11"><enum>218.</enum><header>Office of Electric Transmission and Distribution</header> <subsection id="HD77DAA476DB842098E6545EEE985934"><enum>(a)</enum><header>Establishment</header><text>There is established within the Department an Office of Electric Transmission and Distribution. This Office shall be headed by a Director, subject to the authority of the Secretary. The Director shall be appointed by the Secretary. The Director shall be compensated at the annual rate prescribed for level IV of the Executive Schedule under <external-xref legal-doc="usc" parsable-cite="usc/5/5315">section 5315</external-xref> of title 5, United States Code.</text></subsection> <subsection id="H8FC5F5DFC35045FFB1C6033332771991"><enum>(b)</enum><header>Director</header><text>The Director shall—</text> <paragraph id="H30382B6352FD445DBD967FCBBF7F1D1C"><enum>(1)</enum><text>coordinate and develop a comprehensive, multi-year strategy to improve the Nation’s electricity transmission and distribution;</text></paragraph> <paragraph id="H1D4581AF9B494EFD99EA00558CE387B"><enum>(2)</enum><text>implement or, where appropriate, coordinate the implementation of, the recommendations made in the Secretary’s May 2002 National Transmission Grid Study;</text></paragraph> <paragraph id="H68BFA4B4272E4EC3B5A081ECB2004D29"><enum>(3)</enum><text>oversee research, development, and demonstration to support Federal energy policy related to electricity transmission and distribution;</text></paragraph> <paragraph id="H9B8D8A4C6E7D4B0F006EC3EE4E6621A4"><enum>(4)</enum><text>grant authorizations for electricity import and export pursuant to section 202(c), (d), (e), and (f) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824a">16 U.S.C. 824a</external-xref>);</text></paragraph> <paragraph id="H38383ADA26334D7E86FBECA64DA2C4F3"><enum>(5)</enum><text>perform other functions, assigned by the Secretary, related to electricity transmission and distribution; and</text></paragraph> <paragraph id="HE0603855BDC046278F16002618C06BBE"><enum>(6)</enum><text>develop programs for workforce training in power and transmission engineering.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HE3FA1407EC6E4E26A6CF76BD8C427BE9"><enum>(b)</enum><header>Conforming amendments</header> <paragraph display-inline="yes-display-inline" id="H6D983181CFE54DA4BD1D0699DAF455CD"><enum>(1)</enum><text>The table of contents of the Department of Energy Organization Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7101">42 U.S.C. 7101</external-xref> note) is amended by inserting after the item relating to section 217 the following new item:</text> <quoted-block style="OLC" id="H9D782AF9D6AB432B95A4A13BE374ED00"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 218. Office of Electric Transmission and Distribution</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph indent="up1" id="H5A65250FFC7E4ADE9496D6468984E035"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/5/5315">Section 5315</external-xref> of title 5, United States Code, is amended by inserting after the item relating to <quote>Inspector General, Department of Energy.</quote> the following:</text> <quoted-block style="OLC" id="HDE948B601CA04E96990218347B7BA77D" display-inline="no-display-inline"><list level="subsection"><list-item>Director, Office of Electric Transmission and Distribution, Department of Energy.</list-item></list><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section></subtitle> <subtitle id="H55C3B2AE372B4C4B9341771EEC03EA4D"><enum>C</enum><header>Transmission operation improvements</header> <section id="HF8ACB273714C479EB480469078189FA0"><enum>1231.</enum><header>Open nondiscriminatory access</header><text display-inline="no-display-inline">Part II of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824">16 U.S.C. 824 et seq.</external-xref>) is amended by inserting after section 211 the following new section:</text> <quoted-block id="HC8454DF453DA4907B5A5B6A2D077E50"> <section id="H9A196D5884D846E6A72473B1F93B92C1"><enum>211A.</enum><header>Open access by unregulated transmitting utilities</header> <subsection id="H076CEE282E364473838D8E2FAB9EA4DA"><enum>(a)</enum><header>Transmission services</header><text>Subject to section 212(h), the Commission may, by rule or order, require an unregulated transmitting utility to provide transmission services—</text> <paragraph id="H088BAE11CDB543B5ACB1C6DBC227E56"><enum>(1)</enum><text>at rates that are comparable to those that the unregulated transmitting utility charges itself; and</text></paragraph> <paragraph id="HB24E975D85854B45A2DCA52C60B7F817"><enum>(2)</enum><text>on terms and conditions (not relating to rates) that are comparable to those under which such unregulated transmitting utility provides transmission services to itself and that are not unduly discriminatory or preferential.</text></paragraph></subsection> <subsection id="H606C09E98E934EA5AFC3F2E6478108FF"><enum>(b)</enum><header>Exemption</header><text>The Commission shall exempt from any rule or order under this section any unregulated transmitting utility that—</text> <paragraph id="HEF27DAC5BB3A4569006EE67250F930AB"><enum>(1)</enum><text>sells no more than 4,000,000 megawatt hours of electricity per year; or</text></paragraph> <paragraph id="H29BE26B8FFFA4BE69EB6A5ED15695CDB"><enum>(2)</enum><text>does not own or operate any transmission facilities that are necessary for operating an interconnected transmission system (or any portion thereof); or</text></paragraph> <paragraph id="HE105090BFC05407BAFF45E9DAC97594B"><enum>(3)</enum><text>meets other criteria the Commission determines to be in the public interest.</text></paragraph></subsection> <subsection id="H4B79B0B349C942459BE815B759E953F"><enum>(c)</enum><header>Local distribution facilities</header><text>The requirements of subsection (a) shall not apply to facilities used in local distribution.</text></subsection> <subsection id="H4D8E65E41AAF48C1B0D8BE76271E008D"><enum>(d)</enum><header>Exemption termination</header><text>Whenever the Commission, after an evidentiary hearing held upon a complaint and after giving consideration to reliability standards established under section 215, finds on the basis of a preponderance of the evidence that any exemption granted pursuant to subsection (b) unreasonably impairs the continued reliability of an interconnected transmission system, it shall revoke the exemption granted to that transmitting utility.</text></subsection> <subsection id="H0E8CE3216AA44E4280F1A7B2D400E823"><enum>(e)</enum><header>Application to unregulated transmitting utilities</header><text>The rate changing procedures applicable to public utilities under subsections (c) and (d) of section 205 are applicable to unregulated transmitting utilities for purposes of this section.</text></subsection> <subsection id="H007EECDB3A7E4C4FBB7B85F28140E0A0"><enum>(f)</enum><header>Remand</header><text>In exercising its authority under paragraph (1) of subsection (a), the Commission may remand transmission rates to an unregulated transmitting utility for review and revision where necessary to meet the requirements of subsection (a).</text></subsection> <subsection id="H2A476B4640164A768C4868B38737F579"><enum>(g)</enum><header>Other requests</header><text>The provision of transmission services under subsection (a) does not preclude a request for transmission services under section 211.</text></subsection> <subsection id="H133FC125847A49188FAB4DB42475B6F7"><enum>(h)</enum><header>Limitation</header><text>The Commission may not require a State or municipality to take action under this section that would violate a private activity bond rule for purposes of <external-xref legal-doc="usc" parsable-cite="usc/26/141">section 141</external-xref> of the Internal Revenue Code of 1986 (<external-xref legal-doc="usc" parsable-cite="usc/26/141">26 U.S.C. 141</external-xref>).</text></subsection> <subsection id="HBDC3785FC6F84F1DB25EABBBDDC66B"><enum>(i)</enum><header>Transfer of control of transmitting facilities</header><text>Nothing in this section authorizes the Commission to require an unregulated transmitting utility to transfer control or operational control of its transmitting facilities to an RTO or any other Commission-approved independent transmission organization designated to provide nondiscriminatory transmission access.</text></subsection> <subsection id="HEF628EBCD1E34FEBA8EE8C65BB20138D"><enum>(j)</enum><header>Definition</header><text>For purposes of this section, the term <term>unregulated transmitting utility</term> means an entity that—</text> <paragraph id="HAA0FAC62811F4F30A6784BE71928F53E"><enum>(1)</enum><text>owns or operates facilities used for the transmission of electric energy in interstate commerce; and</text></paragraph> <paragraph id="H9DEA2EE715AA45A183B3D5CC68BAE47B"><enum>(2)</enum><text>is an entity described in section 201(f).</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H7B2EE0CAEEC14D82ABAFEDA896748BC9"><enum>1232.</enum><header>Sense of Congress on Regional Transmission Organizations</header><text display-inline="no-display-inline">It is the sense of Congress that, in order to promote fair, open access to electric transmission service, benefit retail consumers, facilitate wholesale competition, improve efficiencies in transmission grid management, promote grid reliability, remove opportunities for unduly discriminatory or preferential transmission practices, and provide for the efficient development of transmission infrastructure needed to meet the growing demands of competitive wholesale power markets, all transmitting utilities in interstate commerce should voluntarily become members of Regional Transmission Organizations as defined in section 3 of the Federal Power Act.</text></section> <section id="H2502A600423744B6BA3BA6E6C7E0DB1"><enum>1233.</enum><header>Regional Transmission Organization applications progress report</header><text display-inline="no-display-inline">Not later than 120 days after the date of enactment of this section, the Federal Energy Regulatory Commission shall submit to Congress a report containing each of the following:</text> <paragraph id="HA9724F822D4A466381B304B8DD92F50"><enum>(1)</enum><text>A list of all regional transmission organization applications filed at the Commission pursuant to subpart F of part 35 of title 18, Code of Federal Regulations (in this section referred to as <quote>Order No. 2000</quote>), including an identification of each public utility and other entity included within the proposed membership of the regional transmission organization.</text></paragraph> <paragraph id="H83F19928A2F3461494155FF255D93EE4"><enum>(2)</enum><text>A brief description of the status of each pending regional transmission organization application, including a precise explanation of how each fails to comply with the minimal requirements of Order No. 2000 and what steps need to be taken to bring each application into such compliance.</text></paragraph> <paragraph id="HD9470C92AA064EB9A105BAE6C8470087"><enum>(3)</enum><text>For any application that has not been finally approved by the Commission, a detailed description of every aspect of the application that the Commission has determined does not conform to the requirements of Order No. 2000.</text></paragraph> <paragraph id="H36D1AF0DBE684D068C1700224125ED23"><enum>(4)</enum><text>For any application that has not been finally approved by the Commission, an explanation by the Commission of why the items described pursuant to paragraph (3) constitute material noncompliance with the requirements of the Commission’s Order No. 2000 sufficient to justify denial of approval by the Commission.</text></paragraph> <paragraph id="HA096EAB0F521412684B7EDBAC5CED9CA"><enum>(5)</enum><text>For all regional transmission organization applications filed pursuant to the Commission’s Order No. 2000, whether finally approved or not—</text> <subparagraph id="H5C1113D57B8B4A888E6B68DE727B198D"><enum>(A)</enum><text>a discussion of that regional transmission organization’s efforts to minimize rate seams between itself and—</text> <clause id="H996282D614E7499E9140DC1FBEC8DB00"><enum>(i)</enum><text>other regional transmission organizations; and</text></clause> <clause id="H2F77EE51B3544D5793E513CBD7E253FA"><enum>(ii)</enum><text>entities not participating in a regional transmission organization;</text></clause></subparagraph> <subparagraph id="H00D38CAEAED74226AEBF9CBA5B431B9E"><enum>(B)</enum><text>a discussion of the impact of such seams on consumers and wholesale competition; and</text></subparagraph> <subparagraph id="HFC04B32FDDC64C148C311001EE523FB4"><enum>(C)</enum><text>a discussion of minimizing cost-shifting on consumers.</text></subparagraph></paragraph></section> <section id="HCE7BF65F04954D8C9800CCCEC1FEEB7"><enum>1234.</enum><header>Federal utility participation in Regional Transmission Organizations</header> <subsection id="H9093C1E2E01E45F08D4B730412356132"><enum>(a)</enum><header>Definitions</header><text>For purposes of this section—</text> <paragraph id="H65DAE09CFB694859B5EDE07E086F315"><enum>(1)</enum><header>Appropriate Federal regulatory authority</header><text>The term <term>appropriate Federal regulatory authority</term> means—</text> <subparagraph id="H9C56F6FADACC4A11B173AF9E45002F21"><enum>(A)</enum><text>with respect to a Federal power marketing agency (as defined in the Federal Power Act), the Secretary of Energy, except that the Secretary may designate the Administrator of a Federal power marketing agency to act as the appropriate Federal regulatory authority with respect to the transmission system of that Federal power marketing agency; and</text></subparagraph> <subparagraph id="HD5188319B3F14B119415FAF447C0033"><enum>(B)</enum><text>with respect to the Tennessee Valley Authority, the Board of Directors of the Tennessee Valley Authority.</text></subparagraph></paragraph> <paragraph id="H28306B921CB84B070002D88300B23464"><enum>(2)</enum><header>Federal utility</header><text>The term <term>Federal utility</term> means a Federal power marketing agency or the Tennessee Valley Authority.</text></paragraph> <paragraph id="HF1E45CDBBCD54DF990D2D782C4FE69B1"><enum>(3)</enum><header>Transmission system</header><text>The term <term>transmission system</term> means electric transmission facilities owned, leased, or contracted for by the United States and operated by a Federal utility.</text></paragraph></subsection> <subsection id="HB31CAF7376FA40E29EA768941F003184"><enum>(b)</enum><header>Transfer</header><text>The appropriate Federal regulatory authority is authorized to enter into a contract, agreement or other arrangement transferring control and use of all or part of the Federal utility’s transmission system to an RTO or ISO (as defined in the Federal Power Act), approved by the Federal Energy Regulatory Commission. Such contract, agreement or arrangement shall include—</text> <paragraph id="H8398ACD953DC48788F5C06C1ACF64912"><enum>(1)</enum><text>performance standards for operation and use of the transmission system that the head of the Federal utility determines necessary or appropriate, including standards that assure recovery of all the Federal utility’s costs and expenses related to the transmission facilities that are the subject of the contract, agreement or other arrangement; consistency with existing contracts and third-party financing arrangements; and consistency with said Federal utility’s statutory authorities, obligations, and limitations;</text></paragraph> <paragraph id="H7021425AB70540678E44B3E899DBEAF"><enum>(2)</enum><text>provisions for monitoring and oversight by the Federal utility of the RTO’s or ISO’s fulfillment of the terms and conditions of the contract, agreement or other arrangement, including a provision for the resolution of disputes through arbitration or other means with the regional transmission organization or with other participants, notwithstanding the obligations and limitations of any other law regarding arbitration; and</text></paragraph> <paragraph id="HE0BBD123F46045F3AAE2001256BCF198"><enum>(3)</enum><text>a provision that allows the Federal utility to withdraw from the RTO or ISO and terminate the contract, agreement or other arrangement in accordance with its terms.</text></paragraph><continuation-text continuation-text-level="subsection">Neither this section, actions taken pursuant to it, nor any other transaction of a Federal utility using an RTO or ISO shall confer upon the Federal Energy Regulatory Commission jurisdiction or authority over the Federal utility’s electric generation assets, electric capacity or energy that the Federal utility is authorized by law to market, or the Federal utility’s power sales activities.</continuation-text></subsection> <subsection id="H6DFCAEF7775544B6A19D8100601EDADB"><enum>(c)</enum><header>Existing statutory and other obligations</header> <paragraph id="H0E27CC398DCD421FBC813BA7C4E66FFD"><enum>(1)</enum><header>System operation requirements</header><text>No statutory provision requiring or authorizing a Federal utility to transmit electric power or to construct, operate or maintain its transmission system shall be construed to prohibit a transfer of control and use of its transmission system pursuant to, and subject to all requirements of subsection (b).</text></paragraph> <paragraph id="H1C5A93D7A38B472B9E8B627BBB79C7F6"><enum>(2)</enum><header>Other obligations</header><text>This subsection shall not be construed to—</text> <subparagraph id="HD20F9CFB6D464FE09B911C34D17DB152"><enum>(A)</enum><text>suspend, or exempt any Federal utility from, any provision of existing Federal law, including but not limited to any requirement or direction relating to the use of the Federal utility’s transmission system, environmental protection, fish and wildlife protection, flood control, navigation, water delivery, or recreation; or</text></subparagraph> <subparagraph id="H1342FBE899F34F2DA769DFCBEBCF9C00"><enum>(B)</enum><text>authorize abrogation of any contract or treaty obligation.</text></subparagraph></paragraph> <paragraph id="HE91DA18FAAE94D39BAED15149184401E"><enum>(3)</enum><header>Repeal</header><text>Section 311 of title III of Appendix B of the Act of October 27, 2000 (P.L. 106–377, section 1(a)(2); 114 Stat. 1441, 1441A–80; <external-xref legal-doc="usc" parsable-cite="usc/16/824n">16 U.S.C. 824n</external-xref>) is repealed.</text></paragraph></subsection></section> <section id="HBCBE1281435B49BB81EDAA30A05000ED"><enum>1235.</enum><header>Standard market design</header> <subsection id="HBE74ACE565A74CECB5C8147F21DD1C94"><enum>(a)</enum><header>Remand</header><text>The Commission’s proposed rulemaking entitled <quote>Remedying Undue Discrimination through Open Access Transmission Service and Standard Electricity Market Design</quote> (Docket No. RM01–12–000) (<quote>SMD NOPR</quote>) is remanded to the Commission for reconsideration. No final rule mandating a standard electricity market design pursuant to the proposed rulemaking, including any rule or order of general applicability within the scope of the proposed rulemaking, may be issued before October 31, 2006, or take effect before December 31, 2006. Any final rule issued by the Commission pursuant to the proposed rulemaking shall be preceded by a second notice of proposed rulemaking issued after the date of enactment of this Act and an opportunity for public comment.</text></subsection> <subsection id="HB387D2694DDD49DEBD9897EF282BACF8"><enum>(b)</enum><header>Savings clause</header><text>This section shall not be construed to modify or diminish any authority or obligation the Commission has under this Act, the Federal Power Act, or other applicable law, including, but not limited to, any authority to—</text> <paragraph id="H408CE73BEF1C43079FBF6038BF62C23B"><enum>(1)</enum><text>issue any rule or order (of general or particular applicability) pursuant to any such authority or obligation; or</text></paragraph> <paragraph id="HDCDD96D3E3A046CEA05D8EA0D987D6D"><enum>(2)</enum><text>act on a filing or filings by 1 or more transmitting utilities for the voluntary formation of a Regional Transmission Organization or Independent System Operator (as defined in the Federal Power Act) (and related market structures or rules) or voluntary modification of an existing Regional Transmission Organization or Independent System Operator (and related market structures or rules).</text></paragraph></subsection></section> <section id="HBDD568F46D57495F974516B5C6C3A46C"><enum>1236.</enum><header>Native load service obligation</header><text display-inline="no-display-inline">Part II of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824">16 U.S.C. 824 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="HC07E30D8253B40FFAD2C7CBAB5941AE"> <section id="H339179CCBBD7445585B4A9CA661113FC"><enum>217.</enum><header>Native load service obligation</header> <subsection id="H0AEF9DC284694E17B9BD4B84FAAD601"><enum>(a)</enum><header>Meeting service obligations</header> <paragraph display-inline="yes-display-inline" id="H60541B293EE64DE0A663BB000175BEB7"><enum>(1)</enum><text>Any load-serving entity that, as of the date of enactment of this section—</text> <subparagraph indent="up1" id="HBBE4540D40C147F6927201A809BD333D"><enum>(A)</enum><text>owns generation facilities, markets the output of Federal generation facilities, or holds rights under 1 or more wholesale contracts to purchase electric energy, for the purpose of meeting a service obligation, and</text></subparagraph> <subparagraph indent="up1" id="H0F54FF0CEDC444860051FB43509EDB5B"><enum>(B)</enum><text>by reason of ownership of transmission facilities, or 1 or more contracts or service agreements for firm transmission service, holds firm transmission rights for delivery of the output of such generation facilities or such purchased energy to meet such service obligation,</text></subparagraph></paragraph><continuation-text continuation-text-level="subsection">is entitled to use such firm transmission rights, or, equivalent tradable or financial transmission rights, in order to deliver such output or purchased energy, or the output of other generating facilities or purchased energy to the extent deliverable using such rights, to the extent required to meet its service obligation.</continuation-text> <paragraph indent="up1" id="H2B712B2BCA2D400DAC111C23D0E24BD0"><enum>(2)</enum><text>To the extent that all or a portion of the service obligation covered by such firm transmission rights or equivalent tradable or financial transmission rights is transferred to another load-serving entity, the successor load-serving entity shall be entitled to use the firm transmission rights or equivalent tradable or financial transmission rights associated with the transferred service obligation. Subsequent transfers to another load-serving entity, or back to the original load-serving entity, shall be entitled to the same rights.</text></paragraph> <paragraph indent="up1" id="H859518E2AA1E4BB08E5559A9805490CC"><enum>(3)</enum><text>The Commission shall exercise its authority under this Act in a manner that facilitates the planning and expansion of transmission facilities to meet the reasonable needs of load-serving entities to satisfy their service obligations.</text></paragraph></subsection> <subsection id="H85B82B8C903D451D9B1DBC605F767846"><enum>(b)</enum><header>Allocation of transmission rights</header><text>Nothing in this section shall affect any methodology approved by the Commission prior to September 15, 2003, for the allocation of transmission rights by an RTO or ISO that has been authorized by the Commission to allocate transmission rights.</text></subsection> <subsection id="HCEFFFBACEBA84E41A153383F3C629F6F"><enum>(c)</enum><header>Certain transmission rights</header><text>The Commission may exercise authority under this Act to make transmission rights not used to meet an obligation covered by subsection (a) available to other entities in a manner determined by the Commission to be just, reasonable, and not unduly discriminatory or preferential.</text></subsection> <subsection id="HCF5D493BAEBA40538D43FCCE1B769BCC"><enum>(d)</enum><header>Obligation to build</header><text>Nothing in this Act shall relieve a load-serving entity from any obligation under State or local law to build transmission or distribution facilities adequate to meet its service obligations.</text></subsection> <subsection id="HC8D6E417486F44138B8D868B35002BEC"><enum>(e)</enum><header>Contracts</header><text>Nothing in this section shall provide a basis for abrogating any contract or service agreement for firm transmission service or rights in effect as of the date of the enactment of this subsection.</text></subsection> <subsection id="H92FBA33FAFD6499BABEB47F02534749"><enum>(f)</enum><header>Water pumping facilities</header><text>The Commission shall ensure that any entity described in section 201(f) that owns transmission facilities used predominately to support its own water pumping facilities shall have, with respect to such facilities, protections for transmission service comparable to those provided to load-serving entities pursuant to this section.</text></subsection> <subsection id="H5444ABBCCB864D4E8743B28C6DBC4B1F"><enum>(g)</enum><header>ERCOT</header><text>This section shall not apply within the area referred to in section 212(k)(2)(A).</text></subsection> <subsection id="H0BCDE7C5B91242E9007062ACDC62579"><enum>(h)</enum><header>Jurisdiction</header><text>This section does not authorize the Commission to take any action not otherwise within its jurisdiction.</text></subsection> <subsection id="HAF85B7936C9C43559DC71D3602C1EC70"><enum>(i)</enum><header>Effect of exercising rights</header><text>An entity that lawfully exercises rights granted under subsection (a) shall not be considered by such action as engaging in undue discrimination or preference under this Act.</text></subsection> <subsection id="HFDFD10601DB7471082E0905045840071"><enum>(j)</enum><header>TVA Area</header><text>For purposes of subsection (a)(1)(B), a load-serving entity that is located within the service area of the Tennessee Valley Authority and that has a firm wholesale power supply contract with the Tennessee Valley Authority shall be deemed to hold firm transmission rights for the transmission of such power.</text></subsection> <subsection id="H02FB846CDD5C4E3BADBC07FB50B400D0"><enum>(k)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="H575E6F9EFF0A4691852175F9606E46E0"><enum>(1)</enum><text>The term <term>distribution utility</term> means an electric utility that has a service obligation to end-users or to a State utility or electric cooperative that, directly or indirectly, through 1 or more additional State utilities or electric cooperatives, provides electric service to end-users.</text></paragraph> <paragraph id="H731A1501C44B4B189B7EA9A6E5E9D542"><enum>(2)</enum><text>The term <term>load-serving entity</term> means a distribution utility or an electric utility that has a service obligation.</text></paragraph> <paragraph id="H957BC6F3CDF7427800484528041E9B70"><enum>(3)</enum><text>The term <term>service obligation</term> means a requirement applicable to, or the exercise of authority granted to, an electric utility under Federal, State or local law or under long-term contracts to provide electric service to end-users or to a distribution utility.</text></paragraph> <paragraph id="HACB012A3426E4D07AECBC314BFFC53B4"><enum>(4)</enum><text>The term <term>State utility</term> means a State or any political subdivision of a State, or any agency, authority, or instrumentality of any 1 or more of the foregoing, or a corporation which is wholly owned, directly or indirectly, by any 1 or more of the foregoing, competent to carry on the business of developing, transmitting, utilizing or distributing power.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HB0A2BC6AD1C54AFCA485EB53AB5C9E9D"><enum>1237.</enum><header>Study on the benefits of economic dispatch</header> <subsection id="HCB7D1222634A4DCAA349B6E7F2419D60"><enum>(a)</enum><header>Study</header><text>The Secretary of Energy, in coordination and consultation with the States, shall conduct a study on—</text> <paragraph id="H4CF7A9F3FB81459CB0A0FEC9028C9BDA"><enum>(1)</enum><text>the procedures currently used by electric utilities to perform economic dispatch;</text></paragraph> <paragraph id="H303F38A5D1F741B8A0D8D56165004467"><enum>(2)</enum><text>identifying possible revisions to those procedures to improve the ability of nonutility generation resources to offer their output for sale for the purpose of inclusion in economic dispatch; and</text></paragraph> <paragraph id="H71E266F3D9594B00AD9200A630589E1"><enum>(3)</enum><text>the potential benefits to residential, commercial, and industrial electricity consumers nationally and in each state if economic dispatch procedures were revised to improve the ability of nonutility generation resources to offer their output for inclusion in economic dispatch.</text></paragraph></subsection> <subsection id="H48D906F2636D4474987B2489E7AA5E67"><enum>(b)</enum><header>Definition</header><text>The term <term>economic dispatch</term> when used in this section means the operation of generation facilities to produce energy at the lowest cost to reliably serve consumers, recognizing any operational limits of generation and transmission facilities.</text></subsection> <subsection id="H075FEF681B374545A0E8E2F7E00911F"><enum>(c)</enum><header>Report to Congress and the States</header><text>Not later than 90 days after the date of enactment of this Act, and on a yearly basis following, the Secretary of Energy shall submit a report to Congress and the States on the results of the study conducted under subsection (a), including recommendations to Congress and the States for any suggested legislative or regulatory changes.</text></subsection></section></subtitle> <subtitle id="HEB9E4C6512494C26904F40C2D8DF1975"><enum>D</enum><header>Transmission rate reform</header> <section id="HBA466CA47A6342DD88F6001E35CF57C0"><enum>1241.</enum><header>Transmission infrastructure investment</header><text display-inline="no-display-inline">Part II of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824">16 U.S.C. 824 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H23E43E4050C94FA8A3BAA25998E55B16"> <section id="H82C54529192140409ED43761A7CA8600"><enum>218.</enum><header>Transmission infrastructure investment</header> <subsection id="HBAFC05F6522945789DC3CB007DAAC4B3"><enum>(a)</enum><header>Rulemaking requirement</header><text>Within 1 year after the enactment of this section, the Commission shall establish, by rule, incentive-based (including, but not limited to performance-based) rate treatments for the transmission of electric energy in interstate commerce by public utilities for the purpose of benefiting consumers by ensuring reliability and reducing the cost of delivered power by reducing transmission congestion. Such rule shall—</text> <paragraph id="H4C09BEA63950489B80A045E6953D3591"><enum>(1)</enum><text>promote reliable and economically efficient transmission and generation of electricity by promoting capital investment in the enlargement, improvement, maintenance and operation of facilities for the transmission of electric energy in interstate commerce;</text></paragraph> <paragraph id="HF7356ADACBD64265BD6CA740E296EEE"><enum>(2)</enum><text>provide a return on equity that attracts new investment in transmission facilities (including related transmission technologies);</text></paragraph> <paragraph id="HE374A95C67564E00881B24109F51F9B7"><enum>(3)</enum><text>encourage deployment of transmission technologies and other measures to increase the capacity and efficiency of existing transmission facilities and improve the operation of such facilities; and</text></paragraph> <paragraph id="H351AAE14120549AEB028E5E97FF1BF9C"><enum>(4)</enum><text>allow recovery of all prudently incurred costs necessary to comply with mandatory reliability standards issued pursuant to section 215 of this Act.</text></paragraph><continuation-text continuation-text-level="subsection">The Commission may, from time to time, revise such rule.</continuation-text></subsection> <subsection id="H1273F9F711BB4D0D809055D8936EEF0"><enum>(b)</enum><header>Additional incentives for RTO participation</header><text>In the rule issued under this section, the Commission shall, to the extent within its jurisdiction, provide for incentives to each transmitting utility or electric utility that joins a Regional Transmission Organization or Independent System Operator. Incentives provided by the Commission pursuant to such rule shall include—</text> <paragraph id="HD7E1EC90F7A74944AC429E775ED95B17"><enum>(1)</enum><text>recovery of all prudently incurred costs to develop and participate in any proposed or approved RTO, ISO, or independent transmission company;</text></paragraph> <paragraph id="H50639630DE4F4A5D89DC02F4767D52FA"><enum>(2)</enum><text>recovery of all costs previously approved by a State commission which exercised jurisdiction over the transmission facilities prior to the utility’s participation in the RTO or ISO, including costs necessary to honor preexisting transmission service contracts, in a manner which does not reduce the revenues the utility receives for transmission services for a reasonable transition period after the utility joins the RTO or ISO;</text></paragraph> <paragraph id="HFE0F304D98B647A992A8BDC497795CD2"><enum>(3)</enum><text>recovery as an expense in rates of the costs prudently incurred to conduct transmission planning and reliability activities, including the costs of participating in RTO, ISO and other regional planning activities and design, study and other precertification costs involved in seeking permits and approvals for proposed transmission facilities;</text></paragraph> <paragraph id="H77E54E316EF54C868605F9426DADE26"><enum>(4)</enum><text>a current return in rates for construction work in progress for transmission facilities and full recovery of prudently incurred costs for constructing transmission facilities;</text></paragraph> <paragraph id="H1DFBADCAC0084A14A1AE07B17FB23CE9"><enum>(5)</enum><text>formula transmission rates; and</text></paragraph> <paragraph id="H529B3CBFA552479992C23716CC4B656E"><enum>(6)</enum><text>a maximum 15 year accelerated depreciation on new transmission facilities for rate treatment purposes.</text></paragraph><continuation-text continuation-text-level="subsection">The Commission shall ensure that any costs recoverable pursuant to this subsection may be recovered by such utility through the transmission rates charged by such utility or through the transmission rates charged by the RTO or ISO that provides transmission service to such utility.</continuation-text></subsection> <subsection id="HEB957F358250422784CD48A10027DFF"><enum>(c)</enum><header>Just and reasonable rates</header><text>All rates approved under the rules adopted pursuant to this section, including any revisions to such rules, are subject to the requirement of sections 205 and 206 that all rates, charges, terms, and conditions be just and reasonable and not unduly discriminatory or preferential.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HD9C8D36DC7D74DA4B1FF839391125728"><enum>1242.</enum><header>Voluntary transmission pricing plans</header><text display-inline="no-display-inline">Part II of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824">16 U.S.C. 824 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H51D384EA69324B9EBD9546EDABE0724E"> <section id="HD268072284054915B9C478E090164B32"><enum>219.</enum><header>Voluntary transmission pricing plans</header> <subsection id="H66B60CA7796A4D58BACFEB06AB6011FA"><enum>(a)</enum><header>In general</header><text>Any transmission provider, including an RTO or ISO, may submit to the Commission a plan or plans under section 205 containing the criteria for determining the person or persons that will be required to pay for any construction of new transmission facilities or expansion, modification or upgrade of transmission facilities (in this section referred to as <quote>transmission service related expansion</quote>) or new generator interconnection.</text></subsection> <subsection id="H102CBEB436DA4F9ABDDABFA8ED42B74"><enum>(b)</enum><header>Voluntary transmission pricing plans</header> <paragraph display-inline="yes-display-inline" id="HA306836491894E3A993330395CC3FCF3"><enum>(1)</enum><text>Any plan or plans submitted under subsection (a) shall specify the method or methods by which costs may be allocated or assigned. Such methods may include, but are not limited to:</text> <subparagraph indent="up1" id="H701E0DE29AAF4641BBEBFE3D2D47633D"><enum>(A)</enum><text>directly assigned;</text></subparagraph> <subparagraph indent="up1" id="HDD9B9A21E3F2464586EF9DFEA57715A5"><enum>(B)</enum><text>participant funded; or</text></subparagraph> <subparagraph indent="up1" id="H16A0C15EA2624B2995F5202475580056"><enum>(C)</enum><text>rolled into regional or sub-regional rates.</text></subparagraph></paragraph> <paragraph indent="up1" id="H2107C72EE9A445C8BDDBA7F6E86248FB"><enum>(2)</enum><text>FERC shall approve a plan or plans submitted under subparagraph (B) of paragraph (1) if such plan or plans—</text> <subparagraph id="H144758B8097D4193A600F7D4D5ABFAB9"><enum>(A)</enum><text>result in rates that are just and reasonable and not unduly discriminatory or preferential consistent with section 205; and</text></subparagraph> <subparagraph id="H26B5190AE6584541B63C329FD7DE80B9"><enum>(B)</enum><text>ensure that the costs of any transmission service related expansion or new generator interconnection not required to meet applicable reliability standards established under section 215 are assigned in a fair manner, meaning that those who benefit from the transmission service related expansion or new generator interconnection pay an appropriate share of the associated costs, provided that—</text> <clause id="HC58DB7C78EFA4811A0D779B78D889F24"><enum>(i)</enum><text>costs may not be assigned or allocated to an electric utility if the native load customers of that utility would not have required such transmission service related expansion or new generator interconnection absent the request for transmission service related expansion or new generator interconnection that necessitated the investment;</text></clause> <clause id="HEFDC94FF8FEC4ECB85E882E0D7C8D890"><enum>(ii)</enum><text>the party requesting such transmission service related expansion or new generator interconnection shall not be required to pay for both—</text> <subclause id="H08DAF5EB11D2476DA3A6A4D15431A330"><enum>(I)</enum><text>the assigned cost of the upgrade; and</text></subclause> <subclause id="H54D7A62230E34DADAC07A3937C881D97"><enum>(II)</enum><text>the difference between—</text> <item id="HD523CE8D06144F4B8FA46B80FFB11EA5"><enum>(aa)</enum><text>the embedded cost paid for transmission services (including the cost of the requested upgrade); and</text></item> <item id="H8651E0748C4540FD92DC3F2EAA4BA9FB"><enum>(bb)</enum><text>the embedded cost that would have been paid absent the upgrade; and</text></item> <item indent="up2" id="H0D6F679428B54D10B937EE616009B93C"><enum>(iii)</enum><text>the party or parties who pay for facilities necessary for the transmission service related expansion or new generator interconnection receives full compensation for its costs for the participant funded facilities in the form of—</text></item></subclause> <subclause id="H2DF17189C2004646B85FC24900C3283F"><enum>(I)</enum><text>monetary credit equal to the cost of the participant funded facilities (accounting for the time value of money at the Gross Domestic Product deflator), which credit shall be pro-rated in equal installments over a period of not more than 30 years and shall not exceed in total the amount of the initial investment, against the transmission charges that the funding entity or its assignee is otherwise assessed by the transmission provider;</text></subclause> <subclause id="H0F9176D3EE054B7683F5A589F8C84963"><enum>(II)</enum><text>appropriate financial or physical rights; or</text></subclause> <subclause id="H25DF9C04F216483BA9A9EC47725925F5"><enum>(III)</enum><text>any other method of cost recovery or compensation approved by the Commission.</text></subclause></clause></subparagraph></paragraph> <paragraph indent="up1" id="HC0412DC455124F3B9FCDE200ADA020F4"><enum>(3)</enum><text>A plan submitted under this section shall apply only to—</text> <subparagraph id="HFC24E02882B2484E8298C4F4A08CCF00"><enum>(A)</enum><text>a contract or interconnection agreement executed or filed with the Commission after the date of enactment of this section; or</text></subparagraph> <subparagraph id="HC850191F67444BDCA567FDFF889246A1"><enum>(B)</enum><text>an interconnection agreement pending rehearing as of November 1, 2003.</text></subparagraph></paragraph> <paragraph indent="up1" id="HA32E444311E34CB3A524FCBCD537D949"><enum>(4)</enum><text>Nothing in this section diminishes or alters the rights of individual members of an RTO or ISO under this Act.</text></paragraph> <paragraph indent="up1" id="H7544FA2299D64FB7B0B92D4F57EEEEBB"><enum>(5)</enum><text>Nothing in this section shall affect the allocation of costs or the cost methodology employed by an RTO or ISO authorized by the Commission to allocate costs (including costs for transmission service related expansion or new generator interconnection) prior to the date of enactment of this section.</text></paragraph> <paragraph indent="up1" id="H99C18CE78595432EA61B3FB2A085F274"><enum>(6)</enum><text>This section shall not apply within the area referred to in section 212(k)(2)(A).</text></paragraph> <paragraph indent="up1" id="H7F9D22895EBF42D4A16EEEAF6F3787"><enum>(7)</enum><text>The term <term>transmission provider</term> means a public utility that owns or operates facilities that provide interconnection or transmission service in interstate commerce.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section></subtitle> <subtitle id="HBDA958BC80194DEAB48D2EB54E1C5911"><enum>E</enum><header>Amendments to PURPA</header> <section id="H5332B23CC6B9482A858E61A632A6BAE7"><enum>1251.</enum><header>Net metering and additional standards</header> <subsection id="H90CE767BB3794770933052CAD838F9ED"><enum>(a)</enum><header>Adoption of standards</header><text>Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2621">16 U.S.C. 2621(d)</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H885C08045F2B4A9BA040995709778930"> <paragraph id="H6611BB8DE5854881922D54636EEEAE41"><enum>(11)</enum><header>Net metering</header><text>Each electric utility shall make available upon request net metering service to any electric consumer that the electric utility serves. For purposes of this paragraph, the term <term>net metering service</term> means service to an electric consumer under which electric energy generated by that electric consumer from an eligible on-site generating facility and delivered to the local distribution facilities may be used to offset electric energy provided by the electric utility to the electric consumer during the applicable billing period.</text></paragraph> <paragraph id="H81E7F7317A334891B7FB796D71866DCB"><enum>(12)</enum><header>Fuel sources</header><text>Each electric utility shall develop a plan to minimize dependence on 1 fuel source and to ensure that the electric energy it sells to consumers is generated using a diverse range of fuels and technologies, including renewable technologies.</text></paragraph> <paragraph id="H1856174400D84F248BD14EA6DAB3128"><enum>(13)</enum><header>Fossil fuel generation efficiency</header><text>Each electric utility shall develop and implement a 10-year plan to increase the efficiency of its fossil fuel generation.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HBC14BCF23A82469C90C2CE7CD7071099"><enum>(b)</enum><header>Compliance</header> <paragraph id="H335EA225501B4E5A8C7B7FBD7BEBA1F"><enum>(1)</enum><header>Time limitations</header><text>Section 112(b) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2622">16 U.S.C. 2622(b)</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H0CD478B5F6DB49A089171C6D00908606"> <paragraph indent="up1" id="H027E4E6C370A4284A376C478A061FAA"><enum>(3)</enum> <subparagraph display-inline="yes-display-inline" id="HE89B587917FD4057901E6776AFF4D3EC"><enum>(A)</enum><text>Not later than 2 years after the enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated electric utility shall commence the consideration referred to in section 111, or set a hearing date for such consideration, with respect to each standard established by paragraphs (11) through (13) of section 111(d).</text></subparagraph> <subparagraph indent="up1" id="H18B03BA5378B4BAC884489B1E71A669"><enum>(B)</enum><text>Not later than 3 years after the date of the enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall complete the consideration, and shall make the determination, referred to in section 111 with respect to each standard established by paragraphs (11) through (13) of section 111(d).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HB3BE3417B24147DDBED1A6C1D32B8E4B"><enum>(2)</enum><header>Failure to comply</header><text>Section 112(c) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2622">16 U.S.C. 2622(c)</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H64C53955049A4F9DB9D65B6C10168185"><quoted-block-continuation-text quoted-block-continuation-text-level="subsection">In the case of each standard established by paragraphs (11) through (13) of section 111(d), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be a reference to the date of enactment of such paragraphs (11) through (13).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H2AA57382A4C543BBA2513B22FC41B41"><enum>(3)</enum><header>Prior State actions</header> <subparagraph id="HD63F9C4ADDEC49DE92102283F6275E24"><enum>(A)</enum><header>In general</header><text>Section 112 of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2622">16 U.S.C. 2622</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="HFDCE038542EB42709F77D426C460186E"> <subsection id="H0B03333BFAB04E87B8D5CC9E1285A665"><enum>(d)</enum><header>Prior State actions</header><text>Subsections (b) and (c) of this section shall not apply to the standards established by paragraphs (11) through (13) of section 111(d) in the case of any electric utility in a State if, before the enactment of this subsection—</text> <paragraph id="H35D3FA7F149A4013BBDD58A9EA76BDA0"><enum>(1)</enum><text>the State has implemented for such utility the standard concerned (or a comparable standard);</text></paragraph> <paragraph id="H678F3BF94DA24B168583B701BE945F6B"><enum>(2)</enum><text>the State regulatory authority for such State or relevant nonregulated electric utility has conducted a proceeding to consider implementation of the standard concerned (or a comparable standard) for such utility; or</text></paragraph> <paragraph id="HB6016037580E48C6B3BCF731A73D87BB"><enum>(3)</enum><text>the State legislature has voted on the implementation of such standard (or a comparable standard) for such utility.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H797779F9942E4DC5ADD52508A65050A0"><enum>(B)</enum><header>Cross reference</header><text>Section 124 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/16/2634">16 U.S.C. 2634</external-xref>) is amended by adding the following at the end thereof: <quote>In the case of each standard established by paragraphs (11) through (13) of section 111(d), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be a reference to the date of enactment of such paragraphs (11) through (13).</quote>.</text></subparagraph></paragraph></subsection></section> <section id="HA28EC708DD6043048DABF92F2FF3779F"><enum>1252.</enum><header>Smart metering</header> <subsection id="HEA04AC94BCF840739BB41CC76861B08"><enum>(a)</enum><header>In general</header><text>Section 111(d) of the Public Utilities Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2621">16 U.S.C. 2621(d)</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H4AC84C19B3434AF7B24D7B5B80AA1253"> <paragraph id="HC9B8EA5E52E24A8B82AFE057C36566C"><enum>(14)</enum><header>Time-based metering and communications</header> <subparagraph id="HF9C3A58E9069420581129100EB69A612"><enum>(A)</enum><text>Not later than 18 months after the date of enactment of this paragraph, each electric utility shall offer each of its customer classes, and provide individual customers upon customer request, a time-based rate schedule under which the rate charged by the electric utility varies during different time periods and reflects the variance, if any, in the utility’s costs of generating and purchasing electricity at the wholesale level. The time-based rate schedule shall enable the electric consumer to manage energy use and cost through advanced metering and communications technology.</text></subparagraph> <subparagraph id="H02CBFA36DB4F4FA683A1D8292647BC58"><enum>(B)</enum><text>The types of time-based rate schedules that may be offered under the schedule referred to in subparagraph (A) include, among others—</text> <clause id="HA4F96C1EA22B45099FC3B87031FED2CD"><enum>(i)</enum><text>time-of-use pricing whereby electricity prices are set for a specific time period on an advance or forward basis, typically not changing more often than twice a year, based on the utility’s cost of generating and/or purchasing such electricity at the wholesale level for the benefit of the consumer. Prices paid for energy consumed during these periods shall be pre-established and known to consumers in advance of such consumption, allowing them to vary their demand and usage in response to such prices and manage their energy costs by shifting usage to a lower cost period or reducing their consumption overall;</text></clause> <clause id="H1457E005676D4C1C90ED1B8916BAC6D"><enum>(ii)</enum><text>critical peak pricing whereby time-of-use prices are in effect except for certain peak days, when prices may reflect the costs of generating and/or purchasing electricity at the wholesale level and when consumers may receive additional discounts for reducing peak period energy consumption; and</text></clause> <clause id="HFE1D6A1B79D34D76AF4F4930DCA14546"><enum>(iii)</enum><text>real-time pricing whereby electricity prices are set for a specific time period on an advanced or forward basis, reflecting the utility’s cost of generating and/or purchasing electricity at the wholesale level, and may change as often as hourly.</text></clause></subparagraph> <subparagraph id="HA317D69A769642DC88CCE37F7DC500E0"><enum>(C)</enum><text>Each electric utility subject to subparagraph (A) shall provide each customer requesting a time-based rate with a time-based meter capable of enabling the utility and customer to offer and receive such rate, respectively.</text></subparagraph> <subparagraph id="H78389199B30848DF8781D6EA1E97946F"><enum>(D)</enum><text>For purposes of implementing this paragraph, any reference contained in this section to the date of enactment of the Public Utility Regulatory Policies Act of 1978 shall be deemed to be a reference to the date of enactment of this paragraph.</text></subparagraph> <subparagraph id="H8E896E92E59B443BB92E86A4847B5524"><enum>(E)</enum><text>In a State that permits third-party marketers to sell electric energy to retail electric consumers, such consumers shall be entitled to receive the same time-based metering and communications device and service as a retail electric consumer of the electric utility.</text></subparagraph> <subparagraph id="HF7985F0ED93B40669542824E8B20768E"><enum>(F)</enum><text>Notwithstanding subsections (b) and (c) of section 112, each State regulatory authority shall, not later than 18 months after the date of enactment of this paragraph conduct an investigation in accordance with section 115(i) and issue a decision whether it is appropriate to implement the standards set out in subparagraphs (A) and (C).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H2E1C8D5B118A42DEAE486335DA8ECAE8"><enum>(b)</enum><header>State investigation of demand response and time-based metering</header><text>Section 115 of the Public Utilities Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2625">16 U.S.C. 2625</external-xref>) is amended as follows:</text> <paragraph id="H1D9AC978DD2B4E3BB46216AB409668E8"><enum>(1)</enum><text>By inserting in subsection (b) after the phrase <quote>the standard for time-of-day rates established by section 111(d)(3)</quote> the following: <quote>and the standard for time-based metering and communications established by section 111(d)(14)</quote>.</text></paragraph> <paragraph id="H416185B0B62F4FA3BBBA4CDA73959CE"><enum>(2)</enum><text>By inserting in subsection (b) after the phrase <quote>are likely to exceed the metering</quote> the following: <quote>and communications</quote>.</text></paragraph> <paragraph id="H202A0777DF5F4D308E9BE3A2D09FBB3"><enum>(3)</enum><text>By adding the at the end the following:</text> <quoted-block id="H24D7AE7C8AEC4237BCC2196923BFCB70"> <subsection id="HEC9D6B03FD094C2AB001F98AB960083"><enum>(i)</enum><header>Time-based metering and communications</header><text>In making a determination with respect to the standard established by section 111(d)(14), the investigation requirement of section 111(d)(14)(F) shall be as follows: Each State regulatory authority shall conduct an investigation and issue a decision whether or not it is appropriate for electric utilities to provide and install time-based meters and communications devices for each of their customers which enable such customers to participate in time-based pricing rate schedules and other demand response programs.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H24C48AE4D97D45CFB8AD49EB6C08F37"><enum>(c)</enum><header>Federal assistance on demand response</header><text>Section 132(a) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2642">16 U.S.C. 2642(a)</external-xref>) is amended by striking <quote>and</quote> at the end of paragraph (3), striking the period at the end of paragraph (4) and inserting <quote>; and</quote>, and by adding the following at the end thereof:</text> <quoted-block id="H069B9A19E213486394D8C45CFBD22D35"> <paragraph id="HA46A952FDD4A4AC69FD2B36659F6413B"><enum>(5)</enum><text>technologies, techniques, and rate-making methods related to advanced metering and communications and the use of these technologies, techniques and methods in demand response programs.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H49C28D0F2FE14C4C8165973FB2C0BD5"><enum>(d)</enum><header>Federal guidance</header><text>Section 132 of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2642">16 U.S.C. 2642</external-xref>) is amended by adding the following at the end thereof:</text> <quoted-block id="HBC0A7969F17748ABA287B5A07C6E84AB"> <subsection id="HC409BCC9BEBF49FA95A4AB5B570041A0"><enum>(d)</enum><header>Demand response</header><text>The Secretary shall be responsible for—</text> <paragraph id="H8DB6AAD70B0D4D3A8355C74247931CC8"><enum>(1)</enum><text>educating consumers on the availability, advantages, and benefits of advanced metering and communications technologies, including the funding of demonstration or pilot projects;</text></paragraph> <paragraph id="H78078BB2BD874701B8022C26DD8CAA"><enum>(2)</enum><text>working with States, utilities, other energy providers and advanced metering and communications experts to identify and address barriers to the adoption of demand response programs; and</text></paragraph> <paragraph id="H7793C042EEB34915BD40FAE8145396B0"><enum>(3)</enum><text>not later than 180 days after the date of enactment of the Energy Policy Act of 2003, providing Congress with a report that identifies and quantifies the national benefits of demand response and makes a recommendation on achieving specific levels of such benefits by January 1, 2005.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H984BAA0D68D64A6CAA5C8ECA77DE86D6"><enum>(e)</enum><header>Demand response and regional coordination</header> <paragraph id="H4C29CADBB64B49D781163DDC472CF4C"><enum>(1)</enum><header>In general</header><text>It is the policy of the United States to encourage States to coordinate, on a regional basis, State energy policies to provide reliable and affordable demand response services to the public.</text></paragraph> <paragraph id="H58A0DD202FDC42E9B53E1007E1059EAA"><enum>(2)</enum><header>Technical assistance</header><text>The Secretary of Energy shall provide technical assistance to States and regional organizations formed by 2 or more States to assist them in—</text> <subparagraph id="H4CC106B5818B422287FCD2909C2C7CD4"><enum>(A)</enum><text>identifying the areas with the greatest demand response potential;</text></subparagraph> <subparagraph id="HD00E51CE05DE4AC7A2C71B3500C0F700"><enum>(B)</enum><text>identifying and resolving problems in transmission and distribution networks, including through the use of demand response;</text></subparagraph> <subparagraph id="H881A70FF786A4C93B26DFCEEAFE832A"><enum>(C)</enum><text>developing plans and programs to use demand response to respond to peak demand or emergency needs; and</text></subparagraph> <subparagraph id="H90617224747B4A6382BDC13986ECCCE"><enum>(D)</enum><text>identifying specific measures consumers can take to participate in these demand response programs.</text></subparagraph></paragraph> <paragraph id="H27FCE826F4CD4B18810400E52F0267D1"><enum>(3)</enum><header>Report</header><text>Not later than 1 year after the date of enactment of the Energy Policy Act of 2003, the Commission shall prepare and publish an annual report, by appropriate region, that assesses demand response resources, including those available from all consumer classes, and which identifies and reviews—</text> <subparagraph id="HA385380B001547159BB89E22F64F2535"><enum>(A)</enum><text>saturation and penetration rate of advanced meters and communications technologies, devices and systems;</text></subparagraph> <subparagraph id="HAA97AEEC0DCC43F397A0E0BEF299CEE7"><enum>(B)</enum><text>existing demand response programs and time-based rate programs;</text></subparagraph> <subparagraph id="HD19CDA7B91E2459B8580244FAB58C924"><enum>(C)</enum><text>the annual resource contribution of demand resources;</text></subparagraph> <subparagraph id="H6444B41318A54D8583C79564517D6C2B"><enum>(D)</enum><text>the potential for demand response as a quantifiable, reliable resource for regional planning purposes; and</text></subparagraph> <subparagraph id="H38C142CCCACA43FF80FE2C00110038B1"><enum>(E)</enum><text>steps taken to ensure that, in regional transmission planning and operations, demand resources are provided equitable treatment as a quantifiable, reliable resource relative to the resource obligations of any load-serving entity, transmission provider, or transmitting party.</text></subparagraph></paragraph></subsection> <subsection id="HD51C7445E8EE46AFA87BD44281AD056C"><enum>(f)</enum><header>Federal encouragement of demand response devices</header><text>It is the policy of the United States that time-based pricing and other forms of demand response, whereby electricity customers are provided with electricity price signals and the ability to benefit by responding to them, shall be encouraged, and the deployment of such technology and devices that enable electricity customers to participate in such pricing and demand response systems shall be facilitated. It is further the policy of the United States that the benefits of such demand response that accrue to those not deploying such technology and devices, but who are part of the same regional electricity entity, shall be recognized.</text></subsection> <subsection id="H870700428B3649D291EA1D83013BD7AF"><enum>(g)</enum><header>Time limitations</header><text>Section 112(b) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2622">16 U.S.C. 2622(b)</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H43174C7DCA9E46E9998457867F00BDA7"> <paragraph id="H126A23BCA2E44ED497D15D768C9E89B7"><enum>(4)</enum> <subparagraph display-inline="yes-display-inline" id="H36C23B9B0FBA4BB58D3E2B829BF952D0"><enum>(A)</enum><text>Not later than 1 year after the enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated electric utility shall commence the consideration referred to in section 111, or set a hearing date for such consideration, with respect to the standard established by paragraph (14) of section 111(d).</text></subparagraph> <subparagraph indent="up1" id="HD620E302CFB1428BB69B14438200CCE1"><enum>(B)</enum><text>Not later than 2 years after the date of the enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall complete the consideration, and shall make the determination, referred to in section 111 with respect to the standard established by paragraph (14) of section 111(d).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HFA686E0E604A4B28B4104D8105405349"><enum>(h)</enum><header>Failure to comply</header><text>Section 112(c) of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2622">16 U.S.C. 2622(c)</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="HBA8439368CCD44D88600D4CDC4B37699"><quoted-block-continuation-text quoted-block-continuation-text-level="subsection">In the case of the standard established by paragraph (14) of section 111(d), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be a reference to the date of enactment of such paragraph (14).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H347D237CE5044C3D8631902B0021001D"><enum>(i)</enum><header>Prior State actions regarding smart metering standards</header> <paragraph id="H34596C109BED4630BB7E023F47D7543B"><enum>(1)</enum><header>In general</header><text>Section 112 of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2622">16 U.S.C. 2622</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="HD3B59806ED174E88B8B7101B5EDC7BEE"> <subsection id="H478FA88E37B54113BC514B60DE351BEF"><enum>(e)</enum><header>Prior State actions</header><text>Subsections (b) and (c) of this section shall not apply to the standard established by paragraph (14) of section 111(d) in the case of any electric utility in a State if, before the enactment of this subsection—</text> <paragraph id="HDBD3C33925AF4E5FBE00AEB900388014"><enum>(1)</enum><text>the State has implemented for such utility the standard concerned (or a comparable standard);</text></paragraph> <paragraph id="HE151D4A1E0B04A279CD6D05FD0C94B14"><enum>(2)</enum><text>the State regulatory authority for such State or relevant nonregulated electric utility has conducted a proceeding to consider implementation of the standard concerned (or a comparable standard) for such utility within the previous 3 years; or</text></paragraph> <paragraph id="H9050E6B764E5491B95D9F960024F5B8"><enum>(3)</enum><text>the State legislature has voted on the implementation of such standard (or a comparable standard) for such utility within the previous 3 years.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HA4AEEC58F5644ACAA27FCAB6A08547DD"><enum>(2)</enum><header>Cross reference</header><text>Section 124 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/16/2634">16 U.S.C. 2634</external-xref>) is amended by adding the following at the end thereof: <quote>In the case of the standard established by paragraph (14) of section 111(d), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be a reference to the date of enactment of such paragraph (14).</quote>.</text></paragraph></subsection></section> <section id="H0C182274781E4A669FA2DC43802FB9C"><enum>1253.</enum><header>Cogeneration and small power production purchase and sale requirements</header> <subsection id="H9252D5EE541847868B7D9E46D3C5AECD"><enum>(a)</enum><header>Termination of mandatory purchase and sale requirements</header><text>Section 210 of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/824a-3">16 U.S.C. 824a–3</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="HF9F0D033542C46BBA966B2D5443F2E9F"> <subsection id="H59FD6DE89EB44AECA005F5A749005144"><enum>(m)</enum><header>Termination of mandatory purchase and sale requirements</header> <paragraph id="H96837525BD2E4B5D8EB7A97C3B22A56C"><enum>(1)</enum><header>Obligation to purchase</header><text>After the date of enactment of this subsection, no electric utility shall be required to enter into a new contract or obligation to purchase electric energy from a qualifying cogeneration facility or a qualifying small power production facility under this section if the Commission finds that the qualifying cogeneration facility or qualifying small power production facility has nondiscriminatory access to—</text> <subparagraph id="HB109E377C27546D2B810E0ECB9D2AE02"><enum>(A)</enum> <clause display-inline="yes-display-inline" id="H70106CB9972F4640BCA399C7297B9FBA"><enum>(i)</enum><text>independently administered, auction-based day ahead and real time wholesale markets for the sale of electric energy; and (ii) wholesale markets for long-term sales of capacity and electric energy; or</text></clause></subparagraph> <subparagraph id="H0A933D452CD444EC94A616C5D76B2234"><enum>(B)</enum> <clause display-inline="yes-display-inline" id="H131B986BB196405AABA414FB9206089C"><enum>(i)</enum><text>transmission and interconnection services that are provided by a Commission-approved regional transmission entity and administered pursuant to an open access transmission tariff that affords nondiscriminatory treatment to all customers; and (ii) competitive wholesale markets that provide a meaningful opportunity to sell capacity, including long-term and short-term sales, and electric energy, including long-term, short-term and real-time sales, to buyers other than the utility to which the qualifying facility is interconnected. In determining whether a meaningful opportunity to sell exists, the Commission shall consider, among other factors, evidence of transactions within the relevant market; or</text></clause></subparagraph> <subparagraph id="H1DF7B739465040599BD023C5B9E686E5"><enum>(C)</enum><text>wholesale markets for the sale of capacity and electric energy that are, at a minimum, of comparable competitive quality as markets described in subparagraphs (A) and (B).</text></subparagraph></paragraph> <paragraph id="HB6F9F391CE2E4C1BA55EE57BC4399D69"><enum>(2)</enum><header>Revised purchase and sale obligation for new facilities</header> <subparagraph display-inline="yes-display-inline" id="HAFABDA233406491F86743BAE68E76D51"><enum>(A)</enum><text>After the date of enactment of this subsection, no electric utility shall be required pursuant to this section to enter into a new contract or obligation to purchase from or sell electric energy to a facility that is not an existing qualifying cogeneration facility unless the facility meets the criteria for qualifying cogeneration facilities established by the Commission pursuant to the rulemaking required by subsection (n).</text></subparagraph> <subparagraph indent="up1" id="H23B655857A8140C2A54745348DBBF184"><enum>(B)</enum><text>For the purposes of this paragraph, the term <term>existing qualifying cogeneration facility</term> means a facility that—</text> <clause id="H288B41D6D72A452EA3A2B8836CDB5B08"><enum>(i)</enum><text>was a qualifying cogeneration facility on the date of enactment of subsection (m); or</text></clause> <clause id="HA6030D5AB11D462EAA0011E45DAB00C8"><enum>(ii)</enum><text>had filed with the Commission a notice of self-certification, self recertification or an application for Commission certification under 18 C.F.R. 292.207 prior to the date on which the Commission issues the final rule required by subsection (n).</text></clause></subparagraph></paragraph> <paragraph id="H11D7843B72B54456A046BE047D77500"><enum>(3)</enum><header>Commission review</header><text>Any electric utility may file an application with the Commission for relief from the mandatory purchase obligation pursuant to this subsection on a service territory-wide basis. Such application shall set forth the factual basis upon which relief is requested and describe why the conditions set forth in subparagraphs (A), (B) or (C) of paragraph (1) of this subsection have been met. After notice, including sufficient notice to potentially affected qualifying cogeneration facilities and qualifying small power production facilities, and an opportunity for comment, the Commission shall make a final determination within 90 days of such application regarding whether the conditions set forth in subparagraphs (A), (B) or (C) of paragraph (1) have been met.</text></paragraph> <paragraph id="HB32F7125A9404FE283A722E21F6F69F4"><enum>(4)</enum><header>Reinstatement of obligation to purchase</header><text>At any time after the Commission makes a finding under paragraph (3) relieving an electric utility of its obligation to purchase electric energy, a qualifying cogeneration facility, a qualifying small power production facility, a State agency, or any other affected person may apply to the Commission for an order reinstating the electric utility’s obligation to purchase electric energy under this section. Such application shall set forth the factual basis upon which the application is based and describe why the conditions set forth in subparagraphs (A), (B) or (C) of paragraph (1) of this subsection are no longer met. After notice, including sufficient notice to potentially affected utilities, and opportunity for comment, the Commission shall issue an order within 90 days of such application reinstating the electric utility’s obligation to purchase electric energy under this section if the Commission finds that the conditions set forth in subparagraphs (A), (B) or (C) of paragraph (1) which relieved the obligation to purchase, are no longer met.</text></paragraph> <paragraph id="H859D1A1F71D24EAF807637B5413D5C98"><enum>(5)</enum><header>Obligation to sell</header><text>After the date of enactment of this subsection, no electric utility shall be required to enter into a new contract or obligation to sell electric energy to a qualifying cogeneration facility or a qualifying small power production facility under this section if the Commission finds that—</text> <subparagraph id="HC89A98982D7A444A8EA7050063AB4BC5"><enum>(A)</enum><text>competing retail electric suppliers are willing and able to sell and deliver electric energy to the qualifying cogeneration facility or qualifying small power production facility; and</text></subparagraph> <subparagraph id="H84B49422BEAD414E95DD8B969068382C"><enum>(B)</enum><text>the electric utility is not required by State law to sell electric energy in its service territory.</text></subparagraph></paragraph> <paragraph id="H957FCAE462BE4E02A31D73E3AB2B2FEE"><enum>(6)</enum><header>No effect on existing rights and remedies</header><text>Nothing in this subsection affects the rights or remedies of any party under any contract or obligation, in effect or pending approval before the appropriate State regulatory authority or non-regulated electric utility on the date of enactment of this subsection, to purchase electric energy or capacity from or to sell electric energy or capacity to a qualifying cogeneration facility or qualifying small power production facility under this Act (including the right to recover costs of purchasing electric energy or capacity).</text></paragraph> <paragraph id="H22F832771E8C45A6815E971168F50000"><enum>(7)</enum><header>Recovery of costs</header> <subparagraph display-inline="yes-display-inline" id="HA6231758ACE64CC1BFDDBCCEBB00D050"><enum>(A)</enum><text>The Commission shall issue and enforce such regulations as are necessary to ensure that an electric utility that purchases electric energy or capacity from a qualifying cogeneration facility or qualifying small power production facility in accordance with any legally enforceable obligation entered into or imposed under this section recovers all prudently incurred costs associated with the purchase.</text></subparagraph> <subparagraph indent="up1" id="HC3A199094A7D458CAB61DEDB1064737"><enum>(B)</enum><text>A regulation under subparagraph (A) shall be enforceable in accordance with the provisions of law applicable to enforcement of regulations under the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/791a">16 U.S.C. 791a et seq.</external-xref>).</text></subparagraph></paragraph></subsection> <subsection id="H1888005544364C078CAFBF82BC396F84"><enum>(n)</enum><header>Rulemaking for new qualifying facilities</header> <paragraph display-inline="yes-display-inline" id="H638476BBCA244AE982B7B09769CE68E0"><enum>(1)</enum> <subparagraph display-inline="yes-display-inline" id="H5AB5E8016A4C4321907FC9029E8026BA"><enum>(A)</enum><text>Not later than 180 days after the date of enactment of this section, the Commission shall issue a rule revising the criteria in 18 C.F.R. 292.205 for new qualifying cogeneration facilities seeking to sell electric energy pursuant to section 210 of this Act to ensure—</text> <clause indent="up2" id="HF0D98BF5B9A7441F9D8F1ED793D1A126"><enum>(i)</enum><text>that the thermal energy output of a new qualifying cogeneration facility is used in a productive and beneficial manner;</text></clause> <clause indent="up2" id="HBF80190823FC4386B83DFEA705E5BAF0"><enum>(ii)</enum><text>the electrical, thermal, and chemical output of the cogeneration facility is used fundamentally for industrial, commercial, or institutional purposes and is not intended fundamentally for sale to an electric utility, taking into account technological, efficiency, economic, and variable thermal energy requirements, as well as State laws applicable to sales of electric energy from a qualifying facility to its host facility; and</text></clause> <clause indent="up2" id="HE2E3E36B75ED4CF79070CD71B5F168E3"><enum>(iii)</enum><text>continuing progress in the development of efficient electric energy generating technology.</text></clause></subparagraph> <subparagraph indent="up2" id="H511D73A954834F2F8129B10010D6DB79"><enum>(B)</enum><text>The rule issued pursuant to section (n)(1)(A) shall be applicable only to facilities that seek to sell electric energy pursuant to section 210 of this Act. For all other purposes, except as specifically provided in section (m)(2)(A), qualifying facility status shall be determined in accordance with the rules and regulations of this Act.</text></subparagraph></paragraph> <paragraph indent="up1" id="H174E2A7F64D64805AF864E007452584C"><enum>(2)</enum><text>Notwithstanding rule revisions under paragraph (1), the Commission’s criteria for qualifying cogeneration facilities in effect prior to the date on which the Commission issues the final rule required by paragraph (1) shall continue to apply to any cogeneration facility that—</text> <subparagraph id="HA669793A927442349F0129642CAA2F26"><enum>(A)</enum><text>was a qualifying cogeneration facility on the date of enactment of subsection (m), or</text></subparagraph> <subparagraph id="HCF97EEDEC57E431B99163251FA01B1D8"><enum>(B)</enum><text>had filed with the Commission a notice of self-certification, self-recertification or an application for Commission certification under 18 C.F.R. 292.207 prior to the date on which the Commission issues the final rule required by paragraph (1).</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HBD3AA4F293604E8EB761F4DEE04812B2"><enum>(b)</enum><header>Elimination of ownership limitations</header> <paragraph id="H19F36706133946E29BBC33A1FFC55DBD"><enum>(1)</enum><header>Qualifying small power production facility</header><text>Section 3(17)(C) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/796">16 U.S.C. 796(17)(C)</external-xref>) is amended to read as follows:</text> <quoted-block id="HFD52E15F656E4AEA9FC56B3BF6F3DC7F"> <subparagraph id="HD855E9337F6046FAAE88C2AD149BF94B"><enum>(C)</enum><text><quote>qualifying small power production facility</quote> means a small power production facility that the Commission determines, by rule, meets such requirements (including requirements respecting fuel use, fuel efficiency, and reliability) as the Commission may, by rule, prescribe;</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H82360B5560A24192A4AED1BAE0397C16"><enum>(2)</enum><header>Qualifying cogeneration facility</header><text>Section 3(18)(B) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/796">16 U.S.C. 796(18)(B)</external-xref>) is amended to read as follows:</text> <quoted-block id="H1DADFC907FA1472386F2104D987C00A5"> <subparagraph id="HC618D62B776C466C99D693DB381124B7"><enum>(B)</enum><text><quote>qualifying cogeneration facility</quote> means a cogeneration facility that the Commission determines, by rule, meets such requirements (including requirements respecting minimum size, fuel use, and fuel efficiency) as the Commission may, by rule, prescribe;</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section></subtitle> <subtitle id="H73F758BB51EC456AB324589EF408E1C"><enum>F</enum><header>Repeal of PUHCA</header> <section id="HDD7F76E0D348444AA34412E35FB93B1B"><enum>1261.</enum><header>Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the <quote><short-title>Public Utility Holding Company Act of 2004</short-title></quote>.</text></section> <section id="H8F55D0BC4F6A4C30A0B99BDD915D3EB5"><enum>1262.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle:</text> <paragraph id="HDC4F280858DC487C85F2131F04A72DD7"><enum>(1)</enum><header>Affiliate</header><text>The term <term>affiliate</term> of a company means any company, 5 percent or more of the outstanding voting securities of which are owned, controlled, or held with power to vote, directly or indirectly, by such company.</text></paragraph> <paragraph id="H3D05393B03AF4495820065A63E10E9EC"><enum>(2)</enum><header>Associate company</header><text>The term <term>associate company</term> of a company means any company in the same holding company system with such company.</text></paragraph> <paragraph id="H18D3826D4EBA4C8F8C97659300B3C0E1"><enum>(3)</enum><header>Commission</header><text>The term <term>Commission</term> means the Federal Energy Regulatory Commission.</text></paragraph> <paragraph id="H385505E477DD42CCA7915DFC00CBFB18"><enum>(4)</enum><header>Company</header><text>The term <term>company</term> means a corporation, partnership, association, joint stock company, business trust, or any organized group of persons, whether incorporated or not, or a receiver, trustee, or other liquidating agent of any of the foregoing.</text></paragraph> <paragraph id="HA303D9F468024DB1877E7891AE31EE3B"><enum>(5)</enum><header>Electric utility company</header><text>The term <term>electric utility company</term> means any company that owns or operates facilities used for the generation, transmission, or distribution of electric energy for sale.</text></paragraph> <paragraph id="H5F5899DEEAB546F4A658697F01C3135E"><enum>(6)</enum><header>Exempt wholesale generator and foreign utility company</header><text>The terms <term>exempt wholesale generator</term> and <term>foreign utility company</term> have the same meanings as in sections 32 and 33, respectively, of the Public Utility Holding Company Act of 1935 (15 U.S.C. 79z–5a, 79z–5b), as those sections existed on the day before the effective date of this subtitle.</text></paragraph> <paragraph id="HD05F98C2213041358996079C61964862"><enum>(7)</enum><header>Gas utility company</header><text>The term <term>gas utility company</term> means any company that owns or operates facilities used for distribution at retail (other than the distribution only in enclosed portable containers or distribution to tenants or employees of the company operating such facilities for their own use and not for resale) of natural or manufactured gas for heat, light, or power.</text></paragraph> <paragraph id="HE5D5FC1467EF4721A8781F3EB629C739"><enum>(8)</enum><header>Holding company</header><text>The term <term>holding company</term> means—</text> <subparagraph id="H1FCC9CCE68BB4807A581FD6EFC00B547"><enum>(A)</enum><text>any company that directly or indirectly owns, controls, or holds, with power to vote, 10 percent or more of the outstanding voting securities of a public-utility company or of a holding company of any public-utility company; and</text></subparagraph> <subparagraph id="H7BCF4674497B4CAEB2C300FB2167603"><enum>(B)</enum><text>any person, determined by the Commission, after notice and opportunity for hearing, to exercise directly or indirectly (either alone or pursuant to an arrangement or understanding with 1 or more persons) such a controlling influence over the management or policies of any public-utility company or holding company as to make it necessary or appropriate for the rate protection of utility customers with respect to rates that such person be subject to the obligations, duties, and liabilities imposed by this subtitle upon holding companies.</text></subparagraph></paragraph> <paragraph id="H2246A9AC6B7C490D95A0AF0422C8DA42"><enum>(9)</enum><header>Holding company system</header><text>The term <term>holding company system</term> means a holding company, together with its subsidiary companies.</text></paragraph> <paragraph id="H4BC05320CFF5401D9671E6A149575700"><enum>(10)</enum><header>Jurisdictional rates</header><text>The term <term>jurisdictional rates</term> means rates accepted or established by the Commission for the transmission of electric energy in interstate commerce, the sale of electric energy at wholesale in interstate commerce, the transportation of natural gas in interstate commerce, and the sale in interstate commerce of natural gas for resale for ultimate public consumption for domestic, commercial, industrial, or any other use.</text></paragraph> <paragraph id="H5EAD87B3712C4B5284AD5F61169DA89"><enum>(11)</enum><header>Natural gas company</header><text>The term <term>natural gas company</term> means a person engaged in the transportation of natural gas in interstate commerce or the sale of such gas in interstate commerce for resale.</text></paragraph> <paragraph id="H6BE10476A5EF42AD9255C366C8FAB9FA"><enum>(12)</enum><header>Person</header><text>The term <term>person</term> means an individual or company.</text></paragraph> <paragraph id="H4EA1480D42A74E0586D08DBDE425702"><enum>(13)</enum><header>Public utility</header><text>The term <term>public utility</term> means any person who owns or operates facilities used for transmission of electric energy in interstate commerce or sales of electric energy at wholesale in interstate commerce.</text></paragraph> <paragraph id="H25AD5BC9AEE34F068D732EA7C600599C"><enum>(14)</enum><header>Public-utility company</header><text>The term <term>public-utility company</term> means an electric utility company or a gas utility company.</text></paragraph> <paragraph id="H58603B131A61460689ABE1FCDFD26E36"><enum>(15)</enum><header>State Commission</header><text>The term <term>State commission</term> means any commission, board, agency, or officer, by whatever name designated, of a State, municipality, or other political subdivision of a State that, under the laws of such State, has jurisdiction to regulate public utility companies.</text></paragraph> <paragraph id="H4CF28F56ED4945A296A12D5FB16FC2BF"><enum>(16)</enum><header>Subsidiary company</header><text>The term <term>subsidiary company</term> of a holding company means—</text> <subparagraph id="HFBD41DE1E9224ADD98365D2FCD362DE4"><enum>(A)</enum><text>any company, 10 percent or more of the outstanding voting securities of which are directly or indirectly owned, controlled, or held with power to vote, by such holding company; and</text></subparagraph> <subparagraph id="H5AD6C59D18F4435100A3451F9B97504"><enum>(B)</enum><text>any person, the management or policies of which the Commission, after notice and opportunity for hearing, determines to be subject to a controlling influence, directly or indirectly, by such holding company (either alone or pursuant to an arrangement or understanding with 1 or more other persons) so as to make it necessary for the rate protection of utility customers with respect to rates that such person be subject to the obligations, duties, and liabilities imposed by this subtitle upon subsidiary companies of holding companies.</text></subparagraph></paragraph> <paragraph id="HA1DF0B0A0A034FF68FB297A76EE1EFD9"><enum>(17)</enum><header>Voting security</header><text>The term <term>voting security</term> means any security presently entitling the owner or holder thereof to vote in the direction or management of the affairs of a company.</text></paragraph></section> <section id="H4A63FC3514B9432E9E14460208B29D89"><enum>1263.</enum><header>Repeal of the Public Utility Holding Company Act of 1935</header><text display-inline="no-display-inline">The Public Utility Holding Company Act of 1935 (<external-xref legal-doc="usc" parsable-cite="usc/15/79">15 U.S.C. 79 et seq.</external-xref>) is repealed.</text></section> <section id="HCB99C258B9B14EE99EC0190063DB1C4F"><enum>1264.</enum><header>Federal access to books and records</header> <subsection id="HFFA3801546644C9EBA5B4E8D00649824"><enum>(a)</enum><header>In general</header><text>Each holding company and each associate company thereof shall maintain, and shall make available to the Commission, such books, accounts, memoranda, and other records as the Commission determines are relevant to costs incurred by a public utility or natural gas company that is an associate company of such holding company and necessary or appropriate for the protection of utility customers with respect to jurisdictional rates.</text></subsection> <subsection id="HA767EF735D4D4E808CF1009DDF65632"><enum>(b)</enum><header>Affiliate companies</header><text>Each affiliate of a holding company or of any subsidiary company of a holding company shall maintain, and shall make available to the Commission, such books, accounts, memoranda, and other records with respect to any transaction with another affiliate, as the Commission determines are relevant to costs incurred by a public utility or natural gas company that is an associate company of such holding company and necessary or appropriate for the protection of utility customers with respect to jurisdictional rates.</text></subsection> <subsection id="HADB4D63D199041C4AE50913FB36C6FC"><enum>(c)</enum><header>Holding company systems</header><text>The Commission may examine the books, accounts, memoranda, and other records of any company in a holding company system, or any affiliate thereof, as the Commission determines are relevant to costs incurred by a public utility or natural gas company within such holding company system and necessary or appropriate for the protection of utility customers with respect to jurisdictional rates.</text></subsection> <subsection id="H06094E0897054A72B45DD61991210F2"><enum>(d)</enum><header>Confidentiality</header><text>No member, officer, or employee of the Commission shall divulge any fact or information that may come to his or her knowledge during the course of examination of books, accounts, memoranda, or other records as provided in this section, except as may be directed by the Commission or by a court of competent jurisdiction.</text></subsection></section> <section id="HC8CCA5CAF4C941E19F50A66F30848345"><enum>1265.</enum><header>State access to books and records</header> <subsection id="H500307D57E0D4DDCBB30F71DCDC100FA"><enum>(a)</enum><header>In general</header><text>Upon the written request of a State commission having jurisdiction to regulate a public-utility company in a holding company system, the holding company or any associate company or affiliate thereof, other than such public-utility company, wherever located, shall produce for inspection books, accounts, memoranda, and other records that—</text> <paragraph id="HBC05AA4E59F948548CB6000761AEE394"><enum>(1)</enum><text>have been identified in reasonable detail in a proceeding before the State commission;</text></paragraph> <paragraph id="H8CEC749A2300450982B40006F9B571B2"><enum>(2)</enum><text>the State commission determines are relevant to costs incurred by such public-utility company; and</text></paragraph> <paragraph id="H0C708A2E57344575BA5740160962D518"><enum>(3)</enum><text>are necessary for the effective discharge of the responsibilities of the State commission with respect to such proceeding.</text></paragraph></subsection> <subsection id="H4BBF64DE3F2D4CEF80EEBAE68B9FAEE"><enum>(b)</enum><header>Limitation</header><text>Subsection (a) does not apply to any person that is a holding company solely by reason of ownership of 1 or more qualifying facilities under the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2601">16 U.S.C. 2601 et seq.</external-xref>).</text></subsection> <subsection id="H97EFC1365E1745A383E1D76E20C0A950"><enum>(c)</enum><header>Confidentiality of information</header><text>The production of books, accounts, memoranda, and other records under subsection (a) shall be subject to such terms and conditions as may be necessary and appropriate to safeguard against unwarranted disclosure to the public of any trade secrets or sensitive commercial information.</text></subsection> <subsection id="H8DD2B5A219C3407487F3F177008CEB1E"><enum>(d)</enum><header>Effect on State law</header><text>Nothing in this section shall preempt applicable State law concerning the provision of books, accounts, memoranda, and other records, or in any way limit the rights of any State to obtain books, accounts, memoranda, and other records under any other Federal law, contract, or otherwise.</text></subsection> <subsection id="H492538777BC24956AF95A098AFD1A500"><enum>(e)</enum><header>Court jurisdiction</header><text>Any United States district court located in the State in which the State commission referred to in subsection (a) is located shall have jurisdiction to enforce compliance with this section.</text></subsection></section> <section id="H3D5B71948DD44FCCB0FD8EDF140069D9"><enum>1266.</enum><header>Exemption authority</header> <subsection id="H302E07669C044FF3BA4B3BF8D8B5FB1B"><enum>(a)</enum><header>Rulemaking</header><text>Not later than 90 days after the effective date of this subtitle, the Commission shall issue a final rule to exempt from the requirements of section 1264 (relating to Federal access to books and records) any person that is a holding company, solely with respect to 1 or more—</text> <paragraph id="HB2B423A35D9C47DAA39C71B110992338"><enum>(1)</enum><text>qualifying facilities under the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2601">16 U.S.C. 2601 et seq.</external-xref>);</text></paragraph> <paragraph id="HA16DE7CB340C4D58A38B20526CB2EA5D"><enum>(2)</enum><text>exempt wholesale generators; or</text></paragraph> <paragraph id="HDECE97B8C737482E8BE8B7C4A29291C5"><enum>(3)</enum><text>foreign utility companies.</text></paragraph></subsection> <subsection id="H3D8DA49D5C894F629CCBD52001F3053"><enum>(b)</enum><header>Other authority</header><text>The Commission shall exempt a person or transaction from the requirements of section 1264 (relating to Federal access to books and records) if, upon application or upon the motion of the Commission—</text> <paragraph id="HF2CB0B7BCD2E4358A5AD1040793564D6"><enum>(1)</enum><text>the Commission finds that the books, accounts, memoranda, and other records of any person are not relevant to the jurisdictional rates of a public utility or natural gas company; or</text></paragraph> <paragraph id="H2E6792592EA34B86A664FD8849964799"><enum>(2)</enum><text>the Commission finds that any class of transactions is not relevant to the jurisdictional rates of a public utility or natural gas company.</text></paragraph></subsection></section> <section id="H7567088FE33A45BE979D3037C8A24C19"><enum>1267.</enum><header>Affiliate transactions</header> <subsection id="H576CD1C8693A414BB9157BADCF567DEE"><enum>(a)</enum><header>Commission authority unaffected</header><text>Nothing in this subtitle shall limit the authority of the Commission under the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/791a">16 U.S.C. 791a et seq.</external-xref>) to require that jurisdictional rates are just and reasonable, including the ability to deny or approve the pass through of costs, the prevention of cross-subsidization, and the issuance of such rules and regulations as are necessary or appropriate for the protection of utility consumers.</text></subsection> <subsection id="H3991AB43DAE24F8EBAF82F467F5FE9F1"><enum>(b)</enum><header>Recovery of costs</header><text>Nothing in this subtitle shall preclude the Commission or a State commission from exercising its jurisdiction under otherwise applicable law to determine whether a public-utility company, public utility, or natural gas company may recover in rates any costs of an activity performed by an associate company, or any costs of goods or services acquired by such public-utility company from an associate company.</text></subsection></section> <section id="H231AF0737C3549FD98B42673AA00AFB3"><enum>1268.</enum><header>Applicability</header><text display-inline="no-display-inline">Except as otherwise specifically provided in this subtitle, no provision of this subtitle shall apply to, or be deemed to include—</text> <paragraph id="H537303B2649E441BAF7401538784B746"><enum>(1)</enum><text>the United States;</text></paragraph> <paragraph id="H9D36A9A634A744FFADFE9C1DBB3E769D"><enum>(2)</enum><text>a State or any political subdivision of a State;</text></paragraph> <paragraph id="H7EE3D2A8D8E946D68F5D687D1771388F"><enum>(3)</enum><text>any foreign governmental authority not operating in the United States;</text></paragraph> <paragraph id="HB6A79865D63D468DB0F7A4A9CEDB1E39"><enum>(4)</enum><text>any agency, authority, or instrumentality of any entity referred to in paragraph (1), (2), or (3); or</text></paragraph> <paragraph id="HA7E8509C4E874BC30017052C86FCDECF"><enum>(5)</enum><text>any officer, agent, or employee of any entity referred to in paragraph (1), (2), (3), or (4) acting as such in the course of his or her official duty.</text></paragraph></section> <section id="HFDF3484F7AEE44AB008593ABDE9DDDA"><enum>1269.</enum><header>Effect on other regulations</header><text display-inline="no-display-inline">Nothing in this subtitle precludes the Commission or a State commission from exercising its jurisdiction under otherwise applicable law to protect utility customers.</text></section> <section id="HA66B326ABCAF4ED1B6409B9536E0A461"><enum>1270.</enum><header>Enforcement</header><text display-inline="no-display-inline">The Commission shall have the same powers as set forth in sections 306 through 317 of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/825e-825p">16 U.S.C. 825e–825p</external-xref>) to enforce the provisions of this subtitle.</text></section> <section id="HF65D4EA5F7634C128D02765324021F00"><enum>1271.</enum><header>Savings provisions</header> <subsection id="HE8AC9979B39C4933AAA27B00FDEE0001"><enum>(a)</enum><header>In general</header><text>Nothing in this subtitle, or otherwise in the Public Utility Holding Company Act of 1935, or rules, regulations, or orders thereunder, prohibits a person from engaging in or continuing to engage in activities or transactions in which it is legally engaged or authorized to engage on the date of enactment of this Act, if that person continues to comply with the terms (other than an expiration date or termination date) of any such authorization, whether by rule or by order.</text></subsection> <subsection id="HB0F030B5D2BF4521B2C1853D00BBADBD"><enum>(b)</enum><header>Effect on other Commission authority</header><text>Nothing in this subtitle limits the authority of the Commission under the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/791a">16 U.S.C. 791a et seq.</external-xref>) or the Natural Gas Act (<external-xref legal-doc="usc" parsable-cite="usc/15/717">15 U.S.C. 717 et seq.</external-xref>).</text></subsection></section> <section id="H74147AE984964742B6D4FF76EE2D5833"><enum>1272.</enum><header>Implementation</header><text display-inline="no-display-inline">Not later than 12 months after the date of enactment of this subtitle, the Commission shall—</text> <paragraph id="H62565F969A264304B65C926F2DE2ECA4"><enum>(1)</enum><text>issue such regulations as may be necessary or appropriate to implement this subtitle (other than section 1265, relating to State access to books and records); and</text></paragraph> <paragraph id="H6AE2075C96754709A945C9D246367893"><enum>(2)</enum><text>submit to Congress detailed recommendations on technical and conforming amendments to Federal law necessary to carry out this subtitle and the amendments made by this subtitle.</text></paragraph></section> <section id="HF3710CA0A2124A80827FCAF1C4348D26"><enum>1273.</enum><header>Transfer of resources</header><text display-inline="no-display-inline">All books and records that relate primarily to the functions transferred to the Commission under this subtitle shall be transferred from the Securities and Exchange Commission to the Commission.</text></section> <section id="H7AF837F43CD646A09D6EE79F017B32D6"><enum>1274.</enum><header>Effective date</header> <subsection id="H41AD660DA44A41B483090079C867D93D"><enum>(a)</enum><header>In general</header><text>Except for section 1272 (relating to implementation), this subtitle shall take effect 12 months after the date of enactment of this subtitle.</text></subsection> <subsection id="HC912A69779094B1EB4169F26856E5C5F"><enum>(b)</enum><header>Compliance with certain rules</header><text>If the Commission approves and makes effective any final rulemaking modifying the standards of conduct governing entities that own, operate, or control facilities for transmission of electricity in interstate commerce or transportation of natural gas in interstate commerce prior to the effective date of this subtitle, any action taken by a public-utility company or utility holding company to comply with the requirements of such rulemaking shall not subject such public-utility company or utility holding company to any regulatory requirement applicable to a holding company under the Public Utility Holding Company Act of 1935 (<external-xref legal-doc="usc" parsable-cite="usc/15/79">15 U.S.C. 79 et seq.</external-xref>).</text></subsection></section> <section id="H90ED5F95D0084DDCA8F0AFE8F2E21DE6"><enum>1275.</enum><header>Service allocation</header> <subsection id="H24629EBA85D145799F12D10582A0BC2F"><enum>(a)</enum><header>FERC review</header><text>In the case of non-power goods or administrative or management services provided by an associate company organized specifically for the purpose of providing such goods or services to any public utility in the same holding company system, at the election of the system or a State commission having jurisdiction over the public utility, the Commission, after the effective date of this subtitle, shall review and authorize the allocation of the costs for such goods or services to the extent relevant to that associate company in order to assure that each allocation is appropriate for the protection of investors and consumers of such public utility.</text></subsection> <subsection id="H410156FE5C094A2F00514622DF9225CB"><enum>(b)</enum><header>Cost allocation</header><text>Nothing in this section shall preclude the Commission or a State commission from exercising its jurisdiction under other applicable law with respect to the review or authorization of any costs allocated to a public utility in a holding company system located in the affected State as a result of the acquisition of non-power goods or administrative and management services by such public utility from an associate company organized specifically for that purpose.</text></subsection> <subsection id="H4DC3B1F144E04ADBB7F5BB8835E63736"><enum>(c)</enum><header>Rules</header><text>Not later than 6 months after the date of enactment of this Act, the Commission shall issue rules (which rules shall be effective no earlier than the effective date of this subtitle) to exempt from the requirements of this section any company in a holding company system whose public utility operations are confined substantially to a single State and any other class of transactions that the Commission finds is not relevant to the jurisdictional rates of a public utility.</text></subsection> <subsection id="H95B95DF201DD4664B435EDA99CDAB158"><enum>(d)</enum><header>Public utility</header><text>As used in this section, the term <term>public utility</term> has the meaning given that term in section 201(e) of the Federal Power Act.</text></subsection></section> <section id="H3F4F3EC03E554DD889763918BEF00784"><enum>1276.</enum><header>Authorization of appropriations</header><text display-inline="no-display-inline">There are authorized to be appropriated such funds as may be necessary to carry out this subtitle.</text></section> <section id="HE1A4C4FEAA0540F8918FBB29B4FE1B92"><enum>1277.</enum><header>Conforming amendments to the Federal Power Act</header> <subsection id="HCC516FD4AA1E483EB1B5672ADEDC272"><enum>(a)</enum><header>Conflict of jurisdiction</header><text>Section 318 of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/825q">16 U.S.C. 825q</external-xref>) is repealed.</text></subsection> <subsection id="HDE34196A151F44A0A4E04FCAE98BCC9D"><enum>(b)</enum><header>Definitions</header> <paragraph display-inline="yes-display-inline" id="HA7773015C4224EE185D03E1E81EF37A8"><enum>(1)</enum><text>Section 201(g)(5) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824">16 U.S.C. 824(g)(5)</external-xref>) is amended by striking <quote>1935</quote> and inserting <quote>2003</quote>.</text></paragraph> <paragraph indent="up1" id="H6D091C17BE0D48B5B0D4F59581B8E8FA"><enum>(2)</enum><text>Section 214 of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824m">16 U.S.C. 824m</external-xref>) is amended by striking <quote>1935</quote> and inserting <quote>2003</quote>.</text></paragraph></subsection></section></subtitle> <subtitle id="H5780F38C271A41899050F218A51E4568"><enum>G</enum><header>Market transparency, enforcement, and consumer protection</header> <section id="H8E8D1DB0747B4CC4BB7700906ED11CCD"><enum>1281.</enum><header>Market transparency rules</header><text display-inline="no-display-inline">Part II of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824">16 U.S.C. 824 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="HFAC2F52573C8458E916845B128B47D87"> <section id="H80D14C1772BC466E8F323582EC739100"><enum>220.</enum><header>Market transparency rules</header> <subsection id="H55F81C7913504562B6C7D3EBC2967808"><enum>(a)</enum><header>In general</header><text>Not later than 180 days after the date of enactment of this section, the Commission shall issue rules establishing an electronic information system to provide the Commission and the public with access to such information as is necessary or appropriate to facilitate price transparency and participation in markets subject to the Commission’s jurisdiction under this Act. Such systems shall provide information about the availability and market price of wholesale electric energy and transmission services to the Commission, State commissions, buyers and sellers of wholesale electric energy, users of transmission services, and the public on a timely basis. The Commission shall have authority to obtain such information from any electric utility or transmitting utility, including any entity described in section 201(f).</text></subsection> <subsection id="H174CE2A573D14BF4AAF27F90A5A60873"><enum>(b)</enum><header>Exemptions</header><text>The Commission shall exempt from disclosure information it determines would, if disclosed, be detrimental to the operation of an effective market or jeopardize system security. This section shall not apply to transactions for the purchase or sale of wholesale electric energy or transmission services within the area described in section 212(k)(2)(A). In determining the information to be made available under this section and time to make such information available, the Commission shall seek to ensure that consumers and competitive markets are protected from the adverse effects of potential collusion or other anti-competitive behaviors that can be facilitated by untimely public disclosure of transaction-specific information.</text></subsection> <subsection id="HD93F3F0E65E640CDB6B8FC00B4004306"><enum>(c)</enum><header>Commodity Futures Trading Commission</header><text>This section shall not affect the exclusive jurisdiction of the Commodity Futures Trading Commission with respect to accounts, agreements, contracts, or transactions in commodities under the <act-name parsable-cite="COMEX">Commodity Exchange Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/7/1">7 U.S.C. 1 et seq.</external-xref>). Any request for information to a designated contract market, registered derivatives transaction execution facility, board of trade, exchange, or market involving accounts, agreements, contracts, or transactions in commodities (including natural gas, electricity and other energy commodities) within the exclusive jurisdiction of the Commodity Futures Trading Commission shall be directed to the Commodity Futures Trading Commission.</text></subsection> <subsection id="HA78BF938AEC447DC8B853BF966944CC0"><enum>(d)</enum><header>Savings provision</header><text>In exercising its authority under this section, the Commission shall not—</text> <paragraph id="H54ECCA5D3C694EE90038199B82ECFAB0"><enum>(1)</enum><text>compete with, or displace from the market place, any price publisher; or</text></paragraph> <paragraph id="H0E250EDC68A34330AA83E5FBC978AF00"><enum>(2)</enum><text>regulate price publishers or impose any requirements on the publication of information.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HB4F47E9A0E1747FDB2FF054B806624BE"><enum>1282.</enum><header>Market manipulation</header><text display-inline="no-display-inline">Part II of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824">16 U.S.C. 824 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="HEB7D3F59DDEA4AC10046FDD08004B5C"> <section id="H8E2BC255D2234F4C9621388DF57D86F1"><enum>221.</enum><header>Prohibition on filing false information</header><text display-inline="no-display-inline">No person or other entity (including an entity described in section 201(f)) shall willfully and knowingly report any information relating to the price of electricity sold at wholesale or availability of transmission capacity, which information the person or any other entity knew to be false at the time of the reporting, to a Federal agency with intent to fraudulently affect the data being compiled by such Federal agency.</text></section> <section id="HC2AFE7D1952740CD974178793B9DC086"><enum>222.</enum><header>Prohibition on round trip trading</header> <subsection id="H4411C7E3764E4056B6004BDA277018F8"><enum>(a)</enum><header>Prohibition</header><text>No person or other entity (including an entity described in section 201(f)) shall willfully and knowingly enter into any contract or other arrangement to execute a <quote>round trip trade</quote> for the purchase or sale of electric energy at wholesale.</text></subsection> <subsection id="H11E6C9BEE4BF403E9FAD781ED8BCD807"><enum>(b)</enum><header>Definition</header><text>For the purposes of this section, the term <term>round trip trade</term> means a transaction, or combination of transactions, in which a person or any other entity—</text> <paragraph id="HDC6DCC2F4B314406A071ADB49006089"><enum>(1)</enum><text>enters into a contract or other arrangement to purchase from, or sell to, any other person or other entity electric energy at wholesale;</text></paragraph> <paragraph id="H721C8707B7F54BA29B63F5A6E50F8F9"><enum>(2)</enum><text>simultaneously with entering into the contract or arrangement described in paragraph (1), arranges a financially offsetting trade with such other person or entity for the same such electric energy, at the same location, price, quantity and terms so that, collectively, the purchase and sale transactions in themselves result in no financial gain or loss; and</text></paragraph> <paragraph id="H5809C3B87772496C84E900427075ACB2"><enum>(3)</enum><text>enters into the contract or arrangement with a specific intent to fraudulently affect reported revenues, trading volumes, or prices.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HF31DB0CF3DC345589B919DE69A99FCC"><enum>1283.</enum><header>Enforcement</header> <subsection id="H05B2D23D8FD5463AA03B403EAF00B9C"><enum>(a)</enum><header>Complaints</header><text>Section 306 of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/825e">16 U.S.C. 825e</external-xref>) is amended as follows:</text> <paragraph id="H6035D137BA8F481E937354BF97D53109"><enum>(1)</enum><text>By inserting <quote>electric utility,</quote> after <quote>Any person,</quote>.</text></paragraph> <paragraph id="H37DD31ADC5AF4017B70055B758867C51"><enum>(2)</enum><text>By inserting <quote>, transmitting utility,</quote> after <quote>licensee</quote> each place it appears.</text></paragraph></subsection> <subsection id="H16268E9C1CAA44C89C3072140596F4B"><enum>(b)</enum><header>Review of Commission orders</header><text>Section 313(a) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/8251">16 U.S.C. 8251</external-xref>) is amended by inserting <quote>electric utility,</quote> after <quote>person,</quote> in the first 2 places it appears and by striking <quote>any person unless such person</quote> and inserting <quote>any entity unless such entity</quote>.</text></subsection> <subsection id="H48DD0F4EB0FF455FB0C5203200F77904"><enum>(c)</enum><header>Investigations</header><text>Section 307(a) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/825f">16 U.S.C. 825f(a)</external-xref>) is amended as follows:</text> <paragraph id="HE87897C37BF4467AB22E044C1DE6F3D6"><enum>(1)</enum><text>By inserting <quote>, electric utility, transmitting utility, or other entity</quote> after <quote>person</quote> each time it appears.</text></paragraph> <paragraph id="H2E37C2B02AE746ADB974AEC75E7F48E6"><enum>(2)</enum><text>By striking the period at the end of the first sentence and inserting the following: <quote>or in obtaining information about the sale of electric energy at wholesale in interstate commerce and the transmission of electric energy in interstate commerce.</quote>.</text></paragraph></subsection> <subsection id="H8F68DC09E72F4520ABD8153B925196EF"><enum>(d)</enum><header>Criminal penalties</header><text>Section 316 of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/825o">16 U.S.C. 825o</external-xref>) is amended—</text> <paragraph id="H5B75292BCAB34691AFEEA3EBCCA5E12"><enum>(1)</enum><text>in subsection (a), by striking <quote>$5,000</quote> and inserting <quote>$1,000,000</quote>, and by striking <quote>two years</quote> and inserting <quote>5 years</quote>;</text></paragraph> <paragraph id="HF2BAE648E93A48799CF24D030067A987"><enum>(2)</enum><text>in subsection (b), by striking <quote>$500</quote> and inserting <quote>$25,000</quote>; and</text></paragraph> <paragraph id="H3FD37A82409E40ECA227B81CCDB5879B"><enum>(3)</enum><text>by striking subsection (c).</text></paragraph></subsection> <subsection id="HE5F8A39960A148619F041335CC43A11E"><enum>(e)</enum><header>Civil penalties</header><text>Section 316A of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/825o-1">16 U.S.C. 825o–1</external-xref>) is amended as follows:</text> <paragraph id="H82FC2E1D91CF43889317278100007267"><enum>(1)</enum><text>In subsections (a) and (b), by striking <quote>section 211, 212, 213, or 214</quote> each place it appears and inserting <quote>Part II</quote>.</text></paragraph> <paragraph id="H185DD9DD105E47AFB8A4CBC5D9C0328"><enum>(2)</enum><text>In subsection (b), by striking <quote>$10,000</quote> and inserting <quote>$1,000,000</quote>.</text></paragraph></subsection></section> <section id="HCA4BBCD8FA5A4BB8B780C3A66FE18BD"><enum>1284.</enum><header>Refund effective date</header><text display-inline="no-display-inline">Section 206(b) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824e">16 U.S.C. 824e(b)</external-xref>) is amended as follows:</text> <paragraph id="HDFF26B274FCE40D4B8596C28E065495"><enum>(1)</enum><text>By striking <quote>the date 60 days after the filing of such complaint nor later than 5 months after the expiration of such 60-day period</quote> in the second sentence and inserting <quote>the date of the filing of such complaint nor later than 5 months after the filing of such complaint</quote>.</text></paragraph> <paragraph id="H141F069C541E4CABAD61C8068157F53E"><enum>(2)</enum><text>By striking <quote>60 days after</quote> in the third sentence and inserting <quote>of</quote>.</text></paragraph> <paragraph id="HA6A4B62AF4464980A2ABC6E9FCB985E"><enum>(3)</enum><text>By striking <quote>expiration of such 60-day period</quote> in the third sentence and inserting <quote>publication date</quote>.</text></paragraph> <paragraph id="HD7FACB56E0E742ED8B29E0C63816617E"><enum>(4)</enum><text>By striking the fifth sentence and inserting the following: <quote>If no final decision is rendered by the conclusion of the 180-day period commencing upon initiation of a proceeding pursuant to this section, the Commission shall state the reasons why it has failed to do so and shall state its best estimate as to when it reasonably expects to make such decision.</quote>.</text></paragraph></section> <section id="HA66F438129C847A8A157109D8B5BBAE0"><enum>1285.</enum><header>Refund authority</header><text display-inline="no-display-inline">Section 206 of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824e">16 U.S.C. 824e</external-xref>) is amended by adding the following new subsection at the end thereof:</text> <quoted-block id="H0187798EAB0945188D00DA0692D72F69"> <subsection id="HC734F1B81C904630B6CF39242810ADE"><enum>(e)</enum> <paragraph display-inline="yes-display-inline" id="H31D81BD88802481FAEBF2BAF272C7E87"><enum>(1)</enum><text>Except as provided in paragraph (2), if an entity described in section 201(f) voluntarily makes a short-term sale of electric energy and the sale violates Commission rules in effect at the time of the sale, such entity shall be subject to the Commission’s refund authority under this section with respect to such violation.</text></paragraph> <paragraph indent="up1" id="HCE7ABDA1E6234FB8BB608B2DEE3F70C9"><enum>(2)</enum><text>This section shall not apply to—</text> <subparagraph id="H44437C4DE0744946B18D1C8229EDBEF3"><enum>(A)</enum><text>any entity that sells less than 8,000,000 megawatt hours of electricity per year; or</text></subparagraph> <subparagraph id="H13044ABE80874BF59F22B058B5C76261"><enum>(B)</enum><text>any electric cooperative.</text></subparagraph></paragraph> <paragraph indent="up1" id="H5546D857C46045A595A449724CC2152C"><enum>(3)</enum><text>For purposes of this subsection, the term <term>short-term sale</term> means an agreement for the sale of electric energy at wholesale in interstate commerce that is for a period of 31 days or less (excluding monthly contracts subject to automatic renewal).</text></paragraph> <paragraph indent="up1" id="HB812DE036EAC470A9000E5276CB84BD0"><enum>(4)</enum><text>The Commission shall have refund authority under subsection (e)(1) with respect to a voluntary short-term sale of electric energy by the Bonneville Power Administration (in this section <quote>Bonneville</quote>) only if the sale is at an unjust and unreasonable rate and, in that event, may order a refund only for short-term sales made by Bonneville at rates that are higher than the highest just and reasonable rate charged by any other entity for a short-term sale of electric energy in the same geographic market for the same, or most nearly comparable, period as the sale by Bonneville.</text></paragraph> <paragraph indent="up1" id="H283706759F324BA5A984175FD782067C"><enum>(5)</enum><text>With respect to any Federal power marketing agency or the Tennessee Valley Authority, the Commission shall not assert or exercise any regulatory authority or powers under subsection (e)(1) other than the ordering of refunds to achieve a just and reasonable rate.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H98659900B1CB49CDB00022AF4757EE1F"><enum>1286.</enum><header>Sanctity of contract</header> <subsection id="H72E00FAF6C3444C8A6A04D2BE9E0CAD4"><enum>(a)</enum><header>In general</header><text>The Federal Energy Regulatory Commission (in this section, <quote>the Commission</quote>) shall have no authority to abrogate or modify any provision of an executed contract or executed contract amendment described in subsection (b) that has been entered into or taken effect, except upon a finding that failure to take such action would be contrary to the public interest.</text></subsection> <subsection id="H059EC4E6F5964942AE69ADD42F25DC4F"><enum>(b)</enum><header>Limitation</header><text>Except as provided in subsection (c), this section shall apply only to a contract or contract amendment—</text> <paragraph id="HE4DF88D0010D41C8BCC1F12213B6F91D"><enum>(1)</enum><text>executed on or after the date of enactment of this Act; and</text></paragraph> <paragraph id="H9D4CAFBD6A79445287BE922100E2D200"><enum>(2)</enum><text>entered into—</text> <subparagraph id="HD05348B92CA74F338C5940B8CCF9F7F"><enum>(A)</enum><text>for the purchase or sale of electric energy under section 205 of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824d">16 U.S.C. 824d</external-xref>) where the seller has been authorized by the Commission to charge market-based rates; or</text></subparagraph> <subparagraph id="HE45B732E35AA4E4A984C5604F7BFC946"><enum>(B)</enum><text>under section 4 of the Natural Gas Act (<external-xref legal-doc="usc" parsable-cite="usc/15/717c">15 U.S.C. 717c</external-xref>) where the natural gas company has been authorized by the Commission to charge market-based rates for the service described in the contract.</text></subparagraph></paragraph></subsection> <subsection id="H634F1B56E0C1420F0040A1488B4251AF"><enum>(c)</enum><header>Exclusion</header><text>This section shall not apply to an executed contract or executed contract amendment that expressly provides for a standard of review other than the public interest standard.</text></subsection> <subsection id="HB054A0D615FF4539A7AC54105EC569B"><enum>(d)</enum><header>Savings provision</header><text>With respect to contracts to which this section does not apply, nothing in this section alters existing law regarding the applicable standard of review for a contract subject to the jurisdiction of the Commission.</text></subsection></section> <section id="HFDBE0AC14DA24D18A4CCBB96C7B953C4"><enum>1287.</enum><header>Consumer privacy and unfair trade practices</header> <subsection id="H0B8B744806DE49BFBE6DDEB000B3CD5C"><enum>(a)</enum><header>Privacy</header><text>The Federal Trade Commission may issue rules protecting the privacy of electric consumers from the disclosure of consumer information obtained in connection with the sale or delivery of electric energy to electric consumers.</text></subsection> <subsection id="H7E33CF0A849B41C181046744FD1D4608"><enum>(b)</enum><header>Slamming</header><text>The Federal Trade Commission may issue rules prohibiting the change of selection of an electric utility except with the informed consent of the electric consumer or if approved by the appropriate State regulatory authority.</text></subsection> <subsection id="H8B7213F85EAC416FA05422E01471CB7"><enum>(c)</enum><header>Cramming</header><text>The Federal Trade Commission may issue rules prohibiting the sale of goods and services to an electric consumer unless expressly authorized by law or the electric consumer.</text></subsection> <subsection id="HFB2DD1B2429D4EDE90D59FAB8673AADC"><enum>(d)</enum><header>Rulemaking</header><text>The Federal Trade Commission shall proceed in accordance with <external-xref legal-doc="usc" parsable-cite="usc/5/553">section 553</external-xref> of title 5, United States Code, when prescribing a rule under this section.</text></subsection> <subsection id="H461936522E624A12AF9D639F2504ABC7"><enum>(e)</enum><header>State authority</header><text>If the Federal Trade Commission determines that a State’s regulations provide equivalent or greater protection than the provisions of this section, such State regulations shall apply in that State in lieu of the regulations issued by the Commission under this section.</text></subsection> <subsection id="H3ED259C5D1FF4A2A9485D70064442C5E"><enum>(f)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="H99B02F245E4E4DDBA6B749E6D68B007B"><enum>(1)</enum><header>State regulatory authority</header><text>The term <term>State regulatory authority</term> has the meaning given that term in section 3(21) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/796">16 U.S.C. 796(21)</external-xref>).</text></paragraph> <paragraph id="H3B6F133B094F475683B8F484CD341C90"><enum>(2)</enum><header>Electric consumer and electric utility</header><text>The terms <term>electric consumer</term> and <term>electric utility</term> have the meanings given those terms in section 3 of the Public Utility Regulatory Policies Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2602">16 U.S.C. 2602</external-xref>).</text></paragraph></subsection></section></subtitle> <subtitle id="HE1B2B70BA2524A7BB1571FD2BD0FA19"><enum>H</enum><header>Merger reform</header> <section id="HDB9C91861CC04E199CAD00F6149FD423"><enum>1291.</enum><header>Merger review reform and accountability</header> <subsection id="H8DCB670C03584C12A96E6237DB3097"><enum>(a)</enum><header>Merger review reform</header><text>Within 180 days after the date of enactment of this Act, the Secretary of Energy, in consultation with the Federal Energy Regulatory Commission and the Attorney General of the United States, shall prepare, and transmit to Congress each of the following:</text> <paragraph id="HCA2D0768D9C2492D994E47A1DABDAA4"><enum>(1)</enum><text>A study of the extent to which the authorities vested in the Federal Energy Regulatory Commission under section 203 of the Federal Power Act are duplicative of authorities vested in—</text> <subparagraph id="H9E3A0892E1924E768DC839FB4844A940"><enum>(A)</enum><text>other agencies of Federal and State Government; and</text></subparagraph> <subparagraph id="H5AAF31444FBF4D8794E89BC5CF43CA15"><enum>(B)</enum><text>the Federal Energy Regulatory Commission, including under sections 205 and 206 of the Federal Power Act.</text></subparagraph></paragraph> <paragraph id="H8D9FBE4659324B0C82249FAA34BAEB8"><enum>(2)</enum><text>Recommendations on reforms to the Federal Power Act that would eliminate any unnecessary duplication in the exercise of regulatory authority or unnecessary delays in the approval (or disapproval) of applications for the sale, lease, or other disposition of public utility facilities.</text></paragraph></subsection> <subsection id="H56B0D9A4748948368903008B2842E233"><enum>(b)</enum><header>Merger review accountability</header><text>Not later than 1 year after the date of enactment of this Act and annually thereafter, with respect to all orders issued within the preceding year that impose a condition on a sale, lease, or other disposition of public utility facilities under section 203(b) of the Federal Power Act, the Federal Energy Regulatory Commission shall transmit a report to Congress explaining each of the following:</text> <paragraph id="H8510D260CFBC4904B5A092584800E515"><enum>(1)</enum><text>The condition imposed.</text></paragraph> <paragraph id="H30F7EAF2C2FD436D90EE4831001462E4"><enum>(2)</enum><text>Whether the Commission could have imposed such condition by exercising its authority under any provision of the Federal Power Act other than under section 203(b).</text></paragraph> <paragraph id="H54E3DE10BBBE4986AB7F7760B092ADB3"><enum>(3)</enum><text>If the Commission could not have imposed such condition other than under section 203(b), why the Commission determined that such condition was consistent with the public interest.</text></paragraph></subsection></section> <section id="H67BDC2661BD74E5483199B5094517707"><enum>1292.</enum><header>Electric utility mergers</header> <subsection id="H4FA35B3F24E04E56B13B00A577D836E4"><enum>(a)</enum><header>Amendment</header><text>Section 203(a) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824b">16 U.S.C. 824b(a)</external-xref>) is amended to read as follows:</text> <quoted-block id="H4D176016E2F64407830528B940E6DB5"> <subsection id="HFA2AB76BE7EB42C187DA8C6E84FB69DF"><enum>(a)</enum> <paragraph display-inline="yes-display-inline" id="H80814680BEA64C5996F7515D1BF0EA70"><enum>(1)</enum><text>No public utility shall, without first having secured an order of the Commission authorizing it to do so—</text> <subparagraph indent="up1" id="H03A1E1C71C6D4326869901AADE60B973"><enum>(A)</enum><text>sell, lease, or otherwise dispose of the whole of its facilities subject to the jurisdiction of the Commission, or any part thereof of a value in excess of $10,000,000;</text></subparagraph> <subparagraph indent="up1" id="H5A6BC1C10A27490ABA6C33D2A2C105C5"><enum>(B)</enum><text>merge or consolidate, directly or indirectly, such facilities or any part thereof with those of any other person, by any means whatsoever; or</text></subparagraph> <subparagraph indent="up1" id="HA473C6DAF1374F26A43538A9D6D571AD"><enum>(C)</enum><text>purchase, acquire, or take any security with a value in excess of $10,000,000 of any other public utility.</text></subparagraph></paragraph> <paragraph indent="up1" id="H454DE4E4B09B4BDAB13FBD595655D314"><enum>(2)</enum><text>No holding company in a holding company system that includes a public utility shall purchase, acquire, or take any security with a value in excess of $10,000,000 of, or, by any means whatsoever, directly or indirectly, merge or consolidate with, a public utility or a holding company in a holding company system that includes a public utility with a value in excess of $10,000,000 without first having secured an order of the Commission authorizing it to do so.</text></paragraph> <paragraph indent="up1" id="H712CA990B7A144C6847832B8DD60A183"><enum>(3)</enum><text>Upon receipt of an application for such approval the Commission shall give reasonable notice in writing to the Governor and State commission of each of the States in which the physical property affected, or any part thereof, is situated, and to such other persons as it may deem advisable.</text></paragraph> <paragraph indent="up1" id="H6A77C848AFC545AFB08500001C374800"><enum>(4)</enum><text>After notice and opportunity for hearing, the Commission shall approve the proposed disposition, consolidation, acquisition, or change in control, if it finds that the proposed transaction will be consistent with the public interest. In evaluating whether a transaction will be consistent with the public interest, the Commission shall consider whether the proposed transaction—</text> <subparagraph id="H9AA45EE998CF4A28AF82FACFEB008138"><enum>(A)</enum><text>will adequately protect consumer interests;</text></subparagraph> <subparagraph id="H5AF432EFF8A9465DB5B9639C408FCDA"><enum>(B)</enum><text>will be consistent with competitive wholesale markets;</text></subparagraph> <subparagraph id="HC1C82911526545F7B8DFBEED5C706B1F"><enum>(C)</enum><text>will impair the financial integrity of any public utility that is a party to the transaction or an associate company of any party to the transaction; and</text></subparagraph> <subparagraph id="H28A883A7CBB2471786D08E4E2D477EDF"><enum>(D)</enum><text>satisfies such other criteria as the Commission considers consistent with the public interest.</text></subparagraph></paragraph> <paragraph indent="up1" id="H14083F86C483478295E882B6BF576100"><enum>(5)</enum><text>The Commission shall, by rule, adopt procedures for the expeditious consideration of applications for the approval of dispositions, consolidations, or acquisitions under this section. Such rules shall identify classes of transactions, or specify criteria for transactions, that normally meet the standards established in paragraph (4). The Commission shall provide expedited review for such transactions. The Commission shall grant or deny any other application for approval of a transaction not later than 180 days after the application is filed. If the Commission does not act within 180 days, such application shall be deemed granted unless the Commission finds, based on good cause, that further consideration is required to determine whether the proposed transaction meets the standards of paragraph (4) and issues an order tolling the time for acting on the application for not more than 180 days, at the end of which additional period the Commission shall grant or deny the application.</text></paragraph> <paragraph indent="up1" id="H808CC23F71E045EEBA937DFC38D448CB"><enum>(6)</enum><text>For purposes of this subsection, the terms <term>associate company</term>, <term>holding company</term>, and <term>holding company system</term> have the meaning given those terms in the <short-title>Public Utility Holding Company Act of 2004</short-title>.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H977399A1CD644F7C00DED000FD1775C4"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall take effect 12 months after the date of enactment of this section.</text></subsection></section></subtitle> <subtitle id="H979EF844723D464F927CCFADB017C24"><enum>I</enum><header>Definitions</header> <section id="H2C0B8B0F76EF4CA4BA3F398C467E23A5"><enum>1295.</enum><header>Definitions</header> <subsection id="H911DCF6D871A48B90093A2B71FCBFC6"><enum>(a)</enum><header>Electric utility</header><text>Section 3(22) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/796">16 U.S.C. 796(22)</external-xref>) is amended to read as follows:</text> <quoted-block id="HD0C3487CAB584349A710689382348B6F"> <paragraph id="H9EAA9DB38BA84BDBAF8200BF03216E32"><enum>(22)</enum><header>Electric utility</header><text>The term <term>electric utility</term> means any person or Federal or State agency (including any entity described in section 201(f)) that sells electric energy; such term includes the Tennessee Valley Authority and each Federal power marketing administration.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H4D207D3112DD48ABAAAA2413743987D9"><enum>(b)</enum><header>Transmitting utility</header><text>Section 3(23) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/796">16 U.S.C. 796(23)</external-xref>) is amended to read as follows:</text> <quoted-block id="H0ED2D4E4B83D4B7586729FF5360806F7"> <paragraph id="H5A19D802FE53471CAAEC6827ABC1F6E2"><enum>(23)</enum><header>Transmitting utility</header><text>The term <term>transmitting utility</term> means an entity, including any entity described in section 201(f), that owns, operates, or controls facilities used for the transmission of electric energy—</text> <subparagraph id="HC7470634914D41549EA5133E80007FEF"><enum>(A)</enum><text>in interstate commerce; or</text></subparagraph> <subparagraph id="H8CB51B71826449D992B23F8069E904D6"><enum>(B)</enum><text>for the sale of electric energy at wholesale.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HE94FDD1C317845CBA4F247FA178B54E2"><enum>(c)</enum><header>Additional definitions</header><text>Section 3 of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/796">16 U.S.C. 796</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="H72A406497D50432E8E06007574C6A1D7"> <paragraph id="HD0E7A1137AC14B49B503DF578BEBDE"><enum>(26)</enum><header>Electric cooperative</header><text>The term <term>electric cooperative</term> means a cooperatively owned electric utility.</text></paragraph> <paragraph id="H758E027B29E749AE81F8EA15D7437014"><enum>(27)</enum><header>RTO</header><text>The term <term>Regional Transmission Organization</term> or <term>RTO</term> means an entity of sufficient regional scope approved by the Commission to exercise operational or functional control of facilities used for the transmission of electric energy in interstate commerce and to ensure nondiscriminatory access to such facilities.</text></paragraph> <paragraph id="H5E1061B6475F410ABFBFEF3166EBBF45"><enum>(28)</enum><header>ISO</header><text>The term <term>Independent System Operator</term> or <term>ISO</term> means an entity approved by the Commission to exercise operational or functional control of facilities used for the transmission of electric energy in interstate commerce and to ensure nondiscriminatory access to such facilities.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H1AD51B9BE6F44FE0B840C642C6B47FA8"><enum>(d)</enum><header>Commission</header><text>For the purposes of this title, the term <term>Commission</term> means the Federal Energy Regulatory Commission.</text></subsection> <subsection id="H586CF6F6F761488A8E00D0BBE3106400"><enum>(e)</enum><header>Applicability</header><text>Section 201(f) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824">16 U.S.C. 824(f)</external-xref>) is amended by adding after <quote>political subdivision of a state,</quote> the following: <quote>an electric cooperative that has financing under the Rural Electrification Act of 1936 (<external-xref legal-doc="usc" parsable-cite="usc/7/901">7 U.S.C. 901 et seq.</external-xref>) or that sells less than 4,000,000 megawatt hours of electricity per year,</quote>.</text></subsection></section></subtitle> <subtitle id="H787600F0DCD4498889D000803337C557"><enum>J</enum><header>Technical and conforming amendments</header> <section id="H5B28190F862B42A6002F9B8210FE84F8"><enum>1297.</enum><header>Conforming amendments</header><text display-inline="no-display-inline">The Federal Power Act is amended as follows:</text> <paragraph id="H493B1CD9FB554196B1A895EF1FF570AF"><enum>(1)</enum><text>Section 201(b)(2) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824">16 U.S.C. 824(b)(2)</external-xref>) is amended as follows:</text> <subparagraph id="H14C176F8073B44218F822ECA85286E33"><enum>(A)</enum><text>In the first sentence by striking <quote>210, 211, and 212</quote> and inserting <quote>203(a)(2), 206(e), 210, 211, 211A, 212, 215, 216, 217, 218, 219, 220, 221, and 222</quote>.</text></subparagraph> <subparagraph id="HFC03E918FA794489AC1BEF7BA7DD703D"><enum>(B)</enum><text>In the second sentence by striking <quote>210 or 211</quote> and inserting <quote>203(a)(2), 206(e), 210, 211, 211A, 212, 215, 216, 217, 218, 219, 220, 221, and 222</quote>.</text></subparagraph> <subparagraph id="H3C9B794B144C44C8BEF77E9BF9E548B0"><enum>(C)</enum><text>Section 201(b)(2) of such Act is amended by striking <quote>The</quote> in the first place it appears and inserting <quote>Notwithstanding section 201(f), the</quote> and in the second sentence after <quote>any order</quote> by inserting <quote>or rule</quote>.</text></subparagraph></paragraph> <paragraph id="HE45BB93131214C589100F3BE76B16C70"><enum>(2)</enum><text>Section 201(e) of such Act is amended by striking <quote>210, 211, or 212</quote> and inserting <quote>206(e), 206(f), 210, 211, 211A, 212, 215, 216, 217, 218, 219, 220, 221, and 222</quote>.</text></paragraph> <paragraph id="H098E032A2E1443CFAE564F06BE84556B"><enum>(3)</enum><text>Section 206 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824e">16 U.S.C. 824e</external-xref>) is amended as follows:</text> <subparagraph id="H4C88EF5BE0E647538B96DCE4D15E5757"><enum>(A)</enum><text>In subsection (b), in the seventh sentence, by striking <quote>the public utility to make</quote>.</text></subparagraph> <subparagraph id="H245461DE5897426DA4481EE830616E5F"><enum>(B)</enum><text>In the first sentence of subsection (a), by striking <quote>hearing had</quote> and inserting <quote>hearing held</quote>.</text></subparagraph></paragraph> <paragraph id="H92A6D9F9A2E842E6A6629F2342DAD24C"><enum>(4)</enum><text>Section 211(c) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824j">16 U.S.C. 824j(c)</external-xref>) is amended by—</text> <subparagraph id="HD8C186B1741740DC9C61002F55F933FB"><enum>(A)</enum><text>striking <quote>(2)</quote>;</text></subparagraph> <subparagraph id="HF41443B84A87436B9143585B00F0B57E"><enum>(B)</enum><text>striking <quote>(A)</quote> and inserting <quote>(1)</quote></text></subparagraph> <subparagraph id="H9A7F22E9999741B48D102E9D2BE9816C"><enum>(C)</enum><text>striking <quote>(B)</quote> and inserting <quote>(2)</quote>; and</text></subparagraph> <subparagraph id="H54AD5A9E1DDF4DE5A55138BFAE67404D"><enum>(D)</enum><text>striking <quote>termination of modification</quote> and inserting <quote>termination or modification</quote>.</text></subparagraph></paragraph> <paragraph id="HEF70039C605641CE80A8868B2E66B00"><enum>(5)</enum><text>Section 211(d)(1) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824j">16 U.S.C. 824j(d)(1)</external-xref>) is amended by striking <quote>electric utility</quote> the second time it appears and inserting <quote>transmitting utility</quote>.</text></paragraph> <paragraph id="H16C8F7C717964260BFCA1DE37EED8FE2"><enum>(6)</enum><text>Section 315 (c) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/16/825n">16 U.S.C. 825n(c)</external-xref>) is amended by striking <quote>subsection</quote> and inserting <quote>section</quote>.</text></paragraph></section></subtitle> <enum>XIII</enum><header>Energy tax incentives</header> <section id="H8A4DA0EB5F9F465E9E03B2AAD5407F2F" section-type="subsequent-section"><enum>1300.</enum><header>Short title; amendment of 1986 Code</header> <subsection id="H54BAFB4F62454B8388927DB0EAE066B6"><enum>(a)</enum><header>Short title</header><text>This title may be cited as the <quote><short-title>Energy Tax Policy Act of 2004</short-title></quote>.</text></subsection> <subsection id="HA86A6FFB85DB4EE89B3BF603FB1BDB0"><enum>(b)</enum><header>Amendment of 1986 Code</header><text>Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.</text></subsection></section> <subtitle id="HF792E627E6DA4C79B03CB2EA5E05024B"><enum>A</enum><header>Conservation</header> <part id="HC535B9E15D0F428799711D88C5D9A400"><enum>I</enum><header>Residential and business property</header> <section id="HB9048F63913D435D8FC5CC5C78231986"><enum>1301.</enum><header>Credit for residential energy efficient property</header> <subsection id="H65F79B9B45794D9FAED085C93254EFBC"><enum>(a)</enum><header>In general</header><text>Subpart A of part IV of subchapter A of chapter 1 (relating to nonrefundable personal credits) is amended by inserting after section 25B the following new section:</text> <quoted-block id="H246880F963004ED6909FA56C37BA00C2"> <section id="H1FCECFB343534D6D004560712EE58575"><enum>25C.</enum><header>Residential energy efficient property</header> <subsection id="HFFC5E8E51DDA4B4A8F56C67453B4CCC"><enum>(a)</enum><header>Allowance of credit</header><text>In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of—</text> <paragraph id="HE59089885D3F48BB8892618FDD2E9460"><enum>(1)</enum><text>15 percent of the qualified solar water heating property expenditures made by the taxpayer during such year,</text></paragraph> <paragraph id="H808CA1B97A304F55B60857F426F82EB"><enum>(2)</enum><text>15 percent of the qualified photovoltaic property expenditures made by the taxpayer during such year,</text></paragraph> <paragraph id="H18D03C78072F4DF99DC64362357449BB"><enum>(3)</enum><text>15 percent of the qualified wind energy property expenditures made by the taxpayer during such year, and</text></paragraph> <paragraph id="HDD9F0BF432224C8FB8BB05ACFEBDD85"><enum>(4)</enum><text>20 percent of the qualified fuel cell property expenditures made by the taxpayer during such year.</text></paragraph></subsection> <subsection id="HDAA98F9625D548538652880007A71799"><enum>(b)</enum><header>Limitations</header> <paragraph id="HCE4C7C7E80B54418B0DAD95E2E28D4EC"><enum>(1)</enum><header>Maximum credit</header> <subparagraph id="HAED999CCF0C34C1783F200048E51BF73"><enum>(A)</enum><header>In general</header><text>The credit allowed under subsection (a) shall not exceed—</text> <clause id="HF700F2137F8D44B99494DBCCD94F12"><enum>(i)</enum><text>$2,000 for property described in paragraph (1), (2), or (3) of subsection (c), and</text></clause> <clause id="H2F0B25246B6049849998BD8844A66CC9"><enum>(ii)</enum><text>$500 for each 0.5 kilowatt of capacity of property described in subsection (c)(4).</text></clause></subparagraph> <subparagraph id="HB03DAB06868744D7B9B968888400CF1E"><enum>(B)</enum><header>Prior expenditures by taxpayer on same residence taken into account</header><text>In determining the amount of the credit allowed to a taxpayer with respect to any dwelling unit under this section, the dollar amount under subparagraph (A)(i) with respect to each type of property described in such subparagraph shall be reduced by the credit allowed to the taxpayer under this section with respect to such property for all preceding taxable years with respect to such dwelling unit.</text></subparagraph></paragraph> <paragraph id="HF60FB39C2DE043A6B379CD14C5BB3652"><enum>(2)</enum><header>Property standards</header><text>No credit shall be allowed under this section for an item of property unless—</text> <subparagraph id="H0CA13CEB630D466389A3408047E4A600"><enum>(A)</enum><text>the original use of such property commences with the taxpayer,</text></subparagraph> <subparagraph id="HA6F8171486F54D8F007ED1A46C8E8C81"><enum>(B)</enum><text>such property reasonably can be expected to remain in use for at least 5 years,</text></subparagraph> <subparagraph id="H25E543F4E9154FE283DE70216E64C43D"><enum>(C)</enum><text>such property is installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer,</text></subparagraph> <subparagraph id="H0D49E346992E4C8880AD5D8C47B0517C"><enum>(D)</enum><text>in the case of solar water heating property, such property is certified for performance by the non-profit Solar Rating and Certification Corporation or a comparable entity endorsed by the government of the State in which such property is installed,</text></subparagraph> <subparagraph id="H0F3C09D27DE041EBA8966927972E60D"><enum>(E)</enum><text>in the case of fuel cell property, such property meets the performance and quality standards (if any) which have been prescribed by the Secretary by regulations (after consultation with the Secretary of Energy), and</text></subparagraph> <subparagraph id="H0E7252301B994D2081907217D5B6BB27"><enum>(F)</enum><text>in the case of any photovoltaic property, fuel cell property, or wind energy property, such property meets appropriate fire and electric code requirements.</text></subparagraph></paragraph></subsection> <subsection id="H6C474E8D7F2E47B3AB4B141068232497"><enum>(c)</enum><header>Definitions</header><text>For purposes of this section—</text> <paragraph id="HB522923FEDFB44418E793D75A59516CE"><enum>(1)</enum><header>Qualified solar water heating property expenditure</header><text>The term <term>qualified solar water heating property expenditure</term> means an expenditure for property which uses solar energy to heat water for use in a dwelling unit.</text></paragraph> <paragraph id="H60B38A600C62498AB1EB5900DD8B41E8"><enum>(2)</enum><header>Qualified photovoltaic property expenditure</header><text>The term <term>qualified photovoltaic property expenditure</term> means an expenditure for property which uses solar energy to generate electricity for use in a dwelling unit and which is not described in paragraph (1).</text></paragraph> <paragraph id="H6839A29BB2484321A828907429DD7775"><enum>(3)</enum><header>Qualified wind energy property expenditure</header><text>The term <term>qualified wind energy property expenditure</term> means an expenditure for property which uses wind energy to generate electricity for use in a dwelling unit.</text></paragraph> <paragraph id="H1E4BC9EB38CD4A48828BF2D55F26A99E"><enum>(4)</enum><header>Qualified fuel cell property expenditure</header><text>The term <term>qualified fuel cell property expenditure</term> means an expenditure for any qualified fuel cell property (as defined in section 48(c)(1)).</text></paragraph></subsection> <subsection id="HD6BDC16A3B6A42C792FB16CD66A041BD"><enum>(d)</enum><header>Special rules</header><text>For purposes of this section—</text> <paragraph id="HC21694D1F820436BA353545221D375DE"><enum>(1)</enum><header>Solar panels</header><text>No expenditure relating to a solar panel or other property installed as a roof (or portion thereof) shall fail to be treated as property described in paragraph (1) or (2) of subsection (c) solely because it constitutes a structural component of the structure on which it is installed.</text></paragraph> <paragraph id="HF77B21FB74D04FF89948E666FE07CF21"><enum>(2)</enum><header>Swimming pools, etc., used as storage medium</header><text>Expenditures which are properly allocable to a swimming pool, hot tub, or any other energy storage medium which has a function other than the function of such storage shall not be taken into account for purposes of this section.</text></paragraph> <paragraph id="H2F0B9769BE1E4F309359C45F9B163D00"><enum>(3)</enum><header>Dollar amounts in case of joint occupancy</header><text>In the case of any dwelling unit which is jointly occupied and used during any calendar year as a residence by 2 or more individuals, the following rules shall apply:</text> <subparagraph id="HFAA289F37FF24C818974370035A8B3F0"><enum>(A)</enum><text>The amount of the credit allowable under subsection (a) by reason of expenditures made during such calendar year by any of such individuals with respect to such dwelling unit shall be determined by treating all of such individuals as 1 taxpayer whose taxable year is such calendar year.</text></subparagraph> <subparagraph id="H949F1970C22A41D289CEF60F442791F"><enum>(B)</enum><text>There shall be allowable, with respect to such expenditures to each of such individuals, a credit under subsection (a) for the taxable year in which such calendar year ends in an amount which bears the same ratio to the amount determined under subparagraph (A) as the amount of such expenditures made by such individual during such calendar year bears to the aggregate of such expenditures made by all of such individuals during such calendar year.</text></subparagraph> <subparagraph id="H5BF320506ADD47E88805EC07B72E004C"><enum>(C)</enum><text>Subparagraphs (A) and (B) shall be applied separately with respect to expenditures described in paragraphs (1), (2), (3), and (4) of subsection (c).</text></subparagraph></paragraph> <paragraph id="H3DA82E77FFB247FE81EC11C2BDD5F24D"><enum>(4)</enum><header>Tenant-stockholder in cooperative housing corporation</header><text>In the case of an individual who is a tenant-stockholder (as defined in section 216) in a cooperative housing corporation (as defined in such section), such individual shall be treated as having made the individual’s tenant-stockholder’s proportionate share (as defined in section 216(b)(3)) of any expenditures of such corporation.</text></paragraph> <paragraph id="HEB7A236BA72E451DB5CB003F395FB8C6"><enum>(5)</enum><header>Condominiums</header> <subparagraph id="HDBCC671EFD8E4AEAB700D35769D7D738"><enum>(A)</enum><header>In general</header><text>In the case of an individual who is a member of a condominium management association with respect to a condominium which the individual owns, such individual shall be treated as having made the individual’s proportionate share of any expenditures of such association.</text></subparagraph> <subparagraph id="H953CB9D0DA7A4709A4A30068F1FFFE85"><enum>(B)</enum><header>Condominium management association</header><text>For purposes of this paragraph, the term <term>condominium management association</term> means an organization which meets the requirements of paragraph (1) of section 528(c) (other than subparagraph (E) thereof) with respect to a condominium project substantially all of the units of which are used as residences.</text></subparagraph></paragraph> <paragraph id="HCDCD61223D3B4CD8A2613C8CC103A667"><enum>(6)</enum><header>Allocation in certain cases</header><text>Except in the case of qualified wind energy property expenditures, if less than 80 percent of the use of an item is for nonbusiness purposes, only that portion of the expenditures for such item which is properly allocable to use for nonbusiness purposes shall be taken into account.</text></paragraph> <paragraph id="H38CB29281D4B4A21BC1F0061D2A00468"><enum>(7)</enum><header>When expenditure made; amount of expenditure</header> <subparagraph id="H4D251D29580C457ABD554E81123900F9"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), an expenditure with respect to an item shall be treated as made when the original installation of the item is completed.</text></subparagraph> <subparagraph id="HF03FAD0DAF354D8AA1AC57720415D0C"><enum>(B)</enum><header>Expenditures part of building construction</header><text>In the case of an expenditure in connection with the construction or reconstruction of a structure, such expenditure shall be treated as made when the original use of the constructed or reconstructed structure by the taxpayer begins.</text></subparagraph> <subparagraph id="H3442AC9C88B942B8A0952D6780A937F0"><enum>(C)</enum><header>Amount</header><text>The amount of any expenditure shall be the cost thereof.</text></subparagraph></paragraph> <paragraph id="HE8C2B1C8B2AA4C419ECD027DF7DC02C7"><enum>(8)</enum><header>Property financed by subsidized energy financing</header><text>For purposes of determining the amount of expenditures made by any individual with respect to any dwelling unit, there shall not be taken into account expenditures which are made from subsidized energy financing (as defined in section 48(a)(4)(C)).</text></paragraph> <paragraph id="HC479FFFFC3CE4FEDB71CF26FFFC3D3B5"><enum>(9)</enum><header>Denial of depreciation on wind energy property for which credit allowed</header><text>No deduction shall be allowed under section 167 for property which uses wind energy to generate electricity if the taxpayer is allowed a credit under this section with respect to such property.</text></paragraph></subsection> <subsection id="HF94105920693464FA889F9859204E1AC"><enum>(e)</enum><header>Basis adjustments</header><text>For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed.</text></subsection> <subsection id="HFF22BE94048C4A6E87AB0031253E9143"><enum>(f)</enum><header>Termination</header><text>The credit allowed under this section shall not apply to taxable years beginning after December 31, 2006 (December 31, 2008, with respect to qualified photovoltaic property expenditures).</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HB213A31189CE4FAE9372A9E572B11CF4"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H56E41D09271541B2BE56A555EC18611D"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/1016">Section 1016(a)</external-xref> is amended by striking <quote>and</quote> at the end of paragraph (27), by striking the period at the end of paragraph (28) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="H7D2F7D573D194B78BA37C7DCE31D30D4"> <paragraph id="H4F9BCBBF889245C3916DBE322F58B1AE"><enum>(29)</enum><text>to the extent provided in section 25C(e), in the case of amounts with respect to which a credit has been allowed under section 25C.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HE345C011AA9747D5A25E44029C6564F1"><enum>(2)</enum><text>The table of sections for subpart A of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 25B the following new item:</text> <quoted-block style="OLC" id="H3C1AD89670894777007ECFFE79918186"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 25C. Residential energy efficient property</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HB007BF5472174DB08781A562DB76BAF"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years ending after December 31, 2003.</text></subsection></section> <section id="H85EDEA13B9E8407A8C31CF4382556270"><enum>1302.</enum><header>Extension and expansion of credit for electricity produced from certain renewable resources</header> <subsection id="HDF127455CB854E88A43E2EBBB2C0D98E"><enum>(a)</enum><header>Expansion of qualified energy resources</header><text>Subsection (c) of section 45 (relating to electricity produced from certain renewable resources) is amended to read as follows:</text> <quoted-block id="HA9B422F5C0DE42EB8C6DEA00BE13E800"> <subsection id="H13EFDF1B5E354C1C894259D1E8B7FC2D"><enum>(c)</enum><header>Qualified energy resources</header><text>For purposes of this section—</text> <paragraph id="HE50EBFE4A543427485F5F991A9C235B0"><enum>(1)</enum><header>In general</header><text>The term <term>qualified energy resources</term> means—</text> <subparagraph id="H6F5A86DE1A0F47D1B67E71516509A8A4"><enum>(A)</enum><text>wind,</text></subparagraph> <subparagraph id="H779F3B674ADF4FEFA0002DC573B92417"><enum>(B)</enum><text>closed-loop biomass,</text></subparagraph> <subparagraph id="H3045C2F8205B45EA8EC6B042661CBD99"><enum>(C)</enum><text>open-loop biomass,</text></subparagraph> <subparagraph id="H41157D7AB3814739AA2C78BC7B24784C"><enum>(D)</enum><text>geothermal energy,</text></subparagraph> <subparagraph id="H6F544E55A22A47D59393A3D024393727"><enum>(E)</enum><text>solar energy,</text></subparagraph> <subparagraph id="H2AA13E14B9B147F2B5D1AB59FE127936"><enum>(F)</enum><text>small irrigation power, and</text></subparagraph> <subparagraph id="H4E2E212B62A449D489A2E17093AA42F4"><enum>(G)</enum><text>municipal solid waste.</text></subparagraph></paragraph> <paragraph id="HABF467A22C5E4B8F8050C8200E4F763"><enum>(2)</enum><header>Closed-loop biomass</header><text>The term <term>closed-loop biomass</term> means any organic material from a plant which is planted exclusively for purposes of being used at a qualified facility to produce electricity.</text></paragraph> <paragraph id="HFDCF65452A3F4CB4BD7ED4BECBD5CDE2"><enum>(3)</enum><header>Open-loop biomass</header> <subparagraph id="H5C9E709BD15649DAA3FCE4811393708"><enum>(A)</enum><header>In general</header><text>The term <term>open-loop biomass</term> means—</text> <clause id="HAAE306372207410E886E9DA9015B00EB"><enum>(i)</enum><text>any agricultural livestock waste nutrients, or</text></clause> <clause id="H0E3E3F57D90946A48091E500DE01E008"><enum>(ii)</enum><text>any solid, nonhazardous, cellulosic waste material which is segregated from other waste materials and which is derived from—</text> <subclause id="H6D2BB0D28A33480884E23E36458F2C3D"><enum>(I)</enum><text>any of the following forest-related resources: mill and harvesting residues, precommercial thinnings, slash, and brush,</text></subclause> <subclause id="HA970756BA36343A1823BF45140FF4294"><enum>(II)</enum><text>solid wood waste materials, including waste pallets, crates, dunnage, manufacturing and construction wood wastes (other than pressure-treated, chemically-treated, or painted wood wastes), and landscape or right-of-way tree trimmings, but not including municipal solid waste, gas derived from the biodegradation of solid waste, or paper which is commonly recycled, or</text></subclause> <subclause id="H3DEE94C9806447F59F1D72AD403FE861"><enum>(III)</enum><text>agriculture sources, including orchard tree crops, vineyard, grain, legumes, sugar, and other crop by-products or residues.</text></subclause></clause><continuation-text continuation-text-level="subparagraph">Such term shall not include closed-loop biomass.</continuation-text></subparagraph> <subparagraph id="H136BFC92758442B08B5C953DB35982D"><enum>(B)</enum><header>Agricultural livestock waste nutrients</header> <clause id="HCF6A1CBCC6954C5C8E43F57CBA394E40"><enum>(i)</enum><header>In general</header><text>The term <term>agricultural livestock waste nutrients</term> means agricultural livestock manure and litter, including wood shavings, straw, rice hulls, and other bedding material for the disposition of manure.</text></clause> <clause id="HD87612072C6840938FF3C4C1F2F3CB12"><enum>(ii)</enum><header>Agricultural livestock</header><text>The term <term>agricultural livestock</term> includes bovine, swine, poultry, and sheep.</text></clause></subparagraph></paragraph> <paragraph id="H90A39695840B486C83A8E4E52B97311E"><enum>(4)</enum><header>Geothermal energy</header><text>The term <term>geothermal energy</term> means energy derived from a geothermal deposit (within the meaning of section 613(e)(2)).</text></paragraph> <paragraph id="HBDD6D9CFD42B4DF3B9C1583148EEFE00"><enum>(5)</enum><header>Small irrigation power</header><text>The term <term>small irrigation power</term> means power—</text> <subparagraph id="H7845EA4D625F42EFB64762F24C3EB4C5"><enum>(A)</enum><text>generated without any dam or impoundment of water through an irrigation system canal or ditch, and</text></subparagraph> <subparagraph id="HD4E811DC2AD048319642FF229DCD79DD"><enum>(B)</enum><text>the nameplate capacity rating of which is not less than 150 kilowatts but is less than 5 megawatts.</text></subparagraph></paragraph> <paragraph id="H9AA4FF9E7F0E49CD9BC9B1E9FF067D92"><enum>(6)</enum><header>Municipal solid waste</header><text>The term <term>municipal solid waste</term> has the meaning given the term <term>solid waste</term> under section 2(27) of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6903">42 U.S.C. 6903</external-xref>).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H2B1D3C47F4CD43B2878E696217844BE0"><enum>(b)</enum><header>Extension and expansion of qualified facilities</header> <paragraph id="H36E59B1923D543C189405305939167A6"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45</external-xref> is amended by redesignating subsection (d) as subsection (e) and by inserting after subsection (c) the following new subsection:</text> <quoted-block id="HF38EBD30FC1649CABE857CC2913C0525"> <subsection id="H937092BDE08348CEAF00D85157293EAA"><enum>(d)</enum><header>Qualified facilities</header><text>For purposes of this section—</text> <paragraph id="H2AA7906CD8F54FDEBDF265B18C003100"><enum>(1)</enum><header>Wind facility</header><text>In the case of a facility using wind to produce electricity, the term <term>qualified facility</term> means any facility owned by the taxpayer which is originally placed in service after December 31, 1993, and before January 1, 2007.</text></paragraph> <paragraph id="HADB40E77665A4ACC804CA81DEDF91E14"><enum>(2)</enum><header>Closed-loop biomass facility</header> <subparagraph id="H842D7C2933BA413DBD42EEC534BE87FC"><enum>(A)</enum><header>In general</header><text>In the case of a facility using closed-loop biomass to produce electricity, the term <term>qualified facility</term> means any facility—</text> <clause id="H7BFB721CE63D4DA284CD4E67575B10E6"><enum>(i)</enum><text>owned by the taxpayer which is originally placed in service after December 31, 1992, and before January 1, 2007, or</text></clause> <clause id="H89C8988490FF460D8BA3E6C4E991CD23"><enum>(ii)</enum><text>owned by the taxpayer which before January 1, 2007, is originally placed in service and modified to use closed-loop biomass to co-fire with coal, with other biomass, or with both, but only if the modification is approved under the Biomass Power for Rural Development Programs or is part of a pilot project of the Commodity Credit Corporation as described in 65 Fed. Reg. 63052.</text></clause></subparagraph> <subparagraph id="H1DA1B7397C3547E8A0FFF0EA1BC9D2BA"><enum>(B)</enum><header>Special rules</header><text>In the case of a qualified facility described in subparagraph (A)(ii)—</text> <clause id="HAC3874150CD445C2902E32DC006C08EC"><enum>(i)</enum><text>the 10-year period referred to in subsection (a) shall be treated as beginning no earlier than the date of the enactment of the <short-title>Energy Tax Policy Act of 2004</short-title>,</text></clause> <clause id="H9A4DDB94F28B4C3EA15CEBA6097F0600"><enum>(ii)</enum><text>the amount of the credit determined under subsection (a) with respect to the facility shall be an amount equal to the amount determined without regard to this clause multiplied by the ratio of the thermal content of the closed-loop biomass used in such facility to the thermal content of all fuels used in such facility, and</text></clause> <clause id="H5136871908F6437EBA2E0478A930D760"><enum>(iii)</enum><text>if the owner of such facility is not the producer of the electricity, the person eligible for the credit allowable under subsection (a) shall be the lessee or the operator of such facility.</text></clause></subparagraph></paragraph> <paragraph id="HF66D96665F454C18A8F61900EF06CCC5"><enum>(3)</enum><header>Open-loop biomass facilities</header> <subparagraph id="HEC61942D1D984312A44F23CA09368CFC"><enum>(A)</enum><header>In general</header><text>In the case of a facility using open-loop biomass to produce electricity, the term <term>qualified facility</term> means any facility owned by the taxpayer which—</text> <clause id="H777EC4B505A54D6C9F7C0441CEE92C8"><enum>(i)</enum><text>in the case of a facility using agricultural livestock waste nutrients—</text> <subclause id="HA0E62B8CEA46405A80CC4346A4CE2315"><enum>(I)</enum><text>is originally placed in service after the date of the enactment of the <short-title>Energy Tax Policy Act of 2004</short-title> and before January 1, 2007, and</text></subclause> <subclause id="HCB787AB3BFF14D0D81725D496200BD00"><enum>(II)</enum><text>the nameplate capacity rating of which is not less than 150 kilowatts, and</text></subclause></clause> <clause id="HA1CD09C87A6B4FDD9F3D7B00021E7CBD"><enum>(ii)</enum><text>in the case of any other facility, is originally placed in service before January 1, 2007.</text></clause></subparagraph> <subparagraph id="H75098B952340426B0000B283A511EB27"><enum>(B)</enum><header>Credit eligibility</header><text>In the case of any facility described in subparagraph (A), if the owner of such facility is not the producer of the electricity, the person eligible for the credit allowable under subsection (a) shall be the lessee or the operator of such facility.</text></subparagraph></paragraph> <paragraph id="H8F6DDC5A6801401C8C9B359021734FBE"><enum>(4)</enum><header>Geothermal or solar energy facility</header><text>In the case of a facility using geothermal or solar energy to produce electricity, the term <term>qualified facility</term> means any facility owned by the taxpayer which is originally placed in service after the date of the enactment of the <short-title>Energy Tax Policy Act of 2004</short-title> and before January 1, 2007. Such term shall not include any property described in section 48(a)(3) the basis of which is taken into account by the taxpayer for purposes of determining the energy credit under section 48.</text></paragraph> <paragraph id="H520B3FAB400E422D00F6146DDBC5B5E9"><enum>(5)</enum><header>Small irrigation power facility</header><text>In the case of a facility using small irrigation power to produce electricity, the term <term>qualified facility</term> means any facility owned by the taxpayer which is originally placed in service after the date of the enactment of the <short-title>Energy Tax Policy Act of 2004</short-title> and before January 1, 2007.</text></paragraph> <paragraph id="HC0A7B376863D4A06B952AE95619D0992"><enum>(6)</enum><header>Landfill gas facilities</header><text>In the case of a facility producing electricity from gas derived from the biodegradation of municipal solid waste, the term <term>qualified facility</term> means any facility owned by the taxpayer which is originally placed in service after the date of the enactment of the <short-title>Energy Tax Policy Act of 2004</short-title> and before January 1, 2007.</text></paragraph> <paragraph id="H239A079C0126407CAD6C9939AC5BC75C"><enum>(7)</enum><header>Trash combustion facilities</header><text>In the case of a facility which burns municipal solid waste to produce electricity, the term <term>qualified facility</term> means any facility owned by the taxpayer which is originally placed in service after the date of the enactment of the <short-title>Energy Tax Policy Act of 2004</short-title> and before January 1, 2007.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HEB7E7586DA454F2C9D99EB283200655D"><enum>(2)</enum><header>Conforming amendment</header><text>Section 45(e), as so redesignated, is amended by striking <quote>subsection (c)(3)(A)</quote> in paragraph (7)(A)(i) and inserting <quote>subsection (d)(1)</quote>.</text></paragraph></subsection> <subsection id="HEA267B74675D4A0DBB2793073F7F2F56"><enum>(c)</enum><header>Special credit rate and period for electricity produced and sold after enactment date</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(b)</external-xref> is amended by adding at the end the following new paragraph:</text> <quoted-block id="H681A0B3992FE48F9A2F5C47DC6C4569F"> <paragraph id="H195B8E2E2BC94211ADF8CC41C6642C81"><enum>(4)</enum><header>Credit rate and period for electricity produced and sold from certain facilities</header> <subparagraph id="HA676BD1C2A074889A4F87B534412F294"><enum>(A)</enum><header>Credit rate</header><text>In the case of electricity produced and sold in any calendar year after 2003 at any qualified facility described in paragraph (3), (5), (6), or (7) of subsection (d), the amount in effect under subsection (a)(1) for such calendar year (determined before the application of the last sentence of paragraph (2) of this subsection) shall be reduced by one-third.</text></subparagraph> <subparagraph id="H400864758544467289DBB93DF1697CAA"><enum>(B)</enum><header>Credit period</header> <clause id="H2DB3C434EA464BFCAFB63B3880BED0CA"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), in the case of any facility described in paragraph (3), (4), (5), (6), or (7) of subsection (d), the 5-year period beginning on the date the facility was originally placed in service shall be substituted for the 10-year period in subsection (a)(2)(A)(ii).</text></clause> <clause id="H39D871B91CF34AA2A13CCBA124B449A2"><enum>(ii)</enum><header>Certain open-loop biomass facilities</header><text>In the case of any facility described in subsection (d)(3)(A)(ii) placed in service before the date of the enactment of this paragraph, the 5-year period beginning on January 1, 2004, shall be substituted for the 10-year period in subsection (a)(2)(A)(ii).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H66C8E45631F6450F97624690854F6E23"><enum>(d)</enum><header>Coordination with other credits</header><text>Section 45(e), as so redesignated, is amended by adding at the end the following new paragraph:</text> <quoted-block id="H1C53138E8EB044BEAE3EC8103365604E"> <paragraph id="H4E9C996861E842B38BEAD20007E39E8E"><enum>(8)</enum><header>Coordination with other credits</header><text>The term <term>qualified facility</term> shall not include—</text> <subparagraph id="HF74EDF7085EF4D309C360315E002125"><enum>(A)</enum><text>any property with respect to which a credit is allowed under section 25C, and</text></subparagraph> <subparagraph id="HF08BA1B28F534EAA8D1E37DF0049FD07"><enum>(B)</enum><text>any facility the production from which is allowed as a credit under section 45K,</text></subparagraph><continuation-text continuation-text-level="paragraph">for the taxable year or any prior taxable year.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H22D1081A3B104050834ED71E57798EC"><enum>(e)</enum><header>Coordination with Section 48</header><text>Section 48(a)(3) (defining energy property) is amended by adding at the end the following new sentence: <quote>Such term shall not include any property which is part of a facility the production from which is allowed as a credit under section 45 for the taxable year or any prior taxable year.</quote>.</text></subsection> <subsection id="H3C443351E6764525A33B5E9B001B29BE"><enum>(f)</enum><header>Elimination of certain credit reductions</header><text>Section 45(b)(3) (relating to credit reduced for grants, tax-exempt bonds, subsidized energy financing, and other credits) is amended—</text> <paragraph id="H7DC15A44614A4296B64C6E3FD6A141FE"><enum>(1)</enum><text>by inserting <quote>the lesser of <fraction>1/2</fraction> or</quote> before <quote>a fraction</quote> in the matter preceding subparagraph (A), and</text></paragraph> <paragraph id="H1E3C3C279DCB4E978061A497B745A9B"><enum>(2)</enum><text>by adding at the end the following new sentence: <quote>This paragraph shall not apply with respect to any facility described in subsection (d)(2)(A)(ii).</quote>.</text></paragraph></subsection> <subsection id="H2F07B90BE413489791F7FBF747B1F23"><enum>(g)</enum><header>Effective dates</header> <paragraph id="H00E2F080165C4AD2A1A61DE526B4FA7F"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection, the amendments made by this section shall apply to electricity produced and sold after the date of the enactment of this Act, in taxable years ending after such date.</text></paragraph> <paragraph id="H2D3DCDFB0EDD48CDAA10FCEF49C2A3D3"><enum>(2)</enum><header>Certain biomass facilities</header><text>With respect to any facility described in <external-xref legal-doc="usc" parsable-cite="usc/26/45">section 45(d)(3)(A)(ii)</external-xref> of the Internal Revenue Code of 1986, as added by subsection (b)(1), which is placed in service before the date of the enactment of this Act, the amendments made by this section shall apply to electricity produced and sold after December 31, 2003, in taxable years ending after such date.</text></paragraph> <paragraph id="H8357252DE6B14257914DAB8C47FF5526"><enum>(3)</enum><header>Credit rate and period for new facilities</header><text>The amendments made by subsection (c) shall apply to electricity produced and sold after December 31, 2003, in taxable years ending after such date.</text></paragraph> <paragraph id="HA264684BE35F4154844F71735961BF20"><enum>(4)</enum><header>Nonapplication of amendments to preeffective date poultry waste facilities</header><text>The amendments made by this section shall not apply with respect to any poultry waste facility (within the meaning of section 45(c)(3)(C), as in effect on the day before the date of the enactment of this Act) placed in service before January 1, 2004.</text></paragraph></subsection> <subsection id="HA4A6914384B64E62A73B00D7F02E8B7D"><enum>(h)</enum><header>GAO study</header><text>The Comptroller General of the United States shall conduct a study on the market viability of producing electricity from resources with respect to which credit is allowed under <external-xref legal-doc="usc" parsable-cite="usc/26/45">section 45</external-xref> of the Internal Revenue Code of 1986 but without such credit. In the case of open-loop biomass and municipal solid waste resources, the study should take into account savings associated with not having to dispose of such resources. In conducting such study, the Comptroller shall estimate the dollar value of the environmental impact of producing electricity from such resources relative to producing electricity from fossil fuels using the latest generation of technology. Not later than June 30, 2006, the Comptroller shall report on such study to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate.</text></subsection></section> <section id="HEF68A2822E6D4E88A057F072021BB025"><enum>1303.</enum><header>Credit for business installation of qualified fuel cells</header> <subsection id="HA683A77DAF364040BEC71DCED7BCE300"><enum>(a)</enum><header>In general</header><text>Section 48(a)(3)(A) (defining energy property) is amended by striking <quote>or</quote> at the end of clause (i), by adding <quote>or</quote> at the end of clause (ii), and by inserting after clause (ii) the following new clause:</text> <quoted-block id="H83E8E59227D94E4AB48E44DF79A5A9F1"> <clause id="HA09F17F6946B4968BC7C00FF96D29200"><enum>(iii)</enum><text>qualified fuel cell property,</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H5C902E4EDA4544C690F004D4247F714"><enum>(b)</enum><header>Qualified fuel cell property</header><text>Section 48 (relating to energy credit; reforestation credit) is amended by adding at the end the following new subsection:</text> <quoted-block id="H76BA807B59C742A0BFB086176FE413F9"> <subsection id="HD1952746CCE94A23B286E7B440D1FEA5"><enum>(c)</enum><header>Qualified fuel cell property</header><text>For purposes of subsection (a)(3)(A)(iii)—</text> <paragraph id="H85EB898051B84C179FA400B22CB83C46"><enum>(1)</enum><header>In general</header><text>The term <term>qualified fuel cell property</term> means a fuel cell power plant which generates at least 0.5 kilowatt of electricity using an electrochemical process.</text></paragraph> <paragraph id="H137A8EA1BE064A14B3F443F35BE00088"><enum>(2)</enum><header>Limitation</header><text>The energy credit with respect to any qualified fuel cell property shall not exceed an amount equal to $500 for each 0.5 kilowatt of capacity of such property.</text></paragraph> <paragraph id="HE48C56BA92104A2B94E2DF4816EDA4E1"><enum>(3)</enum><header>Fuel cell power plant</header><text>The term <term>fuel cell power plant</term> means an integrated system, comprised of a fuel cell stack assembly and associated balance of plant components, which converts a fuel into electricity using electrochemical means.</text></paragraph> <paragraph id="H5DB77138D069438AAC3D3D947F802B21"><enum>(4)</enum><header>Termination</header><text>The term <term>qualified fuel cell property</term> shall not include any property placed in service after December 31, 2006.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H0610D910D7DA488B00DCEA00762187E"><enum>(c)</enum><header>Energy percentage</header><text>Subparagraph (A) of section 48(a)(2) (relating to energy percentage) is amended to read as follows:</text> <quoted-block id="HD8D41F4E779B4D0EB9B3DB894F17F454"> <subparagraph id="H5591284AFB1140C097008942008B32C9"><enum>(A)</enum><header>In general</header><text>The energy percentage is—</text> <clause id="HAF853465768D4C5F90E1CFC49162C6FA"><enum>(i)</enum><text>in the case of qualified fuel cell property, 20 percent, and</text></clause> <clause id="HBA4A711E4E82426B9890558C39D43582"><enum>(ii)</enum><text>in the case of any other energy property, 10 percent.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HD087ADB05CAF41F99CCDDA62E121377E"><enum>(d)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(1)</external-xref> is amended by inserting <quote>except as provided in subsection (c)(2),</quote> before <quote>the energy</quote>.</text></subsection> <subsection id="HB8B8BCD1FB5A4EF68D44F69DB9A1E48"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to periods after December 31, 2003, under rules similar to the rules of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).</text></subsection></section> <section id="HD21D7C5F2DA14516A7CF495E65731C20"><enum>1304.</enum><header>Credit for energy efficiency improvements to existing homes</header> <subsection id="H293453BE83004FB5932800EE51AD79AB"><enum>(a)</enum><header>In general</header><text>Subpart A of part IV of subchapter A of chapter 1 (relating to nonrefundable personal credits), as amended by this Act, is amended by inserting after section 25C the following new section:</text> <quoted-block id="HE572CB6160D641E0AB8F7E6DF49B3400"> <section id="HF7B123B9668042738FE79561717F7D08"><enum>25D.</enum><header>Energy efficiency improvements to existing homes</header> <subsection id="HE12E9C8E1EE14D12ADC2F366C043568"><enum>(a)</enum><header>Allowance of credit</header><text>In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 20 percent of the amount paid or incurred by the taxpayer for qualified energy efficiency improvements installed during such taxable year.</text></subsection> <subsection id="HB48B838928C34ABCA4E2D1A4FCDB32D4"><enum>(b)</enum><header>Limitations</header> <paragraph id="H709A5E9D3E4C4FBCBC5DC7DB3430C4DC"><enum>(1)</enum><header>Maximum credit</header><text>The credit allowed by this section with respect to a dwelling unit shall not exceed $2,000.</text></paragraph> <paragraph id="HD609BE2BAC2245688D530066D1A5258E"><enum>(2)</enum><header>Prior credit amounts for taxpayer on same dwelling taken into account</header><text>If a credit was allowed to the taxpayer under subsection (a) with respect to a dwelling unit in 1 or more prior taxable years, the amount of the credit otherwise allowable for the taxable year with respect to that dwelling unit shall be reduced by the sum of the credits allowed under subsection (a) to the taxpayer with respect to the dwelling unit for all prior taxable years.</text></paragraph></subsection> <subsection id="H7D923EAEA24B45438839086217C678D"><enum>(c)</enum><header>Qualified energy efficiency improvements</header><text>For purposes of this section, the term <term>qualified energy efficiency improvements</term> means any energy efficient building envelope component which meets the prescriptive criteria for such component established by the 2000 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of this section (or, in the case of a metal roof with appropriate pigmented coatings which meet the Energy Star program requirements), if—</text> <paragraph id="H97D86AE424DC441B97B0BDDD99DBECDD"><enum>(1)</enum><text>such component is installed in or on a dwelling unit—</text> <subparagraph id="H643065D078BC42C99924FDB11D641B2B"><enum>(A)</enum><text>located in the United States,</text></subparagraph> <subparagraph id="H25F9B62BB36B45EC80A0EF22F2A600EE"><enum>(B)</enum><text>owned and used by the taxpayer as the taxpayer’s principal residence (within the meaning of section 121), and</text></subparagraph> <subparagraph id="HB3521739C3B845C18C05B9E174FCFFBA"><enum>(C)</enum><text>which has not been treated as a qualified new energy efficient home for purposes of any credit allowed under section 45G,</text></subparagraph></paragraph> <paragraph id="H8314EFB2AC6F497700292F118555E07F"><enum>(2)</enum><text>the original use of such component commences with the taxpayer, and</text></paragraph> <paragraph id="HDC5F0B99894144D495765903F602218F"><enum>(3)</enum><text>such component reasonably can be expected to remain in use for at least 5 years.</text></paragraph><continuation-text continuation-text-level="subsection">If the aggregate cost of such components with respect to any dwelling unit exceeds $1,000, such components shall be treated as qualified energy efficiency improvements only if such components are also certified in accordance with subsection (d) as meeting such prescriptive criteria.</continuation-text></subsection> <subsection id="H6B788835018B49E789BE1071720016CA"><enum>(d)</enum><header>Certification</header><text>The certification described in subsection (c) shall be—</text> <paragraph id="H6A0C3EC85F324FCF88E86642FBFEF15D"><enum>(1)</enum><text>determined on the basis of the technical specifications or applicable ratings (including product labeling requirements) for the measurement of energy efficiency (based upon energy use or building envelope component performance) for the energy efficient building envelope component,</text></paragraph> <paragraph id="HEA3DC5698C8940A5A07F30D04986CCF7"><enum>(2)</enum><text>provided by a local building regulatory authority, a utility, a manufactured home production inspection primary inspection agency (IPIA), or an accredited home energy rating system provider who is accredited by or otherwise authorized to use approved energy performance measurement methods by the Residential Energy Services Network (RESNET), and</text></paragraph> <paragraph id="HBB45F89C4F524B1D952B3667D5BB5D3F"><enum>(3)</enum><text>made in writing in a manner which specifies in readily verifiable fashion the energy efficient building envelope components installed and their respective energy efficiency levels.</text></paragraph></subsection> <subsection id="H6731A56E487B441BA8E5AAB8DE7DAB71"><enum>(e)</enum><header>Definitions and special rules</header><text>For purposes of this section—</text> <paragraph id="HAE4E5CD021AE41C8A758E85BD215DAA3"><enum>(1)</enum><header>Building envelope component</header><text>The term <term>building envelope component</term> means—</text> <subparagraph id="HAB9AA55172C94A8686DDA9F954C7D035"><enum>(A)</enum><text>any insulation material or system which is specifically and primarily designed to reduce the heat loss or gain of a dwelling unit when installed in or on such dwelling unit,</text></subparagraph> <subparagraph id="HB0E51596F83B4BE0ADD5738418B62204"><enum>(B)</enum><text>exterior windows (including skylights),</text></subparagraph> <subparagraph id="H643EFE850D424F34B6CC8EEFA2D67800"><enum>(C)</enum><text>exterior doors, and</text></subparagraph> <subparagraph id="H0FA612321BA549789BB70F92872A292"><enum>(D)</enum><text>any metal roof installed on a dwelling unit, but only if such roof has appropriate pigmented coatings which are specifically and primarily designed to reduce the heat gain of such dwelling unit.</text></subparagraph></paragraph> <paragraph id="H7900F9C707384D9FAD5DE651288CD823"><enum>(2)</enum><header>Manufactured homes included</header><text>The term <term>dwelling unit</term> includes a manufactured home which conforms to Federal Manufactured Home Construction and Safety Standards (<external-xref legal-doc="cfr" parsable-cite="cfr/24/3280">section 3280</external-xref> of title 24, Code of Federal Regulations).</text></paragraph> <paragraph id="H0B534EDA231F47B6A0C1B770F8E4D220"><enum>(3)</enum><header>Application of rules</header><text>Rules similar to the rules under paragraphs (3), (4), and (5) of section 25C(d) shall apply.</text></paragraph></subsection> <subsection id="H51C736EFC60F4328AD129100C338A056"><enum>(f)</enum><header>Basis adjustment</header><text>For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed.</text></subsection> <subsection id="H9135F298C7364069810042957764992B"><enum>(g)</enum><header>Application of Section</header><text>This section shall apply to qualified energy efficiency improvements installed after December 31, 2003, and before January 1, 2007.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H0BCF7F9FFA7E4206BBD50436A3A8CB00"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="HD64F9D3C7EE84519969F4FDFB5FFC77"><enum>(1)</enum><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/26/1016">section 1016</external-xref>, as amended by this Act, is amended by striking <quote>and</quote> at the end of paragraph (28), by striking the period at the end of paragraph (29) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="HE41CA867F5674CF1A1F794CCD77F62B"> <paragraph id="H04AB3334E35C467E835CA11896C7A5C0"><enum>(30)</enum><text>to the extent provided in section 25D(f), in the case of amounts with respect to which a credit has been allowed under section 25D.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HF7CF795B88E94B67B5B6483B1790DB43"><enum>(2)</enum><text>The table of sections for subpart A of part IV of subchapter A of chapter 1, as amended by this Act, is amended by inserting after the item relating to section 25C the following new item:</text> <quoted-block style="OLC" id="H26FAC47E65404976A5AD837989D3DF6F"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 25D. Energy efficiency improvements to existing homes</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H8742F189BA48449C0082054700E6CC48"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years ending after December 31, 2003.</text></subsection></section> <section id="H70A285F8979645CCA5E878CD453FB1F"><enum>1305.</enum><header>Credit for construction of new energy efficient homes</header> <subsection id="HA3F5AD2EA2CB4BC19E959122C316581D"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1 (relating to business related credits) is amended by adding at the end the following new section:</text> <quoted-block id="HDAAA75CE1F794704AB94FA74DDCCDA5F"> <section id="HDD437099486C42838070945E9B207626"><enum>45G.</enum><header>New energy efficient home credit</header> <subsection id="H9C58C920C810458293001B8532B96B63"><enum>(a)</enum><header>In general</header><text>For purposes of section 38, in the case of an eligible contractor with respect to a qualified new energy efficient home, the credit determined under this section for the taxable year with respect to such home is an amount equal to the aggregate adjusted bases of all energy efficient property installed in such home during construction of such home.</text></subsection> <subsection id="HD58068427DDA466F001B98FCAC25C792"><enum>(b)</enum><header>Limitations</header> <paragraph id="HAC4150AA4D7E455CA7C0EF31FCB52456"><enum>(1)</enum><header>Maximum credit</header> <subparagraph id="H10CE86E64C3E46D2B61D4D267C58F8B2"><enum>(A)</enum><header>In general</header><text>The credit allowed by this section with respect to a dwelling unit shall not exceed—</text> <clause id="HABD047321B5A47C087A02D9366EF5E27"><enum>(i)</enum><text>in the case of a dwelling unit described in clause (i) or (iii) of subsection (c)(3)(D), $1,000, and</text></clause> <clause id="HCC630ED7069042A980A638897B9CFA4C"><enum>(ii)</enum><text>in the case of a dwelling unit described in subsection (c)(3)(D)(ii), $2,000.</text></clause></subparagraph> <subparagraph id="H3D7BD338160F475F89ACAD1F4DAD93C5"><enum>(B)</enum><header>Prior credit amounts on same dwelling unit taken into account</header><text>If a credit was allowed under subsection (a) with respect to a dwelling unit in 1 or more prior taxable years, the amount of the credit otherwise allowable for the taxable year with respect to such dwelling unit shall be reduced by the sum of the credits allowed under subsection (a) with respect to the dwelling unit for all prior taxable years.</text></subparagraph></paragraph> <paragraph id="H2CB03C22EE4A44DBA6E393F7082D5142"><enum>(2)</enum><header>Coordination with certain credits</header><text>For purposes of this section—</text> <subparagraph id="H9D3BAFC252CD482989C9D39EE4002F46"><enum>(A)</enum><text>the basis of any property referred to in subsection (a) shall be reduced by that portion of the basis of any property which is attributable to qualified rehabilitation expenditures (as defined in section 47(c)(2)) or to the energy percentage of energy property (as determined under section 48(a)), and</text></subparagraph> <subparagraph id="HB54D1441D6CB46C1B6DF50898D9D437C"><enum>(B)</enum><text>expenditures taken into account under section 47 or 48(a) shall not be taken into account under this section.</text></subparagraph></paragraph></subsection> <subsection id="H6EC80446B37643028B2606FF192CF227"><enum>(c)</enum><header>Definitions</header><text>For purposes of this section—</text> <paragraph id="HD5198297BD9A4789A81726639494C2C3"><enum>(1)</enum><header>Eligible contractor</header><text>The term <term>eligible contractor</term> means—</text> <subparagraph id="HDD36291E72094D4993ABABCA0D68B48"><enum>(A)</enum><text>the person who constructed the qualified new energy efficient home, or</text></subparagraph> <subparagraph id="H191BA0E971C744F19EAAC928855D4992"><enum>(B)</enum><text>in the case of a qualified new energy efficient home which is a manufactured home, the manufactured home producer of such home.</text></subparagraph><continuation-text continuation-text-level="paragraph">If more than 1 person is described in subparagraph (A) or (B) with respect to any qualified new energy efficient home, such term means the person designated as such by the owner of such home.</continuation-text></paragraph> <paragraph id="HE6AEDA89BBFC4B09006B1CE74146BCFB"><enum>(2)</enum><header>Energy efficient property</header><text>The term <term>energy efficient property</term> means any energy efficient building envelope component, and any energy efficient heating or cooling equipment or system, which can, individually or in combination with other components, result in a dwelling unit meeting the requirements of this section.</text></paragraph> <paragraph id="H6D918F2D454C487FAB17BA21A39DD9B"><enum>(3)</enum><header>Qualified new energy efficient home</header><text>The term <term>qualified new energy efficient home</term> means a dwelling unit—</text> <subparagraph id="H2A0A68CCC72D46448900A700AC002719"><enum>(A)</enum><text>located in the United States,</text></subparagraph> <subparagraph id="HFB3B7911F16D4FF0962D59E6CE9C5ED3"><enum>(B)</enum><text>the construction of which is substantially completed after December 31, 2003,</text></subparagraph> <subparagraph id="HCD2F642B8AE5405EBF2E23EDE042EC9E"><enum>(C)</enum><text>the original use of which, after such construction, is reasonably expected to be as a residence by the person who acquires such dwelling unit from the eligible contractor,</text></subparagraph> <subparagraph id="HF9ACC6885A914EDDBC07D872B658A72F"><enum>(D)</enum><text>which is—</text> <clause id="HDB3E25D355FE40A9BCB078D33C23BD36"><enum>(i)</enum><text>certified to have a level of annual heating and cooling energy consumption which is at least 30 percent below the annual level of heating and cooling energy consumption of a comparable dwelling unit constructed in accordance with the standards of chapter 4 of the 2000 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of this section, and to have building envelope component improvements account for at least <fraction>1/3</fraction> of such 30 percent,</text></clause> <clause id="H24528FF116124F3A9E9E570083FC3D00"><enum>(ii)</enum><text>certified to have a level of annual heating and cooling energy consumption which is at least 50 percent below such annual level and to have building envelope component improvements account for at least <fraction>1/5</fraction> of such 50 percent, or</text></clause> <clause id="HFC6E5B680C6A4BA49CE515A4DC1B96E6"><enum>(iii)</enum><text>a manufactured home which—</text> <subclause id="HC1F9D2EBFE334AF4B6802D94198F20AE"><enum>(I)</enum><text>conforms to Federal Manufactured Home Construction and Safety Standards (<external-xref legal-doc="cfr" parsable-cite="cfr/24/3280">section 3280</external-xref> of title 24, Code of Federal Regulations), and</text></subclause> <subclause id="HE24091E085FD44389BDEA8775FD91BC"><enum>(II)</enum><text>meets the applicable standards required by the Administrator of the Environmental Protection Agency under the Energy Star Labeled Homes program.</text></subclause></clause></subparagraph></paragraph> <paragraph id="H10B780D6B453401A9F337814E2A05225"><enum>(4)</enum><header>Construction</header><text>The term <term>construction</term> includes substantial reconstruction and rehabilitation.</text></paragraph> <paragraph id="HBBE8163CEB734F1FB2418BDA1191DC4"><enum>(5)</enum><header>Acquire</header><text>The term <term>acquire</term> includes purchase and, in the case of reconstruction and rehabilitation, such term includes a binding written contract for such reconstruction or rehabilitation.</text></paragraph> <paragraph id="H745366DA91174943983EB9D91761003C"><enum>(6)</enum><header>Building envelope component</header><text>The term <term>building envelope component</term> means—</text> <subparagraph id="H059A647EA69D49B9A3372BB3B706DBA0"><enum>(A)</enum><text>any insulation material or system which is specifically and primarily designed to reduce the heat loss or gain of a dwelling unit when installed in or on such dwelling unit,</text></subparagraph> <subparagraph id="H74D4797F2BA0492DBBD523BC372100A8"><enum>(B)</enum><text>exterior windows (including skylights),</text></subparagraph> <subparagraph id="H4E85B909C7774417978B007387D8DD71"><enum>(C)</enum><text>exterior doors, and</text></subparagraph> <subparagraph id="HAE2F6C2151F84B4CB68FF8724CA038BE"><enum>(D)</enum><text>any metal roof installed on a dwelling unit, but only if such roof has appropriate pigmented coatings which—</text> <clause id="H9EB326CF22354E048EE818FCBBB25F80"><enum>(i)</enum><text>are specifically and primarily designed to reduce the heat gain of such dwelling unit, and</text></clause> <clause id="H79B911C87D2E4886B7019999005D8683"><enum>(ii)</enum><text>meet the Energy Star program requirements.</text></clause></subparagraph></paragraph></subsection> <subsection id="HDE2BA54A96D64706B6B2A4FCAC39280"><enum>(d)</enum><header>Certification</header> <paragraph id="H2540E204FA5A44A9B698A9AA8B4F054"><enum>(1)</enum><header>Method of certification</header><text>A certification described in subsection (c)(3)(D) shall be determined in accordance with guidance prescribed by the Secretary. Such guidance shall specify procedures and methods for calculating energy and cost savings.</text></paragraph> <paragraph id="H8B60CF7604444E5CA702DE408959BD86"><enum>(2)</enum><header>Form</header><text>A certification described in subsection (c)(3)(D) shall be made in writing—</text> <subparagraph id="H1C67776F9015469F8C38E15978E1768F"><enum>(A)</enum><text>in a manner which specifies in readily verifiable fashion the energy efficient building envelope components and energy efficient heating or cooling equipment installed and their respective rated energy efficiency performance, and</text></subparagraph> <subparagraph id="H7F3BFA0435CB47729280E03DA56CC081"><enum>(B)</enum><text>in the case of a qualified new energy efficient home which is a manufactured home, accompanied by such documentation as required by the Administrator of the Environmental Protection Agency under the Energy Star Labeled Homes program.</text></subparagraph></paragraph></subsection> <subsection id="H62F76C58B81E4E55BDDE7CBC1C89B390"><enum>(e)</enum><header>Basis adjustment</header><text>For purposes of this subtitle, if a credit is determined under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so determined.</text></subsection> <subsection id="H9D93133B6CB54076B131E8DA2E236F5B"><enum>(f)</enum><header>Application of Section</header><text>Subsection (a) shall apply to qualified new energy efficient homes acquired during the period beginning on January 1, 2004, and ending on December 31, 2006.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H75E5474BAEFE40BFB6780025C1D3C3E1"><enum>(b)</enum><header>Credit made part of general business credit</header><text>Section 38(b) (relating to current year business credit) is amended by striking <quote>plus</quote> at the end of paragraph (14), by striking the period at the end of paragraph (15) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="HBC51D3E67118437EBF2000ED0000A9F8"> <paragraph id="H5ECDCF90628D4D00BB065BFBDB014683"><enum>(16)</enum><text>the new energy efficient home credit determined under section 45G(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H51680D1D96D045BC8685D24283A732DB"><enum>(c)</enum><header>Basis adjustment</header><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/26/1016">section 1016</external-xref>, as amended by this Act, is amended by striking <quote>and</quote> at the end of paragraph (29), by striking the period at the end of paragraph (30) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="HD723A31CC95142DE8E93A900EE2B2D60"> <paragraph id="H386D6D7F4D8F4C258E91BC76FBD64408"><enum>(31)</enum><text>to the extent provided in section 45G(e), in the case of amounts with respect to which a credit has been allowed under section 45G.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H600BFCC22BC64A8E8232BF00021569C5"><enum>(d)</enum><header>Limitation on carryback</header> <paragraph id="HE589A9E99D9C4FAAB7ABC2AC1F5C49"><enum>(1)</enum><header>In general</header><text>Subsection (d) of <external-xref legal-doc="usc" parsable-cite="usc/26/39">section 39</external-xref> is amended to read as follows:</text> <quoted-block id="H57DE4739B5A44B4487EAFC3F6E918F1"> <subsection id="H2699AECD19FC430FB800253D2EA30050"><enum>(d)</enum><header>Transitional rule</header><text>No portion of the unused business credit for any taxable year which is attributable to a credit specified in section 38(b) or any portion thereof may be carried back to any taxable year before the first taxable year for which such specified credit or such portion is allowable (without regard to subsection (a)).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H67296BAAC29B405CA35C1F00DBB4A9C7"><enum>(2)</enum><header>Effective date</header><text>The amendment made by paragraph (1) shall apply with respect to taxable years ending after December 31, 2002.</text></paragraph></subsection> <subsection id="HAC419821F806493BACE63B7C6F979B5B"><enum>(e)</enum><header>Deduction for certain unused business credits</header><text>Section 196(c) (defining qualified business credits) is amended by striking <quote>and</quote> at the end of paragraph (10), by striking the period at the end of paragraph (11) and inserting <quote>, and</quote>, and by adding after paragraph (11) the following new paragraph:</text> <quoted-block id="HF3CFD006E1C549E1B7ED97CFB931379B"> <paragraph id="H9FB8926DDE8D4CB49B71C04E02216B4C"><enum>(12)</enum><text>the new energy efficient home credit determined under section 45G(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HF5F53BCA0D3C4F04B6B2D458475B451E"><enum>(f)</enum><header>Clerical amendment</header><text>The table of sections for subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding at the end the following new item:</text> <quoted-block style="OLC" id="H2C95BF84F714418500A36933650803B8"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 45G. New energy efficient home credit</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H24148A65CF3046619F84A30252F2755"><enum>(g)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years ending after December 31, 2003.</text></subsection></section> <section id="H9CE711FB111C4DED00F266237B8DCF14"><enum>1306.</enum><header>Energy credit for combined heat and power system property</header> <subsection id="H2791CC5E801E4507A48F685BAE679671"><enum>(a)</enum><header>In general</header><text>Section 48(a)(3)(A) (defining energy property), as amended by this Act, is amended by striking <quote>or</quote> at the end of clause (ii), by adding <quote>or</quote> at the end of clause (iii), and by inserting after clause (iii) the following new clause:</text> <quoted-block id="H2A25E4EA1E464A5F90B36644DA4F663"> <clause id="HBC09B10C7DB94B85A37E5952A0B14B58"><enum>(iv)</enum><text>combined heat and power system property,</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HB909DE0F0EC14523B5FFA78500F9BAC"><enum>(b)</enum><header>Combined heat and power system property</header><text>Section 48 (relating to energy credit; reforestation credit), as amended by this Act, is amended by adding at the end the following new subsection:</text> <quoted-block id="HBEB2B8722C7A4816BEEAEC1B064C65BA"> <subsection id="H5744930F72F346ACBAC7377B41D920B0"><enum>(d)</enum><header>Combined heat and power system property</header><text>For purposes of subsection (a)(3)(A)(iv)—</text> <paragraph id="HEA3E7F9E52154298AF175DCE8FCD9E5"><enum>(1)</enum><header>Combined heat and power system property</header><text>The term <term>combined heat and power system property</term> means property comprising a system—</text> <subparagraph id="HED81F5C847CE4DBB894DF1B2F0EBC6AF"><enum>(A)</enum><text>which uses the same energy source for the simultaneous or sequential generation of electrical power, mechanical shaft power, or both, in combination with the generation of steam or other forms of useful thermal energy (including heating and cooling applications),</text></subparagraph> <subparagraph id="H31324D7119824FBBB270B85B5DCF9537"><enum>(B)</enum><text>which has an electrical capacity of not more than 15 megawatts or a mechanical energy capacity of not more than 2,000 horsepower or an equivalent combination of electrical and mechanical energy capacities,</text></subparagraph> <subparagraph id="H1A416310632F43409C81F0B7C9BBBE0"><enum>(C)</enum><text>which produces—</text> <clause id="H7EF202E754544A1EADB61FBC16EAA864"><enum>(i)</enum><text>at least 20 percent of its total useful energy in the form of thermal energy which is not used to produce electrical or mechanical power (or combination thereof), and</text></clause> <clause id="H242496D1790E48C1A8369D52F4AFA3F"><enum>(ii)</enum><text>at least 20 percent of its total useful energy in the form of electrical or mechanical power (or combination thereof),</text></clause></subparagraph> <subparagraph id="H1BACEB7B8C744186ABFEEABD8657CFB1"><enum>(D)</enum><text>the energy efficiency percentage of which exceeds 60 percent, and</text></subparagraph> <subparagraph id="H9B466BA95CBB4CBD925307000936C8A6"><enum>(E)</enum><text>which is placed in service before January 1, 2007.</text></subparagraph></paragraph> <paragraph id="H173309A6EAB14896892E7C98B6727379"><enum>(2)</enum><header>Special rules</header> <subparagraph id="HE9E7F00AA5ED438E99F9ACDD005F37EA"><enum>(A)</enum><header>Energy efficiency percentage</header><text>For purposes of this subsection, the energy efficiency percentage of a system is the fraction—</text> <clause id="HF922AB4C836E48BCA4B625736789D730"><enum>(i)</enum><text>the numerator of which is the total useful electrical, thermal, and mechanical power produced by the system at normal operating rates, and expected to be consumed in its normal application, and</text></clause> <clause id="H483B21E0BCD247E1A065FFACD4E77FD8"><enum>(ii)</enum><text>the denominator of which is the lower heating value of the fuel sources for the system.</text></clause></subparagraph> <subparagraph id="HE3D2EEDDAE594B209514B384BA400610"><enum>(B)</enum><header>Determinations made on Btu basis</header><text>The energy efficiency percentage and the percentages under paragraph (1)(C) shall be determined on a Btu basis.</text></subparagraph> <subparagraph id="H900D5647C35E4FE09FF144B8D5BA6E19"><enum>(C)</enum><header>Input and output property not included</header><text>The term <term>combined heat and power system property</term> does not include property used to transport the energy source to the facility or to distribute energy produced by the facility.</text></subparagraph> <subparagraph id="H79956818872D486AB3E1BDE0931306B"><enum>(D)</enum><header>Public utility property</header> <clause id="H7159C415593044E2B76062FDF45FAEE7"><enum>(i)</enum><header>Accounting rule for public utility property</header><text>If the combined heat and power system property is public utility property (as defined in section 168(i)(10)), the taxpayer may only claim the credit under subsection (a) if, with respect to such property, the taxpayer uses a normalization method of accounting.</text></clause> <clause id="HB1FE5A27D1DA44E395634D9D1FD41FEC"><enum>(ii)</enum><header>Certain exception not to apply</header><text>The matter in subsection (a)(3) which follows subparagraph (D) thereof shall not apply to combined heat and power system property.</text></clause></subparagraph></paragraph> <paragraph id="H48FDDF760BD346FFBF6433AE73FD5591"><enum>(3)</enum><header>Systems using bagasse</header><text>If a system is designed to use bagasse for at least 90 percent of the energy source—</text> <subparagraph id="HB094E2FC31E7447B97111D86169D3050"><enum>(A)</enum><text>paragraph (1)(D) shall not apply, but</text></subparagraph> <subparagraph id="H09B8F17D39AD44508C71C6469F0056DC"><enum>(B)</enum><text>the amount of credit determined under subsection (a) with respect to such system shall not exceed the amount which bears the same ratio to such amount of credit (determined without regard to this paragraph) as the energy efficiency percentage of such system bears to 60 percent.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H27361BBED88C4BCA939750EE47B5CCA5"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to periods after December 31, 2003, in taxable years ending after such date, under rules similar to the rules of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).</text></subsection></section> <section id="H9ED3762EEE1D415EA2FB0046A3121534"><enum>1307.</enum><header>Credit for energy efficient appliances</header> <subsection id="H7518990DA5AC4403851EF5F5AB3800CC"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1 (relating to business-related credits), as amended by this Act, is amended by adding at the end the following new section:</text> <quoted-block id="HDBF4342DDC2E421A00D74C00AB369294"> <section id="HC03682A26D34493589B8C18D62DBDEE3"><enum>45H.</enum><header>Energy efficient appliance credit</header> <subsection id="HD587F3F9AB35468680009CF439404EAB"><enum>(a)</enum><header>Allowance of credit</header><text>For purposes of section 38, the energy efficient appliance credit determined under this section for the taxable year is an amount equal to the sum of—</text> <paragraph id="HC2EF08F66FA645A29E2688006B24F6AE"><enum>(1)</enum><text>the tier I appliance amount, and</text></paragraph> <paragraph id="H70A953F37AC14BDB9940AAF397C62E67"><enum>(2)</enum><text>the tier II appliance amount,</text></paragraph><continuation-text continuation-text-level="subsection">with respect to qualified energy efficient appliances produced by the taxpayer during the calendar year ending with or within the taxable year.</continuation-text></subsection> <subsection id="H71EA0C469EBA4EA9B3AE3849DAA95900"><enum>(b)</enum><header>Appliance amounts</header><text>For purposes of subsection (a)—</text> <paragraph id="HEFBE047618E942D2A9122C34C979DB00"><enum>(1)</enum><header>Tier i appliance amount</header><text>The tier I appliance amount is equal to—</text> <subparagraph id="H4F59645EB1BD487DA8DB3E953973B52E"><enum>(A)</enum><text>$100, multiplied by</text></subparagraph> <subparagraph id="HD7D830A1FC724AA2B88335D1671BC1AA"><enum>(B)</enum><text>an amount (rounded to the nearest whole number) equal to the applicable percentage of the eligible production.</text></subparagraph></paragraph> <paragraph id="H391B8AB917F142F0A2491B628FBFC645"><enum>(2)</enum><header>Tier ii appliance amount</header><text>The tier II appliance amount is equal to $150, multiplied by an amount equal to the eligible production reduced by the amount determined under paragraph (1)(B).</text></paragraph> <paragraph id="H3B78E3089FDD4752826348D8DAE68EAA"><enum>(3)</enum><header>Applicable percentage</header><text>The applicable percentage is the percentage determined by dividing the tier I appliances produced by the taxpayer during the calendar year by the sum of the tier I and tier II appliances so produced.</text></paragraph> <paragraph id="HBDD8D6EB862E49DBA62128EA3688E1B8"><enum>(4)</enum><header>Eligible production</header><text>The eligible production of qualified energy efficient appliances by the taxpayer for any calendar year is the excess of—</text> <subparagraph id="HDCE66A42F3D2404EB9D6BBC88C7926FC"><enum>(A)</enum><text>the number of such appliances which are produced by the taxpayer during such calendar year, over</text></subparagraph> <subparagraph id="H3087C01D79C54E869C3C54E27DF6B83D"><enum>(B)</enum><text>110 percent of the average annual number of such appliances which were produced by the taxpayer (or any predecessor) during the preceding 3-calendar year period.</text></subparagraph></paragraph></subsection> <subsection id="H23D23CCD21714954BAD386A2236646E9"><enum>(c)</enum><header>Qualified energy efficient appliance</header><text>For purposes of this section—</text> <paragraph id="H7A8D89FE2B294BAB9FBBAC00AE08C4D0"><enum>(1)</enum><header>In general</header><text>The term <term>qualified energy efficient appliance</term> means any tier I appliance or tier II appliance which is produced in the United States.</text></paragraph> <paragraph id="HAFD218A61FF64CA10056CE7DE2FFADC5"><enum>(2)</enum><header>Tier i appliance</header><text>The term <term>tier I appliance</term> means—</text> <subparagraph id="HF6A6EE37501241C48F68BD141188E4AE"><enum>(A)</enum><text>a clothes washer which is produced with at least a 1.50 MEF, and</text></subparagraph> <subparagraph id="HA15F6C2ED2C2474EBBD3D2258FAF4B6B"><enum>(B)</enum><text>a refrigerator which consumes at least 15 percent (20 percent in the case of a refrigerator produced after 2006) less kilowatt hours per year than the energy conservation standards for refrigerators promulgated by the Department of Energy and effective on July 1, 2001.</text></subparagraph></paragraph> <paragraph id="HEC2EB1E1A9C3491DB08C092DA0E444B9"><enum>(3)</enum><header>Tier II appliance</header><text>The term <term>tier II appliance</term> means a refrigerator produced before 2007 which consumes at least 20 percent less kilowatt hours per year than the energy conservation standards described in paragraph (2)(B).</text></paragraph> <paragraph id="H74079E27E11147548569FBA8ED581485"><enum>(4)</enum><header>Clothes washer</header><text>The term <term>clothes washer</term> means a residential clothes washer, including a residential style coin operated washer.</text></paragraph> <paragraph id="H8761D8FAE28446BD8CCD4DF5880491A6"><enum>(5)</enum><header>Refrigerator</header><text>The term <term>refrigerator</term> means an automatic defrost refrigerator-freezer which has an internal volume of at least 16.5 cubic feet.</text></paragraph> <paragraph id="H3C17A38AF96F4EE789CD7F22CC2F229"><enum>(6)</enum><header>MEF</header><text>The term <term>MEF</term> means Modified Energy Factor (as determined by the Secretary of Energy).</text></paragraph> <paragraph id="HD49B5E53B2824BA3A10336916D19B6CA"><enum>(7)</enum><header>Produced</header><text>The term <term>produced</term> includes manufactured.</text></paragraph></subsection> <subsection id="H52F006E8E2CF46A3B82CBDFA609B195"><enum>(d)</enum><header>Limitation on maximum credit</header> <paragraph id="HE00EFC3DF2B2439286A107002B445BFF"><enum>(1)</enum><header>In general</header><text>The amount of credit allowed under subsection (a) with respect to a taxpayer for any taxable year shall not exceed $60,000,000, reduced by the amount of the credit allowed under subsection (a) to the taxpayer (or any predecessor) for any prior taxable year.</text></paragraph> <paragraph id="H8EC8E7BD221C43E900915432B3989287"><enum>(2)</enum><header>Limitation based on gross receipts</header><text>The credit allowed under subsection (a) with respect to a taxpayer for the taxable year shall not exceed an amount equal to 2 percent of the average annual gross receipts of the taxpayer for the 3 taxable years preceding the taxable year for which the credit is determined.</text></paragraph> <paragraph id="H44A5902A3CCD4A7C8D685917F1F30030"><enum>(3)</enum><header>Gross receipts</header><text>For purposes of this subsection, the rules of paragraphs (2) and (3) of section 448(c) shall apply.</text></paragraph></subsection> <subsection id="H3DB14713ACB449998D3321921DA2FA37"><enum>(e)</enum><header>Special rules</header><text>For purposes of this section—</text> <paragraph id="HD8A1D854B2854FC884B96511A8D19D54"><enum>(1)</enum><header>In general</header><text>Rules similar to the rules of subsections (c), (d), and (e) of section 52 shall apply.</text></paragraph> <paragraph id="HEFB9C938E0784C5B96FE80A004B6834"><enum>(2)</enum><header>Controlled groups</header> <subparagraph id="HFD4EB3E268704464A3A68F34587B404C"><enum>(A)</enum><header>In general</header><text>All persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as a single manufacturer.</text></subparagraph> <subparagraph id="HD4E2B4ADBC3B4024008CE173A99B4EC1"><enum>(B)</enum><header>Inclusion of foreign corporations</header><text>For purposes of subparagraph (A), in applying subsections (a) and (b) of section 52 to this section, section 1563 shall be applied without regard to subsection (b)(2)(C) thereof.</text></subparagraph></paragraph></subsection> <subsection id="HD2FBD28FBCA5488DAC434341D231934"><enum>(f)</enum><header>Verification</header><text>The taxpayer shall submit such information or certification as the Secretary, after consultation with the Secretary of Energy, determines necessary to claim the credit amount under subsection (a).</text></subsection> <subsection id="H7B53159122EE4CDB93C900850512A8C"><enum>(g)</enum><header>Termination</header><text>This section shall not apply with respect to appliances produced after December 31, 2007.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H740E40363F13483A9D7745402E926788"><enum>(b)</enum><header>Credit made part of general business credit</header><text>Section 38(b) (relating to current year business credit), as amended by this Act, is amended by striking <quote>plus</quote> at the end of paragraph (15), by striking the period at the end of paragraph (16) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="H23A3A70042AD4630831D19AA82B897D3"> <paragraph id="H4CC84B7B5EAC408997F300A862C0FFD7"><enum>(17)</enum><text>the energy efficient appliance credit determined under section 45H(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H00AAC50D4910455AAE68FE64E003328"><enum>(c)</enum><header>Clerical amendment</header><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by this Act, is amended by adding at the end the following new item:</text> <quoted-block style="OLC" id="HB88413BB5D4243279543C5FE8E9832BF"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 45H. Energy efficient appliance credit</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H4E1B22F069F04050B6DEB0A7FDB19670"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to appliances produced after December 31, 2003, in taxable years ending after such date.</text></subsection></section> <section id="HDF465B42ABA7489FA6E3959DB175F543"><enum>1308.</enum><header>Energy efficient commercial buildings deduction</header> <subsection id="H0DF4E204F7E64AD6AFCAEF016F053BF0"><enum>(a)</enum><header>In general</header><text>Part VI of subchapter B of chapter 1 (relating to itemized deductions for individuals and corporations) is amended by inserting after section 179A the following new section:</text> <quoted-block id="HEAB4AA8F27BB4A8B906E44FDDB78000"> <section id="H2A05DA78354C4E64BBC364AB44E651BD"><enum>179B.</enum><header>Energy efficient commercial buildings deduction</header> <subsection id="HB546786DC54D4AAF88DD28FB59F55B78"><enum>(a)</enum><header>In general</header><text>There shall be allowed as a deduction an amount equal to the cost of energy efficient commercial building property placed in service during the taxable year.</text></subsection> <subsection id="HFFD3B96578604A638BBD2110ADC1C92E"><enum>(b)</enum><header>Maximum amount of deduction</header><text>The deduction under subsection (a) with respect to any building for the taxable year and all prior taxable years shall not exceed an amount equal to the product of—</text> <paragraph id="HAEE28DEF0D3A4BB38159E9BB639C27C9"><enum>(1)</enum><text>$1.50, and</text></paragraph> <paragraph id="HBDCAC37ED1C54CAFA975369B6C8E8D5B"><enum>(2)</enum><text>the square footage of the building.</text></paragraph></subsection> <subsection id="H3BBA22DE561F4F968913859555E8CE1D"><enum>(c)</enum><header>Definitions</header><text>For purposes of this section—</text> <paragraph id="HB5A4970AEE404D20B43F1777DB201138"><enum>(1)</enum><header>Energy efficient commercial building property</header><text>The term <term>energy efficient commercial building property</term> means property—</text> <subparagraph id="HBED717CCAC81472B9788531DB5D1F3DB"><enum>(A)</enum><text>which is installed on or in a building—</text> <clause id="H2CB0793E669A427589A09F35FA9899B6"><enum>(i)</enum><text>which is located in the United States, and</text></clause> <clause id="HAAB33B51795046D49E065D001D7507F"><enum>(ii)</enum><text>which is the type of structure to which the Standard 90.1–2001 is applicable,</text></clause></subparagraph> <subparagraph id="HE67D97C953924589A6D2D0C5175643FF"><enum>(B)</enum><text>which is installed as part of—</text> <clause id="HF0ABE41D6FCA459D92D1E7009DEDA62B"><enum>(i)</enum><text>the lighting systems,</text></clause> <clause id="HAD26745675AB40198E46F0D0B1C26E43"><enum>(ii)</enum><text>the heating, cooling, ventilation, and hot water systems, or</text></clause> <clause id="HC7DE5C5DBE5047E492D6A007D1D17CF9"><enum>(iii)</enum><text>the building envelope, and</text></clause></subparagraph> <subparagraph id="HFE4C38D468894605B8089B1BB930C494"><enum>(C)</enum><text>which is certified in accordance with subsection (d)(4) as being installed as part of a plan designed to reduce the total annual energy and power costs with respect to the lighting systems, heating, cooling, ventilation, and hot water systems of the building by 50 percent or more in comparison to a reference building which meets the minimum requirements of Standard 90.1–2001 using methods of calculation under subsection (d)(2).</text></subparagraph></paragraph> <paragraph id="HBC35C59ABFEE461381E7C07989001CC2"><enum>(2)</enum><header>Standard 90.1–2001</header><text>The term <term>Standard 90.1–2001</term> means Standard 90.1–2001 of the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America (as in effect on April 2, 2003).</text></paragraph></subsection> <subsection id="H355D4F16F9014D7C9B07FCD17F243361"><enum>(d)</enum><header>Special rules</header> <paragraph id="HCEDB0EAFADD44C27BE784916C100D64F"><enum>(1)</enum><header>Partial allowance</header> <subparagraph id="HEC6F6A02A1A048970095403321B387FB"><enum>(A)</enum><header>In general</header><text>Except as provided in subsection (f), in the case of a building placed in service on or before the date of the enactment of this section, if—</text> <clause id="H460746A12B5F48789F0000709CC79671"><enum>(i)</enum><text>the requirement of subsection (c)(1)(C) is not met, but</text></clause> <clause id="HE0DA5CCD60CE4F57A07474D640B8C5EE"><enum>(ii)</enum><text>there is a certification in accordance with subsection (d)(4) that any system referred to in subsection (c)(1)(B) satisfies the energy-savings targets established by the Secretary under subparagraph (B) with respect to such system,</text></clause><continuation-text continuation-text-level="subparagraph">then the requirement of subsection (c)(1)(C) shall be treated as met with respect to such system, and the deduction under subsection (a) shall be allowed with respect to energy efficient commercial building property installed as part of such system and as part of a plan to meet such targets, except that subsection (b) shall be applied to such property by substituting <quote>$.50</quote> for <quote>$1.50</quote>.</continuation-text></subparagraph> <subparagraph id="H543EC513E97D4C1BB2DD3CBBCECD8681"><enum>(B)</enum><header>Regulations</header><text>The Secretary, after consultation with the Secretary of Energy, shall establish a target for each system described in subsection (c)(1)(B) which, if such targets were met for all such systems, the building would meet the requirements of subsection (c)(1)(C).</text></subparagraph></paragraph> <paragraph id="HE28436DE82994AEF909E2151C15228BB"><enum>(2)</enum><header>Methods of calculation</header><text>The Secretary, after consultation with the Secretary of Energy, shall promulgate regulations which describe in detail methods for calculating and verifying energy and power cost for purposes of this section.</text></paragraph> <paragraph id="HDFA5D4D8CF874B8A9C12E8B065913D94"><enum>(3)</enum><header>Notice to owner</header><text>Each certification required under this section shall include an explanation to the building owner regarding the energy efficiency features of the building and its projected annual energy costs.</text></paragraph> <paragraph id="H81C7660265DD44D7B8BC02DDA4986ED6"><enum>(4)</enum><header>Certification</header> <subparagraph id="H4626002A3AD94F12A700BD1938019309"><enum>(A)</enum><header>In general</header><text>The Secretary shall prescribe the manner and method for the making of certifications under this section.</text></subparagraph> <subparagraph id="HFE473192AC504BF29535E1C887A31920"><enum>(B)</enum><header>Procedures</header><text>The Secretary shall include as part of the certification process procedures for inspection and testing by qualified individuals described in subparagraph (C) to ensure compliance of buildings with energy-savings plans and targets. Such procedures shall be—</text> <clause id="H3454A4DA6D144871A374A25825A217BE"><enum>(i)</enum><text>comparable, given the difference between commercial and residential buildings, to the requirements in the Mortgage Industry National Accreditation Procedures for Home Energy Rating Systems, and</text></clause> <clause id="HC14AD614FF2145F9A3DA632B54B82292"><enum>(ii)</enum><text>fuel neutral such that the same energy efficiency measures allow a building to be eligible for the deduction under this section regardless of whether such building uses a gas or oil furnace or boiler, an electric heat pump, or other fuel source.</text></clause></subparagraph> <subparagraph id="HB0B3FB9FD8A341F6AA89E559B9C2B9CA"><enum>(C)</enum><header>Qualified individuals</header><text>Individuals qualified to determine compliance shall be only those individuals who are recognized by an organization certified by the Secretary for such purposes.</text></subparagraph></paragraph></subsection> <subsection id="H35E0D4DAB96E4733B005B08333A57B96"><enum>(e)</enum><header>Basis reduction</header><text>For purposes of this subtitle, if a deduction is allowed under this section with respect to any energy efficient commercial building property, the basis of such property shall be reduced by the amount of the deduction so allowed.</text></subsection> <subsection id="HD428E4A7D5FB40DD89149C2E9795F959"><enum>(f)</enum><header>Interim rules for lighting systems</header><text>Until such time as the Secretary issues final regulations under subsection (d)(1)(B) with respect to property which is part of a lighting system—</text> <paragraph id="H6B95B6245F484D25A687AA3CAD12BAD"><enum>(1)</enum><header>In general</header><text>The lighting system target under subsection (d)(1)(A)(ii) shall be a reduction in lighting power density of 25 percent (50 percent in the case of a warehouse) of the minimum requirements in Table 9.3.1.1 or Table 9.3.1.2 (not including additional interior lighting power allowances) of Standard 90.1–2001.</text></paragraph> <paragraph id="HCEEA352492634BDDA86100F326A8006E"><enum>(2)</enum><header>Reduction in deduction if reduction less than 40 percent</header> <subparagraph id="H111595370D124840B51BF007E726DA62"><enum>(A)</enum><header>In general</header><text>If, with respect to the lighting system of any building other than a warehouse, the reduction in lighting power density of the lighting system is not at least 40 percent, only the applicable percentage of the amount of deduction otherwise allowable under this section with respect to such property shall be allowed.</text></subparagraph> <subparagraph id="HFFD278FCC63B4E98B5419CE40B0B600"><enum>(B)</enum><header>Applicable percentage</header><text>For purposes of subparagraph (A), the applicable percentage is the number of percentage points (not greater than 100) equal to the sum of—</text> <clause id="H5DD61E6A66FA440EB0FAEBACD0A57843"><enum>(i)</enum><text>50, and</text></clause> <clause id="H036C2FD6438742F69B448DA8EE6D2766"><enum>(ii)</enum><text>the amount which bears the same ratio to 50 as the excess of the reduction of lighting power density of the lighting system over 25 percentage points bears to 15.</text></clause></subparagraph> <subparagraph id="H5E6A798E5D224DE89F97DDC8BD920017"><enum>(C)</enum><header>Exceptions</header><text>This subsection shall not apply to any system—</text> <clause id="HAB5B4F3E6AF746D4B137D700B9067622"><enum>(i)</enum><text>the controls and circuiting of which do not comply fully with the mandatory and prescriptive requirements of Standard 90.1–2001 and which do not include provision for bilevel switching in all occupancies except hotel and motel guest rooms, store rooms, restrooms, and public lobbies, or</text></clause> <clause id="HD3570C593B36468EA1FCCF7117E1A85F"><enum>(ii)</enum><text>which does not meet the minimum requirements for calculated lighting levels as set forth in the Illuminating Engineering Society of North America Lighting Handbook, Performance and Application, Ninth Edition, 2000.</text></clause></subparagraph></paragraph></subsection> <subsection id="H3AFE62F305164496BF527F9C13619DF7"><enum>(g)</enum><header>Regulations</header><text>The Secretary shall promulgate such regulations as necessary—</text> <paragraph id="H3DED0760B4A34AFB862DE231C6D95FC"><enum>(1)</enum><text>to take into account new technologies regarding energy efficiency and renewable energy for purposes of determining energy efficiency and savings under this section, and</text></paragraph> <paragraph id="HCB37425D44B24A50A4754CDBBBD1C1FD"><enum>(2)</enum><text>to provide for a recapture of the deduction allowed under this section if the plan described in subsection (c)(1)(C) or (d)(1)(A) is not fully implemented.</text></paragraph></subsection> <subsection id="HCF837EA505AF4449AE4FB78DF863018C"><enum>(h)</enum><header>Termination</header><text>This section shall not apply with respect to property placed in service after December 31, 2007.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H4244061ECCEE456883C9E33BE997DA6F"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H9DD453BD366F47E19E14268546CDFE4D"><enum>(1)</enum><text>Section 1016(a), as amended by this section, is amended by striking <quote>and</quote> at the end of paragraph (30), by striking the period at the end of paragraph (31) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="H91AAF195C2D94676B000D504DB2C20DE"> <paragraph id="H10DFF68CF70449D68033ECE000F34100"><enum>(32)</enum><text>to the extent provided in section 179B(e).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HEFD42FE2908949D9A47C6BCBAC01821F"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/1245">Section 1245(a)</external-xref> is amended by inserting <quote>179B,</quote> after <quote>179A,</quote> both places it appears in paragraphs (2)(C) and (3)(C).</text></paragraph> <paragraph id="H9FC7457CA97143C6BD328945006984C4"><enum>(3)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/1250">Section 1250(b)(3)</external-xref> is amended by inserting before the period at the end of the first sentence <quote>or by section 179B</quote>.</text></paragraph> <paragraph id="H1CAEF8603B044C3882F68097DEBDEF00"><enum>(4)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/263">Section 263(a)(1)</external-xref> is amended by striking <quote>or</quote> at the end of subparagraph (G), by striking the period at the end of subparagraph (H) and inserting <quote>, or</quote>, and by inserting after subparagraph (H) the following new subparagraph:</text> <quoted-block id="HE95F12E287FD4956A68FA3F997D695AD"> <subparagraph id="HCAED09458FF94C27854787E82365808F"><enum>(I)</enum><text>expenditures for which a deduction is allowed under section 179B.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HB77FDA1928924A4D805F2885DE1873A6"><enum>(5)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/312">Section 312(k)(3)(B)</external-xref> is amended by striking <quote>or 179A</quote> each place it appears in the heading and text and inserting <quote>, 179A, or 179B</quote>.</text></paragraph></subsection> <subsection id="H0BC8EB12B72C4978BE806E5BCCA4B7A0"><enum>(c)</enum><header>Clerical amendment</header><text>The table of sections for part VI of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after section 179A the following new item:</text> <quoted-block style="OLC" id="H5B020DEC427C48CC85B2C2A2FDDECFDB"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 179B. Energy efficient commercial buildings deduction</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HAB01BF9497FE41620010282133908DB0"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act in taxable years ending after such date.</text></subsection></section> <section id="HD1313CA7AA7540BB8CED72A51DEE1300"><enum>1309.</enum><header>Three-year applicable recovery period for depreciation of qualified energy management devices</header> <subsection id="H9DA7F32C59C2473291CED864F8925E77"><enum>(a)</enum><header>In general</header><text>Section 168(e)(3)(A) (defining 3-year property) is amended by striking <quote>and</quote> at the end of clause (ii), by striking the period at the end of clause (iii) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text> <quoted-block id="H425FB7F7FF554A1C83779449AEE81CB4"> <clause id="H6ED7F91178B54A8290007D778EE28CB"><enum>(iv)</enum><text>any qualified energy management device.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H54D3E945B36F472E824D5B5C1442E5FD"><enum>(b)</enum><header>Definition of qualified energy management device</header><text>Section 168(i) (relating to definitions and special rules) is amended by inserting at the end the following new paragraph:</text> <quoted-block id="HD1CD1DE9279B48CDB3E13651B42786FE"> <paragraph id="H89870A4F5DF84A9EBDEA2D3717EBA353"><enum>(15)</enum><header>Qualified energy management device</header> <subparagraph id="HC3ADC28072B04D4F9C00A6CB0140A744"><enum>(A)</enum><header>In general</header><text>The term <term>qualified energy management device</term> means any energy management device which is placed in service before January 1, 2008, by a taxpayer who is a supplier of electric energy or a provider of electric energy services.</text></subparagraph> <subparagraph id="H4DD32AD0F8FA4A16B9EEF342AB189ED5"><enum>(B)</enum><header>Energy management device</header><text>For purposes of subparagraph (A), the term <term>energy management device</term> means any meter or metering device which is used by the taxpayer—</text> <clause id="HCEC1307473844728979305A861466803"><enum>(i)</enum><text>to measure and record electricity usage data on a time-differentiated basis in at least 4 separate time segments per day, and</text></clause> <clause id="HC89C9F9F802644A89C00407F48453C94"><enum>(ii)</enum><text>to provide such data on at least a monthly basis to both consumers and the taxpayer.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HBDBD125743224028B300FB72F8390084"><enum>(c)</enum><header>Alternative system</header><text>The table contained in <external-xref legal-doc="usc" parsable-cite="usc/26/168">section 168(g)(3)(B)</external-xref> is amended by inserting after the item relating to subparagraph (A)(iii) the following:</text> <quoted-block style="OLC" id="H7F05707149594845871227D0FA05E22F" display-inline="no-display-inline"> <toc regeneration="no-regeneration"> <multi-column-toc-entry level="section"><toc-enum>(A)</toc-enum><level-header level="section">(iv)</level-header><target>20</target></multi-column-toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HBE1E4C31106348F9A86C72BBFCF96B93"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.</text></subsection></section> <section id="H5BD67449FE294D919E6B801034004952"><enum>1310.</enum><header>Credit for production from advanced nuclear power facilities</header> <subsection id="H88B3FB93F0914208BE5D124CDACCBF00"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1 (relating to business related credits), as amended by this Act, is amended by adding after section 45K the following new section:</text> <quoted-block id="H62316B5475464E3886434B3377E6621E"> <section id="H3C6377AEE6CF4620B510390953D23C00"><enum>45L.</enum><header>Credit for production from advanced nuclear power facilities</header> <subsection id="HB7146EB53DBF44CE86D34CC57A5CEA8"><enum>(a)</enum><header>General rule</header><text>For purposes of section 38, the advanced nuclear power facility production credit of any taxpayer for any taxable year is equal to the product of—</text> <paragraph id="H5C920F4EC70349F7A255F65FF5FCC591"><enum>(1)</enum><text>1.8 cents, multiplied by</text></paragraph> <paragraph id="H798DF1BC321E4E8F96967FDE48035749"><enum>(2)</enum><text>the kilowatt hours of electricity—</text> <subparagraph id="H76F920E0451D453988985634E79C2C47"><enum>(A)</enum><text>produced by the taxpayer at an advanced nuclear power facility during the 8-year period beginning on the date the facility was originally placed in service, and</text></subparagraph> <subparagraph id="HB33CD544FC704423ACDECB0015ACCF1"><enum>(B)</enum><text>sold by the taxpayer to an unrelated person during the taxable year.</text></subparagraph></paragraph></subsection> <subsection id="H7DEB37DF1F944CBB8556CAC41C3045B"><enum>(b)</enum><header>National limitation</header> <paragraph id="H76AD5D0CCAED4A5C95E22309684250E9"><enum>(1)</enum><header>In general</header><text>The amount of credit which would (but for this subsection and subsection (c)) be allowed with respect to any facility for any taxable year shall not exceed the amount which bears the same ratio to such amount of credit as—</text> <subparagraph id="H72B2797BF1B845488784FCE590753E3F"><enum>(A)</enum><text>the national megawatt capacity limitation allocated to the facility, bears to</text></subparagraph> <subparagraph id="HF13E168EABE74C8D88B052AA6315AD1F"><enum>(B)</enum><text>the total megawatt nameplate capacity of such facility.</text></subparagraph></paragraph> <paragraph id="H3ED7B46E6360421BA8D526654CB78EFD"><enum>(2)</enum><header>Amount of national limitation</header><text>The national megawatt capacity limitation shall be 6,000 megawatts.</text></paragraph> <paragraph id="H6386AA2938E24E538CE816E64FB357AF"><enum>(3)</enum><header>Allocation of limitation</header><text>The Secretary shall allocate the national megawatt capacity limitation in such manner as the Secretary may prescribe.</text></paragraph> <paragraph id="HECC6F091EC9E4497AC70C5BC45E73741"><enum>(4)</enum><header>Regulations</header><text>Not later than 6 months after the date of the enactment of this section, the Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection. Such regulations shall provide a certification process under which the Secretary, after consultation with the Secretary of Energy, shall approve and allocate the national megawatt capacity limitation.</text></paragraph></subsection> <subsection id="H0F63149A3C924AD7B37321D1633F00AF"><enum>(c)</enum><header>Other limitations</header> <paragraph id="H4941046B2D75428086458B35491E8259"><enum>(1)</enum><header>Annual limitation</header><text>The amount of the credit allowable under subsection (a) (after the application of subsection (b)) for any taxable year with respect to any facility shall not exceed an amount which bears the same ratio to $125,000,000 as—</text> <subparagraph id="HCF9934351E1645A6A8F9326E15B35F18"><enum>(A)</enum><text>the national megawatt capacity limitation allocated under subsection (b) to the facility, bears to</text></subparagraph> <subparagraph id="HD1881D5AB9B04A13B900F67D7E78A742"><enum>(B)</enum><text>1,000.</text></subparagraph></paragraph> <paragraph id="H9E39EC736941498889D24FD16F57E627"><enum>(2)</enum><header>Other limitations</header><text>Rules similar to the rules of section 45(b) shall apply for purposes of this section, except that paragraph (2) thereof shall not apply to the 1.8 cents under subsection (a)(1).</text></paragraph></subsection> <subsection id="HC0E5DFD63E1E49DF9D9C8070F3EF5570"><enum>(d)</enum><header>Advanced nuclear power facility</header><text>For purposes of this section—</text> <paragraph id="HDA61DAE59B0C469A94ADD3DAEAB9BC20"><enum>(1)</enum><header>In general</header><text>The term <term>advanced nuclear power facility</term> means any advanced nuclear facility—</text> <subparagraph id="H6D7730485D5F4961AEBA4E825B270010"><enum>(A)</enum><text>which is owned by the taxpayer and which uses nuclear energy to produce electricity, and</text></subparagraph> <subparagraph id="HE6634C30934548BABDB5B0AABECB5F8F"><enum>(B)</enum><text>which is placed in service after the date of the enactment of this paragraph and before January 1, 2021.</text></subparagraph></paragraph> <paragraph id="HDB90B0CB4DF04111A329CAF9B9F978D2"><enum>(2)</enum><header>Advanced nuclear facility</header><text>For purposes of paragraph (1), the term <term>advanced nuclear facility</term> means any nuclear facility the reactor design for which is approved after the date of the enactment of this paragraph by the Nuclear Regulatory Commission (and such design or a substantially similar design of comparable capacity was not approved on or before such date).</text></paragraph></subsection> <subsection id="HBE65ABB88D454AC5918390DBA2030080"><enum>(e)</enum><header>Other rules to apply</header><text>Rules similar to the rules of paragraphs (1), (2), (3), (4), and (5) of section 45(e) shall apply for purposes of this section.</text></subsection></section><after-quoted-block>. </after-quoted-block></quoted-block></subsection> <subsection id="H654825B2A59344678D862F8275D5E0DF"><enum>(b)</enum><header>Credit treated as business credit</header><text>Section 38(b), as amended by this Act, is amended by striking <quote>plus</quote> at the end of paragraph (20), by striking the period at the end of paragraph (21) and inserting <quote>, plus</quote>, and by adding at the end the following:</text> <quoted-block id="HB3FDFFE9C7A742B9003B0164951153D7"> <paragraph id="HE2538D4F50AC4583A2EBBD8DF3C32694"><enum>(22)</enum><text>the advanced nuclear power facility production credit determined under section 45L(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HE8D7EBCC187D431DAA95C6B1981CDC3C"><enum>(c)</enum><header>Clerical amendment</header><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by this Act, is amended by adding at the end the following:</text> <quoted-block style="OLC" id="H2E013D0B9B7F41E0993B16D45EA42F6"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 45L. Credit for production from advanced nuclear power facilities</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H61BF0A3E9E424E9EA18560011DC7934"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to production in taxable years beginning after December 31, 2003.</text></subsection></section></part> <part id="H908E85CA111042E8001C2F75FA23EA91"><enum>II</enum><header>Fuels and alternative motor vehicles</header> <section id="H35DF7FA3E268441B9455B8FAAF40000"><enum>1311.</enum><header>Repeal of 4.3-cent motor fuel excise taxes on railroads and inland waterway transportation which remain in general Fund</header> <subsection id="H6D5B18F558A745DB93413CE9AD31BC3E"><enum>(a)</enum><header>Taxes on trains</header> <paragraph id="H91F0AB0AA89C4E6BB7EF55FDE552E69E"><enum>(1)</enum><header>In general</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/4041">section 4041(a)(1)</external-xref> is amended by striking <quote>or a diesel-powered train</quote> each place it appears and by striking <quote>or train</quote>.</text></paragraph> <paragraph id="H2AEFFBB299E84984AB5CC3C0937330C"><enum>(2)</enum><header>Conforming amendments</header> <subparagraph id="H3E800B2300814A9F9B2FB7E29C2662CD"><enum>(A)</enum><text>Subparagraph (C) of <external-xref legal-doc="usc" parsable-cite="usc/26/4041">section 4041(a)(1)</external-xref> is amended by striking clause (ii) and by redesignating clause (iii) as clause (ii).</text></subparagraph> <subparagraph id="H00256281A58E4401947710FBE925DE13"><enum>(B)</enum><text>Subparagraph (C) of <external-xref legal-doc="usc" parsable-cite="usc/26/4041">section 4041(b)(1)</external-xref> is amended by striking all that follows <quote>section 6421(e)(2)</quote> and inserting a period.</text></subparagraph> <subparagraph id="H3C77AC2A390144D8B257F1CD125BF9F"><enum>(C)</enum><text>Subsection (d) of <external-xref legal-doc="usc" parsable-cite="usc/26/4041">section 4041</external-xref> is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph:</text> <quoted-block id="H8FEA0149602A45DA880400E871DEFA47"> <paragraph id="H2D7022CB98654E3994971E29B1A7008C"><enum>(3)</enum><header>Diesel fuel used in trains</header><text>There is hereby imposed a tax of 0.1 cent per gallon on any liquid other than gasoline (as defined in section 4083)—</text> <subparagraph id="H00EE2971AB264ECAA63C3E0840C11F79"><enum>(A)</enum><text>sold by any person to an owner, lessee, or other operator of a diesel-powered train for use as a fuel in such train, or</text></subparagraph> <subparagraph id="H997012FFD35646749300D1BA722300C1"><enum>(B)</enum><text>used by any person as a fuel in a diesel-powered train unless there was a taxable sale of such fuel under subparagraph (A).</text></subparagraph><continuation-text continuation-text-level="paragraph">No tax shall be imposed by this paragraph on the sale or use of any liquid if tax was imposed on such liquid under section 4081.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H93B4A72AF06F45C8B7097F4C005882CA"><enum>(D)</enum><text>Subsection (f) of <external-xref legal-doc="usc" parsable-cite="usc/26/4082">section 4082</external-xref> is amended by striking <quote>section 4041(a)(1)</quote> and inserting <quote>subsections (d)(3) and (a)(1) of section 4041, respectively</quote>.</text></subparagraph> <subparagraph id="HF3314ADC20E440F1BA1B1EBA006076CB"><enum>(E)</enum><text>Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/26/4083">section 4083(a)</external-xref> is amended by striking <quote>or a diesel-powered train</quote>.</text></subparagraph> <subparagraph id="H313AD325381F4F208CDF1C3FBB4371BD"><enum>(F)</enum><text>Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/26/6421">section 6421(f)</external-xref> is amended to read as follows:</text> <quoted-block id="HD7399A4AA8324E1E9964B9509E93E2"> <paragraph id="HA188B6E558DE4C95BFEE79F6CF9CC08F"><enum>(3)</enum><header>Gasoline used in trains</header><text>In the case of gasoline used as a fuel in a train, this section shall not apply with respect to the Leaking Underground Storage Tank Trust Fund financing rate under section 4081.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H83AC89EEF310482FA41DE005C1FC917"><enum>(G)</enum><text>Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/26/6427">section 6427(l)</external-xref> is amended to read as follows:</text> <quoted-block id="HD98EBE925E4A4E2E92BA1D25FD047507"> <paragraph id="HC2542620B60A41E49F2F15F9FC7E7400"><enum>(3)</enum><header>Refund of certain taxes on fuel used in diesel-powered trains</header><text>For purposes of this subsection, the term <term>nontaxable use</term> includes fuel used in a diesel-powered train. The preceding sentence shall not apply to the tax imposed by section 4041(d) and the Leaking Underground Storage Tank Trust Fund financing rate under section 4081 except with respect to fuel sold for exclusive use by a State or any political subdivision thereof.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection> <subsection id="H5F61090218E049618C8920ED31E341E9"><enum>(b)</enum><header>Fuel used on inland waterways</header> <paragraph id="HBAF3F1E9FCA64947B445D3B6AFB5CC4B"><enum>(1)</enum><header>In general</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/4042">section 4042(b)</external-xref> is amended by adding <quote>and</quote> at the end of subparagraph (A), by striking <quote>, and</quote> at the end of subparagraph (B) and inserting a period, and by striking subparagraph (C).</text></paragraph> <paragraph id="H2226E0A4253742A3993CA77FB570828"><enum>(2)</enum><header>Conforming amendment</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/4042">section 4042(b)</external-xref> is amended by striking subparagraph (C).</text></paragraph></subsection> <subsection id="H025EB3C781A24F4F9DB0C644C9B9DD59"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall take effect on January 1, 2004.</text></subsection></section> <section id="HF86412A5028946B4B58405649B4CD4A5"><enum>1312.</enum><header>Reduced motor fuel excise tax on certain mixtures of diesel fuel</header> <subsection id="H11DF0C84187D47DF8EF4D7184EE2C00"><enum>(a)</enum><header>In general</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/4081">section 4081(a)</external-xref> is amended by adding at the end the following:</text> <quoted-block id="H980515518C3840A39CC8AFDF6EF8FBA1"> <subparagraph id="H8EFA389E104B497EB112BD8780B85439"><enum>(C)</enum><header>Diesel-water fuel emulsion</header><text>In the case of diesel-water fuel emulsion at least 14 percent of which is water and with respect to which the emulsion additive is registered by a United States manufacturer with the Environmental Protection Agency pursuant to section 211 of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (as in effect on March 31, 2003), subparagraph (A)(iii) shall be applied by substituting <quote>19.7 cents</quote> for <quote>24.3 cents</quote>.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HB95D434A697B45828309882DA5483661"><enum>(b)</enum><header>Special rules for diesel-water fuel emulsions</header> <paragraph id="HCF810088CA954EAA9047A322FEBF93A2"><enum>(1)</enum><header>Refunds for tax-paid purchases</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6427">Section 6427</external-xref> is amended by redesignating subsections (m) through (p) as subsections (n) through (q), respectively, and by inserting after subsection (l) the following new subsection:</text> <quoted-block id="H7318BC7C1DDD4B728376A00F043A334"> <subsection id="HC0BAAF0787174C8EB99476FA91007EFD"><enum>(m)</enum><header>Diesel fuel used to produce emulsion</header> <paragraph id="H650F9662DC1A41BD911C1271EAB2733"><enum>(1)</enum><header>In general</header><text>Except as provided in subsection (k), if any diesel fuel on which tax was imposed by section 4081 at the regular tax rate is used by any person in producing an emulsion described in section 4081(a)(2)(C) which is sold or used in such person’s trade or business, the Secretary shall pay (without interest) to such person an amount equal to the excess of the regular tax rate over the incentive tax rate with respect to such fuel.</text></paragraph> <paragraph id="H29AE1EE8E7644C338B32BC70B0FA9B55"><enum>(2)</enum><header>Definitions</header><text>For purposes of paragraph (1)—</text> <subparagraph id="HBBE5093D5F4A4448A28C9CE5A6B9FB2"><enum>(A)</enum><header>Regular tax rate</header><text>The term <term>regular tax rate</term> means the aggregate rate of tax imposed by section 4081 determined without regard to section 4081(a)(2)(C).</text></subparagraph> <subparagraph id="HF9DDC89E704D4B429C41BA40529369A7"><enum>(B)</enum><header>Incentive tax rate</header><text>The term <term>incentive tax rate</term> means the aggregate rate of tax imposed by section 4081 determined with regard to section 4081(a)(2)(C).</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H17177A59BC7C40039389D56D64C072B1"><enum>(2)</enum><header>Later separation of fuel</header> <subparagraph id="H2FA27D44319C4D5EAD6FB9FFDEF962AA"><enum>(A)</enum><header>In general</header><text>Section 4081 (relating to imposition of tax) is amended by redesignating subsections (d) and (e) as subsections (e) and (f), respectively, and by inserting after subsection (c) the following new subsection:</text> <quoted-block id="H0F026D8AE6D44F7482107E2EC88DC349"> <subsection id="HB21EF0ECA2C54766A40200B18D925B47"><enum>(d)</enum><header>Later separation of fuel from diesel-water fuel emulsion</header><text>If any person separates the taxable fuel from a diesel-water fuel emulsion on which tax was imposed under subsection (a) at a rate determined under subsection (a)(2)(C) (or with respect to which a credit or payment was allowed or made by reason of section 6427), such person shall be treated as the refiner of such taxable fuel. The amount of tax imposed on any removal of such fuel by such person shall be reduced by the amount of tax imposed (and not credited or refunded) on any prior removal or entry of such fuel.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H2A88C8527531422CB3E3ECAA8CEB269C"><enum>(B)</enum><header>Conforming amendment</header><text>Subsection (d) of <external-xref legal-doc="usc" parsable-cite="usc/26/6416">section 6416</external-xref> is amended by striking <quote>section 4081(e)</quote> and inserting <quote>section 4081(f)</quote>.</text></subparagraph></paragraph></subsection> <subsection id="HEE67BC57DBD3480AB86FE1EAB38A143"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall take effect on January 1, 2004.</text></subsection></section> <section id="H6B2E5646B3C640799EC7FE44AA1FEF1B"><enum>1313.</enum><header>Small ethanol producer credit</header> <subsection id="HDE58AB46295B4A15AB0043F7B783D2EA"><enum>(a)</enum><header>Allocation of alcohol fuels credit to patrons of a cooperative</header><text>Section 40(g) (relating to definitions and special rules for eligible small ethanol producer credit) is amended by adding at the end the following new paragraph:</text> <quoted-block id="H1F2F042FB5764132B0F3032895437EE9"> <paragraph id="H83A6F2E71B8042A4B146CA3CDB927C38"><enum>(6)</enum><header>Allocation of small ethanol producer credit to patrons of cooperative</header> <subparagraph id="HC94C1AAC24FA49E1A02E47DDF51BD0F1"><enum>(A)</enum><header>Election to allocate</header> <clause id="HAA207F35F61A466DA873301397F9531E"><enum>(i)</enum><header>In general</header><text>In the case of a cooperative organization described in section 1381(a), any portion of the credit determined under subsection (a)(3) for the taxable year may, at the election of the organization, be apportioned pro rata among patrons of the organization on the basis of the quantity or value of business done with or for such patrons for the taxable year.</text></clause> <clause id="H8B6068825B8F49ABAD5FA26BC75DD94F"><enum>(ii)</enum><header>Form and effect of election</header><text>An election under clause (i) for any taxable year shall be made on a timely filed return for such year. Such election, once made, shall be irrevocable for such taxable year.</text></clause></subparagraph> <subparagraph id="H25459F6C52834888B6A035E1DC584091"><enum>(B)</enum><header>Treatment of organizations and patrons</header><text>The amount of the credit apportioned to patrons under subparagraph (A)—</text> <clause id="HF1FFFDD23F3A4BB29BD5973F374EBE30"><enum>(i)</enum><text>shall not be included in the amount determined under subsection (a) with respect to the organization for the taxable year, and</text></clause> <clause id="H182FE3B13A634B5BA7C3F698B7F4B53B"><enum>(ii)</enum><text>shall be included in the amount determined under subsection (a) for the taxable year of each patron for which the patronage dividends for the taxable year described in subparagraph (A) are included in gross income.</text></clause></subparagraph> <subparagraph id="H54F038C61091421BBC70C5E5E7C7FB96"><enum>(C)</enum><header>Special rule</header><text>If the amount of a credit which has been apportioned to any patron under this paragraph is decreased for any reason—</text> <clause id="H6EE0A720939C45DCBB080908A3D9C8F"><enum>(i)</enum><text>such amount shall not increase the tax imposed on such patron, and</text></clause> <clause id="HD39B0152609B46B4B86708D92D7FD6D5"><enum>(ii)</enum><text>the tax imposed by this chapter on such organization shall be increased by such amount.</text></clause><continuation-text continuation-text-level="subparagraph">The increase under clause (ii) shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter or for purposes of section 55.</continuation-text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H85C8BBD67EC54845B2008E529224D515"><enum>(b)</enum><header>Definition of small ethanol producer</header><text>Section 40(g) (relating to definitions and special rules for eligible small ethanol producer credit) is amended by striking <quote>30,000,000</quote> each place it appears and inserting <quote>60,000,000</quote>.</text></subsection> <subsection id="H48DC40E99CE14F7C9382D21014FD7D66"><enum>(c)</enum><header>Conforming amendment</header><text>Section 1388 (relating to definitions and special rules for cooperative organizations) is amended by adding at the end the following new subsection:</text> <quoted-block id="HF03D3A1288C04F888F8D4777DEA58B36"> <subsection id="HD1CFB6AB1A73401DA2CA87618100E6C8"><enum>(k)</enum><header>Cross reference</header><text>For provisions relating to the apportionment of the alcohol fuels credit between cooperative organizations and their patrons, see section 40(g)(6).</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H950FC5C1E05441FE814BBA007DC059B2"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2003.</text></subsection></section> <section id="H7A5920D987464A41AB31C00400A90019"><enum>1314.</enum><header>Incentives for biodiesel</header> <subsection id="H4C50AC199B55482A92266913C35654B1"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1 (relating to business related credits) is amended by inserting after section 40 the following new section:</text> <quoted-block id="H21CA17D72F974195BAA0F624C369F5FD"> <section id="HA09BC5536D494675BBD7965B03B03907"><enum>40A.</enum><header>Biodiesel used as fuel</header> <subsection id="HDA33B253509E47D8A1C599CEDA36045"><enum>(a)</enum><header>General rule</header><text>For purposes of section 38, the biodiesel fuels credit determined under this section for the taxable year is an amount equal to the sum of—</text> <paragraph id="H8933C3D0F0004BB494EEB73D9DCC929F"><enum>(1)</enum><text>the biodiesel mixture credit, plus</text></paragraph> <paragraph id="HB836F2E7DDD6431AA57D7033F2CCBAC"><enum>(2)</enum><text>the biodiesel credit.</text></paragraph></subsection> <subsection id="H3E789FB96F2C49C196AC5DCBEE390CA"><enum>(b)</enum><header>Definition of biodiesel mixture credit and biodiesel credit</header><text>For purposes of this section—</text> <paragraph id="HD0C03BC7CF9541D8BE350243F2DF1160"><enum>(1)</enum><header>Biodiesel mixture credit</header> <subparagraph id="HCBF1887981F74428837B535FC0E454F9"><enum>(A)</enum><header>In general</header><text>The biodiesel mixture credit of any taxpayer for any taxable year is 50 cents for each gallon of biodiesel used by the taxpayer in the production of a qualified biodiesel mixture.</text></subparagraph> <subparagraph id="H9623259F1B06405285D0AE49D5F72EAF"><enum>(B)</enum><header>Qualified biodiesel mixture</header><text>The term <term>qualified biodiesel mixture</term> means a mixture of biodiesel and a taxable fuel (within the meaning of section 4083(a)(1)) which—</text> <clause id="H6BB022D31CC844FFAD9588004E00B63"><enum>(i)</enum><text>is sold by the taxpayer producing such mixture to any person for use as a fuel, or</text></clause> <clause id="HECF2528728344C21A75002C9032BDE7"><enum>(ii)</enum><text>is used as a fuel by the taxpayer producing such mixture.</text></clause></subparagraph> <subparagraph id="HAFE0E055065D43769F917C5464EA7B24"><enum>(C)</enum><header>Sale or use must be in trade or business, etc</header><text>Biodiesel used in the production of a qualified biodiesel mixture shall be taken into account—</text> <clause id="HA4A63B7BFE8349FAB414415B1984DFAD"><enum>(i)</enum><text>only if the sale or use described in subparagraph (B) is in a trade or business of the taxpayer, and</text></clause> <clause id="HE3611675DD644B2988E5175C36AB6"><enum>(ii)</enum><text>for the taxable year in which such sale or use occurs.</text></clause></subparagraph> <subparagraph id="HB338918ACCD54B868568CB5E82AE42D5"><enum>(D)</enum><header>Casual off-farm production not eligible</header><text>No credit shall be allowed under this section with respect to any casual off-farm production of a qualified biodiesel mixture.</text></subparagraph></paragraph> <paragraph id="H291F99E196CA4BC7ADBFF97B7675ABE"><enum>(2)</enum><header>Biodiesel credit</header> <subparagraph id="HB9BF6092A4BE430FB11170AB80A30021"><enum>(A)</enum><header>In general</header><text>The biodiesel credit of any taxpayer for any taxable year is 50 cents for each gallon of biodiesel which is not in a mixture and which during the taxable year—</text> <clause id="H4C659A46E7E943FAAA8775A21325E2E9"><enum>(i)</enum><text>is used by the taxpayer as a fuel in a trade or business, or</text></clause> <clause id="H9B42A18CE8D14D9D9795D09E64984B7B"><enum>(ii)</enum><text>is sold by the taxpayer at retail to a person and placed in the fuel tank of such person’s vehicle.</text></clause></subparagraph> <subparagraph id="H047B8416472E4F7EBEE0B8E48387D5E5"><enum>(B)</enum><header>User credit not to apply to biodiesel sold at retail</header><text>No credit shall be allowed under subparagraph (A)(i) with respect to any biodiesel which was sold in a retail sale described in subparagraph (A)(ii).</text></subparagraph></paragraph> <paragraph id="H04C09C719A2049DCBB8E3200303B27C3"><enum>(3)</enum><header>Credit for agri-biodiesel</header><text>In the case of any biodiesel which is agri-biodiesel, paragraphs (1)(A) and (2)(A) shall be applied by substituting <quote>$1.00</quote> for <quote>50 cents</quote>.</text></paragraph> <paragraph id="HAD0BA00E8D9D432687FCA6CEE3FBE7A5"><enum>(4)</enum><header>Certification for biodiesel</header><text>No credit shall be allowed under this section unless the taxpayer obtains a certification (in such form and manner as prescribed by the Secretary) from the producer of the biodiesel which identifies the product produced and the percentage of biodiesel and agri-biodiesel in the product.</text></paragraph></subsection> <subsection id="H904B30E32AA647E49E9F89B9FF85E7E"><enum>(c)</enum><header>Coordination with credit against excise tax</header><text>The amount of the credit determined under this section with respect to any biodiesel shall be properly reduced to take into account any benefit provided with respect to such biodiesel solely by reason of the application of section 6426.</text></subsection> <subsection id="H28E6A078CCB14738B564696676D5393E"><enum>(d)</enum><header>Definitions and special rules</header><text>For purposes of this section—</text> <paragraph id="H84ACAA55D67044F691F109A522DA8DC"><enum>(1)</enum><header>Biodiesel</header><text>The term <term>biodiesel</term> means the monoalkyl esters of long chain fatty acids derived from plant or animal matter which meet—</text> <subparagraph id="H63B7D12A459E44C88527C480004BB619"><enum>(A)</enum><text>the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545</external-xref>), and</text></subparagraph> <subparagraph id="H3304C0DA743143FCA5F8E315BAA4EEF"><enum>(B)</enum><text>the requirements of the American Society of Testing and Materials D6751.</text></subparagraph></paragraph> <paragraph id="H7EE50A215FC5402087BE063CE48FF450"><enum>(2)</enum><header>Agri-biodiesel</header><text>The term <term>agri-biodiesel</term> means biodiesel derived solely from virgin oils, including esters derived from virgin vegetable oils from corn, soybeans, sunflower seeds, cottonseeds, canola, crambe, rapeseeds, safflowers, flaxseeds, rice bran, and mustard seeds, and from animal fats.</text></paragraph> <paragraph id="HD541E0BF82B845B6BFB6007046C12284"><enum>(3)</enum><header>Mixture or biodiesel not used as a fuel, etc</header> <subparagraph id="H901CD904DBCE4F4D837EDDF7E0B60121"><enum>(A)</enum><header>Mixtures</header><text>If—</text> <clause id="HC369BA9BA7474ACC8557DD66D8C1720"><enum>(i)</enum><text>any credit was determined under this section with respect to biodiesel used in the production of any qualified biodiesel mixture, and</text></clause> <clause id="HE7ABC453A93146F1A345A08C1C664FC0"><enum>(ii)</enum><text>any person—</text> <subclause id="H848C2B3E3F7347B389AD18D57F601E5F"><enum>(I)</enum><text>separates the biodiesel from the mixture, or</text></subclause> <subclause id="HDDE3AE1A215849409928AAED854C85AB"><enum>(II)</enum><text>without separation, uses the mixture other than as a fuel,</text></subclause></clause><continuation-text continuation-text-level="subparagraph">then there is hereby imposed on such person a tax equal to the product of the rate applicable under subsection (b)(1)(A) and the number of gallons of such biodiesel in such mixture.</continuation-text></subparagraph> <subparagraph id="HC9849A0508CD40E6939BA8CAE15F86B"><enum>(B)</enum><header>Biodiesel</header><text>If—</text> <clause id="H9E52BEDC5980401B8547ABC3438BEC80"><enum>(i)</enum><text>any credit was determined under this section with respect to the retail sale of any biodiesel, and</text></clause> <clause id="HE467E79C44D14FCCB6CE69A65274B17D"><enum>(ii)</enum><text>any person mixes such biodiesel or uses such biodiesel other than as a fuel,</text></clause><continuation-text continuation-text-level="subparagraph">then there is hereby imposed on such person a tax equal to the product of the rate applicable under subsection (b)(2)(A) and the number of gallons of such biodiesel.</continuation-text></subparagraph> <subparagraph id="HC9FE2A558F8744CFA2EB82594D1BD77D"><enum>(C)</enum><header>Applicable laws</header><text>All provisions of law, including penalties, shall, insofar as applicable and not inconsistent with this section, apply in respect of any tax imposed under subparagraph (A) or (B) as if such tax were imposed by section 4081 and not by this chapter.</text></subparagraph></paragraph> <paragraph id="HE7B64C05055E448EA91F4164D7BE0A8"><enum>(4)</enum><header>Pass-thru in the case of estates and trusts</header><text>Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply.</text></paragraph></subsection> <subsection id="HA8E75F4F9C8D496A9094C7A2CE5028F6"><enum>(e)</enum><header>Termination</header><text>This section shall not apply to any sale or use after December 31, 2005.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H9328CA8562CB44EBA587001B3976B9EC"><enum>(b)</enum><header>Credit treated as part of general business credit</header><text>Section 38(b) (relating to current year business credit) is amended by striking <quote>plus</quote> at the end of paragraph (16), by striking the period at the end of paragraph (17) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="H5F0B4C172A414A52AE62953D17CC19BF"> <paragraph id="H1F1F7063D0DD4DF5B51991CA79379266"><enum>(18)</enum><text>the biodiesel fuels credit determined under section 40A(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H3FB856CD82B54D57ACF6273FFF12EB59"><enum>(c)</enum><header>Conforming amendments</header> <paragraph id="HDF0C2BF49C44458589E7225989929C8D"><enum>(1)</enum> <subparagraph display-inline="yes-display-inline" id="H70611D30E5AF48D19BAEEFDD8D95DF"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/87">Section 87</external-xref> is amended to read as follows:</text> <quoted-block id="H2AA18C8B01374625BACFD9B4431BB86"> <section id="HBBF188DF6B934095AA27E635474725B0"><enum>87.</enum><header>Alcohol and biodiesel fuels credits</header><text display-inline="no-display-inline">Gross income includes—</text> <paragraph id="H76BCC48195114D66BE3104CDDE61D96E"><enum>(1)</enum><text>the amount of the alcohol fuels credit determined with respect to the taxpayer for the taxable year under section 40(a), and</text></paragraph> <paragraph id="H3D81E97A00D84612BC7C4D249B92ED33"><enum>(2)</enum><text>the biodiesel fuels credit determined with respect to the taxpayer for the taxable year under section 40A(a).</text></paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph> <subparagraph indent="up1" id="H5E2544BA3F3E4348A3C44919D576934"><enum>(B)</enum><text>The item relating to section 87 in the table of sections for part II of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking <quote>fuel credit</quote> and inserting <quote>and biodiesel fuels credits</quote>.</text></subparagraph></paragraph> <paragraph id="H97B714893D02468C9017F3985F708100"><enum>(2)</enum><text>Section 196(c), as amended by this Act, is amended by striking <quote>and</quote> at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="HB799411AD9CD4E0CB270ABECB840909B"> <paragraph id="H87F67C8CF0674D2892424CE91FD45B9B"><enum>(13)</enum><text>the biodiesel fuels credit determined under section 40A(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H717D0A680A4E4DF2919360B86F53D266"><enum>(3)</enum><text>The table of sections for subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding after the item relating to section 40 the following new item:</text> <quoted-block style="OLC" id="H0E645E61874B4AB4A82F4F91EBF15653"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 40A. Biodiesel used as fuel</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H3DDD0B6C9AAA49B7AF15D0B3A30700F"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to fuel produced, and sold or used, after December 31, 2003, in taxable years ending after such date.</text></subsection></section> <section id="H756C12783E024F95B52BFC8EBD2B7D81"><enum>1315.</enum><header>Alcohol fuel and biodiesel mixtures excise tax credit</header> <subsection id="H2EB9DB9FDBF64A119CBDD437D3743736"><enum>(a)</enum><header>In general</header><text>Subchapter B of chapter 65 (relating to rules of special application) is amended by inserting after section 6425 the following new section:</text> <quoted-block id="H2CEF2DC21C424DE98E3516A9F216F471"> <section id="HBD0E5DCCDF094DABBAF8F1A347539D97"><enum>6426.</enum><header>Credit for alcohol fuel and biodiesel mixtures</header> <subsection id="HB9061F82ECDE4295939976368FBEF5D3"><enum>(a)</enum><header>Allowance of credits</header><text>There shall be allowed as a credit against the tax imposed by section 4081 an amount equal to the sum of—</text> <paragraph id="H6598A7FA3B73400B9C88CFC59500DE88"><enum>(1)</enum><text>the alcohol fuel mixture credit, plus</text></paragraph> <paragraph id="H01087D16C4E94FA290E32E11DE6966F9"><enum>(2)</enum><text>the biodiesel mixture credit.</text></paragraph></subsection> <subsection id="H2CBB29DA0F6048858E051B2CE8D00206"><enum>(b)</enum><header>Alcohol fuel mixture credit</header> <paragraph id="HF9E27842907B45B184A0C8AB27280938"><enum>(1)</enum><header>In general</header><text>For purposes of this section, the alcohol fuel mixture credit is the product of the applicable amount and the number of gallons of alcohol used by the taxpayer in producing any alcohol fuel mixture for sale or use in a trade or business of the taxpayer.</text></paragraph> <paragraph id="HEF2CEECED34D4AC3B12100BF5D841DDC"><enum>(2)</enum><header>Applicable amount</header><text>For purposes of this subsection—</text> <subparagraph id="HF644AB0D23884DBCA91EBC2465763442"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the applicable amount is 52 cents (51 cents in the case of any sale or use after 2004).</text></subparagraph> <subparagraph id="HCE17CF5CE28C439E92FB9E1D206FE97"><enum>(B)</enum><header>Mixtures not containing ethanol</header><text>In the case of an alcohol fuel mixture in which none of the alcohol consists of ethanol, the applicable amount is 60 cents.</text></subparagraph></paragraph> <paragraph id="HE5E2C2BAB72043109DE34775FE783251"><enum>(3)</enum><header>Alcohol fuel mixture</header><text>For purposes of this subsection, the term <term>alcohol fuel mixture</term> means a mixture of alcohol and a taxable fuel which—</text> <subparagraph id="H63BA20A903204A319FF4C5A2EC8FFD08"><enum>(A)</enum><text>is sold by the taxpayer producing such mixture to any person for use as a fuel,</text></subparagraph> <subparagraph id="H78FA32ED7ABD4510B6A3D17F5BCA755"><enum>(B)</enum><text>is used as a fuel by the taxpayer producing such mixture, or</text></subparagraph> <subparagraph id="HD85B42C27EFB4B2C902D5800398F4E20"><enum>(C)</enum><text>is removed from the refinery by a person producing such mixture.</text></subparagraph></paragraph> <paragraph id="HEACB8B9743C948FFB12EC59DCEF0EFC5"><enum>(4)</enum><header>Other definitions</header><text>For purposes of this subsection—</text> <subparagraph id="H93AD32FBA9E148379700E80730A327A6"><enum>(A)</enum><header>Alcohol</header><text>The term <term>alcohol</term> includes methanol and ethanol but does not include—</text> <clause id="H1CCC458E4A5046C88580E3033EE2B2"><enum>(i)</enum><text>alcohol produced from petroleum, natural gas, or coal (including peat), or</text></clause> <clause id="H9DC43F0E505B4626A015F000F7ABF0D"><enum>(ii)</enum><text>alcohol with a proof of less than 190 (determined without regard to any added denaturants).</text></clause><continuation-text continuation-text-level="subparagraph">Such term also includes an alcohol gallon equivalent of ethyl tertiary butyl ether or other ethers produced from such alcohol.</continuation-text></subparagraph> <subparagraph id="H6E3ABA9C1D5349C5BF03AE76161D72F9"><enum>(B)</enum><header>Taxable fuel</header><text>The term <term>taxable fuel</term> has the meaning given such term by section 4083(a)(1).</text></subparagraph></paragraph> <paragraph id="H7B96A8795EDF49B3B33FD71CAC00D642"><enum>(5)</enum><header>Termination</header><text>This subsection shall not apply to any sale, use, or removal for any period after December 31, 2010.</text></paragraph></subsection> <subsection id="HDD402618221E49688CA9F6A2635F32F6"><enum>(c)</enum><header>Biodiesel mixture credit</header> <paragraph id="H5C6FB828D00E4829A617F72ABBB537C"><enum>(1)</enum><header>In general</header><text>For purposes of this section, the biodiesel mixture credit is the product of the applicable amount and the number of gallons of biodiesel used by the taxpayer in producing any biodiesel mixture for sale or use in a trade or business of the taxpayer.</text></paragraph> <paragraph id="H1EB9C4F1656E4D008E3FFCCFDFDBD2C7"><enum>(2)</enum><header>Applicable amount</header><text>For purposes of this subsection—</text> <subparagraph id="H1EF445E4154B496887E4D2A45192FC00"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the applicable amount is 50 cents.</text></subparagraph> <subparagraph id="HAD6D0E1EFB1647ECA798F14648FEB5B4"><enum>(B)</enum><header>Amount for agri-biodiesel</header><text>In the case of any biodiesel which is agri-biodiesel, the applicable amount is $1.00.</text></subparagraph></paragraph> <paragraph id="HEABCE65EDC684FB2B65F80F917C0019"><enum>(3)</enum><header>Biodiesel mixture</header><text>For purposes of this section, the term <term>biodiesel mixture</term> means a mixture of biodiesel and a taxable fuel which—</text> <subparagraph id="HB7C504CA049B450BADD660B294AE12AE"><enum>(A)</enum><text>is sold by the taxpayer producing such mixture to any person for use as a fuel,</text></subparagraph> <subparagraph id="H642126D4820A443F828B162152F62338"><enum>(B)</enum><text>is used as a fuel by the taxpayer producing such mixture, or</text></subparagraph> <subparagraph id="HB0ACC5C5BED94DFEA31811E3B4139B33"><enum>(C)</enum><text>is removed from the refinery by a person producing such mixture.</text></subparagraph></paragraph> <paragraph id="H212B2273C338484BB5FA3BC538A66884"><enum>(4)</enum><header>Certification for biodiesel</header><text>No credit shall be allowed under this section unless the taxpayer obtains a certification (in such form and manner as prescribed by the Secretary) from the producer of the biodiesel which identifies the product produced and the percentage of biodiesel and agri-biodiesel in the product.</text></paragraph> <paragraph id="H392AE3193C624974ACB0CA6C5730E218"><enum>(5)</enum><header>Other definitions</header><text>Any term used in this subsection which is also used in section 40A shall have the meaning given such term by section 40A.</text></paragraph> <paragraph id="H7A16BD324F47497B90F58691A89E8934"><enum>(6)</enum><header>Termination</header><text>This subsection shall not apply to any sale, use, or removal for any period after December 31, 2005.</text></paragraph></subsection> <subsection id="H4B662446FAE94979BBE036B95DB2D790"><enum>(d)</enum><header>Mixture not used as a fuel, etc</header> <paragraph id="H5184EAAC78D4418990D5453273F1A3BD"><enum>(1)</enum><header>Imposition of tax</header><text>If—</text> <subparagraph id="HA5D8411CD3C3401B89B5BE21AC006345"><enum>(A)</enum><text>any credit was determined under this section with respect to alcohol or biodiesel used in the production of any alcohol fuel mixture or biodiesel mixture, respectively, and</text></subparagraph> <subparagraph id="H8AC5E03DF83D4E5F0012D3F7011898EB"><enum>(B)</enum><text>any person—</text> <clause id="H924F40D7218C4252B713F279E1F630B0"><enum>(i)</enum><text>separates the alcohol or biodiesel from the mixture, or</text></clause> <clause id="H43D2C95A29D1429F90132EE707FCDB8"><enum>(ii)</enum><text>without separation, uses the mixture other than as a fuel,</text></clause><continuation-text continuation-text-level="subparagraph">then there is hereby imposed on such person a tax equal to the product of the applicable amount and the number of gallons of such alcohol or biodiesel.</continuation-text></subparagraph></paragraph> <paragraph id="H2F86FDA6A7634B3EA4162DAC07116759"><enum>(2)</enum><header>Applicable laws</header><text>All provisions of law, including penalties, shall, insofar as applicable and not inconsistent with this section, apply in respect of any tax imposed under paragraph (1) as if such tax were imposed by section 4081 and not by this section.</text></paragraph></subsection> <subsection id="H819A7437E7634F7500C1F358009F06A1"><enum>(e)</enum><header>Coordination with exemption from excise tax</header><text>Rules similar to the rules under section 40(c) shall apply for purposes of this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HFEC20E104CDC420598972100A01440FB"><enum>(b)</enum><header>Registration requirement</header><text>Section 4101(a) (relating to registration) is amended by inserting <quote>and every person producing biodiesel (as defined in section 40A(d)(1)) or alcohol (as defined in section 6426(b)(4)(A))</quote> after <quote>4091</quote>.</text></subsection> <subsection id="HB1DB180565C340BCAE274E00F1841500"><enum>(c)</enum><header>Additional amendments</header> <paragraph id="HD784AC010EB54421BBE1DB1100D0054B"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/40">Section 40(c)</external-xref> is amended by striking <quote>or section 4091(c)</quote> and inserting <quote>section 4091(c), or section 6426</quote>.</text></paragraph> <paragraph id="H086323D4FBFE4AE3A900E901F7B1D4EA"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/40">Section 40(e)(1)</external-xref> is amended—</text> <subparagraph id="H148B28F77454443CB835574BDAC38248"><enum>(A)</enum><text>by striking <quote>2007</quote> in subparagraph (A) and inserting <quote>2010</quote>, and</text></subparagraph> <subparagraph id="H94AF2DC0563B457DAD40714B12A76C6F"><enum>(B)</enum><text>by striking <quote>2008</quote> in subparagraph (B) and inserting <quote>2011</quote>.</text></subparagraph></paragraph> <paragraph id="HD1878304CD124453894EEB924000A85B"><enum>(3)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/40">Section 40(h)</external-xref> is amended—</text> <subparagraph id="H989208A1F7C340089E393D239B2C35BF"><enum>(A)</enum><text>by striking <quote>2007</quote> in paragraph (1) and inserting <quote>2010</quote>, and</text></subparagraph> <subparagraph id="H4DE36BF8084941C9A06248F170A671D1"><enum>(B)</enum><text>by striking <quote>, 2006, or 2007</quote> in the table contained in paragraph (2) and inserting <quote>through 2010</quote>.</text></subparagraph></paragraph> <paragraph id="H28860EF5DB90448DB643089CBF1990FF"><enum>(4)</enum> <subparagraph display-inline="yes-display-inline" id="H0AD505B3200D497A99E4EC7CED93995D"><enum>(A)</enum><text>Subpart C of part III of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/32">chapter 32</external-xref> is amended by adding at the end the following new section:</text> <quoted-block id="H25F165AD128C4D7DBDB72895886DB190"> <section id="HEF41041A0901473AA6F938AB8900512F"><enum>4104.</enum><header>Information reporting for persons claiming certain tax benefits</header> <subsection id="H378F1021C8E34284837313983BF2C589"><enum>(a)</enum><header>In general</header><text>The Secretary shall require any person claiming tax benefits under the provisions of section 34, 40, 40A, 4041(b)(2), 4041(k), 4081(c), 6426, or 6427(f) to file a quarterly return (in such manner as the Secretary may prescribe) providing such information relating to such benefits and the coordination of such benefits as the Secretary may require to ensure the proper administration and use of such benefits.</text></subsection> <subsection id="HD2E551B7BCFB410F9EA9505347416FD4"><enum>(b)</enum><header>Enforcement</header><text>With respect to any person described in subsection (a) and subject to registration requirements under this title, rules similar to rules of section 4222(c) shall apply with respect to any requirement under this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph> <subparagraph indent="up1" id="HD6F6DCAA002A43E700D6CA2F8C7F6267"><enum>(B)</enum><text>The table of sections for subpart C of part III of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/32">chapter 32</external-xref> is amended by adding at the end the following new item:</text> <quoted-block style="OLC" id="H976B3D084DB24B2399DE4F022108848E"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 4104. Information reporting for persons claiming certain tax benefits</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="HB6588CD4557D4F94AB8EFD66C2EA00F3"><enum>(5)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/6427">Section 6427(i)(3)</external-xref> is amended—</text> <subparagraph id="H59BD8DF2107947149242ACE8185E0803" display-inline="no-display-inline"><enum>(A)</enum><text>by adding at the end of subparagraph (A) the following new flush sentence:</text> <quoted-block style="OLC" id="H4B99021DFAB6466DBBB38723F00C399" display-inline="no-display-inline"><quoted-block-continuation-text quoted-block-continuation-text-level="subparagraph">In the case of an electronic claim, this subparagraph shall be applied without regard to clause (i).</quoted-block-continuation-text><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="H2AD37E32AB8445ECA683E4F5CE94F533"><enum>(B)</enum><text>by striking <quote>20 days of the date of the filing of such claim</quote> in subparagraph (B) and inserting <quote>45 days of the date of the filing of such claim (20 days in the case of an electronic claim)</quote>.</text></subparagraph></paragraph> <paragraph id="HB11E606B46B24DC5882C28BAFA73619E"><enum>(6)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/9503">Section 9503(b)(1)</external-xref> is amended by adding at the end the following new flush sentence:</text> <quoted-block style="OLC" id="HF75C9EDA380F47BB008F9447A753A90" display-inline="no-display-inline"><quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">For purposes of this paragraph, taxes received under sections 4041 and 4081 shall be determined without reduction for credits under section 6426.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HF468809D11B84ABCA419F414818692F9"><enum>(d)</enum><header>Clerical amendment</header><text>The table of sections for subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/65">chapter 65</external-xref> is amended by inserting after the item relating to section 6425 the following new item:</text> <quoted-block style="OLC" id="H5A1444F0914C4202B86D417FE007B00"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 6426. Credit for alcohol fuel and biodiesel mixtures</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HD318465C06844AE2B4372E82DD4F74C9"><enum>(e)</enum><header>Effective dates</header> <paragraph id="H4311CF85F80047E695721BA17E790075"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraphs (2) and (3), the amendments made by this section shall apply to fuel sold, used, or removed after December 31, 2003.</text></paragraph> <paragraph id="HA287CB2AB5F64FC886E5458139D17B2B"><enum>(2)</enum><header>Subsection <enum-in-header>(c)(4)</enum-in-header></header><text>The amendments made by subsection (c)(4) shall take effect on January 1, 2004.</text></paragraph> <paragraph id="H9DD3D5DA25DF426D9564001660F78023"><enum>(3)</enum><header>Subsection <enum-in-header>(c)(5)</enum-in-header></header><text>The amendments made by subsection (c)(5) shall apply to claims filed after December 31, 2004.</text></paragraph></subsection> <subsection id="H1F6D58711A9742F5BCA4EB2731F369BA"><enum>(f)</enum><header>Format for filing</header><text>The Secretary of the Treasury shall prescribe the electronic format for filing claims described in <external-xref legal-doc="usc" parsable-cite="usc/26/6427">section 6427(i)(3)(B)</external-xref> of the Internal Revenue Code of 1986 (as amended by subsection (c)(5)(A)) not later than December 31, 2004.</text></subsection></section> <section id="H9CA5B059A2C34715814D99FF27E353A1"><enum>1316.</enum><header>Nonapplication of export exemption to delivery of fuel to motor vehicles removed from United States</header> <subsection id="HC53A5081657E41A4B2E9009CD93D5D52"><enum>(a)</enum><header>In general</header><text>Section 4221(d)(2) (defining export) is amended by adding at the end the following new sentence: <quote>Such term does not include the delivery of a taxable fuel (as defined in section 4083(a)(1)) into a fuel tank of a motor vehicle which is shipped or driven out of the United States.</quote>.</text></subsection> <subsection id="H3CC538CBD899413995FF8712BD25B8B7"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H562547C9E1294F40B3E7F975D1CFB800"><enum>(1)</enum><text>Section 4041(g) (relating to other exemptions) is amended by adding at the end the following new sentence: <quote>Paragraph (3) shall not apply to the sale for delivery of a liquid into a fuel tank of a motor vehicle which is shipped or driven out of the United States.</quote>.</text></paragraph> <paragraph id="H0A77214B2DB7468980EEC8E784491061"><enum>(2)</enum><text>Clause (iv) of section 4081(a)(1)(A) (relating to tax on removal, entry, or sale) is amended by inserting <quote>or at a duty-free sales enterprise (as defined in section 555(b)(8) of the <act-name parsable-cite="TA30">Tariff Act of 1930</act-name>)</quote> after <quote>section 4101</quote>.</text></paragraph></subsection> <subsection id="H238ECF9B3BC94116842F4D924EDEDC4E"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to sales or deliveries made after the date of the enactment of this Act.</text></subsection></section> <section id="H782EAE2BBA264A11AFA252C797D4671F"><enum>1317.</enum><header>Repeal of phaseouts for qualified electric vehicle credit and deduction for clean fuel-vehicles</header> <subsection id="H4E9FF8B43E2C43E1B7ED50E18DB596C6"><enum>(a)</enum><header>Credit for qualified electric vehicles</header><text>Subsection (b) of section 30 (relating to limitations) is amended by striking paragraph (2) and redesignating paragraph (3) as paragraph (2).</text></subsection> <subsection id="H81C6FC46651645B9864E60662518FD00"><enum>(b)</enum><header>Deduction for clean-fuel vehicles and certain refueling property</header><text>Paragraph (1) of section 179A(b) (relating to qualified clean-fuel vehicle property) is amended to read as follows:</text> <quoted-block id="HD2D7AC4F03DB46229C34F5B26D8FD9C4"> <paragraph id="H55C5EE9E2F0E477EB1271262BADA76AC"><enum>(1)</enum><header>Qualified clean-fuel vehicle property</header><text>The cost which may be taken into account under subsection (a)(1)(A) with respect to any motor vehicle shall not exceed—</text> <subparagraph id="HBEBDE4215CA04D4F9F6E335FD5A08049"><enum>(A)</enum><text>in the case of a motor vehicle not described in subparagraph (B) or (C), $2,000,</text></subparagraph> <subparagraph id="HB639F82ABDED4BB1005BF9DB117C206D"><enum>(B)</enum><text>in the case of any truck or van with a gross vehicle weight rating greater than 10,000 pounds but not greater than 26,000 pounds, $5,000, or</text></subparagraph> <subparagraph id="H75A298783D7148EC006DA01B397638DE"><enum>(C)</enum><text>$50,000 in the case of—</text> <clause id="H8AFC646343794DDAB95C15A000241109"><enum>(i)</enum><text>a truck or van with a gross vehicle weight rating greater than 26,000 pounds, or</text></clause> <clause id="H66931381FF6346B8836F08D897DCE721"><enum>(ii)</enum><text>any bus which has a seating capacity of at least 20 adults (not including the driver).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HEE2E75FBE7834F7B9842BC8B48DFDC2E"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.</text></subsection></section> <section id="H640DFCDDED2B4967AE615B4D66CB121F"><enum>1318.</enum><header>Alternative motor vehicle credit</header> <subsection id="H7DCB093744CB4346948017D3F908A087"><enum>(a)</enum><header>In general</header><text>Subpart B of part IV of subchapter A of chapter 1 (relating to foreign tax credit, etc.) is amended by adding at the end the following:</text> <quoted-block id="H6D68E9A8ACF24421A54020E2E8890502"> <section id="H5B0FF6179C82433DB7F0DFC813AE8575"><enum>30B.</enum><header>Alternative motor vehicle credit</header> <subsection id="HB22429B947494E2D8FDF6BCD4C268000"><enum>(a)</enum><header>Allowance of credit</header><text>There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of—</text> <paragraph id="H57E1F3DC488840AEAB522E497DC6BC9C"><enum>(1)</enum><text>the new qualified fuel cell motor vehicle credit determined under subsection (b),</text></paragraph> <paragraph id="H647E65067564433EAF2736ACC5FF2E99"><enum>(2)</enum><text>the new advanced lean burn technology motor vehicle credit determined under subsection (c),</text></paragraph> <paragraph id="H21FE2A093F3B4D0D931821CD4FB6AB2B"><enum>(3)</enum><text>the new qualified hybrid motor vehicle credit determined under subsection (d), and</text></paragraph> <paragraph id="H368CE3D7FCDE4300A710CE359B12CFAA"><enum>(4)</enum><text>the new qualified alternative fuel motor vehicle credit determined under subsection (e).</text></paragraph></subsection> <subsection id="HA8BF680EEDAD442283C72ED766CC76AF"><enum>(b)</enum><header>New qualified fuel cell motor vehicle credit</header> <paragraph id="HC6788AEC7D91427100BB289809BA7BBA"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a), the new qualified fuel cell motor vehicle credit determined under this subsection with respect to a new qualified fuel cell motor vehicle placed in service by the taxpayer during the taxable year shall be determined in accordance with the following table:</text> <table table-type="subformat-2-Flush-Hang-Box-Right-Col-Fig" align-to-level="section" frame="none" blank-lines-before="1" line-rules="no-gen" rule-weights="0.0.0.4.0.0" subformat="S6211"> <tgroup cols="2"><colspec colname="col1" colwidth="275" colsep="0" coldef="txt" min-data-value="0"/><colspec colname="col2" colwidth="100" colsep="0" coldef="txt" min-data-value="0"/><thead> <row><entry colname="I49" rowsep="0" align="left"><bold></bold><bold>In the case of a vehicle which has a gross vehicle weight rating of—</bold></entry><entry colname="I50" rowsep="0" align="right"><bold>The new qualified fuel cell motor vehicle credit is—</bold></entry></row></thead> <tbody> <row><entry colname="I15" rowsep="0" align="left" stub-definition="txt-ldr">Not more than 8,500 lbs</entry><entry colname="I07" rowsep="0" align="right">$4,000</entry></row> <row><entry colname="I15" rowsep="0" align="left" stub-definition="txt-ldr">More than 8,500 lbs but not more than 14,000 lbs</entry><entry colname="I07" rowsep="0" align="right">$10,000</entry></row> <row><entry colname="I15" rowsep="0" align="left" stub-definition="txt-ldr">More than 14,000 lbs but not more than 26,000 lbs</entry><entry colname="I07" rowsep="0" align="right">$20,000</entry></row> <row><entry colname="I15" rowsep="0" align="left" stub-definition="txt-ldr">More than 26,000 lbs</entry><entry colname="I07" rowsep="0" align="right">$40,000.</entry></row></tbody></tgroup></table></paragraph> <paragraph id="H14153C366C8B4A1E84ABEF7530BEC4D4"><enum>(2)</enum><header>Increase for fuel efficiency</header> <subparagraph id="H249112D0D2E2461DB69CC553EB855916"><enum>(A)</enum><header>In general</header><text>The amount determined under paragraph (1) with respect to a new qualified fuel cell motor vehicle which is a passenger automobile or light truck shall be increased by the additional credit amount.</text></subparagraph> <subparagraph id="HEDAE273CD60F455A9F1790D69251BAC7"><enum>(B)</enum><header>Additional credit amount</header><text>For purposes of subparagraph (A), the additional credit amount shall be determined in accordance with the following table:</text> <table table-type="subformat-2-Flush-Hang-Box-Right-Col-Fig" align-to-level="section" frame="none" line-rules="no-gen" rule-weights="0.0.0.4.0.0" blank-lines-before="1" subformat="S6211"> <tgroup cols="2"><colspec colname="col1" coldef="txt" min-data-value="0" colwidth="275" colsep="0"/><colspec colname="col2" coldef="txt" min-data-value="0" colwidth="100" colsep="0"/><thead> <row><entry colname="I49" align="left" rowsep="0"><bold>In the case of a vehicle which achieves a fuel economy (expressed as a percentage of the 2002 model year city fuel economy) of—</bold></entry><entry colname="I50" align="right" rowsep="0"><bold>The additional credit amount is—</bold></entry></row></thead> <tbody> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">At least 150 percent but less than 175 percent</entry><entry colname="I07" align="right" rowsep="0">$1,000</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">At least 175 percent but less than 200 percent</entry><entry colname="I07" align="right" rowsep="0">$1,500</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">At least 200 percent but less than 225 percent</entry><entry colname="I07" align="right" rowsep="0">$2,000</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">At least 225 percent but less than 250 percent</entry><entry colname="I07" align="right" rowsep="0">$2,500</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">At least 250 percent but less than 275 percent</entry><entry colname="I07" align="right" rowsep="0">$3,000</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">At least 275 percent but less than 300 percent</entry><entry colname="I07" align="right" rowsep="0">$3,500</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">At least 300 percent</entry><entry colname="I07" align="right" rowsep="0">$4,000.</entry></row></tbody></tgroup></table></subparagraph></paragraph> <paragraph id="H8905CABD676C497C98E8E789305B8098"><enum>(3)</enum><header>New qualified fuel cell motor vehicle</header><text>For purposes of this subsection, the term <term>new qualified fuel cell motor vehicle</term> means a motor vehicle—</text> <subparagraph id="H3DE4FEB47E3449F08C52B8C2A73B62DF"><enum>(A)</enum><text>which is propelled by power derived from one or more cells which convert chemical energy directly into electricity by combining oxygen with hydrogen fuel which is stored on board the vehicle in any form and may or may not require reformation prior to use,</text></subparagraph> <subparagraph id="HDBCAFAC7EDD1480C82E15ED51CF634E4"><enum>(B)</enum><text>which, in the case of a passenger automobile or light truck, has received—</text> <clause id="H475BF0BDF0FB4889B7F00BB40B84DC"><enum>(i)</enum><text>a certificate of conformity under the <act-name parsable-cite="CAA">Clean Air Act</act-name> and meets or exceeds the equivalent qualifying California low emission vehicle standard under section 243(e)(2) of the <act-name parsable-cite="CAA">Clean Air Act</act-name> for that make and model year, and</text></clause> <clause id="H25230948EDF14C54BB4B67D391A50094"><enum>(ii)</enum><text>a certificate that such vehicle meets or exceeds the Bin 5 Tier II emission standard established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the <act-name parsable-cite="CAA">Clean Air Act</act-name> for that make and model year vehicle,</text></clause></subparagraph> <subparagraph id="HBE5110206B524505B54B4F7453FDAC53"><enum>(C)</enum><text>the original use of which commences with the taxpayer,</text></subparagraph> <subparagraph id="H17FD473AB74D416CBB7BE62BD3BEA29"><enum>(D)</enum><text>which is acquired for use or lease by the taxpayer and not for resale, and</text></subparagraph> <subparagraph id="HA1A2745FAF964A5390631D49DB01B09F"><enum>(E)</enum><text>which is made by a manufacturer.</text></subparagraph></paragraph></subsection> <subsection id="H30196D29CCD14F59B8500005B97986C"><enum>(c)</enum><header>New advanced lean burn technology motor vehicle credit</header> <paragraph id="H6B83E7BD980E4F498E47F1282013ED6B"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a), the new advanced lean burn technology motor vehicle credit determined under this subsection with respect to a new advanced lean burn technology motor vehicle placed in service by the taxpayer during the taxable year is the credit amount determined under paragraph (2).</text></paragraph> <paragraph id="H75817C51ED0144E18E03D9BC38D91582"><enum>(2)</enum><header>Credit amount</header> <subparagraph id="H6BE0170252AC4A0195BEBB755DF44586"><enum>(A)</enum><header>Fuel economy</header><text>The credit amount determined under this paragraph shall be determined in accordance with the following table:</text> <table table-type="subformat-2-Flush-Hang-Box-Right-Col-Fig" align-to-level="subparagraph" frame="none" line-rules="no-gen" rule-weights="0.0.0.4.0.0" blank-lines-before="1" subformat="S6211"> <tgroup cols="2"><colspec colname="col1" coldef="txt" min-data-value="0" colwidth="275" colsep="0"/><colspec colname="col2" coldef="txt" min-data-value="0" colwidth="100" colsep="0"/><thead> <row><entry colname="I49" align="left" rowsep="0"><bold>In the case of a vehicle which achieves a fuel economy (expressed as a percentage of the 2002 model year city fuel economy) of—</bold></entry><entry colname="I50" align="right" rowsep="0"><bold>The credit amount is—</bold></entry></row></thead> <tbody> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">At least 125 percent but less than 150 percent</entry><entry colname="I07" align="right" rowsep="0">$400</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">At least 150 percent but less than 175 percent</entry><entry colname="I07" align="right" rowsep="0">$800</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">At least 175 percent but less than 200 percent</entry><entry colname="I07" align="right" rowsep="0">$1,200</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">At least 200 percent but less than 225 percent</entry><entry colname="I07" align="right" rowsep="0">$1,600</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">At least 225 percent but less than 250 percent</entry><entry colname="I07" align="right" rowsep="0">$2,000</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">At least 250 percent</entry><entry colname="I07" align="right" rowsep="0">$2,400.</entry></row></tbody></tgroup></table></subparagraph> <subparagraph id="H4912468C499441739C98C6BC3ED50000"><enum>(B)</enum><header>Conservation credit</header><text>The amount determined under subparagraph (A) with respect to a new advanced lean burn technology motor vehicle shall be increased by the conservation credit amount determined in accordance with the following table:</text> <table table-type="subformat-2-Flush-Hang-Box-Right-Col-Fig" align-to-level="section" frame="none" line-rules="no-gen" rule-weights="0.0.0.4.0.0" blank-lines-before="1" subformat="S6211"> <tgroup cols="2"><colspec colname="col1" coldef="txt" min-data-value="0" colwidth="275" colsep="0"/><colspec colname="col2" coldef="txt" min-data-value="0" colwidth="100" colsep="0"/><thead> <row><entry colname="I49" align="left" rowsep="0"><bold>In the case of a vehicle which achieves a lifetime fuel savings (expressed in gallons of gasoline) of—</bold></entry><entry colname="I50" align="right" rowsep="0"><bold>The conservation credit amount is—</bold></entry></row></thead> <tbody> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">At least 1,200 but less than 1,800</entry><entry colname="I07" align="right" rowsep="0">$250</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">At least 1,800 but less than 2,400</entry><entry colname="I07" align="right" rowsep="0">$500</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">At least 2,400 but less than 3,000</entry><entry colname="I07" align="right" rowsep="0">$750</entry></row> <row><entry colname="I15" align="left" rowsep="0" stub-definition="txt-ldr">At least 3,000</entry><entry colname="I07" align="right" rowsep="0">$1,000.</entry></row></tbody></tgroup></table></subparagraph></paragraph> <paragraph id="HA74DD8BE0D0D415E85A38191E891C1E3"><enum>(3)</enum><header>New advanced lean burn technology motor vehicle</header><text>For purposes of this subsection, the term <term>new advanced lean burn technology motor vehicle</term> means a passenger automobile or a light truck—</text> <subparagraph id="H92A7E9BE454D40E099F510F033D0FF2"><enum>(A)</enum><text>with an internal combustion engine which—</text> <clause id="HAE05E41D7ED54C29A9AE593753C7DB"><enum>(i)</enum><text>is designed to operate primarily using more air than is necessary for complete combustion of the fuel,</text></clause> <clause id="H8C6596BAAA0D4AEA8F947E866700E9E"><enum>(ii)</enum><text>incorporates direct injection,</text></clause> <clause id="HC23C82597EEE429AA87BC3B45880BA61"><enum>(iii)</enum><text>achieves at least 125 percent of the 2002 model year city fuel economy,</text></clause> <clause id="H0E70A49FE2D844CB991F2800D70085FA"><enum>(iv)</enum><text>for 2004 and later model vehicles, has received a certificate that such vehicle meets or exceeds—</text> <subclause id="HA598CAAA5825482990F74272F4369251"><enum>(I)</enum><text>in the case of a vehicle having a gross vehicle weight rating of 6,000 pounds or less, the Bin 5 Tier II emission standard established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the <act-name parsable-cite="CAA">Clean Air Act</act-name> for that make and model year vehicle, and</text></subclause> <subclause id="H0672C9628C7E4B01A432C721E4661109"><enum>(II)</enum><text>in the case of a vehicle having a gross vehicle weight rating of more than 6,000 pounds but not more than 8,500 pounds, the Bin 8 Tier II emission standard which is so established.</text></subclause></clause></subparagraph> <subparagraph id="H5303A85C957E4638A648B78CD194114F"><enum>(B)</enum><text>the original use of which commences with the taxpayer,</text></subparagraph> <subparagraph id="H582681C807A142DAB8FC8F007065A76C"><enum>(C)</enum><text>which is acquired for use or lease by the taxpayer and not for resale, and</text></subparagraph> <subparagraph id="H8E048E0891FD49019663221128C14C9E"><enum>(D)</enum><text>which is made by a manufacturer.</text></subparagraph></paragraph> <paragraph id="H638461FE95074197B9DCCF6B30E36B34"><enum>(4)</enum><header>Lifetime fuel savings</header><text>For purposes of this subsection, the term <term>lifetime fuel savings</term> means, in the case of any new advanced lean burn technology motor vehicle, an amount equal to the excess (if any) of—</text> <subparagraph id="H5FE9006A79CA4880A0FB8E7F131C4D28"><enum>(A)</enum><text>120,000 divided by the 2002 model year city fuel economy for the vehicle inertia weight class, over</text></subparagraph> <subparagraph id="HD7DC8BEBD8444A49AC089B9D00E040D3"><enum>(B)</enum><text>120,000 divided by the city fuel economy for such vehicle.</text></subparagraph></paragraph></subsection> <subsection id="H95126063A993474AB1242287076068D5"><enum>(d)</enum><header>New qualified hybrid motor vehicle credit</header> <paragraph id="H1D83C2226D9747C683BA6B50DA1C2D8E"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a), the new qualified hybrid motor vehicle credit determined under this subsection with respect to a new qualified hybrid motor vehicle placed in service by the taxpayer during the taxable year is the credit amount determined under paragraph (2).</text></paragraph> <paragraph id="H548CCD9C10DA4544807384B79BF51BF2"><enum>(2)</enum><header>Credit amount</header> <subparagraph id="H41ED2FA4A05148EF98BD814D2800C5FE"><enum>(A)</enum><header>Credit amount for passenger automobiles and light trucks</header><text>In the case of a new qualified hybrid motor vehicle which is a passenger automobile or light truck and which has a gross vehicle weight rating of not more than 8,500 pounds, the amount determined under this paragraph is the sum of the amounts determined under clauses (i) and (ii).</text> <clause id="H4AD42C2031C34233A62E4FEFC8E96EE"><enum>(i)</enum><header>Fuel economy</header><text>The amount determined under this clause is the amount which would be determined under subsection (c)(2)(A) if such vehicle were a vehicle referred to in such subsection.</text></clause> <clause id="H0AB45943516B44808CC7BF47009B2F6F"><enum>(ii)</enum><header>Conservation credit</header><text>The amount determined under this clause is the amount which would be determined under subsection (c)(2)(B) if such vehicle were a vehicle referred to in such subsection.</text></clause></subparagraph> <subparagraph id="H2935F6F09BCB4DBDB89D3BDA6FCA60A9"><enum>(B)</enum><header>Credit amount for other motor vehicles</header> <clause id="H02DFF73E3DBB408F81E92E43F7AB3231"><enum>(i)</enum><header>In general</header><text>In the case of any new qualified hybrid motor vehicle to which subparagraph (A) does not apply, the amount determined under this paragraph is the amount equal to the applicable percentage of the qualified incremental hybrid cost of the vehicle as certified under clause (v).</text></clause> <clause id="H3D7CF5967B9245ABBC8425CA126F30E6"><enum>(ii)</enum><header>Applicable percentage</header><text>For purposes of clause (i), the applicable percentage is—</text> <subclause id="H17E7B9EC75A046FEA59F90CEFE71F9E"><enum>(I)</enum><text>20 percent if the vehicle achieves an increase in city fuel economy relative to a comparable vehicle of at least 30 percent but less than 40 percent,</text></subclause> <subclause id="H027CC48D39D842F2AE2344523C7EFA92"><enum>(II)</enum><text>30 percent if the vehicle achieves such an increase of at least 40 percent but less than 50 percent, and</text></subclause> <subclause id="HEA46936129474E319E12E5621F593EF6"><enum>(III)</enum><text>40 percent if the vehicle achieves such an increase of at least 50 percent.</text></subclause></clause> <clause id="HB056E39541E54AE0A37EF3CAD0BD9596"><enum>(iii)</enum><header>Qualified incremental hybrid cost</header><text>For purposes of this subparagraph, the qualified incremental hybrid cost of any vehicle is equal to the amount of the excess of the manufacturer’s suggested retail price for such vehicle over such price for a comparable vehicle, to the extent such amount does not exceed—</text> <subclause id="H2469336599E94E10B243C0708C4D79D"><enum>(I)</enum><text>$7,500, if such vehicle has a gross vehicle weight rating of not more than 14,000 pounds,</text></subclause> <subclause id="H2C0A8A10F7554B49835100A81C19003B"><enum>(II)</enum><text>$15,000, if such vehicle has a gross vehicle weight rating of more than 14,000 pounds but not more than 26,000 pounds, and</text></subclause> <subclause id="H30FECCBE1F504AE39C4E9B39F5738EF4"><enum>(III)</enum><text>$30,000, if such vehicle has a gross vehicle weight rating of more than 26,000 pounds.</text></subclause></clause> <clause id="H8BABF8CAA614431FA37909B41158FB80"><enum>(iv)</enum><header>Comparable vehicle</header><text>For purposes of this subparagraph, the term <term>comparable vehicle</term> means, with respect to any new qualified hybrid motor vehicle, any vehicle which is powered solely by a gasoline or diesel internal combustion engine and which is comparable in weight, size, and use to such vehicle.</text></clause> <clause id="HD42934F64B3F43C885083D1C0020AFDA"><enum>(v)</enum><header>Certification</header><text>A certification described in clause (i) shall be made by the manufacturer and shall be determined in accordance with guidance prescribed by the Secretary. Such guidance shall specify procedures and methods for calculating fuel economy savings and incremental hybrid costs.</text></clause></subparagraph></paragraph> <paragraph id="H80A800B4C02449B4ACFC7C69D8CB9CEC"><enum>(3)</enum><header>New qualified hybrid motor vehicle</header><text>For purposes of this subsection—</text> <subparagraph id="HB0A45CB38412480D96C6B697FABFC2C"><enum>(A)</enum><header>In general</header><text>The term <term>new qualified hybrid motor vehicle</term> means a motor vehicle—</text> <clause id="H2F2F2492487244BA8373D5338B3EF683"><enum>(i)</enum><text>which draws propulsion energy from onboard sources of stored energy which are both—</text> <subclause id="H36CFC556E3A14A76AAD2F021FAF34544"><enum>(I)</enum><text>an internal combustion or heat engine using consumable fuel, and</text></subclause> <subclause id="H865FC56AA11445C4A872899485EEE2D"><enum>(II)</enum><text>a rechargeable energy storage system,</text></subclause></clause> <clause id="H73EEA37A656542A48066FD4227AC5D18"><enum>(ii)</enum><text>which, in the case of a vehicle to which paragraph (2)(A) applies, has received a certificate of conformity under the <act-name parsable-cite="CAA">Clean Air Act</act-name> and meets or exceeds the equivalent qualifying California low emission vehicle standard under section 243(e)(2) of the <act-name parsable-cite="CAA">Clean Air Act</act-name> for that make and model year, and</text> <subclause id="H0DA51CFAD1E64F3694BA792E004B00A3"><enum>(I)</enum><text>in the case of a vehicle having a gross vehicle weight rating of 6,000 pounds or less, the Bin 5 Tier II emission standard established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the <act-name parsable-cite="CAA">Clean Air Act</act-name> for that make and model year vehicle, and</text></subclause> <subclause id="H1784AAB7479144138F0438E48DEE96FE"><enum>(II)</enum><text>in the case of a vehicle having a gross vehicle weight rating of more than 6,000 pounds but not more than 8,500 pounds, the Bin 8 Tier II emission standard which is so established,</text></subclause></clause> <clause id="H0E125CAD7B4149338E00B02B93062C73"><enum>(iii)</enum><text>which has a maximum available power of at least—</text> <subclause id="H26DF6FFA6F28460E9C7DBAC6C03857BE"><enum>(I)</enum><text>4 percent in the case of a vehicle to which paragraph (2)(A) applies,</text></subclause> <subclause id="H2EEEFB272B8F4F7AB6C5EBE0CB3B5C15"><enum>(II)</enum><text>10 percent in the case of a vehicle which has a gross vehicle weight rating or more than 8,500 pounds and not than 14,000 pounds, and</text></subclause> <subclause id="HA3D7FB043A344F718B4C2B2D3C17AA6E"><enum>(III)</enum><text>15 percent in the case of a vehicle in excess of 14,000 pounds,</text></subclause></clause> <clause id="H1CBBC88A6ED9433B95815E4DDDA64341"><enum>(iv)</enum><text>which, in the case of a vehicle to which paragraph (2)(B) applies, has an internal combustion or heat engine which has received a certificate of conformity under the <act-name parsable-cite="CAA">Clean Air Act</act-name> as meeting the emission standards set in the regulations prescribed by the Administrator of the Environmental Protection Agency for 2004 through 2007 model year diesel heavy duty engines or ottocycle heavy duty engines, as applicable,</text></clause> <clause id="HAB7FB675ACCF44CEB0AE8CBC9CC19BAA"><enum>(v)</enum><text>the original use of which commences with the taxpayer,</text></clause> <clause id="H3FD6114FC44D4643B23C520024616C1F"><enum>(vi)</enum><text>which is acquired for use or lease by the taxpayer and not for resale, and</text></clause> <clause id="HA419F62E499640B2B668DAA23E73D543"><enum>(vii)</enum><text>which is made by a manufacturer.</text></clause><continuation-text continuation-text-level="subparagraph">Such term shall not include any vehicle which is not a passenger automobile or light truck if such vehicle has a gross vehicle weight rating of less than 8,500 pounds.</continuation-text></subparagraph> <subparagraph id="H9CD4890E424E439CBBA2800005B1D845"><enum>(B)</enum><header>Consumable fuel</header><text>For purposes of subparagraph (A)(i)(I), the term <term>consumable fuel</term> means any solid, liquid, or gaseous matter which releases energy when consumed by an auxiliary power unit.</text></subparagraph> <subparagraph id="H68C924D9A0A7417B8B92548C80B04335"><enum>(C)</enum><header>Maximum available power</header> <clause id="H0554DC441D5B4754A1C213A0BB603DEC"><enum>(i)</enum><header>Certain passenger automobiles and light trucks</header><text>In the case of a vehicle to which paragraph (2)(A) applies, the term <term>maximum available power</term> means the maximum power available from the rechargeable energy storage system, during a standard 10 second pulse power or equivalent test, divided by such maximum power and the SAE net power of the heat engine.</text></clause> <clause id="H24111065F2E342FFA287E82032D30423"><enum>(ii)</enum><header>Other motor vehicles</header><text>In the case of a vehicle to which paragraph (2)(B) applies, the term <term>maximum available power</term> means the maximum power available from the rechargeable energy storage system, during a standard 10 second pulse power or equivalent test, divided by the vehicle’s total traction power. For purposes of the preceding sentence, the term <term>total traction power</term> means the sum of the peak power from the rechargeable energy storage system and the heat engine peak power of the vehicle, except that if such storage system is the sole means by which the vehicle can be driven, the total traction power is the peak power of such storage system.</text></clause></subparagraph></paragraph></subsection> <subsection id="HFB713C8C696547F08E1F7B00C820EA26"><enum>(e)</enum><header>New qualified alternative fuel motor vehicle credit</header> <paragraph id="H6F86B7B763CA4A3096FD4CBE2EAB04D0"><enum>(1)</enum><header>Allowance of credit</header><text>Except as provided in paragraph (5), the new qualified alternative fuel motor vehicle credit determined under this subsection is an amount equal to the applicable percentage of the incremental cost of any new qualified alternative fuel motor vehicle placed in service by the taxpayer during the taxable year.</text></paragraph> <paragraph id="HC9D0514823D4421C9CF2E9D0FD00A43D"><enum>(2)</enum><header>Applicable percentage</header><text>For purposes of paragraph (1), the applicable percentage with respect to any new qualified alternative fuel motor vehicle is—</text> <subparagraph id="HE776FE5A6F11473A00838F232BBD84"><enum>(A)</enum><text>40 percent, plus</text></subparagraph> <subparagraph id="H5D2F4B14FAF245D1004786F89BD417B9"><enum>(B)</enum><text>30 percent, if such vehicle—</text> <clause id="H46CB601B305A4F79B67963A3E33509C2"><enum>(i)</enum><text>has received a certificate of conformity under the <act-name parsable-cite="CAA">Clean Air Act</act-name> and meets or exceeds the most stringent standard available for certification under the <act-name parsable-cite="CAA">Clean Air Act</act-name> for that make and model year vehicle (other than a zero emission standard), or</text></clause> <clause id="H3A4445C3A0A545CCB5FA98AA85C67E24"><enum>(ii)</enum><text>has received an order certifying the vehicle as meeting the same requirements as vehicles which may be sold or leased in California and meets or exceeds the most stringent standard available for certification under the State laws of California (enacted in accordance with a waiver granted under section 209(b) of the <act-name parsable-cite="CAA">Clean Air Act</act-name>) for that make and model year vehicle (other than a zero emission standard).</text></clause></subparagraph><continuation-text continuation-text-level="paragraph">For purposes of the preceding sentence, in the case of any new qualified alternative fuel motor vehicle which has a gross vehicle weight rating of more than 14,000 pounds, the most stringent standard available shall be such standard available for certification on the date of the enactment of the Energy Tax Policy Act of 2003.</continuation-text></paragraph> <paragraph id="H309D0494B72E4B92A877E933D340F0CE"><enum>(3)</enum><header>Incremental cost</header><text>For purposes of this subsection, the incremental cost of any new qualified alternative fuel motor vehicle is equal to the amount of the excess of the manufacturer’s suggested retail price for such vehicle over such price for a gasoline or diesel fuel motor vehicle of the same model, to the extent such amount does not exceed—</text> <subparagraph id="H3475A40054EA4AA9BAB778BB76DCE1A"><enum>(A)</enum><text>$5,000, if such vehicle has a gross vehicle weight rating of not more than 8,500 pounds,</text></subparagraph> <subparagraph id="H5C5B46F4E3754BC0A2E9E1AD10EEEFC9"><enum>(B)</enum><text>$10,000, if such vehicle has a gross vehicle weight rating of more than 8,500 pounds but not more than 14,000 pounds,</text></subparagraph> <subparagraph id="HA27421CFE982417500B3715E3542136B"><enum>(C)</enum><text>$25,000, if such vehicle has a gross vehicle weight rating of more than 14,000 pounds but not more than 26,000 pounds, and</text></subparagraph> <subparagraph id="H386F4374F3AC492C830609EC575E75F9"><enum>(D)</enum><text>$40,000, if such vehicle has a gross vehicle weight rating of more than 26,000 pounds.</text></subparagraph></paragraph> <paragraph id="HE15C905301794390A7901E4381F006B"><enum>(4)</enum><header>New qualified alternative fuel motor vehicle</header><text>For purposes of this subsection—</text> <subparagraph id="HD472D6678C7D4F228378C61854ECAF42"><enum>(A)</enum><header>In general</header><text>The term <term>new qualified alternative fuel motor vehicle</term> means any motor vehicle—</text> <clause id="HA37DE770CF9D468B9358B568D4A36D05"><enum>(i)</enum><text>which is only capable of operating on an alternative fuel,</text></clause> <clause id="H522692BE48254065A49C3DE9E765B8B5"><enum>(ii)</enum><text>the original use of which commences with the taxpayer,</text></clause> <clause id="H300B1E57576C4447982D255690142926"><enum>(iii)</enum><text>which is acquired by the taxpayer for use or lease, but not for resale, and</text></clause> <clause id="HE8AD5F1C80264EBEBD003204B43771EE"><enum>(iv)</enum><text>which is made by a manufacturer.</text></clause></subparagraph> <subparagraph id="HDC526DA6A6734625A321C3A2493E515C"><enum>(B)</enum><header>Alternative fuel</header><text>The term <term>alternative fuel</term> means compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, and any liquid at least 85 percent of the volume of which consists of methanol.</text></subparagraph></paragraph> <paragraph id="HD06756E176A2420694F3C6CCA693C7F"><enum>(5)</enum><header>Credit for mixed-fuel vehicles</header> <subparagraph id="HBA956DDFE0DF479E96C497EF864400A0"><enum>(A)</enum><header>In general</header><text>In the case of a mixed-fuel vehicle placed in service by the taxpayer during the taxable year, the credit determined under this subsection is an amount equal to—</text> <clause id="H990C411567474A75B3B7B08309282900"><enum>(i)</enum><text>in the case of a 75/25 mixed-fuel vehicle, 70 percent of the credit which would have been allowed under this subsection if such vehicle was a qualified alternative fuel motor vehicle, and</text></clause> <clause id="H4E6554C6C89D4EAFBC16CD5636E300B5"><enum>(ii)</enum><text>in the case of a 90/10 mixed-fuel vehicle, 90 percent of the credit which would have been allowed under this subsection if such vehicle was a qualified alternative fuel motor vehicle.</text></clause></subparagraph> <subparagraph id="HEA67B93C3CBD45790079DE2B2D5CBF08"><enum>(B)</enum><header>Mixed-fuel vehicle</header><text>For purposes of this subsection, the term <term>mixed-fuel vehicle</term> means any motor vehicle described in subparagraph (C) or (D) of paragraph (3), which—</text> <clause id="HECFFF784FB544E13A801C53548E64E71"><enum>(i)</enum><text>is certified by the manufacturer as being able to perform efficiently in normal operation on a combination of an alternative fuel and a petroleum-based fuel,</text></clause> <clause id="HB638681B8912433B90C9CECE900EEB5"><enum>(ii)</enum><text>either—</text> <subclause id="H608F13E3AE0C4AD9A5C53EF1ECEAEEE"><enum>(I)</enum><text>has received a certificate of conformity under the <act-name parsable-cite="CAA">Clean Air Act</act-name>, or</text></subclause> <subclause id="H67A2718F58DF4F72B5ED7595977FEB74"><enum>(II)</enum><text>has received an order certifying the vehicle as meeting the same requirements as vehicles which may be sold or leased in California and meets or exceeds the low emission vehicle standard under <external-xref legal-doc="cfr" parsable-cite="cfr/40/88.105">section 88.105–94</external-xref> of title 40, Code of Federal Regulations, for that make and model year vehicle,</text></subclause></clause> <clause id="H47EDE3E4BF564D59A14D7B4595586675"><enum>(iii)</enum><text>the original use of which commences with the taxpayer,</text></clause> <clause id="H5AF176103A5B4856AA00B071B6C8CE40"><enum>(iv)</enum><text>which is acquired by the taxpayer for use or lease, but not for resale, and</text></clause> <clause id="H696E40CE7BBD4E648292E739743D3258"><enum>(v)</enum><text>which is made by a manufacturer.</text></clause></subparagraph> <subparagraph id="HC4CE3B74E35848BDBDAB8924E8DD3439"><enum>(C)</enum><header>75/25 mixed-fuel vehicle</header><text>For purposes of this subsection, the term <term>75/25 mixed-fuel vehicle</term> means a mixed-fuel vehicle which operates using at least 75 percent alternative fuel and not more than 25 percent petroleum-based fuel.</text></subparagraph> <subparagraph id="H02243BF9715441AD93BA7FEEB6DE87AC"><enum>(D)</enum><header>90/10 mixed-fuel vehicle</header><text>For purposes of this subsection, the term <term>90/10 mixed-fuel vehicle</term> means a mixed-fuel vehicle which operates using at least 90 percent alternative fuel and not more than 10 percent petroleum-based fuel.</text></subparagraph></paragraph></subsection> <subsection id="H5D137A6BD9D444C4ACFD97692CE3198D"><enum>(f)</enum><header>Limitation on number of new qualified hybrid and advanced lean-burn technology vehicles eligible for credit</header> <paragraph id="H79CC73379D5344D390A342100A8B9B4"><enum>(1)</enum><header>In general</header><text>In the case of a qualified vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (c) or (d) shall be allowed.</text></paragraph> <paragraph id="H633E8236B43D4019B3AC88BFE44B4E11"><enum>(2)</enum><header>Phaseout period</header><text>For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of qualified vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after the date of the enactment of this section is at least 80,000.</text></paragraph> <paragraph id="H781E461C91184F7E8606F1A38B69A500"><enum>(3)</enum><header>Applicable percentage</header><text>For purposes of paragraph (1), the applicable percentage is—</text> <subparagraph id="H60715981C9824A3E99B26FE91252DD60"><enum>(A)</enum><text>50 percent for the first 2 calendar quarters of the phaseout period,</text></subparagraph> <subparagraph id="H12DB7FE2A2024AB98CDADACFF284A0A1"><enum>(B)</enum><text>25 percent for the 3d and 4th calendar quarters of the phaseout period, and</text></subparagraph> <subparagraph id="HE78EB7A2EC7245B58BC8A6976BF4971C"><enum>(C)</enum><text>0 percent for each calendar quarter thereafter.</text></subparagraph></paragraph> <paragraph id="HFDB9FB5921A84862804E5944D58D2097"><enum>(4)</enum><header>Controlled groups</header> <subparagraph id="HDC15EBD129B84C7CA1C91ED57E973E"><enum>(A)</enum><header>In general</header><text>For purposes of this subsection, all persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as a single manufacturer.</text></subparagraph> <subparagraph id="H17F54D29240448A6A36700252D1BBB45"><enum>(B)</enum><header>Inclusion of foreign corporations</header><text>For purposes of subparagraph (A), in applying subsections (a) and (b) of section 52 to this section, section 1563 shall be applied without regard to subsection (b)(2)(C) thereof.</text></subparagraph></paragraph> <paragraph id="HF0358303C02645F7A777D6FF35E71200"><enum>(5)</enum><header>Qualified vehicle</header><text>For purposes of this subsection, the term <term>qualified vehicle</term> means any new qualified hybrid motor vehicle and any new advanced lean burn technology motor vehicle.</text></paragraph></subsection> <subsection id="H343F49066CFB43348D71DEEB2F4CABF3"><enum>(g)</enum><header>Limitation based on amount of tax</header><text>The credit allowed under subsection (a) for the taxable year shall not exceed the excess of—</text> <paragraph id="H0B5EB51E01614064B49FCB98885D5B22"><enum>(1)</enum><text>the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over</text></paragraph> <paragraph id="H88758CBA627C4981B10126E33C2CE032"><enum>(2)</enum><text>the sum of the credits allowable under subpart A and sections 27 and 30 for the taxable year.</text></paragraph></subsection> <subsection id="HDD6DF02ED87D4EED86BEE05377C0F320"><enum>(h)</enum><header>Other definitions and special rules</header><text>For purposes of this section—</text> <paragraph id="HABBE9B568C22466C8033DFA15C2E0DB"><enum>(1)</enum><header>Motor vehicle</header><text>The term <term>motor vehicle</term> has the meaning given such term by section 30(c)(2).</text></paragraph> <paragraph id="H80EC62FCAE0E47A29170867F8CCE3BDE"><enum>(2)</enum><header>Other terms</header><text>The terms <term>automobile</term>, <term>passenger automobile</term>, <term>light truck</term>, and <term>manufacturer</term> have the meanings given such terms in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7521">42 U.S.C. 7521 et seq.</external-xref>).</text></paragraph> <paragraph id="H7F07B1A3986A4381A61553F6F57FFF44"><enum>(3)</enum><header>2002 model year city fuel economy</header> <subparagraph id="H85EE196E13584F6EA3D83F9C8B094E01"><enum>(A)</enum><header>In general</header><text>The 2002 model year city fuel economy with respect to a vehicle shall be determined in accordance with the following tables:</text> <clause id="HB9842FEBB6524DC0AB982E8DC05B1FA2"><enum>(i)</enum><text>In the case of a passenger automobile:</text> </clause> <clause id="H96EA9365034140748F4883AD00733368"><enum>(ii)</enum><text>In the case of a light truck:</text> </clause></subparagraph> <subparagraph id="HCF742936EBEE45FE9821FFF989009FE6"><enum>(B)</enum><header>Vehicle inertia weight class</header><text>For purposes of subparagraph (A), the term <term>vehicle inertia weight class</term> has the same meaning as when defined in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7521">42 U.S.C. 7521 et seq.</external-xref>).</text></subparagraph></paragraph> <paragraph id="HE3170374BA354AA5BA23E61F7C004156"><enum>(4)</enum><header>Fuel economy</header><text>Fuel economy with respect to any vehicle shall be measured under rules similar to the rules under section 4064(c).</text></paragraph> <paragraph id="H601883C1A9EB42618F10602D6FB4DD66"><enum>(5)</enum><header>Reduction in basis</header><text>For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this paragraph) result from such expenditure shall be reduced by the amount of the credit so allowed.</text></paragraph> <paragraph id="H67A5C89E7D9347A5A3FBB0F39739F33F"><enum>(6)</enum><header>No double benefit</header><text>The amount of any deduction or credit allowable under this chapter (other than the credits allowable under this section and section 30) shall be reduced by the amount of credit allowed under subsection (a) for such vehicle for the taxable year.</text></paragraph> <paragraph id="H713CD147FF3A4FDFB049F2CE916CA8F9"><enum>(7)</enum><header>Recapture</header><text>The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit (including recapture in the case of a lease period of less than the economic life of a vehicle).</text></paragraph> <paragraph id="H97E243043037411C90A282BE646AFA6"><enum>(8)</enum><header>Property used outside United States, etc., not qualified</header><text>No credit shall be allowed under subsection (a) with respect to any property referred to in section 50(b) or with respect to the portion of the cost of any property taken into account under section 179.</text></paragraph> <paragraph id="H2D7376774B6D40EE8998E28C8D93BCE"><enum>(9)</enum><header>Election not to take credit</header><text>No credit shall be allowed under subsection (a) for any vehicle if the taxpayer elects to not have this section apply to such vehicle.</text></paragraph> <paragraph id="HDC8AC905F2414AB4BA849F9429532652"><enum>(10)</enum><header>Business carryovers allowed</header><text>If the credit allowable under subsection (a) for a taxable year exceeds the limitation under subsection (g) for such taxable year, such excess (to the extent of the credit allowable with respect to property subject to the allowance for depreciation) shall be allowed as a credit carryback and carryforward under rules similar to the rules of section 39.</text></paragraph> <paragraph id="H8BD09635DCDF466D8B4E78A79E69C323"><enum>(11)</enum><header>Interaction with motor vehicle safety standards</header><text>Unless otherwise provided in this section, a motor vehicle shall not be considered eligible for a credit under this section unless such vehicle is in compliance with the motor vehicle safety provisions of sections 30101 through 30169 of title 49, United States Code.</text></paragraph></subsection> <subsection id="H7BC29636CF044FDD9D7F9C2945B51F21"><enum>(i)</enum><header>Regulations</header> <paragraph id="H18E408FC16074932B6EAC9CBFEEB0082"><enum>(1)</enum><header>In general</header><text>The Secretary shall promulgate such regulations as necessary to carry out the provisions of this section.</text></paragraph> <paragraph id="H63A6B1F8EA594D6EAB016CEE8F2878A4"><enum>(2)</enum><header>Determination of motor vehicle eligibility</header><text>The Secretary, after coordination with the Secretary of Transportation and the Administrator of the Environmental Protection Agency, shall prescribe such regulations as necessary to determine whether a motor vehicle meets the requirements to be eligible for a credit under this section.</text></paragraph></subsection> <subsection id="H3F5D2E638DAB4D9C8177F5A69479CAF"><enum>(j)</enum><header>Termination</header><text>This section shall not apply to any property placed in service after—</text> <paragraph id="H825E7BD723F9400DAD11B99B00847656"><enum>(1)</enum><text>in the case of a new qualified alternative fuel motor vehicle, December 31, 2006,</text></paragraph> <paragraph id="H428F059558544A40AEA925A882D56AA"><enum>(2)</enum><text>in the case of a new advanced lean burn technology motor vehicle or a new qualified hybrid motor vehicle, December 31, 2008, and</text></paragraph> <paragraph id="HBDD0A1F0DA404A3A003077C91C826E2C"><enum>(3)</enum><text>in the case of a new qualified fuel cell motor vehicle, December 31, 2012.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HAF13AF10FE7247BAB0970257E6DBE093"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="HC9F40B2A7DBB4E5FB5B999D489D9CB2"><enum>(1)</enum><text>Section 30(d) (relating to special rules) is amended by adding at the end the following new paragraphs:</text> <quoted-block id="H5682E44117544C4AA208E896FF58D3EC"> <paragraph id="H54E3CC719F2E47D494594BFAD9235E8C"><enum>(5)</enum><header>No double benefit</header><text>No credit shall be allowed under this section for any motor vehicle for which a credit is also allowed under section 30B.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H0103BDDEE779450383B584D2FD8CAA7F"><enum>(2)</enum><text>Section 1016(a), as amended by this Act, is amended by striking <quote>and</quote> at the end of paragraph (31), by striking the period at the end of paragraph (32) and inserting <quote>, and</quote>, and by adding at the end the following:</text> <quoted-block id="HD45D999DBE604391BB22B3B24900A0C3"> <paragraph id="H2910E4FE083245298C0000C2B5D98055"><enum>(33)</enum><text>to the extent provided in section 30B(h)(5).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H1D6C99908C8A4DBFA39DEBB4DD6B38EC"><enum>(3)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/6501">Section 6501(m)</external-xref> is amended by inserting <quote>30B(h)(9),</quote> after <quote>30(d)(4),</quote>.</text></paragraph> <paragraph id="H09AF16D8C9EA4373BDF33EF55B479205"><enum>(4)</enum><text>The table of sections for subpart B of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 30A the following:</text> <quoted-block style="OLC" id="H1D1A0B5D79E549A79E43001628268F5E"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 30B. Alternative motor vehicle credit</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H057D76D7293B455F88EC4DA2D6A6DFC0"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.</text></subsection> <subsection id="HF4672FF979AF4509AC10D1987979FA9"><enum>(d)</enum><header>Sticker information required at retail sale</header> <paragraph id="HEBDC10EA04F34322BA2DC5717887F389"><enum>(1)</enum><header>In general</header><text>The Secretary of the Treasury shall issue regulations under which each qualified vehicle sold at retail shall display a notice—</text> <subparagraph id="HFFB442596DF445A28DCF8DC923E2CC00"><enum>(A)</enum><text>that such vehicle is a qualified vehicle, and</text></subparagraph> <subparagraph id="H956C5F2682744D0CB9BC00A904DCD158"><enum>(B)</enum><text>that the buyer may not benefit from the credit allowed under <external-xref legal-doc="usc" parsable-cite="usc/26/30B">section 30B</external-xref> of the Internal Revenue Code of 1986 if such buyer has insufficient tax liability.</text></subparagraph></paragraph> <paragraph id="HD2BB4EAD8F3B463AA17B53E26F1CA89"><enum>(2)</enum><header>Qualified vehicle</header><text>For purposes of paragraph (1), the term <term>qualified vehicle</term> means a vehicle with respect to which a credit is allowed under <external-xref legal-doc="usc" parsable-cite="usc/26/30B">section 30B</external-xref> of the Internal Revenue Code of 1986.</text></paragraph></subsection></section> <section id="H20D116828AAB471E9D007D1C263D6C2F"><enum>1319.</enum><header>Modifications of deduction for certain refueling property</header> <subsection id="H91B84EBEC0354B968BD0FB87CFF59D9C"><enum>(a)</enum><header>In general</header><text>Subsection (f) of <external-xref legal-doc="usc" parsable-cite="usc/26/179A">section 179A</external-xref> is amended to read as follows:</text> <quoted-block id="H87E2E48AF2B74F8F94B0562C0700B840"> <subsection id="H1D79DF10086B4C4482F62658E82BF27F"><enum>(f)</enum><header>Termination</header><text>This section shall not apply to any property placed in service—</text> <paragraph id="H81F56D97C1E34164B018896B730016E3"><enum>(1)</enum><text>in the case of property relating to hydrogen, after December 31, 2011, and</text></paragraph> <paragraph id="HAE6DFA45C2F040228E34A1BDAB625DEB"><enum>(2)</enum><text>in the case of any other property, after December 31, 2008.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H662F83F916EE42D180C490BD42637D4E"><enum>(b)</enum><header>Incentive for production of hydrogen at qualified clean-fuel vehicle refueling property</header><text>Section 179A(d) (defining qualified clean-fuel vehicle refueling property) is amended by adding at the end the following new flush sentence:</text> <quoted-block style="OLC" id="H99A40BAD1AF6412D92617E458FA1505D" display-inline="no-display-inline"><quoted-block-continuation-text quoted-block-continuation-text-level="subsection">In the case of clean-burning fuel which is hydrogen produced from another clean-burning fuel, paragraph (3)(A) shall be applied by substituting <quote>production, storage, or dispensing</quote> for <quote>storage or dispensing</quote> both places it appears.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HCD96CE818E6445139F0060BA0051C4A5"><enum>(c)</enum><header>Increase in location expenditures</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179A">Section 179A(b)(2)(A)(i)</external-xref> is amended by striking <quote>$100,000</quote> and inserting <quote>$150,000</quote>.</text></subsection> <subsection id="H40E8BFD6B5CB47BD84FCD8212243561D"><enum>(d)</enum><header>Nonbusiness use of qualified clean-fuel vehicle refueling property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179A">Section 179A(d)</external-xref> is amended by striking paragraph (1) and by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively.</text></subsection> <subsection id="HC75CA444D71F44A28BC9030040A07148"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.</text></subsection></section></part></subtitle> <subtitle id="HEBC6A0CA0D324069BD3B5CB2B23ED400"><enum>B</enum><header>Reliability</header> <section id="HD906A5D56FBF484681E1CD05E2CB381D"><enum>1321.</enum><header>Natural gas gathering lines treated as 7-YEAR property</header> <subsection id="HA4449EF513A841D4959E36BBE00DB63"><enum>(a)</enum><header>In general</header><text>Subparagraph (C) of section 168(e)(3) (relating to classification of certain property) is amended by striking <quote>and</quote> at the end of clause (i), by redesignating clause (ii) as clause (iii), and by inserting after clause (i) the following new clause:</text> <quoted-block id="H4F1990C91B874584819353ABD34CF63B"> <clause id="HFC27F82DA27B4EE29D96524C9D9E5B66"><enum>(ii)</enum><text>any natural gas gathering line, and</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H90E92C5F618F448CA97B65C8BD5F79FC"><enum>(b)</enum><header>Natural gas gathering line</header><text>Subsection (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/168">section 168</external-xref>, as amended by this Act, is amended by adding after paragraph (15) the following new paragraph:</text> <quoted-block id="HE1E4D5ABEE734D7AAAD2F6F15A2D9D0"> <paragraph id="H681E7E063AFB43A8BBCA1166B704075C"><enum>(16)</enum><header>Natural gas gathering line</header><text>The term <term>natural gas gathering line</term> means—</text> <subparagraph id="H4F4C393DC72548D1A328CA31B079C622"><enum>(A)</enum><text>the pipe, equipment, and appurtenances determined to be a gathering line by the Federal Energy Regulatory Commission, or</text></subparagraph> <subparagraph id="H1547731C05834758A35D426E5B1758C7"><enum>(B)</enum><text>the pipe, equipment, and appurtenances used to deliver natural gas from the wellhead or a commonpoint to the point at which such gas first reaches—</text> <clause id="H831E95E6CE7F4CBF00F8E754D189F5F0"><enum>(i)</enum><text>a gas processing plant,</text></clause> <clause id="H27FA86C3BFD44963BB87E487AFC9ACA0"><enum>(ii)</enum><text>an interconnection with a transmission pipeline for which a certificate as an interstate transmission pipeline has been issued by the Federal Energy Regulatory Commission,</text></clause> <clause id="H0E4EFD20A65F4581959EEDBE7E32628E"><enum>(iii)</enum><text>an interconnection with an intrastate transmission pipeline, or</text></clause> <clause id="H9E3833B0B4384CA19169DC17E0CDA681"><enum>(iv)</enum><text>a direct interconnection with a local distribution company, a gas storage facility, or an industrial consumer.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HE2A2A29C2457458E8ECBCB39E2BF80FF"><enum>(c)</enum><header>Alternative system</header><text>The table contained in <external-xref legal-doc="usc" parsable-cite="usc/26/168">section 168(g)(3)(B)</external-xref> is amended by inserting after the item relating to subparagraph (C)(i) the following:</text> <quoted-block style="OLC" id="H0183DEE961A14A00A522E6F8709B79B2" display-inline="no-display-inline"> <toc regeneration="no-regeneration"> <multi-column-toc-entry level="section"><toc-enum>(C)</toc-enum><level-header level="section">(ii)</level-header><target>14</target></multi-column-toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HB07C237ADB7949B5867B85F75CB0D996"><enum>(d)</enum><header>Alternative minimum tax exception</header><text>Subparagraph (B) of <external-xref legal-doc="usc" parsable-cite="usc/26/56">section 56(a)(1)</external-xref> is amended by inserting before the period the following: <quote>, or in section 168(e)(3)(C)(ii)</quote>.</text></subsection> <subsection id="H3259647B77294A64A46B2700C6DBB06B"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.</text></subsection></section> <section id="HD53C5AA1944C44118CEEBADBC33CD1B4"><enum>1322.</enum><header>Natural gas distribution lines treated as 15-year property</header> <subsection id="H50F65FF6BE86499D845FA7C0DAFDF8CD"><enum>(a)</enum><header>In general</header><text>Subparagraph (E) of section 168(e)(3) (relating to classification of certain property) is amended by striking <quote>and</quote> at the end of clause (ii), by striking the period at the end of clause (iii) and by inserting <quote>, and</quote>, and by adding at the end the following new clause:</text> <quoted-block id="H8795798D2478427CB1EAE45BAE899B"> <clause id="H1AA108C78C2C4F028BFC023100C68D7F"><enum>(iv)</enum><text>any natural gas distribution line.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H7D8E5B73633340629F83D028C28EBB54"><enum>(b)</enum><header>Alternative system</header><text>The table contained in <external-xref legal-doc="usc" parsable-cite="usc/26/168">section 168(g)(3)(B)</external-xref> is amended by inserting after the item relating to subparagraph (E)(iii) the following:</text> <quoted-block style="OLC" id="H43E5300D8B014025BE70BFF82814F2F4" display-inline="no-display-inline"> <toc regeneration="no-regeneration"> <multi-column-toc-entry level="section"><toc-enum>(E)</toc-enum><level-header level="section">(iv)</level-header><target>35</target></multi-column-toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H0AD4EBFE6DF64D3EA6927864C6B0048"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.</text></subsection></section> <section id="H4CDA18E7A38F4130B4E939AA11DD8DD2"><enum>1323.</enum><header>Electric transmission property treated as 15-year property</header> <subsection id="HE96B6C1D4B154B839D5368E128BABC48"><enum>(a)</enum><header>In general</header><text>Subparagraph (E) of section 168(e)(3) (relating to classification of certain property), as amended by this Act, is amended by striking <quote>and</quote> at the end of clause (iii), by striking the period at the end of clause (iv) and by inserting <quote>, and</quote>, and by adding at the end the following new clause:</text> <quoted-block id="H9B24E466AF4E4A0080CEB6853B68FED7"> <clause id="H58200DD83F0D4BE0B8D2B419E9EE9B59"><enum>(v)</enum><text>any section 1245 property (as defined in section 1245(a)(3)) used in the transmission at 69 or more kilovolts of electricity for sale the original use of which commences with the taxpayer after the date of the enactment of this clause.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H8EF5D4C8A10D49E998BC4200C8369417"><enum>(b)</enum><header>Alternative system</header><text>The table contained in <external-xref legal-doc="usc" parsable-cite="usc/26/168">section 168(g)(3)(B)</external-xref> is amended by inserting after the item relating to subparagraph (E)(iv) the following:</text> <quoted-block style="OLC" id="H7F310BC6F5D344958E44FCDD58069DE8" display-inline="no-display-inline"> <toc regeneration="no-regeneration"> <multi-column-toc-entry level="section"><toc-enum>(E)</toc-enum><level-header level="section">(v)</level-header><target>30</target></multi-column-toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H80F7BC015D26498F924D007093774D42"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act, in taxable years ending after such date.</text></subsection></section> <section id="HEEC9ED8ACB104158B2D81DF08ED4F9DE"><enum>1324.</enum><header>Expensing of capital costs incurred in complying with Environmental Protection Agency sulfur regulations</header> <subsection id="H85EE35F5DCDF4E3A9DC31E02AF4165CA"><enum>(a)</enum><header>In general</header><text>Part VI of subchapter B of chapter 1 (relating to itemized deductions for individuals and corporations), as amended by this Act, is amended by inserting after section 179B the following new section:</text> <quoted-block id="HE1D06959919B4EF9B55F288443FA654D"> <section id="H918BD8F13EC5469FB587AFD500967F7D"><enum>179C.</enum><header>Deduction for capital costs incurred in complying with Environmental Protection Agency sulfur regulations</header> <subsection id="H053A9C877C734952A21B006BDF6CE135"><enum>(a)</enum><header>Treatment as expenses</header><text>A small business refiner (as defined in section 45I(c)(1)) may elect to treat 75 percent of qualified capital costs (as defined in section 45I(c)(2)) which are paid or incurred by the taxpayer during the taxable year as expenses which are not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which paid or incurred.</text></subsection> <subsection id="H04FFA6577FA64C30AB56D65D0539B124"><enum>(b)</enum><header>Reduced percentage</header><text>In the case of a small business refiner with average daily domestic refinery runs for the 1-year period ending on December 31, 2002, in excess of 155,000 barrels, the number of percentage points described in subsection (a) shall be reduced (not below zero) by the product of such number (before the application of this subsection) and the ratio of such excess to 50,000 barrels.</text></subsection> <subsection id="H5893B7805F82435EA933F3C5ADD23351"><enum>(c)</enum><header>Basis reduction</header> <paragraph id="H753C9C0F6A8C4F5CAF195E731200A52E"><enum>(1)</enum><header>In general</header><text>For purposes of this title, the basis of any property shall be reduced by the portion of the cost of such property taken into account under subsection (a).</text></paragraph> <paragraph id="H94D0463CE12D4B638998D0EA201C3E1"><enum>(2)</enum><header>Ordinary income recapture</header><text>For purposes of section 1245, the amount of the deduction allowable under subsection (a) with respect to any property which is of a character subject to the allowance for depreciation shall be treated as a deduction allowed for depreciation under section 167.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> <quoted-block id="H8B09558EEBBC415FA8784DEB306E0000"> <subsection id="H8A9C4561F34F4093BE966FBF3C27C1C"><enum>(d)</enum><header>Coordination with other provisions</header><text>Section 280B shall not apply to amounts which are treated as expenses under this section.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H3CC794F5B282451C859712AE6FD9990"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="HEA0702FA0A094B929200F8C9A44D3BC3"><enum>(1)</enum><text>Section 263(a)(1), as amended by this Act, is amended by striking <quote>or</quote> at the end of subparagraph (H), by striking the period at the end of subparagraph (I) and inserting <quote>; or</quote>, and by adding at the end the following new subparagraph:</text> <quoted-block id="HFBB73CBB3C1443D7803B430746EE7569"> <subparagraph id="H79FFDD220012459D97004801D6C2B26B"><enum>(J)</enum><text>expenditures for which a deduction is allowed under section 179C.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H82B710C7BEE24D9EA7274C84E406A9E4"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/263A">Section 263A(c)(3)</external-xref> is amended by inserting <quote>179C,</quote> after <quote>section</quote>.</text></paragraph> <paragraph id="H404F46C0AEF44BCB8BD6AAA65DD5AF5B"><enum>(3)</enum><text>Section 312(k)(3)(B), as amended by this Act, is amended by striking <quote>or 179B</quote> each place it appears in the heading and text and inserting <quote>179B, or 179C</quote>.</text></paragraph> <paragraph id="HFADD9D8635014D279246E69419F01500"><enum>(4)</enum><text>Section 1016(a), as amended by this Act, is amended by striking <quote>and</quote> at the end of paragraph (32), by striking the period at the end of paragraph (33) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="HEF6D8F05493A430F96C18D32B12B156B"> <paragraph id="H29406E12B685435190ABC37E401CFA44"><enum>(34)</enum><text>to the extent provided in section 179C(c).</text></paragraph><after-quoted-block>. </after-quoted-block></quoted-block></paragraph> <paragraph id="H8EC1AC83C6814BE486AC51B493F6100"><enum>(5)</enum><text>Paragraphs (2)(C) and (3)(C) of section 1245(a), as amended by this Act, are each amended by inserting <quote>179C,</quote> after <quote>179B,</quote>.</text></paragraph> <paragraph id="H19B60E316E4F4E6EBB40E17DA0F24C2D"><enum>(6)</enum><text>The table of sections for part VI of subchapter B of chapter 1, as amended by this Act, is amended by inserting after the item relating to section 179B the following new item:</text> <quoted-block style="OLC" id="H49F1397B10414DA489012C47436CFCEC"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 179C. Deduction for capital costs incurred in complying with Environmental Protection Agency sulfur regulations</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HC96D756880EC410BA3A98FE040D22562"><enum>(c)</enum><header>Effective date</header><text>The amendment made by this section shall apply to expenses paid or incurred after December 31, 2002, in taxable years ending after such date.</text></subsection></section> <section id="HDE27434ACA884836A9E39DF6D23FDD00"><enum>1325.</enum><header>Credit for production of low sulfur diesel fuel</header> <subsection id="H951B1C5FA30D41809C90D646CB6546B8"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1 (relating to business-related credits), as amended by this Act, is amended by adding at the end the following new section:</text> <quoted-block id="H6DAC95F0811149E3B1D446003D732164"> <section id="H37A52683A0A84102875551D98C161E00"><enum>45I.</enum><header>Credit for production of low sulfur diesel fuel</header> <subsection id="H83ECCF3C01914B88B16994AF705D5900"><enum>(a)</enum><header>In general</header><text>For purposes of section 38, the amount of the low sulfur diesel fuel production credit determined under this section with respect to any facility of a small business refiner is an amount equal to 5 cents for each gallon of low sulfur diesel fuel produced during the taxable year by such small business refiner at such facility.</text></subsection> <subsection id="HD646468F763D4A58AEA7D68078CD8047"><enum>(b)</enum><header>Maximum credit</header> <paragraph id="HDAFB6F1275E34268B635E855B9006E26"><enum>(1)</enum><header>In general</header><text>The aggregate credit determined under subsection (a) for any taxable year with respect to any facility shall not exceed—</text> <subparagraph id="H21C725318CDF4F0AABC45DD6305E164D"><enum>(A)</enum><text>25 percent of the qualified capital costs incurred by the small business refiner with respect to such facility, reduced by</text></subparagraph> <subparagraph id="HB2BA26164F9D47448BDDD38CBE2BB04"><enum>(B)</enum><text>the aggregate credits determined under this section for all prior taxable years with respect to such facility.</text></subparagraph></paragraph> <paragraph id="HA8D84F5432CD455B94C043CE00E0945E"><enum>(2)</enum><header>Reduced percentage</header><text>In the case of a small business refiner with average daily domestic refinery runs for the 1-year period ending on December 31, 2002, in excess of 155,000 barrels, the number of percentage points described in paragraph (1) shall be reduced (not below zero) by the product of such number (before the application of this paragraph) and the ratio of such excess to 50,000 barrels.</text></paragraph></subsection> <subsection id="H7A08D6C46C93442CAE2C5821E3D2E318"><enum>(c)</enum><header>Definitions and special rule</header><text>For purposes of this section—</text> <paragraph id="H13146758382A491692DD6C46814D3DD3"><enum>(1)</enum><header>Small business refiner</header><text>The term <term>small business refiner</term> means, with respect to any taxable year, a refiner of crude oil—</text> <subparagraph id="HC62D90E5AAFC4F3F97406E00DD4FBB71"><enum>(A)</enum><text>with respect to which not more than 1,500 individuals are engaged in the refinery operations of the business on any day during such taxable year, and</text></subparagraph> <subparagraph id="H9DA4CF01F59A434280C3988EA234A9A4"><enum>(B)</enum><text>the average daily domestic refinery run or average retained production of which for all facilities of the taxpayer for the 1-year period ending on December 31, 2002, did not exceed 205,000 barrels.</text></subparagraph></paragraph> <paragraph id="HDFC56920AAAE42E794D2EF00002D3FF6"><enum>(2)</enum><header>Qualified capital costs</header><text>The term <term>qualified capital costs</term> means, with respect to any facility, those costs paid or incurred during the applicable period for compliance with the applicable EPA regulations with respect to such facility, including expenditures for the construction of new process operation units or the dismantling and reconstruction of existing process units to be used in the production of low sulfur diesel fuel, associated adjacent or offsite equipment (including tankage, catalyst, and power supply), engineering, construction period interest, and sitework.</text></paragraph> <paragraph id="HC4266549A8C04DAD84C61C183EC415F5"><enum>(3)</enum><header>Applicable EPA regulations</header><text>The term <term>applicable EPA regulations</term> means the Highway Diesel Fuel Sulfur Control Requirements of the Environmental Protection Agency.</text></paragraph> <paragraph id="HF3BACD62F69A4AFCBB96E2525500E200"><enum>(4)</enum><header>Applicable period</header><text>The term <term>applicable period</term> means, with respect to any facility, the period beginning on January 1, 2003, and ending on the earlier of the date which is 1 year after the date on which the taxpayer must comply with the applicable EPA regulations with respect to such facility or December 31, 2009.</text></paragraph> <paragraph id="H75A87779DE124FED91723F308C82E0E"><enum>(5)</enum><header>Low sulfur diesel fuel</header><text>The term <term>low sulfur diesel fuel</term> means diesel fuel with a sulfur content of 15 parts per million or less.</text></paragraph></subsection> <subsection id="H3CAA7F02AFB54B559C114CEB353E9E18"><enum>(d)</enum><header>Reduction in basis</header><text>For purposes of this subtitle, if a credit is determined under this section for any expenditure with respect to any property, the increase in basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so determined.</text></subsection> <subsection id="H55ABDF2D96424FADAFD14E39441C9D46"><enum>(e)</enum><header>Special rule for determination of refinery runs</header><text>For purposes this section and section 179C(b), in the calculation of average daily domestic refinery run or retained production, only refineries which on April 1, 2003, were refineries of the refiner or a related person (within the meaning of section 613A(d)(3)), shall be taken into account.</text></subsection> <subsection id="H33EDC692AA034DB18C352D7C7450EB16"><enum>(f)</enum><header>Certification</header> <paragraph id="H099109B017AE489C8B64F800B6347F70"><enum>(1)</enum><header>Required</header><text>No credit shall be allowed unless, not later than the date which is 30 months after the first day of the first taxable year in which the low sulfur diesel fuel production credit is allowed with respect to a facility, the small business refiner obtains certification from the Secretary, after consultation with the Administrator of the Environmental Protection Agency, that the taxpayer’s qualified capital costs with respect to such facility will result in compliance with the applicable EPA regulations.</text></paragraph> <paragraph id="HAF54BADDE631467DA11E6FE7E63500AF"><enum>(2)</enum><header>Contents of application</header><text>An application for certification shall include relevant information regarding unit capacities and operating characteristics sufficient for the Secretary, after consultation with the Administrator of the Environmental Protection Agency, to determine that such qualified capital costs are necessary for compliance with the applicable EPA regulations.</text></paragraph> <paragraph id="H66ED9E571B0F45B500EC71E49A258FB"><enum>(3)</enum><header>Review period</header><text>Any application shall be reviewed and notice of certification, if applicable, shall be made within 60 days of receipt of such application. In the event the Secretary does not notify the taxpayer of the results of such certification within such period, the taxpayer may presume the certification to be issued until so notified.</text></paragraph> <paragraph id="H3444D460DEE046419EDBE86471002B56"><enum>(4)</enum><header>Statute of limitations</header><text>With respect to the credit allowed under this section—</text> <subparagraph id="H51B6EE7C242347C899FDA62B00789011"><enum>(A)</enum><text>the statutory period for the assessment of any deficiency attributable to such credit shall not expire before the end of the 3-year period ending on the date that the review period described in paragraph (3) ends with respect to the taxpayer, and</text></subparagraph> <subparagraph id="H007677BB956D40D685181D40517F565D"><enum>(B)</enum><text>such deficiency may be assessed before the expiration of such 3-year period notwithstanding the provisions of any other law or rule of law which would otherwise prevent such assessment.</text></subparagraph></paragraph></subsection> <subsection id="HF7696484B008440BA1009D97C72C2538"><enum>(g)</enum><header>Cooperative organizations</header> <paragraph id="H2910CC143B314F129300F197F9F9FC53"><enum>(1)</enum><header>Apportionment of credit</header> <subparagraph id="HE6A140F32B9F49BABC2E049000D336A5"><enum>(A)</enum><header>In general</header><text>In the case of a cooperative organization described in section 1381(a), any portion of the credit determined under subsection (a) for the taxable year may, at the election of the organization, be apportioned among patrons eligible to share in patronage dividends on the basis of the quantity or value of business done with or for such patrons for the taxable year.</text></subparagraph> <subparagraph id="HA98717ABF21B4DB9BF98875BAF04C7F1"><enum>(B)</enum><header>Form and effect of election</header><text>An election under subparagraph (A) for any taxable year shall be made on a timely filed return for such year. Such election, once made, shall be irrevocable for such taxable year.</text></subparagraph></paragraph> <paragraph id="H15BF7F78A603428AAF92E1E2070784E"><enum>(2)</enum><header>Treatment of organizations and patrons</header> <subparagraph id="H697C14E9365547678FB065E1DFE64172"><enum>(A)</enum><header>Organizations</header><text>The amount of the credit not apportioned to patrons pursuant to paragraph (1) shall be included in the amount determined under subsection (a) for the taxable year of the organization.</text></subparagraph> <subparagraph id="H8A17E8D5AA8641FCA30500BCFCA32973"><enum>(B)</enum><header>Patrons</header><text>The amount of the credit apportioned to patrons pursuant to paragraph (1) shall be included in the amount determined under subsection (a) for the first taxable year of each patron ending on or after the last day of the payment period (as defined in section 1382(d)) for the taxable year of the organization or, if earlier, for the taxable year of each patron ending on or after the date on which the patron receives notice from the cooperative of the apportionment.</text></subparagraph></paragraph> <paragraph id="H81F27033749A46639D3ECEF8AEC8B61E"><enum>(3)</enum><header>Special rule</header><text>If the amount of a credit which has been apportioned to any patron under this subsection is decreased for any reason—</text> <subparagraph id="HB8CCD6F495A543DF899D9292EBF8C9EF"><enum>(A)</enum><text>such amount shall not increase the tax imposed on such patron, and</text></subparagraph> <subparagraph id="H785832FED56146E0B000E138CA2CEAB0"><enum>(B)</enum><text>the tax imposed by this chapter on such organization shall be increased by such amount.</text></subparagraph><continuation-text continuation-text-level="paragraph">The increase under subparagraph (B) shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter or for purposes of section 55.</continuation-text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H0954F4192B7948AF938F0765998E6D9E"><enum>(b)</enum><header>Credit made part of general business credit</header><text>Subsection (b) of section 38 (relating to general business credit), as amended by this Act, is amended by striking <quote>plus</quote> at the end of paragraph (17), by striking the period at the end of paragraph (18) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="HEEC6EAD2CB3C4F1400816B9CF879B689"> <paragraph id="H1D21977EBAF44DA882F07CFBFED9C6C"><enum>(19)</enum><text>in the case of a small business refiner, the low sulfur diesel fuel production credit determined under section 45I(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H7A1ED98959ED4819BD6BCB3712492870"><enum>(c)</enum><header>Denial of double benefit</header><text>Section 280C (relating to certain expenses for which credits are allowable) is amended by adding at the end the following new subsection:</text> <quoted-block id="HE85F0C55012B480BA41FDB61E202836D"> <subsection id="H694E66483AEE4CF1ADADC86E5802EE00"><enum>(d)</enum><header>Low sulfur diesel fuel production credit</header><text>No deduction shall be allowed for that portion of the expenses otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for the taxable year under section 45I(a).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H9577F1F9990C4B69BCBFDACE4294C45"><enum>(d)</enum><header>Basis adjustment</header><text>Section 1016(a) (relating to adjustments to basis), as amended by this Act, is amended by striking <quote>and</quote> at the end of paragraph (33), by striking the period at the end of paragraph (34) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="H08AAF40E30CD4BCA843BCEB33AF1E3D"> <paragraph id="H6D6E9349231145D58B6CD0FFC893CE9"><enum>(35)</enum><text>in the case of a facility with respect to which a credit was allowed under section 45I, to the extent provided in section 45I(d).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H857038261ECE4226862892E6AA3B739C"><enum>(e)</enum><header>Deduction for certain unused business credits</header><text>Section 196(c) (defining qualified business credits), as amended by this Act, is amended by striking <quote>and</quote> at the end of paragraph (12), by striking the period at the end of paragraph (13) and inserting <quote>, and</quote>, and by adding after paragraph (13) the following new paragraph:</text> <quoted-block id="HE27B7707A1F74BBFA2CE213D8D1DF"> <paragraph id="HCFDFA18A932143E39F9102AAEB230D6"><enum>(14)</enum><text>the low sulfur diesel fuel production credit determined under section 45I(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H7DCFBB3BCD274F8BBF3D81F0A7FD0884"><enum>(f)</enum><header>Clerical amendment</header><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by this Act, is amended by adding at the end the following new item:</text> <quoted-block style="OLC" id="H09C2C023747240AE86200069CFEFC800"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 45I. Credit for production of low sulfur diesel fuel</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H8F5C7BBAA6234B74A8099E0010D891FF"><enum>(g)</enum><header>Effective date</header><text>The amendments made by this section shall apply to expenses paid or incurred after December 31, 2002, in taxable years ending after such date.</text></subsection></section> <section id="H4E039429DBA14243AC6DEA43269623D2"><enum>1326.</enum><header>Determination of small refiner exception to oil depletion deduction</header> <subsection id="H227BB33DBCC844B1BF8DA44DCB607124"><enum>(a)</enum><header>In general</header><text>Paragraph (4) of section 613A(d) (relating to limitations on application of subsection (c)) is amended to read as follows:</text> <quoted-block id="H5B71B5AE68E642F6005D7141C67C9DC2"> <paragraph id="H2792FB7E06944399B745F9E5C8D7A7A6"><enum>(4)</enum><header>Certain refiners excluded</header><text>If the taxpayer or 1 or more related persons engages in the refining of crude oil, subsection (c) shall not apply to the taxpayer for a taxable year if the average daily refinery runs of the taxpayer and such persons for the taxable year exceed 67,500 barrels. For purposes of this paragraph, the average daily refinery runs for any taxable year shall be determined by dividing the aggregate refinery runs for the taxable year by the number of days in the taxable year.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H80B15BD563644980B1DD5DE758E2837F"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years ending after the date of the enactment of this Act.</text></subsection></section> <section id="HC1F83517CAB14E18917B8E622BB0CDC0"><enum>1327.</enum><header>Sales or dispositions to implement Federal Energy Regulatory Commission or State electric restructuring policy</header> <subsection id="H8818E55D70EA45A4909EC0F81ED9D51E"><enum>(a)</enum><header>In general</header><text>Section 451 (relating to general rule for taxable year of inclusion) is amended by adding at the end the following new subsection:</text> <quoted-block id="H328AB08767424088871177CFB728CBA7"> <subsection id="H8C25C716F68D44B2BBFBE008C7023D9C"><enum>(i)</enum><header>Special rule for sales or dispositions to implement Federal Energy Regulatory Commission or State electric restructuring policy</header> <paragraph id="HBB2A341C39D54C178C87242200A8E0DC"><enum>(1)</enum><header>In general</header><text>In the case of any qualifying electric transmission transaction for which the taxpayer elects the application of this section, qualified gain from such transaction shall be recognized—</text> <subparagraph id="H0381A6CDB68745DA874C735C5FE8C9C"><enum>(A)</enum><text>in the taxable year which includes the date of such transaction to the extent the amount realized from such transaction exceeds—</text> <clause id="H6EF8AB866A964580A5B995EBF6B90075"><enum>(i)</enum><text>the cost of exempt utility property which is purchased by the taxpayer during the 4-year period beginning on such date, reduced (but not below zero) by</text></clause> <clause id="HFED2E754080D4A438C48F305564CC0A6"><enum>(ii)</enum><text>any portion of such cost previously taken into account under this subsection, and</text></clause></subparagraph> <subparagraph id="H11FE511F3E254CC28E9D089E26672724"><enum>(B)</enum><text>ratably over the 8-taxable year period beginning with the taxable year which includes the date of such transaction, in the case of any such gain not recognized under subparagraph (A).</text></subparagraph></paragraph> <paragraph id="H5C513D885A064FC9BCC7C8FA9F959983"><enum>(2)</enum><header>Qualified gain</header><text>For purposes of this subsection, the term <term>qualified gain</term> means, with respect to any qualifying electric transmission transaction in any taxable year—</text> <subparagraph id="H089E69BC15A0406A8798F0D7411D2E73"><enum>(A)</enum><text>any ordinary income derived from such transaction which would be required to be recognized under section 1245 or 1250 for such taxable year (determined without regard to this subsection), and</text></subparagraph> <subparagraph id="H7C5BBE556C2346E2A94181AAAF12FEBC"><enum>(B)</enum><text>any income derived from such transaction in excess of the amount described in subparagraph (A) which is required to be included in gross income for such taxable year (determined without regard to this subsection).</text></subparagraph></paragraph> <paragraph id="HE2F99A7D5FFE45CA987E0044AB98E900"><enum>(3)</enum><header>Qualifying electric transmission transaction</header><text>For purposes of this subsection, the term <term>qualifying electric transmission transaction</term> means any sale or other disposition before January 1, 2007, of—</text> <subparagraph id="HDFA62BEB6CE1484700DD1868A6CCDBAB"><enum>(A)</enum><text>property used in the trade or business of providing electric transmission services, or</text></subparagraph> <subparagraph id="HA8EE7FC99EAF41879313E9F165B3E1AD"><enum>(B)</enum><text>any stock or partnership interest in a corporation or partnership, as the case may be, whose principal trade or business consists of providing electric transmission services,</text></subparagraph><continuation-text continuation-text-level="paragraph">but only if such sale or disposition is to an independent transmission company.</continuation-text></paragraph> <paragraph id="HBE8BBEB198DB4BB5883B704F02933955"><enum>(4)</enum><header>Independent transmission company</header><text>For purposes of this subsection, the term <term>independent transmission company</term> means—</text> <subparagraph id="H4018DE6432CE4CC2A433547F0064DF58"><enum>(A)</enum><text>an independent transmission provider approved by the Federal Energy Regulatory Commission,</text></subparagraph> <subparagraph id="HB7FDE368B2C647CB9BA5ECB1A60855AC"><enum>(B)</enum><text>a person—</text> <clause id="H1359D6D79FDE4B59A4E1024D2E46D73"><enum>(i)</enum><text>who the Federal Energy Regulatory Commission determines in its authorization of the transaction under section 203 of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824b">16 U.S.C. 824b</external-xref>) or by declaratory order is not a market participant within the meaning of such Commission’s rules applicable to independent transmission providers, and</text></clause> <clause id="H15FC70EA31B745DF00A33CAF1B07C8D7"><enum>(ii)</enum><text>whose transmission facilities to which the election under this subsection applies are under the operational control of a Federal Energy Regulatory Commission-approved independent transmission provider before the close of the period specified in such authorization, but not later than the close of the period applicable under subsection (a)(2)(B) as extended under paragraph (2), or</text></clause></subparagraph> <subparagraph id="H718B2612D7754C8EB0C7598D63CA6D9D"><enum>(C)</enum><text>in the case of facilities subject to the jurisdiction of the Public Utility Commission of Texas—</text> <clause id="H7126253649E34C4488E05B65FE9952F0"><enum>(i)</enum><text>a person which is approved by that Commission as consistent with Texas State law regarding an independent transmission provider, or</text></clause> <clause id="H10D70F66CA164929ACFC844E2E7B18D2"><enum>(ii)</enum><text>a political subdivision or affiliate thereof whose transmission facilities are under the operational control of a person described in clause (i).</text></clause></subparagraph></paragraph> <paragraph id="H767AD0981B3849F58160ECA862FAF717"><enum>(5)</enum><header>Exempt utility property</header><text>For purposes of this subsection—</text> <subparagraph id="HDA25579911E746EA929D8684E0865744"><enum>(A)</enum><header>In general</header><text>The term <term>exempt utility property</term> means property used in the trade or business of—</text> <clause id="HAB2DDB59EC304A9F98AA6655624942A"><enum>(i)</enum><text>generating, transmitting, distributing, or selling electricity, or</text></clause> <clause id="H63DF6EA22ED24F79A26024B7D3C356F4"><enum>(ii)</enum><text>producing, transmitting, distributing, or selling natural gas.</text></clause></subparagraph> <subparagraph id="H26569B7B9E51492AAB3BC121002ECD92"><enum>(B)</enum><header>Nonrecognition of gain by reason of acquisition of stock</header><text>Acquisition of control of a corporation shall be taken into account under this subsection with respect to a qualifying electric transmission transaction only if the principal trade or business of such corporation is a trade or business referred to in subparagraph (A).</text></subparagraph></paragraph> <paragraph id="H4612FECB89CF449EA52998512D4717A1"><enum>(6)</enum><header>Special rule for consolidated groups</header><text>In the case of a corporation which is a member of an affiliated group filing a consolidated return, any exempt utility property purchased by another member of such group shall be treated as purchased by such corporation for purposes of applying paragraph (1)(A).</text></paragraph> <paragraph id="HDFE003C9B2774FDBB299009D85684DBC"><enum>(7)</enum><header>Time for assessment of deficiencies</header><text>If the taxpayer has made the election under paragraph (1) and any gain is recognized by such taxpayer as provided in paragraph (1)(B), then—</text> <subparagraph id="H82F0E05074E34477A504F5DCD5835747"><enum>(A)</enum><text>the statutory period for the assessment of any deficiency, for any taxable year in which any part of the gain on the transaction is realized, attributable to such gain shall not expire prior to the expiration of 3 years from the date the Secretary is notified by the taxpayer (in such manner as the Secretary may by regulations prescribe) of the purchase of exempt utility property or of an intention not to purchase such property, and</text></subparagraph> <subparagraph id="H71A72B1D0290422DBFC33B9E9BB311B3"><enum>(B)</enum><text>such deficiency may be assessed before the expiration of such 3-year period notwithstanding any law or rule of law which would otherwise prevent such assessment.</text></subparagraph></paragraph> <paragraph id="H8C5D3E3FC71848ED8EC89693D5A4EEA3"><enum>(8)</enum><header>Purchase</header><text>For purposes of this subsection, the taxpayer shall be considered to have purchased any property if the unadjusted basis of such property is its cost within the meaning of section 1012.</text></paragraph> <paragraph id="H2572C42B32B540B1B184F0B48C99767E"><enum>(9)</enum><header>Election</header><text>An election under paragraph (1) shall be made at such time and in such manner as the Secretary may require and, once made, shall be irrevocable.</text></paragraph> <paragraph id="H9565CE85DD8949FCB9716737FF14AD87"><enum>(10)</enum><header>Nonapplication of installment sales treatment</header><text>Section 453 shall not apply to any qualifying electric transmission transaction with respect to which an election to apply this subsection is made.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HBFE00E92BF51415890EF229EA49CB6D"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to transactions occurring after the date of the enactment of this Act, in taxable years ending after such date.</text></subsection></section> <section id="HF5DC9B511D264EEAA1444E9C6EC0A044"><enum>1328.</enum><header>Modifications to special rules for nuclear decommissioning costs</header> <subsection id="H02044B440F0A4D6DB45890A573D6CBB8"><enum>(a)</enum><header>Repeal of limitation on deposits into Fund based on cost of service; contributions after funding period</header><text>Subsection (b) of section 468A (relating to special rules for nuclear decommissioning costs) is amended to read as follows:</text> <quoted-block id="H82995C4F55454B589120DDBCF9926625"> <subsection id="HAE0AC7DF940A440DB62B3B9FECF01B1C"><enum>(b)</enum><header>Limitation on amounts paid into Fund</header> <paragraph id="H9B9BD082F89E46A0A6F8A35963154910"><enum>(1)</enum><header>In general</header><text>The amount which a taxpayer may pay into the Fund for any taxable year shall not exceed the ruling amount applicable to such taxable year.</text></paragraph> <paragraph id="HE5958EE48F0B4A1BBFBACF332301CE19"><enum>(2)</enum><header>Contributions after funding period</header><text>Notwithstanding any other provision of this section, a taxpayer may pay into the Fund in any taxable year after the last taxable year to which the ruling amount applies. Payments may not be made under the preceding sentence to the extent such payments would cause the assets of the Fund to exceed the nuclear decommissioning costs allocable to the taxpayer’s current or former interest in the nuclear power plant to which the Fund relates. The limitation under the preceding sentence shall be determined by taking into account a reasonable rate of inflation for the nuclear decommissioning costs and a reasonable after-tax rate of return on the assets of the Fund until such assets are anticipated to be expended.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HE09E59DC288F4859988BE300BA003F5C"><enum>(b)</enum><header>Clarification of treatment of Fund transfers</header><text>Section 468A(e) (relating to Nuclear Decommissioning Reserve Fund) is amended by adding at the end the following new paragraph:</text> <quoted-block id="HCAC8CFFD90E14DB4004CDC7B4CCFFB2"> <paragraph id="HEFF7795A6DB04E1F8D8C0555A04B004B"><enum>(8)</enum><header>Treatment of Fund transfers</header> <subparagraph id="H8D6E51570C4E4DD3AB46FEC4BAA32FF4"><enum>(A)</enum><header>In general</header><text>If, in connection with the transfer of the taxpayer’s interest in a nuclear power plant, the taxpayer transfers the Fund with respect to such power plant to the transferee of such interest and the transferee elects to continue the application of this section to such Fund—</text> <clause id="H53BAA4D09F3E40AA80C45DB7E4A0B8C8"><enum>(i)</enum><text>the transfer of such Fund shall not cause such Fund to be disqualified from the application of this section, and</text></clause> <clause id="HE5744D619F664D84BCB26EA1327C3FC9"><enum>(ii)</enum><text>no amount shall be treated as distributed from such Fund, or be includable in gross income, by reason of such transfer.</text></clause></subparagraph> <subparagraph id="HA866D6D04FFC4719AAD0CFB5AF5F59DA"><enum>(B)</enum><header>Special rules if transferor is tax-exempt entity</header> <clause id="H7EB4354CBD1A4B198FA1D2890064257D"><enum>(i)</enum><header>In general</header><text>If—</text> <subclause id="HDB48C8AA39B342559B53AB6E207E171E"><enum>(I)</enum><text>a person exempt from taxation under this title transfers an interest in a nuclear power plant,</text></subclause> <subclause id="H8A727E0FCC354169A6DF3FD5B1907675"><enum>(II)</enum><text>such person has set aside amounts for nuclear decommissioning which are transferred to the transferee of the interest, and</text></subclause> <subclause id="H1DF91164DF9F4FA7915DF88D04D612E8"><enum>(III)</enum><text>the transferee elects the application of this subparagraph no later than the due date (including extensions) of its return of tax for the taxable year in which the transfer occurs,</text></subclause><continuation-text continuation-text-level="clause">the amounts so set aside shall be treated as if contributed by such person to a Fund immediately before the transfer and then transferred in the Fund to the transferee.</continuation-text></clause> <clause id="H532014B7D3D34D3F9BCD2F6EF8239E51"><enum>(ii)</enum><header>Limitation</header><text>The amount treated as transferred to a Fund under clause (i) shall not exceed the amount which bears the same ratio to the present value of the nuclear decommissioning costs of the transferor with respect to the nuclear power plant as the number of years the nuclear power plant has been in service bears to the estimated useful life of such power plant.</text></clause> <clause id="H4BFE7A0A718C45FC84AF99FB8B674669"><enum>(iii)</enum><header>Basis</header><text>The transferee’s basis in any asset treated as transferred in the Fund shall be the same as the adjusted basis of such asset in the hands of the transferor.</text></clause> <clause id="H770C452795424D898C58F6A7B8D3A280"><enum>(iv)</enum><header>Ruling amount required</header><text>This subparagraph shall not apply to any transfer unless the transferee requests from the Secretary a schedule of ruling amounts.</text></clause> <clause id="H5F577035D24E44FF911CD0BCA72622E7"><enum>(v)</enum><header>Election disregarded</header><text>An election under this subparagraph shall be disregarded in determining the Federal income tax of the transferor.</text></clause></subparagraph></paragraph><after-quoted-block>. </after-quoted-block></quoted-block></subsection> <subsection id="H98A29E8C17394D148733A8E72DABA59"><enum>(c)</enum><header>Treatment of certain decommissioning costs</header> <paragraph id="HA93A1487192F42BFA9B794AA917BBCA3"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/468A">Section 468A</external-xref> is amended by redesignating subsections (f) and (g) as subsections (g) and (h), respectively, and by inserting after subsection (e) the following new subsection:</text> <quoted-block id="HAED12C4E829943CDBDA735E11F947C7C"> <subsection id="H58745F7B61FB44E4A985E59C7DE16D7E"><enum>(f)</enum><header>Transfers into qualified funds</header> <paragraph id="H6CCD293B1A4D45B78DC627E2F256FBCB"><enum>(1)</enum><header>In general</header><text>Notwithstanding subsection (b), any taxpayer maintaining a Fund to which this section applies with respect to a nuclear power plant may transfer into such Fund not more than an amount equal to the present value of the portion of the total nuclear decommissioning costs with respect to such nuclear power plant previously excluded for such nuclear power plant under subsection (d)(2)(A) as in effect immediately before the date of the enactment of the <short-title>Energy Tax Policy Act of 2004</short-title>.</text></paragraph> <paragraph id="H104846FD765841D6A054E20715F7E215"><enum>(2)</enum><header>Deduction for amounts transferred</header> <subparagraph id="H64637BC86112432D8F03D82BE6971B54"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (C), the deduction allowed by subsection (a) for any transfer permitted by this subsection shall be allowed ratably over the remaining estimated useful life (within the meaning of subsection (d)(2)(A)) of the nuclear power plant beginning with the taxable year during which the transfer is made.</text></subparagraph> <subparagraph id="H403B6D75BC414B5787D897927EFB5BCE"><enum>(B)</enum><header>Denial of deduction for previously deducted amounts</header><text>No deduction shall be allowed for any transfer under this subsection of an amount for which a deduction was previously allowed to the taxpayer (or a predecessor) or a corresponding amount was not included in gross income of the taxpayer (or a predecessor). For purposes of the preceding sentence, a ratable portion of each transfer shall be treated as being from previously deducted or excluded amounts to the extent thereof.</text></subparagraph> <subparagraph id="H7D640086F65E4AE8B02DC69EE18D5AD"><enum>(C)</enum><header>Transfers of qualified funds</header><text>If—</text> <clause id="H2CCA0DCC2A464A60BB87D200744838BA"><enum>(i)</enum><text>any transfer permitted by this subsection is made to any Fund to which this section applies, and</text></clause> <clause id="HDB6B36126AC84FA086EBCB09C3774BC5"><enum>(ii)</enum><text>such Fund is transferred thereafter,</text></clause><continuation-text continuation-text-level="subparagraph">any deduction under this subsection for taxable years ending after the date that such Fund is transferred shall be allowed to the transferor for the taxable year which includes such date.</continuation-text></subparagraph> <subparagraph id="H182EB038B0714533BC84206EBFB02F0"><enum>(D)</enum><header>Special rules</header> <clause id="HAF6316403005430194B8B339CD1DCE3"><enum>(i)</enum><header>Gain or loss not recognized</header><text>No gain or loss shall be recognized on any transfer permitted by this subsection.</text></clause> <clause id="H0596E7E817334F06B073E35382AD9772"><enum>(ii)</enum><header>Transfers of appreciated property</header><text>If appreciated property is transferred in a transfer permitted by this subsection, the amount of the deduction shall not exceed the adjusted basis of such property.</text></clause></subparagraph></paragraph> <paragraph id="HC62AB6B146904FEFB2B578290036534B"><enum>(3)</enum><header>New ruling amount required</header><text>Paragraph (1) shall not apply to any transfer unless the taxpayer requests from the Secretary a new schedule of ruling amounts in connection with such transfer.</text></paragraph> <paragraph id="H9CBC43096CCA407782D128BE1F9719A"><enum>(4)</enum><header>No basis in qualified funds</header><text>Notwithstanding any other provision of law, the taxpayer’s basis in any Fund to which this section applies shall not be increased by reason of any transfer permitted by this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H2CC73588F02A4A1D9C021C7E48F4EA8F"><enum>(2)</enum><header>New ruling amount to take into account total costs</header><text>Subparagraph (A) of section 468A(d)(2) (defining ruling amount) is amended to read as follows:</text> <quoted-block id="H6A1F375289184B8FB46712412C874938"> <subparagraph id="H4AF7673FA3D84C0F9F1472E1A4E75E85"><enum>(A)</enum><text>fund the total nuclear decommissioning costs with respect to such power plant over the estimated useful life of such power plant, and</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H664AE153A1A3448389705B754D3CA2FB"><enum>(d)</enum><header>Technical amendments</header><text>Section 468A(e)(2) (relating to taxation of Fund) is amended—</text> <paragraph id="H942E80EE72064AF69E789B8775E9B1CF"><enum>(1)</enum><text>by striking <quote>rate set forth in subparagraph (B)</quote> in subparagraph (A) and inserting <quote>rate of 20 percent</quote>,</text></paragraph> <paragraph id="HA88CCB798B1F45A7AA8B814C5DB01F99"><enum>(2)</enum><text>by striking subparagraph (B), and</text></paragraph> <paragraph id="HD8712488443A4C6D000095AD226603D3"><enum>(3)</enum><text>by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively.</text></paragraph></subsection> <subsection id="HB69C8A24088D48A7B8F105186526B3DA"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2003.</text></subsection></section> <section id="HBB7FDFBCEE274A6681CD5BA2C802FF25"><enum>1329.</enum><header>Treatment of certain income of cooperatives</header> <subsection id="H33EB18B1A13F4365B3EA4B740056E7BF"><enum>(a)</enum><header>Income from open access and nuclear decommissioning transactions</header> <paragraph id="H7AF66078B93E4CEFAFF2205D8B8E5365"><enum>(1)</enum><header>In general</header><text>Subparagraph (C) of <external-xref legal-doc="usc" parsable-cite="usc/26/501">section 501(c)(12)</external-xref> is amended by striking <quote>or</quote> at the end of clause (i), by striking clause (ii), and by adding at the end the following new clauses:</text> <quoted-block id="H7B17591F785E41828E6C309D3E4E5222"> <clause id="H85038EB5738B4EAA89CA06E037239C1B"><enum>(ii)</enum><text>from any provision or sale of electric energy transmission services or ancillary services if such services are provided on a nondiscriminatory open access basis under an open access transmission tariff approved or accepted by FERC or under an independent transmission provider agreement approved or accepted by FERC (other than income received or accrued directly or indirectly from a member),</text></clause> <clause id="HCD5D62CCF69248AF84A2AB501166AAB8"><enum>(iii)</enum><text>from the provision or sale of electric energy distribution services or ancillary services if such services are provided on a nondiscriminatory open access basis to distribute electric energy not owned by the mutual or electric cooperative company—</text> <subclause id="HB3D6A65ADEE74842964FA05F7268F5FF"><enum>(I)</enum><text>to end-users who are served by distribution facilities not owned by such company or any of its members (other than income received or accrued directly or indirectly from a member), or</text></subclause> <subclause id="H6D5CCA720F9D445695C43483ACA99DAA"><enum>(II)</enum><text>generated by a generation facility not owned or leased by such company or any of its members and which is directly connected to distribution facilities owned by such company or any of its members (other than income received or accrued directly or indirectly from a member),</text></subclause></clause> <clause id="H25E74A6B20324162879B88D319EF6600"><enum>(iv)</enum><text>from any nuclear decommissioning transaction, or</text></clause> <clause id="H1EC7521C8A934DA78354431C9999C26E"><enum>(v)</enum><text>from any asset exchange or conversion transaction.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H2D04DFAE347742258C08EA8D00DE18D4"><enum>(2)</enum><header>Definitions and special rules</header><text>Paragraph (12) of <external-xref legal-doc="usc" parsable-cite="usc/26/501">section 501(c)</external-xref> is amended by adding at the end the following new subparagraphs:</text> <quoted-block id="H959F8D6D70AB42F3AAA0086D74ACA75B"> <subparagraph id="H42EFFB4C4FEE4DCBB3662234A67F9FC2"><enum>(E)</enum><text>For purposes of subparagraph (C)(ii), the term <term>FERC</term> means the Federal Energy Regulatory Commission and references to such term shall be treated as including the Public Utility Commission of Texas with respect to any ERCOT utility (as defined in section 212(k)(2)(B) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824k">16 U.S.C. 824k(k)(2)(B)</external-xref>)).</text></subparagraph> <subparagraph id="H467C03D4E1A54214008B9E52F0EB3DE8"><enum>(F)</enum><text>For purposes of subparagraph (C)(iii), the term <term>nuclear decommissioning transaction</term> means—</text> <clause id="H19AD5B4D9D8A4E0EA7F64634A91F1C61"><enum>(i)</enum><text>any transfer into a trust, fund, or instrument established to pay any nuclear decommissioning costs if the transfer is in connection with the transfer of the mutual or cooperative electric company’s interest in a nuclear power plant or nuclear power plant unit,</text></clause> <clause id="H2BA8C70DDA854C90B074C4CF4FC53938"><enum>(ii)</enum><text>any distribution from any trust, fund, or instrument established to pay any nuclear decommissioning costs, or</text></clause> <clause id="HD1A46535F6A94687928CACADC952EDCA"><enum>(iii)</enum><text>any earnings from any trust, fund, or instrument established to pay any nuclear decommissioning costs.</text></clause></subparagraph> <subparagraph id="H2A2CD8CE9DA049CE944F516CE4A239B7"><enum>(G)</enum><text>For purposes of subparagraph (C)(iv), the term <term>asset exchange or conversion transaction</term> means any voluntary exchange or involuntary conversion of any property related to generating, transmitting, distributing, or selling electric energy by a mutual or cooperative electric company, the gain from which qualifies for deferred recognition under section 1031 or 1033, but only if the replacement property acquired by such company pursuant to such section constitutes property which is used, or to be used, for—</text> <clause id="H8DDE4EAC02764CF0BFC700F082D9EC3D"><enum>(i)</enum><text>generating, transmitting, distributing, or selling electric energy, or</text></clause> <clause id="HC1AD7528169B4CD19E82FCB56BFC9FD0"><enum>(ii)</enum><text>producing, transmitting, distributing, or selling natural gas.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HDA8172DE9B594DA0AB7119184C526C59"><enum>(b)</enum><header>Treatment of income from load loss transactions, etc</header><text>Paragraph (12) of section 501(c), as amended by subsection (a)(2), is amended by adding after subparagraph (G) the following new subparagraph:</text> <quoted-block id="HD2FC88AF6CC341B3A8DB6DBF67179B00"> <subparagraph id="H57C8F78A00E94A9AA276A800C2A3D94"><enum>(H)</enum> <clause display-inline="yes-display-inline" id="H5E1A4EB6A5684C42B9F7EF808FA8A858"><enum>(i)</enum><text>In the case of a mutual or cooperative electric company described in this paragraph or an organization described in section 1381(a)(2)(C), income received or accrued from a load loss transaction shall be treated as an amount collected from members for the sole purpose of meeting losses and expenses.</text></clause> <clause indent="up1" id="HD6A60759B04E4D7F8183AC922372CBDA"><enum>(ii)</enum><text>For purposes of clause (i), the term <term>load loss transaction</term> means any wholesale or retail sale of electric energy (other than to members) to the extent that the aggregate sales during the recovery period do not exceed the load loss mitigation sales limit for such period.</text></clause> <clause indent="up1" id="H0F2CEBD2CB51423F009523731800204E"><enum>(iii)</enum><text>For purposes of clause (ii), the load loss mitigation sales limit for the recovery period is the sum of the annual load losses for each year of such period.</text></clause> <clause indent="up1" id="H7BC8E650A61C418A8212664D35DB6CC1"><enum>(iv)</enum><text>For purposes of clause (iii), a mutual or cooperative electric company’s annual load loss for each year of the recovery period is the amount (if any) by which—</text> <subclause id="H7C7F8F737CA145B4B6F31D815E7F7FF3"><enum>(I)</enum><text>the megawatt hours of electric energy sold during such year to members of such electric company are less than</text></subclause> <subclause id="H11B54F3105504523BC6C5EEE6D4279F5"><enum>(II)</enum><text>the megawatt hours of electric energy sold during the base year to such members.</text></subclause></clause> <clause indent="up1" id="H1A7732F10E2440DF00BA49DC7C1B7591"><enum>(v)</enum><text>For purposes of clause (iv)(II), the term <term>base year</term> means—</text> <subclause id="H2EB2C0E4D02342A8AFB0F84D628B5FC"><enum>(I)</enum><text>the calendar year preceding the start-up year, or</text></subclause> <subclause id="H336CA7C770EF4547B9D503C84A9FB5E"><enum>(II)</enum><text>at the election of the mutual or cooperative electric company, the second or third calendar years preceding the start-up year.</text> <item indent="up2" id="HC80EF39DD9D84D87BD48AA71CD6C52A"><enum>(vi)</enum><text>For purposes of this subparagraph, the recovery period is the 7-year period beginning with the start-up year.</text></item> <item indent="up2" id="H36135D3F3EFE4C56A3FDEB2E8746D627"><enum>(vii)</enum><text>For purposes of this subparagraph, the start-up year is the first year that the mutual or cooperative electric company offers nondiscriminatory open access or the calendar year which includes the date of the enactment of this subparagraph, if later, at the election of such company.</text></item> <item indent="up2" id="HD00BC911CAF04864B194F833002B0872"><enum>(viii)</enum><text>A company shall not fail to be treated as a mutual or cooperative electric company for purposes of this paragraph or as a corporation operating on a cooperative basis for purposes of section 1381(a)(2)(C) by reason of the treatment under clause (i).</text></item> <item indent="up2" id="H089D0BEB8A5F416CA760A93BFE6CF3AB"><enum>(ix)</enum><text>For purposes of subparagraph (A), in the case of a mutual or cooperative electric company, income received, or accrued, indirectly from a member shall be treated as an amount collected from members for the sole purpose of meeting losses and expenses.</text></item></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H723B2A4C440C47D09E5512166268C21C"><enum>(c)</enum><header>Exception from unrelated business taxable income</header><text>Subsection (b) of section 512 (relating to modifications) is amended by adding at the end the following new paragraph:</text> <quoted-block id="HEABD2A3ECDE64EBD8E33B6B400F8858B"> <paragraph id="H3ED5DE6BB8574679AB1381CC81B115FD"><enum>(18)</enum><header>Treatment of mutual or cooperative electric companies</header><text>In the case of a mutual or cooperative electric company described in section 501(c)(12), there shall be excluded income which is treated as member income under subparagraph (H) thereof.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HD8175A6FB77E43E394AAE07127FD5C05"><enum>(d)</enum><header>Cross reference</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1381">Section 1381</external-xref> is amended by adding at the end the following new subsection:</text> <quoted-block id="H4115D8AE254248648FA0E76210B5F2F"> <subsection id="HE9D9147765204B4B9BA1B18C8F5CD9FD"><enum>(c)</enum><header>Cross reference</header><text>For treatment of income from load loss transactions of organizations described in subsection (a)(2)(C), see section 501(c)(12)(H).</text> </subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H53CE8FE0D57F49E48860ECB09482F8CD"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text></subsection></section> <section id="H7AC0E27050904CB5898E84CD75E8D118"><enum>1330.</enum><header>Arbitrage rules not to apply to prepayments for natural gas</header> <subsection id="H1545B2A3C8A543D4A561B867F699277C"><enum>(a)</enum><header>In general</header><text>Subsection (b) of section 148 (relating to higher yielding investments) is amended by adding at the end the following new paragraph:</text> <quoted-block id="H9C29FB3F140F4659A77000EC5BB8F572"> <paragraph id="H7EE307D38B484BF18944CAD07B2838BB"><enum>(4)</enum><header>Safe harbor for prepaid natural gas</header> <subparagraph id="HA8DF06C80C8746F0BB84AE6C00B48236"><enum>(A)</enum><header>In general</header><text>The term <term>investment-type property</term> does not include a prepayment under a qualified natural gas supply contract.</text></subparagraph> <subparagraph id="H8191E60B9AE7448A891FF161091F708C"><enum>(B)</enum><header>Qualified natural gas supply contract</header><text>For purposes of this paragraph, the term <term>qualified natural gas supply contract</term> means any contract to acquire natural gas for resale by a utility owned by a governmental unit if the amount of gas permitted to be acquired under the contract by the utility during any year does not exceed the sum of—</text> <clause id="H30910331A0264762914793948825CAA7"><enum>(i)</enum><text>the annual average amount during the testing period of natural gas purchased (other than for resale) by customers of such utility who are located within the service area of such utility, and</text></clause> <clause id="HCF15C56BB87C4C5BBF39645BEA670009"><enum>(ii)</enum><text>the amount of natural gas to be used to transport the prepaid natural gas to the utility during such year.</text></clause></subparagraph> <subparagraph id="HF27EF11928EF4CF7AE450623C4175F1F"><enum>(C)</enum><header>Natural gas used to generate electricity</header><text>Natural gas used to generate electricity shall be taken into account in determining the average under subparagraph (B)(i)—</text> <clause id="H6AEE40180F2748BF001F18F4D1E8DFE"><enum>(i)</enum><text>only if the electricity is generated by a utility owned by a governmental unit, and</text></clause> <clause id="HEDACA6604EFE4A05AA60B63014105442"><enum>(ii)</enum><text>only to the extent that the electricity is sold (other than for resale) to customers of such utility who are located within the service area of such utility.</text></clause></subparagraph> <subparagraph id="HE602FB16D767432E81515EDA84192B6D"><enum>(D)</enum><header>Adjustments for changes in customer base</header> <clause id="HE0B8A52F02F54B61A07FDC7BD000059"><enum>(i)</enum><header>New business customers</header><text>If—</text> <subclause id="HEA31A99486AF47158FD003F1400F3DC"><enum>(I)</enum><text>after the close of the testing period and before the date of issuance of the issue, the utility owned by a governmental unit enters into a contract to supply natural gas (other than for resale) for a business use at a property within the service area of such utility, and</text></subclause> <subclause id="HC8AFB57B4943492B87AD5D6953F477E2"><enum>(II)</enum><text>the utility did not supply natural gas to such property during the testing period or the ratable amount of natural gas to be supplied under the contract is significantly greater than the ratable amount of gas supplied to such property during the testing period,</text></subclause><continuation-text continuation-text-level="clause">then a contract shall not fail to be treated as a qualified natural gas supply contract by reason of supplying the additional natural gas under the contract referred to in subclause (I).</continuation-text></clause> <clause id="HADA83893371C4DEDACD79B985535F000"><enum>(ii)</enum><header>Lost customers</header><text>The average under subparagraph (B)(i) shall not exceed the annual amount of natural gas reasonably expected to be purchased (other than for resale) by persons who are located within the service area of such utility and who, as of the date of issuance of the issue, are customers of such utility.</text></clause></subparagraph> <subparagraph id="HE7D940B176344DFD913200A393760096"><enum>(E)</enum><header>Ruling requests</header><text>The Secretary may increase the average under subparagraph (B)(i) for any period if the utility owned by the governmental unit establishes to the satisfaction of the Secretary that, based on objective evidence of growth in natural gas consumption or population, such average would otherwise be insufficient for such period.</text></subparagraph> <subparagraph id="HD18BEBDB768048528FF857994915D080"><enum>(F)</enum><header>Adjustment for natural gas otherwise on hand</header> <clause id="HF77FDF8BF2FC4FA5BFA75C49C9DE337"><enum>(i)</enum><header>In general</header><text>The amount otherwise permitted to be acquired under the contract for any period shall be reduced by—</text> <subclause id="H9BBE7828C41D4D578C00A1CD98729FBB"><enum>(I)</enum><text>the applicable share of natural gas held by the utility on the date of issuance of the issue, and</text></subclause> <subclause id="HBC405EC1C0BA4F6ABE218CE2936EDD94"><enum>(II)</enum><text>the natural gas (not taken into account under subclause (I)) which the utility has a right to acquire during such period (determined as of the date of issuance of the issue).</text></subclause></clause> <clause id="H4D618BE6A5764E96A6B780802D3F4854"><enum>(ii)</enum><header>Applicable share</header><text>For purposes of the clause (i), the term <term>applicable share</term> means, with respect to any period, the natural gas allocable to such period if the gas were allocated ratably over the period to which the prepayment relates.</text></clause></subparagraph> <subparagraph id="HF4323B94D8254C6BA4C471EA09D1AF25"><enum>(G)</enum><header>Intentional acts</header><text>Subparagraph (A) shall cease to apply to any issue if the utility owned by the governmental unit engages in any intentional act to render the volume of natural gas acquired by such prepayment to be in excess of the sum of—</text> <clause id="H814F21924D734FFC9F423E927B95AD1E"><enum>(i)</enum><text>the amount of natural gas needed (other than for resale) by customers of such utility who are located within the service area of such utility, and</text></clause> <clause id="HD771123BC44E467BA7D0A824D44484E"><enum>(ii)</enum><text>the amount of natural gas used to transport such natural gas to the utility.</text></clause></subparagraph> <subparagraph id="H04EDDEA15CF543C28E65C21400C11E00"><enum>(H)</enum><header>Testing period</header><text>For purposes of this paragraph, the term <term>testing period</term> means, with respect to an issue, the most recent 5 calendar years ending before the date of issuance of the issue.</text></subparagraph> <subparagraph id="HACA910F2C34D409AB3BBD84D6707CF67"><enum>(I)</enum><header>Service area</header><text>For purposes of this paragraph, the service area of a utility owned by a governmental unit shall be comprised of—</text> <clause id="HF69EE3AA1E6E4816B79EEE91A755A4B9"><enum>(i)</enum><text>any area throughout which such utility provided at all times during the testing period—</text> <subclause id="H0F6D559155174B719C0034DCFCD5B51"><enum>(I)</enum><text>in the case of a natural gas utility, natural gas transmission or distribution services, and</text></subclause> <subclause id="H419A5DC754FF43EEA0C721113ECEF400"><enum>(II)</enum><text>in the case of an electric utility, electricity distribution services,</text></subclause></clause> <clause id="H46632E20EDF2468CA5FCF4676C8C77FF"><enum>(ii)</enum><text>any area within a county contiguous to the area described in clause (i) in which retail customers of such utility are located if such area is not also served by another utility providing natural gas or electricity services, as the case may be, and</text></clause> <clause id="H125B13C9B3844EC99C0022F61FE19635"><enum>(iii)</enum><text>any area recognized as the service area of such utility under State or Federal law.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HEB366576FE5F4499A29794BB4F7B4C88"><enum>(b)</enum><header>Private loan financing test not to apply to prepayments for natural gas</header><text>Paragraph (2) of section 141(c) (providing exceptions to the private loan financing test) is amended by striking <quote>or</quote> at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting <quote>, or</quote>, and by adding at the end the following new subparagraph:</text> <quoted-block id="H4FD3D0D0B5DD4856844500052F9B464B"> <subparagraph id="HBB9BAC65AF99449E98F2BFFC007B52AA"><enum>(C)</enum><text>is a qualified natural gas supply contract (as defined in section 148(b)(4)).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H077A580EA071489CB8E18D882700E3C7"><enum>(c)</enum><header>Exception for qualified electric and natural gas supply contracts</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/141">Section 141(d)</external-xref> is amended by adding at the end the following new paragraph:</text> <quoted-block id="HE7C3D3DE93BD4A6B8FE18CBCECFFFC7D"> <paragraph id="H666C69AD820B4F4D93058C38527B3EBC"><enum>(7)</enum><header>Exception for qualified electric and natural gas supply contracts</header><text>The term <term>nongovernmental output property</term> shall not include any contract for the prepayment of electricity or natural gas which is not investment property under section 148(b)(2).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H2109AA706CD54D0189918B6CB901A087"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.</text></subsection></section></subtitle> <subtitle id="H4D6E674C4CAB44CFB64371CE4E5545B2"><enum>C</enum><header>Production</header> <part id="H496C5364842F410593199DE8C3D8BE4C"><enum>I</enum><header>Oil and gas provisions</header> <section id="H6B5ADFB2BED24BC897DF957FD79F8DBA"><enum>1341.</enum><header>Oil and gas from marginal wells</header> <subsection id="HD716DE4F3C1A4A1086B18E52CEB48DA6"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1 (relating to business credits), as amended by this Act, is amended by adding at the end the following:</text> <quoted-block id="HF805077F9E3448B69219F1638C39F1D2"> <section id="H356C35AB7EC442CAB0553CBD50E60048"><enum>45J.</enum><header>Credit for producing oil and gas from marginal wells</header> <subsection id="HBCBFA88D85DC4CF08DF9002FCCAF8550"><enum>(a)</enum><header>General rule</header><text>For purposes of section 38, the marginal well production credit for any taxable year is an amount equal to the product of—</text> <paragraph id="H8C9A4DEAF4F84F23A1E4293000620238"><enum>(1)</enum><text>the credit amount, and</text></paragraph> <paragraph id="H7CFC0879958A4E649FE1440059B46556"><enum>(2)</enum><text>the qualified credit oil production and the qualified natural gas production which is attributable to the taxpayer.</text></paragraph></subsection> <subsection id="H8C4E75E4BA804235A4E8642456C51F0"><enum>(b)</enum><header>Credit amount</header><text>For purposes of this section—</text> <paragraph id="HB167E28362E44D009800CBDABC557F22"><enum>(1)</enum><header>In general</header><text>The credit amount is—</text> <subparagraph id="HC0962A2A229F410BA3F661852D55B6EA"><enum>(A)</enum><text>$3 per barrel of qualified crude oil production, and</text></subparagraph> <subparagraph id="H6E792066CA0A4D129DBE5D32E2CA4D88"><enum>(B)</enum><text>50 cents per 1,000 cubic feet of qualified natural gas production.</text></subparagraph></paragraph> <paragraph id="H004825F96E3440B0B7A10B78FF3DD6"><enum>(2)</enum><header>Reduction as oil and gas prices increase</header> <subparagraph id="H8C62C68A27034E4F001BC8E4E803C109"><enum>(A)</enum><header>In general</header><text>The $3 and 50 cents amounts under paragraph (1) shall each be reduced (but not below zero) by an amount which bears the same ratio to such amount (determined without regard to this paragraph) as—</text> <clause id="H3A6CDF4B7E694DDFB208DEFBDBA56E8F"><enum>(i)</enum><text>the excess (if any) of the applicable reference price over $15 ($1.67 for qualified natural gas production), bears to</text></clause> <clause id="H46CD6A89EAA14257BCB07292E76B733B"><enum>(ii)</enum><text>$3 ($0.33 for qualified natural gas production).</text></clause><continuation-text continuation-text-level="subparagraph">The applicable reference price for a taxable year is the reference price of the calendar year preceding the calendar year in which the taxable year begins.</continuation-text></subparagraph> <subparagraph id="H660E03495FC0440AA1FC38DB8CAAD11C"><enum>(B)</enum><header>Inflation adjustment</header><text>In the case of any taxable year beginning in a calendar year after 2003, each of the dollar amounts contained in subparagraph (A) shall be increased to an amount equal to such dollar amount multiplied by the inflation adjustment factor for such calendar year (determined under section 43(b)(3)(B) by substituting <quote>2002</quote> for <quote>1990</quote>).</text></subparagraph> <subparagraph id="HB7BBE9039FF94EADABCD6309359995C0"><enum>(C)</enum><header>Reference price</header><text>For purposes of this paragraph, the term <term>reference price</term> means, with respect to any calendar year—</text> <clause id="H248616AE6421465DB3A83955EBC5A0EC"><enum>(i)</enum><text>in the case of qualified crude oil production, the reference price determined under section 45K(d)(2)(C), and</text></clause> <clause id="H5594C473F70240549F48D845463CAEA9"><enum>(ii)</enum><text>in the case of qualified natural gas production, the Secretary’s estimate of the annual average wellhead price per 1,000 cubic feet for all domestic natural gas.</text></clause></subparagraph></paragraph></subsection> <subsection id="HC5F1D7F825D04D9F8EFE7314906594C6"><enum>(c)</enum><header>Qualified crude oil and natural gas production</header><text>For purposes of this section—</text> <paragraph id="HFB7462C8089C40B086FC9747BBF31FB9"><enum>(1)</enum><header>In general</header><text>The terms <term>qualified crude oil production</term> and <term>qualified natural gas production</term> mean domestic crude oil or natural gas which is produced from a qualified marginal well.</text></paragraph> <paragraph id="H94796443DAA1427C88D952451DDDFC7"><enum>(2)</enum><header>Limitation on amount of production which may qualify</header> <subparagraph id="H6B2CDDDE68624295B27D967996DBDF4"><enum>(A)</enum><header>In general</header><text>Crude oil or natural gas produced during any taxable year from any well shall not be treated as qualified crude oil production or qualified natural gas production to the extent production from the well during the taxable year exceeds 1,095 barrels or barrel-of-oil equivalents (as defined in section 45K(d)(5)).</text></subparagraph> <subparagraph id="H1431693EBBC543FEA7E3C31FDA00A236"><enum>(B)</enum><header>Proportionate reductions</header> <clause id="H8EC70D2AA32A460B865C762BE242A57"><enum>(i)</enum><header>Short taxable years</header><text>In the case of a short taxable year, the limitations under this paragraph shall be proportionately reduced to reflect the ratio which the number of days in such taxable year bears to 365.</text></clause> <clause id="H4D6018D8B071430CAAF4A3AB8886D03D"><enum>(ii)</enum><header>Wells not in production entire year</header><text>In the case of a well which is not capable of production during each day of a taxable year, the limitations under this paragraph applicable to the well shall be proportionately reduced to reflect the ratio which the number of days of production bears to the total number of days in the taxable year.</text></clause></subparagraph></paragraph> <paragraph id="H7053FD6E96E1476A8E641FFFAB02D3E6"><enum>(3)</enum><header>Definitions</header> <subparagraph id="H6C74C691A0EF442685AFD1973E7C88FC"><enum>(A)</enum><header>Qualified marginal well</header><text>The term <term>qualified marginal well</term> means a domestic well—</text> <clause id="HD4FC52D27B7C40589F2300A7CAB5E14D"><enum>(i)</enum><text>the production from which during the taxable year is treated as marginal production under section 613A(c)(6), or</text></clause> <clause id="H7F43505DCA1E43598F908259030279C5"><enum>(ii)</enum><text>which, during the taxable year—</text> <subclause id="HB775356572C24F1ABFE2F925F5AA61BD"><enum>(I)</enum><text>has average daily production of not more than 25 barrel-of-oil equivalents (as so defined), and</text></subclause> <subclause id="HF51826644D414E66BDB47CE1BF3FF8FE"><enum>(II)</enum><text>produces water at a rate not less than 95 percent of total well effluent.</text></subclause></clause></subparagraph> <subparagraph id="H3BBDDF77D8AE4FAD9E22D6A6246293F"><enum>(B)</enum><header>Crude oil, etc</header><text>The terms <term>crude oil</term>, <term>natural gas</term>, <term>domestic</term>, and <term>barrel</term> have the meanings given such terms by section 613A(e).</text></subparagraph></paragraph></subsection> <subsection id="H8318B37DEA714CD59EA5CAA499ADBA03"><enum>(d)</enum><header>Other rules</header> <paragraph id="H0716A7647FD5409C008D7E8E609DC4E4"><enum>(1)</enum><header>Production attributable to the taxpayer</header><text>In the case of a qualified marginal well in which there is more than one owner of operating interests in the well and the crude oil or natural gas production exceeds the limitation under subsection (c)(2), qualifying crude oil production or qualifying natural gas production attributable to the taxpayer shall be determined on the basis of the ratio which taxpayer’s revenue interest in the production bears to the aggregate of the revenue interests of all operating interest owners in the production.</text></paragraph> <paragraph id="H96F7BA0B10334F0596E9A301CDC17F22"><enum>(2)</enum><header>Operating interest required</header><text>Any credit under this section may be claimed only on production which is attributable to the holder of an operating interest.</text></paragraph> <paragraph id="HBE70E67A02434D3981A8BC8F8601A6AE"><enum>(3)</enum><header>Production from nonconventional sources excluded</header><text>In the case of production from a qualified marginal well which is eligible for the credit allowed under section 45K for the taxable year, no credit shall be allowable under this section unless the taxpayer elects not to claim the credit under section 45K with respect to the well.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H0CB9D80DE63F4EB0B2ED7009DDCB395"><enum>(b)</enum><header>Credit treated as business credit</header><text>Section 38(b), as amended by this Act, is amended by striking <quote>plus</quote> at the end of paragraph (18), by striking the period at the end of paragraph (19) and inserting <quote>, plus</quote>, and by adding at the end the following:</text> <quoted-block id="H4EF7AF0BC7C4441C9C2B064600688BD3"> <paragraph id="H1DC63D385578487297B3D4B65200C754"><enum>(20)</enum><text>the marginal oil and gas well production credit determined under section 45J(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HAB857831806B4CCA833CA8B238D73BCD"><enum>(c)</enum><header>Carryback</header><text>Subsection (a) of section 39 (relating to carryback and carryforward of unused credits generally) is amended by adding at the end the following:</text> <quoted-block id="H2DF7BAE0A2CC49309CBD7947CC477DE2"> <paragraph id="HF60B3C09B1EE4AC8A73EA65D19405D9D"><enum>(3)</enum><header>5-year carryback for marginal oil and gas well production credit</header><text>Notwithstanding subsection (d), in the case of the marginal oil and gas well production credit—</text> <subparagraph id="HE8935D8785E74928924910C7379134A5"><enum>(A)</enum><text>this section shall be applied separately from the business credit (other than the marginal oil and gas well production credit),</text></subparagraph> <subparagraph id="H368D6422F0064ACE80F953986BBCD800"><enum>(B)</enum><text>paragraph (1) shall be applied by substituting <quote>5 taxable years</quote> for <quote>1 taxable years</quote> in subparagraph (A) thereof, and</text></subparagraph> <subparagraph id="HB89970F713CB425E9DE13748CD8F0800"><enum>(C)</enum><text>paragraph (2) shall be applied—</text> <clause id="HF275C41994C04D0F8F7B0600F81941E5"><enum>(i)</enum><text>by substituting <quote>25 taxable years</quote> for <quote>21 taxable years</quote> in subparagraph (A) thereof, and</text></clause> <clause id="H9F4258662F7C48AF89A95138B62200DE"><enum>(ii)</enum><text>by substituting <quote>24 taxable years</quote> for <quote>20 taxable years</quote> in subparagraph (B) thereof.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H589AAA411A4247F1AD7EAF6C3900F07E"><enum>(d)</enum><header>Clerical amendment</header><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by this Act, is amended by adding at the end the following:</text> <quoted-block style="OLC" id="H7EC5266271BE42788BD589DD5609DC1B"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 45J. Credit for producing oil and gas from marginal wells</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H8CD15DF8111A4100AC27F847C41DFC7F"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to production in taxable years beginning after December 31, 2003.</text></subsection></section> <section id="HD2E4867F5F894C8CB26F07D97275BD6F"><enum>1342.</enum><header>Temporary suspension of limitation based on 65 percent of taxable income and extension of suspension of taxable income limit with respect to marginal production</header> <subsection id="H4CC05A5B90DC4AE4A621C2ED2A4DEAF"><enum>(a)</enum><header>Limitation based on 65 percent of taxable income</header><text>Subsection (d) of section 613A (relating to limitation on percentage depletion in case of oil and gas wells) is amended by adding at the end the following new paragraph:</text> <quoted-block id="H508F4CBCE9284F67968197F433DE7FDA"> <paragraph id="H03CD776CD03C453CBAD0A319017DC22F"><enum>(6)</enum><header>Temporary suspension of taxable income limit</header><text>Paragraph (1) shall not apply to taxable years beginning after December 31, 2003, and before January 1, 2005, including with respect to amounts carried under the second sentence of paragraph (1) to such taxable years.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HAF3570D7F21E411EB66987906544402F"><enum>(b)</enum><header>Extension of suspension of taxable income limit with respect to marginal production</header><text>Subparagraph (H) of section 613A(c)(6) (relating to temporary suspension of taxable income limit with respect to marginal production) is amended by striking <quote>2004</quote> and inserting <quote>2005</quote>.</text></subsection> <subsection id="H7D6943FA217C4FA887F54875674EA8E"><enum>(c)</enum><header>Effective date</header><text>The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2003.</text></subsection></section> <section id="H3B7A4B646D7B4316BE385F4DBC00D672"><enum>1343.</enum><header>Amortization of delay rental payments</header> <subsection id="H328D2DFF8AFB45F8997849CADEA3341C"><enum>(a)</enum><header>In general</header><text>Section 167 (relating to depreciation) is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection:</text> <quoted-block id="HB67B02D299594F5EB0BC95D23586E845"> <subsection id="H9621BAF59F114E20AE69706E97B79B4"><enum>(h)</enum><header>Amortization of delay rental payments for domestic oil and gas wells</header> <paragraph id="H646A870706314A34B17DFBEA8DDC68"><enum>(1)</enum><header>In general</header><text>Any delay rental payment paid or incurred in connection with the development of oil or gas wells within the United States (as defined in section 638) shall be allowed as a deduction ratably over the 24-month period beginning on the date that such payment was paid or incurred.</text></paragraph> <paragraph id="H9DBFE39DCCDA4AEFB1881F7EFEDC29EB"><enum>(2)</enum><header>Half-year convention</header><text>For purposes of paragraph (1), any payment paid or incurred during the taxable year shall be treated as paid or incurred on the mid-point of such taxable year.</text></paragraph> <paragraph id="HEE048FFE6F5F4BC4B3D972ED6F7C24A3"><enum>(3)</enum><header>Exclusive method</header><text>Except as provided in this subsection, no depreciation or amortization deduction shall be allowed with respect to such payments.</text></paragraph> <paragraph id="H7C642C8222A448DBAD694B268687B6C5"><enum>(4)</enum><header>Treatment upon abandonment</header><text>If any property to which a delay rental payment relates is retired or abandoned during the 24-month period described in paragraph (1), no deduction shall be allowed on account of such retirement or abandonment and the amortization deduction under this subsection shall continue with respect to such payment.</text></paragraph> <paragraph id="HAD5B5009309E4052B456905FF620E67"><enum>(5)</enum><header>Delay rental payments</header><text>For purposes of this subsection, the term <term>delay rental payment</term> means an amount paid for the privilege of deferring development of an oil or gas well under an oil or gas lease.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H972CAC6711154FCAAB721251BAE1BE6"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act.</text></subsection></section> <section id="HB39DB7D7DB344E4681DB9D97A890D42B"><enum>1344.</enum><header>Amortization of geological and geophysical expenditures</header> <subsection id="H02227DC37F5B49C69DF6D800FC58C8E5"><enum>(a)</enum><header>In general</header><text>Section 167 (relating to depreciation), as amended by this Act, is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection:</text> <quoted-block id="HDD3CD5D78D95460487008F02052BA7EE"> <subsection id="HC00A3352C8504CB9BCF0327B7FB3AE5F"><enum>(i)</enum><header>Amortization of geological and geophysical expenditures</header> <paragraph id="H43150AF819F547339489EF003800F417"><enum>(1)</enum><header>In general</header><text>Any geological and geophysical expenses paid or incurred in connection with the exploration for, or development of, oil or gas within the United States (as defined in section 638) shall be allowed as a deduction ratably over the 24-month period beginning on the date that such expense was paid or incurred.</text></paragraph> <paragraph id="H65722F1FC8CF4B1F9108329F5C04E1D6"><enum>(2)</enum><header>Special rules</header><text>For purposes of this subsection, rules similar to the rules of paragraphs (2), (3), and (4) of subsection (h) shall apply.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H174B1AE415B946EF8906A044D25C173B"><enum>(b)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/263A">Section 263A(c)(3)</external-xref> is amended by inserting <quote>167(h), 167(i),</quote> after <quote>under section</quote>.</text></subsection> <subsection id="HE3B4E40C5F0843978EAEDDCA2607003E"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act.</text></subsection></section> <section id="HAAD4F2424C8F4559A72B8798257B4CF4"><enum>1345.</enum><header>Extension and modification of credit for producing fuel from a nonconventional source</header> <subsection id="H855C9D03422744B8BEB8DCDB9AE4670"><enum>(a)</enum><header>In general</header><text>Section 29 (relating to credit for producing fuel from a nonconventional source) is amended by adding at the end the following new subsection:</text> <quoted-block id="H5EDED0410F304013BE978BCCC1D568E8"> <subsection id="H27AE09CDA62D4729B5CF25CC4BE5BEC"><enum>(h)</enum><header>Extension for other facilities</header><text>Notwithstanding subsection (f)—</text> <paragraph id="H7E306E2BDBC645C69300A4B8E44CD4D5"><enum>(1)</enum><header>New oil and gas wells and facilities</header><text>In the case of a well or facility for producing qualified fuels described in subparagraph (A) or (B) of subsection (c)(1) which was drilled or placed in service after the date of the enactment of this subsection and before January 1, 2007, this section shall apply with respect to such fuels produced at such well or facility and sold during the period—</text> <subparagraph id="H28629E104EA04F0D97397DF7823E9286"><enum>(A)</enum><text>beginning on the later of January 1, 2004, or the date that such well is drilled or such facility is placed in service, and</text></subparagraph> <subparagraph id="HE684B73D61DE4D92BA9CA570F8CC24A"><enum>(B)</enum><text>ending on the earlier of the date which is 4 years after the date such period began or December 31, 2009.</text></subparagraph></paragraph> <paragraph id="HD4AB51FFE6C4479C95C6705B902439FA"><enum>(2)</enum><header>Old oil and gas wells and facilities</header><text>In the case of a well or facility producing qualified fuels described in subparagraph (A) or (B)(i) of subsection (c)(1) or a facility producing natural gas and byproducts by coal gasification from lignite, subsection (f)(2) shall be applied by substituting <quote>2008</quote> for <quote>2003</quote> with respect to wells and facilities described in subsection (f)(1) with respect to such fuels.</text></paragraph> <paragraph id="H2D94EABA204C4C0DBC1D00F6A1436970"><enum>(3)</enum><header>Extension for facilities producing qualified fuel from landfill gas</header> <subparagraph id="H379CF1D35AC34AB8B8E2004F8B518162"><enum>(A)</enum><header>In general</header><text>In the case of a facility for producing qualified fuel from landfill gas which was placed in service after June 30, 1998, and before January 1, 2007, this section shall apply to fuel produced at such facility and sold during the period—</text> <clause id="H717EDCFDE78E4D7D9FE7DF969F5CDE2"><enum>(i)</enum><text>beginning on the later of January 1, 2004, or the date that such facility is placed in service, and</text></clause> <clause id="HF84DF41077284C7DA3C6C6EF073FEBB4"><enum>(ii)</enum><text>ending on the earlier of the date which is 4 years after the date such period began or December 31, 2009.</text></clause></subparagraph> <subparagraph id="H28EA57AD71484A2700D2DCACA7E25077"><enum>(B)</enum><header>Reduction of credit for certain landfill facilities</header><text>In the case of a facility to which subparagraph (A) applies and which is located at a landfill which is required pursuant to section 60.751(b)(2) or <external-xref legal-doc="cfr" parsable-cite="cfr/40/60.33">section 60.33c</external-xref> of title 40, Code of Federal Regulations (as in effect on April 3, 2003) to install and operate a collection and control system which captures gas generated within the landfill, subsection (a)(1) shall be applied to gas so captured by substituting <quote>$2</quote> for <quote>$3</quote> for the taxable year during which such system is required to be installed and operated.</text></subparagraph></paragraph> <paragraph id="H9DA8FF8080E44E759F006C2566695545"><enum>(4)</enum><header>Facilities producing fuels from agricultural and animal waste</header> <subparagraph id="H8E32C25C0B1D477E0099C46E7BF3D798"><enum>(A)</enum><header>In general</header><text>In the case of any facility for producing liquid, gaseous, or solid fuels from qualified agricultural and animal wastes, including such fuels when used as feedstocks, which is placed in service after the date of the enactment of this subsection and before January 1, 2007, this section shall apply with respect to fuel produced at such facility and sold during the period—</text> <clause id="H323B97C22A5F42CFAB2DD9E1FE110490"><enum>(i)</enum><text>beginning on the later of January 1, 2004, or the date that such facility is placed in service, and</text></clause> <clause id="H1AD64F314485437CBA90D608D8D7657D"><enum>(ii)</enum><text>ending on the earlier of the date which is 4 years after the date such period began or December 31, 2009.</text></clause></subparagraph> <subparagraph id="H2B1319FA2B364CA091D9923882CDE4C"><enum>(B)</enum><header>Qualified agricultural and animal waste</header><text>For purposes of this paragraph, the term <term>qualified agricultural and animal waste</term> means agriculture and animal waste, including by-products, packaging, and any materials associated with the processing, feeding, selling, transporting, or disposal of agricultural or animal products or wastes.</text></subparagraph></paragraph> <paragraph id="HDA806342D7954B0C8337BDDBD92413F1"><enum>(5)</enum><header>Facilities producing refined coal</header> <subparagraph id="H4BF3A99BEEDD46118505EA0B8185CB9"><enum>(A)</enum><header>In general</header><text>In the case of a facility described in subparagraph (C) for producing refined coal which is placed in service after the date of the enactment of this subsection and before January 1, 2008, this section shall apply with respect to fuel produced at such facility and sold before the close of the 5-year period beginning on the date such facility is placed in service.</text></subparagraph> <subparagraph id="HA1B6481F7C604F1B879219D7DC00B496"><enum>(B)</enum><header>Refined coal</header><text>For purposes of this paragraph, the term <term>refined coal</term> means a fuel which is a liquid, gaseous, or solid synthetic fuel produced from coal (including lignite) or high carbon fly ash, including such fuel used as a feedstock.</text></subparagraph> <subparagraph id="HEE976BB418414E5D9DD3FFB0142EBCF5"><enum>(C)</enum><header>Covered facilities</header> <clause id="H090CD7824CE747199B86D50920A40075"><enum>(i)</enum><header>In general</header><text>A facility is described in this subparagraph if such facility produces refined coal using a technology which the taxpayer certifies (in such manner as the Secretary may prescribe) results in—</text> <subclause id="H8A108BF0DB534466AD8150157222BC54"><enum>(I)</enum><text>a qualified emission reduction, and</text></subclause> <subclause id="HF042B83F4F0F4F7F80D4CF743E59A070"><enum>(II)</enum><text>a qualified enhanced value.</text></subclause></clause> <clause id="H6257F08B651245EAA83ED8D9389D487B"><enum>(ii)</enum><header>Qualified emission reduction</header><text>For purposes of this subparagraph, the term <term>qualified emission reduction</term> means a reduction of at least 20 percent of the emissions of nitrogen oxide and either sulfur dioxide or mercury released when burning the refined coal (excluding any dilution caused by materials combined or added during the production process), as compared to the emissions released when burning the feedstock coal or comparable coal predominantly available in the marketplace as of January 1, 2003.</text></clause> <clause id="H4EC290C73FF44CA59407FCC13C159326"><enum>(iii)</enum><header>Qualified enhanced value</header><text>For purposes of this subparagraph, the term <term>qualified enhanced value</term> means an increase of at least 50 percent in the market value of the refined coal (excluding any increase caused by materials combined or added during the production process), as compared to the value of the feedstock coal.</text></clause> <clause id="HCE5DC5709B814C8AA260B8397EAF161D"><enum>(iv)</enum><header>Advanced clean coal technology units excluded</header><text>A facility described in this subparagraph shall not include any advanced clean coal technology unit (as defined in section 48A(e)).</text></clause></subparagraph></paragraph> <paragraph id="H16EE853BC5C0490B9F5214C78F857D33"><enum>(6)</enum><header>Coalmine gas</header> <subparagraph id="HA32516F314C546A3B9D16C6D60194577"><enum>(A)</enum><header>In general</header><text>This section shall apply to coalmine gas—</text> <clause id="H48A76045C4AB4718A1B9DFC4F7D65A2"><enum>(i)</enum><text>captured or extracted by the taxpayer during the period beginning on the day after the date of the enactment of this subsection and ending on December 31, 2006, and</text></clause> <clause id="H8BC06325152543B395B51287E3A5D5E5"><enum>(ii)</enum><text>utilized as a fuel source or sold by or on behalf of the taxpayer to an unrelated person during such period.</text></clause></subparagraph> <subparagraph id="HD5174B80594A413C9388B5D032F0A900"><enum>(B)</enum><header>Coalmine gas</header><text>For purposes of this paragraph, the term <term>coalmine gas</term> means any methane gas which is—</text> <clause id="HA8F08A66FA4741A3965F56202400529D"><enum>(i)</enum><text>liberated during or as a result of coal mining operations, or</text></clause> <clause id="HF3BB4986CDFA4EF4ACB19673D4D9003C"><enum>(ii)</enum><text>extracted up to 10 years in advance of coal mining operations as part of a specific plan to mine a coal deposit.</text></clause></subparagraph> <subparagraph id="HEE7C7D87708C436B852EC09C27C31065"><enum>(C)</enum><header>Special rule for advanced extraction</header><text>In the case of coalmine gas which is captured in advance of coal mining operations, the credit under subsection (a) shall be allowed only after the date the coal extraction occurs in the immediate area where the coalmine gas was removed.</text></subparagraph> <subparagraph id="H12F705005B02433A9156A84C5C486DC0"><enum>(D)</enum><header>Noncompliance with pollution laws</header><text>This paragraph shall not apply to the capture or extraction of coalmine gas from coal mining operations with respect to any period in which such coal mining operations are not in compliance with applicable Federal pollution prevention, control, and permit requirements.</text></subparagraph></paragraph> <paragraph id="H57884C1FBB9846FFAA77F496231EB2F9"><enum>(7)</enum><header>Coke and coke gas</header><text>In the case of a facility for producing coke or coke gas which was placed in service before January 1, 1993, or after June 30, 1998, and before January 1, 2007, this section shall apply with respect to coke and coke gas produced in such facility and sold during the during the period—</text> <subparagraph id="H53FF8A4ED0FA4CFBB600F9D30028E200"><enum>(A)</enum><text>beginning on the later of January 1, 2004, or the date that such facility is placed in service, and</text></subparagraph> <subparagraph id="HC92F5DAF4D8C4B80918855005E5046A6"><enum>(B)</enum><text>ending on the earlier of the date which is 4 years after the date such period began or December 31, 2009.</text></subparagraph></paragraph> <paragraph id="HAE630BF600214971BF0047FC34AEC948"><enum>(8)</enum><header>Special rules</header><text>In determining the amount of credit allowable under this section solely by reason of this subsection—</text> <subparagraph id="HF7CF46DB49084F1CA6AB5438D28DFA2"><enum>(A)</enum><header>Fuels treated as qualified fuels</header><text>Any fuel described in paragraph (3), (4), (5), or (6) shall be treated as a qualified fuel for purposes of this section.</text></subparagraph> <subparagraph id="H9E0FF524CAF24E8AB3A17261047A34"><enum>(B)</enum><header>Daily limit</header><text>The amount of qualified fuels sold during any taxable year which may be taken into account by reason of this subsection with respect to any property or facility shall not exceed an average barrel-of-oil equivalent of 200,000 cubic feet of natural gas per day. Days before the date the property or facility is placed in service shall not be taken into account in determining such average.</text></subparagraph> <subparagraph id="HDEDB4DEC640D4590B17B53B645861E5D"><enum>(C)</enum><header>Extension period to commence with unadjusted credit amount and new phaseout adjustment</header><text>For purposes of applying subsection (b)(2), in the case of fuels sold after 2003—</text> <clause id="H94699D842BA340E280BD095F8343B3D0"><enum>(i)</enum><text>paragraphs (1)(A) and (2) of subsection (b) shall be applied by substituting <quote>$35.00</quote> for <quote>$23.50</quote>, and</text></clause> <clause id="HE573352557F04781B1A061516912EB3"><enum>(ii)</enum><text>subparagraph (B) of subsection (d)(2) shall be applied by substituting <quote>2002</quote> for <quote>1979</quote>.</text></clause></subparagraph> <subparagraph id="HF37F6AE4CE974EA8BA35A2D407CB2325"><enum>(D)</enum><header>Denial of double benefit</header><text>This subsection shall not apply to any facility producing qualified fuels for which a credit was allowed under this section for the taxable year or any preceding taxable year by reason of subsection (g).</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HEA59A88486F445ADB13E00B007A8B6F4"><enum>(b)</enum><header>Treatment as business credit</header> <paragraph id="H4272610EAB874203A901BF00E3950F2"><enum>(1)</enum><header>Credit moved to subpart relating to business related credits</header><text>The Internal Revenue Code of 1986 is amended by redesignating section 29, as amended by this Act, as section 45K and by moving section 45K (as so redesignated) from subpart B of part IV of subchapter A of chapter 1 to the end of subpart D of part IV of subchapter A of chapter 1.</text></paragraph> <paragraph id="H9A47FEE7AFFC451481FCFBC715F83700"><enum>(2)</enum><header>Credit treated as business credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(b)</external-xref> is amended by striking <quote>plus</quote> at the end of paragraph (19), by striking the period at the end of paragraph (20) and inserting <quote>, plus</quote>, and by adding at the end the following:</text> <quoted-block id="H512DC3411A2346EA99142C482EF47FBF"> <paragraph id="H155D678291E8473500D25EF3872E53E3"><enum>(21)</enum><text>the nonconventional source production credit determined under section 45K(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H1D89C7327C554918BD9EB4BA00A867A1"><enum>(3)</enum><header>Conforming amendments</header> <subparagraph id="H43F5191BA5E64578BFF1278C42F8E341"><enum>(A)</enum><text>Section 30(b)(2)(A), as redesignated by <external-xref legal-doc="usc" parsable-cite="usc/26/1317">section 1317(a),</external-xref> is amended by striking <quote>sections 27 and 29</quote> and inserting <quote>section 27</quote>.</text></subparagraph> <subparagraph id="H85C50E8F28A741D683C500A7E6CFA19"><enum>(B)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/43">Sections 43(b)(2)</external-xref> and <external-xref legal-doc="usc" parsable-cite="usc/26/613A"> 613A(c)(6)(C)</external-xref> are each amended by striking <quote>section 29(d)(2)(C)</quote> and inserting <quote>section 45K(d)(2)(C)</quote>.</text></subparagraph> <subparagraph id="H5DD54E054C254E14A1EF51D44555F001"><enum>(C)</enum><text>Section 45K(a), as redesignated by paragraph (1), is amended by striking <quote>At the election of the taxpayer, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year</quote> and inserting <quote>For purposes of section 38, if the taxpayer elects to have this section apply, the nonconventional source production credit determined under this section for the taxable year is</quote>.</text></subparagraph> <subparagraph id="H7C6F99C148B84F9CB8D30099D88F58C"><enum>(D)</enum><text>Section 45K(b), as so redesignated, is amended by striking paragraph (6).</text></subparagraph> <subparagraph id="HE0BB7E0035F64E11BAB7334ECDC467F0"><enum>(E)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/53">Section 53(d)(1)(B)(iii)</external-xref> is amended by striking <quote>under section 29</quote> and all that follows through <quote>or not allowed</quote>.</text></subparagraph> <subparagraph id="H843B4E5001394ABE9403F555A2BCAC38"><enum>(F)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/55">Section 55(c)(2)</external-xref> is amended by striking <quote>29(b)(6),</quote>.</text></subparagraph> <subparagraph id="H8A14AD198B634CF79245664E477E572D"><enum>(G)</enum><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/26/772">section 772</external-xref> is amended by inserting <quote>and</quote> at the end of paragraph (9), by striking paragraph (10), and by redesignating paragraph (11) as paragraph (10).</text></subparagraph> <subparagraph id="HBBA8F637851E495F80A800422C479CF3"><enum>(H)</enum><text>Paragraph (5) of <external-xref legal-doc="usc" parsable-cite="usc/26/772">section 772(d)</external-xref> is amended by striking <quote>the foreign tax credit, and the credit allowable under section 29</quote> and inserting <quote>and the foreign tax credit</quote>.</text></subparagraph> <subparagraph id="H2292C544FCE54ECE96B4F3D745D4DCB9"><enum>(I)</enum><text>The table of sections for subpart B of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking the item relating to section 29.</text></subparagraph> <subparagraph id="H69A1669F250E426B9671AF0441A710E2"><enum>(J)</enum><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by this Act, is amended by inserting after the item relating to section 45J the following new item:</text> <quoted-block style="OLC" id="H49E8F63CB4074D4BB336D5A902E234E1"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 45K. Credit for producing fuel from a nonconventional source</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection> <subsection id="HD819D75F1B8C4627BDCF50417019CD8"><enum>(c)</enum><header>Determinations under Natural Gas Policy Act of 1978</header><text>Subparagraph (A) of section 45K(c)(2), as redesignated by subsection (b)(1), is amended—</text> <paragraph id="H4A12F656D91E41D78F94526384FD0075"><enum>(1)</enum><text>by inserting <quote>by the Secretary, after consultation with the Federal Energy Regulatory Commission,</quote> after <quote>shall be made</quote>, and</text></paragraph> <paragraph id="HC3746F3EB334419694F002F5C8D9F911"><enum>(2)</enum><text>by inserting <quote>(as in effect before the repeal of such section)</quote> after <quote>1978</quote>.</text></paragraph></subsection> <subsection id="HBF4E2D4CBE064743AD00B3B62DF99471"><enum>(d)</enum><header>Effective dates</header> <paragraph id="H5CFC2EB222BB43598B0086B54C4B93F3"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the amendments made by this section shall apply to fuel produced and sold after December 31, 2003, in taxable years ending after such date.</text></paragraph> <paragraph id="HD6AADBC3D8A44AC09E106FBC750040DD"><enum>(2)</enum><header>Determinations under Natural Gas Policy Act of 1978</header><text>The amendments made by subsection (c) shall apply as if included in the provisions repealing section 503 of the Natural Gas Policy Act of 1978.</text></paragraph></subsection></section></part> <part id="H2E39DAEE8AE64D12B5EBFA0032CAF572"><enum>II</enum><header>Alternative minimum tax provisions</header> <section id="HBABE099E77904DE296622100193E8CF2"><enum>1346.</enum><header>New nonrefundable personal credits allowed against regular and minimum taxes</header> <subsection id="H76C4FC48D9004978A15BB49DE59B65D7"><enum>(a)</enum><header>In general</header> <paragraph id="H7AFAB94009DD4FEEAE624BBB8C924D29"><enum>(1)</enum><header>Section 25C</header><text>Section 25C(b), as added by section 1301 of this Act, is amended by adding at the end the following new paragraph:</text> <quoted-block id="H1412C9D44A1D406F964E3F7B9CB4D208"> <paragraph id="H9EAF4ECDEE8241A68B21FDD8A9D7D7C"><enum>(3)</enum><header>Limitation based on amount of tax</header><text>The credit allowed under subsection (a) for the taxable year shall not exceed the excess of—</text> <subparagraph id="HAA90AC346C43418CB4173FA1F5FD04C2"><enum>(A)</enum><text>the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over</text></subparagraph> <subparagraph id="HCBDF3E213380457791CC3BAFE45EB9B6"><enum>(B)</enum><text>the sum of the credits allowable under this subpart (other than this section and section 25D) and section 27 for the taxable year.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H767B115F8B9B4C0F8D81E36B7BD3C911"><enum>(2)</enum><header>Section 25D</header><text>Section 25D(b), as added by section 1304 of this Act, is amended by adding at the end the following new paragraph:</text> <quoted-block id="H8DF1F3BCA6254F58A2E562B56513C430"> <paragraph id="HBBAAD260B0294A0BB9EDAF39760612B0"><enum>(3)</enum><header>Limitation based on amount of tax</header><text>The credit allowed under subsection (a) for the taxable year shall not exceed the excess of—</text> <subparagraph id="HDC326192B1344679A407F63E2EF2411F"><enum>(A)</enum><text>the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over</text></subparagraph> <subparagraph id="HF0BC1D34EB2E4F2CB0005F52B9089E8"><enum>(B)</enum><text>the sum of the credits allowable under this subpart (other than this section) and section 27 for the taxable year.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H9161EED8348844CAA2DD1D8774A04B10"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H32C11C29C7284C8D86A4FB55C687BB1B"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/23">Section 23(b)(4)(B)</external-xref> is amended by inserting <quote>and sections 25C and 25D</quote> after <quote>this section</quote>.</text></paragraph> <paragraph id="H4D6B6ECCD188432396FAABBC8F33A5F2"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/24">Section 24(b)(3)(B)</external-xref> is amended by striking <quote>and 25B</quote> and inserting <quote>, 25B, 25C, and 25D</quote>.</text></paragraph> <paragraph id="H07FB8A75DD4D483E845402B831E75200"><enum>(3)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/25">Section 25(e)(1)(C)</external-xref> is amended by inserting <quote>25C, and 25D</quote> after <quote>25B,</quote>.</text></paragraph> <paragraph id="H047113378595495D904F680046AA00C1"><enum>(4)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/25B">Section 25B(g)(2)</external-xref> is amended by striking <quote>section 23</quote> and inserting <quote>sections 23, 25C, and 25D</quote>.</text></paragraph> <paragraph id="H0CF5EE40CBAE4882BB885F8927E79BDB"><enum>(5)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/26">Section 26(a)(1)</external-xref> is amended by striking <quote>and 25B</quote> and inserting <quote>25B, 25C, and 25D</quote>.</text></paragraph> <paragraph id="H2AFC562131124D16B5E4722926DB80E9"><enum>(6)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/904">Section 904(h)</external-xref> is amended by striking <quote>and 25B</quote> and inserting <quote>25B, 25C, and 25D</quote>.</text></paragraph> <paragraph id="H5DE90C00190B45139D11E535DAC9C3FB"><enum>(7)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/1400C">Section 1400C(d)</external-xref> is amended by striking <quote>and 25B</quote> and inserting <quote>25B, 25C, and 25D</quote>.</text></paragraph></subsection> <subsection id="H223670F0629F44C2AD538C8D08C72396"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2003.</text></subsection></section> <section id="HB706054038D34E2ABF407E2492A806D8"><enum>1347.</enum><header>Business related energy credits allowed against regular and minimum tax</header> <subsection id="HF804A0891CE14B1088D455B7362523E3"><enum>(a)</enum><header>In general</header><text>Subsection (c) of section 38 (relating to limitation based on amount of tax) is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph:</text> <quoted-block id="H21385645D0844E559D11CEC489F25431"> <paragraph id="HB479BB5AE3F34DAA8D47048C66366FBE"><enum>(4)</enum><header>Special rules for specified energy credits</header> <subparagraph id="H5C8E286E1E6A4B77A1A89221DFC26000"><enum>(A)</enum><header>In general</header><text>In the case of specified energy credits—</text> <clause id="H41DD22253AF34604A1EAA19C20000B3"><enum>(i)</enum><text>this section and section 39 shall be applied separately with respect to such credits, and</text></clause> <clause id="HA3EB65A50D434EEE8B0244798C82BB79"><enum>(ii)</enum><text>in applying paragraph (1) to such credits—</text> <subclause id="H2FA9CC5E7A674208B42EF30000C799A"><enum>(I)</enum><text>the tentative minimum tax shall be treated as being zero, and</text></subclause> <subclause id="H07EE961B349C4CACA56D9EFFE970DC53"><enum>(II)</enum><text>the limitation under paragraph (1) (as modified by subclause (I)) shall be reduced by the credit allowed under subsection (a) for the taxable year (other than the specified energy credits).</text></subclause></clause></subparagraph> <subparagraph id="H850F31A3B57B4C23BDAAB1A4DDF8E51"><enum>(B)</enum><header>Specified energy credits</header><text>For purposes of this subsection, the term <term>specified energy credits</term> means the credits determined under sections 45G, 45H, 45I, and 45J. For taxable years beginning after December 31, 2003, such term includes the credit determined under section 40. For taxable years beginning after December 31, 2003, and before January 1, 2006, such term includes the credit determined under section 43.</text></subparagraph> <subparagraph id="H4410DB92DD774700899106749E284EFE"><enum>(C)</enum><header>Special rule for electricity produced from qualified facilities</header><text>For purposes of this subsection, the term <term>specified energy credits</term> shall include the credit determined under section 45 to the extent that such credit is attributable to electricity produced—</text> <clause id="HFEA77431A2754C2D8B8EF0F326A3B9A9"><enum>(i)</enum><text>at a facility which is originally placed in service after the date of the enactment of this paragraph, and</text></clause> <clause id="H98CB3B6B20B5439E9500F047F0923E"><enum>(ii)</enum><text>during the 4-year period beginning on the date that such facility was originally placed in service.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H713B9C9737BC4EDEB6669D88C6D2E5D1"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="H58BAA8CF0D054FE195ECE328CE15290"><enum>(1)</enum><text>Paragraph (2)(A)(ii)(II) of <external-xref legal-doc="usc" parsable-cite="usc/26/38">section 38(c)</external-xref> is amended by striking <quote>or</quote> and inserting a comma and by inserting <quote>, and the specified energy credits</quote> after <quote>employee credit</quote>.</text></paragraph> <paragraph id="H0D8A157877C54B68A00939496DA7630"><enum>(2)</enum><text>Paragraph (3)(A)(ii)(II) of <external-xref legal-doc="usc" parsable-cite="usc/26/38">section 38(c)</external-xref> is amended by inserting <quote>and the specified energy credits</quote> after <quote>employee credit</quote>.</text></paragraph></subsection> <subsection id="HCFDC6470D30047BD00FA8B1994C4B3A5"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.</text></subsection></section> <section id="H491F113690404F5C8D03B7005007B700"><enum>1348.</enum><header>Temporary repeal of alternative minimum tax preference for intangible drilling costs</header> <subsection id="H94375B1B18B24DACB5BC3DA6F9CABDE"><enum>(a)</enum><header>In general</header><text>Clause (ii) of <external-xref legal-doc="usc" parsable-cite="usc/26/57">section 57(a)(2)(E)</external-xref> is amended by adding at the end the following new sentence: <quote>The preceding sentence shall not apply to taxable years beginning after December 31, 2003, and before January 1, 2006.</quote>.</text></subsection> <subsection id="HA6ECA9CA28E14FAFA815E586CDC0366"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2003.</text></subsection></section></part> <part id="H6E632D235B904D0FA8FACCEAB5DF2F8F"><enum>III</enum><header>Clean coal incentives</header> <section id="H7C67CAEE6FEA496CBA56BF3F2FBCE1D"><enum>1351.</enum><header>Credit for clean coal technology units</header> <subsection id="HEF7AF2601340484ABFA1458039B015D9"><enum>(a)</enum><header>In general</header><text>Subpart E of part IV of subchapter A of chapter 1 (relating to rules for computing investment credit) is amended by inserting after section 48 the following new section:</text> <quoted-block id="H78558A557BE14DA98F458EEC31CFFB33"> <section id="H4AFB38A2F5F14751B8B499B836EB3023"><enum>48A.</enum><header>Clean coal technology credit</header> <subsection id="HA2ADB0A3C0D54C8FBCE57292E3000928"><enum>(a)</enum><header>In general</header><text>For purposes of section 46, the clean coal technology credit for any taxable year is an amount equal to the applicable percentage of the basis of qualified clean coal property placed in service during such year.</text></subsection> <subsection id="H8DEA4DE16B8C43BF00E7B9762A0A600"><enum>(b)</enum><header>Applicable percentage</header><text>For purposes of this section, the applicable percentage is—</text> <paragraph id="H7DB531DF1B4B40878138DF078141EF87"><enum>(1)</enum><text>15 percent in the case of property placed in service in connection with any basic clean coal technology unit, and</text></paragraph> <paragraph id="HCCCBA013C0DB4DF1B198E6685EFD4CCF"><enum>(2)</enum><text>17.5 percent in the case of property placed in service in connection with any advanced clean coal technology unit.</text></paragraph></subsection> <subsection id="H2B567E81AFE3493C9881283BE028D6D2"><enum>(c)</enum><header>Qualified clean coal property</header><text>For purposes of this section—</text> <paragraph id="HB200194E26AE46E59D8C1F10613D59CE"><enum>(1)</enum><header>In general</header><text>The term <term>qualified clean coal property</term> means section 1245 property—</text> <subparagraph id="HF29FB64833ED4EFBB88F3EA723F98372"><enum>(A)</enum><text>which is installed in connection with—</text> <clause id="HEF5C277DE8F84E418BED2B7C6BB7A70"><enum>(i)</enum><text>an existing coal-based unit as part of the conversion of such unit to any basic or advanced clean coal technology unit, or</text></clause> <clause id="H6665DE5D177E40FA90E4BB748BEB6BA2"><enum>(ii)</enum><text>any new advanced clean coal technology unit,</text></clause></subparagraph> <subparagraph id="H5C8A8F63BE174318BB8D9B842CEF44B0"><enum>(B)</enum><text>which is placed in service after December 31, 2003, and before—</text> <clause id="H418D3E6DDD3C4B61945F96D966AE034F"><enum>(i)</enum><text>in the case of property to which subsection (b)(1) applies, January 1, 2014, and</text></clause> <clause id="H257801205B054AFB82CBB198D30251F8"><enum>(ii)</enum><text>in the case of property to which subsection (b)(2) applies, January 1, 2017 (January 1, 2013, in the case of property installed in connection with an eligible advanced pulverized coal or atmospheric fluidized bed combustion technology unit),</text></clause></subparagraph> <subparagraph id="HE2FE547CA0EF4BBFA7287BDCFF186F9D"><enum>(C)</enum><text>the original use of which commences with the taxpayer, and</text></subparagraph> <subparagraph id="H2CEC198CF4964A7F9173A912FFE79C41"><enum>(D)</enum><text>which has a useful life of not less than 4 years.</text></subparagraph></paragraph> <paragraph id="H246AAE3AC5AE40D3BC758881B05B7100"><enum>(2)</enum><header>Existing coal-based unit</header><text>The term <term>existing coal-based unit</term> means a coal-based electricity generating steam generator-turbine unit—</text> <subparagraph id="HC8580C5BB74C4D6895DFA64F004D6CF0"><enum>(A)</enum><text>which is not a basic or advanced clean coal technology unit, and</text></subparagraph> <subparagraph id="HEDB06F565217425DA0CD131BD4D51044"><enum>(B)</enum><text>which is in operation on or before January 1, 2004.</text></subparagraph><continuation-text continuation-text-level="paragraph">In the case of a unit being converted to a basic clean coal technology unit, such term shall not include a unit having a nameplate capacity rating of more than 300 megawatts.</continuation-text></paragraph> <paragraph id="H9670CA7A954C4674A32F5BC4E97EA100"><enum>(3)</enum><header>New advanced clean coal technology unit</header><text>The term <term>new advanced clean coal technology unit</term> means any advanced clean coal technology unit which is placed in service after December 31, 2003, and the original use of which commences with the taxpayer.</text></paragraph></subsection> <subsection id="HB4725441C807442091313D6156AAB91"><enum>(d)</enum><header>Basic clean coal technology unit</header><text>For purposes of this section—</text> <paragraph id="H8DF54D0E64174BF383B413777697F1BE"><enum>(1)</enum><header>In general</header><text>The term <term>basic clean coal technology unit</term> means a unit which—</text> <subparagraph id="H5AFB39AB532C4114B21933015C3CA21E"><enum>(A)</enum><text>uses clean coal technology (including advanced pulverized coal or atmospheric fluidized bed combustion, pressurized fluidized bed combustion, and integrated gasification combined cycle) for the production of electricity,</text></subparagraph> <subparagraph id="H334E7C1590E04939AEAEFDCB7D68A796"><enum>(B)</enum><text>uses an input of at least 75 percent coal to produce at least 50 percent of its thermal output as electricity,</text></subparagraph> <subparagraph id="HA4A0A768602C434700206D8189B7E46F"><enum>(C)</enum><text>has a design net heat rate of at least 500 less than that of the existing coal-based unit prior to its conversion,</text></subparagraph> <subparagraph id="H0614AB1DD07445BD81DDFBF79F38070"><enum>(D)</enum><text>has a maximum design net heat rate of not more than 9,500, and</text></subparagraph> <subparagraph id="HF2DC4DA2BB474E9C88C7BE629DC3AE91"><enum>(E)</enum><text>meets the pollution control requirements of paragraph (2).</text></subparagraph><continuation-text continuation-text-level="paragraph">Such term shall not include an advanced clean coal technology unit.</continuation-text></paragraph> <paragraph id="H475B6E56E6C14FC68EAE49C47D5636C7"><enum>(2)</enum><header>Pollution control requirements</header> <subparagraph id="H79E09AF952D04E54B681FA08C8E90746"><enum>(A)</enum><header>In general</header><text>A unit meets the requirements of this paragraph if—</text> <clause id="HCCA0CBAB2BB8433DBB99B15F4BD6D4A4"><enum>(i)</enum><text>its emissions of sulfur dioxide, nitrogen oxide, or particulates meet the lower of the emission levels for each such emission specified in—</text> <subclause id="HCA40BF6CB8C14CDC9CAC431DE9EFEBBC"><enum>(I)</enum><text>subparagraph (B), or</text></subclause> <subclause id="H190AF99498904C46B381330076526271"><enum>(II)</enum><text>the new source performance standards of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7411">42 U.S.C. 7411</external-xref>) which are in effect for the category of source at the time of the conversion of the unit, and</text></subclause></clause> <clause id="H36E8137950CD420E99BC059B74F8267F"><enum>(ii)</enum><text>its emissions do not exceed any relevant emission level specified by regulation pursuant to the hazardous air pollutant requirements of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7412">42 U.S.C. 7412</external-xref>) in effect at the time of the conversion of the unit.</text></clause></subparagraph> <subparagraph id="H48F9DB786BC1404EAA4C43225D080168"><enum>(B)</enum><header>Specific levels</header><text>The levels specified in this subparagraph are—</text> <clause id="HDD3B56BB77EB4EDC95110430C7B73399"><enum>(i)</enum><text>in the case of sulfur dioxide emissions, 50 percent of the sulfur dioxide emission levels specified in the new source performance standards of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7411">42 U.S.C. 7411</external-xref>) in effect on the date of the enactment of this section for the category of source,</text></clause> <clause id="H993F489C63624FA89500E77B963FE0D4"><enum>(ii)</enum><text>in the case of nitrogen oxide emissions—</text> <subclause id="H7B99A5A3D00D491790B71891E1676B47"><enum>(I)</enum><text>0.1 pound per million Btu of heat input if the unit is not a cyclone-fired boiler, and</text></subclause> <subclause id="H1360C629A86046139774A7D204AA25DA"><enum>(II)</enum><text>if the unit is a cyclone-fired boiler, 15 percent of the uncontrolled nitrogen oxide emissions from such boilers, and</text></subclause></clause> <clause id="H245B188A73B142F2916BEF3EE8AB9508"><enum>(iii)</enum><text>in the case of particulate emissions, 0.02 pound per million Btu of heat input.</text></clause></subparagraph></paragraph> <paragraph id="HB1A382C349914EEFA49EB7A22E93A158"><enum>(3)</enum><header>Design net heat rate</header><text>The design net heat rate with respect to any unit, measured in Btu per kilowatt hour (HHV)—</text> <subparagraph id="H6E89ACA4A11349B28DD4205EAB3C8877"><enum>(A)</enum><text>shall be based on the design annual heat input to and the design annual net electrical power, fuels, and chemicals output from such unit (determined without regard to such unit’s co-generation of steam),</text></subparagraph> <subparagraph id="HCC15A745530041A7969D98CEFB3500"><enum>(B)</enum><text>shall be adjusted for the heat content of the design coal to be used by the unit if it is less than 12,000 Btu per pound according to the following formula:</text></subparagraph> <subparagraph id="H42240421477C4B26B56145CA61BE444E"><enum>(C)</enum><text>shall be corrected for the site reference conditions of—</text> <clause id="HC91555F64EDA44AFA5E89D00696F67B9"><enum>(i)</enum><text>elevation above sea level of 500 feet,</text></clause> <clause id="H6133F3A9F8BC4AEFA35996C6C511FDD1"><enum>(ii)</enum><text>air pressure of 14.4 pounds per square inch absolute (psia),</text></clause> <clause id="HA3075105EAAA4B1AAEF2759C4DC6955E"><enum>(iii)</enum><text>temperature, dry bulb of 63°F,</text></clause> <clause id="H6F182FF9FA3C4CBE96B294536EC7DB44"><enum>(iv)</enum><text>temperature, wet bulb of 54°F, and</text></clause> <clause id="HF8FC7CCDDD944C19B490ED23DD35BA26"><enum>(v)</enum><text>relative humidity of 55 percent, and</text></clause></subparagraph> <subparagraph id="H39F6F1A9D8174A7E8429D39F85F1C9F"><enum>(D)</enum><text>if carbon capture controls have been installed with respect to any existing coal-based unit and such controls remove at least 50 percent of the unit’s carbon dioxide emissions, shall be adjusted up to the design heat rate level which would have resulted without the installation of such controls.</text></subparagraph></paragraph> <paragraph id="H380BFF23AE8C4104A897FF3832584CDB"><enum>(4)</enum><header>HHV</header><text>The term <term>HHV</term> means higher heating value.</text></paragraph></subsection> <subsection id="H0627776DA46E4FA281DB3C00EC5B5059"><enum>(e)</enum><header>Advanced clean coal technology unit</header><text>For purposes of this section—</text> <paragraph id="HE0BAC6FDF4594C4F8B60A7C3EB0088A6"><enum>(1)</enum><header>In general</header><text>The term <term>advanced clean coal technology unit</term> means any electricity generating unit of the taxpayer—</text> <subparagraph id="H2BF53D14A6BC4A50A9847B484F40EFDC"><enum>(A)</enum><text>which is—</text> <clause id="H92674E1BEE9F4740A82201BFA808DD1E"><enum>(i)</enum><text>an eligible advanced pulverized coal or atmospheric fluidized bed combustion technology unit,</text></clause> <clause id="HD80E471CE6ED41FE93D70026F8745300"><enum>(ii)</enum><text>an eligible pressurized fluidized bed combustion technology unit,</text></clause> <clause id="H249F9F57EA334064992413EEE12638F"><enum>(iii)</enum><text>an eligible integrated gasification combined cycle technology unit, or</text></clause> <clause id="H256C3344492541C4A053D83F43563CBB"><enum>(iv)</enum><text>an eligible other technology unit,</text></clause></subparagraph> <subparagraph id="H088F8E4E4E244C24806E1E0583BF3C1B"><enum>(B)</enum><text>which uses an input of at least 75 percent coal to produce at least 50 percent of its thermal output as electricity, and</text></subparagraph> <subparagraph id="H79B5F919220348E08B56D6142E4DF17E"><enum>(C)</enum><text>which meets the carbon emission rate requirements of paragraph (6).</text></subparagraph></paragraph> <paragraph id="HE20603F8BE3745BDB34F114C88E216D2"><enum>(2)</enum><header>Eligible advanced pulverized coal or atmospheric fluidized bed combustion technology unit</header><text>The term <term>eligible advanced pulverized coal or atmospheric fluidized bed combustion technology unit</term> means a clean coal technology unit using advanced pulverized coal or atmospheric fluidized bed combustion technology which has a design net heat rate of not more than 8,500 (8,900 in the case of units placed in service before 2009).</text></paragraph> <paragraph id="H4341F52A6CF84EC7B2D74435EBBAD147"><enum>(3)</enum><header>Eligible pressurized fluidized bed combustion technology unit</header><text>The term <term>eligible pressurized fluidized bed combustion technology unit</term> means a clean coal technology unit using pressurized fluidized bed combustion technology which has a design net heat rate of not more than 7,720 (8,900 in the case of units placed in service before 2009, and 8,500 in the case of units placed in service after 2008 and before 2013).</text></paragraph> <paragraph id="H725F5BF1E994413BA4467DF2BD11BA9F"><enum>(4)</enum><header>Eligible integrated gasification combined cycle technology unit</header><text>The term <term>eligible integrated gasification combined cycle technology unit</term> means a clean coal technology unit using integrated gasification combined cycle technology, with or without fuel or chemical co-production—</text> <subparagraph id="H9AA3700CBD384FDF8E82FCCC4D084DF5"><enum>(A)</enum><text>which has a design net heat rate of not more than 7,720 (8,900 in the case of units placed in service before 2009, and 8,500 in the case of units placed in service after 2008 and before 2013), and</text></subparagraph> <subparagraph id="H39989856193B46C7A3140037C051284E"><enum>(B)</enum><text>has a net thermal efficiency (HHV) using coal with fuel or chemical co-production of not less than 44.2 percent (38.4 percent in the case of units placed in service before 2009, and 40.2 percent in the case of units placed in service after 2008 and before 2013).</text></subparagraph></paragraph> <paragraph id="HC89FF9F4A15244C4A53EDB860081A0F1"><enum>(5)</enum><header>Eligible other technology unit</header><text>The term <term>eligible other technology unit</term> means a clean coal technology unit—</text> <subparagraph id="HB7913A5F47D7487EBD05E0B15C909E9C"><enum>(A)</enum><text>which uses any other technology for the production of electricity, and</text></subparagraph> <subparagraph id="H6F13269153C747439DC5A2F60298E98B"><enum>(B)</enum><text>which has a design net heat rate which meets the requirement of paragraph (2).</text></subparagraph></paragraph> <paragraph id="H7AD15455055D4D8600309B3308FFD6B"><enum>(6)</enum><header>Carbon emission rate requirements</header> <subparagraph id="H53A7CB92D9504990B32C709700E46FC1"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), a unit meets the requirements of this paragraph if—</text> <clause id="H66937C08416A4829A9BF435300247972"><enum>(i)</enum><text>in the case of a unit using design coal with a heat content of not more than 9,000 Btu per pound, the carbon emission rate is less than 0.60 pound of carbon per kilowatt hour, and</text></clause> <clause id="HC873EE3CD30C43719075D9DA845254B6"><enum>(ii)</enum><text>in the case of a unit using design coal with a heat content of more than 9,000 Btu per pound, the carbon emission rate is less than 0.54 pound of carbon per kilowatt hour.</text></clause></subparagraph> <subparagraph id="H558C248FD1FA44AE82F632F1327CCED"><enum>(B)</enum><header>Eligible other technology unit</header><text>In the case of an eligible other technology unit, subparagraph (A) shall be applied by substituting <quote>0.51</quote> and <quote>0.459</quote> for <quote>0.60</quote> and <quote>0.54</quote>, respectively.</text></subparagraph></paragraph></subsection> <subsection id="H16D5C80F8E9145769FF5144065BF0894"><enum>(f)</enum><header>National limitations on credit</header><text>For purposes of this section—</text> <paragraph id="H77E2E86A540A44A39EA7D0C3E3CE02DC"><enum>(1)</enum><header>In general</header><text>The amount of credit which would (but for this subsection) be allowed with respect to any property shall not exceed the amount which bears the same ratio to such amount of credit as—</text> <subparagraph id="H1F9543C123EC45CB924700BA14B49C3D"><enum>(A)</enum><text>the national megawatt capacity limitation allocated to the taxpayer with respect to the basic or advanced clean coal technology unit to which such property relates, bears to</text></subparagraph> <subparagraph id="H360F3518B614442585A0CEF0EBCC078C"><enum>(B)</enum><text>the total megawatt capacity of such unit.</text></subparagraph><continuation-text continuation-text-level="paragraph">The capacity described in subparagraph (B) shall be the reasonably expected capacity after the installation of the property.</continuation-text></paragraph> <paragraph id="H1F5E7DF97FEA4B1AB85EEA9D145B8FCD"><enum>(2)</enum><header>Amount of national limitation</header> <subparagraph id="H5EF95650956F42CBA5FF6D9787B100A6"><enum>(A)</enum><header>Advanced units</header><text>The national megawatt capacity limitation for advanced clean coal technology units shall be 6,000 megawatts. Of such amount, the national megawatt capacity limitation is—</text> <clause id="H9EF495662F194671AD7808E67C2FD19F"><enum>(i)</enum><text>for advanced clean coal technology units using advanced pulverized coal or atmospheric fluidized bed combustion technology, not more than 1,500 megawatts (not more than 750 megawatts in the case of units placed in service before 2009),</text></clause> <clause id="HD678A796D08B4EFBAE90F5FB916397F9"><enum>(ii)</enum><text>for such units using pressurized fluidized bed combustion technology, not more than 750 megawatts (not more than 375 megawatts in the case of units placed in service before 2009),</text></clause> <clause id="H3DFC1CA447CB44A7B893C544AEF15C80"><enum>(iii)</enum><text>for such units using integrated gasification combined cycle technology, with or without fuel or chemical co-production, not more than 3,000 megawatts (not more than 1,250 megawatts in the case of units placed in service before 2009), and</text></clause> <clause id="HB158C7A36BBA4C6FB01F86CB6331B810"><enum>(iv)</enum><text>for such units using other technology for the production of electricity, not more than 750 megawatts (not more than 375 megawatts in the case of units placed in service before 2009).</text></clause></subparagraph> <subparagraph id="HDCBB76BD5D8A41DEB3AD94EF06E2AF15"><enum>(B)</enum><header>Basic units</header><text>The national megawatt capacity limitation for basic clean coal technology units shall be 4,000 megawatts.</text></subparagraph></paragraph> <paragraph id="H58547F0005064EABB0DF962BA4EECDB8"><enum>(3)</enum><header>Allocation of limitation</header><text>The Secretary shall allocate the national megawatt capacity limitations in such manner as the Secretary may prescribe, except that the Secretary may not allocate more than 300 megawatts to any basic clean coal technology unit.</text></paragraph> <paragraph id="H16BCF299C6C44EA4B0561519272DF95D"><enum>(4)</enum><header>Regulations</header><text>Not later than 6 months after the date of the enactment of this section, the Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this subsection. Such regulations shall provide a certification process under which the Secretary, after consultation with the Secretary of Energy, shall approve and allocate the national megawatt capacity limitations—</text> <subparagraph id="HE41E6CF840AC4BB69D6BF516B8371E8B"><enum>(A)</enum><text>to encourage that units with the highest thermal efficiencies, when adjusted for the heat content of the design coal and site reference conditions, and environmental performance, be placed in service as soon as possible, and</text></subparagraph> <subparagraph id="H0408F14A44714712AA852E00B5E0269F"><enum>(B)</enum><text>to allocate capacity to taxpayers which have a definite and credible plan for placing into commercial operation a basic or advanced clean coal technology unit, including—</text> <clause id="H45C021F277844769BBE9A597AF28CB05"><enum>(i)</enum><text>a site,</text></clause> <clause id="HCEC5D88D7CE643C0901C2608CB391E2C"><enum>(ii)</enum><text>contractual commitments for procurement and construction or, in the case of regulated utilities, the agreement of the State utility commission,</text></clause> <clause id="H82392DC397E14669B897DE1B7492CAC"><enum>(iii)</enum><text>filings for all necessary preconstruction approvals,</text></clause> <clause id="H1BAFA68CBE9842CAA172CA84B5881E6C"><enum>(iv)</enum><text>a demonstrated record of having successfully completed comparable projects on a timely basis, and</text></clause> <clause id="H4516D6A45BE840D18D565E1DFA412DC"><enum>(v)</enum><text>such other factors which the Secretary determines are appropriate.</text></clause></subparagraph></paragraph></subsection> <subsection id="HFCF64DC0F9C34EECAF00041F8DE1CCDD"><enum>(g)</enum><header>Special rules</header><text>For purposes of this section—</text> <paragraph id="H4B616F7565B0465A973651EAD5792800"><enum>(1)</enum><header>Certain progress expenditure rules made applicable</header><text>Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section.</text></paragraph> <paragraph id="H813BB87D6EBF458B95F500FCD878C1E0"><enum>(2)</enum><header>Property financed by subsidized financing or industrial development bonds</header><text>Rules similar to the rules of section 45(b)(3) shall apply for purposes of this section.</text></paragraph> <paragraph id="H36C2AAE4E59C458DB2362CC000F2FC15"><enum>(3)</enum><header>Noncompliance with pollution laws</header><text>The terms <term>basic clean coal technology unit</term> and <term>advanced clean coal technology unit</term> shall not include any unit which is not in compliance with the applicable Federal pollution prevention, control, and permit requirements at any time during the period applicable under subsection (c)(1)(B).</text></paragraph> <paragraph id="HFFF343948AB14BC295356181FE008CC2"><enum>(4)</enum><header>Denial of credit for units receiving certain other Federal assistance</header><text>The terms <term>basic clean coal technology unit</term> and <term>advanced clean coal technology unit</term> shall not include any unit if, at any time during the period applicable under subsection (c)(1)(B), any funding is provided to such unit under the Clean Coal Technology Program, the Power Plant Improvement Initiative, or the Clean Coal Power Initiative administered by the Secretary of Energy.</text></paragraph> <paragraph id="H20918B69389B4AFC9EA318AEBFD20841"><enum>(5)</enum><header>Coordination with other credits</header><text>This section shall not apply to any property with respect to which the rehabilitation credit under section 47, the energy credit under section 48, or any credit under section 45 or 45K is allowable unless the taxpayer elects to waive the application of such credit to such property.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HF69FC78AFDB14479812B7C00388547AD"><enum>(b)</enum><header>Special recapture rules</header> <paragraph id="HDA881CB5ED3A44369C98A202CAC8D8A6"><enum>(1)</enum><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/26/50">section 50</external-xref> is amended by redesignating paragraph (3), (4), and (5) as paragraphs (4), (5), and (6), respectively, and by inserting after paragraph (2) the following new paragraph:</text> <quoted-block id="HD3FD61D728564D11BA59BEBA1CD0C231"> <paragraph id="H2CB37E347B244F0080678331AC14C84F"><enum>(3)</enum><header>Special rules for clean coal technology credits</header> <subparagraph id="HD8B3CC47DC5A4931A8698852B1DB5BE2"><enum>(A)</enum><header>Early disposition, etc</header><text>If, during any taxable year, qualified clean coal property is disposed of, or otherwise ceases to be part of a basic or advanced clean coal technology unit with respect to the taxpayer, before the close of the recovery period under section 168 for such unit, then the tax under this chapter for such taxable year shall be increased by—</text> <clause id="HA10A429CC20E49CE9BC53227E08FBF2"><enum>(i)</enum><text>the aggregate decrease in the credits allowed under section 38 for all prior taxable years which would have resulted solely from reducing to zero any credit determined under section 48A with respect to such property, multiplied by</text></clause> <clause id="H1C214A900D454771946EEDE2D2EDB43"><enum>(ii)</enum><text>a fraction—</text> <subclause id="H19AE70D1EB96428289694F639B920099"><enum>(I)</enum><text>the numerator of which is the number of years in the period beginning with the year of such disposition or cessation and ending with the last year of such recovery period, and</text></subclause> <subclause id="H4DD8A56CA50149BDA09355346900E936"><enum>(II)</enum><text>the denominator of which is the total number of years in such recovery period.</text></subclause></clause></subparagraph> <subparagraph id="HE8958CACF89E4DF7A297968911236720"><enum>(B)</enum><header>Property ceases to qualify for progress expenditures</header><text>Rules similar to the rules of this paragraph shall apply in cases where qualified progress expenditures were taken into account under the rules referred to in section 48A(g)(1).</text></subparagraph> <subparagraph id="H0D1E340A5C464CEDB023C502C23DC4B6"><enum>(C)</enum><header>Increased recapture in certain cases</header><text>The fraction in subparagraph (A)(ii) shall be 1 in any case in which the property ceases to be a basic or advanced clean coal technology unit by reason of paragraph (3), (4), or (5) of section 48A(g).</text></subparagraph> <subparagraph id="HDDA9AC1BE42A46D1B4CABF00195F2544"><enum>(D)</enum><header>Coordination with other recapture rules</header><text>Paragraphs (1) and (2) shall not apply to qualified clean coal property.</text></subparagraph> <subparagraph id="H0A93B9FC7D144EACBD0314CFD600D42D"><enum>(E)</enum><header>Definitions</header><text>Terms used in this section which are also used in section 48A shall have the meanings given to such terms in section 48A.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H121923946BE341B688ECB6C157C282E"><enum>(2)</enum><text>Paragraph (4) of section 50(a), as redesignated by paragraph (1), is amended by striking <quote>or (2)</quote> and inserting <quote>, (2), or (3)</quote>.</text></paragraph> <paragraph id="H7188FA8999E94481A3D892A3E14C15DE"><enum>(3)</enum><text>Paragraph (5) of section 50(a), as so redesignated, is amended by striking <quote>and (2)</quote> and inserting <quote>, (2), and (3)</quote>.</text></paragraph> <paragraph id="HA4021380831549D0B5F0BE906025CC44"><enum>(4)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/1371">Section 1371(d)(1)</external-xref> is amended by striking <quote>section 50(a)(4)</quote> and inserting <quote>section 50(a)(5)</quote>.</text></paragraph></subsection> <subsection id="H4737C77529AE4B12B6C134607CCD4E31"><enum>(c)</enum><header>Technical amendments</header> <paragraph id="HBB79470D0B244D519C731D3E9FE98013"><enum>(1)</enum><text>Section 46 (relating to amount of credit) is amended by striking <quote>and</quote> at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="HFBBA75BD507440F2A2FD00C2688FDEE8"> <paragraph id="HA46ED7A350E44D01BEA306768CB4E2EB"><enum>(4)</enum><text>the clean coal technology credit.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H448DA8B2DCD4484A8F6EF278FC035A"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/49">Section 49(a)(1)(C)</external-xref> is amended by striking <quote>and</quote> at the end of clause (ii), by striking the period at the end of clause (iii) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text> <quoted-block id="HDBAD2C48200B4712B023DA0546D0967C"> <clause id="HB26A5C170CA44231A035D829CEDFB4E8"><enum>(iv)</enum><text>the portion of the basis of any qualified clean coal property (as defined by section 48A(c)).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HC9E5118BC451423B8D34746172001EB3"><enum>(3)</enum><text>The table of sections for subpart E of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 48 the following new item:</text> <quoted-block style="OLC" id="H7C440CF2ECFE4E33943384D8C1748662"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 48A. Clean coal technology credit</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HCD33A0054C0E40CDBCD605A9CA2B9846"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to periods after December 31, 2003, under rules similar to the rules of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).</text></subsection></section> <section id="HBBE74E6201BA4E24B5CBB500398437C"><enum>1352.</enum><header>Expansion of amortization for certain pollution control facilities</header> <subsection id="HC9DB26958F6446FE8574A99700B641F"><enum>(a)</enum><header>Eligibility of post-1975 pollution control facilities</header> <paragraph id="H9F171BB3081D4419AF7C3262668FEDA"><enum>(1)</enum><header>In general</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/169">section 169(d)</external-xref> is amended by striking <quote>before January 1, 1976,</quote> and by striking <quote>a new identifiable</quote> and inserting <quote>an identifiable</quote>.</text></paragraph> <paragraph id="H0AA98C7188A64995951924B5AFA068C4"><enum>(2)</enum><header>Identifiable treatment facility</header><text>Paragraph (4) of <external-xref legal-doc="usc" parsable-cite="usc/26/169">section 169(d)</external-xref> is amended to read as follows:</text> <quoted-block id="H0A9ED35E81DC4A9EA0F600973F02E22D"> <paragraph id="H001613E19C1E43A0A630D331C4E45CB6"><enum>(4)</enum><header>Identifiable treatment facility</header><text>For purposes of paragraph (1), the term <quote>identifiable treatment facility</quote> includes only tangible property (not including a building and its structural components, other than a building which is exclusively a treatment facility) which is of a character subject to the allowance for depreciation provided in section 167, which is identifiable as a treatment facility, and which is property—</text> <subparagraph id="HD20AEF1D099A40D9AC6F749F53597726"><enum>(A)</enum><text>the construction, reconstruction, or erection of which is completed by the taxpayer, or</text></subparagraph> <subparagraph id="H707F0F98C87A4385B9D2E09548ECF1C1"><enum>(B)</enum><text>the original use of the property commences with the taxpayer.</text></subparagraph></paragraph><after-quoted-block>. </after-quoted-block></quoted-block></paragraph> <paragraph id="H65A7244426994821A528166564DEA08"><enum>(3)</enum><header>Technical amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/169">Section 169(d)(3)</external-xref> is amended by striking <quote>Health, Education, and Welfare</quote> and inserting <quote>Health and Human Services</quote>.</text></paragraph></subsection> <subsection id="HFFFEE62258B94B8386758C69D0F21904"><enum>(b)</enum><header>Coordination with Section 48A investment credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/169">Section 169</external-xref> is amended by redesignating subsections (e) though (j) as subsection (f) through (k), respectively, and by inserting after subsection (d) the following new subsection:</text> <quoted-block id="H40E859E16B684F8493637BCCE91DB279"> <subsection id="H9E32B13E099B4A48AE4C7637A8F8EB80"><enum>(e)</enum><header>Coordination with Section 48A investment credit</header> <paragraph id="H1DE93A97390A4337ABE4CCA02504BD03"><enum>(1)</enum><header>In general</header><text>In the case of any treatment facility used in connection with a plant or other property to which an amount is allocated under section 48A(f), this section shall apply only if such plant or other property was in operation before January 1, 1976.</text></paragraph> <paragraph id="HB26BD11A8E2142129F7F98EBCF714823"><enum>(2)</enum><header>36-month amortization with respect to pre-1976 plants not allocated credit</header><text>References in this section to 60 months shall be treated as references to 36 months in the case of treatment facilities used in connection with a plant or other property in operation before January 1, 1976, if no allocation is made under section 48A(f) with respect to such plant or property.</text></paragraph></subsection><after-quoted-block>. </after-quoted-block></quoted-block></subsection> <subsection id="H663E4C09D00D45DCAC2F71D8B1ED87E"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to facilities placed in service after the date of the enactment of this Act.</text></subsection></section> <section id="H06C65419143A4D90A222D200DF00EE6E"><enum>1353.</enum><header>5-year recovery period for eligible integrated gasification combined cycle technology unit eligible for credit</header> <subsection id="H965E7C3B2F924919997DFF5F67BF385"><enum>(a)</enum><header>In general</header><text>Subparagraph (B) of section 168(e)(3) (defining 5-year property) is amended by striking <quote>and</quote> at the end of clause (v), by striking the period at the end of clause (vi) and inserting <quote>, and</quote>, and by inserting after clause (vi) the following new clause:</text> <quoted-block id="H55D80AED74E24E4FAE68EADC51CC411E"> <clause id="H1AE89E3C604C41C48D595EB0B72689C"><enum>(vii)</enum><text>any section 1245 property which is part of an eligible integrated gasification combined cycle technology unit (as defined in section 48A(e)(4)) for which an allocation is made under section 48A(f).</text></clause><after-quoted-block>. </after-quoted-block></quoted-block></subsection> <subsection id="HAF88985077F74A18B8A7C1005712F4C5"><enum>(b)</enum><header>Alternative system</header><text>The table contained in section 168(g)(3)(B) (relating to special rule for certain property assigned to classes) is amended by inserting after the item relating to subparagraph (B)(iii) the following new item:</text> <quoted-block style="OLC" id="HE5B94EBD0F1448D9A8F02BC5552F32FE" display-inline="no-display-inline"> <toc regeneration="no-regeneration"> <multi-column-toc-entry level="section"><toc-enum>(B)</toc-enum><level-header level="section">(vii)</level-header><target>20</target></multi-column-toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HB11D596C55BE44168879F8D89EEAE123"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act in taxable years ending after such date.</text></subsection></section></part> <part id="H7C730B83897B48D5B074A83BC3B8DB08"><enum>IV</enum><header>High volume natural gas provisions</header> <section id="H464BE5AB435347C09C3077BF9C00F311"><enum>1355.</enum><header>High volume natural gas pipe treated as 7-year property</header> <subsection id="HFE50806C19934E099D4DBD314D049FD8"><enum>(a)</enum><header>In general</header><text>Section 168(e)(3)(C) (defining 7-year property), as amended by this Act, is amended by striking <quote>and</quote> at the end of clause (ii), by redesignating clause (iii) as clause (iv), and by inserting after clause (ii) the following new clause:</text> <quoted-block id="H458281C4B94044C29FAC74BBF81D2B18"> <clause id="H0CE04FDF0C3645DBA7593E3CF820FC58"><enum>(iii)</enum><text>any high volume natural gas pipe the original use of which commences with the taxpayer after the date of the enactment of this clause, and</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HE38A21333C3A407980835FDBCA00D971"><enum>(b)</enum><header>High volume natural gas pipe</header><text>Section 168(i) (relating to definitions and special rules), as amended by this Act, is amended by adding at the end the following new paragraph:</text> <quoted-block id="HFA7B0124F6AE4891A4C53929D12910C6"> <paragraph id="H2A47445B6F3149238548E76B257BAB1B"><enum>(17)</enum><header>High volume natural gas pipe</header><text>The term <term>high volume natural gas pipe</term> means—</text> <subparagraph id="H66A2C2986AA240B6BBB5CBDCD52CEC5D"><enum>(A)</enum><text>pipe which has an interior diameter of at least 42 inches and which is part of a natural gas pipeline system, and</text></subparagraph> <subparagraph id="HC1EC796F13794285AEB1B111BA033D25"><enum>(B)</enum><text>any related equipment and appurtenances used in connection with such pipe.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H55DC6793585C48D1993D9677B9417DD2"><enum>(c)</enum><header>Alternative system</header><text>The table contained in section 168(g)(3)(B) (relating to special rule for certain property assigned to classes), as amended by this Act, is amended by inserting after the item relating to subparagraph (C)(ii) the following new item:</text> <quoted-block style="OLC" id="H8A3E10043725454385E4D007B2DC6C86" display-inline="no-display-inline"> <toc regeneration="no-regeneration"> <multi-column-toc-entry level="section"><toc-enum>(C)</toc-enum><level-header level="section">(iii)</level-header><target>22</target></multi-column-toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H7449DF81D5C64C06BE83A1431BC48552"><enum>(d)</enum><header>Alternative minimum tax exception</header><text>Subparagraph (B) of section 56(a)(1), as amended by this Act, is amended by inserting before the period the following: <quote>, or in section 168(e)(3)(C)(iii)</quote>.</text></subsection> <subsection id="H2613D5FF264A48038900298C23F0C39C"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service on or after the date of the enactment of this Act.</text></subsection></section> <section id="HC80C83BCF009429EA7DEB7A3FC8ED471"><enum>1356.</enum><header>Extension of enhanced oil recovery credit to high volume natural gas facilities</header> <subsection id="H9FED6362BB1D4692B0CB34A1D25E8332"><enum>(a)</enum><header>In general</header><text>Section 43(c)(1) (defining qualified enhanced oil recovery costs) is amended by adding at the end the following new subparagraph:</text> <quoted-block id="H4D6BB6AEC0B84F9DB31FB41CB907A235"> <subparagraph id="H3496BD2C6EE04D6BBD91C048421EC123"><enum>(D)</enum><text>Any amount which is paid or incurred during the taxable year in connection with the construction of a gas treatment plant which—</text> <clause id="HB5F2FE29E84F418FAC89E674317FA9E2"><enum>(i)</enum><text>prepares natural gas for transportation through a pipeline with a capacity of at least 1,000,000,000,000 Btu of natural gas per day, and</text></clause> <clause id="HD03644BACF43422FB422F8FEDA8E509F"><enum>(ii)</enum><text>produces carbon dioxide which is injected into hydrocarbon-bearing geological formations.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H53F973BE574042248622062B3D37F51F"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to costs paid or incurred in taxable years beginning after December 31, 2003.</text></subsection></section></part></subtitle> <subtitle id="HF58ABB5204094D008100142D22820043"><enum>D</enum><header>Additional provisions</header> <section id="H47D533638FBB4E1BB149AA15B7921429"><enum>1361.</enum><header>Extension of accelerated depreciation benefit for energy-related businesses on indian reservations</header><text display-inline="no-display-inline">Paragraph (8) of section 168(j) (relating to termination) is amended by adding at the end the following new sentence: </text> <quoted-block style="OLC" id="HF21882BB40774968BD929DE469066B66" display-inline="yes-display-inline"><text display-inline="yes-display-inline">The preceding sentence shall be applied by substituting <quote>December 31, 2005</quote> for <quote>December 31, 2004</quote> in the case of property placed in service as part of a facility for—</text> <subparagraph id="HF57D080DB97E473782D8B2737C49D178"><enum>(A)</enum><text>the generation or transmission of electricity (including from any qualified energy resource, as defined in section 45(c)),</text></subparagraph> <subparagraph id="H464A5AE1C27E4677A786C9B3E5A73B3B"><enum>(B)</enum><text>an oil or gas well,</text></subparagraph> <subparagraph id="H944B6FA5AA694D6A9C986C785496EA68"><enum>(C)</enum><text>the transmission or refining of oil or gas, or</text></subparagraph> <subparagraph id="HBCEF485B8DB14E76A7DCA8660728C6AD"><enum>(D)</enum><text>the production of any qualified fuel (as defined in section 45K(c)).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HFAAFE7E5CD2C4023A116AA6238782B6F"><enum>1362.</enum><header>Payment of dividends on stock of cooperatives without reducing patronage dividends</header> <subsection id="H57AE539852E14F089C4E86DF26BDBB10"><enum>(a)</enum><header>In general</header><text>Subsection (a) of section 1388 (relating to patronage dividend defined) is amended by adding at the end the following: <quote>For purposes of paragraph (3), net earnings shall not be reduced by amounts paid during the year as dividends on capital stock or other proprietary capital interests of the organization to the extent that the articles of incorporation or bylaws of such organization or other contract with patrons provide that such dividends are in addition to amounts otherwise payable to patrons which are derived from business done with or for patrons during the taxable year.</quote>.</text></subsection> <subsection id="H46C397D6E4A442A090BE93F495CD942"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to distributions in taxable years ending after the date of the enactment of this Act.</text></subsection></section> <section id="HC6B2ECB9FDA14A33A75D435F5F91A000"><enum>1363.</enum><header>Distributions from publicly traded partnerships treated as qualifying income of regulated investment companies</header> <subsection id="H01C1FDC20D0F456F91B669EE2FCC1005"><enum>(a)</enum><header>In general</header><text>Paragraph (2) of section 851(b) (defining regulated investment company) is amended to read as follows:</text> <quoted-block id="HBC1B6F10AEAF42CAA8E4B771700F926"> <paragraph id="H263B44F7F38F44E0AA7E44E3516C9802"><enum>(2)</enum><text>at least 90 percent of its gross income is derived from—</text> <subparagraph id="H8D1206D4007C47CF998FAB72F2B77138"><enum>(A)</enum><text>dividends, interest, payments with respect to securities loans (as defined in section 512(a)(5)), and gains from the sale or other disposition of stock or securities (as defined in section 2(a)(36) of the <act-name parsable-cite="ICA40">Investment Company Act of 1940</act-name>, as amended) or foreign currencies, or other income (including but not limited to gains from options, futures or forward contracts) derived with respect to its business of investing in such stock, securities, or currencies, and</text></subparagraph> <subparagraph id="H6A3442DF41CA40A591DD21BD6B208BB1"><enum>(B)</enum><text>distributions or other income derived from an interest in a qualified publicly traded partnership (as defined in subsection (h)); and</text></subparagraph></paragraph><after-quoted-block>. </after-quoted-block></quoted-block></subsection> <subsection id="HECD58C141BCB4152BA22AE1D531939BF"><enum>(b)</enum><header>Source flow-through rule not to apply</header><text>The last sentence of <external-xref legal-doc="usc" parsable-cite="usc/26/851">section 851(b)</external-xref> is amended by inserting <quote>(other than a qualified publicly traded partnership as defined in subsection (h))</quote> after <quote>derived from a partnership</quote>.</text></subsection> <subsection id="HFDF0AC638B694927BBDD71F57F37008D"><enum>(c)</enum><header>Limitation on ownership</header><text>Subsection (c) of <external-xref legal-doc="usc" parsable-cite="usc/26/851">section 851</external-xref> is amended by redesignating paragraph (5) as paragraph (6) and inserting after paragraph (4) the following new paragraph:</text> <quoted-block id="H4E105193913E4A05934C56E69C6CD3AD"> <paragraph id="H22F374313031442598E8F33F2F1EAA32"><enum>(5)</enum><text>The term <term>outstanding voting securities of such issuer</term> shall include the equity securities of a qualified publicly traded partnership (as defined in subsection (h)).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HA65E494FD33A4BCFB9BE7EFF02457FFF"><enum>(d)</enum><header>Definition of qualified publicly traded partnership</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/851">Section 851</external-xref> is amended by adding at the end the following new subsection:</text> <quoted-block id="H0AEB7270CAD74AEF8CAA791F19B6BB04"> <subsection id="H115AD04075B747C3951054E3A93CD912"><enum>(h)</enum><header>Qualified publicly traded partnership</header><text>For purposes of this section, the term <term>qualified publicly traded partnership</term> means a publicly traded partnership described in section 7704(b) other than a partnership which would satisfy the gross income requirements of section 7704(c)(2) if qualifying income included only income described in subsection (b)(2)(A).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HF524A87970C24CAAB6D5009ED3BBF4CD"><enum>(e)</enum><header>Definition of qualifying income</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7704">Section 7704(d)(4)</external-xref> is amended by striking <quote>section 851(b)(2)</quote> and inserting <quote>section 851(b)(2)(A)</quote>.</text></subsection> <subsection id="H40A2BC0AED214E19A099B3F8F1CABB7D"><enum>(f)</enum><header>Limitation on composition of assets</header><text>Subparagraph (B) of <external-xref legal-doc="usc" parsable-cite="usc/26/851">section 851(b)(3)</external-xref> is amended to read as follows:</text> <quoted-block id="HB143CFD92B7146C388856093EE76ED20"> <subparagraph id="H52A59C3D282241A7A97BA9700744DED"><enum>(B)</enum><text>not more than 25 percent of the value of its total assets is invested in—</text> <clause id="H5D9BE5DCF7A5482CBAC763A804320058"><enum>(i)</enum><text>the securities (other than Government securities or the securities of other regulated investment companies) of any one issuer,</text></clause> <clause id="HD0B8632984E04D4AAB6D008623237E90"><enum>(ii)</enum><text>the securities (other than the securities of other regulated investment companies) of two or more issuers which the taxpayer controls and which are determined, under regulations prescribed by the Secretary, to be engaged in the same or similar trades or businesses or related trades or businesses, or</text></clause> <clause id="HE2B91EC318064634AF9548FB537C1BFC"><enum>(iii)</enum><text>the securities of one or more qualified publicly traded partnerships (as defined in subsection (h)).</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H5BE66E792EF64401B39E6BE1DCE2F6E8"><enum>(g)</enum><header>Application of special passive activity rule to regulated investment companies</header><text>Subsection (k) of section 469 (relating to separate application of section in case of publicly traded partnerships) is amended by adding at the end the following new paragraph:</text> <quoted-block id="HC17B03438295475E81C2C95981DDCB41"> <paragraph id="HA2FB390245F742519377DCF201A6D505"><enum>(4)</enum><header>Application to regulated investment companies</header><text>For purposes of this section, a regulated investment company (as defined in section 851) holding an interest in a qualified publicly traded partnership (as defined in section 851(h)) shall be treated as a taxpayer described in subsection (a)(2) with respect to items attributable to such interest.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HFA059B34A7714D42A227B3EFDD7CA4BE"><enum>(h)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text></subsection></section> <section id="H00E6643C7BAF43B48BD19C3C7667A19E"><enum>1364.</enum><header>Ceiling fans</header> <subsection id="H574279CE45AF4C37B1C154378989C8E1"><enum>(a)</enum><header>In general</header><text>Subchapter II of chapter 99 of the Harmonized Tariff Schedule of the United States is amended by inserting in numerical sequence the following new heading:</text> <quoted-block id="H43E4046A60994591A0F877FC00F832E0"> <table table-type="8-Duty-Suspension" align-to-level="section" frame="none" line-rules="hor-ver" rule-weights="0.0.0.4.4.0" blank-lines-before="1" subformat="S6211"> <tgroup cols="8" ttitle-size="0" thead-tbody-ldg-size="0.7.9" grid-typeface="1.1" block-style="1" fnote-size="0"><colspec colname="col1" coldef="txt-no-ldr-no-spread" min-data-value="8" colsep="1" colwidth="9.75pt"/><colspec colname="col2" coldef="txt-no-ldr-no-spread" min-data-value="35" colsep="1" colwidth="77.25pt"/><colspec colname="col3" coldef="txt" min-data-value="60" colsep="1" colwidth="88.50pt"/><colspec colname="col4" coldef="txt-no-ldr-no-spread" min-data-value="25" colsep="1" colwidth="39.75pt"/><colspec colname="col5" coldef="txt-no-ldr-no-spread" min-data-value="38" colsep="1" colwidth="60.00pt"/><colspec colname="col6" coldef="txt-no-ldr-no-spread" min-data-value="38" colsep="1" colwidth="60.00pt"/><colspec colname="col7" coldef="txt-no-ldr-no-spread" min-data-value="40" colsep="1" colwidth="60.00pt"/><colspec colname="col8" coldef="fig" min-data-value="3" colsep="1" colwidth="20.25pt"/> <tbody> <row><entry colname="col1" align="left" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1"/><entry colname="col2" align="left" rowsep="0" leader-modify="clr-ldr" valign="top">9902.84.14</entry><entry colname="col3" align="left" rowsep="0" leader-modify="force-ldr" valign="bottom">Ceiling fans for permanent installation (provided for in subheading 8414.51.00)</entry><entry colname="col4" align="left" rowsep="0" leader-modify="clr-ldr" valign="bottom">Free</entry><entry colname="col5" align="left" rowsep="0" leader-modify="clr-ldr" valign="bottom">No change</entry><entry colname="col6" align="left" rowsep="0" leader-modify="clr-ldr" valign="bottom">No change</entry><entry colname="col7" align="left" rowsep="0" leader-modify="clr-ldr" valign="bottom">On or before 12/31/2005</entry><entry colname="col8" align="right" rowsep="0" valign="bottom"/></row></tbody></tgroup></table><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H3CFC41D7E68C40F4B2DE981987888CC2"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section applies to goods entered, or withdrawn from warehouse, for consumption on or after the 15th day after the date of enactment of this Act.</text></subsection></section> <section id="H0D6CEC03039E4EE0A86421C6A8D170A0"><enum>1365.</enum><header>Certain steam generators, and certain reactor vessel heads, used in nuclear facilities</header> <subsection id="HE6971067E64346F49FBCE52EBE18E34F"><enum>(a)</enum><header>Certain steam generators</header><text>Heading 9902.84.02 of the Harmonized Tariff Schedule of the United States is amended by striking <quote>12/31/2006</quote> and inserting <quote>12/31/2008</quote>.</text></subsection> <subsection id="HE8628422FDE54C60A8E4584133A305D0"><enum>(b)</enum><header>Certain reactor vessel heads</header><text>Subchapter II of chapter 99 of the Harmonized Tariff Schedule of the United States is amended by inserting in numerical sequence the following new heading:</text> <quoted-block id="H86DF671548984C7597B2AA02FF1B002C"> <table table-type="8-Duty-Suspension" align-to-level="section" frame="none" line-rules="hor-ver" rule-weights="0.0.0.4.4.0" blank-lines-before="1" subformat="S6211"> <tgroup cols="8" ttitle-size="0" thead-tbody-ldg-size="0.7.9" grid-typeface="1.1" block-style="1" fnote-size="0"><colspec colname="col1" coldef="txt-no-ldr-no-spread" min-data-value="8" colsep="1" colwidth="4.50pt"/><colspec colname="col2" coldef="txt-no-ldr-no-spread" min-data-value="35" colsep="1" colwidth="79.50pt"/><colspec colname="col3" coldef="txt" min-data-value="60" colsep="1" colwidth="91.50pt"/><colspec colname="col4" coldef="txt-no-ldr-no-spread" min-data-value="25" colsep="1" colwidth="39.75pt"/><colspec colname="col5" coldef="txt-no-ldr-no-spread" min-data-value="38" colsep="1" colwidth="60.00pt"/><colspec colname="col6" coldef="txt-no-ldr-no-spread" min-data-value="38" colsep="1" colwidth="60.00pt"/><colspec colname="col7" coldef="txt-no-ldr-no-spread" min-data-value="40" colsep="1" colwidth="60.00pt"/><colspec colname="col8" coldef="fig" min-data-value="3" colsep="1" colwidth="20.25pt"/> <tbody> <row><entry colname="col1" align="left" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1"/><entry colname="col2" align="left" rowsep="0" leader-modify="clr-ldr" valign="top">9902.84.03</entry><entry colname="col3" align="left" rowsep="0" leader-modify="force-ldr" valign="bottom">Reactor vessel heads for nuclear reactors (provided for in subheading 8401.40.00) </entry><entry colname="col4" align="left" rowsep="0" leader-modify="clr-ldr" valign="bottom">Free</entry><entry colname="col5" align="left" rowsep="0" leader-modify="clr-ldr" valign="bottom">No change</entry><entry colname="col6" align="left" rowsep="0" leader-modify="clr-ldr" valign="bottom">No change</entry><entry colname="col7" align="left" rowsep="0" leader-modify="clr-ldr" valign="bottom">On or before 12/31/2007</entry><entry colname="col8" align="right" rowsep="0" valign="bottom"/></row></tbody></tgroup></table><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HF84701EDA56847358B3C884C6B52A735"><enum>(c)</enum><header>Effective date</header> <paragraph id="HF2A1602D5AAA4197A6D04B8BE92D662B"><enum>(1)</enum><header>Subsection <enum-in-header>(a)</enum-in-header></header><text>The amendment made by subsection (a) shall take effect on the date of the enactment of this Act.</text></paragraph> <paragraph id="H79514850213F4EBA8F7BE741B2CDC04"><enum>(2)</enum><header>Subsection <enum-in-header>(b)</enum-in-header></header><text>The amendment made by subsection (b) shall apply to goods entered, or withdrawn from warehouse, for consumption on or after the 15th day after the date of the enactment of this Act.</text></paragraph></subsection></section> <section id="H5CFEC2A8A4674A41941DAD7C8528DE00"><enum>1366.</enum><header>Brownfields demonstration program for qualified green building and sustainable design projects</header> <subsection id="H257DBAF650D7484AA73B364403219FE8"><enum>(a)</enum><header>Treatment as exempt facility bond</header><text>Subsection (a) of section 142 (relating to the definition of exempt facility bond) is amended by striking <quote>or</quote> at the end of paragraph (12), by striking the period at the end of paragraph (13) and inserting <quote>, or</quote>, and by inserting at the end the following new paragraph:</text> <quoted-block id="H623D16610F8644C09E22A0560418D430"> <paragraph id="HFE52E5F6BF274975AB606B00AA5E8EBE"><enum>(14)</enum><text>qualified green building and sustainable design projects.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HB92F26DDC6A44F538B647C38543EF970"><enum>(b)</enum><header>Qualified green building and sustainable design projects</header><text>Section 142 (relating to exempt facility bonds) is amended by adding at the end thereof the following new subsection:</text> <quoted-block id="H6FA4EFDBBCE448D9B7D07247FA17C47F"> <subsection id="HDF8F969D990644238F4849002D554781"><enum>(l)</enum><header>Qualified green building and sustainable design projects</header> <paragraph id="H4491DF3AA06A4E44B33C45F8A3B5291"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a)(14), the term <term>qualified green building and sustainable design project</term> means any project which is designated by the Secretary, after consultation with the Administrator of the Environmental Protection Agency, as a qualified green building and sustainable design project and which meets the requirements of clauses (i), (ii), (iii), and (iv) of paragraph (4)(A).</text></paragraph> <paragraph id="HDE9C547AE14B45EEBDDA592CF0049172"><enum>(2)</enum><header>Designations</header> <subparagraph id="HA876D57FB48A48A0BDD594D286596EF"><enum>(A)</enum><header>In general</header><text>Within 60 days after the end of the application period described in paragraph (3)(A), the Secretary, after consultation with the Administrator of the Environmental Protection Agency, shall designate qualified green building and sustainable design projects. At least one of the projects designated shall be located in, or within a 10-mile radius of, an empowerment zone as designated pursuant to section 1391, and at least one of the projects designated shall be located in a rural State. No more than one project shall be designated in a State. A project shall not be designated if such project includes a stadium or arena for professional sports exhibitions or games.</text></subparagraph> <subparagraph id="H03AA0A844D944090B2A3909597C9BE90"><enum>(B)</enum><header>Minimum conservation and technology innovation objectives</header><text>The Secretary, after consultation with the Administrator of the Environmental Protection Agency, shall ensure that, in the aggregate, the projects designated shall—</text> <clause id="H457B92E760CA4756B54E4BD179C02BB"><enum>(i)</enum><text>reduce electric consumption by more than 150 megawatts annually as compared to conventional construction,</text></clause> <clause id="HC4037495075747059852F4B18E6308CA"><enum>(ii)</enum><text>reduce daily sulfur dioxide emissions by at least 10 tons compared to coal generation power,</text></clause> <clause id="H91A663BB4DA14E54AA6D38E5238849E5"><enum>(iii)</enum><text>expand by 75 percent the domestic solar photovoltaic market in the United States (measured in megawatts) as compared to the expansion of that market from 2001 to 2002, and</text></clause> <clause id="HE675342F8C4745A8AFD5B9F094D960DC"><enum>(iv)</enum><text>use at least 25 megawatts of fuel cell energy generation.</text></clause></subparagraph></paragraph> <paragraph id="H79B9390F924B436BAFDE1314FD0365D0"><enum>(3)</enum><header>Limited designations</header><text>A project may not be designated under this subsection unless—</text> <subparagraph id="HD915BB762B564B01BB92005EEDD4065B"><enum>(A)</enum><text>the project is nominated by a State or local government within 180 days of the enactment of this subsection, and</text></subparagraph> <subparagraph id="H7C1A60C507A24A5C864E6328A3114DE3"><enum>(B)</enum><text>such State or local government provides written assurances that the project will satisfy the eligibility criteria described in paragraph (4).</text></subparagraph></paragraph> <paragraph id="H6E3F575EDC2A4B8CB610B18B21D50895"><enum>(4)</enum><header>Application</header> <subparagraph id="H345B027FA562421A0077261FFD9544B9"><enum>(A)</enum><header>In general</header><text>A project may not be designated under this subsection unless the application for such designation includes a project proposal which describes the energy efficiency, renewable energy, and sustainable design features of the project and demonstrates that the project satisfies the following eligibility criteria:</text> <clause id="HF9BC6FD2337D4A1884E2007B7B5F7C2C"><enum>(i)</enum><header>Green building and sustainable design</header><text>At least 75 percent of the square footage of commercial buildings which are part of the project is registered for United States Green Building Council’s LEED certification and is reasonably expected (at the time of the designation) to receive such certification.</text></clause> <clause id="H08576A9BDD614865ADF9CA8D8F884DD4"><enum>(ii)</enum><header>Brownfield redevelopment</header><text>The project includes a brownfield site as defined by section 101(39) of the <act-name parsable-cite="CERCL">Comprehensive Environmental Response, Compensation, and Liability Act of 1980</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/9601">42 U.S.C. 9601</external-xref>), including a site described in subparagraph (D)(ii)(II)(aa) thereof.</text></clause> <clause id="H689E242DD3BC41B6905BB100C3CD1711"><enum>(iii)</enum><header>State and local support</header><text>The project receives specific State or local government resources which will support the project in an amount equal to at least $5,000,000. For purposes of the preceding sentence, the term <term>resources</term> includes tax abatement benefits and contributions in kind.</text></clause> <clause id="H09941BD661524C2C89855385F446EA00"><enum>(iv)</enum><header>Size</header><text>The project includes at least one of the following:</text> <subclause id="H94158376A4474A2A91DD13E21BBE1933"><enum>(I)</enum><text>At least 1,000,000 square feet of building.</text></subclause> <subclause id="HA97AD8024BDF447C8D70CB7C1B026FAB"><enum>(II)</enum><text>At least 20 acres.</text></subclause></clause> <clause id="H375C1BD98F1144E6A5CB97085074941C"><enum>(v)</enum><header>Use of tax benefit</header><text>The project proposal includes a description of the net benefit of the tax-exempt financing provided under this subsection which will be allocated for financing of one or more of the following:</text> <subclause id="HC38E936F6C0643D4B9F117FF4141C794"><enum>(I)</enum><text>The purchase, construction, integration, or other use of energy efficiency, renewable energy, and sustainable design features of the project.</text></subclause> <subclause id="H019ABB84EC97418393D65DFF1BB27F03"><enum>(II)</enum><text>Compliance with LEED certification standards.</text></subclause> <subclause id="H2FA9F3C6EE764F439FFB3266CCBB98DB"><enum>(III)</enum><text>The purchase, remediation, and foundation construction and preparation of the brownfields site.</text></subclause></clause> <clause id="H41349DA9D153486B91E03F6D344DE922"><enum>(vi)</enum><header>Employment</header><text>The project is projected to provide permanent employment of at least 1,500 full time equivalents (150 full time equivalents in rural States) when completed and construction employment of at least 1,000 full time equivalents (100 full time equivalents in rural States).</text></clause><continuation-text continuation-text-level="subparagraph">The application shall include an independent analysis which describes the project’s economic impact, including the amount of projected employment.</continuation-text></subparagraph> <subparagraph id="H6499ECE772864168003D34FEAC53103B"><enum>(B)</enum><header>Project description</header><text>Each application described in subparagraph (A) shall contain for each project a description of—</text> <clause id="H21FCAE46DBDA47389B1C96DE9D8FF94E"><enum>(i)</enum><text>the amount of electric consumption reduced as compared to conventional construction,</text></clause> <clause id="H895E26BE1F094BD89B21BEB3B7A2689D"><enum>(ii)</enum><text>the amount of sulfur dioxide daily emissions reduced compared to coal generation,</text></clause> <clause id="HB6817B009C2B44E300E744EA4F4E38C5"><enum>(iii)</enum><text>the amount of the gross installed capacity of the project’s solar photovoltaic capacity measured in megawatts, and</text></clause> <clause id="HB65A190D5F4C4DADAFFA6ADEC6809C"><enum>(iv)</enum><text>the amount, in megawatts, of the project’s fuel cell energy generation.</text></clause></subparagraph></paragraph> <paragraph id="H746F163AD3EE4DFE9EBC7E85FDE00D6"><enum>(5)</enum><header>Certification of use of tax benefit</header><text>No later than 30 days after the completion of the project, each project must certify to the Secretary that the net benefit of the tax-exempt financing was used for the purposes described in paragraph (4).</text></paragraph> <paragraph id="H51A1D7A331894797A86B1F7693CB4087"><enum>(6)</enum><header>Definitions</header><text>For purposes of this subsection—</text> <subparagraph id="HB1E2A2A12FE7424AA99708B4B1B72EEA"><enum>(A)</enum><header>Rural State</header><text>The term <term>rural State</term> means any State which has—</text> <clause id="HF70418306FDD4382BE5D256E9DF8D26B"><enum>(i)</enum><text>a population of less than 4,500,000 according to the 2000 census,</text></clause> <clause id="HA745FBE1EFEF4B4F88F784072CB7D3E0"><enum>(ii)</enum><text>a population density of less than 150 people per square mile according to the 2000 census, and</text></clause> <clause id="HD85F35776B534EFEA9A89E40387C6E64"><enum>(iii)</enum><text>increased in population by less than half the rate of the national increase between the 1990 and 2000 censuses.</text></clause></subparagraph> <subparagraph id="HE302172F395A47CABE7641712EB7F15E"><enum>(B)</enum><header>Local Government</header><text>The term <term>local government</term> has the meaning given such term by section 1393(a)(5).</text></subparagraph> <subparagraph id="H0B8E16D369204B8D98729D8C9D03B24"><enum>(C)</enum><header>Net benefit of tax-exempt financing</header><text>The term <term>net benefit of tax-exempt financing</term> means the present value of the interest savings (determined by a calculation established by the Secretary) which result from the tax-exempt status of the bonds.</text></subparagraph></paragraph> <paragraph id="HBA49DF2AF80B426282558D459C4FB249"><enum>(7)</enum><header>Aggregate face amount of tax-exempt financing</header> <subparagraph id="HFFE7B4D3DE764AC7B079B31179FA1933"><enum>(A)</enum><header>In general</header><text>An issue shall not be treated as an issue described in subsection (a)(14) if the aggregate face amount of bonds issued by the State or local government pursuant thereto for a project (when added to the aggregate face amount of bonds previously so issued for such project) exceeds an amount designated by the Secretary as part of the designation.</text></subparagraph> <subparagraph id="HD13F63B7442D46B98FDB1400EEF393F2"><enum>(B)</enum><header>Limitation on amount of bonds</header><text>The Secretary may not allocate authority to issue qualified green building and sustainable design project bonds in an aggregate face amount exceeding $2,000,000,000.</text></subparagraph></paragraph> <paragraph id="HB46252B1BECC4E98B2EFC1B919AE72E0"><enum>(8)</enum><header>Termination</header><text>Subsection (a)(14) shall not apply with respect to any bond issued after September 30, 2009.</text></paragraph> <paragraph id="HB25E8CBEF85A4BD19D1CC9B3EB5E867B"><enum>(9)</enum><header>Treatment of current refunding bonds</header><text>Paragraphs (7)(B) and (8) shall not apply to any bond (or series of bonds) issued to refund a bond issued under subsection (a)(14) before October 1, 2009, if—</text> <subparagraph id="H96AB71AC7AFD4E1E896372D34420B933"><enum>(A)</enum><text>the average maturity date of the issue of which the refunding bond is a part is not later than the average maturity date of the bonds to be refunded by such issue,</text></subparagraph> <subparagraph id="HFD7B765B4D8246F4A1001366B5B5CAB9"><enum>(B)</enum><text>the amount of the refunding bond does not exceed the outstanding amount of the refunded bond, and</text></subparagraph> <subparagraph id="HBFE3863319574552A9F155AE3D45DB15"><enum>(C)</enum><text>the net proceeds of the refunding bond are used to redeem the refunded bond not later than 90 days after the date of the issuance of the refunding bond.</text></subparagraph></paragraph><continuation-text continuation-text-level="subsection">For purposes of subparagraph (A), average maturity shall be determined in accordance with section 147(b)(2)(A).</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H773768DCEA02432D90108BB05C009BD4"><enum>(c)</enum><header>Exemption from general State volume caps</header><text>Paragraph (3) of section 146(g) (relating to exception for certain bonds) is amended—</text> <paragraph id="H1073ECAEC9894EB5848800AD6D93D09C"><enum>(1)</enum><text>by striking <quote>or (13)</quote> and inserting <quote>(13), or (14)</quote>, and</text></paragraph> <paragraph id="H2A5AA91464E94BEC9FBCD2CEF8C815"><enum>(2)</enum><text>by striking <quote>and qualified public educational facilities</quote> and inserting <quote>qualified public educational facilities, and qualified green building and sustainable design projects</quote>.</text></paragraph></subsection> <subsection id="H87AC82DEFC484AB3A9B84F032661645C"><enum>(d)</enum><header>Special rule for assets financed under this Section and accountability</header> <paragraph id="H7A9DF823F4A64135AF131DC8A9A5EE1"><enum>(1)</enum><header>Denial of double benefit</header><text>Any asset financed with bonds issued pursuant to this section shall be ineligible for any credit or deduction established under the <short-title>Energy Tax Policy Act of 2004</short-title>.</text></paragraph> <paragraph id="HEACD60221E214E2388D1321643C2BBB"><enum>(2)</enum><header>Accountability</header><text>Each issuer shall maintain, on behalf of each project, an interest bearing reserve account equal to 1 percent of the net proceeds of any bond issued under this section for such project. Not later than 5 years after the date of issuance, the Secretary of the Treasury, after consultation with the Administrator of the Environmental Protection Agency, shall determine whether the project financed with such bonds has substantially complied with the terms and conditions described in <external-xref legal-doc="usc" parsable-cite="usc/26/142">section 142(l)(4)</external-xref> of the Internal Revenue Code of 1986 (as added by this section). If the Secretary, after such consultation, certifies that the project has substantially complied with such terms and conditions and meets the commitments set forth in the application for such project described in section 142(l)(4) of such Code, amounts in the reserve account, including all interest, shall be released to the project. If the Secretary determines that the project has not substantially complied with such terms and conditions, amounts in the reserve account, including all interest, shall be paid to the United States Treasury.</text></paragraph></subsection> <subsection id="HE87A05AAA7B043E296EF067E6E3D5017"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to bonds issues after the date of the enactment of this Act.</text></subsection></section></subtitle> <enum>XIV</enum><header>Miscellaneous</header> <subtitle id="H8D773815B7A84772995F0058D0683525"><enum>A</enum><header>Rural and Remote Electricity Construction</header> <section id="HD58C4A9454204AE6002E12FB51E2FE01" section-type="subsequent-section"><enum>1401.</enum><header>Denali Commission programs</header> <subsection id="H77E37E9BD7FC489B939DAE922D38DEF"><enum>(a)</enum><header>Power cost equalization program</header><text>There are authorized to be appropriated to the Denali Commission established by the Denali Commission Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/42/3121">42 U.S.C. 3121</external-xref> note) not more than $5,000,000 for each of fiscal years 2005 through 2011 for the purposes of funding the power cost equalization program established under section 42.45.100 of the Alaska Statutes.</text></subsection> <subsection id="H1A51417C7A0C4E96BB00BAF6E6408166"><enum>(b)</enum><header>Availability of funds</header> <paragraph id="H1811568A6F084F25B1B5CBC14D42AEDB"><enum>(1)</enum><header>Purpose</header><text>Amounts described in paragraph (2) shall be available to the Denali Commission to permit energy generation and development (including fuel cells, hydroelectric, solar, wind, wave, and tidal energy, and alternative energy sources), energy transmission (including interties), fuel tank replacement and clean-up, fuel transportation networks and related facilities, power cost equalization programs, and other energy programs, notwithstanding any other provision of law.</text></paragraph> <paragraph id="HFE8F3F5A0FEA48AC9321898519AEE306"><enum>(2)</enum><header>Amounts</header> <subparagraph display-inline="yes-display-inline" id="HEEABC1B54193428EBB25D2208C2B69D6"><enum>(A)</enum><text>Except as provided in subparagraph (B), the amounts referred to in paragraph (1) shall be any Federal royalties, rents, and bonuses derived from the Federal share of Federal oil and gas leases in the National Petroleum Reserve in Alaska, up to a maximum of $50,000,000, for each of the fiscal years 2004 through 2013.</text></subparagraph> <subparagraph indent="up1" id="H43A37376FB694E5DB992E4E6C07B73E"><enum>(B)</enum><text>If amounts available under subparagraph (A) for one of the fiscal years 2004 through 2013 are less than $50,000,000, the Secretary of Energy shall make available an amount sufficient to ensure that the amount available under this subsection for that fiscal year equals $50,000,000, from amounts remaining after deposits are made under section 949(a)(1), from the same source from which those deposits are made.</text></subparagraph></paragraph></subsection></section> <section id="H8CCEC344A11C49FFB7D7498CA031942D"><enum>1402.</enum><header>Rural and remote community assistance</header> <subsection id="H708B0710D8224A508472EB8B282402F3"><enum>(a)</enum><header>Program</header><text>Section 19 of the Rural Electrification Act of 1936 (7 U.S.C 918a) is amended by striking all that precedes subsection (b) and inserting the following:</text> <quoted-block id="H0050B096D6CE4FA6AEDEB427E80553E8"> <section id="H54CC35BF15AE44A08171D60051F0A234"><enum>19.</enum><header>Electric generation, transmission, and distribution facilities efficiency grants and loans to rural and remote communities with extremely high electricity costs</header> <subsection id="H1FF196767D5A4D3A8C00FEE383FC8EE7"><enum>(a)</enum><header>In general</header><text>The Secretary, acting through the Rural Utilities Service, may—</text> <paragraph id="HB2F755BC73674EA3B07EE932ADFE3B89"><enum>(1)</enum><text>in coordination with State rural development initiatives, make grants and loans to persons, States, political subdivisions of States, and other entities organized under the laws of States, to acquire, construct, extend, upgrade, and otherwise improve electric generation, transmission, and distribution facilities serving communities in which the average revenue per kilowatt hour of electricity for all consumers is greater than 150 percent of the average revenue per kilowatt hour of electricity for all consumers in the United States (as determined by the Energy Information Administration using the most recent data available);</text></paragraph> <paragraph id="H3C2AFE196EA64912B5D189DDB3981676"><enum>(2)</enum><text>make grants and loans to the Denali Commission established by the Denali Commission Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/42/3121">42 U.S.C. 3121</external-xref> note; Public 105–277) to be used for the purpose of providing funds to acquire, construct, extend, upgrade, finance, and otherwise improve electric generation, transmission, and distribution facilities serving communities described in paragraph (1); and</text></paragraph> <paragraph id="H4DC2B272EFF94F2DB028071D4C299C88"><enum>(3)</enum><text>make grants to State entities to establish and support a revolving fund to provide a more cost-effective means of purchasing fuel in areas where the fuel cannot be shipped by means of surface transportation.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H1B72B8C1AC434FFBB23DD4B958008054"><enum>(b)</enum><header>Definition of person</header><text>Section 13 of the Rural Electrification Act of 1936 (<external-xref legal-doc="usc" parsable-cite="usc/7/913">7 U.S.C. 913</external-xref>) is amended by striking <quote>or association</quote> and inserting <quote>association, or Indian tribe (as defined in section 4 of the <act-name parsable-cite="ISDA">Indian Self-Determination and Education Assistance Act</act-name>)</quote>.</text></subsection></section></subtitle> <subtitle id="HEC67BA1D6BC24EBFBBFB4C5FECA48BEC"><enum>B</enum><header>Coastal programs</header> <section id="H82F39B516BB34E1BAAC5028600A708AB"><enum>1411.</enum><header>Royalty payments under leases under the Outer Continental Shelf Lands Act</header> <subsection id="H3908A7EE0A9D4015B2A5D1BAB11E5BD0"><enum>(a)</enum><header>Royalty relief</header> <paragraph id="H6C81934F455E4F609290A5BBBE55004D"><enum>(1)</enum><header>In general</header><text>For purposes of providing compensation for lessees and a State for which amounts are authorized by section 6004(c) of the Oil Pollution Act of 1990 (<external-xref legal-doc="public-law" parsable-cite="pl/101/380">Public Law 101–380</external-xref>), a lessee may withhold from payment any royalty due and owing to the United States under any leases under the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1301">43 U.S.C. 1301 et seq.</external-xref>) for offshore oil or gas production from a covered lease tract if, on or before the date that the payment is due and payable to the United States, the lessee makes a payment to the Secretary of the Interior of 44 cents for every $1 of royalty withheld.</text></paragraph> <paragraph id="H269F724CF5774FFD867BBBA1D2A0138"><enum>(2)</enum><header>Use of amounts paid to Secretary</header><text>Within 30 days after the Secretary of the Interior receives payments under paragraph (1), the Secretary of the Interior shall—</text> <subparagraph id="H7D62FE23FF8343B3B210A9DDCF724BEE"><enum>(A)</enum><text>make 47.5 percent of such payments available to the State referred to in section 6004(c) of the Oil Pollution Act of 1990; and</text></subparagraph> <subparagraph id="H4D0D89A11D6B446FAAF4EAB2F4BCC487"><enum>(B)</enum><text>make 52.5 percent of such payments available equally, only for the programs and purposes identified as number 282 at page 1389 of House Report number 108–10 and for a program described at page 1159 of that Report in the State referred to in such section 6004(c).</text></subparagraph></paragraph> <paragraph id="H3A65E6A12FC540599487BEBF5C3B8285"><enum>(3)</enum><header>Treatment of amounts</header><text>Any royalty withheld by a lessee in accordance with this section (including any portion thereof that is paid to the Secretary of the Interior under paragraph (1)) shall be treated as paid for purposes of satisfaction of the royalty obligations of the lessee to the United States.</text></paragraph> <paragraph id="H49DF551C250B4F96A74197F54F3BE585"><enum>(4)</enum><header>Certification of withheld amounts</header><text>The Secretary of the Treasury shall—</text> <subparagraph id="H182FED7E3ED8435292BC746EA4A76B4D"><enum>(A)</enum><text>determine the amount of royalty withheld by a lessee under this section; and</text></subparagraph> <subparagraph id="H29860FD9C6AF4B989E94E23131C027D4"><enum>(B)</enum><text>promptly publish a certification when the total amount of royalty withheld by the lessee under this section is equal to—</text> <clause id="HAD994CE95D5E4819AD325FD7414E808C"><enum>(i)</enum><text>the dollar amount stated at page 47 of Senate Report number 101–534, which is designated therein as the total drainage claim for the West Delta field; plus</text></clause> <clause id="HF3604B9F90124D1C952CB5D177EE3E9"><enum>(ii)</enum><text>interest as described at page 47 of that Report.</text></clause></subparagraph></paragraph></subsection> <subsection id="HAFEB85115C3A4F1AB75950EE2DC86AC"><enum>(b)</enum><header>Period of royalty relief</header><text>Subsection (a) shall apply to royalty amounts that are due and payable in the period beginning on January 1, 2004, and ending on the date on which the Secretary of the Treasury publishes a certification under subsection (a)(4)(B).</text></subsection> <subsection id="H1A7E020FA9734C14BA7C8693446FF222"><enum>(c)</enum><header>Definitions</header><text>As used in this section:</text> <paragraph id="H14F52F79737843CB958FB25671007FA9"><enum>(1)</enum><header>Covered lease tract</header><text>The term <term>covered lease tract</term> means a leased tract (or portion of a leased tract)—</text> <subparagraph id="HFD0C020FCB904C24942B6E6DEC7D02C3"><enum>(A)</enum><text>lying seaward of the zone defined and governed by section 8(g) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(g)</external-xref>); or</text></subparagraph> <subparagraph id="H86D9FAE680DB4C469327A74124FF7892"><enum>(B)</enum><text>lying within such zone but to which such section does not apply.</text></subparagraph></paragraph> <paragraph id="HED3F75CF39794960AC8D09AF18F88DDD"><enum>(2)</enum><header>Lessee</header><text>The term <term>lessee</term>—</text> <subparagraph id="HEF51CBA458DF4A8EA6C4717897305371"><enum>(A)</enum><text>means a person or entity that, on the date of the enactment of the Oil Pollution Act of 1990, was a lessee referred to in section 6004(c) of that Act (as in effect on that date of the enactment), but did not hold lease rights in Federal offshore lease OCS–G–5669; and</text></subparagraph> <subparagraph id="HC1760FD828A84F02A3E594C676B002E4"><enum>(B)</enum><text>includes successors and affiliates of a person or entity described in subparagraph (A).</text></subparagraph></paragraph></subsection></section> <section id="HA0019608C093454100685B75394EFAB9"><enum>1412.</enum><header>Domestic offshore energy reinvestment</header> <subsection id="HC73BDD0350AD44D9891D38A7CAF8005F"><enum>(a)</enum><header>Domestic offshore energy reinvestment program</header><text>The Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="HCFF1DA7F131E46CA8541605480A62F9B"> <section id="H4C598DEEDC0D49F489A947E2898B25F9"><enum>32.</enum><header>Domestic offshore energy reinvestment program</header> <subsection id="HB3815D1DCC6242B68CE8C987B1C366C2"><enum>(a)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="HF275A64F6F624584B2ED0089709FA9BE"><enum>(1)</enum><header>Approved plan</header><text>The term <term>approved plan</term> means a Secure Energy Reinvestment Plan approved by the Secretary under this section.</text></paragraph> <paragraph id="H47A9760C3DA14FB0802EC99BA2BC504D"><enum>(2)</enum><header>Coastal Energy State</header><text>The term <term>Coastal Energy State</term> means a Coastal State off the coastline of which, within the seaward lateral boundary as determined by the map referenced in subsection (c)(2)(A), outer Continental Shelf bonus bids or royalties are generated, other than bonus bids or royalties from a leased tract within any area of the outer Continental Shelf for which a moratorium on new leasing was in effect as of January 1, 2002, unless the lease was issued before the establishment of the moratorium and was in production on such date.</text></paragraph> <paragraph id="H57BB37FC5D4D4743B95E7335FCB04B22"><enum>(3)</enum><header>Coastal political subdivision</header><text>The term <term>coastal political subdivision</term> means a county, parish, or other equivalent subdivision of a Coastal Energy State, all or part of which lies within the boundaries of the coastal zone of the State, as identified in the State’s approved coastal zone management program under the <act-name parsable-cite="CZMA72">Coastal Zone Management Act of 1972</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/16/1451">16 U.S.C. 1451 et seq.</external-xref>) on the date of the enactment of this section.</text></paragraph> <paragraph id="H61C7BC7813544A6FB98059233FEA88AE"><enum>(4)</enum><header>Coastal population</header><text>The term <term>coastal population</term> means the population of a coastal political subdivision, as determined by the most recent official data of the Census Bureau.</text></paragraph> <paragraph id="H8167CA0B86594ACDAB048CCDBC44B826"><enum>(5)</enum><header>Coastline</header><text>The term <term>coastline</term> has the same meaning as the term <term>coast line</term> in subsection 2(c) of the Submerged Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1301">43 U.S.C. 1301(c)</external-xref>).</text></paragraph> <paragraph id="H9D2EC4F5A99144359D1CF3D9E6003114"><enum>(6)</enum><header>Fund</header><text>The term <term>Fund</term> means the Secure Energy Reinvestment Fund established by this section.</text></paragraph> <paragraph id="H9C7B8961AD224CF9BE1E3240D015F695"><enum>(7)</enum><header>Leased tract</header><text>The term <term>leased tract</term> means a tract maintained under section 6 or leased under section 8 for the purpose of drilling for, developing, and producing oil and natural gas resources.</text></paragraph> <paragraph id="HFFC78109B36741148475890244DE891E"><enum>(8)</enum><header>Qualified outer Continental Shelf revenues</header> <subparagraph display-inline="yes-display-inline" id="HFD030F0026DE4FF58BFEEF0000E5DACD"><enum>(A)</enum><text>Except as provided in subparagraph (B), the term <term>qualified outer Continental Shelf revenues</term> means all amounts received by the United States on or after October 1, 2003, from each leased tract or portion of a leased tract lying seaward of the zone defined and governed by section 8(g), or lying within such zone but to which section 8(g) does not apply, including bonus bids, rents, royalties (including payments for royalties taken in kind and sold), net profit share payments, and related interest.</text></subparagraph> <subparagraph indent="up1" id="H63A8515C135D4B0AAEEBB082DDB7C29B"><enum>(B)</enum><text>Such term does not include any revenues from a leased tract or portion of a leased tract that is included within any area of the outer Continental Shelf for which a moratorium on new leasing was in effect as of January 1, 2002, unless the lease was issued before the establishment of the moratorium and was in production on such date.</text></subparagraph></paragraph> <paragraph id="H02F3B433B1E042D4ADDDC760061DAC8"><enum>(9)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of the Interior.</text></paragraph></subsection> <subsection id="H332E4183C208423C85AAC681B068FBC"><enum>(b)</enum><header>Secure Energy Reinvestment Fund</header> <paragraph id="H216537DDC60644B5AA6F0010BC18BDE6"><enum>(1)</enum><header>Establishment</header><text>There is established in the Treasury of the United States a separate account which shall be known as the <quote>Secure Energy Reinvestment Fund</quote>. The Fund shall consist of amounts deposited under paragraph (2), and such other amounts as may be appropriated to the Fund.</text></paragraph> <paragraph id="H2AFDB45F14A940D2A2BA7269972452E3"><enum>(2)</enum><header>Deposits</header><text>For each fiscal year after fiscal year 2003, the Secretary of the Treasury shall deposit into the Fund the following:</text> <subparagraph id="H6164A5813E514496A5736C3E2B5CC3A4"><enum>(A)</enum><text>Notwithstanding section 9, all qualified outer Continental Shelf revenues attributable to royalties received by the United States in the fiscal year that are in excess of the following amount:</text> <clause id="H1E3C1871DCCC4AB09F10F53E4BB6B6D3"><enum>(i)</enum><text>$3,455,000,000 in the case of royalties received in fiscal year 2004.</text></clause> <clause id="H44808836EF174B38813D396DF77BB4A0"><enum>(ii)</enum><text>$3,726,000,000 in the case of royalties received in fiscal year 2005.</text></clause> <clause id="H4500986A8A8F4FC8816C4C4819FF3D44"><enum>(iii)</enum><text>$4,613,000,000 in the case of royalties received in fiscal year 2006.</text></clause> <clause id="H6E7D87A1C0AB47A2A85EC900F828D8F0"><enum>(iv)</enum><text>$5,226,000,000 in the case of royalties received in fiscal year 2007.</text></clause> <clause id="H8E70CC0BEF9F4897BC069D5C708CE034"><enum>(v)</enum><text>$5,841,000,000 in the case of royalties received in fiscal year 2008.</text></clause> <clause id="HEF1E23282ADC4CDE8DB6DCD904D71175"><enum>(vi)</enum><text>$5,763,000,000 in the case of royalties received in fiscal year 2009.</text></clause> <clause id="HE5F08D4906EC4718B837BF2D1C26EE05"><enum>(vii)</enum><text>$6,276,000,000 in the case of royalties received in fiscal year 2010.</text></clause> <clause id="H07C68207C48B487CA8105515BE04CB9C"><enum>(viii)</enum><text>$6,351,000,000 in the case of royalties received in fiscal year 2011.</text></clause> <clause id="HE589D4D48F534482B5002037BDEC07E"><enum>(ix)</enum><text>$6,551,000,000 in the case of royalties received in fiscal year 2012.</text></clause> <clause id="H58498EC2D24848219452C0F533C56365"><enum>(x)</enum><text>$5,120,000,000 in the case of royalties received in fiscal year 2013.</text></clause></subparagraph> <subparagraph id="H7B1B32BACC934DE3A21DF73E22F3F7E"><enum>(B)</enum><text>Notwithstanding section 9, all qualified outer Continental shelf revenues attributable to bonus bids received by the United States in each of the fiscal years 2004 through 2013 that are in excess of $1,000,000,000.</text></subparagraph> <subparagraph id="H8CCC58C380944CA4A400BFF2BCED33F"><enum>(C)</enum><text>Notwithstanding section 9, in addition to amounts deposited under subparagraphs (A) and (B), $35,000,000 of amounts received by the United States each fiscal year as royalties for oil or gas production on the outer Continental Shelf, except that no amounts shall be deposited under this subparagraph before fiscal year 2004 or after fiscal year 2013.</text></subparagraph> <subparagraph id="HFD6B05C12B3D4FFDA2E735253CE58E44"><enum>(D)</enum><text>All interest earned under paragraph (4).</text></subparagraph> <subparagraph id="H3B9E21AFB7C9480FB78BA5BA03663EDF"><enum>(E)</enum><text>All repayments under subsection (f).</text></subparagraph></paragraph> <paragraph id="H7CFB49753D234BE6B0B3C72B2DF25EC9"><enum>(3)</enum><header>Reduction in deposit</header> <subparagraph display-inline="yes-display-inline" id="HA20C95CCB2284BBAA6D8AD65A17BF7CB"><enum>(A)</enum><text>For each fiscal year after fiscal year 2013 in which amounts received by the United States as royalties for oil or gas production on the outer Continental Shelf are less than the sum of the amounts described in subparagraph (B) (before the application of this subparagraph), the Secretary of the Treasury shall reduce each of the amounts described in subparagraph (B) proportionately.</text></subparagraph> <subparagraph indent="up1" id="H7975B1E1EB2C40DBB21CF5DD3F36B1BA"><enum>(B)</enum><text>The amounts referred to in subparagraph (A) are the following:</text> <clause id="HFEE81D34B23540959CEC4531AC47273E"><enum>(i)</enum><text>The amount required to be covered into the Historic Preservation Fund under section 108 of the National Historic Preservation Act (<external-xref legal-doc="usc" parsable-cite="usc/16/470h">16 U.S.C. 470h</external-xref>) on the date of the enactment of this paragraph.</text></clause> <clause id="H86BDA3A52E6A4FA68CE5EFF578791333"><enum>(ii)</enum><text>The amount required to be credited to the Land and Water Conservation Fund under section 2(c)(2) of the <act-name parsable-cite="LWCFA">Land and Water Conservation Fund Act of 1965</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/16/4601-5">16 U.S.C. 4601–5(c)(2)</external-xref>) on the date of the enactment of this paragraph.</text></clause> <clause id="H2F0110811A51446CB0FF29AB8E3C42"><enum>(iii)</enum><text>The amount required to be deposited under subparagraph (C) of paragraph (2) of this subsection.</text></clause></subparagraph></paragraph> <paragraph id="HEB1D58A624914D378C9F23972E398466"><enum>(4)</enum><header>Investment</header><text>The Secretary of the Treasury shall invest moneys in the Fund (including interest) in public debt securities with maturities suitable to the needs of the Fund, as determined by the Secretary of the Treasury, and bearing interest at rates determined by the Secretary of the Treasury, taking into consideration current market yields on outstanding marketable obligations of the United States of comparable maturity. Such invested moneys shall remain invested until needed to meet requirements for disbursement under this section.</text></paragraph> <paragraph id="HB0C8C37774B64EF6BB057EBE00D91F26"><enum>(5)</enum><header>Review and revision of baseline amounts</header><text>Not later than December 31, 2008, the Secretary of the Interior, in consultation with the Secretary of the Treasury, shall—</text> <subparagraph id="H21231D82DF224163A51EDC0074FC76B4"><enum>(A)</enum><text>determine the amount and composition of outer Continental Shelf revenues that were received by the United States in each of the fiscal years 2004 through 2008;</text></subparagraph> <subparagraph id="HCB47C2D07F334B5AA093A30000981FF6"><enum>(B)</enum><text>project the amount and composition of outer Continental Shelf revenues that will be received in the United States in each of the fiscal years 2009 through 2013; and</text></subparagraph> <subparagraph id="HCC0F6DE150CE462091A5E8B0B351F2FF"><enum>(C)</enum><text>submit to the Congress a report regarding whether any of the dollar amounts set forth in clauses (v) though (x) of paragraph (2)(A) or paragraph (2)(B) should be modified to reflect those projections.</text></subparagraph></paragraph> <paragraph id="H8AE9628500154035AEBCA879B4E4B5E"><enum>(6)</enum><header>Authorization of appropriation of additional amounts</header><text>In addition to the amounts deposited into the Fund under paragraph (2) there are authorized to be appropriated to the Fund—</text> <subparagraph id="H34A57E9035A54C6096C9A3E9C88BCD74"><enum>(A)</enum><text>for each of fiscal years 2004 through 2013 up to $500,000,000; and</text></subparagraph> <subparagraph id="H6BF04461FD554E57B7DF571051827DA"><enum>(B)</enum><text>for each fiscal year after fiscal year 2013 up to 25 percent of qualified outer Continental Shelf revenues received by the United States in the preceding fiscal year.</text></subparagraph></paragraph></subsection> <subsection id="HB861882A831142C3BAA7434201FA1D8"><enum>(c)</enum><header>Use of Secure Energy Reinvestment Fund</header> <paragraph id="HAD07079CC3594CE4BE4E28F2525DAD34"><enum>(1)</enum><header>In general</header> <subparagraph display-inline="yes-display-inline" id="H67722800C5A441A388EF151F7C2345E2"><enum>(A)</enum><text>The Secretary shall use amounts in the Fund remaining after the application of subsections (h) and (i) to pay to each Coastal Energy State that has a Secure Energy Reinvestment Plan approved by the Secretary under this section, and to coastal political subdivisions of such State, the amount allocated to the State or coastal political subdivision, respectively, under this subsection.</text></subparagraph> <subparagraph indent="up1" id="HB14879FCC46E4A1A85497824DA59005F"><enum>(B)</enum><text>The Secretary shall make payments under this paragraph in December of 2004, and of each year thereafter, from revenues received by the United States in the immediately preceding fiscal year.</text></subparagraph></paragraph> <paragraph id="H5A766F02B1C0438AA79F9DBFCDBEBDE3"><enum>(2)</enum><header>Allocation</header><text>The Secretary shall allocate amounts deposited into the Fund in a fiscal year, and other amounts determined by the Secretary to be available, among Coastal Energy States that have an approved plan, and to coastal political subdivisions of such States, as follows:</text> <subparagraph id="H205CD54D1971480A94C7E66665A41DEF"><enum>(A)</enum> <clause display-inline="yes-display-inline" id="H7D69A061E79A45F697E47B913C3BBD00"><enum>(i)</enum><text>Of the amounts made available for each of the first 10 fiscal years for which amounts are available for allocation under this paragraph, the allocation for each Coastal Energy State shall be calculated based on the ratio of qualified outer Continental Shelf revenues generated off the coastline of the Coastal Energy State to the qualified outer Continental Shelf revenues generated off the coastlines of all Coastal Energy States for the period beginning January 1, 1992, and ending December 31, 2001.</text></clause> <clause indent="up1" id="H5E98A5848400494FA25688B0247C10A8"><enum>(ii)</enum><text>Of the amounts available for a fiscal year in a subsequent 10-fiscal-year period, the allocation for each Coastal Energy State shall be calculated based on such ratio determined by the Secretary with respect to qualified outer Continental Shelf revenues generated in each subsequent corresponding 10-year period.</text></clause> <clause indent="up1" id="H43FEC1C9071840DEAAB36BDABFEC6C9D"><enum>(iii)</enum><text>For purposes of this subparagraph, qualified outer Continental Shelf revenues shall be considered to be generated off the coastline of a Coastal Energy State if the geographic center of the lease tract from which the revenues are generated is located within the area formed by the extension of the State’s seaward lateral boundaries, calculated using the strict and scientifically derived conventions established to delimit international lateral boundaries under the Law of the Sea, as indicated on the map entitled <quote>Calculated Seaward Lateral Boundaries</quote> and dated October 2003, on file in the Office of the Director, Minerals Management Service.</text></clause></subparagraph> <subparagraph id="H40E48B333A0840C0AD4B00679683D154"><enum>(B)</enum><text>35 percent of each Coastal Energy State’s allocable share as determined under subparagraph (A) shall be allocated among and paid directly to the coastal political subdivisions of the State by the Secretary based on the following formula:</text> <clause id="HBD305722EC644B0990E212B1C0285474"><enum>(i)</enum><text>25 percent shall be allocated based on the ratio of each coastal political subdivision’s coastal population to the coastal population of all coastal political subdivisions of the Coastal Energy State.</text></clause> <clause id="H9A5CB500C0574196B63D9EB44311CDA8"><enum>(ii)</enum><text>25 percent shall be allocated based on the ratio of each coastal political subdivision’s coastline miles to the coastline miles of all coastal political subdivisions of the State. In the case of a coastal political subdivision without a coastline, the coastline of the political subdivision for purposes of this clause shall be one-third the average length of the coastline of the other coastal political subdivisions of the State.</text></clause> <clause id="H3B38C8F0A30C4E469EC148456067C6DA"><enum>(iii)</enum><text>50 percent shall be allocated based on a formula that allocates 75 percent of the funds based on such coastal political subdivision’s relative distance from any leased tract used to calculate that State’s allocation and 25 percent of the funds based on the relative level of outer Continental Shelf oil and gas activities in a coastal political subdivision to the level of outer Continental Shelf oil and gas activities in all coastal political subdivisions in such State, as determined by the Secretary, except that in the case of a coastal political subdivision in the State of California that has a coastal shoreline, that is not within 200 miles of the geographic center of a leased tract or portion of a leased tract, and in which there is located one or more oil refineries the allocation under this clause shall be determined as if that coastal political subdivision were located within a distance of 50 miles from the geographic center of the closest leased tract with qualified outer Continental Shelf revenues.</text></clause></subparagraph></paragraph> <paragraph id="HE8A7E2AB58F04BE39265CD14A092212B"><enum>(3)</enum><header>Reallocation</header><text>Any amount allocated to a Coastal Energy State or coastal political subdivision of such a State but not disbursed because of a failure of a Coastal Energy State to have an approved plan shall be reallocated by the Secretary among all other Coastal Energy States in a manner consistent with this subsection, except that the Secretary—</text> <subparagraph id="H3542E2526A1C41008129F8A63F455C0"><enum>(A)</enum><text>shall hold the amount in escrow within the Fund until the earlier of the end of the next fiscal year in which the allocation is made or the final resolution of any appeal regarding the disapproval of a plan submitted by the State under this section; and</text></subparagraph> <subparagraph id="HCD92B4DD951E49CC00B361AADF012305"><enum>(B)</enum><text>shall continue to hold such amount in escrow until the end of the subsequent fiscal year thereafter, if the Secretary determines that such State is making a good faith effort to develop and submit, or update, a Secure Energy Reinvestment Plan under subsection (d).</text></subparagraph></paragraph> <paragraph id="H6F4CEB7F92484634AB6E006DC1B317FD"><enum>(4)</enum><header>Minimum share</header><text>Notwithstanding any other provision of this subsection, the amount allocated under this subsection to each Coastal Energy State each fiscal year shall be not less than 5 percent of the total amount available for that fiscal year for allocation under this subsection to Coastal Energy States, except that for any Coastal Energy State determined by the Secretary to have an area formed by the extension of the State’s seaward lateral boundary, as designated by the map referenced in paragraph (2)(A)(iii), of less than 490 square statute miles, the amount allocated to such State shall not be less than 10 percent of the total amount available for that fiscal year for allocation under this subsection.</text></paragraph> <paragraph id="HADB36020E11D4CC5AB1C12D340D425FE"><enum>(5)</enum><header>Recomputation</header><text>If the allocation to one or more Coastal Energy States under paragraph (4) with respect to a fiscal year is greater than the amount that would be allocated to such States under this subsection if paragraph (4) did not apply, then the allocations under this subsection to all other Coastal Energy States shall be paid from the amount remaining after deduction of the amounts allocated under paragraph (4), but shall be reduced on a pro rata basis by the sum of the allocations under paragraph (4) so that not more than 100 percent of the funds available in the Fund for allocation with respect to that fiscal year is allocated.</text></paragraph></subsection> <subsection id="HC68491E908494EBFA47F31AD281D0067"><enum>(d)</enum><header>Secure Energy Reinvestment Plan</header> <paragraph id="HCF26BE1EFAB643CBAA952460F18CF835"><enum>(1)</enum><header>Development and submission of State plans</header><text>The Governor of each State seeking to receive funds under this section shall prepare, and submit to the Secretary, a Secure Energy Reinvestment Plan describing planned expenditures of funds received under this section. The Governor shall include in the State plan submitted to the Secretary plans prepared by the coastal political subdivisions of the State. The Governor and the coastal political subdivision shall solicit local input and provide for public participation in the development of the State plan. In describing the planned expenditures, the State and coastal political subdivisions shall include only items that are uses authorized under subsection (e).</text></paragraph> <paragraph id="H3490E0B6F5A44F13AC4C00C85B83E2C5"><enum>(2)</enum><header>Approval or disapproval</header> <subparagraph id="HA7E8F210D21E4DE9A85E21BA6DA25278"><enum>(A)</enum><header>In general</header><text>The Secretary may not disburse funds to a State or coastal political subdivision of a State under this section before the date the State has an approved plan. The Secretary shall approve a Secure Energy Reinvestment Plan submitted by a State under paragraph (1) if the Secretary determines that the expenditures provided for in the plan are uses authorized under subsection (e), and that the plan contains each of the following:</text> <clause id="H1D9D78CFF53B47769F48654FD8005EC4"><enum>(i)</enum><text>The name of the State agency that will have the authority to represent and act for the State in dealing with the Secretary for purposes of this section.</text></clause> <clause id="H695ED717B1594684B41823A51550709F"><enum>(ii)</enum><text>A program for the implementation of the plan, that (I) has as a goal improving the environment, (II) has as a goal addressing the impacts of oil and gas production from the outer Continental Shelf, and (III) includes a description of how the State and coastal political subdivisions of the State will evaluate the effectiveness of the plan.</text></clause> <clause id="HB4E0D215DAE24BF8A1440072394CB459"><enum>(iii)</enum><text>Certification by the Governor that ample opportunity has been accorded for public participation in the development and revision of the plan.</text></clause> <clause id="H83906ADEBEC747B0A316A77346776EF0"><enum>(iv)</enum><text>Measures for taking into account other relevant Federal resources and programs. The plan shall be correlated so far as practicable with other State, regional, and local plans.</text></clause> <clause id="HA9F4291061FB42578763FD4DD3ED189D"><enum>(v)</enum><text>For any State for which the ratio determined under subsection (c)(2)(A)(i) or (c)(2)(A)(ii), as appropriate, expressed as a percentage, exceeds 25 percent, a plan to spend not less than 30 percent of the total funds provided under this section each fiscal year to that State and appropriate coastal political subdivisions, to address the socioeconomic or environmental impacts identified in the plan that remain significant or progressive after implementation of mitigation measures identified in the most current environmental impact statement (as of the date of the enactment of this clause) required under the National Environmental Protection Act of 1969 for lease sales under this Act.</text></clause> <clause id="HEC7C387296BB4C9F0006AD55F7811464"><enum>(vi)</enum><text>A plan to utilize at least one-half of the funds provided pursuant to subsection (c)(2)(B), and a portion of other funds provided to such State under this section, on programs or projects that are coordinated and conducted in partnership between the State and coastal political subdivision.</text></clause></subparagraph> <subparagraph id="H4317E8BB7A9649A79B68CC86E5A16F1F"><enum>(B)</enum><header>Procedure and timing</header><text>The Secretary shall approve or disapprove each plan submitted in accordance with this subsection within 90 days after its submission.</text></subparagraph></paragraph> <paragraph id="H139BCF38D82E4535A2B47611F931A91F"><enum>(3)</enum><header>Amendment or revision</header><text>Any amendment to or revision of an approved plan shall be prepared and submitted in accordance with the requirements under this paragraph for the submittal of plans, and shall be approved or disapproved by the Secretary in accordance with paragraph (2)(B).</text></paragraph></subsection> <subsection id="H03EB7AA6303243F99CA8E2907980058"><enum>(e)</enum><header>Authorized uses</header><text>A Coastal Energy State, and a coastal political subdivision of such a State, shall use amounts paid under this section (including any such amounts deposited into a trust fund administered by the State or coastal political subdivision dedicated to uses consistent with this subsection), in compliance with Federal and State law and the approved plan of the State, only for one or more of the following purposes:</text> <paragraph id="H2484D67D4C99423D87DE00806946381B"><enum>(1)</enum><text>Projects and activities, including educational activities, for the conservation, protection, or restoration of coastal areas including wetlands.</text></paragraph> <paragraph id="H7F3533A573CB432D878F9594F7CE39D6"><enum>(2)</enum><text>Mitigating damage to, or the protection of, fish, wildlife, or natural resources.</text></paragraph> <paragraph id="H48AB03DEEC614E0690F96C19F3941587"><enum>(3)</enum><text>To the extent of such sums as are considered reasonable by the Secretary, planning assistance and administrative costs of complying with this section.</text></paragraph> <paragraph id="H6D95167CE69E475297F43856E7A4B3FB"><enum>(4)</enum><text>Implementation of federally approved plans or programs for marine, coastal, subsidence, or conservation management or for protection of resources from natural disasters.</text></paragraph> <paragraph id="HCCDC3B76BD4F46C891ACEBD74E7220EB"><enum>(5)</enum><text>Mitigating impacts of outer Continental Shelf activities through funding onshore infrastructure and public service needs.</text></paragraph></subsection> <subsection id="HA3487598EF7C430D93AC99AF411ED9B5"><enum>(f)</enum><header>Compliance with authorized uses</header><text>If the Secretary determines that an expenditure of an amount made by a Coastal Energy State or coastal political subdivision is not in accordance with the approved plan of the State (including the plans of coastal political subdivisions included in such plan), the Secretary shall not disburse any further amounts under this section to that Coastal Energy State or coastal political subdivision until—</text> <paragraph id="H04DB83E697ED4F9890207BB714AF7462"><enum>(1)</enum><text>the amount is repaid to the Secretary; or</text></paragraph> <paragraph id="H2BAA728CA87E445CAE5F9CBB515953D2"><enum>(2)</enum><text>the Secretary approves an amendment to the plan that authorizes the expenditure.</text></paragraph></subsection> <subsection id="HD8EB9F7E07B648CE8386AF2CDFD65E94"><enum>(g)</enum><header>Arbitration of State and local disputes</header><text>The Secretary may require, as a condition of any payment under this section, that a State or coastal political subdivision in a State must submit to arbitration—</text> <paragraph id="H9087B554EE5C4F7796FBFD8ED54F25CF"><enum>(1)</enum><text>any dispute between the State or coastal political subdivision (or both) and the Secretary regarding implementation of this section; and</text></paragraph> <paragraph id="HB674FC995FBF423091E702DD0EAA8B4"><enum>(2)</enum><text>any dispute between the State and political subdivision regarding implementation of this section, including any failure to include, in the plan submitted by the State for purposes of subsection (d), any spending plan of the coastal political subdivision.</text></paragraph></subsection> <subsection id="H8B3253752D3740778185929442F6E1B9"><enum>(h)</enum><header>Administrative expenses</header><text>Of amounts in the Fund each fiscal year, the Secretary may use up to one-half of one percent for the administrative costs of implementing this section.</text></subsection> <subsection id="HB7E2B7EC1D2A4F6DBC3B95234899D3EB"><enum>(i)</enum><header>Funding for consortium</header> <paragraph id="H539EC8B9839F4073817DB9691EE62B13"><enum>(1)</enum><header>In general</header><text>Of amounts deposited into the Fund in each fiscal year 2004 through 2013, 2 percent shall be available to the Secretary of the Interior to provide funding for the Coastal Restoration and Enhancement through Science and Technology program.</text></paragraph> <paragraph id="H5BEA9BA2A44C4480899B263D21B07499"><enum>(2)</enum><header>Treatment</header><text>Any amount available under this subsection for a fiscal year shall, for purposes of determining the amount appropriated under any other provision of law that authorizes appropriations to carry out the program referred to in paragraph (1), be treated as appropriated under that other provision.</text></paragraph></subsection> <subsection id="H08E0AE3AD81646F6960068432804B8C9"><enum>(j)</enum><header>Disposition of funds</header><text>A Coastal Energy State or coastal political subdivision may use funds provided to such entity under this section, subject to subsection (e), for any payment that is eligible to be made with funds provided to States under section 35 of the <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/30/191">30 U.S.C. 191</external-xref>).</text></subsection> <subsection id="HDB180D311EDE40E9A6B4E80F320EF45"><enum>(k)</enum><header>Reports</header><text>Each fiscal year following a fiscal year in which a Coastal Energy State or coastal political subdivision of a Coastal Energy State receives funds under this section, the Governor of the Coastal Energy State, in coordination with such State’s coastal political subdivisions, shall account for all funds so received for the previous fiscal year in a written report to the Secretary. The report shall include, in accordance with regulations prescribed by the Secretary, a description of all projects and activities that received such funds. In order to avoid duplication, such report may incorporate, by reference, any other reports required to be submitted under other provisions of law.</text></subsection> <subsection id="HE00EE8F61DB34907BCAAE277E5F85B2"><enum>(l)</enum><header>Signs</header><text>The Secretary shall require, as a condition of any allocation of funds provided with amounts made available by this section, that each State and coastal political subdivision shall include on any sign otherwise installed at any site at or near an entrance or public use focal point area for which such funds are used, a statement that the existence or development of the site (or both), as appropriate, is a product of such funds.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H0297328488794F2E00C9EF80A8CF1477"><enum>(b)</enum><header>Additional amendments</header><text>Section 31 of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1356a">43 U.S.C. 1356a</external-xref>) is amended—</text> <paragraph id="HC6046D054DC64E8FA7C8568F7CFA261F"><enum>(1)</enum><text>by striking subsection (a);</text></paragraph> <paragraph id="H219BC83464F640B983D744D426FF43DB"><enum>(2)</enum><text>in subsection (c) by striking <quote>For fiscal year 2001, $150,000,000 is</quote> and inserting <quote>Such sums as may be necessary to carry out this section are</quote>;</text></paragraph> <paragraph id="HC46E4AE466FA41F5A8CB94E963434011"><enum>(3)</enum><text>in subsection (d)(1)(B) by striking <quote>, except</quote> and all that follows through the end of the sentence and inserting a period;</text></paragraph> <paragraph id="HC32E6500D499419FA2D06F6679F28DB"><enum>(4)</enum><text>by redesignating subsections (b) though (g) in order as subsection (a) through (f); and</text></paragraph> <paragraph id="H7C82A1F1EDD54C58BC5B01ED44563481"><enum>(5)</enum><text>by striking <quote>subsection (f)</quote> each place it appears and inserting <quote>subsection (e)</quote>.</text></paragraph></subsection> <subsection id="H13A9A5147611440F8F556B3405554554"><enum>(c)</enum><header>Utilization of Coastal Restoration and Enhancement through Science and Technology program</header> <paragraph id="HAFCB900A946242878793E2BE33DCD9E4"><enum>(1)</enum><header>Authorization</header><text>The Secretary of the Interior and the Secretary of Commerce may each use the Coastal Restoration and Enhancement through Science and Technology program for the purposes of—</text> <subparagraph id="HC2E4977945BE43D590453C6EE83FF900"><enum>(A)</enum><text>assessing the effects of coastal habitat restoration techniques;</text></subparagraph> <subparagraph id="H410457B8CA5B49BE00DF3978C043B5C5"><enum>(B)</enum><text>developing improved ecosystem modeling capabilities for improved predictions of coastal conditions and habitat change and for developing new technologies for restoration activities; and</text></subparagraph> <subparagraph id="H53037A4C2002489E8BDA7F2CB8ACB5FA"><enum>(C)</enum><text>identifying economic options to address socioeconomic consequences of coastal degradation.</text></subparagraph></paragraph> <paragraph id="HA41F2A1117C7429CA7F6F0A6EAEF536"><enum>(2)</enum><header>Condition</header><text>The Secretary of the Interior, in consultation with the Secretary of Commerce, shall ensure that the program—</text> <subparagraph id="H9661E9D3146842CC9BD37D746CCA9049"><enum>(A)</enum><text>establishes procedures designed to avoid duplicative activities among Federal agencies and entities receiving Federal funds;</text></subparagraph> <subparagraph id="H075AD86DAF3B445283A673B4BE801501"><enum>(B)</enum><text>coordinates with persons involved in similar activities; and</text></subparagraph> <subparagraph id="HD2318A89959D4968866178B85D78E477"><enum>(C)</enum><text>establishes a mechanism to collect, organize, and make available information and findings on coastal restoration.</text></subparagraph></paragraph> <paragraph id="HECC8102F377344BB9F567524F9B61E98"><enum>(3)</enum><header>Report</header><text>Not later than September 30, 2008, the Secretary of the Interior, in consultation with the Secretary of Commerce, shall transmit a report to the Congress on the effectiveness of any Federal and State restoration efforts conducted pursuant to this subsection and make recommendations to improve coordinated coastal restoration efforts.</text></paragraph> <paragraph id="HA44BAE587EE2427AA85F28BDF4FE8CAD"><enum>(4)</enum><header>Funding</header><text>For each of fiscal years 2004 through 2013, there is authorized to be appropriated to the Secretary $10,000,000 to carry out activities under this subsection.</text></paragraph></subsection></section></subtitle> <subtitle id="HEB15BF033117405B89D75343AD1D69ED"><enum>C</enum><header>Reforms to the Board of Directors of the Tennessee Valley Authority</header> <section id="H01A15DC5FAA14EED83DFEF80735559C"><enum>1431.</enum><header>Change in composition, operation, and duties of the Board of Directors of the Tennessee Valley Authority</header><text display-inline="no-display-inline">The Tennessee Valley Authority Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/16/831">16 U.S.C. 831 et seq.</external-xref>) is amended by striking section 2 and inserting the following:</text> <quoted-block id="H26ED25D3FF2749319C844B92FA002829"> <section id="H918DE30828F04DAEBDA3BBFDB69F26F"><enum>2.</enum><header>Membership, operation, and duties of the Board of Directors</header> <subsection id="H1DD0727468C54E2897FA3D4922DFF200"><enum>(a)</enum><header>Membership</header> <paragraph id="H81F55AE0347A45E6813FD76F67AF97A0"><enum>(1)</enum><header>Appointment</header><text>The Board of Directors of the Corporation (referred to in this Act as the <quote>Board</quote>) shall be composed of 9 members appointed by the President by and with the advice and consent of the Senate, at least 5 of whom shall be a legal resident of a State any part of which is in the service area of the Corporation.</text></paragraph> <paragraph id="HB305603B294F4A3CBA9FDD63D4CBE8E7"><enum>(2)</enum><header>Chairman</header><text>The members of the Board shall select 1 of the members to act as chairman of the Board.</text></paragraph></subsection> <subsection id="H41B89B1A48C34CAC891B4F3512D832E"><enum>(b)</enum><header>Qualifications</header><text>To be eligible to be appointed as a member of the Board, an individual—</text> <paragraph id="H840DB9D543C04B6700262B2FB706F976"><enum>(1)</enum><text>shall be a citizen of the United States;</text></paragraph> <paragraph id="H8F6BDFA2986846299D68D56B65384442"><enum>(2)</enum><text>shall have management expertise relative to a large for-profit or nonprofit corporate, government, or academic structure;</text></paragraph> <paragraph id="H65D9DD4F261B4E8A80B78A3524B9525"><enum>(3)</enum><text>shall not be an employee of the Corporation; and</text></paragraph> <paragraph id="H5E2F9AF073844119B752434B8951F4C8"><enum>(4)</enum><text>shall make full disclosure to Congress of any investment or other financial interest that the individual holds in the energy industry.</text></paragraph></subsection> <subsection id="HE6B1819CB82C4D4C838F4C56D0F18746"><enum>(c)</enum><header>Recommendations</header><text>In appointing members of the Board, the President shall—</text> <paragraph id="H10B193C438D04760BEF26821815D2878"><enum>(1)</enum><text>consider recommendations from such public officials as—</text> <subparagraph id="H3FFB0AF722A94667A4C42CF94E3CA835"><enum>(A)</enum><text>the Governors of States in the service area;</text></subparagraph> <subparagraph id="H9571973A831D44AFAC5463947DA8BCB8"><enum>(B)</enum><text>individual citizens;</text></subparagraph> <subparagraph id="HF35432F530694F3588A28082CDBDCF1F"><enum>(C)</enum><text>business, industrial, labor, electric power distribution, environmental, civic, and service organizations; and</text></subparagraph> <subparagraph id="HB35562A96229476D9F4E66ADF4E569AC"><enum>(D)</enum><text>the congressional delegations of the States in the service area; and</text></subparagraph></paragraph> <paragraph id="H1D21DF594E1F4EE28BDF09428366EF"><enum>(2)</enum><text>seek qualified members from among persons who reflect the diversity, including the geographical diversity, and needs of the service area of the Corporation.</text></paragraph></subsection> <subsection id="H237BFA867F81407293F520372EAF6CD4"><enum>(d)</enum><header>Terms</header> <paragraph id="H5268CC7FB9B6402B8F78C44BD1800E2"><enum>(1)</enum><header>In general</header><text>A member of the Board shall serve a term of 5 years. A member of the Board whose term has expired may continue to serve after the member’s term has expired until the date on which a successor takes office, except that the member shall not serve beyond the end of the session of Congress in which the term of the member expires.</text></paragraph> <paragraph id="HBB5D34DAEB554159A2E631F78C9D45"><enum>(2)</enum><header>Vacancies</header><text>A member appointed to fill a vacancy on the Board occurring before the expiration of the term for which the predecessor of the member was appointed shall be appointed for the remainder of that term.</text></paragraph></subsection> <subsection id="H9972DBCD1A904A6AA8F4ACF35B62F79"><enum>(e)</enum><header>Quorum</header> <paragraph id="H1B67F75B0E0A479EA8FAD615FB03F958"><enum>(1)</enum><header>In general</header><text>Five of the members of the Board shall constitute a quorum for the transaction of business.</text></paragraph> <paragraph id="H7BB5494E3E6A413CB475153975829FE6"><enum>(2)</enum><header>Vacancies</header><text>A vacancy on the Board shall not impair the power of the Board to act.</text></paragraph></subsection> <subsection id="H273B51E7ABBB4B21B1E989D692314C25"><enum>(f)</enum><header>Compensation</header> <paragraph id="H443E23C595614831AEE43FE8ECDB1D5E"><enum>(1)</enum><header>In general</header><text>A member of the Board shall be entitled to receive—</text> <subparagraph id="H390DE269BA454D569D4DDBC982CF76"><enum>(A)</enum><text>a stipend of—</text> <clause id="H590D2893D531485EA21687B6EA9973E"><enum>(i)</enum><text>$45,000 per year; or</text></clause> <clause id="H585BF72ACF1F4A878FD5C1343F72268D"><enum>(ii)</enum> <subclause display-inline="yes-display-inline" id="H7D650A08AA1B4FE5BE38097605C8934D"><enum>(I)</enum><text>in the case of the chairman of any committee of the Board created by the Board, $46,000 per year; or</text></subclause> <subclause indent="up1" id="HDC82B8CA6B7E425998AA7DC93C3BD00"><enum>(II)</enum><text>in the case of the chairman of the Board, $50,000 per year; and</text></subclause></clause></subparagraph> <subparagraph id="H87B80A2ECA4F442983F300153F19FA20"><enum>(B)</enum><text>travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in Government service under <external-xref legal-doc="usc" parsable-cite="usc/5/5703">section 5703</external-xref> of title 5, United States Code.</text></subparagraph></paragraph> <paragraph id="H61C9E349FA444A08A948D20900EDCF19"><enum>(2)</enum><header>Adjustments in stipends</header><text>The amount of the stipend under paragraph (1)(A)(i) shall be adjusted by the same percentage, at the same time and manner, and subject to the same limitations as are applicable to adjustments under <external-xref legal-doc="usc" parsable-cite="usc/5/5318">section 5318</external-xref> of title 5, United States Code.</text></paragraph></subsection> <subsection id="HEFDF17743078479590F1A82F34FCF412"><enum>(g)</enum><header>Duties</header> <paragraph id="H96FD7A54B8224AF3A06439096F9BC452"><enum>(1)</enum><header>In general</header><text>The Board shall—</text> <subparagraph id="H9246BEAE988C47D293D4EE313489CF5E"><enum>(A)</enum><text>establish the broad goals, objectives, and policies of the Corporation that are appropriate to carry out this Act;</text></subparagraph> <subparagraph id="H03520B77E31F4CB9B9A0F36EC9F2E47F"><enum>(B)</enum><text>develop long-range plans to guide the Corporation in achieving the goals, objectives, and policies of the Corporation and provide assistance to the chief executive officer to achieve those goals, objectives, and policies;</text></subparagraph> <subparagraph id="H6B78A9934B1740228908AFE065C8A7E"><enum>(C)</enum><text>ensure that those goals, objectives, and policies are achieved;</text></subparagraph> <subparagraph id="H86925EE6E9A348EAA8682FD05F4EE955"><enum>(D)</enum><text>approve an annual budget for the Corporation;</text></subparagraph> <subparagraph id="H40AA2E65C321486EB55FB300DC5F4F90"><enum>(E)</enum><text>adopt and submit to Congress a conflict-of-interest policy applicable to members of the Board and employees of the Corporation;</text></subparagraph> <subparagraph id="H27795FAFE56549D18C7015B80689D56B"><enum>(F)</enum><text>establish a compensation plan for employees of the Corporation in accordance with subsection (i);</text></subparagraph> <subparagraph id="H78B8D566C07C4B5A8FBFE2BB669E3BC8"><enum>(G)</enum><text>approve all compensation (including salary or any other pay, bonuses, benefits, incentives, and any other form of remuneration) of all managers and technical personnel that report directly to the chief executive officer (including any adjustment to compensation);</text></subparagraph> <subparagraph id="H5574970CDF2743DA88D4FB9706EA009B"><enum>(H)</enum><text>ensure that all activities of the Corporation are carried out in compliance with applicable law;</text></subparagraph> <subparagraph id="HC852430B46DB490489C78DBF1FEB063D"><enum>(I)</enum><text>create an audit committee, composed solely of Board members independent of the management of the Corporation, which shall—</text> <clause id="H2F7F18B17B9F42478EB6D5CE59F42B9"><enum>(i)</enum><text>in consultation with the inspector general of the Corporation, recommend to the Board an external auditor;</text></clause> <clause id="H82EE568050CC4009880896F2B4511F4F"><enum>(ii)</enum><text>receive and review reports from the external auditor of the Corporation and inspector general of the Corporation; and</text></clause> <clause id="H924228972A784D7898B5D005F4710015"><enum>(iii)</enum><text>make such recommendations to the Board as the audit committee considers necessary;</text></clause></subparagraph> <subparagraph id="H36DFFC2076EB4141BC2325B7BD0BF2E"><enum>(J)</enum><text>create such other committees of Board members as the Board considers to be appropriate;</text></subparagraph> <subparagraph id="H5F2EC6C96C53472EBEA7EE00746DE3D9"><enum>(K)</enum><text>conduct such public hearings as it deems appropriate on issues that could have a substantial effect on—</text> <clause id="HB0FAF6B7A46A42219918DAFAF2D06DD6"><enum>(i)</enum><text>the electric ratepayers in the service area; or</text></clause> <clause id="H2C13F1A8E6A4459FBCC9521CA2909FF5"><enum>(ii)</enum><text>the economic, environmental, social, or physical well-being of the people of the service area;</text></clause></subparagraph> <subparagraph id="H7C57F7F11F0B468AA20000B19B908866"><enum>(L)</enum><text>establish the electricity rates charged by the Corporation; and</text></subparagraph> <subparagraph id="H474627EB5A9247FB8CA8A2889204209C"><enum>(M)</enum><text>engage the services of an external auditor for the Corporation.</text></subparagraph></paragraph> <paragraph id="H179CB93E43A2451CA58576344827484E"><enum>(2)</enum><header>Meetings</header><text>The Board shall meet at least 4 times each year.</text></paragraph></subsection> <subsection id="H2E34764E87C44B94A3CF5472BBB74FD4"><enum>(h)</enum><header>Chief executive officer</header> <paragraph id="H2779B75A281E44CAA9356F538BFACF86"><enum>(1)</enum><header>Appointment</header><text>The Board shall appoint a person to serve as chief executive officer of the Corporation.</text></paragraph> <paragraph id="H2486EC8D9E854EB4A22419EBD4023603"><enum>(2)</enum><header>Qualifications</header> <subparagraph id="H9134BB6DDAE04F1B8F1BC83CD7457227"><enum>(A)</enum><header>In general</header><text>To serve as chief executive officer of the Corporation, a person—</text> <clause id="H785855C59A21420BA9717DE9C0C7CCB"><enum>(i)</enum><text>shall have senior executive-level management experience in large, complex organizations;</text></clause> <clause id="H43250A3A0CAE4E5F9215B1677BA61600"><enum>(ii)</enum><text>shall not be a current member of the Board or have served as a member of the Board within 2 years before being appointed chief executive officer; and</text></clause> <clause id="H6AE3CE6B22934D618B32CB1EF432D972"><enum>(iii)</enum><text>shall comply with the conflict-of-interest policy adopted by the Board.</text></clause></subparagraph> <subparagraph id="H8D563BE27F874C779DA35A774186EA6"><enum>(B)</enum><header>Expertise</header><text>In appointing a chief executive officer, the Board shall give particular consideration to appointing an individual with expertise in the electric industry and with strong financial skills.</text></subparagraph></paragraph> <paragraph id="HD3B36E47B7A948B5A4410030C2B8FE6D"><enum>(3)</enum><header>Tenure</header><text>The chief executive officer shall serve at the pleasure of the Board.</text></paragraph></subsection> <subsection id="HCB18E597660D45A597C2EB7D258B6F00"><enum>(i)</enum><header>Compensation plan</header> <paragraph id="H9AC1FE2E91DA41BBB675A37618688172"><enum>(1)</enum><header>In general</header><text>The Board shall approve a compensation plan that specifies all compensation (including salary or any other pay, bonuses, benefits, incentives, and any other form of remuneration) for the chief executive officer and employees of the Corporation.</text></paragraph> <paragraph id="H77907B02B4DC47C09140E10054FA2C02"><enum>(2)</enum><header>Annual survey</header><text>The compensation plan shall be based on an annual survey of the prevailing compensation for similar positions in private industry, including engineering and electric utility companies, publicly owned electric utilities, and Federal, State, and local governments.</text></paragraph> <paragraph id="H3725E43D3F0C4E9EA9187CCAAE348FC3"><enum>(3)</enum><header>Considerations</header><text>The compensation plan shall provide that education, experience, level of responsibility, geographic differences, and retention and recruitment needs will be taken into account in determining compensation of employees.</text></paragraph> <paragraph id="H104C2266DB23407CB7ECC4D0141DEAE"><enum>(4)</enum><header>Positions at or below level IV</header><text>The chief executive officer shall determine the salary and benefits of employees whose annual salary is not greater than the annual rate payable for positions at level IV of the Executive Schedule under <external-xref legal-doc="usc" parsable-cite="usc/5/5315">section 5315</external-xref> of title 5, United States Code.</text></paragraph> <paragraph id="H8722879D7324411281D9D7B1377F49ED"><enum>(5)</enum><header>Positions above level IV</header><text>On the recommendation of the chief executive officer, the Board shall approve the salaries of employees whose annual salaries would be in excess of the annual rate payable for positions at level IV of the Executive Schedule under <external-xref legal-doc="usc" parsable-cite="usc/5/5315">section 5315</external-xref> of title 5, United States Code.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HC5BB1DF0DDB34448980014C77F15604D"><enum>1432.</enum><header>Change in manner of appointment of staff</header><text display-inline="no-display-inline">Section 3 of the Tennessee Valley Authority Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/16/831b">16 U.S.C. 831b</external-xref>) is amended—</text> <paragraph id="HD59BE10E0E1F4F83A21347BE484B025D"><enum>(1)</enum><text>by striking the first undesignated paragraph and inserting the following:</text> <quoted-block id="H329E34954851469C80CED6B7EDF6E09"> <subsection id="HD5A64D563E164D168764A008FF3F6D7C"><enum>(a)</enum><header>Appointment by the chief executive officer</header><text>The chief executive officer shall appoint, with the advice and consent of the Board, and without regard to the provisions of the civil service laws applicable to officers and employees of the United States, such managers, assistant managers, officers, employees, attorneys, and agents as are necessary for the transaction of the business of the Corporation.</text></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H14FCF2A3D14E487DAE4BAC8763C2FDD8"><enum>(2)</enum><text>by striking <quote>All contracts</quote> and inserting the following:</text> <quoted-block id="HF87FD2C2AF8841619D71001ECFC9FFF4"> <subsection id="HA3E13CA3FF754A9692A6ECC1A4FA3049"><enum>(b)</enum><header>Wage rates</header><text>All contracts</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="HABA0FAA81FD7487F8F1230DE9469EE7"><enum>1433.</enum><header>Conforming amendments</header> <subsection id="H5371102A7B1448458E5B66FDF836EA4D"><enum>(a)</enum><text>The Tennessee Valley Authority Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/16/831">16 U.S.C. 831 et seq.</external-xref>) is amended—</text> <paragraph id="H5200E85A16CC49629E198CA9380025D6"><enum>(1)</enum><text>by striking <quote>board of directors</quote> each place it appears and inserting <quote>Board of Directors</quote>; and</text></paragraph> <paragraph id="H02BC50FBE01741518CA2005965BD9335"><enum>(2)</enum><text>by striking <quote>board</quote> each place it appears and inserting <quote>Board</quote>.</text></paragraph></subsection> <subsection id="H29D48F819351455EB2E61ED711DA5EF"><enum>(b)</enum><text>Section 9 of the Tennessee Valley Authority Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/16/831h">16 U.S.C. 831h</external-xref>) is amended—</text> <paragraph id="H4C24C29BCD0247BDAEE0B4986C1DE932"><enum>(1)</enum><text>by striking <quote>The Comptroller General of the United States shall audit</quote> and inserting the following:</text> <quoted-block id="HA81D0798190A48EF8418240099600000"> <subsection id="H17385D5F698C4BB9A9D6BE2D869E72A"><enum>(c)</enum><header>Audits</header><text>The Comptroller General of the United States shall audit</text></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H3EE99EAAAEB1485EB724C7FA15E78336"><enum>(2)</enum><text>by striking <quote>The Corporation shall determine</quote> and inserting the following:</text> <quoted-block id="H5B1C102A704342BDAD00F53D4E97676C"> <subsection id="HF779CED7F87544BA998C3141E82ECFA3"><enum>(d)</enum><header>Administrative accounts and business documents</header><text>The Corporation shall determine</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H55A279607DDF4C7C81144D00AC3C30B7"><enum>(c)</enum><text>Title 5, United States Code, is amended—</text> <paragraph id="H5B7D626132C44AEEB2C59614A70182E"><enum>(1)</enum><text>in section 5314, by striking <quote>Chairman, Board of Directors of the Tennessee Valley Authority.</quote>; and</text></paragraph> <paragraph id="H63766B1C070F4B9D813C593224215E1D"><enum>(2)</enum><text>in section 5315, by striking <quote>Members, Board of Directors of the Tennessee Valley Authority.</quote>.</text></paragraph></subsection></section> <section id="H09565B754DF048F29671CBEF2488E64F"><enum>1434.</enum><header>Appointments; effective date; transition</header> <subsection id="HDC32C017E8514ED9A6AC07156075CED"><enum>(a)</enum><header>Appointments</header> <paragraph id="HDDFFDE5D20B44EBCA31BFEFA0000E3E9"><enum>(1)</enum><header>In general</header><text>As soon as practicable after the date of enactment of this Act, the President shall submit to the Senate nominations of 6 persons to serve as members of the Board of Directors of the Tennessee Valley Authority in addition to the members serving on the date of enactment of this Act.</text></paragraph> <paragraph id="H8F20F52CE9404549ABA8F16DE91618FB"><enum>(2)</enum><header>Initial terms</header><text>Notwithstanding section 2(d) of the Tennessee Valley Authority Act of 1933 (as amended by this subtitle), in making the appointments under paragraph (1), the President shall appoint—</text> <subparagraph id="H7BB64A454F3644BCB852499C622D1232"><enum>(A)</enum><text>2 members for a term to expire on May 18, 2006;</text></subparagraph> <subparagraph id="H5349093B02C14C7495DBEC1F3416AEAF"><enum>(B)</enum><text>2 members for a term to expire on May 18, 2008; and</text></subparagraph> <subparagraph id="H7773322292EF4DD2A64C2FD89BEECC4E"><enum>(C)</enum><text>2 members for a term to expire on May 18, 2010.</text></subparagraph></paragraph></subsection> <subsection id="HC8DC67ABB4124FDBBBF7CCFA9ABAD52"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section and sections 1431, 1432, and 1433 take effect on the later of the date on which at least 3 persons nominated under subsection (a) take office or May 18, 2005.</text></subsection> <subsection id="H924EA0AA50A146FA9DF9812410F615A0"><enum>(c)</enum><header>Selection of chairman</header><text>The Board of Directors of the Tennessee Valley Authority shall select 1 of the members to act as chairman of the Board not later than 30 days after the effective date of this section.</text></subsection> <subsection id="H57F1D43F77FE4F94BB9F20EC7D23C3DE"><enum>(d)</enum><header>Conflict-of-interest policy</header><text>The Board of Directors of the Tennessee Valley Authority shall adopt and submit to Congress a conflict-of-interest policy, as required by section 2(g)(1)(E) of the Tennessee Valley Authority Act of 1933 (as amended by this subtitle), as soon as practicable after the effective date of this section.</text></subsection> <subsection id="H32157367018D4F86901F01BE5B770443"><enum>(e)</enum><header>Transition</header><text>A person who is serving as a member of the board of directors of the Tennessee Valley Authority on the date of enactment of this Act—</text> <paragraph id="H35C25AD630B040FFAA2D777F7966FAD6"><enum>(1)</enum><text>shall continue to serve until the end of the current term of the member; but</text></paragraph> <paragraph id="H5323CE3A7BF947F88BFEEFE200B05096"><enum>(2)</enum><text>after the effective date specified in subsection (b), shall serve under the terms of the Tennessee Valley Authority Act of 1933 (as amended by this subtitle); and</text></paragraph> <paragraph id="HFC85A4B512754C85B22DFC75A42EB417"><enum>(3)</enum><text>may not be reappointed.</text></paragraph></subsection></section></subtitle> <subtitle id="HAEB6CE1C2C0249BFBA2BAAEE047F1D23"><enum>D</enum><header>Other provisions</header> <section id="HD29823264D9C4F66A6B300CCA3140050"><enum>1441.</enum><header>Continuation of transmission security order</header><text display-inline="no-display-inline">Department of Energy Order No. 202-03-2, issued by the Secretary of Energy on August 28, 2003, shall remain in effect unless rescinded by Federal statute.</text></section> <section id="H23ABAF61083441859EE906DDA604B32B"><enum>1442.</enum><header>Review of agency determinations</header><text display-inline="no-display-inline">Section 7 of the Natural Gas Act (<external-xref legal-doc="usc" parsable-cite="usc/15/717f">15 U.S.C. 717f</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="HB876AD5A5364430A9D5142E571C4E213"> <subsection id="H23174031CD1D4CE6B0C28050271704BE"><enum>(i)</enum> <paragraph display-inline="yes-display-inline" id="HF75F7EF2A1B24D1EB027EB8C96C1DE27"><enum>(1)</enum><text>The United States Court of Appeals for the District of Columbia Circuit shall have original and exclusive jurisdiction over any civil action—</text> <subparagraph indent="up1" id="H59F2D74386164A3B8EB3C0085FA00DB"><enum>(A)</enum><text>for review of any order or action of any Federal or State administrative agency or officer to issue, condition, or deny any permit, license, concurrence, or approval issued under authority of any Federal law, other than the <act-name parsable-cite="CZMA72">Coastal Zone Management Act of 1972</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/16/1451">16 U.S.C. 1451 et seq.</external-xref>), required for the construction of a natural gas pipeline for which a certificate of public convenience and necessity is issued by the Commission under this section;</text></subparagraph> <subparagraph indent="up1" id="HFE335F128F06477DAF6EECCACC42D9"><enum>(B)</enum><text>alleging unreasonable delay by any Federal or State administrative agency or officer in entering an order or taking other action described in subparagraph (A); or</text></subparagraph> <subparagraph indent="up1" id="H879BC25F16DD4DA8A33C7CE9B1F2F03"><enum>(C)</enum><text>challenging any decision made or action taken under this subsection.</text></subparagraph></paragraph> <paragraph indent="up1" id="HFDC4332896664EFA8921D18297DFCC57"><enum>(2)</enum> <subparagraph display-inline="yes-display-inline" id="H575B83717B664503A5B9F884D6BD3200"><enum>(A)</enum><text>If the Court finds that the order, action, or failure to act is not consistent with the public convenience and necessity (as determined by the Commission under this section), or would prevent the construction and operation of natural gas facilities authorized by the certificate of public convenience and necessity, the permit, license, concurrence, or approval that is the subject of the order, action, or failure to act shall be deemed to have been issued subject to any conditions set forth in the reviewed order or action that the Court finds to be consistent with the public convenience and necessity.</text></subparagraph> <subparagraph indent="up1" id="HE95B4E6E317A4E74AFD974E5C59FC090"><enum>(B)</enum><text>For purposes of paragraph (1)(B), the failure of an agency or officer to issue any such permit, license, concurrence, or approval within the later of 1 year after the date of filing of an application for the permit, license, concurrence, or approval or 60 days after the date of issuance of the certificate of public convenience and necessity under this section, shall be considered to be unreasonable delay unless the Court, for good cause shown, determines otherwise.</text></subparagraph> <subparagraph indent="up1" id="H3C2AA103956948C69D4E00A8868D6ED7"><enum>(C)</enum><text>The Court shall set any action brought under paragraph (1) for expedited consideration.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HFD55BB3CDB2140B08EFA60424D4FE860"><enum>1443.</enum><header>Attainment dates for downwind ozone nonattainment areas</header><text display-inline="no-display-inline">Section 181 of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (42 U.S.C.7511) is amended by adding the following new subsection at the end thereof:</text> <quoted-block act-name="Clean Air Act" id="H1F208D13D11D46F19700635B043631AE"> <subsection id="HC13C880A61B34F61AE30C3D7816D13E1"><enum>(d)</enum><header>Extended attainment date for certain downwind areas</header> <paragraph id="H18411C27F40640ED8C7FE86FCFBD84A7"><enum>(1)</enum><header>Definitions</header> <subparagraph display-inline="yes-display-inline" id="H59366EB84161457CAA781E4EAC05957"><enum>(A)</enum><text>The term <term>upwind area</term> means an area that—</text> <clause indent="up1" id="H4285A8C1B8654A71A2B06C176EEBD2"><enum>(i)</enum><text>significantly contributes to nonattainment in another area, hereinafter referred to as a <quote>downwind area</quote>; and</text></clause> <clause indent="up1" id="HAEB356B7355741A3A5CC1F3F49059394"><enum>(ii)</enum><text>is either—</text> <subclause id="HA18EC4ED9BA54362B3D573AB2BD19F2C"><enum>(I)</enum><text>a nonattainment area with a later attainment date than the downwind area, or</text></subclause> <subclause id="H07BD5513CE6F467CACED37A0B45F8881"><enum>(II)</enum><text>an area in another State that the Administrator has found to be significantly contributing to nonattainment in the downwind area in violation of section 110(a)(2)(D) and for which the Administrator has established requirements through notice and comment rulemaking to eliminate the emissions causing such significant contribution.</text></subclause></clause></subparagraph> <subparagraph indent="up1" id="HB1BA26B18312410D978BA018ABACE1BD"><enum>(B)</enum><text>The term <term>current classification</term> means the classification of a downwind area under this section at the time of the determination under paragraph (2).</text></subparagraph></paragraph> <paragraph id="H0DE1FC35B6DA4D8EBC0039189D9504CD"><enum>(2)</enum><header>Extension</header><text>If the Administrator—</text> <subparagraph id="HE07E8DDF9A924F978CD7E57CCEDF2053"><enum>(A)</enum><text>determines that any area is a downwind area with respect to a particular national ambient air quality standard for ozone; and</text></subparagraph> <subparagraph id="HC34E9F2DB9BD441C8733E700E38FFCFF"><enum>(B)</enum><text>approves a plan revision for such area as provided in paragraph (3) prior to a reclassification under subsection (b)(2)(A),</text></subparagraph><continuation-text continuation-text-level="paragraph">the Administrator, in lieu of such reclassification, shall extend the attainment date for such downwind area for such standard in accordance with paragraph (5).</continuation-text></paragraph> <paragraph id="HB73850A9ECBC4A3E98A856440278EE23"><enum>(3)</enum><header>Required approval</header><text>In order to extend the attainment date for a downwind area under this subsection, the Administrator must approve a revision of the applicable implementation plan for the downwind area for such standard that—</text> <subparagraph id="HB0C01A45228946F4A722398C293F2BFB"><enum>(A)</enum><text>complies with all requirements of this Act applicable under the current classification of the downwind area, including any requirements applicable to the area under section 172(c) for such standard; and</text></subparagraph> <subparagraph id="H1CBDC0F2A0104413A78B234561A47487"><enum>(B)</enum><text>includes any additional measures needed to demonstrate attainment by the extended attainment date provided under this subsection.</text></subparagraph></paragraph> <paragraph id="HC343CB3F2D9140D9B306A0BE2240D8C4"><enum>(4)</enum><header>Prior reclassification determination</header><text>If, no more than 18 months prior to the date of enactment of this subsection, the Administrator made a reclassification determination under subsection (b)(2)(A) for any downwind area, and the Administrator approves the plan revision referred to in paragraph (3) for such area within 12 months after the date of enactment of this subsection, the reclassification shall be withdrawn and the attainment date extended in accordance with paragraph (5) upon such approval. The Administrator shall also withdraw a reclassification determination under subsection (b)(2)(A) made after the date of enactment of this subsection and extend the attainment date in accordance with paragraph (5) if the Administrator approves the plan revision referred to in paragraph (3) within 12 months of the date the reclassification determination under subsection (b)(2)(A) is issued. In such instances the <quote>current classification</quote> used for evaluating the revision of the applicable implementation plan under paragraph (3) shall be the classification of the downwind area under this section immediately prior to such reclassification.</text></paragraph> <paragraph id="H9658FDB99D5B48D19690992D3FA99469"><enum>(5)</enum><header>Extended date</header><text>The attainment date extended under this subsection shall provide for attainment of such national ambient air quality standard for ozone in the downwind area as expeditiously as practicable but no later than the date on which the last reductions in pollution transport necessary for attainment in the downwind area are required to be achieved by the upwind area or areas.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H8F1F35A7787740308C9BA4B03DD90895"><enum>1444.</enum><header>Energy production incentives</header> <subsection id="H49386E3583514CB8ACEC13FA22005BB2"><enum>(a)</enum><header>In general</header><text>A State may provide to any entity—</text> <paragraph id="HED08087A73D04E0681039606FF8C58A3"><enum>(1)</enum><text>a credit against any tax or fee owed to the State under a State law, or</text></paragraph> <paragraph id="H818143EC091D447DA6CB43973E9279BD"><enum>(2)</enum><text>any other tax incentive,</text></paragraph><continuation-text continuation-text-level="subsection">determined by the State to be appropriate, in the amount calculated under and in accordance with a formula determined by the State, for production described in subsection (b) in the State by the entity that receives such credit or such incentive.</continuation-text></subsection> <subsection id="H163A4F1E7E82469496B649252C6CB6CC"><enum>(b)</enum><header>Eligible entities</header><text>Subsection (a) shall apply with respect to the production in the State of—</text> <paragraph id="H9742B8B96A6F4934A034284439133900"><enum>(1)</enum><text>electricity from coal mined in the State and used in a facility, if such production meets all applicable Federal and State laws and if such facility uses scrubbers or other forms of clean coal technology,</text></paragraph> <paragraph id="H9E57A2C72B50423BB6CF3619DCB4DAE"><enum>(2)</enum><text>electricity from a renewable source such as wind, solar, or biomass, or</text></paragraph> <paragraph id="H18FB7ED0B4CA47750021DB5DED00D531"><enum>(3)</enum><text>ethanol.</text></paragraph></subsection> <subsection id="HBD36868FCF1245398742347732857858"><enum>(c)</enum><header>Effect on interstate commerce</header><text>Any action taken by a State in accordance with this section with respect to a tax or fee payable, or incentive applicable, for any period beginning after the date of the enactment of this Act shall—</text> <paragraph id="H2E0F6DDD2A86446D97B95C10837B97DA"><enum>(1)</enum><text>be considered to be a reasonable regulation of commerce; and</text></paragraph> <paragraph id="H0185F8F102964FC2B842C0925E3307EA"><enum>(2)</enum><text>not be considered to impose an undue burden on interstate commerce or to otherwise impair, restrain, or discriminate, against interstate commerce.</text></paragraph></subsection></section> <section id="H2B5E10113D864D3983F400D6EA8900B6"><enum>1445.</enum><header>Use of granular mine tailings</header> <subsection id="H24B02E71FBAA4C138E72039EB506FB00"><enum>(a)</enum><header>Amendment</header><text>Subtitle F of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6961">42 U.S.C. 6961 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block act-name="Solid Waste Disposal Act" id="H84F2BDDE37C541A3B4BAE58BD0430029"> <section id="HE9EC67DF8DB44702B944449356AAE2EA"><enum>6006.</enum><header>Use of granular mine tailings</header> <subsection id="H95D3CAA412E5400FA918AF558BDBA48D"><enum>(a)</enum><header>Mine tailings</header> <paragraph id="H22053B9CCF1943389E0209E48566171C"><enum>(1)</enum><header>In general</header><text>Not later than 180 days after the date of enactment of this section, the Administrator, in consultation with the Secretary of Transportation and heads of other Federal agencies, shall establish criteria (including an evaluation of whether to establish a numerical standard for concentration of lead and other hazardous substances) for the safe and environmentally protective use of granular mine tailings from the Tar Creek, Oklahoma Mining District, known as <quote>chat</quote>, for—</text> <subparagraph id="H0F2CABA5D7D2434D81E17417209BF976"><enum>(A)</enum><text>cement or concrete projects; and</text></subparagraph> <subparagraph id="H0F6046BA2EAC48A787412DCCA1CB4819"><enum>(B)</enum><text>transportation construction projects (including transportation construction projects involving the use of asphalt) that are carried out, in whole or in part, using Federal funds.</text></subparagraph></paragraph> <paragraph id="H8761F14AA1C6472F0042E2E86F4C7B33"><enum>(2)</enum><header>Requirements</header><text>In establishing criteria under paragraph (1), the Administrator shall consider—</text> <subparagraph id="H46B0FA897CFC40509C00DDFDB2E41EAB"><enum>(A)</enum><text>the current and previous uses of granular mine tailings as an aggregate for asphalt; and</text></subparagraph> <subparagraph id="H928A67C78DCB4626B83D7DF1CFB3C046"><enum>(B)</enum><text>any environmental and public health risks and benefits derived from the removal, transportation, and use in transportation projects of granular mine tailings.</text></subparagraph></paragraph> <paragraph id="HB71A7DF1B95E48499947FF8746975900"><enum>(3)</enum><header>Public participation</header><text>In establishing the criteria under paragraph (1), the Administrator shall solicit and consider comments from the public.</text></paragraph> <paragraph id="H98476E4257444D5391818376075FFAB0"><enum>(4)</enum><header>Applicability of criteria</header><text>On the establishment of the criteria under paragraph (1), any use of the granular mine tailings described in paragraph (1) in a transportation project that is carried out, in whole or in part, using Federal funds, shall meet the criteria established under paragraph (1).</text></paragraph></subsection> <subsection id="H6DD8B8FB3F67469986F08639988700E5"><enum>(b)</enum><header>Effect of sections</header><text>Nothing in this section or section 6005 affects any requirement of any law (including a regulation) in effect on the date of enactment of this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H9582050091C14988B8966B9037FC0E7"><enum>(b)</enum><header>Conforming amendment</header><text>The table of contents of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (42 U.S.C. prec. 6901) is amended by adding at the end of the items relating to subtitle F the following:</text> <quoted-block style="OLC" id="HB83637E41D1D493D992EAD3E057DCA5B" display-inline="no-display-inline"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 6006. Use of granular mine tailings</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section></subtitle> <enum>XV</enum><header>Ethanol and motor fuels</header> <subtitle id="H04F57CF9DEBB4AB3AF00E31C219FD460"><enum>A</enum><header>General provisions</header> <section id="HCA6BE96B347A41029B5DDFC8648DC346"><enum>1501.</enum><header>Renewable content of motor vehicle fuel</header> <subsection id="HF456FDADA4394C48B8C67523F1C6128D"><enum>(a)</enum><header>In general</header><text>Section 211 of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545</external-xref>) is amended—</text> <paragraph id="HBC6B8E368B6D4812970544D2B23100D2"><enum>(1)</enum><text>by redesignating subsection (o) as subsection (q); and</text></paragraph> <paragraph id="HA7418C32DCFB4B40BAF12DF9FCB69FE6"><enum>(2)</enum><text>by inserting after subsection (n) the following:</text> <quoted-block id="H119834785DA040828BBC9221BFFF300"> <subsection id="H74AECDDF4E68474D97F4215744A33809"><enum>(o)</enum><header>Renewable fuel program</header> <paragraph id="H548DAB60830B49E1A450BAA7068F919"><enum>(1)</enum><header>Definitions</header><text>In this section:</text> <subparagraph id="H23F758C5C3E74373B9D406E1DC4EFB9E"><enum>(A)</enum><header>Ethanol</header> <clause display-inline="yes-display-inline" id="H0F95052DA35941F1BC39F022FF8915DF"><enum>(i)</enum><text>The term <term>cellulosic biomass ethanol</term> means ethanol derived from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis, including—</text> <subclause indent="up1" id="H5523F226B89E40538E00E2A6AB091EC6"><enum>(I)</enum><text>dedicated energy crops and trees;</text></subclause> <subclause indent="up1" id="HACE56FC53FBA480BA3ED34F622D5A507"><enum>(II)</enum><text>wood and wood residues;</text></subclause> <subclause indent="up1" id="H234AA1033CF943EF80DCDE1D67B3F6"><enum>(III)</enum><text>plants;</text></subclause> <subclause indent="up1" id="HFE521007A9034CFD822B6D8D613DD100"><enum>(IV)</enum><text>grasses;</text></subclause> <subclause indent="up1" id="HA4DE56BC01DA4A749236614983E76CB9"><enum>(V)</enum><text>agricultural residues; and</text></subclause> <subclause indent="up1" id="HF47490BAEDFA4E5484641656685EFB97"><enum>(VI)</enum><text>fibers.</text> <item indent="up2" id="H271BB0CE165A47C5B37C77C27CF6B21"><enum>(ii)</enum><text>The term <term>waste derived ethanol</term> means ethanol derived from—</text></item></subclause> <subclause indent="up1" id="H7817E6636FC248708435000079A9BBBF"><enum>(I)</enum><text>animal wastes, including poultry fats and poultry wastes, and other waste materials; or</text></subclause> <subclause indent="up1" id="H055DCE553BB94C7899E2D48F83FC7248"><enum>(II)</enum><text>municipal solid waste.</text></subclause></clause></subparagraph> <subparagraph id="HA97F4F5488B34429B4FEE5DAC504E7B4"><enum>(B)</enum><header>Renewable fuel</header> <clause id="H56DB1641897248759FCED377AC241E86"><enum>(i)</enum><header>In general</header><text>The term <term>renewable fuel</term> means motor vehicle fuel that—</text> <subclause id="H3259A4C1F4E5490E8BD962D2BEB32FE4"><enum>(I)</enum> <item display-inline="yes-display-inline" id="HBF5F11AAA5D64C6789AD34006FAC1ED6"><enum>(aa)</enum><text>is produced from grain, starch, oilseeds, or other biomass; or</text></item> <item indent="up1" id="H74475D2E924F48DAB8F4BE3028B478CB"><enum>(bb)</enum><text>is natural gas produced from a biogas source, including a landfill, sewage waste treatment plant, feedlot, or other place where decaying organic material is found; and</text></item></subclause> <subclause id="H439F7F58DEE84C71BC54E2A52901873E"><enum>(II)</enum><text>is used to replace or reduce the quantity of fossil fuel present in a fuel mixture used to operate a motor vehicle.</text></subclause></clause> <clause id="H8B9A3EC92AC5429BA9081E5679BC24ED"><enum>(ii)</enum><header>Inclusion</header><text>The term <term>renewable fuel</term> includes cellulosic biomass ethanol, waste derived ethanol, and biodiesel (as defined in section 312(f) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13220">42 U.S.C. 13220(f)</external-xref>) and any blending components derived from renewable fuel (provided that only the renewable fuel portion of any such blending component shall be considered part of the applicable volume under the renewable fuel program established by this subsection).</text></clause></subparagraph> <subparagraph id="H04ECAE6DFDB24F98AB8127B483B9007B"><enum>(C)</enum><header>Small refinery</header><text>The term <term>small refinery</term> means a refinery for which average aggregate daily crude oil throughput for the calendar year (as determined by dividing the aggregate throughput for the calendar year by the number of days in the calendar year) does not exceed 75,000 barrels.</text></subparagraph></paragraph> <paragraph id="HB68FABBBE252478D86BA57FCBB241A4"><enum>(2)</enum><header>Renewable fuel program</header> <subparagraph id="H5C3EF663E06544E500003EF8B6C824D"><enum>(A)</enum><header>In general</header><text>Not later than 1 year after the enactment of this subsection, the Administrator shall promulgate regulations ensuring that motor vehicle fuel sold or dispensed to consumers in the contiguous United States, on an annual average basis, contains the applicable volume of renewable fuel as specified in subparagraph (B). Regardless of the date of promulgation, such regulations shall contain compliance provisions for refiners, blenders, and importers, as appropriate, to ensure that the requirements of this section are met, but shall not restrict where renewable fuel can be used, or impose any per-gallon obligation for the use of renewable fuel. If the Administrator does not promulgate such regulations, the applicable percentage referred to in paragraph (4), on a volume percentage of gasoline basis, shall be 2.2 in 2005.</text></subparagraph> <subparagraph id="H6E8A9EC015C4414C86754B7FA9955BF9"><enum>(B)</enum><header>Applicable volume</header> <clause id="HAEC69E29EE0D4F73BA7427E3CDCC9582"><enum>(i)</enum><header>Calendar years 2005 through 2012</header><text>For the purpose of subparagraph (A), the applicable volume for any of calendar years 2005 through 2012 shall be determined in accordance with the following table:</text> <table table-type="subformat-2-Flush-Right-Boxhead-Fig" align-to-level="section" frame="none" line-rules="no-gen" rule-weights="0.0.0.4.0.0" subformat="S6211"> <tgroup cols="2"><colspec colname="col1" colwidth="275" colsep="0" coldef="txt" min-data-value="0"/><colspec colname="col2" colwidth="80" colsep="0" coldef="txt" min-data-value="0"/><thead> <row><entry colname="I49" rowsep="0" align="left"><bold></bold></entry><entry colname="I50" rowsep="0" align="right"><bold>Applicable volume of renewable fuel</bold></entry></row> <row><entry colname="I49" rowsep="0" align="left"><bold>Calendar year</bold></entry><entry colname="I50" rowsep="0" align="right"><bold>(in billions of gallons)</bold></entry></row></thead> <tbody> <row><entry colname="I15" rowsep="0" align="left" stub-definition="txt-ldr">2005</entry><entry colname="I07" rowsep="0" align="right">3.1</entry></row> <row><entry colname="I15" rowsep="0" align="left" stub-definition="txt-ldr">2006</entry><entry colname="I07" rowsep="0" align="right">3.3</entry></row> <row><entry colname="I15" rowsep="0" align="left" stub-definition="txt-ldr">2007</entry><entry colname="I07" rowsep="0" align="right">3.5</entry></row> <row><entry colname="I15" rowsep="0" align="left" stub-definition="txt-ldr">2008</entry><entry colname="I07" rowsep="0" align="right">3.8</entry></row> <row><entry colname="I15" rowsep="0" align="left" stub-definition="txt-ldr">2009</entry><entry colname="I07" rowsep="0" align="right">4.1</entry></row> <row><entry colname="I15" rowsep="0" align="left" stub-definition="txt-ldr">2010</entry><entry colname="I07" rowsep="0" align="right">4.4</entry></row> <row><entry colname="I15" rowsep="0" align="left" stub-definition="txt-ldr">2011</entry><entry colname="I07" rowsep="0" align="right">4.7</entry></row> <row><entry colname="I15" rowsep="0" align="left" stub-definition="txt-ldr">2012</entry><entry colname="I07" rowsep="0" align="right">5.0</entry></row></tbody></tgroup></table></clause> <clause id="HB4BAC40C87AE4E8891A97030EAF1CD90"><enum>(ii)</enum><header>Calendar year 2013 and thereafter</header><text>For the purpose of subparagraph (A), the applicable volume for calendar year 2013 and each calendar year thereafter shall be equal to the product obtained by multiplying—</text> <subclause id="H9063A44FB241462CB544265B507565F"><enum>(I)</enum><text>the number of gallons of gasoline that the Administrator estimates will be sold or introduced into commerce in the calendar year; and</text></subclause> <subclause id="HA9A8732A3BEC4E43B819F76828246102"><enum>(II)</enum><text>the ratio that—</text> <item id="H3D04AC72B18942358500B8EB31779008"><enum>(aa)</enum><text>5.0 billion gallons of renewable fuels; bears to</text></item> <item id="HAA9DD4F3D1214900A92C2C54B75CC63"><enum>(bb)</enum><text>the number of gallons of gasoline sold or introduced into commerce in calendar year 2012.</text></item></subclause></clause></subparagraph></paragraph> <paragraph id="H39BB8E75AADF4D0A8708E684FA4B9EB7"><enum>(3)</enum><header>Non-contiguous State opt-in</header><text>Upon the petition of a non-contiguous State, the Administrator may allow the renewable fuel program established by subtitle A of title XV of the Energy Policy Act of 2003 to apply in such non-contiguous State at the same time or any time after the Administrator promulgates regulations under paragraph (2). The Administrator may promulgate or revise regulations under paragraph (2), establish applicable percentages under paragraph (4), provide for the generation of credits under paragraph (6), and take such other actions as may be necessary to allow for the application of the renewable fuels program in a non-contiguous State.</text></paragraph> <paragraph id="H99E3D976C6574E0CB66881E377930754"><enum>(4)</enum><header>Applicable percentages</header> <subparagraph id="HE5D83B4DA926490997DECC8E945EE222"><enum>(A)</enum><header>Provision of estimate of volumes of gasoline sales</header><text>Not later than October 31 of each of calendar years 2004 through 2011, the Administrator of the Energy Information Administration shall provide to the Administrator of the Environmental Protection Agency an estimate of the volumes of gasoline that will be sold or introduced into commerce in the United States during the following calendar year.</text></subparagraph> <subparagraph id="H2DF7FBCB76F44F0C87A5AA6415F75011"><enum>(B)</enum><header>Determination of applicable percentages</header> <clause id="H02185401173E43B5BD5F37F484D0E9C9"><enum>(i)</enum><header>In general</header><text>Not later than November 30 of each of the calendar years 2004 through 2011, based on the estimate provided under subparagraph (A), the Administrator shall determine and publish in the Federal Register, with respect to the following calendar year, the renewable fuel obligation that ensures that the requirements of paragraph (2) are met.</text></clause> <clause id="HD6FCE725159A472484A815C839BFBA5B"><enum>(ii)</enum><header>Required elements</header><text>The renewable fuel obligation determined for a calendar year under clause (i) shall—</text> <subclause id="H8896833E9263465FA2294DE4D5B6808"><enum>(I)</enum><text>be applicable to refiners, blenders, and importers, as appropriate;</text></subclause> <subclause id="HC652849E8728492B90DF4E2D18EA5E47"><enum>(II)</enum><text>be expressed in terms of a volume percentage of gasoline sold or introduced into commerce; and</text></subclause> <subclause id="H026F79A1B64843D19911CD7E7CA509BD"><enum>(III)</enum><text>subject to subparagraph (C)(i), consist of a single applicable percentage that applies to all categories of persons specified in subclause (I).</text></subclause></clause></subparagraph> <subparagraph id="H2016FF95A1114E02B989956939C86C25"><enum>(C)</enum><header>Adjustments</header><text>In determining the applicable percentage for a calendar year, the Administrator shall make adjustments—</text> <clause id="H332E0B24976F4984AFD38E9392444224"><enum>(i)</enum><text>to prevent the imposition of redundant obligations to any person specified in subparagraph (B)(ii)(I); and</text></clause> <clause id="HAC0ADC7A9FD345E7A78D0532A53D1624"><enum>(ii)</enum><text>to account for the use of renewable fuel during the previous calendar year by small refineries that are exempt under paragraph (11).</text></clause></subparagraph></paragraph> <paragraph id="H364F052F41C44CD2B1902BC93FA2C4DC"><enum>(5)</enum><header>Equivalency</header><text>For the purpose of paragraph (2), 1 gallon of either cellulosic biomass ethanol or waste derived ethanol—</text> <subparagraph id="H94257EEFC56A45A48F54A792561D9E5E"><enum>(A)</enum><text>shall be considered to be the equivalent of 1.5 gallon of renewable fuel; or</text></subparagraph> <subparagraph id="HC543EFA929EE4D63B6C8EE20752DB7F6"><enum>(B)</enum><text>if the cellulostic biomass ethanol or waste derived ethanol is derived from agricultural residue or is an agricultural byproduct (as that term is used in section 919 of the Energy Policy Act of 2003), shall be considered to be the equivalent of 2.5 gallons of renewable fuel.</text></subparagraph></paragraph> <paragraph id="HF304D5D3571442F682DD522C607060DF"><enum>(6)</enum><header>Credit program</header> <subparagraph id="H53C388EBB6CC4E45A8D1ABFE6893BD9E"><enum>(A)</enum><header>In general</header><text>The regulations promulgated to carry out this subsection shall provide for the generation of an appropriate amount of credits by any person that refines, blends, or imports gasoline that contains a quantity of renewable fuel that is greater than the quantity required under paragraph (2). Such regulations shall provide for the generation of an appropriate amount of credits for biodiesel fuel. If a small refinery notifies the Administrator that it waives the exemption provided paragraph (11), the regulations shall provide for the generation of credits by the small refinery beginning in the year following such notification.</text></subparagraph> <subparagraph id="H8F1FA90746EC4DBEBB562CCCF3B13CB8"><enum>(B)</enum><header>Use of credits</header><text>A person that generates credits under subparagraph (A) may use the credits, or transfer all or a portion of the credits to another person, for the purpose of complying with paragraph (2).</text></subparagraph> <subparagraph id="H003300C264A041B1A4923CCA46B87451"><enum>(C)</enum><header>Life of credits</header><text>A credit generated under this paragraph shall be valid to show compliance—</text> <clause id="H0524A6B2D3AD4EEFA9A53E50452CEEEE"><enum>(i)</enum><text>in the calendar year in which the credit was generated or the next calendar year; or</text></clause> <clause id="H3D6F4BF56B4B404C8714741167698123"><enum>(ii)</enum><text>in the calendar year in which the credit was generated or next two consecutive calendar years if the Administrator promulgates regulations under paragraph (7).</text></clause></subparagraph> <subparagraph id="H5B345E73645D4BFDAD06726E4F98A09"><enum>(D)</enum><header>Inability to purchase sufficient credits</header><text>The regulations promulgated to carry out this subsection shall include provisions allowing any person that is unable to generate or purchase sufficient credits to meet the requirements under paragraph (2) to carry forward a renewable fuel deficit provided that, in the calendar year following the year in which the renewable fuel deficit is created, such person shall achieve compliance with the renewable fuel requirement under paragraph (2), and shall generate or purchase additional renewable fuel credits to offset the renewable fuel deficit of the previous year.</text></subparagraph></paragraph> <paragraph id="HE58F21264AB14BC6A287A43C00BD4873"><enum>(7)</enum><header>Seasonal variations in renewable fuel use</header> <subparagraph id="H34EF479E01D24F8BB718D6837BE98C06"><enum>(A)</enum><header>Study</header><text>For each of the calendar years 2005 through 2012, the Administrator of the Energy Information Administration shall conduct a study of renewable fuels blending to determine whether there are excessive seasonal variations in the use of renewable fuels.</text></subparagraph> <subparagraph id="H69674EAA71DE4BD387F68815D79849D7"><enum>(B)</enum><header>Regulation of excessive seasonal variations</header><text>If, for any calendar year, the Administrator of the Energy Information Administration, based on the study under subparagraph (A), makes the determinations specified in subparagraph (C), the Administrator shall promulgate regulations to ensure that 35 percent or more of the quantity of renewable fuels necessary to meet the requirement of paragraph (2) is used during each of the periods specified in subparagraph (D) of each subsequent calendar year.</text></subparagraph> <subparagraph id="H91BE1DBC7FFD41A0B69EA891DDF5FA09"><enum>(C)</enum><header>Determinations</header><text>The determinations referred to in subparagraph (B) are that—</text> <clause id="HEBB49ED5660341F9ACE550C9FD3EF78F"><enum>(i)</enum><text>less than 35 percent of the quantity of renewable fuels necessary to meet the requirement of paragraph (2) has been used during one of the periods specified in subparagraph (D) of the calendar year;</text></clause> <clause id="H79BBE7474CBB42FFA4C622D76F6CB35E"><enum>(ii)</enum><text>a pattern of excessive seasonal variation described in clause (i) will continue in subsequent calendar years; and</text></clause> <clause id="HA18AD629B08243EE8DA037672872A6DE"><enum>(iii)</enum><text>promulgating regulations or other requirements to impose a 35 percent or more seasonal use of renewable fuels will not prevent or interfere with the attainment of national ambient air quality standards or significantly increase the price of motor fuels to the consumer.</text></clause></subparagraph> <subparagraph id="H4C9884DAFA0143C3959145C2EAE32726"><enum>(D)</enum><header>Periods</header><text>The two periods referred to in this paragraph are—</text> <clause id="HFEBA9CE61D2F45A3912D13E87CC29EDB"><enum>(i)</enum><text>April through September; and</text></clause> <clause id="HDF0AE2603A0345F79040C17923F0366"><enum>(ii)</enum><text>January through March and October through December.</text></clause></subparagraph> <subparagraph id="HBB71B36C9240468DACF9541D9D48C72F"><enum>(E)</enum><header>Exclusions</header><text>Renewable fuels blended or consumed in 2005 in a State which has received a waiver under section 209(b) shall not be included in the study in subparagraph (A).</text></subparagraph></paragraph> <paragraph id="H6E5D81F3E1034891B166BFC180EBC9A"><enum>(8)</enum><header>Waivers</header> <subparagraph id="HD0C198316F7F475493F391F8583EB1CF"><enum>(A)</enum><header>In general</header><text>The Administrator, in consultation with the Secretary of Agriculture and the Secretary of Energy, may waive the requirement of paragraph (2) in whole or in part on petition by one or more States by reducing the national quantity of renewable fuel required under this subsection—</text> <clause id="HAAB4C26FF33E40E8B3A2271F5CABAF77"><enum>(i)</enum><text>based on a determination by the Administrator, after public notice and opportunity for comment, that implementation of the requirement would severely harm the economy or environment of a State, a region, or the United States; or</text></clause> <clause id="H25D8EC8EC9DA4B9AACD3D753055D4F2"><enum>(ii)</enum><text>based on a determination by the Administrator, after public notice and opportunity for comment, that there is an inadequate domestic supply or distribution capacity to meet the requirement.</text></clause></subparagraph> <subparagraph id="HC7855C9EEDEC47B38F4C05EA56AB6E03"><enum>(B)</enum><header>Petitions for waivers</header><text>The Administrator, in consultation with the Secretary of Agriculture and the Secretary of Energy, shall approve or disapprove a State petition for a waiver of the requirement of paragraph (2) within 90 days after the date on which the petition is received by the Administrator.</text></subparagraph> <subparagraph id="H384094CCE5E6431093597FE7EF51005F"><enum>(C)</enum><header>Termination of waivers</header><text>A waiver granted under subparagraph (A) shall terminate after 1 year, but may be renewed by the Administrator after consultation with the Secretary of Agriculture and the Secretary of Energy.</text></subparagraph></paragraph> <paragraph id="H8F2A0BD3B491410C9E45CCBF10BC139"><enum>(9)</enum><header>Study and waiver for initial year of program</header><text>Not later than 180 days after the enactment of this subsection, the Secretary of Energy shall complete for the Administrator a study assessing whether the renewable fuels requirement under paragraph (2) will likely result in significant adverse consumer impacts in 2005, on a national, regional, or State basis. Such study shall evaluate renewable fuel supplies and prices, blendstock supplies, and supply and distribution system capabilities. Based on such study, the Secretary shall make specific recommendations to the Administrator regarding waiver of the requirements of paragraph (2), in whole or in part, to avoid any such adverse impacts. Within 270 days after the enactment of this subsection, the Administrator shall, consistent with the recommendations of the Secretary, waive, in whole or in part, the renewable fuels requirement under paragraph (2) by reducing the national quantity of renewable fuel required under this subsection in 2005. This paragraph shall not be interpreted as limiting the Administrator’s authority to waive the requirements of paragraph (2) in whole, or in part, under paragraph (8) or paragraph (10), pertaining to waivers.</text></paragraph> <paragraph id="HF62FC8FD2687489EAAB1240095F1A0FA"><enum>(10)</enum><header>Assessment and waiver</header><text>The Administrator, in consultation with the Secretary of Energy and the Secretary of Agriculture, shall evaluate the requirement of paragraph (2) and determine, prior to January 1, 2007, and prior to January 1 of any subsequent year in which the applicable volume of renewable fuel is increased under paragraph (2)(B), whether the requirement of paragraph (2), including the applicable volume of renewable fuel contained in paragraph (2)(B) should remain in effect, in whole or in part, during 2007 or any year or years subsequent to 2007. In evaluating the requirement of paragraph (2) and in making any determination under this section, the Administrator shall consider the best available information and data collected by accepted methods or best available means regarding—</text> <subparagraph id="H9C0EE52B4B2F4B3D8DCD07F0DAFE65EE"><enum>(A)</enum><text>the capacity of renewable fuel producers to supply an adequate amount of renewable fuel at competitive prices to fulfill the requirement of paragraph (2);</text></subparagraph> <subparagraph id="H5765B64C50304A2E8D997D4493B97BD8"><enum>(B)</enum><text>the potential of the requirement of paragraph (2) to significantly raise the price of gasoline, food (excluding the net price impact on the requirement in paragraph (2) on commodities used in the production of ethanol), or heating oil for consumers in any significant area or region of the country above the price that would otherwise apply to such commodities in the absence of such requirement;</text></subparagraph> <subparagraph id="HCDF2724BEA5D42C38EFB4B3002F8C542"><enum>(C)</enum><text>the potential of the requirement of paragraph (2) to interfere with the supply of fuel in any significant gasoline market or region of the country, including interference with the efficient operation of refiners, blenders, importers, wholesale suppliers, and retail vendors of gasoline, and other motor fuels; and</text></subparagraph> <subparagraph id="H5D62EF292EDC4BDAAA207500C439537C"><enum>(D)</enum><text>the potential of the requirement of paragraph (2) to cause or promote exceedances of Federal, State, or local air quality standards.</text></subparagraph><continuation-text continuation-text-level="paragraph">If the Administrator determines, by clear and convincing information, after public notice and the opportunity for comment, that the requirement of paragraph (2) would have significant and meaningful adverse impact on the supply of fuel and related infrastructure or on the economy, public health, or environment of any significant area or region of the country, the Administrator may waive, in whole or in part, the requirement of paragraph (2) in any one year for which the determination is made for that area or region of the country, except that any such waiver shall not have the effect of reducing the applicable volume of renewable fuel specified in paragraph (2)(B) with respect to any year for which the determination is made. In determining economic impact under this paragraph, the Administrator shall not consider the reduced revenues available from the Highway Trust Fund (<external-xref legal-doc="usc" parsable-cite="usc/26/9503">section 9503</external-xref> of the Internal Revenue Code of 1986) as a result of the use of ethanol.</continuation-text></paragraph> <paragraph id="H38604E545905408C9B47C218D22D36A6"><enum>(11)</enum><header>Small refineries</header> <subparagraph id="H7DD2CB824E174528ADFBE27055AF2EB4"><enum>(A)</enum><header>In general</header><text>The requirement of paragraph (2) shall not apply to small refineries until the first calendar year beginning more than 5 years after the first year set forth in the table in paragraph (2)(B)(i). Not later than December 31, 2007, the Secretary of Energy shall complete for the Administrator a study to determine whether the requirement of paragraph (2) would impose a disproportionate economic hardship on small refineries. For any small refinery that the Secretary of Energy determines would experience a disproportionate economic hardship, the Administrator shall extend the small refinery exemption for such small refinery for no less than two additional years.</text></subparagraph> <subparagraph id="HFF6899F43ED24113932F487860D568EE"><enum>(B)</enum><header>Economic hardship</header> <clause id="HFA4EAC9A7A9E40D08B00761213822DBD"><enum>(i)</enum><header>Extension of exemption</header><text>A small refinery may at any time petition the Administrator for an extension of the exemption from the requirement of paragraph (2) for the reason of disproportionate economic hardship. In evaluating a hardship petition, the Administrator, in consultation with the Secretary of Energy, shall consider the findings of the study in addition to other economic factors.</text></clause> <clause id="H94D1F960B50C46F992D5B5E4473B7BFC"><enum>(ii)</enum><header>Deadline for action on petitions</header><text>The Administrator shall act on any petition submitted by a small refinery for a hardship exemption not later than 90 days after the receipt of the petition.</text></clause></subparagraph> <subparagraph id="HE9E8EBB858A7444A9742AB18C3322E86"><enum>(C)</enum><header>Credit program</header><text>If a small refinery notifies the Administrator that it waives the exemption provided by this Act, the regulations shall provide for the generation of credits by the small refinery beginning in the year following such notification.</text></subparagraph> <subparagraph id="HBAD0B592708B4F83A18FD236C398C603"><enum>(D)</enum><header>Opt-in for small refiners</header><text>A small refinery shall be subject to the requirements of this section if it notifies the Administrator that it waives the exemption under subparagraph (A).</text></subparagraph></paragraph> <paragraph id="H9C8C6B83AD10402DBC63DD34C4420000"><enum>(12)</enum><header>Ethanol market concentration analysis</header> <subparagraph id="H872671D51A8D49C29D416E6007C141E"><enum>(A)</enum><header>Analysis</header> <clause id="H404A949A5EF44284B20429B791A1DD"><enum>(i)</enum><header>In general</header><text>Not later than 180 days after the date of enactment of this subsection, and annually thereafter, the Federal Trade Commission shall perform a market concentration analysis of the ethanol production industry using the Herfindahl-Hirschman Index to determine whether there is sufficient competition among industry participants to avoid price setting and other anticompetitive behavior.</text></clause> <clause id="H4FE83DEB1474427AB58F4F3D2015E5CF"><enum>(ii)</enum><header>Scoring</header><text>For the purpose of scoring under clause (i) using the Herfindahl-Hirschman Index, all marketing arrangements among industry participants shall be considered.</text></clause></subparagraph> <subparagraph id="H48915D9F101E423AA76839C5B00BB4D"><enum>(B)</enum><header>Report</header><text>Not later than December 1, 2004, and annually thereafter, the Federal Trade Commission shall submit to Congress and the Administrator a report on the results of the market concentration analysis performed under subparagraph (A)(i).</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H83ACF54F3CBB4943B3D5B10001827295"><enum>(b)</enum><header>Penalties and enforcement</header><text>Section 211(d) of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(d)</external-xref>) is amended as follows:</text> <paragraph id="H892FEDC36BC24A6FAF08D7BFEC7CABEB"><enum>(1)</enum><text>In paragraph (1)—</text> <subparagraph id="HED959991E22340CCBEE861E087583665"><enum>(A)</enum><text>in the first sentence, by striking <quote>or (n)</quote> each place it appears and inserting <quote>(n), or (o)</quote>; and</text></subparagraph> <subparagraph id="H9C1D3D6071C643E0BEBDFEB69A0CDD6"><enum>(B)</enum><text>in the second sentence, by striking <quote>or (m)</quote> and inserting <quote>(m), or (o)</quote>.</text></subparagraph></paragraph> <paragraph id="H3D6C15B9AC1B447DACE91C56F33C5B4C"><enum>(2)</enum><text>In the first sentence of paragraph (2), by striking <quote>and (n)</quote> each place it appears and inserting <quote>(n), and (o)</quote>.</text></paragraph></subsection> <subsection id="HF69320A1B53D4E8AAD02527671378182"><enum>(c)</enum><header>Survey of renewable fuel market</header> <paragraph id="H7A51BDA5DDF140DFB36ED842A399C61C"><enum>(1)</enum><header>Survey and report</header><text>Not later than December 1, 2006, and annually thereafter, the Administrator of the Environmental Protection Agency (in consultation with the Secretary of Energy acting through the Administrator of the Energy Information Administration) shall—</text> <subparagraph id="HBA7CFE502C804917BDD6AE3CFD5EB6FB"><enum>(A)</enum><text>conduct, with respect to each conventional gasoline use area and each reformulated gasoline use area in each State, a survey to determine the market shares of—</text> <clause id="H113C319552D3468CB4075BDDD8329CCD"><enum>(i)</enum><text>conventional gasoline containing ethanol;</text></clause> <clause id="H78390DCE9E414F30ADC9876749997289"><enum>(ii)</enum><text>reformulated gasoline containing ethanol;</text></clause> <clause id="H78E8E341A10B43B38618B9A2A135007C"><enum>(iii)</enum><text>conventional gasoline containing renewable fuel; and</text></clause> <clause id="HDC441E385412485DB432AE7E035B5904"><enum>(iv)</enum><text>reformulated gasoline containing renewable fuel; and</text></clause></subparagraph> <subparagraph id="H8976218BF3E749B5A25BA139787FADA9"><enum>(B)</enum><text>submit to Congress, and make publicly available, a report on the results of the survey under subparagraph (A).</text></subparagraph></paragraph> <paragraph id="H61CBF3FCA3C3465A9DECEA9E26C2421F"><enum>(2)</enum><header>Recordkeeping and reporting requirements</header><text>The Administrator of the Environmental Protection Agency (hereinafter in this subsection referred to as the <quote>Administrator</quote>) may require any refiner, blender, or importer to keep such records and make such reports as are necessary to ensure that the survey conducted under paragraph (1) is accurate. The Administrator, to avoid duplicative requirements, shall rely, to the extent practicable, on existing reporting and recordkeeping requirements and other information available to the Administrator including gasoline distribution patterns that include multistate use areas.</text></paragraph> <paragraph id="H432D2F6EF87148A189FF83E351C4217C"><enum>(3)</enum><header>Applicable law</header><text>Activities carried out under this subsection shall be conducted in a manner designed to protect confidentiality of individual responses.</text></paragraph></subsection></section> <section id="HE945454CB0F2400BBA00EBF7D743BB00"><enum>1502.</enum><header>Fuels safe harbor</header> <subsection id="H5E962B55123C488B9E95BD06D300226C"><enum>(a)</enum><header>In general</header><text>Notwithstanding any other provision of Federal or State law, no renewable fuel, as defined by section 211(o)(1) of the <act-name parsable-cite="CAA">Clean Air Act</act-name>, or methyl tertiary butyl ether (hereinafterin this section referred to as <quote>MTBE</quote>), used or intended to be used as a motor vehicle fuel, nor any motor vehicle fuel containing such renewable fuel or MTBE, shall be deemed a defective product by virtue of the fact that it is, or contains, such a renewable fuel or MTBE, if it does not violate a control or prohibition imposed by the Administrator of the Environmental Protection Agency (hereinafter in this section referred to as the <quote>Administrator</quote>) under section 211 of such Act, and the manufacturer is in compliance with all requests for information under subsection (b) of such section 211 of such Act. If the safe harbor provided by this section does not apply, the existence of a claim of defective product shall be determined under otherwise applicable law. Nothing in this subsection shall be construed to affect the liability of any person for environmental remediation costs, drinking water contamination, negligence for spills or other reasonably foreseeable events, public or private nuisance, trespass, breach of warranty, breach of contract, or any other liability other than liability based upon a claim of defective product.</text></subsection> <subsection id="H3DD283FE43D6448DA42CC95B59CD3536"><enum>(b)</enum><header>Effective date</header><text>This section shall be effective as of September 5, 2003, and shall apply with respect to all claims filed on or after that date.</text></subsection></section> <section id="H355FC1103CC44876BE2B5FD78EBB4E3F"><enum>1503.</enum><header>Findings and MTBE transition assistance</header> <subsection id="H10F656BABD024CBF8220F7AD1F549E99"><enum>(a)</enum><header>Findings</header><text>Congress finds that—</text> <paragraph id="HB98470DE3805440FAC047153BF79607C"><enum>(1)</enum><text>since 1979, methyl tertiary butyl ether (hereinafter in this section referred to as <quote>MTBE</quote>) has been used nationwide at low levels in gasoline to replace lead as an octane booster or anti-knocking agent;</text></paragraph> <paragraph id="HE4F7B9F1A9DD4B2C916C03A6D7B2FA30"><enum>(2)</enum><text>Public Law 101–549 (commonly known as the <quote><act-name parsable-cite="CAA">Clean Air Act</act-name> Amendments of 1990</quote>) (<external-xref legal-doc="usc" parsable-cite="usc/42/7401">42 U.S.C. 7401 et seq.</external-xref>) established a fuel oxygenate standard under which reformulated gasoline must contain at least 2 percent oxygen by weight;</text></paragraph> <paragraph id="HB3E126AF47664E86B217AF75E3032446"><enum>(3)</enum><text>at the time of the adoption of the fuel oxygen standard, Congress was aware that significant use of MTBE would result from the adoption of that standard, and that the use of MTBE would likely be important to the cost-effective implementation of that program;</text></paragraph> <paragraph id="H34193837CF894C139F12DA9461DB9091"><enum>(4)</enum><text>Congress was aware that gasoline and its component additives can and do leak from storage tanks;</text></paragraph> <paragraph id="HAACABB53234A4CC48CD6595D009F33B7"><enum>(5)</enum><text>the fuel industry responded to the fuel oxygenate standard established by <external-xref legal-doc="public-law" parsable-cite="pl/101/549">Public Law 101–549</external-xref> by making substantial investments in—</text> <subparagraph id="H6680C055562D44A38EC1A7131823E5CB"><enum>(A)</enum><text>MTBE production capacity; and</text></subparagraph> <subparagraph id="HEAA4499823984ADCABCB16DEA1A7BB34"><enum>(B)</enum><text>systems to deliver MTBE-containing gasoline to the marketplace;</text></subparagraph></paragraph> <paragraph id="H816A3E2D3E7040B08887CAAC4E182DAF"><enum>(6)</enum><text>having previously required oxygenates like MTBE for air quality purposes, Congress has—</text> <subparagraph id="H65ECE5BAE8834CE7AFE733C6CFA8A286"><enum>(A)</enum><text>reconsidered the relative value of MTBE in gasoline;</text></subparagraph> <subparagraph id="H141DFDEE55484D618DEBFA00C9A07C14"><enum>(B)</enum><text>decided to establish a date certain for action by the Environmental Protection Agency to prohibit the use of MTBE in gasoline; and</text></subparagraph> <subparagraph id="H7E5DCE6E437149A5A39FABAA95318363"><enum>(C)</enum><text>decided to provide for the elimination of the oxygenate requirement for reformulated gasoline and to provide for a renewable fuels content requirement for motor fuel; and</text></subparagraph></paragraph> <paragraph id="H1A79D43D3EEA439F82AD92C13125469E"><enum>(7)</enum><text>it is appropriate for Congress to provide some limited transition assistance—</text> <subparagraph id="H664DF37C286E4855BA1CBB5F7853FBB8"><enum>(A)</enum><text>to merchant producers of MTBE who produced MTBE in response to a market created by the oxygenate requirement contained in the <act-name parsable-cite="CAA">Clean Air Act</act-name>; and</text></subparagraph> <subparagraph id="H1E0AAF984F5B4C11A0019321EA362D6C"><enum>(B)</enum><text>for the purpose of mitigating any fuel supply problems that may result from the elimination of the oxygenate requirement for reformulated gasoline and from the decision to establish a date certain for action by the Environmental Protection Agency to prohibit the use of MTBE in gasoline.</text></subparagraph></paragraph></subsection> <subsection id="H90F6A0CA80464F2AB5B6F415374F2507"><enum>(b)</enum><header>Purposes</header><text>The purpose of this section is to provide assistance to merchant producers of MTBE in making the transition from producing MTBE to producing other fuel additives.</text></subsection> <subsection id="HE28B7A6C4BC24C03A32B78D51102FD8B"><enum>(c)</enum><header>MTBE merchant producer conversion assistance</header><text>Section 211(c) of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(c)</external-xref>) is amended by adding at the end the following:</text> <quoted-block act-name="Clean Air Act" id="HB831C23E2FDE49B69C3790C465941F1D"> <paragraph id="HC73D971C438E47A490CC02AEF2F8C65"><enum>(5)</enum><header>MTBE merchant producer conversion assistance</header> <subparagraph id="H6ADC1879879845DB82E4B5E811C4CDFF"><enum>(A)</enum><header>In general</header> <clause id="H03FE51251FF749988B6656081E5EE8C0"><enum>(i)</enum><header>Grants</header><text>The Secretary of Energy, in consultation with the Administrator, may make grants to merchant producers of methyl tertiary butyl ether (hereinafter in this subsection referred to as <quote>MTBE</quote>) in the United States to assist the producers in the conversion of eligible production facilities described in subparagraph (C) to the production of iso-octane, iso-octene, alkylates, or renewable fuels.</text></clause> <clause id="HFC6F0A51EFDB434B97371702DFE260A4"><enum>(ii)</enum><header>Determination</header><text>The Administrator, in consultation with the Secretary of Energy, may determine that transition assistance for the production of iso-octane, iso-octene, alkylates, or renewable fuels is inconsistent with the provisions of subparagraph (B) and, on that basis, may deny applications for grants authorized by this paragraph.</text></clause></subparagraph> <subparagraph id="H748A6D08D1BB4FC1001B9C8F99C6108D"><enum>(B)</enum><header>Further grants</header><text>The Secretary of Energy, in consultation with the Administrator, may also further make grants to merchant producers of MTBE in the United States to assist the producers in the conversion of eligible production facilities described in subparagraph (C) to the production of such other fuel additives (unless the Administrator determines that such fuel additives may reasonably be anticipated to endanger public health or the environment) that, consistent with this subsection—</text> <clause id="HAAF0278E04574DD5827174B97FF882"><enum>(i)</enum><text>have been registered and have been tested or are being tested in accordance with the requirements of this section; and</text></clause> <clause id="HBA440AAF7BD54F478B8EA655219D87FD"><enum>(ii)</enum><text>will contribute to replacing gasoline volumes lost as a result of amendments made to subsection (k) of this section by section 1504(a) and 1506 of the Energy Policy Act of 2003.</text></clause></subparagraph> <subparagraph id="H4B9534FAFE3B4CFAAB66C0B45670C367"><enum>(C)</enum><header>Eligible production facilities</header><text>A production facility shall be eligible to receive a grant under this paragraph if the production facility—</text> <clause id="H507ACAC32FC84A7BAC97CAD96D917D2F"><enum>(i)</enum><text>is located in the United States; and</text></clause> <clause id="H5BF032D478744BBEA4CA6F93E3DEAEDB"><enum>(ii)</enum><text>produced MTBE for consumption before April 1, 2003 and ceased production at any time after the date of enactment of this paragraph.</text></clause></subparagraph> <subparagraph id="HC53FC8495FFD48BEB8614CCC26A56E85"><enum>(D)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out this paragraph $250,000,000 for each of fiscal years 2005 through 2012, to remain available until expended.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H58BB99B89B904BCE9C1534844EA1CC00"><enum>(d)</enum><header>Effect on State law</header><text>The amendments made to the <act-name parsable-cite="CAA">Clean Air Act</act-name> by this title have no effect regarding any available authority of States to limit the use of methyl tertiary butyl ether in motor vehicle fuel.</text></subsection></section> <section id="HA42B6F4CCD974DB095BCDF8601D3D050"><enum>1504.</enum><header>Use of MTBE</header> <subsection id="H3BF2573A93AF4B8EA6E72D95B4FCE634"><enum>(a)</enum><header>In general</header><text>Subject to subsections (e) and (f), not later than December 31, 2014, the use of methyl tertiary butyl ether (hereinafter in this section referred to as <quote>MTBE</quote>) in motor vehicle fuel in any State other than a State described in subsection (c) is prohibited.</text></subsection> <subsection id="H19A2D0C5D1564FD593ECC003261BC62"><enum>(b)</enum><header>Regulations</header><text>The Administrator of the Environmental Protection Agency (hereafter referred to in this section as the <quote>Administrator</quote>) shall promulgate regulations to effect the prohibition in subsection (a).</text></subsection> <subsection id="HE68497C8B4D34C3086A89CC6018E5400"><enum>(c)</enum><header>States that authorize use</header><text>A State described in this subsection is a State in which the Governor of the State submits a notification to the Administrator authorizing the use of MTBE in motor vehicle fuel sold or used in the State.</text></subsection> <subsection id="H92E9066341F54D40B2BA8E785E4FCC3C"><enum>(d)</enum><header>Publication of notice</header><text>The Administrator shall publish in the Federal Register each notice submitted by a State under subsection (c).</text></subsection> <subsection id="H2DFB9C7E5F6F4B82AFD97EF591EAA00"><enum>(e)</enum><header>Trace quantities</header><text>In carrying out subsection (a), the Administrator may allow trace quantities of MTBE, not to exceed 0.5 percent by volume, to be present in motor vehicle fuel in cases that the Administrator determines to be appropriate.</text></subsection> <subsection id="H38C2B1A0436F44F9BA2025BEA3D72CCB"><enum>(f)</enum><header>Limitation</header><text>The Administrator, under authority of subsection (a), shall not prohibit or control the production of MTBE for export from the United States or for any other use other than for use in motor vehicle fuel.</text></subsection></section> <section id="H789F6FBCDB754BA6BD7BD71B007DE9CB"><enum>1505.</enum><header>National Academy of Sciences review and presidential determination</header> <subsection id="HFCBD6E84634149EC876F40FE9E00EC77"><enum>(a)</enum><header>NAS review</header><text>Not later than May 31, 2013, the Secretary shall enter into an arrangement with the National Academy of Sciences to review the use of methyl tertiary butyl ether (hereafter referred to in this section as <quote>MTBE</quote>) in fuel and fuel additives. The review shall only use the best available scientific information and data collected by accepted methods or the best available means. The review shall examine the use of MTBE in fuel and fuel additives, significant beneficial and detrimental effects of this use on environmental quality or public health or welfare including the costs and benefits of such effects, likely effects of controls or prohibitions on MTBE regarding fuel availability and price, and other appropriate and reasonable actions that are available to protect the environment or public health or welfare from any detrimental effects of the use of MTBE in fuel or fuel additives. The review shall be peer-reviewed prior to publication and all supporting data and analytical models shall be available to the public. The review shall be completed no later than May 31, 2014.</text></subsection> <subsection id="H950EC47B9DCB46ECBA8FCA17C0991F1D"><enum>(b)</enum><header>Presidential determination</header><text>No later than June 30, 2014, the President may make a determination that restrictions on the use of MTBE to be implemented pursuant to section 1504 shall not take place and that the legal authority contained in section 1504 to prohibit the use of MTBE in motor vehicle fuel shall become null and void.</text></subsection></section> <section id="H288F0448AE714740B33279E3C6AFF1F4"><enum>1506.</enum><header>Elimination of oxygen content requirement for reformulated gasoline</header> <subsection id="H057B7C7019C7419E89E49132ECF20787"><enum>(a)</enum><header>Elimination</header> <paragraph id="HA5E9CB4F3D7444DC93279F8FBB30007D"><enum>(1)</enum><header>In general</header><text>Section 211(k) of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(k)</external-xref>) is amended as follows:</text> <subparagraph id="H79D79FCC72724F70A316519D099DF05C"><enum>(A)</enum><text>In paragraph (2)—</text> <clause id="H48B95B04537846A700953C69A53097E8"><enum>(i)</enum><text>in the second sentence of subparagraph (A), by striking <quote>(including the oxygen content requirement contained in subparagraph (B))</quote>;</text></clause> <clause id="H6CE88295A74240C484B08134E1806958"><enum>(ii)</enum><text>by striking subparagraph (B); and</text></clause> <clause id="HAC7F9F6C462C4EB692B87757E38B60B7"><enum>(iii)</enum><text>by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively.</text></clause></subparagraph> <subparagraph id="HA10F1BEB334049548D28275263F49F24"><enum>(B)</enum><text>In paragraph (3)(A), by striking clause (v).</text></subparagraph> <subparagraph id="HC2FD22D103054DA18850A7B6F9602432"><enum>(C)</enum><text>In paragraph (7)—</text> <clause id="HB6F59F2645214B7E9BEBA6E28C121B8"><enum>(i)</enum><text>in subparagraph (A)—</text> <subclause id="HF8008D0DF4F14AC498FC4F72D6FF45E5"><enum>(I)</enum><text>by striking clause (i); and</text></subclause> <subclause id="H2C0BD10345BD422CA1A0B81C0050C99D"><enum>(II)</enum><text>by redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively; and</text></subclause></clause> <clause id="HE3B88B0441AC4A22B5E38BC500ED5112"><enum>(ii)</enum><text>in subparagraph (C)—</text> <subclause id="H0F64777B70C54EFB00543DFFC5DDDF6B"><enum>(I)</enum><text>by striking clause (ii).</text></subclause> <subclause id="H942F52A5FE9E482AB635BC17D084F2D7"><enum>(II)</enum><text>by redesignating clause (iii) as clause (ii).</text></subclause></clause></subparagraph></paragraph> <paragraph id="HC13677BBE1C44134BCDDAAD400026EE5"><enum>(2)</enum><header>Effective date</header><text>The amendments made by paragraph (1) take effect 270 days after the date of enactment of this Act, except that such amendments shall take effect upon such date of enactment in any State that has received a waiver under section 209(b) of the <act-name parsable-cite="CAA">Clean Air Act</act-name>.</text></paragraph></subsection> <subsection id="H8138CDB249244152A8ADA46D31408DBD"><enum>(b)</enum><header>Maintenance of toxic air pollutant emission reductions</header><text>Section 211(k)(1) of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(k)(1)</external-xref>) is amended as follows:</text> <paragraph id="H96C1A0AA119A433086D444006492039B"><enum>(1)</enum><text>By striking <quote>Within 1 year after the enactment of the <act-name parsable-cite="CAA">Clean Air Act</act-name> Amendments of 1990,</quote> and inserting the following:</text> <quoted-block act-name="Clean Air Act" id="H61C0C0592EBF45DEABC9A5C2E397D7BF"> <subparagraph id="HF5E22563C64B4A26BD5BB88BF569A0D3"><enum>(A)</enum><header>In general</header><text>Not later than November 15, 1991,</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H849E1534B77F4357B962EB97B930762F"><enum>(2)</enum><text>By adding at the end the following:</text> <quoted-block id="H4A842FA7EC3743EFA39BE05990408C6B"> <subparagraph id="H8F068F407A2B43528FBBE393F2CDD04"><enum>(B)</enum><header>Maintenance of toxic air pollutant emissions reductions from reformulated gasoline</header> <clause id="H7ACF8F60A61C45B691E7D6474B16F736"><enum>(i)</enum><header>Definitions</header><text>In this subparagraph the term <term>PADD</term> means a Petroleum Administration for Defense District.</text></clause> <clause id="HA7AB2F69C04E4E84A9B4F42829F26BE1"><enum>(ii)</enum><header>Regulations regarding emissions of toxic air pollutants</header><text>Not later than 270 days after the date of enactment of this subparagraph the Administrator shall establish, for each refinery or importer, standards for toxic air pollutants from use of the reformulated gasoline produced or distributed by the refinery or importer that maintain the reduction of the average annual aggregate emissions of toxic air pollutants for reformulated gasoline produced or distributed by the refinery or importer during calendar years 1999 and 2000, determined on the basis of data collected by the Administrator with respect to the refinery or importer.</text></clause> <clause id="H43F3A635C366402988ABA9DAFCC85B13"><enum>(iii)</enum><header>Standards applicable to specific refineries or importers</header> <subclause id="HFA03CFD332F34F2BAD3800C347006241"><enum>(I)</enum><header>Applicability of standards</header><text>For any calendar year, the standards applicable to a refinery or importer under clause (ii) shall apply to the quantity of gasoline produced or distributed by the refinery or importer in the calendar year only to the extent that the quantity is less than or equal to the average annual quantity of reformulated gasoline produced or distributed by the refinery or importer during calendar years 1999 and 2000.</text></subclause> <subclause id="HDF04237F33E343668B37B644EDCD9DF"><enum>(II)</enum><header>Applicability of other standards</header><text>For any calendar year, the quantity of gasoline produced or distributed by a refinery or importer that is in excess of the quantity subject to subclause (I) shall be subject to standards for toxic air pollutants promulgated under subparagraph (A) and paragraph (3)(B).</text></subclause></clause> <clause id="HCABE50E0135242BE00F86558F6002FEE"><enum>(iv)</enum><header>Credit program</header><text>The Administrator shall provide for the granting and use of credits for emissions of toxic air pollutants in the same manner as provided in paragraph (7).</text></clause> <clause id="H9363B25408734D0D87FCD998B58E025D"><enum>(v)</enum><header>Regional protection of toxics reduction baselines</header> <subclause id="HF8DAFC25A65D4F10850074E022837343"><enum>(I)</enum><header>In general</header><text>Not later than 60 days after the date of enactment of this subparagraph, and not later than April 1 of each calendar year that begins after that date of enactment, the Administrator shall publish in the Federal Register a report that specifies, with respect to the previous calendar year—</text> <item id="H5A43C1BF24D24411BBC60ED541DAC5C"><enum>(aa)</enum><text>the quantity of reformulated gasoline produced that is in excess of the average annual quantity of reformulated gasoline produced in 1999 and 2000; and</text></item> <item id="H12BD2F35919C4FD58C00D4D900007B9F"><enum>(bb)</enum><text>the reduction of the average annual aggregate emissions of toxic air pollutants in each PADD, based on retail survey data or data from other appropriate sources.</text></item></subclause> <subclause id="HAB266BF85CD842EB89F85619BF815CA4"><enum>(II)</enum><header>Effect of failure to maintain aggregate toxics reductions</header><text>If, in any calendar year, the reduction of the average annual aggregate emissions of toxic air pollutants in a PADD fails to meet or exceed the reduction of the average annual aggregate emissions of toxic air pollutants in the PADD in calendar years 1999 and 2000, the Administrator, not later than 90 days after the date of publication of the report for the calendar year under subclause (I), shall—</text> <item id="HB69ADEA5573C49C680C93FCD63D66630"><enum>(aa)</enum><text>identify, to the maximum extent practicable, the reasons for the failure, including the sources, volumes, and characteristics of reformulated gasoline that contributed to the failure; and</text></item> <item id="HE9F9E6E4EA1C49EEAD2CF0B6459E82DE"><enum>(bb)</enum><text>promulgate revisions to the regulations promulgated under clause (ii), to take effect not earlier than 180 days but not later than 270 days after the date of promulgation, to provide that, notwithstanding clause (iii)(II), all reformulated gasoline produced or distributed at each refinery or importer shall meet the standards applicable under clause (ii) not later than April 1 of the year following the report in subclause (II) and for subsequent years.</text></item></subclause></clause> <clause id="H0376DD3A54A442BBBC4FE95348ED4F2"><enum>(vi)</enum><header>Regulations to control hazardous air pollutants from motor vehicles and motor vehicle fuels</header><text>Not later than July 1, 2004, the Administrator shall promulgate final regulations to control hazardous air pollutants from motor vehicles and motor vehicle fuels, as provided for in <external-xref legal-doc="cfr" parsable-cite="cfr/40/80.1045">section 80.1045</external-xref> of title 40, Code of Federal Regulations (as in effect on the date of enactment of this subparagraph).</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HDB870FCECC074421AF00E2AEA436DFFC"><enum>(c)</enum><header>Consolidation in reformulated gasoline regulations</header><text>Not later than 180 days after the date of enactment of this Act, the Administrator of the Environmental Protection Agency shall revise the reformulated gasoline regulations under subpart D of part 80 of title 40, Code of Federal Regulations, to consolidate the regulations applicable to VOC-Control Regions 1 and 2 under section 80.41 of that title by eliminating the less stringent requirements applicable to gasoline designated for VOC-Control Region 2 and instead applying the more stringent requirements applicable to gasoline designated for VOC-Control Region 1.</text></subsection> <subsection id="H780428BBE25743FFA39209CD94F15E24"><enum>(d)</enum><header>Savings clause</header><text>Nothing in this section is intended to affect or prejudice either any legal claims or actions with respect to regulations promulgated by the Administrator of the Environmental Protection Agency (hereinafter in this subsection referred to as the <quote>Administrator</quote>) prior to the date of enactment of this Act regarding emissions of toxic air pollutants from motor vehicles or the adjustment of standards applicable to a specific refinery or importer made under such prior regulations and the Administrator may apply such adjustments to the standards applicable to such refinery or importer under clause (iii)(I) of section 211(k)(1)(B) of the <act-name parsable-cite="CAA">Clean Air Act</act-name>, except that—</text> <paragraph id="HB45A17B52747428FAEC8FC5BA4CCCF2"><enum>(1)</enum><text>the Administrator shall revise such adjustments to be based only on calendar years 1999–2000; and</text></paragraph> <paragraph id="H6A4E17A3A4AB4817BE51F56B9C08B853"><enum>(2)</enum><text>for adjustments based on toxic air pollutant emissions from reformulated gasoline significantly below the national annual average emissions of toxic air pollutants from all reformulated gasoline, the Administrator may revise such adjustments to take account of the scope of Federal or State prohibitions on the use of methyl tertiary butyl ether imposed after the date of the enactment of this paragraph, except that any such adjustment shall require such refiner or importer, to the greatest extent practicable, to maintain the reduction achieved during calendar years 1999–2000 in the average annual aggregate emissions of toxic air pollutants from reformulated gasoline produced or distributed by the refinery or importer; <italic>Provided</italic>, that any such adjustment shall not be made at a level below the average percentage of reductions of emissions of toxic air pollutants for reformulated gasoline supplied to PADD I during calendar years 1999–2000.</text></paragraph></subsection></section> <section id="HC16CB57F09C646E8A39BCCB05CD02F2E"><enum>1507.</enum><header>Analyses of motor vehicle fuel changes</header><text display-inline="no-display-inline">Section 211 of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545</external-xref>) is amended by inserting after subsection (o) the following:</text> <quoted-block act-name="Clean Air Act" id="H6839320AC4324EEDBCD8508921F2A097"> <subsection id="H44190C229A934AECBF7C62803173DE9E"><enum>(p)</enum><header>Analyses of motor vehicle fuel changes and emissions model</header> <paragraph id="HE1533A626D734E1AA3E260B7BB2D6C40"><enum>(1)</enum><header>Anti-backsliding analysis</header> <subparagraph id="H6A549F760F024B9ABC2C7B8B47ED7B93"><enum>(A)</enum><header>Draft analysis</header><text>Not later than 4 years after the date of enactment of this subsection, the Administrator shall publish for public comment a draft analysis of the changes in emissions of air pollutants and air quality due to the use of motor vehicle fuel and fuel additives resulting from implementation of the amendments made by subtitle A of title XV of the Energy Policy Act of 2003.</text></subparagraph> <subparagraph id="H07AA5893B289439C8986D6258B9F48DB"><enum>(B)</enum><header>Final analysis</header><text>After providing a reasonable opportunity for comment but not later than 5 years after the date of enactment of this paragraph, the Administrator shall publish the analysis in final form.</text></subparagraph></paragraph> <paragraph id="HA78F61E5294D45388F65E67EAAD3CCB"><enum>(2)</enum><header>Emissions model</header><text>For the purposes of this subsection, as soon as the necessary data are available, the Administrator shall develop and finalize an emissions model that reasonably reflects the effects of gasoline characteristics or components on emissions from vehicles in the motor vehicle fleet during calendar year 2005.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H8C442A0BF928450B86EB3B59FB514759"><enum>1508.</enum><header>Data collection</header><text display-inline="no-display-inline">Section 205 of the Department of Energy Organization Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7135">42 U.S.C. 7135</external-xref>) is amended by adding at the end the following:</text> <quoted-block id="HBCD53F3F86F74F8B83AD943B8D8928FA"> <subsection id="H72940D488D944CB60010ADB7D0C746F5"><enum>(m)</enum><header>Renewable fuels survey</header> <paragraph display-inline="yes-display-inline" id="H6BF74A68E2864BF7AF8BD68642F97040"><enum>(1)</enum><text>In order to improve the ability to evaluate the effectiveness of the Nation’s renewable fuels mandate, the Administrator shall conduct and publish the results of a survey of renewable fuels demand in the motor vehicle fuels market in the United States monthly, and in a manner designed to protect the confidentiality of individual responses. In conducting the survey, the Administrator shall collect information both on a national and regional basis, including each of the following:</text> <subparagraph indent="up1" id="H34D677F7A0CF458E92A3B75EB4A835C9"><enum>(A)</enum><text>The quantity of renewable fuels produced.</text></subparagraph> <subparagraph indent="up1" id="HB7F1B5FB43A247B6804F2B68BADC736D"><enum>(B)</enum><text>The quantity of renewable fuels blended.</text></subparagraph> <subparagraph indent="up1" id="HC75352BB515A43D986A5178DA8857FB1"><enum>(C)</enum><text>The quantity of renewable fuels imported.</text></subparagraph> <subparagraph indent="up1" id="HC01855ECD8264F5299AF46BA64843EB3"><enum>(D)</enum><text>The quantity of renewable fuels demanded.</text></subparagraph> <subparagraph indent="up1" id="H07459E38A8B24F0A94F9A400D91D525E"><enum>(E)</enum><text>Market price data.</text></subparagraph> <subparagraph indent="up1" id="H3B214AEBE1614DA180A7A3C2D691C973"><enum>(F)</enum><text>Such other analyses or evaluations as the Administrator finds is necessary to achieve the purposes of this section.</text></subparagraph></paragraph> <paragraph indent="up1" id="H4C3ECC07DE284C5C9668EB4B3FAC2D62"><enum>(2)</enum><text>The Administrator shall also collect or estimate information both on a national and regional basis, pursuant to subparagraphs (A) through (F) of paragraph (1), for the 5 years prior to implementation of this subsection.</text></paragraph> <paragraph indent="up1" id="HE6324C89ADC74572AD022E7247DE3EE1"><enum>(3)</enum><text>This subsection does not affect the authority of the Administrator to collect data under section 52 of the Federal Energy Administration Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/15/790a">15 U.S.C. 790a</external-xref>).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H3E3430DDF3B94E43BA4590896F52E93C"><enum>1509.</enum><header>Reducing the proliferation of State fuel controls</header> <subsection id="H78AB0A7C2BD14F44BAE7AF60EE504162"><enum>(a)</enum><header>EPA approval of State plans with fuel controls</header><text>Section 211(c)(4)(C) of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(c)(4)(C)</external-xref>) is amended by adding at the end the following: <quote>The Administrator shall not approve a control or prohibition respecting the use of a fuel or fuel additive under this subparagraph unless the Administrator, after consultation with the Secretary of Energy, publishes in the Federal Register a finding that, in the Administrator’s judgment, such control or prohibition will not cause fuel supply or distribution interruptions or have a significant adverse impact on fuel producibility in the affected area or contiguous areas.</quote>.</text></subsection> <subsection id="H23A49060A01644ABB94FE1A09B89D19B"><enum>(b)</enum><header>Study</header><text>The Administrator of the Environmental Protection Agency (hereinafter in this subsection referred to as the <quote>Administrator</quote>), in cooperation with the Secretary of Energy, shall undertake a study of the projected effects on air quality, the proliferation of fuel blends, fuel availability, and fuel costs of providing a preference for each of the following:</text> <paragraph id="HE2B661D2987942C698B18CAD798DBFA9"><enum>(A)</enum><text>Reformulated gasoline referred to in subsection (k) of section 211 of the <act-name parsable-cite="CAA">Clean Air Act</act-name>.</text> <subparagraph indent="up1" id="H4A0EE5E221E44C5E976BE6F4F37C6DB"><enum>(B)</enum><text>A low RVP gasoline blend that has been certified by the Administrator as having a Reid Vapor Pressure of 7.0 pounds per square inch (psi).</text></subparagraph> <subparagraph indent="up1" id="H49A2906F5F544AD58DE1B76DC7300B3"><enum>(C)</enum><text>A low RVP gasoline blend that has been certified by the Administrator as having a Reid Vapor Pressure of 7.8 pounds per square inch (psi).</text></subparagraph><continuation-text continuation-text-level="paragraph">In carrying out such study, the Administrator shall obtain comments from affected parties. The Administrator shall submit the results of such study to the Congress not later than 18 months after the date of enactment of this Act, together with any recommended legislative changes.</continuation-text></paragraph></subsection></section> <section id="HF2CFBFF2D13A4BB1AB5E64D9A732C462"><enum>1510.</enum><header>Fuel system requirements harmonization study</header> <subsection id="H1DF826C151A240E300CEF2B0049E8AA"><enum>(a)</enum><header>Study</header> <paragraph id="H0002320E4C894676A0FF12FD63845C3"><enum>(1)</enum><header>In general</header><text>The Administrator of the Environmental Protection Agency (hereinafter in this section referred to as the <quote>Administrator</quote>) and the Secretary of Energy shall jointly conduct a study of Federal, State, and local requirements concerning motor vehicle fuels, including—</text> <subparagraph id="HDB5876E2D6B74A99AF0000D8215165D4"><enum>(A)</enum><text>requirements relating to reformulated gasoline, volatility (measured in Reid vapor pressure), oxygenated fuel, and diesel fuel; and</text></subparagraph> <subparagraph id="H2644E5C3FE034DBD98BCC738C173FF61"><enum>(B)</enum><text>other requirements that vary from State to State, region to region, or locality to locality.</text></subparagraph></paragraph> <paragraph id="H70196C352B444276B7B4B2316B4DF732"><enum>(2)</enum><header>Required elements</header><text>The study shall assess—</text> <subparagraph id="H0BE8FEABCAA64461B900A6D58D3D5C91"><enum>(A)</enum><text>the effect of the variety of requirements described in paragraph (1) on the supply, quality, and price of motor vehicle fuels available to consumers in various States and localities;</text></subparagraph> <subparagraph id="H1166D5D14DBB45259414F61000CF7456"><enum>(B)</enum><text>the effect of the requirements described in paragraph (1) on achievement of—</text> <clause id="HFBF0698DA63343F892BE50843BF37B11"><enum>(i)</enum><text>national, regional, and local air quality standards and goals; and</text></clause> <clause id="HE7E1EECED9094434A9C101251E290902"><enum>(ii)</enum><text>related environmental and public health protection standards and goals;</text></clause></subparagraph> <subparagraph id="H0ADC8BCAFD1949409ECE7C2FD7F7329"><enum>(C)</enum><text>the effect of Federal, State, and local motor vehicle fuel regulations, including multiple motor vehicle fuel requirements, on—</text> <clause id="HDFCDDA8468DA42178BED6BF981ADB1B0"><enum>(i)</enum><text>domestic refineries;</text></clause> <clause id="HF0458FF897BA4A36B70556CCAC00A1E0"><enum>(ii)</enum><text>the fuel distribution system; and</text></clause> <clause id="H918F2063A803415F883B25E5B1DAC563"><enum>(iii)</enum><text>industry investment in new capacity;</text></clause></subparagraph> <subparagraph id="H9906C8D9794B41DC9D331D244BD05F70"><enum>(D)</enum><text>the effect of the requirements described in paragraph (1) on emissions from vehicles, refineries, and fuel handling facilities;</text></subparagraph> <subparagraph id="H913CD59D73C549D79EBB76E86801BE01"><enum>(E)</enum><text>the feasibility of developing national or regional motor vehicle fuel slates for the 48 contiguous States that, while improving air quality at the national, regional and local levels consistent with the attainment of national ambient air quality standards, could—</text> <clause id="H332E7C0D68E74EDD84765F004E316784"><enum>(i)</enum><text>enhance flexibility in the fuel distribution infrastructure and improve fuel fungibility;</text></clause> <clause id="H925A8A503C4A48FD8264D07F2BCAAE00"><enum>(ii)</enum><text>reduce price volatility and costs to consumers and producers;</text></clause> <clause id="HC8BCEA6775E84D6486436BED934BE28F"><enum>(iii)</enum><text>provide increased liquidity to the gasoline market; and</text></clause> <clause id="H7734813B2044465385E833D574FD4FD0"><enum>(iv)</enum><text>enhance fuel quality, consistency, and supply;</text></clause></subparagraph> <subparagraph id="H3C4D82A987164D05A56DDEDA72DE54E0"><enum>(F)</enum><text>the feasibility of providing incentives to promote cleaner burning motor vehicle fuel; and</text></subparagraph> <subparagraph id="HB2F68DE8504647FBABBDFA097ED279D0"><enum>(G)</enum><text>the extent to which improvements in air quality and any increases or decreases in the price of motor fuel can be projected to result from the Environmental Protection Agency’s Tier II requirements for conventional gasoline and vehicle emission systems, the reformulated gasoline program, the renewable content requirements established by this subtitle, State programs regarding gasoline volatility, and any other requirements imposed by States or localities affecting the composition of motor fuel.</text></subparagraph></paragraph></subsection> <subsection id="HE3F19044DB674BDBA86BEEA445BAC5C"><enum>(b)</enum><header>Report</header> <paragraph id="H22D28CE9443248FDAD686DC0EDA054CF"><enum>(1)</enum><header>In general</header><text>Not later than December 31, 2007, the Administrator and the Secretary of Energy shall submit to Congress a report on the results of the study conducted under subsection (a).</text></paragraph> <paragraph id="HA301DC00F99C4048B15CEC509749EC1E"><enum>(2)</enum><header>Recommendations</header> <subparagraph id="H9452FBAC4BDA4CAF9600F99F94DE42F3"><enum>(A)</enum><header>In general</header><text>The report under this subsection shall contain recommendations for legislative and administrative actions that may be taken—</text> <clause id="H473128B10D4C4C5E81EDA464B993DB56"><enum>(i)</enum><text>to improve air quality;</text></clause> <clause id="H06853D3C8A284FC9931102267564F1DC"><enum>(ii)</enum><text>to reduce costs to consumers and producers; and</text></clause> <clause id="HECDAA2046BB640BFB362CD17CE8B57CB"><enum>(iii)</enum><text>to increase supply liquidity.</text></clause></subparagraph> <subparagraph id="HD29A7EADDA9A495B9053669539D4C1E"><enum>(B)</enum><header>Required considerations</header><text>The recommendations under subparagraph (A) shall take into account the need to provide advance notice of required modifications to refinery and fuel distribution systems in order to ensure an adequate supply of motor vehicle fuel in all States.</text></subparagraph></paragraph> <paragraph id="H89BE9343E94044A6806957C9BDFD1432"><enum>(3)</enum><header>Consultation</header><text>In developing the report under this subsection, the Administrator and the Secretary of Energy shall consult with—</text> <subparagraph id="H69B6A9F4A84442538B8027E64420002F"><enum>(A)</enum><text>the Governors of the States;</text></subparagraph> <subparagraph id="HF201FCE363C04E318C1F08DAFF004467"><enum>(B)</enum><text>automobile manufacturers;</text></subparagraph> <subparagraph id="H94FBF767B2054E7CAE39F0CBD504048"><enum>(C)</enum><text>motor vehicle fuel producers and distributors; and</text></subparagraph> <subparagraph id="HD1F4AFC74E4343C3821F227BE9AA568C"><enum>(D)</enum><text>the public.</text></subparagraph></paragraph></subsection></section> <section id="H3DDEE26C49F54125A9D2009E004579AF"><enum>1511.</enum><header>Commercial byproducts from municipal solid waste and cellulosic biomass loan guarantee program</header> <subsection id="H1819E3F40A364E058F004EF42144E9A6"><enum>(a)</enum><header>Definition of municipal solid waste</header><text>In this section, the term <term>municipal solid waste</term> has the meaning given the term <term>solid waste</term> in section 1004 of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6903">42 U.S.C. 6903</external-xref>).</text></subsection> <subsection id="H7011D762C7EC489E8DB223CA000BA08"><enum>(b)</enum><header>Establishment of program</header><text>The Secretary of Energy (hereinafter in this section referred to as the <quote>Secretary</quote>) shall establish a program to provide guarantees of loans by private institutions for the construction of facilities for the processing and conversion of municipal solid waste and cellulosic biomass into fuel ethanol and other commercial byproducts.</text></subsection> <subsection id="H1246711EDDA1464B8E10E3AA4CAE54E7"><enum>(c)</enum><header>Requirements</header><text>The Secretary may provide a loan guarantee under subsection (b) to an applicant if—</text> <paragraph id="HA91505134C384484B396CAE1D2BB27D"><enum>(1)</enum><text>without a loan guarantee, credit is not available to the applicant under reasonable terms or conditions sufficient to finance the construction of a facility described in subsection (b);</text></paragraph> <paragraph id="H1A2E115C82CA49ECB0A36D5E44FB375D"><enum>(2)</enum><text>the prospective earning power of the applicant and the character and value of the security pledged provide a reasonable assurance of repayment of the loan to be guaranteed in accordance with the terms of the loan; and</text></paragraph> <paragraph id="HD610EAE99FDC469B99D256991DBF7358"><enum>(3)</enum><text>the loan bears interest at a rate determined by the Secretary to be reasonable, taking into account the current average yield on outstanding obligations of the United States with remaining periods of maturity comparable to the maturity of the loan.</text></paragraph></subsection> <subsection id="H5F038272A75446D994A7A4FBFB827FD1"><enum>(d)</enum><header>Criteria</header><text>In selecting recipients of loan guarantees from among applicants, the Secretary shall give preference to proposals that—</text> <paragraph id="H5372F75C3C03430DBE1FE13929FE4490"><enum>(1)</enum><text>meet all applicable Federal and State permitting requirements;</text></paragraph> <paragraph id="H3A482438270E4F2AA6D1E2382BEBF12F"><enum>(2)</enum><text>are most likely to be successful; and</text></paragraph> <paragraph id="HF2141330B22B4554007E1E87EF264918"><enum>(3)</enum><text>are located in local markets that have the greatest need for the facility because of—</text> <subparagraph id="H6107F9FD6DF14F59A95D94272BCD0000"><enum>(A)</enum><text>the limited availability of land for waste disposal;</text></subparagraph> <subparagraph id="HAEC032FDA1DB464EAF64EBB590B5951B"><enum>(B)</enum><text>the availability of sufficient quantities of cellulosic biomass; or</text></subparagraph> <subparagraph id="H028ABFA3EEC74BA98C49571E65FE8E08"><enum>(C)</enum><text>a high level of demand for fuel ethanol or other commercial byproducts of the facility.</text></subparagraph></paragraph></subsection> <subsection id="H2822F99C7C6848459BDE665D7BFFA08C"><enum>(e)</enum><header>Maturity</header><text>A loan guaranteed under subsection (b) shall have a maturity of not more than 20 years.</text></subsection> <subsection id="H7DF8DE6737534BB08B59FD560079FB2D"><enum>(f)</enum><header>Terms and conditions</header><text>The loan agreement for a loan guaranteed under subsection (b) shall provide that no provision of the loan agreement may be amended or waived without the consent of the Secretary.</text></subsection> <subsection id="H92F904F0241E41A2B2D5673FB803AB55"><enum>(g)</enum><header>Assurance of repayment</header><text>The Secretary shall require that an applicant for a loan guarantee under subsection (b) provide an assurance of repayment in the form of a performance bond, insurance, collateral, or other means acceptable to the Secretary in an amount equal to not less than 20 percent of the amount of the loan.</text></subsection> <subsection id="H1616B0DCA12245379D07E1CC41B6B117"><enum>(h)</enum><header>Guarantee fee</header><text>The recipient of a loan guarantee under subsection (b) shall pay the Secretary an amount determined by the Secretary to be sufficient to cover the administrative costs of the Secretary relating to the loan guarantee.</text></subsection> <subsection id="H05C49486C77240C4A1BCBB96B41CAFFC"><enum>(i)</enum><header>Full faith and credit</header><text>The full faith and credit of the United States is pledged to the payment of all guarantees made under this section. Any such guarantee made by the Secretary shall be conclusive evidence of the eligibility of the loan for the guarantee with respect to principal and interest. The validity of the guarantee shall be incontestable in the hands of a holder of the guaranteed loan.</text></subsection> <subsection id="H412EACC98C4648C7A6EDE716D6FB9CE"><enum>(j)</enum><header>Reports</header><text>Until each guaranteed loan under this section has been repaid in full, the Secretary shall annually submit to Congress a report on the activities of the Secretary under this section.</text></subsection> <subsection id="H2843ABD40B2847048E8B9308E698AE83"><enum>(k)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated such sums as are necessary to carry out this section.</text></subsection> <subsection id="HAB4E63D7216E4A2BB3CAEA0056DEF000"><enum>(l)</enum><header>Termination of authority</header><text>The authority of the Secretary to issue a loan guarantee under subsection (b) terminates on the date that is 10 years after the date of enactment of this Act.</text></subsection></section> <section id="H6A26E9CBEFE14FCE92C5076CD1938EE2"><enum>1512.</enum><header>Resource Center</header> <subsection id="H7E84FC5F3BC8450C8687B1F539DCDEF"><enum>(a)</enum><header>Definition</header><text>In this section, the term <term>RFG State</term> means a State in which is located one or more covered areas (as defined in section 211(k)(10)(D) of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(k)(10)(D)</external-xref>).</text></subsection> <subsection id="H5361EEC6D54F4CB99E9000A0EBB45B03"><enum>(b)</enum><header>Authorization of appropriations for resource Center</header><text>There are authorized to be appropriated, for a resource center to further develop bioconversion technology using low-cost biomass for the production of ethanol at the Center for Biomass-Based Energy at the University of Mississippi and the University of Oklahoma, $4,000,000 for each of fiscal years 2004 through 2006.</text></subsection> <subsection id="H05A28D6CBAFC4988AD90AF1A183CD00"><enum>(c)</enum><header>Renewable fuel production research and development grants</header> <paragraph id="H10888C441CAB44F49FC442B959230925"><enum>(1)</enum><header>In general</header><text>The Administrator of the Environmental Protection Agency shall provide grants for the research into, and development and implementation of, renewable fuel production technologies in RFG States with low rates of ethanol production, including low rates of production of cellulosic biomass ethanol.</text></paragraph> <paragraph id="H9A6D851F549E4E90B39120988F347D20"><enum>(2)</enum><header>Eligibility</header> <subparagraph id="H485698AEDB8A4AFAA15EBB350103494E"><enum>(A)</enum><header>In general</header><text>The entities eligible to receive a grant under this subsection are academic institutions in RFG States, and consortia made up of combinations of academic institutions, industry, State government agencies, or local government agencies in RFG States, that have proven experience and capabilities with relevant technologies.</text></subparagraph> <subparagraph id="H1F5B8BBEE4154C0788C72F1C2B850032"><enum>(B)</enum><header>Application</header><text>To be eligible to receive a grant under this subsection, an eligible entity shall submit to the Administrator an application in such manner and form, and accompanied by such information, as the Administrator may specify.</text></subparagraph></paragraph> <paragraph id="HCEF81AC3CB74443D8D951C6467258986"><enum>(3)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated to carry out this subsection $25,000,000 for each of fiscal years 2004 through 2008.</text></paragraph></subsection></section> <section id="H1895D536257C4204A4DBDA62067D65BD"><enum>1513.</enum><header>Cellulosic biomass and waste-derived ethanol conversion assistance</header><text display-inline="no-display-inline">Section 211 of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545</external-xref>) is amended by adding at the end the following:</text> <quoted-block act-name="Clean Air Act" id="H47F9778A3CB14DBD815069108767C138"> <subsection id="H6CCB64DC7F4D4C7FB270B8D343FA332B"><enum>(r)</enum><header>Cellulosic biomass and waste-derived ethanol conversion assistance</header> <paragraph id="HB2CBC738C14841CA8DF1007BA7617BF3"><enum>(1)</enum><header>In general</header><text>The Secretary of Energy may provide grants to merchant producers of cellulosic biomass ethanol and waste-derived ethanol in the United States to assist the producers in building eligible production facilities described in paragraph (2) for the production of ethanol.</text></paragraph> <paragraph id="HC2D5719D8E424A518CC41BD256A0EFC7"><enum>(2)</enum><header>Eligible production facilities</header><text>A production facility shall be eligible to receive a grant under this subsection if the production facility—</text> <subparagraph id="H0BF69C64FF57404E96D75BAF216C3F5E"><enum>(A)</enum><text>is located in the United States; and</text></subparagraph> <subparagraph id="H79BE9CEA6958404BAFD5F5175450DC24"><enum>(B)</enum><text>uses cellulosic biomass or waste-derived feedstocks derived from agricultural residues, municipal solid waste, or agricultural byproducts as that term is used in section 919 of the Energy Policy Act of 2003.</text></subparagraph></paragraph> <paragraph id="HC0FCFCC3B8B04DEAA9C886753ED377E2"><enum>(3)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated the following amounts to carry out this subsection:</text> <subparagraph id="HE3C8A5931E37455A8EAD264B625364FE"><enum>(A)</enum><text>$100,000,000 for fiscal year 2004.</text></subparagraph> <subparagraph id="HDB8FA328B7F9480AABEC8D104E949800"><enum>(B)</enum><text>$250,000,000 for fiscal year 2005.</text></subparagraph> <subparagraph id="H6975288C9C2544DBB75B00FA5F4854C9"><enum>(C)</enum><text>$400,000,000 for fiscal year 2006.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HE39B1CF2909C4C7BADE45504F5756C67"><enum>1514.</enum><header>Blending of compliant reformulated gasolines</header><text display-inline="no-display-inline">Section 211 of the <act-name parsable-cite="CAA">Clean Air Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545</external-xref>) is amended by adding at the end the following:</text> <quoted-block act-name="Clean Air Act" id="H8586DA86E1CE444C9C8CA52D1CDD1C5E"> <subsection id="H65A9577F59FB4444BA9976008DA64242"><enum>(s)</enum><header>Blending of compliant reformulated gasolines</header> <paragraph id="H354B7F1F00EF4FCCA5514E61AC125358"><enum>(1)</enum><header>In general</header><text>Notwithstanding subsections (h) and (k) and subject to the limitations in paragraph (2) of this subsection, it shall not be a violation of this subtitle for a gasoline retailer, during any month of the year, to blend at a retail location batches of ethanol-blended and non-ethanol-blended reformulated gasoline, provided that—</text> <subparagraph id="H52BF2837683B47BABFFAA8585879DE84"><enum>(A)</enum><text>each batch of gasoline to be blended has been individually certified as in compliance with subsections (h) and (k) prior to being blended;</text></subparagraph> <subparagraph id="H17F309D33CB547D299B606A6C602DE1"><enum>(B)</enum><text>the retailer notifies the Administrator prior to such blending, and identifies the exact location of the retail station and the specific tank in which such blending will take place;</text></subparagraph> <subparagraph id="H39A0208D8DA44461BDEE38B50000AC73"><enum>(C)</enum><text>the retailer retains and, as requested by the Administrator or the Administrator’s designee, makes available for inspection such certifications accounting for all gasoline at the retail outlet; and</text></subparagraph> <subparagraph id="H93B3861937F844338C136F6E26C7679"><enum>(D)</enum><text>the retailer does not, between June 1 and September 15 of each year, blend a batch of VOC-controlled, or <quote>summer</quote>, gasoline with a batch of non-VOC-controlled, or <quote>winter</quote>, gasoline (as these terms are defined under subsections (h) and (k)).</text></subparagraph></paragraph> <paragraph indent="up1" id="H6BDEE1367D36446BB19BBA63AA08962"><enum>(2)</enum><header>Limitations</header> <subparagraph id="H57CA75D26F5A4700A3011D373D11591D"><enum>(A)</enum><header>Frequency limitation</header><text>A retailer shall only be permitted to blend batches of compliant reformulated gasoline under this subsection a maximum of two blending periods between May 1 and September 15 of each calendar year.</text></subparagraph> <subparagraph id="HF95A4B0EEF484E75BDEB6DAEE324EA00"><enum>(B)</enum><header>Duration of blending period</header><text>Each blending period authorized under subparagraph (A) shall extend for a period of no more than 10 consecutive calendar days.</text></subparagraph></paragraph> <paragraph id="HA5C36A7CB97545C79FB6EC00F8F89153"><enum>(3)</enum><header>Surveys</header><text>A sample of gasoline taken from a retail location that has blended gasoline within the past 30 days and is in compliance with subparagraphs (A), (B), (C), and (D) of paragraph (1) shall not be used in a VOC survey mandated by 40 C.F.R. Part 80.</text></paragraph> <paragraph id="H033BB7B7D65843C4A4268223C34BC6DA"><enum>(4)</enum><header>State implementation plans</header><text>A State shall be held harmless and shall not be required to revise its State implementation plan under section 110 to account for the emissions from blended gasoline authorized under paragraph (1).</text></paragraph> <paragraph id="HD85E3AFA806E444EA55852E80A3C4BC"><enum>(5)</enum><header>Preservation of State law</header><text>Nothing in this subsection shall—</text> <subparagraph id="HE6EE6714EF2644C28700587D27B69CDC"><enum>(A)</enum><text>preempt existing State laws or regulations regulating the blending of compliant gasolines; or</text></subparagraph> <subparagraph id="HC41951B4690B495F8F3B8265F0781700"><enum>(B)</enum><text>prohibit a State from adopting such restrictions in the future.</text></subparagraph></paragraph> <paragraph id="H125C0BC45E7B4A39B8818ED9007FC580"><enum>(6)</enum><header>Regulations</header><text>The Administrator shall promulgate, after notice and comment, regulations implementing this subsection within one year after the date of enactment of this subsection.</text></paragraph> <paragraph id="H2362929DDDB74FFABBE2A6EEBF8FC85"><enum>(7)</enum><header>Effective date</header><text>This subsection shall become effective 15 months after the date of its enactment and shall apply to blended batches of reformulated gasoline on or after that date, regardless of whether the implementing regulations required by paragraph (6) have been promulgated by the Administrator by that date.</text></paragraph> <paragraph id="HD88476CA85E2425C9FE22C1CC76B3818"><enum>(8)</enum><header>Liability</header><text>No person other than the person responsible for blending under this subsection shall be subject to an enforcement action or penalties under subsection (d) solely arising from the blending of compliant reformulated gasolines by the retailers.</text></paragraph> <paragraph id="HB1EDC78FA97D413AB575A261946E56AE"><enum>(9)</enum><header>Formulation of gasoline</header><text>This subsection does not grant authority to the Administrator or any State (or any subdivision thereof) to require reformulation of gasoline at the refinery to adjust for potential or actual emissions increases due to the blending authorized by this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section></subtitle> <subtitle id="HA811D60F1BC8407CB84D4CD3F2380673"><enum>B</enum><header>Underground storage tank compliance</header> <section id="H461AE83198C740768DAF5718C2691CB8"><enum>1521.</enum><header>Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the <quote><short-title>Underground Storage Tank Compliance Act of 2004</short-title></quote>.</text></section> <section id="H8C67BA897E7841F49FD8D32973F53661"><enum>1522.</enum><header>Leaking underground storage tanks</header> <subsection id="HEB1CCF77E39E462BAA8789138FC513B"><enum>(a)</enum><header>In general</header><text>Section 9004 of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6991c">42 U.S.C. 6991c</external-xref>) is amended by adding at the end the following:</text> <quoted-block act-name="Solid Waste Disposal Act" id="H7B39765E67AB44E0AAB2E1000000033D"> <subsection id="H3293285F8B164A5DB9AB34E3DA70A03C"><enum>(f)</enum><header>Trust Fund distribution</header> <paragraph id="H01DCB2D2651747DB97CE172D7CB45B65"><enum>(1)</enum><header>In general</header> <subparagraph id="H3F583812E31847D0B715F32BC0A17EE3"><enum>(A)</enum><header>Amount and permitted uses of distribution</header><text>The Administrator shall distribute to States not less than 80 percent of the funds from the Trust Fund that are made available to the Administrator under section 9014(2)(A) for each fiscal year for use in paying the reasonable costs, incurred under a cooperative agreement with any State for—</text> <clause id="H86FAFB9CAA9F4D2AAEBC4E39C3C64080"><enum>(i)</enum><text>actions taken by the State under section 9003(h)(7)(A);</text></clause> <clause id="H6BAF74ECF9D5440992634C89BE9D2209"><enum>(ii)</enum><text>necessary administrative expenses, as determined by the Administrator, that are directly related to State fund or State assurance programs under subsection (c)(1);</text></clause> <clause id="H2A1A160D56654B8A8E94F100257E13AF"><enum>(iii)</enum><text>any State fund or State assurance program carried out under subsection (c)(1) for a release from an underground storage tank regulated under this subtitle to the extent that, as determined by the State in accordance with guidelines developed jointly by the Administrator and the States, the financial resources of the owner and operator of the underground storage tank (including resources provided by a program in accordance with subsection (c)(1)) are not adequate to pay the cost of a corrective action without significantly impairing the ability of the owner or operator to continue in business; or</text></clause> <clause id="H1753CCFA7C10413BAD56EF5C5D305104"><enum>(iv)</enum><text>enforcement, by a State or a local government, of State or local regulations pertaining to underground storage tanks regulated under this subtitle.</text></clause></subparagraph> <subparagraph id="H9F3B700CC3B844D7B24C775C948C2B6E"><enum>(B)</enum><header>Use of funds for enforcement</header><text>In addition to the uses of funds authorized under subparagraph (A), the Administrator may use funds from the Trust Fund that are not distributed to States under subparagraph (A) for enforcement of any regulation promulgated by the Administrator under this subtitle.</text></subparagraph> <subparagraph id="HA163D44D671549909F8C708869F74E20"><enum>(C)</enum><header>Prohibited uses</header><text>Funds provided to a State by the Administrator under subparagraph (A) shall not be used by the State to provide financial assistance to an owner or operator to meet any requirement relating to underground storage tanks under subparts B, C, D, H, and G of part 280 of title 40, Code of Federal Regulations (as in effect on the date of enactment of this subsection).</text></subparagraph></paragraph> <paragraph id="H155452B85E77423FA5A7DA076D48987"><enum>(2)</enum><header>Allocation</header> <subparagraph id="H69BBE250E37A4F038C08AD5855FF93E8"><enum>(A)</enum><header>Process</header><text>Subject to subparagraphs (B) and (C), in the case of a State with which the Administrator has entered into a cooperative agreement under section 9003(h)(7)(A), the Administrator shall distribute funds from the Trust Fund to the State using an allocation process developed by the Administrator.</text></subparagraph> <subparagraph id="H6A3D0B703CE14B87A75B5800384B6C6B"><enum>(B)</enum><header>Diversion of State funds</header><text>The Administrator shall not distribute funds under subparagraph (A)(iii) of subsection (f)(1) to any State that has diverted funds from a State fund or State assurance program for purposes other than those related to the regulation of underground storage tanks covered by this subtitle, with the exception of those transfers that had been completed earlier than the date of enactment of this subsection.</text></subparagraph> <subparagraph id="H5522C874248C45B3911E682CEB838805"><enum>(C)</enum><header>Revisions to process</header><text>The Administrator may revise the allocation process referred to in subparagraph (A) after—</text> <clause id="H398BF4601A884AD782B381EFB06DD508"><enum>(i)</enum><text>consulting with State agencies responsible for overseeing corrective action for releases from underground storage tanks; and</text></clause> <clause id="H28D1C33F02F54381BF6BB3CB20692B27"><enum>(ii)</enum><text>taking into consideration, at a minimum, each of the following:</text> <subclause id="H54250BC675024027B400522DA74F35C1"><enum>(I)</enum><text>The number of confirmed releases from federally regulated leaking underground storage tanks in the States.</text></subclause> <subclause id="H522845D6624B4D818E3DEC8327E432A5"><enum>(II)</enum><text>The number of federally regulated underground storage tanks in the States.</text></subclause> <subclause id="H536DD4035D774C42A4CAA49595AB8C97"><enum>(III)</enum><text>The performance of the States in implementing and enforcing the program.</text></subclause> <subclause id="H2C434535904B42439170B18143959B00"><enum>(IV)</enum><text>The financial needs of the States.</text></subclause> <subclause id="HF2992C6920244D5A92547D184827D7D1"><enum>(V)</enum><text>The ability of the States to use the funds referred to in subparagraph (A) in any year.</text></subclause></clause></subparagraph></paragraph> <paragraph id="HF21E0B7ABED7416795DF93B1BAA78FD"><enum>(3)</enum><header>Distributions to State agencies</header><text>Distributions from the Trust Fund under this subsection shall be made directly to a State agency that—</text> <subparagraph id="HB06430C9E5384D95AF004FE947133B2E"><enum>(A)</enum><text>enters into a cooperative agreement referred to in paragraph (2)(A); or</text></subparagraph> <subparagraph id="HE9E70C84BEA84C518B8171BAFEA59080"><enum>(B)</enum><text>is enforcing a State program approved under this section.</text></subparagraph></paragraph> <paragraph id="HC1325BE766434553B9D3BA4800338756"><enum>(4)</enum><header>Cost recovery prohibition</header><text>Funds from the Trust Fund provided by States to owners or operators under paragraph (1)(A)(iii) shall not be subject to cost recovery by the Administrator under section 9003(h)(6).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HB2720ED3391F4877BB3340CE552C723D"><enum>(b)</enum><header>Withdrawal of approval of State funds</header><text>Section 9004(c) of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6991c">42 U.S.C. 6991c(c)</external-xref>) is amended by inserting the following new paragraph at the end thereof:</text> <quoted-block act-name="Solid Waste Disposal Act" id="H92E6322E9A7E4303A53D18D0FFCAD442"> <paragraph id="H16054638655746AE98CFFC3C83D93042"><enum>(6)</enum><header>Withdrawal of approval</header><text>After an opportunity for good faith, collaborative efforts to correct financial deficiencies with a State fund, the Administrator may withdraw approval of any State fund or State assurance program to be used as a financial responsibility mechanism without withdrawing approval of a State underground storage tank program under section 9004(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="H10400FB078594DC5B85DBC77F7BB5CD1"><enum>1523.</enum><header>Inspection of underground storage tanks</header> <subsection id="H7A2EEF894D4547378F738341699CF86F"><enum>(a)</enum><header>Inspection requirements</header><text>Section 9005 of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6991d">42 U.S.C. 6991d</external-xref>) is amended by inserting the following new subsection at the end thereof:</text> <quoted-block act-name="Solid Waste Disposal Act" id="H40D66DA1F06143D6889D77829D00F000"> <subsection id="H4F05511D45504A3F97B43320315996DE"><enum>(c)</enum><header>Inspection requirements</header> <paragraph id="H8B123B677F334984BCE89C112B8577D6"><enum>(1)</enum><header>Uninspected tanks</header><text>In the case of underground storage tanks regulated under this subtitle that have not undergone an inspection since December 22, 1998, not later than 2 years after the date of enactment of this subsection, the Administrator or a State that receives funding under this subtitle, as appropriate, shall conduct on-site inspections of all such tanks to determine compliance with this subtitle and the regulations under this subtitle (40 C.F.R. 280) or a requirement or standard of a State program developed under section 9004.</text></paragraph> <paragraph id="H8AAA3A2FAFB84303A3B8C63244EA689D"><enum>(2)</enum><header>Periodic inspections</header><text>After completion of all inspections required under paragraph (1), the Administrator or a State that receives funding under this subtitle, as appropriate, shall conduct on-site inspections of each underground storage tank regulated under this subtitle at least once every 3 years to determine compliance with this subtitle and the regulations under this subtitle (40 C.F.R. 280) or a requirement or standard of a State program developed under section 9004. The Administrator may extend for up to one additional year the first 3-year inspection interval under this paragraph if the State demonstrates that it has insufficient resources to complete all such inspections within the first 3-year period.</text></paragraph> <paragraph id="H5719D5172A704908A5A78358471B4008"><enum>(3)</enum><header>Inspection authority</header><text>Nothing in this section shall be construed to diminish the Administrator’s or a State’s authorities under section 9005(a).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HCD3A6F358DAD4D24ADC460F037EE229"><enum>(b)</enum><header>Study of alternative inspection programs</header><text>The Administrator of the Environmental Protection Agency, in coordination with a State, shall gather information on compliance assurance programs that could serve as an alternative to the inspection programs under section 9005(c) of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6991d">42 U.S.C. 6991d(c)</external-xref>) and shall, within 4 years after the date of enactment of this Act, submit a report to the Congress containing the results of such study.</text></subsection></section> <section id="H5702A7B077B249FE9B53B700E042EBC7"><enum>1524.</enum><header>Operator training</header> <subsection id="H979A82E0EA6947DC9BDCC0DC99CAAF56"><enum>(a)</enum><header>In general</header><text>Section 9010 of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6991i">42 U.S.C. 6991i</external-xref>) is amended to read as follows:</text> <quoted-block act-name="Solid Waste Disposal Act" id="H4B1E7F6EAF6D4ADEB013B4F405C02E0"> <section id="HDE09F45DBE4D417EB5951E14D2B34D32"><enum>9010.</enum><header>Operator training</header> <subsection id="H9263C86BBCCD4D8FA08E6B72DDEA98E8"><enum>(a)</enum><header>Guidelines</header> <paragraph id="HC975F17C684A4892ACBAC9BA3AA576D"><enum>(1)</enum><header>In general</header><text>Not later than 2 years after the date of enactment of the <short-title>Underground Storage Tank Compliance Act of 2004</short-title>, in consultation and cooperation with States and after public notice and opportunity for comment, the Administrator shall publish guidelines that specify training requirements for persons having primary daily on-site management responsibility for the operation and maintenance of underground storage tanks.</text></paragraph> <paragraph id="HD955BCB63B0347C99336AE678F332CB"><enum>(2)</enum><header>Considerations</header><text>The guidelines described in paragraph (1) shall take into account—</text> <subparagraph id="HF08E3E4876B64855B972C887B0AAC026"><enum>(A)</enum><text>State training programs in existence as of the date of publication of the guidelines;</text></subparagraph> <subparagraph id="H4D091102BC5149469DCEE36EA842D"><enum>(B)</enum><text>training programs that are being employed by tank owners and tank operators as of the date of enactment of the <short-title>Underground Storage Tank Compliance Act of 2004</short-title>;</text></subparagraph> <subparagraph id="H6B56C2D20EAB408DB0047DF8FEB68F4"><enum>(C)</enum><text>the high turnover rate of tank operators and other personnel;</text></subparagraph> <subparagraph id="H844CC4C02FCD43F4AF35B3EDDBEA17E"><enum>(D)</enum><text>the frequency of improvement in underground storage tank equipment technology;</text></subparagraph> <subparagraph id="H4D96246C6ACA46CB809D057FD283969F"><enum>(E)</enum><text>the nature of the businesses in which the tank operators are engaged; and</text></subparagraph> <subparagraph id="HDE05A55C2F8F4A10A476793015D99F77"><enum>(F)</enum><text>such other factors as the Administrator determines to be necessary to carry out this section.</text></subparagraph></paragraph></subsection> <subsection id="HBB8AB8F154BF48CDA7F607AC05E83434"><enum>(b)</enum><header>State programs</header> <paragraph id="H4ABAD10B93FB4E38B4E1A8C0C0B4A970"><enum>(1)</enum><header>In general</header><text>Not later than 2 years after the date on which the Administrator publishes the guidelines under subsection (a)(1), each State that receives funding under this subtitle shall develop State-specific training requirements that are consistent with the guidelines developed under subsection (a)(1).</text></paragraph> <paragraph id="HA9FD63C53A8D4203AD43D3BF47F05311"><enum>(2)</enum><header>Requirements</header><text>State requirements described in paragraph (1) shall—</text> <subparagraph id="HE143A652021E4916A6CD1E52CFD40B7"><enum>(A)</enum><text>be consistent with subsection (a);</text></subparagraph> <subparagraph id="H22AB732D078A4DA7A302B28CC4CE8540"><enum>(B)</enum><text>be developed in cooperation with tank owners and tank operators;</text></subparagraph> <subparagraph id="H4151D20C6F7E4761A0134FCC8150A568"><enum>(C)</enum><text>take into consideration training programs implemented by tank owners and tank operators as of the date of enactment of this section; and</text></subparagraph> <subparagraph id="H922BDBE0C3BF478BB2B39D4F2B53E37E"><enum>(D)</enum><text>be appropriately communicated to tank owners and operators.</text></subparagraph></paragraph> <paragraph id="HA1DC3D6418A24E22AFF4AF6F10ED8B35"><enum>(3)</enum><header>Financial incentive</header><text>The Administrator may award to a State that develops and implements requirements described in paragraph (1), in addition to any funds that the State is entitled to receive under this subtitle, not more than $200,000, to be used to carry out the requirements.</text></paragraph></subsection> <subsection id="HB77831D863024FD386302D166BF0FE87"><enum>(c)</enum><header>Operators</header><text>All persons having primary daily on-site management responsibility for the operation and maintenance of any underground storage tank shall—</text> <paragraph id="HEBAC81E1431340249E51EC76DA53848E"><enum>(1)</enum><text>meet the training requirements developed under subsection (b); and</text></paragraph> <paragraph id="H9FC02B03FFEA46558D0008C93EC1C99E"><enum>(2)</enum><text>repeat the applicable requirements developed under subsection (b), if the tank for which they have primary daily on-site management responsibilities is determined to be out of compliance with—</text> <subparagraph id="H38009C60E3DD43E08D50E4613BB0C5C0"><enum>(A)</enum><text>a requirement or standard promulgated by the Administrator under section 9003; or</text></subparagraph> <subparagraph id="H806ADD20F12F4A799195DA27845D6000"><enum>(B)</enum><text>a requirement or standard of a State program approved under section 9004.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H9A948B6117204D3CB9470072A507E78F"><enum>(b)</enum><header>State program requirement</header><text>Section 9004(a) of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6991c">42 U.S.C. 6991c(a)</external-xref>) is amended by striking <quote>and</quote> at the end of paragraph (7), by striking the period at the end of paragraph (8) and inserting <quote>; and</quote>, and by adding the following new paragraph at the end thereof:</text> <quoted-block act-name="Solid Waste Disposal Act" id="HFA67B4B19D2A4EC7B5F7294E3B493D39"> <paragraph id="HF0C4829FCEDE4903AB91A5BC97FAD9D"><enum>(9)</enum><text>State-specific training requirements as required by section 9010.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HAF3740BF695C4746A716F1D745C7B2E9"><enum>(c)</enum><header>Enforcement</header><text>Section 9006(d)(2) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6991e">42 U.S.C. 6991e</external-xref>) is amended as follows:</text> <paragraph id="HBCC94C4DDFC44A52B4C32E11066126D3"><enum>(1)</enum><text>By striking <quote>or</quote> at the end of subparagraph (B).</text></paragraph> <paragraph id="H26054C4580B84F45BA676D38E3EF94D1"><enum>(2)</enum><text>By adding the following new subparagraph after subparagraph (C):</text> <quoted-block id="HFF990C002E2A4F1BA59E3B90EF42E756"> <subparagraph indent="up1" id="H1C64500AB8CD4269BE3C025300E11201"><enum>(D)</enum><text>the training requirements established by States pursuant to section 9010 (relating to operator training); or</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="HAC58FCA5F9CD4C388250C663C5F712B0"><enum>(d)</enum><header>Table of contents</header><text>The item relating to section 9010 in table of contents for the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> is amended to read as follows:</text> <quoted-block style="OLC" act-name="Solid Waste Disposal Act" id="H1903E0D3DFD3453FBDA9FBC805F0CA64"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 9010. Operator training</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="H0153D7969B334E989CF639407E557523"><enum>1525.</enum><header>Remediation from oxygenated fuel additives</header><text display-inline="no-display-inline">Section 9003(h) of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6991b">42 U.S.C. 6991b(h)</external-xref>) is amended as follows:</text> <paragraph id="H81C5018E3F504E2F8B2F6CBD4EE5FD31"><enum>(1)</enum><text>In paragraph (7)(A)—</text> <subparagraph id="HBBFE21819B44448E95EB7C191ED7965E"><enum>(A)</enum><text>by striking <quote>paragraphs (1) and (2) of this subsection</quote> and inserting <quote>paragraphs (1), (2), and (12)</quote> ; and</text></subparagraph> <subparagraph id="H87398FA7AD7D414FA983E06F4BD4457"><enum>(B)</enum><text>by striking <quote>and including the authorities of paragraphs (4), (6), and (8) of this subsection</quote> and inserting <quote>and the authority under sections 9011 and 9012 and paragraphs (4), (6), and (8),</quote>.</text></subparagraph></paragraph> <paragraph id="HE42CD278F466486ABFFA81346C45C3C"><enum>(2)</enum><text>By adding at the end the following:</text> <quoted-block id="H2E1EAAB90CB349E18ED3F4C22918F2DB"> <paragraph id="H482DB3D46B214CD49714F4E82B7B486"><enum>(12)</enum><header>Remediation of oxygenated fuel contamination</header> <subparagraph id="HE2DCE5A9D0CB4D6786B36C4D861C458"><enum>(A)</enum><header>In general</header><text>The Administrator and the States may use funds made available under section 9014(2)(B) to carry out corrective actions with respect to a release of a fuel containing an oxygenated fuel additive that presents a threat to human health or welfare or the environment.</text></subparagraph> <subparagraph id="H4C3106082A15420CBF5031C02076F4A6"><enum>(B)</enum><header>Applicable authority</header><text>The Administrator or a State shall carry out subparagraph (A) in accordance with paragraph (2), and in the case of a State, in accordance with a cooperative agreement entered into by the Administrator and the State under paragraph (7).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="HDB2ACFEC4D6F4931868F9EAF683F705B"><enum>1526.</enum><header>Release prevention, compliance, and enforcement</header> <subsection id="H741B52DF12904685AF6B73A3AA291B32"><enum>(a)</enum><header>Release prevention and compliance</header><text>Subtitle I of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6991">42 U.S.C. 6991 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block act-name="Solid Waste Disposal Act" id="H44E640F977674914907381609D1C4BA6"> <section id="HA9662C3D6CD742BDACB0DC5D3481BFB1"><enum>9011.</enum><header>Use of funds for release prevention and compliance</header><text display-inline="no-display-inline">Funds made available under section 9014(2)(D) from the Trust Fund may be used to conduct inspections, issue orders, or bring actions under this subtitle—</text> <paragraph id="H21A74D7C698B4A949B4B22D2D78E7702"><enum>(1)</enum><text>by a State, in accordance with a grant or cooperative agreement with the Administrator, of State regulations pertaining to underground storage tanks regulated under this subtitle; and</text></paragraph> <paragraph id="H44DCAA02603C44D194E1CEE7048020FA"><enum>(2)</enum><text>by the Administrator, for tanks regulated under this subtitle (including under a State program approved under section 9004).</text></paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H6AEE71742FE94D48BB73D81B89F3215E"><enum>(b)</enum><header>Government-owned tanks</header><text>Section 9003 of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6991b">42 U.S.C. 6991b</external-xref>) is amended by adding at the end the following:</text> <quoted-block act-name="Solid Waste Disposal Act" id="HF28C1B906F87457E895B73A0CC000303"> <subsection id="HE4C0A8ED79204F45A01705BEB0512E99"><enum>(i)</enum><header>Government-owned tanks</header> <paragraph id="H4D3C8FA1F7724C36859D612B8900565B"><enum>(1)</enum><header>State compliance report</header> <subparagraph display-inline="yes-display-inline" id="HC3BA8E537B6D4CFF004B45954D462B69"><enum>(A)</enum><text>Not later than 2 years after the date of enactment of this subsection, each State that receives funding under this subtitle shall submit to the Administrator a State compliance report that—</text> <clause indent="up1" id="H8269C889DC1F43C39CBFD7B1E5A9C1EE"><enum>(i)</enum><text>lists the location and owner of each underground storage tank described in subparagraph (B) in the State that, as of the date of submission of the report, is not in compliance with section 9003; and</text></clause> <clause indent="up1" id="H5C29142893DE46E3956B49D08035D059"><enum>(ii)</enum><text>specifies the date of the last inspection and describes the actions that have been and will be taken to ensure compliance of the underground storage tank listed under clause (i) with this subtitle.</text></clause></subparagraph> <subparagraph indent="up1" id="H7B07DC663CFC4BF49C9EBF931BE347CD"><enum>(B)</enum><text>An underground storage tank described in this subparagraph is an underground storage tank that is—</text> <clause id="HDF3B44CFFAAF4C9284E5CFD9D703E65F"><enum>(i)</enum><text>regulated under this subtitle; and</text></clause> <clause id="H98F109F9EFF84E10959045A2E858295D"><enum>(ii)</enum><text>owned or operated by the Federal, State, or local government.</text></clause></subparagraph> <subparagraph indent="up1" id="H2D0190CF37B64A75B6A11F59A2C70293"><enum>(C)</enum><text>The Administrator shall make each report, received under subparagraph (A), available to the public through an appropriate media.</text></subparagraph></paragraph> <paragraph id="H46ACCA57982B493D886B50358C9E7484"><enum>(2)</enum><header>Financial incentive</header><text>The Administrator may award to a State that develops a report described in paragraph (1), in addition to any other funds that the State is entitled to receive under this subtitle, not more than $50,000, to be used to carry out the report.</text></paragraph> <paragraph id="H447B349A5A4C40CF9B502C772726DB16"><enum>(3)</enum><header>Not a safe harbor</header><text>This subsection does not relieve any person from any obligation or requirement under this subtitle.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HB078A9BE7F744660008523ABC7DE46AC"><enum>(c)</enum><header>Public record</header><text>Section 9002 of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6991a">42 U.S.C. 6991a</external-xref>) is amended by adding at the end the following:</text> <quoted-block act-name="Solid Waste Disposal Act" id="H4F88B417203A4B09821F09E2539EC353"> <subsection id="HAF56F733620B42178D301392072DDCC6"><enum>(d)</enum><header>Public record</header> <paragraph id="HAF310A1674A34B3EAA4438CC3045FDE1"><enum>(1)</enum><header>In general</header><text>The Administrator shall require each State that receives Federal funds to carry out this subtitle to maintain, update at least annually, and make available to the public, in such manner and form as the Administrator shall prescribe (after consultation with States), a record of underground storage tanks regulated under this subtitle.</text></paragraph> <paragraph id="H889CC2471D4241EDBB00E0173033EDDC"><enum>(2)</enum><header>Considerations</header><text>To the maximum extent practicable, the public record of a State, respectively, shall include, for each year—</text> <subparagraph id="H9DB6DDEF95C547B7B136ECD00FCD975"><enum>(A)</enum><text>the number, sources, and causes of underground storage tank releases in the State;</text></subparagraph> <subparagraph id="H378FA579129E4C06B301FCF176E453DA"><enum>(B)</enum><text>the record of compliance by underground storage tanks in the State with—</text> <clause id="HC79300A8D4D84B589EDF8422B00644C"><enum>(i)</enum><text>this subtitle; or</text></clause> <clause id="H229ED55B76B44112886C006391EDFC28"><enum>(ii)</enum><text>an applicable State program approved under section 9004; and</text></clause></subparagraph> <subparagraph id="H956E306008C5492CA9BE054E97D00057"><enum>(C)</enum><text>data on the number of underground storage tank equipment failures in the State.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HFDE0EBB8F7374764870019A1F91951A1"><enum>(d)</enum><header>Incentive for performance</header><text>Section 9006 of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6991e">42 U.S.C. 6991e</external-xref>) is amended by adding at the end the following:</text> <quoted-block act-name="Solid Waste Disposal Act" id="H0AE351E9881045EDA6260196AE3D43B2"> <subsection id="H8E7CB3A0CF4744F78672DFBE71AAF42D"><enum>(e)</enum><header>Incentive for performance</header><text>Both of the following may be taken into account in determining the terms of a civil penalty under subsection (d):</text> <paragraph id="H92EF8DA59CE0401BB759FDDEB62DCABD"><enum>(1)</enum><text>The compliance history of an owner or operator in accordance with this subtitle or a program approved under section 9004.</text></paragraph> <paragraph id="H8C24438C9C8A4051AC9820E0F2941FC6"><enum>(2)</enum><text>Any other factor the Administrator considers appropriate.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HEFE04B60C2B444E1AA00682F19A616D3"><enum>(e)</enum><header>Table of contents</header><text>The table of contents for such subtitle I is amended by adding the following new item at the end thereof:</text> <quoted-block style="OLC" id="H44C452E4258C4BA182BABD8C6C4D6589"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 9011. Use of funds for release prevention and compliance</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="H73CC8E3593D740F6B1767C77655461DA"><enum>1527.</enum><header>Delivery prohibition</header> <subsection id="HE8FB58A8A59A42A7B07ECCB819F5299E"><enum>(a)</enum><header>In general</header><text>Subtitle I of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6991">42 U.S.C. 6991 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block act-name="Solid Waste Disposal Act" id="H6E7B798F8FDD4CC8A3CE5DC2586EDF9"> <section id="H5FB2B295AD714A1CA621053041F50059"><enum>9012.</enum><header>Delivery prohibition</header> <subsection id="H20D7D8B612954180912BCD4423396438"><enum>(a)</enum><header>Requirements</header> <paragraph id="H86242745A9F04B509018C2B392CB3BB4"><enum>(1)</enum><header>Prohibition of delivery or deposit</header><text>Beginning 2 years after the date of enactment of this section, it shall be unlawful to deliver to, deposit into, or accept a regulated substance into an underground storage tank at a facility which has been identified by the Administrator or a State implementing agency to be ineligible for fuel delivery or deposit.</text></paragraph> <paragraph id="H234775EB7DD844E3A1DFBC8237D68574"><enum>(2)</enum><header>Guidance</header><text>Within 1 year after the date of enactment of this section, the Administrator and States that receive funding under this subtitle shall, in consultation with the underground storage tank owner and product delivery industries, for territory for which they are the primary implementing agencies, publish guidelines detailing the specific processes and procedures they will use to implement the provisions of this section. The processes and procedures include, at a minimum—</text> <subparagraph id="H32696F0E09394FBBA7B3F47C316BD67C"><enum>(A)</enum><text>the criteria for determining which underground storage tank facilities are ineligible for delivery or deposit;</text></subparagraph> <subparagraph id="H3DB6A04252D74988966681D53E4FB6CF"><enum>(B)</enum><text>the mechanisms for identifying which facilities are ineligible for delivery or deposit to the underground storage tank owning and fuel delivery industries;</text></subparagraph> <subparagraph id="H362800B0AB0E4FA28E01686F27E01774"><enum>(C)</enum><text>the process for reclassifying ineligible facilities as eligible for delivery or deposit; and</text></subparagraph> <subparagraph id="H6DF7FFA8FF7A4AB9BD7E86B758C4BAA9"><enum>(D)</enum><text>a delineation of, or a process for determining, the specified geographic areas subject to paragraph (4).</text></subparagraph></paragraph> <paragraph id="H683473ED66F549B28B008B93A0BDCFE0"><enum>(3)</enum><header>Delivery prohibition notice</header> <subparagraph id="H879E8FE500D940B7B3DFDFA23E5A600"><enum>(A)</enum><header>Roster</header><text>The Administrator and each State implementing agency that receives funding under this subtitle shall establish within 24 months after the date of enactment of this section a Delivery Prohibition Roster listing underground storage tanks under the Administrator’s or the State’s jurisdiction that are determined to be ineligible for delivery or deposit pursuant to paragraph (2).</text></subparagraph> <subparagraph id="H82AE2591F3494B33A07C36DC4F5E8E58"><enum>(B)</enum><header>Notification</header><text>The Administrator and each State, as appropriate, shall make readily known, to underground storage tank owners and operators and to product delivery industries, the underground storage tanks listed on a Delivery Prohibition Roster by:</text> <clause id="H3A81A3814BC44A0DBB18FDE2C0C95913"><enum>(i)</enum><text>posting such Rosters, including the physical location and street address of each listed underground storage tank, on official web sites and, if the Administrator or the State so chooses, other electronic means;</text></clause> <clause id="H7F609634333743BF8E56DACBB00BE5E"><enum>(ii)</enum><text>updating these Rosters periodically; and</text></clause> <clause id="H7BE17C0B0CE04CAAB4663C1B3D1239B5"><enum>(iii)</enum><text>installing a tamper-proof tag, seal, or other device blocking the fill pipes of such underground storage tanks to prevent the delivery of product into such underground storage tanks.</text></clause></subparagraph> <subparagraph id="HB3BAD4D1320B4A98AA796E00D7AF1FC1"><enum>(C)</enum><header>Roster updates</header><text>The Administrator and the State shall update the Delivery Prohibition Rosters as appropriate, but not less than once a month on the first day of the month.</text></subparagraph> <subparagraph id="HABF498969DCB4798BF87285B312BC57B"><enum>(D)</enum><header>Tampering with device</header> <clause id="H6D6750FEF0234AD18D5DE637C3CBD8E"><enum>(i)</enum><header>Prohibition</header><text>It shall be unlawful for any person, other than an authorized representative of the Administrator or a State, as appropriate, to remove, tamper with, destroy, or damage a device installed by the Administrator or a State, as appropriate, under subparagraph (B)(iii) of this subsection.</text></clause> <clause id="HFE560C4F3ABB4CA685EE09A210E989A3"><enum>(ii)</enum><header>Civil penalties</header><text>Any person violating clause (i) of this subparagraph shall be subject to a civil penalty not to exceed $10,000 for each violation.</text></clause></subparagraph></paragraph> <paragraph id="HF298B75DFBD54D5D9827F96FBBB06972"><enum>(4)</enum><header>Limitation</header> <subparagraph id="H0775E43314314332B06EAC4FC2854C6C"><enum>(A)</enum><header>Rural and remote areas</header><text>Subject to subparagraph (B), the Administrator or a State shall not include an underground storage tank on a Delivery Prohibition Roster under paragraph (3) if an urgent threat to public health, as determined by the Administrator, does not exist and if such a delivery prohibition would jeopardize the availability of, or access to, fuel in any rural and remote areas.</text></subparagraph> <subparagraph id="H1BD59DF9C2864B889481C820DBFC1775"><enum>(B)</enum><header>Applicability of limitation</header><text>The limitation under subparagraph (A) shall apply only during the 180-day period following the date of a determination by the Administrator or the appropriate State that exercising the authority of paragraph (3) is limited by subparagraph (A).</text></subparagraph></paragraph></subsection> <subsection id="H1B400EE5C6F546F89DE5432E288EBB72"><enum>(b)</enum><header>Effect on State authority</header><text>Nothing in this section shall affect the authority of a State to prohibit the delivery of a regulated substance to an underground storage tank.</text></subsection> <subsection id="HBE92E215D98D4F31BED4008547AD896D"><enum>(c)</enum><header>Defense to violation</header><text>A person shall not be in violation of subsection (a)(1) if the underground storage tank into which a regulated substance is delivered is not listed on the Administrator’s or the appropriate State’s Prohibited Delivery Roster 7 calendar days prior to the delivery being made.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="H3C7E4E5044624C90AB98D9F2B585E9FA"><enum>(b)</enum><header>Enforcement</header><text>Section 9006(d)(2) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6991e">42 U.S.C. 6991e(d)(2)</external-xref>) is amended as follows:</text> <paragraph id="HF5138679D0604884BCDABD4E597BB110"><enum>(1)</enum><text>By adding the following new subparagraph after subparagraph (D):</text> <quoted-block id="H5B0938917E314015945F377FB980094"> <subparagraph indent="up1" id="H87466F61DB1C45A2B8B97D1B2D9D1966"><enum>(E)</enum><text>the delivery prohibition requirement established by section 9012,</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HFCF8A5FD58FC45E58D5E6FF3AF14E1AC"><enum>(2)</enum><text>By adding the following new sentence at the end thereof: <quote>Any person making or accepting a delivery or deposit of a regulated substance to an underground storage tank at an ineligible facility in violation of section 9012 shall also be subject to the same civil penalty for each day of such violation.</quote>.</text></paragraph></subsection> <subsection id="H2A088A800CD64EDB9389DCD348F46BF1"><enum>(c)</enum><header>Table of contents</header><text>The table of contents for such subtitle I is amended by adding the following new item at the end thereof:</text> <quoted-block style="OLC" id="HAE79A25770E1478AA39254F564A09510"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 9012. Delivery prohibition</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="HE58F7041EEE34BDE0086E1BA4EB44D90"><enum>1528.</enum><header>Federal facilities</header><text display-inline="no-display-inline">Section 9007 of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6991f">42 U.S.C. 6991f</external-xref>) is amended to read as follows:</text> <quoted-block act-name="Solid Waste Disposal Act" id="HB52326B6FB5848C4B095F44E399F8CC0"> <section id="H5251FB18D728439600C0964ED366BDEB"><enum>9007.</enum><header>Federal facilities</header> <subsection id="H53EC492D626949E2BAA42DA82B5D8025"><enum>(a)</enum><header>In general</header><text>Each department, agency, and instrumentality of the executive, legislative, and judicial branches of the Federal Government (1) having jurisdiction over any underground storage tank or underground storage tank system, or (2) engaged in any activity resulting, or which may result, in the installation, operation, management, or closure of any underground storage tank, release response activities related thereto, or in the delivery, acceptance, or deposit of any regulated substance to an underground storage tank or underground storage tank system shall be subject to, and comply with, all Federal, State, interstate, and local requirements, both substantive and procedural (including any requirement for permits or reporting or any provisions for injunctive relief and such sanctions as may be imposed by a court to enforce such relief), respecting underground storage tanks in the same manner, and to the same extent, as any person is subject to such requirements, including the payment of reasonable service charges. The Federal, State, interstate, and local substantive and procedural requirements referred to in this subsection include, but are not limited to, all administrative orders and all civil and administrative penalties and fines, regardless of whether such penalties or fines are punitive or coercive in nature or are imposed for isolated, intermittent, or continuing violations. The United States hereby expressly waives any immunity otherwise applicable to the United States with respect to any such substantive or procedural requirement (including, but not limited to, any injunctive relief, administrative order or civil or administrative penalty or fine referred to in the preceding sentence, or reasonable service charge). The reasonable service charges referred to in this subsection include, but are not limited to, fees or charges assessed in connection with the processing and issuance of permits, renewal of permits, amendments to permits, review of plans, studies, and other documents, and inspection and monitoring of facilities, as well as any other nondiscriminatory charges that are assessed in connection with a Federal, State, interstate, or local underground storage tank regulatory program. Neither the United States, nor any agent, employee, or officer thereof, shall be immune or exempt from any process or sanction of any State or Federal Court with respect to the enforcement of any such injunctive relief. No agent, employee, or officer of the United States shall be personally liable for any civil penalty under any Federal, State, interstate, or local law concerning underground storage tanks with respect to any act or omission within the scope of the official duties of the agent, employee, or officer. An agent, employee, or officer of the United States shall be subject to any criminal sanction (including, but not limited to, any fine or imprisonment) under any Federal or State law concerning underground storage tanks, but no department, agency, or instrumentality of the executive, legislative, or judicial branch of the Federal Government shall be subject to any such sanction. The President may exempt any underground storage tank of any department, agency, or instrumentality in the executive branch from compliance with such a requirement if he determines it to be in the paramount interest of the United States to do so. No such exemption shall be granted due to lack of appropriation unless the President shall have specifically requested such appropriation as a part of the budgetary process and the Congress shall have failed to make available such requested appropriation. Any exemption shall be for a period not in excess of one year, but additional exemptions may be granted for periods not to exceed one year upon the President’s making a new determination. The President shall report each January to the Congress all exemptions from the requirements of this section granted during the preceding calendar year, together with his reason for granting each such exemption.</text></subsection> <subsection id="HB8827C39E9184448B08F7263A1E50028"><enum>(b)</enum><header>Review of and report on Federal underground storage tanks</header> <paragraph id="HD0C0F8C0E5994DB6B74BF942B2346951"><enum>(1)</enum><header>Review</header><text>Not later than 12 months after the date of enactment of the <short-title>Underground Storage Tank Compliance Act of 2004</short-title>, each Federal agency that owns or operates 1 or more underground storage tanks, or that manages land on which 1 or more underground storage tanks are located, shall submit to the Administrator, the Committee on Energy and Commerce of the United States House of Representatives, and the Committee on the Environment and Public Works of the United States Senate a compliance strategy report that—</text> <subparagraph id="HD1A17EEF09E94FE597570072C879F1C7"><enum>(A)</enum><text>lists the location and owner of each underground storage tank described in this paragraph;</text></subparagraph> <subparagraph id="HA88C10DA22614A70A5CCCBE6C882D8B2"><enum>(B)</enum><text>lists all tanks that are not in compliance with this subtitle that are owned or operated by the Federal agency;</text></subparagraph> <subparagraph id="HD09C4EF6118D47109CD5503FED45700"><enum>(C)</enum><text>specifies the date of the last inspection by a State or Federal inspector of each underground storage tank owned or operated by the agency;</text></subparagraph> <subparagraph id="HF5D9262A1103415A9FC8AC74F75EE592"><enum>(D)</enum><text>lists each violation of this subtitle respecting any underground storage tank owned or operated by the agency;</text></subparagraph> <subparagraph id="H9BBBCEBF520E454181DC7C5EBE1F81C1"><enum>(E)</enum><text>describes the operator training that has been provided to the operator and other persons having primary daily on-site management responsibility for the operation and maintenance of underground storage tanks owned or operated by the agency; and</text></subparagraph> <subparagraph id="H08E6128D2B704819AFFB00279240052D"><enum>(F)</enum><text>describes the actions that have been and will be taken to ensure compliance for each underground storage tank identified under subparagraph (B).</text></subparagraph></paragraph> <paragraph id="H10D09EAD2E094EC4A37D4306903620BF"><enum>(2)</enum><header>Not a safe harbor</header><text>This subsection does not relieve any person from any obligation or requirement under this subtitle.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HA8C0C06551AC41C191D8BED749541064"><enum>1529.</enum><header>Tanks on Tribal lands</header> <subsection id="HC233FE0AAE4D403E9288D51E809F93D3"><enum>(a)</enum><header>In general</header><text>Subtitle I of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6991">42 U.S.C. 6991 et seq.</external-xref>) is amended by adding the following at the end thereof:</text> <quoted-block act-name="Solid Waste Disposal Act" id="HD14B22E01DC44ED6B316E0F371B53B79"> <section id="H4CC91EA8AC4D4F7998B9A9633ED66169"><enum>9013.</enum><header>Tanks on Tribal lands</header> <subsection id="H729413B0F8AB468E84D0ADB6FB8B2F5"><enum>(a)</enum><header>Strategy</header><text>The Administrator, in coordination with Indian tribes, shall, not later than 1 year after the date of enactment of this section, develop and implement a strategy—</text> <paragraph id="HC676CE1BE2034F8DA32FC1B6BCF316A6"><enum>(1)</enum><text>giving priority to releases that present the greatest threat to human health or the environment, to take necessary corrective action in response to releases from leaking underground storage tanks located wholly within the boundaries of—</text> <subparagraph id="H7F4F9CA3F2E04BD7AD8E6BFC03B8FDB6"><enum>(A)</enum><text>an Indian reservation; or</text></subparagraph> <subparagraph id="HFA3434D8F6064256A2AEC29D31D555FA"><enum>(B)</enum><text>any other area under the jurisdiction of an Indian tribe; and</text></subparagraph></paragraph> <paragraph id="HDEE5828402BA44D9BDAD5657E5D894DC"><enum>(2)</enum><text>to implement and enforce requirements concerning underground storage tanks located wholly within the boundaries of—</text> <subparagraph id="H0089D3E872A442D7A155B52459D22393"><enum>(A)</enum><text>an Indian reservation; or</text></subparagraph> <subparagraph id="HB5B091F342ED476A84913E1CA7E06208"><enum>(B)</enum><text>any other area under the jurisdiction of an Indian tribe.</text></subparagraph></paragraph></subsection> <subsection id="H0A0D926F849941BEB7808EECB0F825B8"><enum>(b)</enum><header>Report</header><text>Not later than 2 years after the date of enactment of this section, the Administrator shall submit to Congress a report that summarizes the status of implementation and enforcement of this subtitle in areas located wholly within—</text> <paragraph id="HB09C6CB6111741D1A6C20009E88685A"><enum>(1)</enum><text>the boundaries of Indian reservations; and</text></paragraph> <paragraph id="H7A0CAF3AE48C42CBBE27009131A6FBE"><enum>(2)</enum><text>any other areas under the jurisdiction of an Indian tribe.</text></paragraph><continuation-text continuation-text-level="subsection">The Administrator shall make the report under this subsection available to the public.</continuation-text></subsection> <subsection id="HF1C4FAFD393E424BB4E3B3235DBA98C6"><enum>(c)</enum><header>Not a safe harbor</header><text>This section does not relieve any person from any obligation or requirement under this subtitle.</text></subsection> <subsection id="H143DEF1312C34FA400F4EAEFFB4BCE6D"><enum>(d)</enum><header>State authority</header><text>Nothing in this section applies to any underground storage tank that is located in an area under the jurisdiction of a State, or that is subject to regulation by a State, as of the date of enactment of this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HB1474A3A5F83468294675FC551C08014"><enum>(b)</enum><header>Table of contents</header><text>The table of contents for such subtitle I is amended by adding the following new item at the end thereof:</text> <quoted-block style="OLC" id="H498C6ABE68DC4963B00639F9ABE390BF"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 9013. Tanks on Tribal lands</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="H22B5AB06C6C34FF3A722926B768EC802"><enum>1530.</enum><header>Future release containment technology</header><text display-inline="no-display-inline">Not later than 2 years after the date of enactment of this Act, the Administrator of the Environmental Protection Agency, after consultation with States, shall make available to the public and to the Committee on Energy and Commerce of the House of Representatives and the Committee on Environment and Public Works of the Senate information on the effectiveness of alternative possible methods and means for containing releases from underground storage tanks systems.</text></section> <section id="HBB56CB6A070D47ECB2CA3742A708A11"><enum>1531.</enum><header>Authorization of appropriations</header> <subsection id="H14557032B69340D99ED9536DFFDF4F75"><enum>(a)</enum><header>In general</header><text>Subtitle I of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6991">42 U.S.C. 6991 et seq.</external-xref>) is amended by adding at the end the following:</text> <quoted-block act-name="Solid Waste Disposal Act" id="HBCAC68C298D843E39E5FD596E5B33BD1"> <section id="H56E4CC88008348BE8B3D6DE100573CDA"><enum>9014.</enum><header>Authorization of appropriations</header><text display-inline="no-display-inline">There are authorized to be appropriated to the Administrator the following amounts:</text> <paragraph id="H52B6148498C84006B52311F500555410"><enum>(1)</enum><text>To carry out subtitle I (except sections 9003(h), 9005(c), 9011 and 9012) $50,000,000 for each of fiscal years 2004 through 2008.</text></paragraph> <paragraph id="HD54ABB15FC7F4FCD80F3D2FE6626099F"><enum>(2)</enum><text>From the Trust Fund, notwithstanding <external-xref legal-doc="usc" parsable-cite="usc/26/9508">section 9508(c)(1)</external-xref> of the Internal Revenue Code of 1986:</text> <subparagraph id="H475F2A31D58E41769FCDFDEC3144001F"><enum>(A)</enum><text>to carry out section 9003(h) (except section 9003(h)(12)) $200,000,000 for each of fiscal years 2004 through 2008;</text></subparagraph> <subparagraph id="HBD5256BEA06F45C4812F2083B081B9E9"><enum>(B)</enum><text>to carry out section 9003(h)(12), $200,000,000 for each of fiscal years 2004 through 2008;</text></subparagraph> <subparagraph id="H990AE8BC0173455AAE2B9C00D4E4C370"><enum>(C)</enum><text>to carry out sections 9004(f) and 9005(c) $100,000,000 for each of fiscal years 2004 through 2008; and</text></subparagraph> <subparagraph id="HB0CF8FFB80B04BECA43683BC61ECB34C"><enum>(D)</enum><text>to carry out sections 9011 and 9012 $55,000,000 for each of fiscal years 2004 through 2008.</text></subparagraph></paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HA053153A684E4D58B19ED47BE6675DEB"><enum>(b)</enum><header>Table of contents</header><text>The table of contents for such subtitle I is amended by adding the following new item at the end thereof:</text> <quoted-block style="OLC" id="H2EB9E08337EE460DA32CD91D544D4D00"> <toc regeneration="no-regeneration"> <toc-entry level="section">Sec. 9014. Authorization of appropriations</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section> <section id="H6C09F1DA20E84B538940AE87F0BB2F9D"><enum>1532.</enum><header>Conforming amendments</header> <subsection id="HE1668C92479A4DB7A79178E063E46EC4"><enum>(a)</enum><header>In general</header><text>Section 9001 of the <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/6991">42 U.S.C. 6991</external-xref>) is amended as follows:</text> <paragraph id="H39E71CC8B39B465EA8C38E199753782"><enum>(1)</enum><text>By striking <quote>For the purposes of this subtitle—</quote> and inserting <quote>In this subtitle:</quote>.</text></paragraph> <paragraph id="HEB4DE82E6AA34A0D93025616F367F1B7"><enum>(2)</enum><text>By redesignating paragraphs (1), (2), (3), (4), (5), (6), (7), and (8) as paragraphs (10), (7), (4), (3), (8), (5), (2), and (6), respectively.</text></paragraph> <paragraph id="H58314845442248EE93E839927E8CD184"><enum>(3)</enum><text>By inserting before paragraph (2) (as redesignated by paragraph (2) of this subsection) the following:</text> <quoted-block id="H0F375971279C42A4813455D936B32BE"> <paragraph id="HB0F19697B5284DF48E47E2D79DF051D"><enum>(1)</enum><header>Indian tribe</header> <subparagraph id="H74DF92D6C5114119B7FF5E642705E527"><enum>(A)</enum><header>In general</header><text>The term <term>Indian tribe</term> means any Indian tribe, band, nation, or other organized group or community that is recognized as being eligible for special programs and services provided by the United States to Indians because of their status as Indians.</text></subparagraph> <subparagraph id="H9D31F3A9E27A40388600359719A3B1C2"><enum>(B)</enum><header>Inclusions</header><text>The term <term>Indian tribe</term> includes an Alaska Native village, as defined in or established under the Alaska Native Claims Settlement Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1601">43 U.S.C. 1601 et seq.</external-xref>); and</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HF7E381E6F1A14ED2A8212B8723B71BC4"><enum>(4)</enum><text>By inserting after paragraph (8) (as redesignated by paragraph (2) of this subsection) the following:</text> <quoted-block id="H7C4EE44F76384608A1333EFAD04FA57"> <paragraph id="HBCF74C61863F4AF49ECF25CD1616B11"><enum>(9)</enum><header>Trust Fund</header><text>The term <term>Trust Fund</term> means the Leaking Underground Storage Tank Trust Fund established by <external-xref legal-doc="usc" parsable-cite="usc/26/9508">section 9508</external-xref> of the Internal Revenue Code of 1986.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="H5927420CF0ED4D64AD218B3CB6E229C5"><enum>(b)</enum><header>Conforming amendments</header><text>The <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> (42 U.S.C. 6901 and following) is amended as follows:</text> <paragraph id="H6FCA23CE5C584FB5A424F8ECD8298E52"><enum>(1)</enum><text>Section 9003(f) (<external-xref legal-doc="usc" parsable-cite="usc/42/6991b">42 U.S.C. 6991b(f)</external-xref>) is amended—</text> <subparagraph id="H419C7962987D43F296F32226B7E8BB9"><enum>(A)</enum><text>in paragraph (1), by striking <quote>9001(2)(B)</quote> and inserting <quote>9001(7)(B)</quote>; and</text></subparagraph> <subparagraph id="HB9A86E67013D4AC180B0AF99FD7B184D"><enum>(B)</enum><text>in paragraphs (2) and (3), by striking <quote>9001(2)(A)</quote> each place it appears and inserting <quote>9001(7)(A)</quote>.</text></subparagraph></paragraph> <paragraph id="H862C19B689C04B29A7ED256113D1C52C"><enum>(2)</enum><text>Section 9003(h) (<external-xref legal-doc="usc" parsable-cite="usc/42/6991b">42 U.S.C. 6991b(h)</external-xref>) is amended in paragraphs (1), (2)(C), (7)(A), and (11) by striking <quote>Leaking Underground Storage Tank Trust Fund</quote> each place it appears and inserting <quote>Trust Fund</quote>.</text></paragraph> <paragraph id="HDEAD900D15A5462DBA6C9150F4E25618"><enum>(3)</enum><text>Section 9009 (<external-xref legal-doc="usc" parsable-cite="usc/42/6991h">42 U.S.C. 6991h</external-xref>) is amended—</text> <subparagraph id="H88A4E23DA17E40589EF14E95223F0F5"><enum>(A)</enum><text>in subsection (a), by striking <quote>9001(2)(B)</quote> and inserting <quote>9001(7)(B)</quote>; and</text></subparagraph> <subparagraph id="H76611F8AD9254AC4BAAF009900B4451D"><enum>(B)</enum><text>in subsection (d), by striking <quote>section 9001(1) (A) and (B)</quote> and inserting <quote>subparagraphs (A) and (B) of section 9001(10)</quote>.</text></subparagraph></paragraph></subsection></section> <section id="HDF2E7E3F5C5C4878A44EE8DC1863D672"><enum>1533.</enum><header>Technical amendments</header><text display-inline="no-display-inline">The <act-name parsable-cite="SWDA">Solid Waste Disposal Act</act-name> is amended as follows:</text> <paragraph id="HACBF35367C984B88BEB47F88007FA2AE"><enum>(1)</enum><text>Section 9001(4)(A) (<external-xref legal-doc="usc" parsable-cite="usc/42/6991">42 U.S.C. 6991(4)(A)</external-xref>) is amended by striking <quote>sustances</quote> and inserting <quote>substances</quote>.</text></paragraph> <paragraph id="H62E63CD646E04E009696C8E990D323C2"><enum>(2)</enum><text>Section 9003(f)(1) (<external-xref legal-doc="usc" parsable-cite="usc/42/6991b">42 U.S.C. 6991b(f)(1)</external-xref>) is amended by striking <quote>subsection (c) and (d) of this section</quote> and inserting <quote>subsections (c) and (d)</quote>.</text></paragraph> <paragraph id="HF424A3E0DF224F1BA2771698F7885600"><enum>(3)</enum><text>Section 9004(a) (<external-xref legal-doc="usc" parsable-cite="usc/42/6991c">42 U.S.C. 6991c(a)</external-xref>) is amended by striking <quote>in 9001(2) (A) or (B) or both</quote> and inserting <quote>in subparagraph (A) or (B) of section 9001(7)</quote>.</text></paragraph> <paragraph id="H7DD5091839A645D5B7C200B23EFB9CFF"><enum>(4)</enum><text>Section 9005 (<external-xref legal-doc="usc" parsable-cite="usc/42/6991d">42 U.S.C. 6991d</external-xref>) is amended—</text> <subparagraph id="H9EC5195C67D145C08FCD9C16FDCDB164"><enum>(A)</enum><text>in subsection (a), by striking <quote>study taking</quote> and inserting <quote>study, taking</quote>;</text></subparagraph> <subparagraph id="HC1FD4255C9244C6D8E35939344A3CAD"><enum>(B)</enum><text>in subsection (b)(1), by striking <quote>relevent</quote> and inserting <quote>relevant</quote>; and</text></subparagraph> <subparagraph id="HA01B921A47F749A1B6E03B3CAB7A195"><enum>(C)</enum><text>in subsection (b)(4), by striking <quote>Evironmental</quote> and inserting <quote>Environmental</quote>.</text></subparagraph></paragraph></section></subtitle> <enum>XVI</enum><header>Studies</header> <section id="H7B8604122CAC4CC0A034CDAEBB2412E" section-type="subsequent-section"><enum>1601.</enum><header>Study on inventory of petroleum and natural gas storage</header> <subsection id="H0F86D3B375364A30982B7960536C1410"><enum>(a)</enum><header>Definition</header><text>For purposes of this section <quote>petroleum</quote> means crude oil, motor gasoline, jet fuel, distillates, and propane.</text></subsection> <subsection id="HA1873A3071BD488EA9B4F83123B9A3C6"><enum>(b)</enum><header>Study</header><text>The Secretary of Energy shall conduct a study on petroleum and natural gas storage capacity and operational inventory levels, nationwide and by major geographical regions.</text></subsection> <subsection id="H7F12BA2B944B4574B557C36E93DB00BD"><enum>(c)</enum><header>Contents</header><text>The study shall address—</text> <paragraph id="H6A06467359874166A1A269F0FDD788F2"><enum>(1)</enum><text>historical normal ranges for petroleum and natural gas inventory levels;</text></paragraph> <paragraph id="HCACF0CB77F0C4D8D945BDF00FE5B0030"><enum>(2)</enum><text>historical and projected storage capacity trends;</text></paragraph> <paragraph id="H4144F19D54BB4453AFA14C70B46B28FB"><enum>(3)</enum><text>estimated operation inventory levels below which outages, delivery slowdown, rationing, interruptions in service, or other indicators of shortage begin to appear;</text></paragraph> <paragraph id="HF569C62EE4EB4CCEBFB39000BBD59100"><enum>(4)</enum><text>explanations for inventory levels dropping below normal ranges; and</text></paragraph> <paragraph id="HFC28F9DAE5C24FEE942526A2FF4B18E3"><enum>(5)</enum><text>the ability of industry to meet United States demand for petroleum and natural gas without shortages or price spikes, when inventory levels are below normal ranges.</text></paragraph></subsection> <subsection id="H4AAB4C2808DE45AD95FD17B9F079D535"><enum>(d)</enum><header>Report to Congress</header><text>Not later than 1 year after the date of enactment of this Act, the Secretary of Energy shall submit a report to Congress on the results of the study, including findings and any recommendations for preventing future supply shortages.</text></subsection></section> <section id="H7EBF4AA734094508A372821E874E284F"><enum>1602.</enum><header>Natural gas supply shortage report</header> <subsection id="H5DC9D21A0429428F8586B69793DB7318"><enum>(a)</enum><header>Report</header><text>Not later than 6 months after the date of enactment of this Act, the Secretary of Energy shall submit to Congress a report on natural gas supplies and demand. In preparing the report, the Secretary shall consult with experts in natural gas supply and demand as well as representatives of State and local units of government, tribal organizations, and consumer and other organizations. As the Secretary deems advisable, the Secretary may hold public hearings and provide other opportunities for public comment. The report shall contain recommendations for Federal actions that, if implemented, will result in a balance between natural gas supply and demand at a level that will ensure, to the maximum extent practicable, achievement of the objectives established in subsection (b).</text></subsection> <subsection id="H4975AC18DC7A4A37A18D53BA365829D4"><enum>(b)</enum><header>Objectives of report</header><text>In preparing the report, the Secretary shall seek to develop a series of recommendations that will result in a balance between natural gas supply and demand adequate to—</text> <paragraph id="H68BAE785CD58432BBA00996F94DF504"><enum>(1)</enum><text>provide residential consumers with natural gas at reasonable and stable prices;</text></paragraph> <paragraph id="H3A8431EC7E414F5690CDF09DD9324546"><enum>(2)</enum><text>accommodate long-term maintenance and growth of domestic natural gas-dependent industrial, manufacturing, and commercial enterprises;</text></paragraph> <paragraph id="HCA322CF35B244249A8C2D3F1C43B06A8"><enum>(3)</enum><text>facilitate the attainment of national ambient air quality standards under the <act-name parsable-cite="CAA">Clean Air Act</act-name>;</text></paragraph> <paragraph id="H55D3D83CE59641C98F0554EDD3A980BD"><enum>(4)</enum><text>permit continued progress in reducing emissions associated with electric power generation; and</text></paragraph> <paragraph id="H224B5F901F6546C0B570F70437DBD71B"><enum>(5)</enum><text>support development of the preliminary phases of hydrogen-based energy technologies.</text></paragraph></subsection> <subsection id="H3A741565D5F146BD9614F7915BA41F5"><enum>(c)</enum><header>Contents of report</header><text>The report shall provide a comprehensive analysis of natural gas supply and demand in the United States for the period from 2004 to 2015. The analysis shall include, at a minimum—</text> <paragraph id="HDF26F22C9F2448149726467B592169B5"><enum>(1)</enum><text>estimates of annual domestic demand for natural gas that take into account the effect of Federal policies and actions that are likely to increase and decrease demand for natural gas;</text></paragraph> <paragraph id="H78874D20322F4360B2277E8BB4209E55"><enum>(2)</enum><text>projections of annual natural gas supplies, from domestic and foreign sources, under existing Federal policies;</text></paragraph> <paragraph id="H0B4DB8474A3B40A394E81780471893CA"><enum>(3)</enum><text>an identification of estimated natural gas supplies that are not available under existing Federal policies;</text></paragraph> <paragraph id="HD40D2EBB2CA14B308729977DBAEF43F"><enum>(4)</enum><text>scenarios for decreasing natural gas demand and increasing natural gas supplies comparing relative economic and environmental impacts of Federal policies that—</text> <subparagraph id="HB5147F9FE0F6440380834E3903A4F4E6"><enum>(A)</enum><text>encourage or require the use of natural gas to meet air quality, carbon dioxide emission reduction, or energy security goals;</text></subparagraph> <subparagraph id="HF2C24497B74140E3928953A0BD6926D"><enum>(B)</enum><text>encourage or require the use of energy sources other than natural gas, including coal, nuclear, and renewable sources;</text></subparagraph> <subparagraph id="HF09702C8830845E5A67F8368EAEE9C06"><enum>(C)</enum><text>support technologies to develop alternative sources of natural gas and synthetic gas, including coal gasification technologies;</text></subparagraph> <subparagraph id="HB69DCA8534734D83B365580000A7EF6F"><enum>(D)</enum><text>encourage or require the use of energy conservation and demand side management practices; and</text></subparagraph> <subparagraph id="H78A37908279441BA9D264C1D19D9FEA5"><enum>(E)</enum><text>affect access to domestic natural gas supplies; and</text></subparagraph></paragraph> <paragraph id="H2B69ACA01ACA4BAF9D693EEDDC9C65B5"><enum>(5)</enum><text>recommendations for Federal actions to achieve the objectives of the report, including recommendations that—</text> <subparagraph id="H4EDD5386D0234A1585D751C0F97857D8"><enum>(A)</enum><text>encourage or require the use of energy sources other than natural gas, including coal, nuclear, and renewable sources;</text></subparagraph> <subparagraph id="H45B1BCBA1DB046BA81ACF600B972C51D"><enum>(B)</enum><text>encourage or require the use of energy conservation or demand side management practices;</text></subparagraph> <subparagraph id="H9A308DE2AF23412B973ED1647E64F7D8"><enum>(C)</enum><text>support technologies for the development of alternative sources of natural gas and synthetic gas, including coal gasification technologies; and</text></subparagraph> <subparagraph id="HD11DCCD59BB64C79810061F34017AE00"><enum>(D)</enum><text>will improve access to domestic natural gas supplies.</text></subparagraph></paragraph></subsection></section> <section id="H2527C6CF2E0243E098DED3F27B129928"><enum>1603.</enum><header>Split-estate Federal oil and gas leasing and development practices</header> <subsection id="HEAA9DEBB04534D368DF0BD687C7908B4"><enum>(a)</enum><header>Review</header><text>In consultation with affected private surface owners, oil and gas industry, and other interested parties, the Secretary of the Interior shall undertake a review of the current policies and practices with respect to management of Federal subsurface oil and gas development activities and their effects on the privately owned surface. This review shall include—</text> <paragraph id="HD1A90F8DD1D6417D8E5026A725C8839F"><enum>(1)</enum><text>a comparison of the rights and responsibilities under existing mineral and land law for the owner of a Federal mineral lease, the private surface owners and the Department;</text></paragraph> <paragraph id="HE82BAC5C92354BA697752C30A4D0A2F1"><enum>(2)</enum><text>a comparison of the surface owner consent provisions in section 714 of the Surface Mining Control and Reclamation Act of 1977 (<external-xref legal-doc="usc" parsable-cite="usc/30/1304">30 U.S.C. 1304</external-xref>) concerning surface mining of Federal coal deposits and the surface owner consent provisions for oil and gas development, including coalbed methane production; and</text></paragraph> <paragraph id="H6E0F02AF46664C858638E1FF100859EB"><enum>(3)</enum><text>recommendations for administrative or legislative action necessary to facilitate reasonable access for Federal oil and gas activities while addressing surface owner concerns and minimizing impacts to private surface.</text></paragraph></subsection> <subsection id="HBB9C60DAD67C41189912F5DF335CE00"><enum>(b)</enum><header>Report</header><text>The Secretary of the Interior shall report the results of such review to Congress not later than 180 days after the date of enactment of this Act.</text></subsection></section> <section id="H5D7E36EE25B94BF692852F0237EDC1B5"><enum>1604.</enum><header>Resolution of Federal resource development conflicts in the Powder River Basin</header><text display-inline="no-display-inline">The Secretary of the Interior shall—</text> <paragraph id="H9D9D6032506D4E05AEC5BA47678E3BE0"><enum>(1)</enum><text>undertake a review of existing authorities to resolve conflicts between the development of Federal coal and the development of Federal and non-Federal coalbed methane in the Powder River Basin in Wyoming and Montana; and</text></paragraph> <paragraph id="H83BC1B0F917240F5B148814CBC61D48C"><enum>(2)</enum><text>not later than 6 months after the date of enactment of this Act, report to Congress on alternatives to resolve these conflicts and identification of a preferred alternative with specific legislative language, if any, required to implement the preferred alternative.</text></paragraph></section> <section id="H02E6F994CE0A4A7D00005D78A8AB23A4"><enum>1605.</enum><header>Study of energy efficiency standards</header><text display-inline="no-display-inline">The Secretary of Energy shall contract with the National Academy of Sciences for a study, to be completed within 1 year after the date of enactment of this Act, to examine whether the goals of energy efficiency standards are best served by measurement of energy consumed, and efficiency improvements, at the actual site of energy consumption, or through the full fuel cycle, beginning at the source of energy production. The Secretary shall submit the report to Congress.</text></section> <section id="H63237BB7F90042B084CB9087F1B03740"><enum>1606.</enum><header>Telecommuting study</header> <subsection id="H07CF4426CCD548F09221AAE22575413"><enum>(a)</enum><header>Study required</header><text>The Secretary, in consultation with the Commission, the Director of the Office of Personnel Management, the Administrator of General Services, and the Administrator of NTIA, shall conduct a study of the energy conservation implications of the widespread adoption of telecommuting by Federal employees in the United States.</text></subsection> <subsection id="H33600C7ECE424406A9A9ABA62FA405C1"><enum>(b)</enum><header>Required subjects of study</header><text>The study required by subsection (a) shall analyze the following subjects in relation to the energy saving potential of telecommuting by Federal employees:</text> <paragraph id="HB4145E0BB65F420AB68B98B80091D6F0"><enum>(1)</enum><text>Reductions of energy use and energy costs in commuting and regular office heating, cooling, and other operations.</text></paragraph> <paragraph id="H82AE9D0911B541F6A697495690C500AA"><enum>(2)</enum><text>Other energy reductions accomplished by telecommuting.</text></paragraph> <paragraph id="HDE21FAB95A6245E78487B43B29015773"><enum>(3)</enum><text>Existing regulatory barriers that hamper telecommuting, including barriers to broadband telecommunications services deployment.</text></paragraph> <paragraph id="HD1222C61D7664B0E8E03C3E3973CDD49"><enum>(4)</enum><text>Collateral benefits to the environment, family life, and other values.</text></paragraph></subsection> <subsection id="H2D86267C70234BE89C48748F22992CB7"><enum>(c)</enum><header>Report required</header><text>The Secretary shall submit to the President and Congress a report on the study required by this section not later than 6 months after the date of enactment of this Act. Such report shall include a description of the results of the analysis of each of the subject described in subsection (b).</text></subsection> <subsection id="HE6F86F8E7D664B768023EF2BC38FB75B"><enum>(d)</enum><header>Definitions</header><text>As used in this section:</text> <paragraph id="HDE708111F9E745E9812C38AAA5BC3408"><enum>(1)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Energy.</text></paragraph> <paragraph id="HF29B90A8DB954FFEB04700A646063727"><enum>(2)</enum><header>Commission</header><text>The term <term>Commission</term> means the Federal Communications Commission.</text></paragraph> <paragraph id="HFE98D264828B421EB9831021BDFDB656"><enum>(3)</enum><header>NTIA</header><text>The term <term>NTIA</term> means the National Telecommunications and Information Administration of the Department of Commerce.</text></paragraph> <paragraph id="HA825254007D0454B951EE6B1EBEF6F1D"><enum>(4)</enum><header>Telecommuting</header><text>The term <term>telecommuting</term> means the performance of work functions using communications technologies, thereby eliminating or substantially reducing the need to commute to and from traditional worksites.</text></paragraph> <paragraph id="HAC7FB607AF514B6E9294512969442225"><enum>(5)</enum><header>Federal employee</header><text>The term <term>Federal employee</term> has the meaning provided the term <term>employee</term> by <external-xref legal-doc="usc" parsable-cite="usc/5/2105">section 2105</external-xref> of title 5, United States Code.</text></paragraph></subsection></section> <section id="H5ED2F8AEA8E04048BB8565202BCF2B34"><enum>1607.</enum><header>Liheap report</header><text display-inline="no-display-inline">Not later than 1 year after the date of enactment of this Act, the Secretary of Health and Human Services shall transmit to Congress a report on how the Low-Income Home Energy Assistance Program could be used more effectively to prevent loss of life from extreme temperatures. In preparing such report, the Secretary shall consult with appropriate officials in all 50 States and the District of Columbia.</text></section> <section id="H90975FF3985F406ABC0053B05B7C00A2"><enum>1608.</enum><header>Oil bypass filtration technology</header><text display-inline="no-display-inline">The Secretary of Energy and the Administrator of the Environmental Protection Agency shall—</text> <paragraph id="H3DA4C64B5000483987D65BDDACFA8E95"><enum>(1)</enum><text>conduct a joint study of the benefits of oil bypass filtration technology in reducing demand for oil and protecting the environment;</text></paragraph> <paragraph id="H86F87FCA0E6E44F3A9BF000007255E55"><enum>(2)</enum><text>examine the feasibility of using oil bypass filtration technology in Federal motor vehicle fleets; and</text></paragraph> <paragraph id="H27E8779740824A96A4C1B5E758AA344"><enum>(3)</enum><text>include in such study, prior to any determination of the feasibility of using oil bypass filtration technology, the evaluation of products and various manufacturers.</text></paragraph></section> <section id="H1C0A268D5F49495B8F19E86461C3001D"><enum>1609.</enum><header>Total integrated thermal systems</header><text display-inline="no-display-inline">The Secretary of Energy shall—</text> <paragraph id="HFEF669F47C474AB184B2146D8462F1E6"><enum>(1)</enum><text>conduct a study of the benefits of total integrated thermal systems in reducing demand for oil and protecting the environment; and</text></paragraph> <paragraph id="HACD1A1DB6ED84DFABB6167BB2E67F9DF"><enum>(2)</enum><text>examine the feasibility of using total integrated thermal systems in Department of Defense and other Federal motor vehicle fleets.</text></paragraph></section> <section id="HA89CE44F676B43B4BD2C97FBBB21D51C"><enum>1610.</enum><header>University collaboration</header><text display-inline="no-display-inline">Not later than 2 years after the date of enactment of this Act, the Secretary of Energy shall transmit to Congress a report that examines the feasibility of promoting collaborations between large institutions of higher education and small institutions of higher education through grants, contracts, and cooperative agreements made by the Secretary for energy projects. The Secretary shall also consider providing incentives for the inclusion of small institutions of higher education, including minority-serving institutions, in energy research grants, contracts, and cooperative agreements.</text></section> <section id="HCAB0F094AC1D4CB4AC3DAA2FD8108104"><enum>1611.</enum><header>Reliability and consumer protection assessment</header><text display-inline="no-display-inline">Not later than 5 years after the date of enactment of this Act, and each 5 years thereafter, the Federal Energy Regulatory Commission shall assess the effects of the exemption of electric cooperatives and government-owned utilities from Commission regulation under section 201(f) of the Federal Power Act. The assessment shall include any effects on—</text> <paragraph id="H65543C51DF394BB19998D8C255D4A46E"><enum>(1)</enum><text>reliability of interstate electric transmission networks;</text></paragraph> <paragraph id="H2D31B5556858440BB477107805965BE3"><enum>(2)</enum><text>benefit to consumers, and efficiency, of competitive wholesale electricity markets;</text></paragraph> <paragraph id="HCCAAA1579036438AAA843660954F004C"><enum>(3)</enum><text>just and reasonable rates for electricity consumers; and</text></paragraph> <paragraph id="HC4BFD806843444619ED72C4813400009"><enum>(4)</enum><text>the ability of the Commission to protect electricity consumers.</text></paragraph><continuation-text continuation-text-level="section">If the Commission finds that the 201(f) exemption results in adverse effects on consumers or electric reliability, the Commission shall make appropriate recommendations to Congress pursuant to section 311 of the Federal Power Act.</continuation-text></section>