[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 14 Placed on Calendar Senate (PCS)]






                                                        Calendar No. 79
108th CONGRESS
  1st Session
                                 S. 14

  To enhance the energy security of the United States, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 30, 2003

 Mr. Domenici introduced the following bill; which was read the first 
                                  time

                              May 1, 2003

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
  To enhance the energy security of the United States, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

        This Act may be cited as ``The Energy Policy Act of 2003''.

SEC. 2. TABLE OF CONTENTS.

        The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                          TITLE I--OIL AND GAS

                   Subtitle A--Production Incentives

Sec. 101. Permanent authority to operate the Strategic Petroleum 
                            Reserve and other energy programs.
Sec. 102. Study on inventory of petroleum and natural gas storage.
Sec. 103. Program on oil and gas royalties in kind.
Sec. 104. Marginal property production incentives.
Sec. 105. Comprehensive inventory of OCS oil and natural gas resources.
Sec. 106. Royalty relief for deep water production.
Sec. 107. Alaska offshore royalty suspension.
Sec. 108. Orphaned, abandoned, or idled wells on Federal lands.
Sec. 109. Incentives for natural gas production from deep wells in the 
                            shallow waters of the Gulf of Mexico.
Sec. 110. Alternate energy-related uses on the Outer Continental Shelf.
Sec. 111. Coastal impact assistance.
Sec. 112. National Energy Resource Database.
Sec. 113. Oil and gas lease acreage limitation.
Sec. 114. Assessment of dependence of State of Hawaii on oil.
                  Subtitle B--Access to Federal Lands

Sec. 121. Office of Federal Energy Permit Coordination.
Sec. 122. Pilot Project to improve Federal permit coordination.
Sec. 123. Federal onshore leasing programs for oil and gas.
Sec. 124. Estimates of oil and gas resources underlying onshore Federal 
                            lands.
Sec. 125. Split-Estate Federal oil and gas leasing and development 
                            practices.
Sec. 126. Coordination of Federal agencies to establish priority energy 
                            transmission rights-of-way.
                Subtitle C--Alaska Natural Gas Pipeline

Sec. 131. Short title.
Sec. 132. Definitions.
Sec. 133. Issuance of certificate of public convenience and necessity.
Sec. 134. Environmental reviews.
Sec. 135. Pipeline expansion.
Sec. 136. Federal coordinator.
Sec. 137. Judicial review.
Sec. 138. State jurisdiction over in-state delivery of natural gas.
Sec. 139. Study of alternative means of construction.
Sec. 140. Clarification of ANGTA status and authorities.
Sec. 141. Sense of Congress.
Sec. 142. Participation of small business concerns.
Sec. 143. Alaska pipeline construction training program.
Sec. 144. Loan guarantee.
Sec. 145. Sense of Congress on natural gas demand.
                             TITLE II--COAL

                Subtitle A--Clean Coal Power Initiative

Sec. 201. Authorization of appropriations.
Sec. 202. Project criteria.
Sec. 203. Reports.
Sec. 204. Clean Coal Centers of Excellence.
                    Subtitle B--Federal Coal Leases

Sec. 211. Repeal of the 160-acre limitation for coal leases.
Sec. 212. Mining plans.
Sec. 213. Payment of advance royalties under coal leases.
Sec. 214. Elimination of deadline for submission of coal lease 
                            operation and reclamation plan.
Sec. 215. Application of amendments.
                     Subtitle C--Powder River Basin

Sec. 221. Resolution of Federal resource development conflicts in the 
                            Powder River Basin.
                        TITLE III--INDIAN ENERGY

Sec. 301. Short title.
Sec. 302. Office of Indian energy policy and programs.
Sec. 303. Indian energy.

                      ``TITLE XXVI--INDIAN ENERGY

                              ``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. Federal Power Marketing 
                                        Administrations.
                              ``Sec. 2606. Indian mineral development 
                                        review.
                              ``Sec. 2607. Wind and hydropower 
                                        feasibility study.
Sec. 304. Four Corners transmission line project.
Sec. 305. Energy efficiency in federally assisted housing.
Sec. 306. Consultation with Indian tribes.
                           TITLE IV--NUCLEAR

                 Subtitle A--Price-Anderson Amendments

Sec. 401. Short title.
Sec. 402. Extension of indemnification authority.
Sec. 403. Maximum assessment.
Sec. 404. Department of energy liability limit.
Sec. 405. Incidents outside the United States.
Sec. 406. Reports.
Sec. 407. Inflation adjustment.
Sec. 408. Treatment of modular reactors.
Sec. 409. Applicability.
Sec. 410. Civil penalties.
          Subtitle B--Deployment of Commercial Nuclear Plants

Sec. 421. Short title.
Sec. 422. Definitions.
Sec. 423. Responsibilities of the Secretary of Energy.
Sec. 424. Limitations.
Sec. 425. Regulations.
      Subtitle C--Advanced Reactor Hydrogen Co-Generation Project

Sec. 431. Project establishment.
Sec. 432. Project definition.
Sec. 433. Project management.
Sec. 434. Project requirements.
Sec. 435. Authorization of appropriations.
                   Subtitle D--Miscellaneous Matters

Sec. 441. Uranium sales and transfers.
Sec. 442. Decommissioning Pilot Program.
                       TITLE V--RENEWABLE ENERGY

                     Subtitle A--General Provisions

Sec. 501. Assessment of renewable energy resources.
Sec. 502. Renewable energy production incentive.
Sec. 503. Renewable energy on Federal lands.
Sec. 504. Federal purchase requirement.
Sec. 505. Insular area renewable and energy efficient plans.
                 Subtitle B--Hydroelectric Relicensing

Sec. 511. Alternative conditions and fishways.
                     Subtitle C--Geothermal Energy

Sec. 521. Competitive lease sale requirements.
Sec. 522. Geothermal leasing and permitting on Federal lands.
Sec. 523. Leasing and permitting on federal lands withdrawn for 
                            military purposes.
Sec. 524. Reinstatement of leases terminated for failure to pay rent.
Sec. 525. Royalty reduction and relief.
Sec. 526. Royalty exemption for direct use of low temperature 
                            geothermal energy resources.
                       Subtitle D--Biomass Energy

Sec. 531. Definitions.
Sec. 532. Biomass Commercial Utilization Grant Program.
Sec. 533. Improved Biomass Utilization Grant Program.
Sec. 534. Report.
                      TITLE VI--ENERGY EFFICIENCY

                      Subtitle A--Federal Programs

Sec. 601. Energy management requirements.
Sec. 602. Energy use measurement and accountability.
Sec. 603. Federal building performance standards.
Sec. 604. Energy savings performance contracts.
Sec. 605. Procurement of energy efficient products.
Sec. 606. Congressional building efficiency.
Sec. 607. Increased Federal use of recovered mineral components in 
                            federally funded projects involving 
                            procurement of cement or concrete.
Sec. 608. Utility energy service contracts.
Sec. 609. Study of energy efficiency standards.
                  Subtitle B--State and Local Programs

Sec. 611. Low Income Community Energy efficiency Pilot Program.
Sec. 612. Energy efficient public buildings.
Sec. 613. Energy Efficient Appliance Rebate Programs.
                     Subtitle C--Consumer Products

Sec. 621. Energy conservation standards for additional products.
Sec. 622. Energy labeling.
Sec. 623. Energy Star Program.
Sec. 624. HVAC Maintenance Consumer Education Program.
                       Subtitle D--Public Housing

Sec. 631. Capacity building for energy-efficient, affordable housing.
Sec. 632. Increase of CDBG public services cap for energy conservation 
                            and efficiency activities.
Sec. 633. FHA mortgage insurance incentives for energy efficient 
                            housing.
Sec. 634. Public housing capital fund.
Sec. 635. Grants for energy-conserving improvements for assisted 
                            housing.
Sec. 636. North American Development Bank.
Sec. 637. Energy-efficient appliances.
Sec. 638. Energy efficiency standards.
Sec. 639. Energy strategy for HUD.
                    TITLE VII--TRANSPORTATION FUELS

                 Subtitle A--Alternative Fuel Programs

Sec. 701. Use of alternative fuels by dual-fueled vehicles.
Sec. 702. Fuel use credits.
Sec. 703. Neighborhood electric vehicles.
Sec. 704. Credits for medium and heavy duty dedicated vehicles.
Sec. 705. Alternative fuel infrastructure.
Sec. 706. Incremental cost allocation.
Sec. 707. Review of Alternative Fuel Programs.
Sec. 708. High occupancy vehicle exception.
Sec. 709. Alternate compliance and flexibility.
                  Subtitle B--Automobile Fuel Economy

Sec. 711. Automobile fuel economy standards.
Sec. 712. Dual-fueled automobiles.
Sec. 713. Federal fleet fuel economy.
Sec. 714. Railroad efficiency.
Sec. 715. Reduction of engine idling in heavy-use vehicles.
                          TITLE VIII--HYDROGEN

                  Subtitle A--Basic Research Programs

Sec. 801. Short Title.
Sec. 802. Matsunaga act amendment.
Sec. 803. Hydrogen transportation and fuel initiative.
Sec. 804. Interagency task force and coordination plan.
Sec. 805. Review by the national academies.
                   Subtitle B--Demonstration Programs

Sec. 811. Definitions.
Sec. 812. Hydrogen vehicle demonstration program.
Sec. 813. Stationary fuel cell demonstration program.
Sec. 814. Hydrogen demonstration programs in national parks.
Sec. 815. International demonstration program.
Sec. 816. Tribal stationary hybrid power demonstration.
Sec. 817. Distributed Generation Pilot Program.
                      Subtitle C--Federal Programs

Sec. 821. Public education and training.
Sec. 822. Hydrogen transition strategic planning.
Sec. 823. Minimum federal fleet requirement.
Sec. 824. Stationary fuel cell purchase requirement.
Sec. 825. Department of energy strategy.
                   TITLE IX--RESEARCH AND DEVELOPMENT

Sec. 901. Short title.
Sec. 902. Goals.
Sec. 903. Definitions.
                     Subtitle A--Energy Efficiency

Sec. 911. Energy efficiency.
Sec. 912. Next generation lighting initiative.
Sec. 913. National building performance initiative.
Sec. 914. Secondary electric vehicle battery use program.
Sec. 915. Energy efficiency science initiative.
       Subtitle B--Distributed Energy and Electric Energy Systems

Sec. 921. Distributed energy and electric energy systems.
Sec. 922. Hybrid distributed power systems.
Sec. 923. High Power Density Industry Program.
Sec. 924. Micro-cogeneration energy technology.
Sec. 925. Distributed energy technology demonstration program.
Sec. 926. Office of electric transmission and distribution.
Sec. 927. Electric Transmission and Distribution Programs.
                      Subtitle C--Renewable Energy

Sec. 931. Renewable energy.
Sec. 932. Bioenergy Programs.
Sec. 933. Biodiesel Engine Testing Program.
Sec. 934. Concentrating Solar Power Research Program.
Sec. 935. Miscellaneous projects.
                       Subtitle D--Nuclear Energy

Sec. 941. Nuclear energy.
Sec. 942. Nuclear Energy Research Programs.
Sec. 943. Advanced fuel cycle initiative.
Sec. 944. University nuclear science and engineering support.
Sec. 945. Security of nuclear facilities.
Sec. 946. Alternatives to industrial radioactive sources.
                       Subtitle E--Fossil Energy

Sec. 951. Fossil energy.
Sec. 952. Oil and Gas Research Programs.
Sec. 953. Research and development for coal mining technologies.
Sec. 954. Coal and Related Technologies Program.
Sec. 955. Complex well technology testing facility.
                          Subtitle F--Science

Sec. 961. Science.
Sec. 962. United States participation in ITER.
Sec. 963. Spallation neutron source.
Sec. 964. Support for science and energy facilities and infrastructure.
Sec. 965. Catalysis Research Program.
Sec. 966. Nanoscale science and engineering research.
Sec. 967. Advanced scientific computing for energy missions.
Sec. 968. Genomes to Life Program.
Sec. 969. Fission and Fusion Energy Materials Research Program.
Sec. 970. Energy-Water Supply Technologies Program.
                   Subtitle G--Energy and Environment

Sec. 971. United States-Mexico energy technology cooperation.
Sec. 972. Coal technology loan.
                         Subtitle H--Management

Sec. 981. Availability of funds.
Sec. 982. Cost sharing.
Sec. 983. Merit review of proposals.
Sec. 984. External Technical Review of Departmental Programs.
Sec. 985. Improved coordination of technology transfer activities.
Sec. 986. Technology Infrastructure Program.
Sec. 987. Small business advocacy and assistance.
Sec. 988. Mobility of scientific and technical personnel.
Sec. 989. National Academy of Sciences Report.
Sec. 990. Outreach.
Sec. 991. Competitive award of management contracts.
Sec. 992. Reprogramming.
Sec. 993. Construction with other laws.
Sec. 994. Improved coordination and management of civilian science and 
                            technology programs.
Sec. 995. Educational Programs in science and mathematics.
Sec. 996. Other transactions authority.
Sec. 997. Report on Research and Development Program Evaluation 
                            Methodologies.
                    TITLE X--PERSONNEL AND TRAINING

Sec. 1001. Workforce trends and traineeship grants.
Sec. 1002. Research fellowships in energy research.
Sec. 1003. Training guidelines for electric energy industry personnel.
Sec. 1004. National center on energy management and building 
                            technologies.
Sec. 1005. Improved access to energy-related scientific and technical 
                            careers.
Sec. 1006. National power plant operations technology and education 
                            center.
Sec. 1007. Federal mine inspectors.
                         TITLE XI--ELECTRICITY

Sec. 1101. Definitions.
                        Subtitle A--Reliability

Sec. 1111. Electric reliability standards.
                      Subtitle B--Regional Markets

Sec. 1121. Implementation date for proposed rulemaking for standard 
                            market design.
Sec. 1122. Sense of the Congress on Regional Transmission 
                            Organizations.
Sec. 1123. Federal utility participation in regional transmission 
                            organizations.
Sec. 1124. Regional consideration of competitive wholesale markets.
   Subtitle C--Improving Transmission Access and Protecting Service 
                              Obligations

Sec. 1131. Service obligation security and parity.
Sec. 1132. Open non-discriminatory access.
Sec. 1133. Transmission infrastructure investment.
Subtitle D--Amendments to the Public Utility Regulatory Policies Act of 
                                  1978

Sec. 1141. Net metering.
Sec. 1142. Smart metering.
Sec. 1143. Adoption of additional standards.
Sec. 1144. Technical assistance.
Sec. 1145. Cogeneration and small power production purchase and sale 
                            requirements.
Sec. 1146. Recovery of costs.
Subtitle E--Provisions Regarding the Public Utility Holding Company Act 
                                of 1935

Sec. 1151. Definitions.
Sec. 1152. Repeal of the Public Utility Holding Company Act of 1935.
Sec. 1153. Federal access to books and records.
Sec. 1154. State access to books and records.
Sec. 1155. Exemption authority.
Sec. 1156. Affiliate transactions.
Sec. 1157. Applicability.
Sec. 1158. Effect on other regulations.
Sec. 1159. Enforcement.
Sec. 1160. Savings provisions.
Sec. 1161. Implementation.
Sec. 1162. Transfer of resources.
Sec. 1163. Effective date.
Sec. 1164. Conforming amendment to the Federal Power Act.
   Subtitle F--Market Transparency, Anti-Manipulation and Enforcement

Sec. 1171. Market transparency rules.
Sec. 1172. Market manipulation.
Sec. 1173. Enforcement.
Sec. 1174. Refund effective date.
                    Subtitle G--Consumer Protections

Sec. 1181. Consumer privacy.
Sec. 1182. Unfair trade practices.
Sec. 1183. Definitions.
                    Subtitle H--Technical Amendments

Sec. 1191. Technical amendments.

                          TITLE I--OIL AND GAS

                    Subtitle A--Production Incentives

SEC. 101. PERMANENT AUTHORITY TO OPERATE THE STRATEGIC PETROLEUM 
              RESERVE AND OTHER ENERGY PROGRAMS.

    (a) Amendment to Title I of the Energy Policy and Conservation 
Act.--Title I of the Energy Policy and Conservation Act (42 U.S.C. 6211 
et seq.) is amended--
            (1) by striking section 166 (42 U.S.C. 6246) and 
        inserting--

                   ``authorization of appropriations

    ``Sec. 166. 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.'';
            (2) by striking section 186 (42 U.S.C. 6250(e)); and
            (3) by striking part E (42 U.S.C. 6251); relating to the 
        expiration of title I of the Act).
    (b) Amendment to Title II of the Energy Policy and Conservation 
Act.--Title II of the Energy Policy and Conservation Act (42 U.S.C. 
6271 et seq.) is amended--
            (1) by striking section 256(h) (42 U.S.C. 6276(h)) and 
        inserting--
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as may be necessary to carry 
out this part, to remain available until expended.'';
            (2) by inserting before section 273 (42 U.S.C. 6283) the 
        following:

          ``Part C--Summer Fill and Fuel Budgeting Programs'';

            (3) by striking section 273(e) (42 U.S.C. 6283(e)); 
        relating to the expiration of summer fill and fuel budgeting 
        programs); and
            (4) by striking part D (42 U.S.C. 6285); relating to the 
        expiration of title II of the Act).
    (c) Technical Amendments.--The table of contents for the Energy 
Policy and Conservation Act is amended--
            (1) by amending the items relating to part D of title I to 
        read as follows:

              ``PART D--NORTHEAST HOME HEATING OIL RESERVE

``Sec. 181. Establishment.
``Sec. 182. Authority.
``Sec. 183. Conditions for release; plan.
``Sec. 184. Northeast Home Heating Oil Reserve Account.
``Sec. 185. Exemptions.'';
            (2) by amending the items relating to part C of title II to 
        read as follows:

           ``PART C--SUMMER FILL AND FUEL BUDGETING PROGRAMS

``Sec. 273. Summer fill and fuel budgeting programs.'';
        and
            (3) by striking the items relating to part D of title II.
    (d) Northeast Home Heating Oil.--Section 183(b)(1) of the Energy 
Policy and Conservation Act (42 U.S.C. 6250(b)(1)) is amended by 
striking all after ``increases'' through to ``mid-October through 
March'' and inserting ``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)''.

  SEC. 102. STUDY ON INVENTORY OF PETROLEUM AND NATURAL GAS STORAGE.

    (a) Definition.--For purposes of this section ``petroleum'' means 
crude oil, motor gasoline, jet fuel, distillates and propane.
    (b) Study.--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.
    (c) Contents.--The study shall address--
            (1) historical normal ranges for petroleum and natural gas 
        inventory levels;
            (2) historical and projected storage capacity trends;
            (3) estimated operation inventory levels below which 
        outages, delivery slowdown, rationing, interruptions in service 
        or other indicators of shortage begin to appear;
            (4) explanations for inventory levels dropping below normal 
        ranges; and
            (5) the ability of industry to meet U.S. demand for 
        petroleum and natural gas without shortages or price spikes, 
        when inventory levels are below normal ranges.
    (d) Report to Congress.--Not later than one year from 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.

SEC. 103. PROGRAM ON OIL AND GAS ROYALTIES IN KIND.

    (a) Applicability of Section.--Notwithstanding any other provision 
of law, the provisions of this section shall apply to all royalties-in-
kind accepted by the Secretary (referred to in this section as 
``Secretary'') under any Federal oil or gas lease or permit under 
section 36 of the Mineral Leasing Act (30 U.S.C. 192), section 27 of 
the Outer Continental Shelf Lands Act (43 U.S.C. 1353), or any other 
mineral leasing law beginning on the date of the enactment of this Act 
through September 30, 2013.
    (b) Terms and Conditions.--All royalty accruing to the United 
States under any Federal oil or gas lease or permit under the Mineral 
Leasing Act (30 U.S.C. 181 et seq.) or the Outer Continental Shelf 
Lands Act (43 U.S.C. 1331 et seq.) shall, on the demand of the 
Secretary, be paid in oil or gas. If the Secretary makes such a demand, 
the following provisions apply to such payment:
            (1) Delivery by, or on behalf of, the lessee of the royalty 
        amount and quality due under the lease satisfies the lessee's 
        royalty obligation for the amount delivered, except that 
        transportation and processing reimbursements paid to, or 
        deductions claimed by, the lessee shall be subject to review 
        and audit.
            (2) Royalty production shall be placed in marketable 
        condition by the lessee at no cost to the United States.
            (3) The Secretary may--
                    (A) 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 (43 U.S.C. 1353(a)(3)) for 
                not less than the market price; and
                    (B) transport or process (or both) any royalty 
                production taken in kind.
            (4) The Secretary may, notwithstanding section 3302 of 
        title 31, United States Code, retain and use a portion of the 
        revenues from the sale of oil and gas royalties taken in kind 
        that otherwise would be deposited to miscellaneous receipts, 
        without regard to fiscal year limitation, or may use royalty 
        production, to pay the cost of--
                    (A) transporting the royalty production;
                    (B) processing the royalty production;
                    (C) disposing of the royalty production; or
                    (D) any combination of transporting, processing, 
                and disposing of the royalty production.
            (5) The Secretary may not use revenues from the sale of oil 
        and gas royalties taken in kind to pay for personnel, travel, 
        or other administrative costs of the Federal Government.
            (6) Notwithstanding the provisions of paragraph 5, the 
        Secretary may use a portion of the revenues from the sale of 
        oil royalties taken in kind, without fiscal year limitation, to 
        pay transportation costs, salaries, and other administrative 
        costs directly related to filling the Strategic Petroleum 
        Reserve.
    (c) Reimbursement of Cost.--If the lessee, pursuant to an agreement 
with the United States or as provided in the lease, processes the 
royalty gas or delivers the royalty oil or gas at a point not on or 
adjacent to the lease area, the Secretary shall--
            (1) reimburse the lessee for the reasonable costs of 
        transportation (not including gathering) from the lease to the 
        point of delivery or for processing costs; or
            (2) allow the lessee to deduct such transportation or 
        processing costs in reporting and paying royalties in value for 
        other Federal oil and gas leases.
    (d) Benefit to the United States Required.--The Secretary may 
receive oil or gas royalties in kind only if the Secretary determines 
that receiving such royalties provides benefits to the United States 
greater than or equal to those likely to have been received had 
royalties been taken in value.
    (e) Report to Congress.--
            (1) No later than September 30, 2005, the Secretary shall 
        provide a report to Congress that addresses--
                    (A) actions taken to develop business 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
                    (B) future royalty-in-kind business operation plans 
                and objectives.
            (2) For each of the 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 
        subsections (h), the Secretary shall provide a report to 
        Congress describing--
                    (A) the methodology or methodologies used by the 
                Secretary to determine compliance with subsection (d) , 
                including performance standard for comparing amounts 
                received by the United States derived from such 
                royalties-in-kind to amount likely to have been 
                received had royalties been taken in value;
                    (B) 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;
                    (C) actual amounts received by the United States 
                derived from taking royalties-in-kind and cost 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
                    (D) an evaluation of other relevant public benefits 
                or detriments associated with taking royalties-in-kind.
    (f) Deduction of Expenses.--
            (1) Before making payments under section 35 of the Mineral 
        Leasing Act (30 U.S.C. 191) or section 8(g) of the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1337(g)) of revenues 
        derived from the sale of royalty production taken in kind from 
        a lease, the Secretary of the Interior shall deduct amounts 
        paid or deducted under subsections (b)(4) and (c), and shall 
        deposit such amounts to miscellaneous receipts.
            (2) If 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.
    (g) Consultation With States.--The Secretary shall consult--
            (1) with a State before conducting a royalty-in-kind 
        program under this section within the State, and may delegate 
        management of any portion of the Federal royalty in-kind 
        program to such State except as otherwise prohibited by Federal 
        law; and
            (2) 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.
    (h) Provisions for Small Refineries.--
            (1) If the Secretary determines that sufficient supplies of 
        crude oil are not available in the open market to refineries 
        not having their own source of supply for crude oil, the 
        Secretary may grant preference to such refineries in the sale 
        of any royalty oil accruing or reserved to the United States 
        under Federal oil and gas leases issued under any mineral 
        leasing law, for processing or use in such refineries at 
        private sale at not less than the market price.
            (2) In disposing of oil under this subsection, the 
        Secretary may prorate such oil among such refineries in the 
        area in which the oil is produced.
    (i) Disposition to Federal Agencies.--
            (1) Any royalty oil or gas taken by the Secretary in kind 
        from onshore oil and gas leases may be sold at not less than 
        market price to any department or agency of the United States.
            (2) Any royalty oil or gas taken in kind from Federal oil 
        and gas leases on the outer Continental Shelf may be disposed 
        of only under section 27 of the Outer Continental Shelf Lands 
        Act (43 U.S.C. 1353).
    (j) Preference for Federal Low-Income Energy Assistance Programs.--
In disposing of royalty oil or gas taken in kind under this section, 
the Secretary may grant a preference to any person, including any State 
or Federal agency, for the purpose of providing additional resources to 
any Federal low-income energy assistance program.

SEC. 104. MARGINAL PROPERTY PRODUCTION INCENTIVES.

    (a) Marginal Property Defined.--Until such time as the Secretary of 
the Interior issues rules under subsection (e) that prescribe a 
different definition, for purposes of this section, the term ``marginal 
property'' 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 three most recent production months, 
including only those wells that produce more than half the days in the 
three most recent production months.
    (b) Conditions for Reduction of Royalty Rate.--Until such time as 
the Secretary of the Interior promulgates rules under subsection (e) 
that prescribe different thresholds or standards, the Secretary shall 
reduce the royalty rate on--
            (1) 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
            (2) 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.
    (c) Reduced Royalty Rate.--
            (1) When a marginal property meets the conditions specified 
        in subsection (b), the royalty rate shall be the lesser of--
                    (A) 5 percent; or
                    (B) the applicable rate under any other statutory 
                or regulatory royalty relief provision that applies to 
                the affected production.
            (2) The reduced royalty rate under this subsection shall be 
        effective on the first day of the production month following 
        the date on which the applicable price standard prescribed in 
        subsection (b) is met.
    (d) Termination of Reduced Royalty Rate.--A royalty rate prescribed 
in subsection (d)(1)(A) shall terminate--
            (1) on oil production from a marginal property, on the 
        first day of the production month following the date on which--
                    (A) the spot price of West Texas Intermediate crude 
                oil at Cushing, Oklahoma, on average, exceeds $15 per 
                barrel for 90 consecutive trading days, or
                    (B) the property no longer qualifies as a marginal 
                property under subsection (a); and
            (2) on gas production from a marginal property, on the 
        first day of the production month following the date on which--
                    (A) 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
                    (B) the property no longer qualifies as a marginal 
                property under subsection (a).
    (e) Rules Prescribing Different Relief.--
            (1) The Secretary of the Interior, after consultation with 
        the Secretary of Energy, may by rule 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).
            (2) The Secretary of the Interior, after consultation with 
        the Secretary of Energy, and within 1 year after the date of 
        enactment of this Act, shall, by rule,--
                    (A) 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
                    (B) define what constitutes a marginal property on 
                the outer Continental Shelf for purposes of this 
                section.
            (3) In promulgating rules under this subsection, the 
        Secretary of the Interior may consider--
                    (A) oil and gas prices and market trends;
                    (B) production costs;
                    (C) abandonment costs;
                    (D) Federal and State tax provisions and their 
                effects on production economics;
                    (E) other royalty relief programs; and
                    (F) other relevant matters.
    (f) Savings Provision.--Nothing in this section shall prevent a 
lessee from receiving royalty relief or a royalty reduction pursuant to 
any other law or regulation that provides more relief than the amounts 
provided by this section.

SEC. 105. COMPREHENSIVE INVENTORY OF OCS OIL AND NATURAL GAS RESOURCES.

    (a) In General.--The Secretary of the Interior shall conduct an 
inventory and analysis of oil and natural gas resources beneath all of 
the waters of the United States Outer Continental Shelf (``OCS''). The 
inventory and analysis shall--
            (1) use available data on oil and gas resources in areas 
        offshore of Mexico and Canada that will provide information on 
        trends of oil and gas accumulation in areas of the OCS;
            (2) use any available technology, except drilling, but 
        including 3-D seismic technology to obtain accurate resource 
        estimates;
            (3) analyze how resource estimates in OCS areas have 
        changed over time in regards to gathering geological and 
        geophysical data, initial exploration, or full field 
        development, including areas such as the deepwater and subsalt 
        areas in the Gulf of Mexico;
            (4) estimate the effect that understated oil and gas 
        resource inventories have on domestic energy investments; and
            (5) identify and explain how legislative, regulatory, and 
        administrative programs or processes restrict or impede the 
        development of identified resources and the extent that they 
        affect domestic supply, such as moratoria, lease terms and 
        conditions, operational stipulations and requirements, approval 
        delays by the federal government and coastal states, and local 
        zoning restrictions for onshore processing facilities and 
        pipeline landings.
    (b) Reports.--The Secretary of Interior shall submit a report to 
the Congress on the inventory of estimates and the analysis of 
restrictions or impediments, together with any recommendations, within 
six months of the date of enactment of the section. The report shall be 
publically available and updated at least every five years.

SEC. 106. ROYALTY RELIEF FOR DEEP WATER PRODUCTION.

    (a) In General.--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 that portion of the Eastern Planning Area of the Gulf 
of Mexico encompassing whole lease blocks lying west of 87 degrees, 30 
minutes West longitude, any oil or gas lease sale under the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) occurring within 5 
years after the date of the enactment of this Act shall use the bidding 
system authorized in section 8(a)(1)(H) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337(a)(1)(H)), except that the suspension of 
royalties shall be set at a volume of not less than--
            (1) 5 million barrels of oil equivalent for each lease in 
        water depths of 400 to 800 meters;
            (2) 9 million barrels of oil equivalent for each lease in 
        water depths of 800 to 1,600 meters; and
            (3) 12 million barrels of oil equivalent for each lease in 
        water depths greater than 1,600 meters.

SEC. 107. ALASKA OFFSHORE ROYALTY SUSPENSION.

    Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1337), is amended with the following: add ``and in the Planning 
Areas offshore Alaska'' after ``West longitude'' and before ``the 
Secretary''.

SEC. 108. ORPHANED, ABANDONED OR IDLED WELLS ON FEDERAL LANDS.

    (a) In General.--The Secretary of the Interior, in cooperation with 
the Secretary of Agriculture, shall establish a program within 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 lands 
administered by the land management agencies within the Department of 
the Interior and Agriculture. The program shall--
            (1) include a means of ranking orphaned, abandoned, or 
        idled well sites for priority in remediation, reclamation and 
        closure, based on public health and safety, potential 
        environmental harm, and other land use priorities;
            (2) 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
            (3) 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.
    (b) Cooperation and Consultations.--In carrying out this program, 
the Secretary of the Interior shall work cooperatively with the 
Secretary of Agriculture and the States within which the Federal lands 
are located and consult with the Secretary of Energy and the Interstate 
Oil and Gas Compact Commission.
    (c) Plan.--Within 1 year after the date of enactment of the 
section, the Secretary of the Interior, in cooperation with the 
Secretary of Agriculture, shall prepare a plan for carrying out the 
program established under subsection (a) and transmit copies of the 
plan to the Congress.
    (d) Technical Assistance Program for Non-Federal Lands.--
            (1) The Secretary of Energy shall establish a program to 
        provide technical assistance to the various oil and gas 
        producing States to facilitate State efforts over a 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 
        lands.
            (2) The Secretary shall work with the States, through the 
        Interstate Oil and Gas Compact Commission, to assist the States 
        in quantifying and mitigating environmental risks of onshore 
        orphaned abandoned oil or gas wells on State and private lands.
            (3) The program shall include--
                    (A) mechanisms to facilitate identification, if 
                possible, of the persons or other entities 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;
                    (B) 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; and
                    (C) information and training programs on best 
                practices for remediation of different types of sites.
    (e) Definition.--For purposes of this section, a well is idled if 
it has been non-operational for 7 years and there is no anticipated 
beneficial use of the well.
    (f) Authorization.--To carry out this section there is authorized 
to be appropriated to the Secretary of the Interior $25,000,000 for 
each of the fiscal years 2004 through 2008. Of the amounts authorized, 
$5,000,000 is authorized for activities under subsection (d).

SEC. 109. INCENTIVES FOR NATURAL GAS PRODUCTION FROM DEEP WELLS IN THE 
              SHALLOW WATERS OF THE GULF OF MEXICO.

    (a) Royalty Incentive Regulations.--Not later than 90 days after 
enactment, the Secretary of the Interior shall promulgate final 
regulations providing royalty incentives for natural gas produced from 
deep wells, as defined by the Secretary, on oil and gas leases issued 
under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) 
and issued prior to January 1, 2001, in shallow waters of the Gulf of 
Mexico, wholly west of 87 degrees, 30 minutes West longitude that are 
less than 200 meters deep.
    (b) Royalty Incentive Regulations for Ultra-Deep Gas Wells.--
            (1) No later than 90 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 (43 U.S.C. 1331 et seq.), the Secretary of the 
        Interior shall promulgate new regulations granting royalty 
        relief suspension volumes of not less than 35 billion cubic 
        feet with respect to the production of natural gas from `ultra 
        deep wells' on leases issued prior to 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. 
        For purposes of this subsection, the term `ultra deep wells' 
        means wells 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.
            (2) The Secretary shall not grant the royalty incentives 
        outlined in this subsection if the average annual NYMEX natural 
        gas price exceeds for one full calendar year the threshold 
        price of $5 per million Btu, adjusted from the year 2000 for 
        inflation.
            (3) This subsection shall have no force or effect after the 
        end of the 5-year period beginning on the date of the enactment 
        of this Act.

SEC. 110. ALTERNATE ENERGY-RELATED USES ON THE OUTER CONTINENTAL SHELF.

    (a) Amendment to Outer Continental Shelf Lands Act.--Section 8 of 
the Outer Continental Shelf Lands Act (43 U.S.C. 1337) is amended by 
adding at the end the following new subsection:
    ``(p) Easements or Rights-of-way for Energy and Related Purposes.--
            ``(1) The Secretary may grant an easement or right-of-way 
        on the outer Continental Shelf for activities not otherwise 
        authorized in this Act, the Deepwater Port Act of 1974 (33 
        U.S.C. 1501 et seq.), or the Ocean Thermal Energy Conversion 
        Act of 1980 (42 U.S.C. 9101 et seq.), or other applicable law 
        when such activities--
                    ``(A) support exploration, development, or 
                production of oil or natural gas, except that such 
                easements or rights-of-way shall not be granted in 
                areas where oil and gas preleasing, leasing and related 
                activities are prohibited by a Congressional moratorium 
                or a withdrawal pursuant to section 12 of this Act;
                    ``(B) support transportation of oil or natural gas;
                    ``(C) produce or support production, 
                transportation, or transmission of energy from sources 
                other than oil and gas; or
                    ``(D) use facilities currently or previously used 
                for activities authorized under this Act.
            ``(2) The Secretary shall promulgate regulations to ensure 
        that activities authorized under this subsection are conducted 
        in a manner that provides for safety, protection of the 
        environment, conservation of the natural resources of the outer 
        Continental Shelf, appropriate coordination with other Federal 
        agencies, and a fair return to the Federal government for any 
        easement or right-of-way granted under this subsection. Such 
        regulations shall establish procedures for--
                    (A) public notice and comment on proposals to be 
                permitted pursuant to this subsection;
                    (B) consultation and review by State and local 
                governments that may be impacted by activities to be 
                permitted pursuant to this subsection;
                    (C) consideration of the coastal zone management 
                program being developed or administered by an affected 
                coastal State pursuant to section 305 or section 306 of 
                the Coastal Zone Management Act of 1972 (16 U.S.C. 
                1454, 1455); and
                    (D) consultation with the Secretary of Defense and 
                other appropriate agencies prior to the issuance of an 
                easement or right-of-way under this subsection 
                concerning issues related to national security and 
                navigational obstruction.
            (3) The Secretary shall require the holder of an 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 may deem necessary to protect the interests of the 
        United States.
            ``(4) This subsection shall not apply to any area within 
        the exterior boundaries of any unit of the National Park 
        System, National Wildlife Refuge System, or National Marine 
        Sanctuary System, or any National Monument.
            ``(5) Nothing in this subsection shall be construed to 
        amend or repeal, expressly by implication, the applicability of 
        any other law, including but not limited to, the Coastal Zone 
        Management Act (16 U.S.C. 1455 et seq.) or the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).''.
    (b) Conforming amendment.--The text of the heading for section 8 of 
the Outer Continental Shelf Lands Act is amended to read as follows: 
``Leases, Easements, and Rights-of-Way on the Outer Continental 
Shelf.''.

SEC. 111. COASTAL IMPACT ASSISTANCE.

    The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is 
amended by adding at the end:

``SEC. 32 COASTAL IMPACT ASSISTANCE FAIRNESS PROGRAM.

    ``(a) Definitions.--When used in this section:
            ``(1) The term `coastal political subdivision' means a 
        county, parish, or any equivalent subdivision of a Producing 
        Coastal State in all or part of which subdivision lies within 
        the coastal zone (as defined in section 304(1) of the Coastal 
        Zone Management Act (16 U.S.C. 1453(1))) and within a distance 
        of 200 miles from the geographic center of any leased tract.
            ``(2) The term `coastal population' means the population of 
        all political subdivisions, as determined by the most recent 
        official data of the Census Bureau, contained in whole or in 
        part within the designated coastal boundary of a State as 
        defined in a State's coastal zone management program under the 
        Coastal Zone Management Act (16 U.S.C. 1451 et seq.).
            ``(3) The term `Coastal State' has the same meaning as 
        provided by subsection 304(4) of the Coastal Zone Management 
        Act (16 U.S.C. 1453(4)).
            ``(4) The term `coastline' has the same meaning as the term 
        `coast line' as defined in subsection 2(c) of the Submerged 
        Lands Act (43 U.S.C. 1301(c)).
            ``(5) The term `distance' means the minimum great circle 
        distance, measured in statute miles.
            ``(6) The term `leased tract' 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.
            ``(7) The term `Producing Coastal State' means a Coastal 
        State with a coastal seaward boundary within 200 miles from the 
        geographic center of a leased tract other than a leased tract 
        within any area of the Outer Continental Shelf where a 
        moratorium on new leasing was in effect as of January 1, 2002 
        unless the lease was issued prior to the establishment of 
the moratorium and was in production on January 1, 2002.
            ``(8) The term `qualified Outer Continental Shelf revenues' 
        means all amounts received by the United States from each 
        leased tract or portion of a leased tract lying seaward of the 
        zone defined and governed by section 8(g) of this Act, or lying 
        within such zone but to which section 8(g) does not apply, the 
        geographic center of which lies within a distance of 200 miles 
        from any part of the coastline of any Producing Coastal State, 
        including bonus bids, rents, royalties (including payments for 
        royalties taken in kind and sold), net profit share payments, 
        and related late payment interest. Such term shall only apply 
        to leases issued after January 1, 2003 and revenues from 
        existing leases that occurs after January 1, 2003. Such term 
        does not include any revenues from a leased tract or portion of 
        a leased tract that is included within any area of the Outer 
        Continental Shelf where a moratorium on new leasing was in 
        effect as of January 1, 2002, unless the lease was issued prior 
        to the establishment of the moratorium and was in production on 
        January 1, 2002.
            ``(9) The term `Secretary' means the Secretary of 
        Interior.''
    ``(b) Authorization.--For fiscal years 2004 through 2009, an amount 
equal to not more than 12.5 percent of qualified Outer Continental 
Shelf revenues is authorized to be appropriated for the purposes of 
this section.
    ``(c) Impact Assistance Payments to States and Political 
Subdivisions.--The Secretary shall make payments from the amounts 
available under this section to Producing Coastal States with an 
approved Coastal Impact Assistance Plan, and to coastal political 
subdivisions as follows:
            ``(1) Of the amounts appropriated, the allocation for each 
        Producing Coastal State shall be calculated based on the ratio 
        of qualified Outer Continental Shelf revenues generated off the 
        coastline of the Producing Coastal State to the qualified Outer 
        Continental Shelf revenues generated off the coastlines of all 
        Producing Coastal States for each fiscal year. Where there is 
        more than one Producing Coastal State within 200 miles of a 
        leased tract, the amount of each Producing Coastal State's 
        allocation for such leased tract shall be inversely 
        proportional to the distance between the nearest point on the 
        coastline of such State and the geographic center of each 
        leased tract or portion of the leased tract (to the nearest 
        whole mile) that is within 200 miles of that coastline, as 
        determined by the Secretary.
            ``(2) Thirty-five percent of each Producing Coastal State's 
        allocable share as determined under paragraph (1) shall be paid 
        directly to the coastal political subdivisions by the Secretary 
        based on the following formula:
                    ``(A) Twenty-five percent shall be allocated based 
                on the ratio of such coastal political subdivision's 
                coastal population to the coastal population of all 
                coastal political subdivisions in the Producing Coastal 
                State.
                    ``(B) Twenty-five percent shall be allocated based 
                on the ratio of such coastal political subdivision's 
                coastline miles to the coastline miles of a coastal 
                political subdivision in the Producing Coastal State 
                except that for those coastal political subdivisions in 
                the State of Louisiana without a coastline, the 
                coastline for purposes of this element of the formula 
                shall be the average length of the coastline of the 
                remaining coastal subdivisions in the state.
                    ``(C) Fifty percent shall be allocated based on the 
                relative distance of such coastal political subdivision 
                from any leased tract used to calculate the Producing 
                Coastal State's allocation using ratios that are 
                inversely proportional to the distance between the 
                point in the coastal political subdivision closest to 
                the geographic center of each leased tract or portion, 
                as determined by the Secretary, except that in the 
                State of Alaska, the funds for this element of the 
                formula shall be divided equally among the two closest 
                coastal political subdivisions. For purposes of the 
                calculations under this subparagraph, a leased tract or 
                portion of a leased tract shall be excluded if the 
                leased tract or portion is located in a geographic area 
                where a moratorium on new leasing was in effect on 
                January 1, 2002, unless the lease was issued prior to 
                the establishment of the moratorium and was in 
                production on January 1, 2002.
            ``(3) Any amount allocated to a Producing Coastal State or 
        coastal political subdivision but not disbursed because of a 
        failure to have an approved Coastal Impact Assistance Plan 
        under this section shall be allocated equally by the Secretary 
        among all other Producing Coastal States in a manner consistent 
        with this subsection except that the Secretary shall hold in 
        escrow such amount until the final resolution of any appeal 
        regarding the disapproval of a plan submitted under this 
        section. The Secretary may waive the provisions of this 
        paragraph and hold a Producing Coastal State's allocable share 
        in escrow if the Secretary determines that such State is making 
        a good faith effort to develop and submit, or update, a Coastal 
        Impact Assistance Plan.
            ``(4) For purposes of this subsection, calculations of 
        payments for fiscal years 2004 through 2006 shall be made using 
        qualified Outer Continental Shelf revenues received in fiscal 
        year 2003, and calculations of payments for fiscal years 2007 
        through 2009 shall be made using qualified Outer Continental 
        Shelf revenues received in fiscal year 2006.
    ``(d) Coastal Impact Assistance Plan.--
            ``(1) The Governor of each Producing Coastal State shall 
        prepare, and submit to the Secretary, a Coastal Impact 
        Assistance Plan. The Governor shall solicit local input and 
        shall provide for public participation in the development of 
        the plan. The plan shall be submitted to the Secretary by July 
        1, 2004. Amounts received by Producing Coastal States and 
        coastal political subdivisions may be used only for the 
        purposes specified in the Producing Coastal State's Coastal 
        Impact Assistance Plan.
            ``(2) The Secretary shall approve a plan under paragraph 
        (1) prior to disbursement of amounts under this section. The 
        Secretary shall approve the plan if the Secretary determines 
        that the plan is consistent with the uses set forth in 
        subsection (f) of this section and if the plan contains--
                    ``(A) the name of the State agency that will have 
                the authority to represent and act for the State in 
                dealing with the Secretary for purposes of this 
                section;
                    ``(B) a program for the implementation of the plan 
                which describes how the amounts provided under this 
                section will be used;
                    ``(C) a contact for each political subdivision and 
                description of how coastal political subdivisions will 
                use amounts provided under this section, including a 
                certification by the Governor that such uses are 
                consistent with the requirements of this section;
                    ``(D) certification by the Governor that ample 
                opportunity has been accorded for public participation 
                in the development and revision of the plan; and
                    ``(E) measures for taking into account other 
                relevant Federal resources and programs.
            ``(3) The Secretary shall approve or disapprove each plan 
        or amendment within 90 days of its submission.
            ``(4) Any amendment to the plan shall be prepared in 
        accordance with the requirements of this subsection and shall 
        be submitted to the Secretary for approval or disapproval.
    ``(e) Authorized Uses.--Producing Coastal States and coastal 
political subdivisions shall use amounts provided under this section, 
including any such amounts deposited in a State or coastal political 
subdivision administered trust fund dedicated to uses consistent with 
this subsection, in compliance with Federal and State law and only for 
one or more of the following purposes--
            ``(1) projects and activities for the conservation, 
        protection or restoration of coastal areas including wetlands;
            ``(2) mitigating damage to fish, wildlife or natural 
        resources;
            ``(3) planning assistance and administrative costs of 
        complying with the provisions of this section;
            ``(4) implementation of federally approved marine, coastal, 
        or comprehensive conservation management plans; and
            ``(5) mitigating impacts of Outer Continental Shelf 
        activities through funding onshore infrastructure and public 
        service needs.
    (f) Compliance With Authorized Uses.--If the Secretary determines 
that any expenditure made by a Producing Coastal State or coastal 
political subdivision is not consistent with the uses authorized in 
subsection (e) of this section, the Secretary shall not disburse any 
further amounts under this section to that Producing Coastal State or 
coastal political subdivision until the amounts used for the 
inconsistent expenditure have been repaid or obligated for authorized 
uses.

SEC. 112. NATIONAL ENERGY RESOURCE DATABASE.

    (a) Short Title.--This section may be cited as the ``National 
Energy Data Preservation Program Act of 2003''.
    (b) Program.--The Secretary of the Interior (in this section, 
referred to as ``Secretary'') shall carry out a National Energy Data 
Preservation Program in accordance with this section--
            (1) to archive geologic, geophysical, and engineering data 
        and samples related to energy resources including oil, gas, 
        coal, and geothermal resources;
            (2) to provide a national catalog of such archival 
        material; and
            (3) to provide technical assistance related to the archival 
        material.
    (c) Energy Data Archive System.--
            (1) The Secretary shall establish, as a component of the 
        Program, an energy data archive system, which shall provide for 
        the storage, preservation, and archiving of subsurface, and in 
        limited cases surface, geological, geophysical and engineering 
        data and samples. The Secretary, in consultation with the 
        Association of American State Geologists and interested members 
        of the public, shall develop guidelines relating to the energy 
        data archive system, including the types of data and samples to 
        be preserved.
            (2) The system shall be comprised of State agencies and 
        agencies within the Department of the Interior that maintain 
        geological and geophysical data and samples regarding energy 
        resources and 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.
            (3) The Secretary may not designate a State agency as a 
        component of the energy data archive system unless it is the 
        agency that acts as the geological survey in the State.
            (4) The energy data archive system shall provide for the 
        archiving of relevant subsurface data and samples obtained 
        during energy exploration and production operations on Federal 
        lands--
                    (A) in the most appropriate repository designated 
                under paragraph (2), with preference being given to 
                archiving data in the State in which the data was 
                collected; and
                    (B) consistent with all applicable law and 
                requirements relating to confidentiality and 
                proprietary data.
            (5)(A) Subject to the availability of appropriations, the 
        Secretary shall provide financial assistance to a State agency 
        that is designated under paragraph (2) for providing facilities 
        to archive energy material.
            (B) The Secretary, in consultation with the Association of 
        American State Geologists and interested members of the public, 
        shall establish procedures for providing assistance under this 
        paragraph. The procedures shall be designed to ensure that such 
        assistance primarily supports the expansion of data and 
        material archives and the collection and preservation of new 
        data and samples.
    (d) National Catalog.--
            (1) As soon as practicable after the date of the enactment 
        of this section, the Secretary shall develop and maintain, as a 
        component of the Program, a national catalog that identifies--
                    (A) energy data and samples available in the energy 
                data archive system established under subsection (c);
                    (B) the repository for particular material in such 
                system; and (C) the means of accessing the material.
            (2) The Secretary shall make the national catalog 
        accessible to the public on the site of the Survey on the World 
        Wide Web, consistent with all applicable requirements related 
        to confidentiality and proprietary data.
            (3) The Secretary may carry out the requirements of this 
        subsection by contract or agreement with appropriate persons.
    (e) Technical Assistance.--
            (1) Subject to the availability of appropriations, as a 
        component of the Program, the Secretary shall provide financial 
        assistance to any State agency designated under subsection 
        (c)(2) to provide technical assistance to enhance 
        understanding, interpretation, and use of materials archived in 
        the energy data archive system established under subsection 
        (c).
            (2) The Secretary, in consultation with the Association of 
        American State Geologists and interested members of the public, 
        shall develop a process, which shall involve the participation 
        of representatives of relevant Federal and State agencies, for 
        the approval of financial assistance to State agencies under 
        this subsection.
    (f) Costs.--
            (1) The Federal share of the cost of an activity carried 
        out with assistance under subsections (c) or (e) shall be no 
        more than 50 percent of the total cost of that activity.
            (2) The Secretary--
                    (A) may accept private contributions of property 
                and services for technical assistance and archive 
                activities conducted under this section; and (B) may 
                apply the value of such contributions to the non-
                Federal share of the costs of such technical assistance 
                and archive activities.
    (g) Reports.--
            (1) Within year after the date of the enactment of this 
        Act, the Secretary shall submit an initial report to the 
        Congress setting forth a plan for the implementation of the 
        Program.
            (2) Not later than 90 days after the end of the first 
        fiscal year beginning after the submission of the report under 
        paragraph (1) and after the end of each fiscal year thereafter, 
        the Secretary shall submit a report to the Congress describing 
        the status of the Program and evaluating progress achieved 
        during the preceding fiscal year in developing and carrying out 
        the Program.
            (3) The Secretary shall consult with the Association of 
        American State Geologists and interested members of the public 
        in preparing the reports required by this subsection.
    (h) Definitions.--As used in this section, the term:
            (1) ``Association of American State Geologists'' means the 
        organization of the chief executives of the State geological 
        surveys.
            (2) ``Secretary'' means the Secretary of the Interior 
        acting through the Director of the United States Geological 
        Survey.
            (3) ``Program'' means the National Energy Data Preservation 
        Program carried out under this section.
            (4) ``Survey'' means the United States Geological Survey.
    (i) Maintenance of State Effort.--It is the intent of the 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.
    (j) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary $30,000,000 for each of fiscal years 2003 
through 2007 for carrying out this section.

SEC. 113. OIL AND GAS LEASE ACREAGE LIMITATION.

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

SEC. 114. ASSESSMENT OF DEPENDENCE OF STATE OF HAWAII ON OIL.

    (a) Assessment. 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--
            (1) the short- and long-term prospects for crude oil supply 
        disruption and price volatility and potential impacts on the 
        economy of Hawaii;
            (2) the economic relationship between oil-fired generation 
        of electricity from residual fuel and refined petroleum 
        products consumed for ground, marine, and air transportation;
            (3) the technical and economic feasibility of increasing 
        the contribution of renewable energy resources for generation 
        of electricity, on an island-by-island basis, including--
                    (A) siting and facility configuration;
                    (B) environmental, operational, and safety 
                considerations;
                    (C) the availability of technology;
                    (D) effects on the utility system including 
                reliability;
                    (E) infrastructure and transport requirements;
                    (F) community support; and
                    (G) other factors affection the economic impact of 
                such an increase and any effect on the economic 
                relationship described in paragraph (2);
            (4) the technical and economic feasibility of using 
        liquefied natural gas to displace residual fuel oil for 
        electric generation, including neighbor island opportunities, 
        and the effect of such displacement on the economic 
        relationship described in paragraph (2) including--
                    (A) the availability of supply;
                    (B) siting and facility configuration for onshore 
                and offshore liquefied natural gas receiving terminals;
                    (C) the factors described in subparagraphs (B) 
                through (F) of paragraph (3); and
                    (D) other economic factors;
            (5) 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 such displacement on the 
        relationship described in (2); and
            (6) an island-by-island approach to--
                    (A) the development of hydrogen from renewable 
                resources; and
                    (B) the application of hydrogen to the energy needs 
                of Hawaii
    (b) Contracting Authority.--The Secretary of Energy may carry out 
the assessment under subsection (a) directly or, in whole or in part, 
through one or more contracts with qualified public or private 
entities.
    (c) Report.--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, as report detailing the findings, conclusions, 
and recommendations resulting from the assessment.
    (d) Appropriation.--The are authorized to be appropriated such sums 
as are necessary to carry out this section.

                  Subtitle B--Access to Federal Lands

SEC. 121. OFFICE OF FEDERAL ENERGY PERMIT COORDINATION.

    (a) Establishment.--The President shall establish the Office of 
Federal Energy Permit Coordination (in this section, referred to as 
``Office'') within the Executive Office of the President in the same 
manner and mission as the White House Energy Projects Task Force 
established by Executive Order 13212.
    (b) Staffing.--The Office shall be staffed by functional experts 
from relevant federal agencies and departments on a nonreimbursable 
basis to carry out the mission of this office.
    (c) Reporting.--The Office shall provide an annual report to 
Congress, detailing the activities put in place to coordinate and 
expedite Federal decisions on energy projects. The report shall list 
accomplishments in improving the federal decision making process and 
shall include any additional recommendations or systemic changes needed 
to establish a more effective and efficient federal permitting process.

SEC. 122. PILOT PROJECT TO IMPROVE FEDERAL PERMIT COORDINATION.

    (a) Creation of Pilot Project.--The Secretary of the Interior (in 
this section, referred to as ``Secretary'') shall establish a Federal 
Permit Streamlining Pilot Project. The Secretary shall enter into a 
Memorandum of Understanding with the Secretary of Agriculture, 
Administrator of the Environmental Protection Agency, and the Chief of 
the Corps of Engineers within 90 days after enactment of this Act. The 
Secretary may also request that the Governors of Wyoming, Montana, 
Colorado, and New Mexico be signatories to the Memorandum of 
Understanding.
    (b) Designation of Qualified Staff.--Once the Pilot Project has 
been established by the Secretary, all Federal signatory parties shall 
assign an employee on a nonreimbursable basis to each of the field 
offices identified in section (c), who has expertise in the regulatory 
issues pertaining to their office, including, as applicable, particular 
expertise in Endangered Species Act section 7 consultations and the 
preparation of Biological Opinions, Clean Water Act 404 permits, Clean 
Air Act regulatory matters, planning under the National Forest 
Management Act, and the preparation of analyses under the National 
Environmental Policy Act. Assigned staff shall report to the Bureau of 
Land Management (BLM) Field Managers in the offices to which they are 
assigned, and shall be responsible for all issues related to the 
jurisdiction of their home office or agency, and participate as part of 
the team of employees working on proposed energy projects, planning, 
and environmental analyses.
    (c) Field Offices.--The following BLM Field Offices shall serve as 
the Federal Permit Streamlining Pilot Project offices:
            (1) Rawlins, Wyoming;
            (2) Buffalo, Wyoming;
            (3) Miles City, Montana;
            (4) Farmington, New Mexico;
            (5) Carlsbad, New Mexico; and
            (6) Glenwood Springs, Colorado.
    (d) Reports.--The Secretary shall submit a report to the Congress 3 
years following the date of enactment of this section, outlining the 
results of the Pilot Project to date and including a recommendation to 
the President as to whether the Pilot Project should be implemented 
nationwide.
    (e) Additional Personnel.--The Secretary shall assign to each of 
the BLM Field Offices listed in subsection (c) such additional 
personnel as is necessary to ensure the effective implementation of--
            (1) the Pilot Project; and
            (2) other programs administered by such offices, including 
        inspection and enforcement related to energy development on 
        federal lands, pursuant to the multiple use mandate of the 
        Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 
        et seq.).
    (f) Savings Provision.--Nothing in this section shall affect the 
operation of any federal or state law or any delegation of authority 
made by a Secretary or head of an Agency whose employees are 
participating in the program provided for by this section.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to implement this section.

SEC. 123. FEDERAL ONSHORE LEASING PROGRAMS FOR OIL AND GAS.

    (a) Timely Action on Leases and Permits.--To ensure timely action 
on oil and gas leases and applications for permits to drill on lands 
otherwise available for leasing, the Secretary of the Interior shall--
            (1) ensure expeditious compliance with the requirements of 
        section 102(2)(C) of the National Environmental Policy Act of 
        1969 (42 U.S.C. 4332(2)(C));
            (2) improve consultation and coordination with the States; 
        and
            (3) improve the collection, storage, and retrieval of 
        information related to such leasing activities.
    (b) Improved Enforcement.--The Secretary shall improve inspection 
and enforcement of oil and gas activities, including enforcement of 
terms and conditions in permits to drill.
    (c) Authorization of Appropriations.--For each of the fiscal years 
2004 through 2007, in addition to amounts otherwise authorized to be 
appropriated for the purpose of carrying out section 17 of the Mineral 
Leasing Act (30 U.S.C. 226), there are authorized to be appropriated to 
the Secretary of the Interior--
            (1) $40,000,000 for the purpose of carrying out paragraphs 
        (1) through (3) of subsection (a); and
            (2) $20,000,000 for the purpose of carrying out subsection 
        (b).

SEC. 124. ESTIMATES OF OIL AND GAS RESOURCES UNDERLYING ONSHORE FEDERAL 
              LANDS.

    Section 604 of the Energy Act of 2000 (42 U.S.C. 6217) is amended 
by striking ``(a) In General'' and all thereafter and inserting
    ``(a) In General.--The Secretary of the Interior, in consultation 
with the Secretaries of Agriculture and Energy, shall conduct an 
inventory of all onshore Federal lands and take measures necessary to 
update and revise this inventory. The inventory shall identify for all 
federal lands
            ``(1) the United States Geological Survey estimates of the 
        oil and gas resources underlying these lands;
            ``(2) the extent and nature of any restrictions or 
        impediments to the exploration, production and transportation 
        of such resources, including
                    ``(A) existing land withdrawals and the underlying 
                purpose for each withdrawal;
                    ``(B) restrictions or impediments affecting 
                timeliness of granting leases;
                    ``(C) post-lease restrictions or impediments such 
                as conditions of approval, applications for permits to 
                drill, applicable environmental permits;
                    ``(D) permits or restrictions associated with 
                transporting the resources; and
                    ``(E) identification of the authority for each 
                restriction or impediment together with the impact on 
                additional processing or review time and potential 
                remedies; and
            ``(3) the estimates of oil and gas resources not available 
        for exploration and production by virtue of the restrictions 
        identified above.
    ``(b) Reports.--The Secretary shall provide a progress report to 
the Congress by October 1, 2006 and shall complete the inventory by 
October 1, 2010.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to implement this section.

SEC. 125. SPLIT-ESTATE FEDERAL OIL AND GAS LEASING AND DEVELOPMENT 
              PRACTICES.

    (a) Review.--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
            (1) 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;
            (2) a comparison of the surface owner consent provisions in 
        section 714 of the Surface Mining Control and Reclamation Act 
        (30 U.S.C. 1304) concerning surface mining of federal coal 
        deposits and the surface owner consent provisions for oil and 
        gas development, including coalbed methane production; and
            (3) 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.
    (b) Report.--The Secretary of the Interior shall report the results 
of such review to the Congress no later than 180 days after enactment 
of this section.

SEC. 126. COORDINATION OF FEDERAL AGENCIES TO ESTABLISH PRIORITY ENERGY 
              TRANSMISSION RIGHTS-OF-WAY.

    (a) Definitions.--For purposes of this section:
            (1) The term ``utility corridor'' means any linear strip of 
        land across Federal lands of approved width, but limited by 
        technological, environmental, and topographical factors for use 
        by a utility facility.
            (2) The term ``Federal authorization'' means any 
        authorization required under Federal law in order to site a 
        utility facility, including but not limited to such permits, 
        special use authorizations, certifications, opinions, or other 
        approvals as may be required, issued by a Federal agency.
            (3) The term ``Federal lands'' means all lands owned by the 
        United States, except
                    (A) lands in the National Park System;
                    (B) lands held in trust for an Indian or Indian 
                tribe; and
                    (C) lands on the Outer Continental Shelf.
            (4) The term ``Secretary'' means the Secretary of Energy.
            (5) The term ``utility facility'' means any privately, 
        publicly, or cooperatively owned line, facility, or system (A) 
        for the transportation of oil and natural gas, synthetic liquid 
        or gaseous fuels, any refined product produced therefrom, or 
        for transportation of products in support of production, or for 
        storage and terminal facilities in connection therewith; or (B) 
        for the generation, transmission and distribution of electric 
        energy.
    (b) Utility Corridors.--
            (1) No later than 24 months after the date of enactment of 
        this section, the Secretary of the Interior, with respect to 
        public lands, and the Secretary of Agriculture, with respect to 
        National Forest System lands, in consultation with the 
        Secretary, shall--
                    (A) designate utility corridors pursuant to section 
                503 of the Federal Land Policy and Management Act (43 
                U.S.C. 1763) in the eleven contiguous Western States, 
                as identified in section 103(o) of such Act (43 U.S.C. 
                1702(o)); and
                    (B) incorporate the utility corridors designated 
                under paragraph (A) into the relevant departmental and 
                agency land use and resource management plans or their 
                equivalent.
            (2) The Secretary shall coordinate with the affected 
        Federal agencies to jointly identify potential utility 
        corridors on Federal lands in the other States and jointly 
        develop a schedule for the designation, environmental review 
        and incorporation of such utility corridors into relevant 
        departmental and agency land use and resource management plans 
        or their equivalent.
    (c) Federal Permit Coordination.--The Secretary, in consultation 
with the Secretary of the Interior, the Secretary of Agriculture, and 
the Secretary of Defense, shall develop a memorandum of understanding 
(``MOU'') for the purpose of coordinating all applicable Federal 
authorizations and environmental reviews related to a proposed or 
existing utility facility. To the maximum extent practicable under 
applicable law, the Secretary shall coordinate the process developed in 
the MOU 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 to ensure 
timely review and permit decisions. The MOU shall provide for--
            (1) the coordination among affected Federal agencies to 
        ensure that the necessary Federal authorizations are conducted 
        concurrently with applicable State siting processes and are 
        considered within a specific time frame to be identified in the 
        MOU;
            (2) 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
            (3) a process to expedite applications to construct or 
        modify utility facilities within utility corridors.

                 Subtitle C Alaska Natural Gas Pipeline

SEC. 131. SHORT TITLE.

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

SEC. 132. DEFINITIONS.

    In this subtitle, the following definitions apply:
            (1) The term ``Alaska natural gas'' means natural gas 
        derived from the area of the State of Alaska lying north of 64 
        degrees North latitude.
            (2) The term ``Alaska natural gas transportation project'' 
        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 either
                    (A) the Alaska Natural Gas Transportation Act of 
                1976 (15 U.S.C. 719 et seq.); or
                    (B) section 133.
            (3) The term ``Alaska natural gas transportation system'' 
        means the Alaska natural gas transportation project authorized 
        under the Alaska Natural Gas Transportation Act of 1976 and 
        designated and described in section 2 of the President's 
        decision.
            (4) The term ``Commission'' means the Federal Energy 
        Regulatory Commission.
            (5) The term ``President's decision'' means the decision 
        and report to Congress on the Alaska natural gas transportation 
        system issued by the President on September 22, 1977, pursuant 
        to section 7 of the Alaska Natural Gas Transportation Act of 
        1976 (15 U.S.C. 719(e) and approved by Public Law 95 158 (91 
        Stat.1268)).

  SEC. 133. ISSUANCE OF CERTIFICATE OF PUBLIC CONVENIENCE AND 
              NECESSITY.

    (a) Authority of the Commission.--Notwithstanding the provisions of 
the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719 et 
seq.), the Commission may, pursuant to section 7(c) of the Natural Gas 
Act (15 U.S.C. 717f(c)), consider and act on an application for the 
issuance of a certificate of public convenience and necessity 
authorizing the construction and operation of an Alaska natural gas 
transportation project other than the Alaska natural gas transportation 
system.
    (b) Issuance of Certificate.--
            (1) The Commission shall issue a certificate of public 
        convenience and necessity authorizing the construction and 
        operation of an Alaska natural gas transportation project under 
        this section if the applicant has satisfied the requirements of 
        section 7(e) of the Natural Gas Act (15 U.S.C. 717f(e)).
            (2) In considering an application under this section, the 
        Commission shall presume that--
                    (A) a public need exists to construct and operate 
                the proposed Alaska natural gas transportation project; 
                and
                    (B) sufficient downstream capacity will exist to 
                transport the Alaska natural gas moving through such 
                project to markets in the contiguous United States.
    (c) Expedited Approval Process.--The Commission shall issue a final 
order granting or denying any application for a certificate of public 
convenience and necessity under section 7(c) of the Natural Gas Act (15 
U.S.C. 717f(c)) and this section not more than 60 days after the 
issuance of the final environmental impact statement for that project 
pursuant to section 134.
    (d) Prohibition on Certain Pipeline Route.--No license, permit, 
lease, right-of-way, authorization, or other approval required under 
Federal law for the construction of any pipeline to transport natural 
gas from lands within the Prudhoe Bay oil and gas lease area may be 
granted for any pipeline that follows a route that traverses--
            (1) the submerged lands (as defined by the Submerged Lands 
        Act) beneath, or the adjacent shoreline of, the Beaufort Sea; 
        and
            (2) enters Canada at any point north of 68 degrees North 
        latitude.
    (e) Open Season.--Except where an expansion is ordered pursuant to 
section 135, 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 governing the 
conduct of open seasons for such project. Such procedures shall include 
the criteria for and timing of any open seasons; promote competition in 
the exploration, development, and production of Alaska natural gas; 
and, for any open season for capacity beyond the initial capacity, 
provide the opportunity for the transportation of natural gas other 
than from the Prudhoe Bay and Point Thompson units. The Commission 
shall issue such regulations not later than 120 days after the date of 
enactment of this Act.
    (f) Projects in the Contiguous United States.--Applications 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 pursuant to the Natural Gas Act. To the 
extent such pipeline facilities include the expansion of any facility 
constructed pursuant to the Alaska Natural Gas Transportation Act of 
1976, the provisions of that Act shall continue to apply.
    (g) Study of In-State Needs.--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 it has conducted a study of Alaska in-State needs, 
including tie-in points along the Alaska natural gas transportation 
project for in-State access.
    (h) Alaska Royalty Gas.--The Commission, upon the request of the 
State of Alaska and after a hearing, may provide for reasonable access 
to the Alaska natural gas transportation project for the State of 
Alaska or its designee for the transportation of the State's royalty 
gas for local consumption needs within the State; except that the rates 
of existing shippers of subscribed capacity on such project shall not 
be increased as a result of such access.
    (i) Regulations.--The Commission may issue regulations to carry out 
the provisions of this section.

  SEC. 134. ENVIRONMENTAL REVIEWS.

    (a) Compliance With NEPA.--The issuance of a certificate of public 
convenience and necessity authorizing the construction and operation of 
any Alaska natural gas transportation project under section 133 shall 
be treated as a major Federal action significantly affecting the 
quality of the human environment within the meaning of section 
102(2)(c) of the National Environmental Policy Act of 1969 (42 U.S.C. 
4332(2)(c)).
    (b) Designation of Lead Agency.--The Commission shall be the lead 
agency for purposes of complying with the National Environmental Policy 
Act of 1969, and shall be responsible for preparing the statement 
required by section 102(2)(c) of that Act (42 U.S.C. 4332(2)(c)) with 
respect to an Alaska natural gas transportation project under section 
133. The Commission shall prepare a single environmental statement 
under this section, which shall consolidate the environmental reviews 
of all Federal agencies considering any aspect of the project.
    (c) Other Agencies.--All Federal agencies considering aspects of 
the construction and operation of an Alaska natural gas transportation 
project under section 133 shall cooperate with the Commission, and 
shall comply with deadlines established by the Commission in the 
preparation of the statement under this section. The statement prepared 
under this section shall be used by all such agencies to satisfy their 
responsibilities under section 102(2)(c) of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4332(2)(c)) with respect to such project.
    (d) Expedited Process.--The Commission shall issue a draft 
statement under this section not later than 12 months after the 
Commission determines the application to be complete and shall issue 
the final statement not later than 6 months after the Commission issues 
the draft statement, unless the Commission for good cause finds that 
additional time is needed.

  SEC. 135. PIPELINE EXPANSION.

    (a) Authority.--With respect to any Alaska natural gas 
transportation project, upon the request of one or more persons and 
after giving notice and an opportunity for a hearing, the Commission 
may order the expansion of such project if it determines that such 
expansion is required by the present and future public convenience and 
necessity.
    (b) Requirements.--Before ordering an expansion, the Commission 
shall--
            (1) 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);
            (2) ensure that the rates as established do not require 
        existing shippers on the Alaska natural gas transportation 
        project to subsidize expansion shippers;
            (3) find that the 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 then-effective tariff of the Alaska natural 
        gas transportation project;
            (4) find that the proposed facilities will not adversely 
        affect the financial or economic viability of the Alaska 
        natural gas transportation project;
            (5) find that the proposed facilities will not adversely 
        affect the overall operations of the Alaska natural gas 
        transportation project;
            (6) find that the proposed facilities will not diminish the 
        contract rights of existing shippers to previously subscribed 
        certificated capacity;
            (7) ensure that all necessary environmental reviews have 
        been completed; and
            (8) find that adequate downstream facilities exist or are 
        expected to exist to deliver incremental Alaska natural gas to 
        market.
    (c) Requirement for a Firm Transportation Agreement.--Any order of 
the Commission issued pursuant to this section shall be null and void 
unless the person or persons requesting the order executes a firm 
transportation agreement with the Alaska natural gas transportation 
project within a reasonable period of time as specified in such order.
    (d) Limitation.--Nothing in this section shall be construed to 
expand or otherwise affect any authorities of the Commission with 
respect to any natural gas pipeline located outside the State of 
Alaska.
    (e) Regulations.--The Commission may issue regulations to carry out 
the provisions of this section.

SEC. 136. FEDERAL COORDINATOR.

    (a) Establishment.--There is established, as an independent office 
in the executive branch, the Office of the Federal Coordinator for 
Alaska Natural Gas Transportation Projects.
    (b) Federal Coordinator.--The Office shall be headed by a Federal 
Coordinator for Alaska Natural Gas Transportation Projects, who shall--
            (1) be appointed by the President, by and with the advice 
        and consent of the Senate;
            (2) for a term equal to the period required to design, 
        permit and construction the project plus one year; and
            (3) be compensated at the rate prescribed for level III of 
        the Executive Schedule (5 U.S.C. 5314).
    (c) Duties.--The Federal Coordinator shall be responsible for--
            (1) coordinating the expeditious discharge of all 
        activities by Federal agencies with respect to an Alaska 
        natural gas transportation project; and
            (2) ensuring the compliance of Federal agencies with the 
        provisions of this subtitle.
    (d) Reviews and Actions of Other Federal Agencies.--
            (1) All reviews conducted and actions taken by any Federal 
        officer or agency relating to an Alaska natural gas 
        transportation project authorized under this section shall be 
        expedited, in a manner consistent with completion of the 
        necessary reviews and approvals by the deadlines set forth in 
        this subtitle.
            (2) No Federal officer or agency shall have the authority 
        to include terms and conditions that are permitted, but not 
        required, by law on 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 terms and conditions would prevent or impair in any 
        significant respect the expeditious construction and operation, 
        or an expansion, of the project.
            (3) Unless required by law, no Federal officer or 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 such action would prevent or impair in any 
        significant respect the expeditious construction and operation 
        of, or an expansion of, the project.
            (4) The Federal Coordinator's authority shall not include 
        the ability to override--
                    (A) the implementation or enforcement of 
                regulations issued by the Commission pursuant to 
                Section 133(e); or
                    (B) an order by the Commission to expand the 
                project pursuant to Section 135.
            (5) Nothing in this section shall give the Federal 
        Coordinator the authority to impose additional terms, 
        conditions or requirements beyond those imposed by the 
        Commission or any agency with respect to construction and 
        operation, or an expansion of, the project.
    (e) State Coordination.--The Federal Coordinator shall enter into a 
Joint Surveillance and Monitoring Agreement, approved by the President 
and the Governor of Alaska, with the State of Alaska similar to that in 
effect during construction of the Trans-Alaska Oil Pipeline to monitor 
the construction of the Alaska natural gas transportation project. The 
Federal Government shall have primary surveillance and monitoring 
responsibility where the Alaska natural gas transportation project 
crosses Federal lands and private lands, and the State government shall 
have primary surveillance and monitoring responsibility where the 
Alaska natural gas transportation project crosses State lands.
    (f) Transfer of Federal Inspector Functions and Authority.--Upon 
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 of Energy pursuant to section 3012(b) of Public Law 102-
486 (15 U.S.C. 719e(b)), including all functions and authority 
described and enumerated in the Reorganization Plan No. 1 of 1979 (44 
Fed. Reg. 33,663), Executive Order No. 12142 of June 21, 1979 (44 Fed. 
Reg. 36,927), and section 5 of the President's decision, shall be 
transferred to the Federal Coordinator.

SEC. 137. JUDICIAL REVIEW.

    (a) Exclusive Jurisdiction.--Except for review by the Supreme Court 
of the United States on writ of certiorari, the United States Court of 
Appeals for the District of Columbia Circuit shall have original and 
exclusive jurisdiction to determine--
            (1) the validity of any final order or action (including a 
        failure to act) of any Federal agency or officer under this 
        subtitle;
            (2) the constitutionality of any provision of this 
        subtitle, or any decision made or action taken under this 
        subtitle; or
            (3) the adequacy of any environmental impact statement 
        prepared under the National Environmental Policy Act of 1969 
        with respect to any action under this subtitle.
    (b) Deadline for Filing Claim.--Claims arising under this subtitle 
may be brought not later than 60 days after the date of the decision or 
action giving rise to the claim.
    (c) Expedited Consideration.--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.
    (d) Amendment to ANGTA.--Section 10(c) of the Alaska Natural Gas 
Transportation Act of 1976 (15 U.S.C. 719h) is amended by inserting 
after paragraph (1) the following:
            ``(2) The United States Court of Appeals for the District 
        of Columbia Circuit shall set any action brought under this 
        section for expedited consideration, taking into account the 
        national interest described in section 2.''.

SEC. 138. STATE JURISDICTION OVER IN-STATE DELIVERY OF NATURAL GAS.

    (a) Local Distribution.--Any facility receiving natural gas from 
the Alaska natural gas transportation project for delivery to consumers 
within the State of Alaska shall be deemed to be a local distribution 
facility within the meaning of section 1(b) of the Natural Gas Act (15 
U.S.C. 717(b)), and therefore not subject to the jurisdiction of the 
Commission.
    (b) Additional Pipelines.--Nothing in this subtitle, except as 
provided in section 133(d), shall preclude or affect a future 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 of Alaska for 
consumption within or distribution outside the State of Alaska.
    (c) Rate Coordination.--Pursuant to the Natural Gas Act, the 
Commission shall establish rates for the transportation of natural gas 
on the Alaska natural gas transportation project. In exercising such 
authority, the Commission, pursuant to section 17(b) of the Natural Gas 
Act (15 U.S.C. 717p(b)), shall confer with the State of Alaska 
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 of Alaska.

SEC. 139. STUDY OF ALTERNATIVE MEANS OF CONSTRUCTION.

    (a) Requirement of Study.--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 not later 
than 18 months after the date of enactment of this Act, the Secretary 
of Energy shall conduct a study of alternative approaches to the 
construction and operation of the project.
    (b) Scope of Study.--The study shall consider the feasibility of 
establishing a Government corporation to construct an Alaska natural 
gas transportation project, and alternative means of providing Federal 
financing and ownership (including alternative combinations of 
Government and private corporate ownership) of the project.
    (c) Consultation.--In conducting the study, the Secretary of Energy 
shall consult with the Secretary of the Treasury and the Secretary of 
the Army (acting through the Commanding General of the Corps of 
Engineers).
    (d) Report.--If the Secretary of Energy is required to conduct a 
study under subsection (a), the Secretary shall submit a report 
containing the results of the study, the Secretary's recommendations, 
and any proposals for legislation to implement the Secretary's 
recommendations to Congress.

SEC. 140. CLARIFICATION OF ANGTA STATUS AND AUTHORITIES.

    (a) Savings Clause.--Nothing in this subtitle affects any decision, 
certificate, permit, right-of-way, lease, or other authorization issued 
under section 9 of the Alaska Natural Gas Transportation Act of 1976 
(15 U.S.C. 719(g)) or any Presidential findings or waivers issued in 
accordance with that Act.
    (b) Clarification of Authority To Amend Terms and Conditions To 
Meet Current Project Requirements.--Any Federal officer or agency 
responsible for granting or issuing any certificate, permit, right-of-
way, lease, or other authorization under section 9 of the Alaska 
Natural Gas Transportation Act of 1976 (15 U.S.C. 719(g)) may add to, 
amend, or abrogate any term or condition included in such certificate, 
permit, right-of-way, lease, or other authorization to meet current 
project requirements (including the physical design, facilities, and 
tariff specifications), so long as such action does not compel a change 
in the basic nature and general route of the Alaska natural gas 
transportation system as designated and described in section 2 of the 
President's decision, or would otherwise prevent or impair in any 
significant respect the expeditious construction and initial operation 
of such transportation system.
    (c) Updated Environmental Reviews.--The Secretary of Energy shall 
require the sponsor of the Alaska natural gas transportation system to 
submit such updated environmental data, reports, permits, and impact 
analyses as the Secretary determines are necessary to develop detailed 
terms, conditions, and compliance plans required by section 5 of the 
President's decision.

SEC. 141. SENSE OF CONGRESS.

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

SEC. 142. PARTICIPATION OF SMALL BUSINESS CONCERNS.

    (a) Sense of Congress.--It is the sense of Congress that an Alaska 
natural gas transportation project will provide significant economic 
benefits to the United States and Canada. In order to maximize those 
benefits, Congress urges the sponsors of the pipeline project to 
maximize the participation of small business concerns in contracts and 
subcontracts awarded in carrying out the project.
    (b) Study.--
            (1) The Comptroller General shall conduct a study on the 
        extent to which small business concerns participate in the 
        construction of oil and gas pipelines in the United States.
            (2) Not later than 1 year after the date of enactment of 
        this Act, the Comptroller General shall transmit to Congress a 
        report containing the results of the study.
            (3) The Comptroller General shall update the study at least 
        once every 5 years and transmit to Congress a report containing 
        the results of the update.
            (4) After the date of completion of the construction of an 
        Alaska natural gas transportation project, this subsection 
        shall no longer apply.
    (c) Small Business Concern Defined.--In this section, the term 
``small business concern'' has the meaning given such term in section 
3(a) of the Small Business Act (15 U.S.C. 632(a)).

SEC. 143. ALASKA PIPELINE CONSTRUCTION TRAINING PROGRAM.

    (a) Establishment of Program.--The Secretary of Labor (in this 
section referred to as the ``Secretary'') may make grants to the Alaska 
Department of Labor and Workforce Development to--
            (1) develop a plan to train, through the workforce 
        investment system established in the State of Alaska under the 
        Workforce Investment Act of 1998 (112 Stat. 936 et seq.), adult 
        and dislocated workers, including Alaska Natives, in urban and 
        rural Alaska in the skills required to construct and operate an 
        Alaska gas pipeline system; and
            (2) implement the plan developed pursuant to paragraph (1).
    (b) Requirements for Planning Grants.--The Secretary may make a 
grant under subsection (a)(1) only if--
            (1) the Governor of Alaska certifies in writing to the 
        Secretary that there is a reasonable expectation that 
        construction of an Alaska gas pipeline will commence within 3 
        years after the date of such certification; and
            (2) the Secretary of the Interior concurs in writing to the 
        Secretary with the certification made under paragraph (1).
    (c) Requirements for Implementation Grants.--The Secretary may make 
a grant under subsection (a)(2) only if--
            (1) the Secretary has approved a plan developed pursuant to 
        subsection (a)(1);
            (2) the Governor of Alaska requests the grant funds and 
        certifies in writing to the Secretary that there is a 
        reasonable expectation that the construction of an Alaska gas 
        pipeline system will commence within 2 years after the date of 
        such certification; and
            (3) the Secretary of the Interior concurs in writing to the 
        Secretary with the certification made under paragraph (2) after 
        considering--
                    (A) the status of necessary State and Federal 
                permits;
                    (B) the availability of financing for the pipeline 
                project; and
                    (C) other relevant factors and circumstances.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary such sums as may be necessary, but not to 
exceed $20,000,000, to carry out this section.

SEC. 144. LOAN GUARANTEES.

    (a) Authority.--
            (1) The Secretary may enter agreements with 1 or more 
        holders of a certificate of public convenience and necessity 
        issued under section 133(b) of this Act or section 9 of the 
        Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719g) 
        to issue Federal guarantee instruments with respect to loans 
        and other debt obligations for a qualified infrastructure 
        project.
            (2) 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).
            (3) 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.
    (b) Conditions.--
            (1) The Secretary may issue a Federal guarantee instrument 
        for a qualified infrastructure project only after a certificate 
        of public convenience and necessity under section 133(b) of 
        this Act or an amended certificate under section 9 of the 
        Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719g) 
        has been issued for the project.
            (2) 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.
            (3) 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.
    (c) Limitations on Amounts.--
            (1) 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.
            (2) 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.
    (d) Loan Terms and Fees.--
            (1) 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.
            (2) 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.
    (e) Regulations.--The Secretary may issue regulations to carry out 
this section.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to cover the cost of loan 
guarantees, as defined by section 502(5) of the Federal Credit Reform 
Act of 1990 (2 U.S.C. 661a(5)). Such sums shall remain available until 
expended.
    (g) Definitions.--In this section, the following definitions apply:
            (1) The term ``Consumer Price Index'' 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.
            (2) The term ``eligible lender'' means any non-Federal 
        qualified institutional buyer (as defined by section 
        230.144A(a) 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 Securities Act of 
        1933), including--
                    (A) a qualified retirement plan (as defined in 
                section 4974(c) of the Internal Revenue Code of 1986 
                (26 U.S.C. 4974(c)) that is a qualified institutional 
                buyer; and
                    (B) a governmental plan (as defined in section 
                414(d) of the Internal Revenue Code of 1986 (26 U.S.C. 
                414(d)) that is a qualified institutional buyer.
            (3) The term ``Federal guarantee instrument'' 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.
            (4) The term ``qualified infrastructure project'' 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.
            (5) The term ``Secretary'' means the Secretary of Energy.

SEC. 145. SENSE OF CONGRESS ON NATURAL GAS DEMAND.

    It is the sense of Congress that:
            (1) North American demand for natural gas will increase 
        dramatically over the course of the next several decades.
            (2) Both the Alaska Natural Gas Pipeline and the McKenzie 
        Delta Natural Gas project in Canada will be necessary to help 
        meet the increased demand for natural gas in North America.
            (3) Federal and state officials should work together with 
        officials in Canada to ensure both projects can move forward in 
        a mutually beneficial fashion.
            (4) Federal and state officials should acknowledge that the 
        smaller scope, fewer permitting requirements and lower cost of 
        the McKenzie Delta project means it will most likely be 
        completed before the Alaska Natural Gas Pipeline.
            (5) Lower 48 and Canadian natural gas production alone will 
        not be able to meet all domestic demand in the coming decades.
            (6) As a result, natural gas delivered from Alaska's North 
        Slope will not displace or reduce the commercial viability of 
        Canadian natural gas produced from the McKenzie Delta nor 
        production from the Lower 48.

                             TITLE II--COAL

                Subtitle A--Clean Coal Power Initiative

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Clean Coal Power Initiative.--There is authorized to be 
appropriated to the Secretary of Energy (in this subtitle, referred to 
as ``Secretary'') to carry out the activities authorized by this 
subtitle $200,000,000 for each of the fiscal years 2003 through 2011, 
to remain available until expended.

SEC. 202. PROJECT CRITERIA.

    (a) In General.--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 operation or have been demonstrated 
as of the date of the enactment of this Act.
    (b) Technical Criteria for Gasification.--In allocating the funds 
made available under section 201, the Secretary shall ensure that at 
least 80 percent of the funds are used for coal-based gasification 
technologies or coal-based projects that include gasification combined 
cycle, gasification fuel cells, gasification co-production, or hybrid 
gasification/combustion. The Secretary shall set technical milestones 
specifying emissions levels that coal gasification projects must be 
designed to and reasonably expected to achieve. The milestones shall 
get more restrictive through the life of the program. The milestones 
shall be designed to achieve by 2020 coal gasification projects able 
to--
            (1) remove 99 percent of sulfur dioxide;
            (2) emit no more than .05 lbs of NOx per million BTU;
            (3) achieve substantial reductions in mercury emissions; 
        and
            (4) achieve a thermal efficiency of--
                    (A) 60 percent for coal of more than 9,000 Btu;
                    (B) 59 percent for coal of 7,000 to 9,000 Btu; and
                    (C) 57 percent for coal of less than 7,000 Btu.
    (c) Technical Criteria for Other Projects.--For projects not 
described in subsection (b), the Secretary shall set technical 
milestones specifying emissions levels that the projects must be 
designed to and reasonably expected to achieve. The milestones shall 
get more restrictive through the life of the program. The milestones 
shall be designed to achieve by 2010 projects able to--
            (1) remove 97 percent of sulfur dioxide;
            (2) emit no more than .08 lbs of NOx per million BTU;
            (3) achieve substantial reductions in mercury emissions; 
        and
            (4) achieve a thermal efficiency of--
                    (A) 45 percent for coal of more than 9,000 Btu;
                    (B) 44 percent for coal of 7,000 to 9,000 Btu; and
                    (C) 42 percent for coal of less than 7,000 Btu.
    (d) Existing Units.--In the case of projects at existing units, in 
lieu of the thermal efficiency requirements set forth in paragraphs 
(b)(4) and (c)(4), the projects shall be designed to achieve an overall 
thermal design efficiency improvement compared to the efficiency of the 
unit as operated, of not less than--
                    (A) 7 percent for coal of more than 9,000 Btu;
                    (B) 6 percent for coal of 7,000 to 9,000 Btu; or
                    (C) 4 percent for coal of less than 7,000 Btu.
    (e) Permitted Uses.--In allocating funds made available in this 
section, the Secretary may allocate funds to projects that include, as 
part of the project, the separation and capture of carbon dioxide.
    (f) Consultation.--Before setting the technical milestones under 
subsections (b) and (c), 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.
    (g) Financial Criteria.--The Secretary shall not provide a funding 
award under this title unless the recipient has documented to the 
satisfaction of the Secretary that--
            (1) the award recipient is financially viable without the 
        receipt of additional Federal funding;
            (2) the recipient will provide sufficient information to 
        the Secretary for the Secretary to ensure that the award funds 
        are spent efficiently and effectively; and
            (3) a market exists for the technology being demonstrated 
        or applied, as evidenced by statements of interest in writing 
        from potential purchasers of the technology.
    (h) Financial Assistance.--The Secretary shall provide financial 
assistance to projects that meet the requirements of this section and 
are likely to--
            (1) achieve overall cost reductions in the utilization of 
        coal to generate useful forms of energy;
            (2) improve the competitiveness of coal among various forms 
        of energy; and
            (3) demonstrate methods and equipment that are applicable 
        to 25 percent of the electricity generating facilities that use 
        coal as the primary feedstock as of the date of the enactment 
        of this Act.
    (i) Federal Share.--The Federal share of the cost of a coal or 
related technology project funded by the Secretary shall not exceed 50 
percent.
    (j) Applicability.--No technology, or level of emission reduction, 
shall be treated as adequately demonstrated for purposes of section 111 
of the Clean Air Act, achievable for purposes of section 169 of that 
Act, or achievable in practice for purposes of section 171 of that Act 
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.

SEC. 203. REPORTS.

    (a) Ten-Year Plan.--By September 30, 2004, the Secretary shall 
transmit to Congress a report, with respect to section 202(a), a 10-
year plan containing--
            (1) a detailed assessment of whether the aggregate funding 
        levels provided under section 201 are appropriate funding 
        levels for that program;
            (2) a detailed description of how proposals will be 
        solicited and evaluated, including a list of all activities 
        expected to be undertaken;
            (3) a detailed list of technical milestones for each coal 
        and related technology that will be pursued; and
            (4) 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.
    (b) Technical Milestones.--Not later than 1 year after the date of 
the enactment of this Act, and once every 2 years thereafter through 
2011, the Secretary, in consultation with other appropriate Federal 
agencies, shall transmit to the Congress, a report describing--
            (1) the technical milestones set forth in section 212 and 
        how those milestones ensure progress toward meeting the 
        requirements of subsections (b) and (c) of section 212; and
            (2) the status of projects funded under this title.

SEC. 204. CLEAN COAL CENTERS OF EXCELLENCE.

    As part of the program authorized in section 211, the Secretary 
shall award competitive, merit-based grants to universities for the 
establishment of Centers of Excellence for Energy Systems of the 
Future. The Secretary shall provide grants to universities that can 
show the greatest potential for advancing new clean coal technologies.

                    Subtitle B--Federal Coal Leases

SEC. 211. REPEAL OF THE 160-ACRE LIMITATION FOR COAL LEASES.

    Section 3 of the Mineral Leasing Act (30 U.S.C. 203) is amended by 
striking all the text in the first sentence after ``upon'' and 
inserting the following: ``a finding by the Secretary that it (1) would 
be in the interest of the United States, (2) would not displace a 
competitive interest in the lands, and (3) would not include lands or 
deposits that can be developed as part of another potential or existing 
operation, secure modifications of the original coal lease by including 
additional coal lands or coal deposits contiguous or cornering to those 
embraced in such lease, but in no event shall the total area added by 
such modifications to an existing coal lease exceed 320 acres, or add 
acreage larger than that in the original lease.''.

SEC. 212. MINING PLANS.

    Section 2(d)(2) of the Mineral Leasing Act (30 U.S.C. 202a(2)) is 
amended--
            (1) by inserting ``(A)'' after ``(2)''; and
            (2) by adding at the end the following:
            ``(B) The Secretary may establish a period of more than 
        forty years if the Secretary determines that the longer period 
        will ensure the maximum economic recovery of a coal deposit, or 
        the longer period is in the interest of the orderly, efficient, 
        or economic development of a coal resource.''.

SEC. 213. PAYMENT OF ADVANCE ROYALTIES UNDER COAL LEASES.

    Section 7(b) of the Mineral Leasing Act of 1920 (30 U.S.C. 207(b)) 
is amended by striking all after ``Secretary).'' through to ``a 
lease.'' and inserting: ``The aggregate number of years during the 
period of any lease for which advance royalties may be accepted in lieu 
of the condition of continued operation shall not exceed twenty. 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 
such lease to the extent that such advance royalties have not been used 
to reduce production royalties for a prior year.''.

SEC. 214. ELIMINATION OF DEADLINE FOR SUBMISSION OF COAL LEASE 
              OPERATION AND RECLAMATION PLAN.

    Section 7(c) of the Mineral Leasing Act (30 U.S.C. 207(c)) is 
amended by striking ``and not later than three years after a lease is 
issued,''.

SEC. 215. APPLICATION OF AMENDMENTS.

    The amendments made by this Act apply with respect to any coal 
lease issued on or after the date of enactment of this Act, and, with 
respect to any coal lease issued before the date of enactment of this 
Act, upon the date of readjustment of the lease as provided for by 
section 7(a) of the Mineral Leasing Act, or upon request by the lessee, 
prior to such date.

         Subtitle C--Powder River Basin Shared Mineral Estates

SEC. 221. RESOLUTION OF FEDERAL RESOURCE DEVELOPMENT CONFLICTS IN THE 
              POWDER RIVER BASIN.

    The Secretary of the Interior shall--
            (1) 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
            (2) not later than 6 months after the enactment of this 
        Act, report to the 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.

                        TITLE III--INDIAN ENERGY

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Indian Tribal Energy Development 
and Self-Determination Act of 2003''.

SEC. 302. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.

    (a) In General.--Title II of the Department of Energy Organization 
Act (42 U.S.C. 7131 et seq.) is amended by adding at the end the 
following:

             ``office of indian energy policy and programs

    ``Sec. 217. (a) Establishment.--There is established within the 
Department an Office of Indian Energy Policy and Programs (referred to 
in this section as the `Office'). 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 section 
5315 of title 5, United States Code.
    ``(b) Duties of Director.--The Director shall in accordance with 
Federal policies promoting Indian self-determination and the purposes 
of this Act, provide, direct, foster, coordinate, and implement energy 
planning, education, management, conservation, and delivery programs of 
the Department that--
            ``(1) promote Indian tribal energy development, efficiency, 
        and use;
            ``(2) reduce or stabilize energy costs;
            ``(3) enhance and strengthen Indian tribal energy and 
        economic infrastructure relating to natural resource 
        development and electrification; and
            ``(4) electrify Indian tribal land and the homes of tribal 
        members.

                ``comprehensive indian energy activities

    ``Sec. 218. (a) Indian Energy Education Planning and Management 
Assistance.--
            ``(1) The Director shall establish programs within the 
        Office of Indian Energy Policy and Programs to assist Indian 
        tribes in meeting energy education, research and development, 
        planning, and management needs.
            ``(2) In carrying out this section, the Director may 
        provide grants, on a competitive basis, to an Indian tribe or 
        tribal consortium for use in carrying out--
                    ``(A) energy, energy efficiency, and energy 
                conservation programs;
                    ``(B) studies and other activities supporting 
                tribal acquisition of energy supplies, services, and 
                facilities;
                    ``(C) planning, construction, development, 
                operation, maintenance, and improvement of tribal 
                electrical generation, transmission, and distribution 
                facilities located on Indian land; and
                    ``(D) development, construction, and 
                interconnection of electric power transmission 
                facilities located on Indian land with other electric 
                transmission facilities.
            ``(3)(A) The Director may develop, in consultation with 
        Indian tribes, a formula for providing grants under this 
        section.
            ``(B) 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).
            ``(4) The Secretary may promulgate such regulations as the 
        Secretary determines are necessary to carry out this 
        subsection.
            ``(5) There is authorized to be appropriated to carry out 
        this section $20,000,000 for each of fiscal years 2004 through 
        2011.
    ``(b) Loan Guarantee Program.--
            ``(1) Subject to paragraph (3), the Secretary may provide 
        loan guarantees (as defined in section 502 of the Federal 
        Credit Reform Act of 1990 (2 U.S.C. 661a)) for not more than 90 
        percent of the unpaid principal and interest due on any loan 
        made to any Indian tribe for energy development.
            ``(2) A loan guaranteed under this subsection shall be made 
        by--
                    ``(A) a financial institution subject to 
                examination by the Secretary; or
                    ``(B) an Indian tribe, from funds of the Indian 
                tribe.
            ``(3) The aggregate outstanding amount guaranteed by the 
        Secretary at any time under this subsection shall not exceed 
        $2,000,000,000.
            ``(4) The Secretary may promulgate such regulations as the 
        Secretary determines are necessary to carry out this 
        subsection.
            ``(5) There are authorized to be appropriated such sums as 
        are necessary to carry out this subsection, to remain available 
        until expended.
            ``(6) Not later than 1 year from the date of enactment of 
        this section, the Secretary shall report to the Congress on the 
        financing requirements of Indian tribes for energy development 
        on Indian land.
    ``(c) Indian Energy Preference.--
            ``(1) 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.
            ``(2) In carrying out this subsection, a Federal agency or 
        department shall not--
                    ``(A) pay more than the prevailing market price for 
                an energy product or byproduct; and
                    ``(B) obtain less than prevailing market terms and 
                conditions.''.
    (b) Conforming Amendments.--
            (1) The table of contents of the Department of Energy 
        Organization Act (42 U.S.C. prec. 7101) is amended--
                    (A) in the item relating to section 209, by 
                striking ``Section'' and inserting ``Sec.''; and
                    (B) by striking the items relating to sections 213 
                through 216 and inserting the following:

``Sec. 213. Establishment of policy for National Nuclear Security 
                            Administration.
``Sec. 214. Establishment of security, counterintelligence, and 
                            intelligence policies.
``Sec. 215. Office of Counterintelligence.
``Sec. 216. Office of Intelligence.
``Sec. 217. Office of Indian Energy Policy and Programs.
``Sec. 218. Comprehensive Indian Energy Activities.''.
            (2) Section 5315 of title 5, United States Code, is amended 
        by inserting ``Director, Office of Indian Energy Policy and 
        Programs, Department of Energy.'' after ``Inspector General, 
        Department of Energy.''.

SEC. 303. INDIAN ENERGY.

    Title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501 et 
seq.) is amended to read as follows:

                      ``TITLE XXVI--INDIAN ENERGY

``SEC. 2601. DEFINITIONS.

    ``For purposes of this title:
            ``(1) The term `Director' means the Director of the Office 
        of Indian Energy Policy and Programs.
            ``(2) The term `Indian land' means--
                    ``(A) any land located within the boundaries of an 
                Indian reservation, pueblo, or rancheria;
                    ``(B) any land not located within the boundaries of 
                an Indian reservation, pueblo, or rancheria, the title 
                to which is held--
                            ``(i) in trust by the United States for the 
                        benefit of an Indian tribe;
                            ``(ii) by an Indian tribe, subject to 
                        restriction by the United States against 
                        alienation; or
                            ``(iii) by a dependent Indian community; 
                        and
                    ``(C) land conveyed to a Native Corporation under 
                the Alaska Native Claims Settlement Act (43 U.S.C. 1601 
                et seq.).
            ``(3) The term `Indian reservation' includes--
                    ``(A) an Indian reservation in existence in any 
                State or States as of the date of enactment of this 
                paragraph;
                    ``(B) a public domain Indian allotment;
                    ``(C) a former reservation in the State of 
                Oklahoma;
                    ``(D) a parcel of land owned by a Native 
                Corporation under the Alaska Native Claims Settlement 
                Act (43 U.S.C. 1601 et seq.); and
                    ``(E) a dependent Indian community located within 
                the borders of the United States,
            regardless of whether the community is located--
                            ``(i) on original or acquired territory of 
                        the community; or
                            ``(ii) within or outside the boundaries of 
                        any particular State.
            ``(4) The term `Indian tribe' has the meaning given the 
        term in section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b).
            ``(5) The term `Native Corporation' has the meaning given 
        the term in section 3 of the Alaska Native Claims Settlement 
        Act (43 U.S.C. 1602).
            ``(6) The term `organization' means a partnership, joint 
        venture, limited liability company, or other unincorporated 
        association or entity that is established to develop Indian 
        energy resources.
            ``(7) The term `Program' means the Indian energy resource 
        development program established under section 2602(a).
            ``(8) The term `Secretary' means the Secretary of the 
        Interior.
            ``(9) The term `tribal consortium' means an organization 
        that consists of 2 or more entities, at least 1 of which is an 
        Indian tribe.
            ``(10) The term `tribal land' means any land or interests 
        in land owned by any Indian tribe, band, nation, pueblo, 
        community, rancheria, colony or other group, title to which is 
        held in trust by the United States or which is subject to a 
        restriction against alienation imposed by the United States.
            ``(11) The term `vertical integration of energy resources' 
        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 facility), on or near Indian land to process, 
        refine, generate electricity from, or otherwise develop energy 
resources on, Indian land.

``SEC. 2602. INDIAN TRIBAL ENERGY RESOURCE DEVELOPMENT.

    ``(a) In General.--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 Indian tribes and tribal consortia in 
achieving the purposes of this title.
    ``(b) Grants and Loans.--In carrying out the Program, the Secretary 
shall
            ``(1) provide development grants to Indian tribes and 
        tribal consortia for use in developing or obtaining the 
        managerial and technical capacity needed to develop energy 
        resources on Indian land;
            ``(2) provide grants to Indian tribes and tribal consortia 
        for use in carrying out projects to promote the vertical 
        integration of energy resources, and to process, use, or 
        develop those energy resources, on Indian land; and
            ``(3) provide low-interest loans to Indian tribes and 
        tribal consortia for use in the promotion of energy resource 
        development and vertical integration or energy resources on 
        Indian land.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary for 
each of fiscal years 2004 through 2014.

``SEC. 2603. INDIAN TRIBAL ENERGY RESOURCE REGULATION.

    ``(a) Grants.--The Secretary may provide to Indian tribes and 
tribal consortia, on an annual basis, grants for use in developing, 
administering, implementing, and enforcing tribal laws (including 
regulations) governing the development and management of energy 
resources on Indian land.
    ``(b) Use of Funds.--Funds from a grant provided under this section 
may be used by an Indian tribe or tribal consortium for--
            ``(1) the development of a tribal energy resource inventory 
        or tribal energy resource on Indian land;
            ``(2) the development of a feasibility study or other 
        report necessary to the development of energy resources on 
        Indian land;
            ``(3) the development and enforcement of tribal laws and 
        the development of technical infrastructure to protect the 
        environment under applicable law; or
            ``(4) the training of employees that--
                    ``(A) are engaged in the development of energy 
                resources on Indian land; or
                    ``(B) are responsible for protecting the 
                environment.
    ``(c) Other Assistance.--To the maximum extent practicable, the 
Secretary and the Secretary of Energy shall make available to Indian 
tribes and tribal consortia scientific and technical data for use in 
the development and management of energy resources on Indian land.

``SEC. 2604. LEASES, BUSINESS AGREEMENTS, AND RIGHTS-OF-WAY INVOLVING 
              ENERGY DEVELOPMENT OR TRANSMISSION.

    ``(a) Leases and Agreements.--Subject to the provisions of this 
section--
            ``(1) an Indian tribe may, at its discretion, enter into a 
        lease or business agreement for the purpose of energy 
        development, including a lease or business agreement for--
                    ``(A) exploration for, extraction of, processing 
                of, or other development of energy resources on tribal 
                land; and
                    ``(B) 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
            ``(2) a lease or business agreement described in paragraph 
        (1) shall not require the approval of the Secretary under 
        section 2103 of the Revised Statutes (25 U.S.C. 81) or any 
        other provision of law, if--
                    ``(A) the lease or business agreement is executed 
                in accordance with a tribal energy resource agreement 
                approved by the Secretary under subsection (e);
                    ``(B) the term of the lease or business agreement 
                does not exceed--
                            ``(i) 30 years; or
                            ``(ii) in the case of a lease for the 
                        production of oil and gas resources, 10 years 
                        and as long thereafter as oil or gas is 
                        produced in paying quantities; and
                    ``(C) 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 an annual trust asset evaluation of the 
                activities of the Indian tribe conducted in accordance 
                with the agreement).
    ``(b) Rights-of-Way for Pipelines or Electric Transmission or 
Distribution Lines.--An Indian tribe may grant a right-of-way over 
tribal land for a pipeline or an electric transmission or distribution 
line without specific approval by the Secretary if--
            ``(1) the right-of-way is executed in accordance with a 
        tribal energy resource agreement approved by the Secretary 
        under subsection (e);
            ``(2) the term of the right-of-way does not exceed 30 
        years;
            ``(3) the pipeline or electric transmission or distribution 
        line serves--
                    ``(A) an electric generation, transmission, or 
                distribution facility located on tribal land; or
                    ``(B) a facility located on tribal land that 
                processes or refines energy resources developed on 
                tribal land; and
            ``(4) 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 an annual trust asset evaluation of 
        the activities of the Indian tribe conducted in accordance with 
        the agreement).
    ``(c) Renewals.--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.
    ``(d) Validity.--No lease, business agreement, or right-of-way 
under this section shall be valid unless the lease, business agreement, 
or right-of-way is authorized in accordance with tribal energy resource 
agreements approved by the Secretary under subsection (e).
    ``(e) Tribal Energy Resource Agreements.--
            ``(1) On promulgation of regulations under paragraph (9), 
        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.
            ``(2)(A) 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 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.
            ``(B) The Secretary shall approve a tribal energy resource 
        agreement submitted under paragraph (1) if--
                    ``(i) 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; and
                    ``(ii) the tribal energy resource agreement 
                includes provisions that, with respect to a lease, 
                business agreement, or right-of-way under this 
                section--
                            ``(I) ensure the acquisition of necessary 
                        information from the applicant for the lease, 
                        business agreement, or right-of-way;
                            ``(II) address the term of the lease or 
                        business agreement or the term of conveyance of 
                        the right-of-way;
                            ``(III) address amendments and renewals;
                            ``(IV) address consideration for the lease, 
                        business agreement, or right-of-way;
                            ``(V) address technical or other relevant 
                        requirements;
                            ``(VI) establish requirements for 
                        environmental review in accordance with 
                        subparagraph (C);
                            ``(VII) ensure compliance with all 
                        applicable environmental laws;
                            ``(VIII) identify final approval authority;
                            ``(IX) provide for public notification of 
                        final approvals;
                            ``(X) establish a process for consultation 
                        with any affected States concerning potential 
                        off-reservation impacts associated with the 
                        lease, business agreement, or right-of-way; and
                            ``(XI) describe the remedies for breach of 
                        the lease, agreement, or right-of-way.
            ``(C) 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--
                    ``(i) the identification and evaluation of all 
                significant environmental impacts (as compared with a 
                no-action alternative), including effects on cultural 
                resources;
                    ``(ii) the identification of proposed mitigation;
                    ``(iii) a process for ensuring that the public is 
                informed of and has an opportunity to comment on any 
                proposed lease, business agreement, or right-of-way 
                before tribal approval of the lease, business 
                agreement, or right-of-way (or any amendment to or 
                renewal of the lease, business agreement, or right-of-
                way); and
                    ``(iv) sufficient administrative support and 
                technical capability to carry out the environmental 
                review process.
            ``(D) A tribal energy resource agreement negotiated between 
        the Secretary and an Indian tribe in accordance with this 
        subsection shall include--
                    ``(i) provisions requiring the Secretary to conduct 
                an annual trust asset evaluation to monitor the 
                performance of the activities of the Indian tribe 
                associated with the development of energy resources on 
                tribal land by the Indian tribe; and
                    ``(ii) in the case of a finding by the Secretary of 
                imminent jeopardy to a physical trust asset, provisions 
                authorizing the Secretary to reassume responsibility 
                for activities associated with the development of 
                energy resources on tribal land.
            ``(3) The Secretary shall provide notice and opportunity 
        for public comment on tribal energy resource agreements 
        submitted under paragraph (1).
            ``(4) If the Secretary disapproves a tribal energy resource 
        agreement submitted by an Indian tribe under paragraph (1), the 
        Secretary shall--
                    ``(A) notify the Indian tribe in writing of the 
                basis for the disapproval;
                    ``(B) identify what changes or other actions are 
                required to address the concerns of the Secretary; and
                    ``(C) provide the Indian tribe with an opportunity 
                to revise and resubmit the tribal energy resource 
                agreement.
            ``(5) 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 subsection (e)(9), provide to the Secretary--
                    ``(A) a copy of the lease, business agreement, or 
                right-of-way document (including all amendments to and 
                renewals of the document); and
                    ``(B) in the case of a tribal energy resource 
                agreement or a lease, business agreement, or right-of-
                way that permits payment to be made directly to the 
                Indian tribe, documentation of those payments 
                sufficient to enable the Secretary to discharge the 
                trust responsibility of the United States as 
                appropriate under applicable law.
            ``(6) The Secretary shall continue to have a trust 
        obligation to ensure that the rights of an Indian tribe are 
        protected in the event of a violation of the terms of any 
        lease, business agreement or right-of-way by any other party to 
        the lease, business agreement, or right-of-way.
            ``(7)(A) The United States shall not be liable for any loss 
        or injury sustained by any party (including an Indian tribe or 
        any member of an Indian tribe) to a lease, business agreement, 
        or right-of-way executed in accordance with tribal energy 
        resource agreements approved under this subsection.
            ``(B) On approval of a tribal energy resource agreement of 
        an Indian tribe under paragraph (1), the Indian tribe shall be 
        stopped from asserting a claim against the United States on the 
        grounds that the Secretary should not have approved the Tribal 
        energy resource agreement.
            ``(8)(A) In this paragraph, the term `interested party' 
        means any person or entity the interests of which have 
        sustained or will sustain a significant adverse 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).
            ``(B) After exhaustion of tribal remedies, and in 
        accordance with the process and requirements set forth in 
        regulations adopted by the Secretary pursuant to subsection 
        (e)(9), 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 under 
        this subsection.
            ``(C) If the Secretary determines that an Indian tribe is 
        not in compliance with a tribal energy resource agreement 
        approved under this subsection, the Secretary shall take such 
        action as is necessary to compel compliance, including--
                    ``(i) suspending a lease, business agreement, or 
                right-of-way under this section until an Indian tribe 
                is in compliance with the approved tribal energy 
                resource agreement; and
                    ``(ii) rescinding approval of the tribal energy 
                resource agreement and reassuming the responsibility 
                for approval of any future leases, business agreements, 
                or rights-of-way associated with an energy pipeline or 
                distribution line described in subsections (a) and (b).
            ``(D) If the Secretary seeks to compel compliance of an 
        Indian tribe with an approved tribal energy resource agreement 
        under subparagraph (C)(ii), the Secretary shall--
                    ``(i) make a written determination that describes 
                the manner in which the tribal energy resource 
                agreement has been violated;
                    ``(ii) provide the Indian tribe with a written 
                notice of the violation together with the written 
                determination; and
                    ``(iii) before taking any action described in 
                subparagraph (C)(ii) 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.
            ``(E)(i) An Indian tribe described in subparagraph (D) 
        shall retain all rights to appeal as provided in regulations 
        promulgated by the Secretary.
            ``(ii) The decision of the Secretary with respect to an 
        appeal described in clause (i), after any agency appeal 
        provided for by regulation, shall constitute a final agency 
        action.
            ``(9) Not later than 180 days after the date of enactment 
        of the Indian Tribal Energy Development and Self-Determination 
        Act of 2003, the Secretary shall promulgate regulations that 
        implement the provisions of this subsection, including--
                    ``(A) 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; and
                    ``(B) a process and requirements in accordance with 
                which an Indian tribe may--
                            ``(i) voluntarily rescind an approved 
                        tribal energy resource agreement approved by 
                        the Secretary under this subsection; and
                            ``(ii) return to the Secretary the 
                        responsibility to approve any future leases, 
                        business agreements, and rights-of-way 
                        described in this subsection.
    ``(f) No Effect on Other Law.--Nothing in this section affects the 
application of--
            ``(1) any Federal environmental law;
            ``(2) the Surface Mining Control and Reclamation Act of 
        1977 (30 U.S.C. 1201 et seq.); or
            ``(3) except as otherwise provided in this title, the 
        Indian Mineral Development Act of 1982 (25 U.S.C. 2101 et 
        seq.).

``SEC. 2605. FEDERAL POWER MARKETING ADMINISTRATIONS.

    ``(a) Definitions.--In this section:
            ``(1) The term `Administrator' means the Administrator of 
        the Bonneville Power Administration and the Administrator of 
        the Western Area Power Administration.
            ``(2) The term `power marketing administration' means
                    ``(A) the Bonneville Power Administration;
                    ``(B) the Western Area Power Administration; and
                    ``(C) 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.
    ``(b) Encouragement of Indian Tribal Energy Development.--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.
    ``(c) Action by the Administrator.--In carrying out this section, 
and in accordance with existing law--
            ``(1) each Administrator shall consider the unique 
        relationship that exists between the United States and Indian 
        tribes;
            ``(2) 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;
            ``(3) the Administrator of the Western Area Power 
        Administration may purchase power from Indian tribes to meet 
        the firming and reserve requirements of the Western Area Power 
        Administration; and
            ``(4) each Administrator shall not pay more than the 
        prevailing market price for an energy product nor obtain less 
        than prevailing market terms and conditions.
    ``(d) Assistance for Transmission System Use.--
            ``(1) An Administrator may provide technical assistance to 
        Indian tribes seeking to use the high-voltage transmission 
        system for delivery of electric power.
            ``(2) 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.
    ``(e) Power Allocation Study.--Not later than 2 years after the 
date of enactment of the Indian Tribal Energy Development and Self-
Determination Act of 2003, the Secretary of Energy shall submit to the 
Congress a report that--
            ``(1) 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
            ``(2) identifies--
                    ``(A) the quantity of power allocated to Indian 
                tribes by the Western Area Power Administration;
                    ``(B) the quantity of power sold to Indian tribes 
                by other power marketing administrations; and
                    ``(C) 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 
                facilitate the use of Federal power by Indian tribes.
    ``(f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $750,000, which shall remain 
available until expended and shall not be reimbursable.

``SEC. 2606. INDIAN MINERAL DEVELOPMENT REVIEW.

    ``(a) In General.--The Secretary shall conduct a review of all 
activities being conducted under the Indian Mineral Development Act of 
1982 (25 U.S.C. 2101 et seq.) as of that date.
    ``(b) Report.--Not later than 1 year after the date of enactment of 
the Indian Tribal Energy Development and Self-Determination Act of 
2003, the Secretary shall submit to the Congress a report that 
includes--
            ``(1) the results of the review;
            ``(2) recommendations to ensure that Indian tribes have the 
        opportunity to develop Indian energy resources; and
            ``(3) 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.

``SEC. 2607. WIND AND HYDROPOWER FEASIBILITY STUDY.

    ``(a) Study.--The Secretary, in coordination with the Secretary of 
the Army and the Secretary of the Interior, shall conduct a study of 
the cost and feasibility of developing a demonstration project that 
would use wind energy generated by Indian tribes and hydropower 
generated by the Army Corps of Engineers on the Missouri River to 
supply firming power to the Western Area Power Administration.
    ``(b) Scope of Study.--The study shall--
            ``(1) determine the feasibility of the blending of wind 
        energy and hydropower generated from the Missouri River dams 
        operated by the Army Corps of Engineers;
            ``(2) review historical purchase requirements and projected 
        purchase requirements for firming and the patterns of 
        availability and use of firming energy;
            ``(3) assess the wind energy resource potential on tribal 
        land and projected cost savings through a blend of wind and 
        hydropower over a 30-year period;
            ``(4) determine seasonal capacity needs and associated 
        transmission upgrades for integration of tribal wind 
        generation; and
            ``(5) include an independent tribal engineer as a study 
        team member.
    ``(c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary and Secretary of the Army shall submit to 
Congress a report that describes the results of the study, including--
            ``(1) an analysis of the potential energy cost or benefits 
        to the customers of the Western Area Power Administration 
        through the blend of wind and hydropower;
            ``(2) an evaluation of whether a combined wind and 
        hydropower system can reduce reservoir fluctuation, enhance 
        efficient and reliable energy production, and provide Missouri 
        River management flexibility;
            ``(3) recommendations for a demonstration project that 
        could be carried out by the Western Area Power Administration 
        in partnership with an Indian tribal government or tribal 
        consortium 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
            ``(4) an identification of--
                    ``(A) the economic and environmental costs or 
                benefits to be realized through such a Federal-tribal 
                partnership; and
                    ``(B) the manner in which such a partnership could 
                contribute to the energy security of the United States.
            ``(d) Funding.--
            ``(1) There is authorized to be appropriated to carry out 
        this section $500,000, to remain available until expended.
            ``(2) Costs incurred by the Secretary in carrying out this 
        section shall be nonreimbursable.''.

SEC. 304. 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 302 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.

SEC. 305. 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,'.

SEC. 306. CONSULTATION WITH INDIAN TRIBES.

    In carrying out this Act and the amendments made by this Act, 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.

                       TITLE IV--NUCLEAR MATTERS

               Subtitle A--Price-Anderson Act Amendments

SEC. 401. SHORT TITLE.

    This subtitle may be cited as the ``Price-Anderson Amendments Act 
of 2003''.

SEC. 402. EXTENSION OF INDEMNIFICATION AUTHORITY.

    (a) Indemnification of Nuclear Regulatory Commission Licensees.--
Section 170c. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(c)) is 
amended--
            (1) in the subsection heading, by striking ``Licenses'' and 
        inserting ``Licensees'';
            (2) by striking ``licenses issued between August 30, 1954, 
        and December 31, 2003'' and inserting ``licenses issued after 
        August 30, 1954''; and
            (3) by striking ``With respect to any production or 
        utilization facility for which a construction permit is issued 
        between August 30, 1954, and December 31, 2003, the 
        requirements of this subsection shall apply to any license 
        issued for such facility subsequent to December 31, 2003.''
    (b) Indemnification of Department of Energy Contractors.--Section 
170d.(1)(A) of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)(1)(A)) 
is amended by striking ``, until December 31, 2004,''.
    (c) Indemnification of Nonprofit Educational Institutions.--Section 
170k. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(k)) is amended--
            (1) by striking ``licenses issued between August 30, 1954, 
        and August 1, 2002'' and replacing it with ``licenses issued 
        after August 30, 1954''; and
            (2) by striking ``With respect to any production or 
        utilization facility for which a construction permit is issued 
        between August 30, 1954, and August 1, 2002, the requirements 
        of this subsection shall apply to any license issued for such 
        facility subsequent to August 1, 2002.''

SEC. 403. MAXIMUM ASSESSMENT.

    Section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) is 
amended--
            (1) in the second proviso of the third sentence of 
        subsection b.(1)--
                    (A) by striking ``$63,000,000'' and inserting 
                ``$94,000,000''; and
                    (B) by striking ``$10,000,000 in any 1 year'' and 
                inserting ``$15,000,000 in any 1 year (subject to 
                adjustment for inflation under subsection t.)''; and
            (2) in subsection t.(1)--
                    (A) by inserting ``total and annual'' after 
                ``amount of the maximum'';
                    (B) by striking ``the date of the enactment of the 
                Price-Anderson Amendments Act of 1988'' and inserting 
                ``July 1, 2003''; and
                    (C) by striking ``such date of enactment'' and 
                inserting ``July 1, 2003''.

SEC. 404. DEPARTMENT OF ENERGY LIABILITY LIMIT.

    (a) Indemnification of Department of Energy Contractors.--Section 
170d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is amended 
by striking paragraph (2) and inserting the following:
            ``(2) In an agreement of indemnification entered into under 
        paragraph (1), the Secretary--
                    ``(A) may require the contractor to provide and 
                maintain financial protection of such a type and in 
                such amounts as the Secretary shall determine to be 
                appropriate to cover public liability arising out of or 
                in connection with the contractual activity; and
                    ``(B) shall indemnify the persons indemnified 
                against such 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.''.
    (b) Contract Amendments.--Section 170d. of the Atomic Energy Act of 
1954 (42 U.S.C. 2210(d)) is further amended by striking paragraph (3) 
and inserting the following--
            ``(3) All agreements of indemnification under which the 
        Department of Energy (or its predecessor agencies) may be 
        required to indemnify any person under this section shall be 
        deemed to be amended, on the date of 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.''.
    (c) Liability Limit.--Section 170e.(1)(B) of the Atomic Energy Act 
of 1954 (42 U.S.C. 2210(e)(1)(B)) is amended by:
            (1) striking ``the maximum amount of financial protection 
        required under subsection b. or''; and
            (2) striking ``paragraph (3) of subsection d., whichever 
        amount is more'' and inserting ``paragraph (2) of subsection 
        d.''.

SEC. 405. INCIDENTS OUTSIDE THE UNITED STATES.

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

SEC. 406. REPORTS.

    Section 170p. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(p)) 
is amended by striking ``August 1, 1998'' and inserting ``August 1, 
2013''.

SEC. 407. INFLATION ADJUSTMENT.

    Section 170t. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(t)) 
is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by adding after paragraph (1) the following:
            ``(2) The Secretary shall adjust the amount of 
        indemnification provided under an agreement of indemnification 
        under subsection d. not less than once during each 5-year 
        period following July 1, 2003, in accordance with the aggregate 
        percentage change in the Consumer Price Index since--
                    ``(A) that date, in the case of the first 
                adjustment under this paragraph; or
                    ``(B) the previous adjustment under this 
                paragraph.''.

SEC. 408. TREATMENT OF MODULAR REACTORS.

    Section 170b. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(b)) 
is amended by adding at the end the following:
            ``(5)(A) 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.
            ``(B) 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.''.

SEC. 409. APPLICABILITY.

    The amendments made by sections 403, 404, and 405 do not apply to a 
nuclear incident that occurs before the date of the enactment of this 
Act.

SEC. 410. CIVIL PENALTIES.

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

              Subtitle B--Deployment of New Nuclear Plants

SEC. 421. SHORT TITLE.

    This subtitle may be cited as the ``Nuclear Energy Finance Act of 
2003.''

SEC. 422. DEFINITIONS.

    For purposes of this subtitle:
            (1) The term ``advanced reactor design'' means a nuclear 
        reactor that enhances safety, efficiency, proliferation 
        resistance, or waste reduction compared to commercial nuclear 
        reactors in use in the United States on the date of enactment 
        of this Act.
            (2) The term ``eligible project costs'' means all costs 
        incurred by a project developer that are reasonably related to 
        the development and construction of a project under this 
        subtitle, including costs resulting from regulatory or 
        licensing delays.
            (3) The term ``financial assistance'' means a loan 
        guarantee, purchase agreement, or any combination of the 
        foregoing.
            (4) The term ``loan guarantee'' means any guarantee or 
        other pledge by the Secretary to pay all or part of the 
        principal and interest on a loan or other debt obligation 
        issued by a project developer and funded by a lender.
            (5) The term ``project'' means any commercial nuclear power 
        facility for the production of electricity that uses one or 
        more advanced reactor designs.
            (6) The term ``project developer'' means an individual, 
        corporation, partnership, joint venture, trust, or other entity 
        that is primarily liable for payment of a project's eligible 
        costs.
            (7) The term ``purchase agreement'' means a contract to 
        purchase the electric energy produced by a project under this 
        subtitle.
            (8) The term ``Secretary'' means the Secretary of Energy.

SEC. 423. RESPONSIBILITIES OF THE SECRETARY.

    (a) Financial Assistance.--Subject to the requirements of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.), the Secretary 
may, subject to appropriations, make available to project developers 
for eligible project costs such financial assistance as the Secretary 
determines is necessary to supplement private-sector financing for 
projects if he determines that such projects are needed to contribute 
to energy security, fuel or technology diversity, or clean air 
attainment goals. The Secretary shall prescribe such terms and 
conditions for financial assistance as the Secretary deems necessary or 
appropriate to protect the financial interests of the United States.
    (b) Requirements.--Approval criteria for financial assistance shall 
include--
            (1) the creditworthiness of the project;
            (2) the extent to which financial assistance would 
        encourage public-private partnerships and attract private-
        sector investment;
            (3) the likelihood that financial assistance would hasten 
        commencement of the project; and,
            (4) any other criteria the Secretary deems necessary or 
        appropriate.
    (c) Confidentiality.--The Secretary shall protect the 
confidentiality of any information that is certified by a project 
developer to be commercially sensitive.
    (d) Full Faith and Credit.--All financial assistance provided by 
the Secretary under this subtitle shall be general obligations of the 
United States backed by its full faith and credit.

SEC. 424. LIMITATIONS.

    (a) Financial Assistance.--The total financial assistance per 
project provided by this subtitle shall not exceed fifty percent of 
eligible project costs.
    (b) Generation.--The total electrical generation capacity of all 
projects provided by this subtitle shall not exceed 8,400 megawatts.

SEC. 425. REGULATIONS.

    Not later than 12 months from the date of enactment of this Act, 
the Secretary shall issue regulations to implement this subtitle.

      Subtitle C--Advanced Reactor Hydrogen Co-Generation Project



SEC. 431. PROJECT ESTABLISHMENT.

    The Secretary is directed to establish an Advanced Reactor Hydrogen 
Co-Generation Project.

SEC. 432. PROJECT DEFINITION.

    The project shall conduct the research, development, design, 
construction, and operation of a hydrogen production co-generation 
testbed 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 
testbed 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.

SEC. 433. PROJECT MANAGEMENT.

    (a) Management.--The project shall be managed within the Department 
by the Office of Nuclear Energy Science and Technology.
    (b) Lead Laboratory.--The lead laboratory for the program, 
providing the site for the reactor construction, shall be the Idaho 
National Engineering and Environmental Laboratory (``INEEL'').
    (c) Steering Committee.--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.
    (d) Collaboration.--Project activities shall be conducted at INEEL, 
other national laboratories, universities, domestic industry, and 
international partners.

SEC. 434. PROJECT REQUIREMENTS.

    (a) Research and Development.--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.
            (1) The project shall utilize, where appropriate, extensive 
        reactor test capabilities resident at INEEL.
            (2) The project shall be designed to explore technical, 
        environmental, and economic feasibility of alternative 
        approaches for reactor-based hydrogen production.
            (3) The industrial lead for the project must be a United 
        States-based company.
    (b) International Collaboration.--The Secretary shall seek 
international cooperation, participation, and financial contribution in 
this program.
            (1) The project 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.
            (2) International activities shall be coordinated with the 
        Generation IV International Forum.
            (3) The Secretary may combine this project with the 
        Generation IV Nuclear Energy Systems Program.
    (c) Demonstration.--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.
    (d) Partnerships.--The Secretary shall establish cost-shared 
partnerships with domestic industry or international participants for 
the research, development, design, construction and operation of the 
demonstration 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.
    (e) Target Date.--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 why this date is not feasible.
    (f) Waiver of Construction Timelines.--The Secretary is authorized 
to conduct the Advanced Reactor Hydrogen Co-Generation Project without 
the constraints of DOE Order 413.3 as deemed necessary to meet the 
specified operational date.
    (g) Competition.--The Secretary may fund up to two teams for up to 
one 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.
    (h) Use of Facilities.--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 demonstration facility. Utilization of domestic 
university-based testbeds shall be encouraged to provide educational 
opportunities for student development.
    (i) Role of Nuclear Regulatory Commission.--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.
    (j) Report.--A comprehensive project plan shall be developed no 
later than April 30, 2004. The project plan shall be updated annually 
with each annual budget submission.

SEC. 435. AUTHORIZATION OF APPROPRIATIONS.

    (a) Research, Development and Design Programs.--The following sums 
are authorized to be appropriated to the Secretary for all activities 
under this subtitle except for reactor construction:
            (1) For fiscal year 2004, $35,000,000;
            (2) For each of fiscal years 2005-2008, $150,000,000; and
            (3) For fiscal years beyond 2008, such funds as are needed 
        are authorized to be appropriated.
    (b) Reactor Construction.--The following sum is authorized to be 
appropriated to the Secretary for all project-related construction 
activities, to be available until expended, $500,000,000.

                   Subtitle D--Miscellaneous Matters

SEC. 441. URANIUM SALES AND TRANSFERS.

    Section 3112 of the USEC Privatization Act (42 U.S.C. 2297h-10) is 
amended by striking subsections (d) and (e) and inserting the 
following:
    ``(d)(1)(A) The aggregate annual deliveries of uranium in any form 
(including natural uranium concentrates, natural uranium hexafluoride, 
enriched uranium, and depleted uranium) sold or transferred for 
commercial nuclear power end uses by the United States Government shall 
not exceed 3,000,000 pounds U<INF>3</INF>O<INF>8</INF> equivalent per 
year through calendar year 2009. Such aggregate annual deliveries shall 
not exceed 5,000,000 pounds U<INF>3</INF>O<INF>8</INF> equivalent per 
year in calendar years 2010 and 2011. Such aggregate annual deliveries 
shall not exceed 7,000,000 pounds U<INF>3</INF>O<INF>8</INF> equivalent 
in calendar year 2012. Such aggregate annual deliveries shall not 
exceed 10,000,000 pounds U<INF>3</INF>O<INF>8</INF> equivalent per year 
in calendar year 2013 and each year thereafter. Any sales or transfers 
by the United States Government to commercial end users shall be 
limited to long-term contracts of no less than 3 years duration.
    ``(B) The recovery and extraction of the uranium component from 
contaminated uranium bearing materials from United States Government 
sites by commercial entities shall be the preferred method of making 
uranium available under this subsection. The uranium component 
contained in such contaminated materials shall be counted against the 
annual maximum deliveries set forth in this section, provided that 
uranium is sold to end users.
    ``(C) Sales or transfers of uranium by the United States Government 
for the following purposes are exempt from the provisions of this 
paragraph--
            ``(i) sales or transfers provided for under existing law 
        for use by the Tennessee Valley Authority in relation to the 
        Department of Energy's high-enriched uranium or tritium 
        programs;
            ``(ii) sales or transfers to the Department of Energy 
        research reactor sales program;
            ``(iii) the transfer of up to 3,293 metric tons of uranium 
        to the United States Enrichment Corporation to replace uranium 
        that the Secretary transferred, prior to privatization of the 
        United States Enrichment Corporation in July 1998, to the 
        Corporation on or about June 30, 1993, April 20, 1998, and May 
        18, 1998, and that does not meet commercial specifications;
            ``(iv) the sale or transfer of any uranium for emergency 
        purposes in the event of a disruption in supply to end users in 
        the United States;
            ``(v) the sale or transfer of any uranium in fulfillment of 
        the United States Government's obligations to provide security 
        of supply with respect to implementation of the Russian HEU 
        Agreement; and
            ``(vi) the sale or transfer of any enriched uranium for use 
        in an advanced commercial nuclear power plant in the United 
        States with nonstandard fuel requirements.
    ``(D) The Secretary may transfer or sell enriched uranium to any 
person for national security purposes, as determined by the Secretary.
    ``(2) Except as provided in subsections (b) and (c), and in 
paragraph (1)(B), clauses (i) through (iii) of paragraph (1)(C), and 
paragraph (1)(D) of this subsection, no sale or transfer of uranium in 
any form shall be made by the United States Government unless--
            ``(A) the President determines that the material is not 
        necessary for national security needs;
            ``(B) the price paid to the Secretary, if the transaction 
        is a sale, will not be less than the fair market value of the 
        material, as determined at the time that such material is 
        contracted for sale;
            ``(C) prior to any sale or transfer, the Secretary solicits 
        the written views of the Department of State and the National 
        Security Council with regard to whether such sale or transfer 
        would have any adverse effect on national security interests of 
        the United States, including interests related to the 
        implementation of the Russian HEU Agreement; and
            ``(D) neither the Department of State nor the National 
        Security Council objects to such sale or transfer.
The Secretary shall endeavor to determine whether a sale or transfer is 
permitted under this paragraph within 30 days. The Secretary's 
determinations pursuant to this paragraph shall be made available to 
interested members of the public prior to authorizing any such sale or 
transfer.
    ``(3) Within 1 year after the date of enactment of this subsection 
and annually thereafter the Secretary shall undertake an assessment for 
the purpose of reviewing available excess Government uranium 
inventories, and determining, consistent with the procedures and 
limitations established in this subsection, the level of inventory to 
be sold or transferred to end users.
    ``(4) Within 5 years after the date of enactment of this subsection 
and biennially thereafter the Secretary shall report to the Congress on 
the implementation of this subsection. The report shall include a 
discussion of 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.
    ``(5) For purposes of this subsection, the term `United States 
Government' does not include the Tennessee Valley Authority.''.

SEC. 442. DECOMMISSIONING PILOT PROGRAM.

    (a) Pilot Program.--The Secretary 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.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $16,000,000.

                       TITLE V--RENEWABLE ENERGY

                     Subtitle A--General Provisions

SEC. 501. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

    (a) Resource Assessment.--Not later than 6 months after the date of 
enactment of this title, and each year thereafter, the Secretary of 
Energy shall review the available assessments of renewable energy 
resources within the United States, including solar, wind, biomass, 
ocean (tidal 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.
    (b) Contents of Reports.--Not later than 1 year after the date of 
enactment of this title, and each year thereafter, the Secretary shall 
publish a report based on the assessment under subsection (a). The 
report shall contain--
            (1) a detailed inventory describing the available amount 
        and characteristics of the renewable energy resources; and
            (2) such other information as the Secretary 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.
    (c) Authorization of Appropriations.--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.

SEC. 502. RENEWABLE ENERGY PRODUCTION INCENTIVE.

    (a) Incentive Payments.--Section 1212(a) of the Energy Policy Act 
of 1992 (42 U.S.C. 13317(a)) is amended by striking ``and which 
satisfies'' and all that follows through ``Secretary shall establish.'' 
and inserting ``. 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 the 
Congress an explanation of the reasons therefor, alter the percentage 
requirements of the preceding sentence.''.
    (b) Qualified Renewable Energy Facility.--Section 1212(b) of the 
Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is amended--
            (1) by striking ``a State or any political'' and all that 
        follows through ``nonprofit electrical cooperative'' and 
        inserting ``a not-for-profit electric cooperative, a public 
        utility described in section 115 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 of 
        subdivision thereof,''; and
            (2) by inserting ``landfill gas,'' after ``wind, 
        biomass,''.
    (c) Eligibility Window.--Section 1212(c) of the Energy Policy Act 
of 1992 (42 U.S.C. 13317(c)) is amended by striking ``during the 10-
fiscal year period beginning with the first full fiscal year occurring 
after the enactment of this section'' and inserting ``after October 1, 
2003, and before October 1, 2013''.
    (d) Amount of Payment.--Section 1212(e)(1) of the Energy Policy Act 
of 1992 (42 U.S.C. 13317(e)(1)) is amended by inserting ``landfill 
gas,'' after ``wind, biomass,''.
    (e) Sunset.--Section 1212(f) of the Energy Policy Act of 1992 (42 
U.S.C. 13317(f)) is amended by striking ``the expiration of'' and all 
that follows through ``of this section'' and inserting ``September 30, 
2023''.
    (f) Authorization of Appropriations.--Section 1212(g) of the Energy 
Policy Act of 1992 (42 U.S.C. 13317(g)) is amended to read as follows:
    ``(g) Authorization of Appropriations.--
            ``(1) In general.--Subject to paragraph (2), there are 
        authorized to be appropriated such sums as may be necessary to 
        carry out this section for fiscal years 2003 through 2023.
            ``(2) Availability of funds.--Funds made available under 
        paragraph (1) shall remain available until expended.''.

SEC. 503. RENEWABLE ENERGY ON FEDERAL LANDS.

    (a) Report.--Within 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 report to the Congress 
recommendations on opportunities to develop renewable energy on public 
lands under the jurisdiction of the Secretary of the Interior and 
National Forest System lands under the jurisdiction of the Secretary of 
Agriculture. The report shall include--
            (1) 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; and
            (2) an analysis of--
                    (A) the use of rights-of-way, leases, or other 
                methods to develop renewable energy on such lands;
                    (B) the anticipated benefits of grants, loans, tax 
                credits, or other provisions to promote renewable 
                energy development on such lands; and
                    (C) any issues that the Secretary of the Interior 
                or the Secretary of Agriculture have encountered in 
                managing renewable energy projects on such lands, or 
                believe are likely to arise in relation to the 
                development of renewable energy on such lands;
            (3) 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 Defense that would 
        be suitable for development for renewable energy, and any 
        recommended statutory and regulatory mechanisms for such 
        development; and
            (4) any recommendations pertaining to the issues addressed 
        in the report.
    (b) National Academy of Sciences Study.--
            (1) Not later than 90 days after the date of the enactment 
        of this section, the Secretary of the Interior shall contract 
        with the National Academy of Sciences to--
                    (A) study the potential for the development of 
                wind, solar, and ocean (tidal and thermal) energy on 
                the Outer Continental Shelf;
                    (B) assess existing Federal authorities for the 
                development of such resources; and
                    (C) recommend statutory and regulatory mechanisms 
                for such development.
            (2) The results of the study shall be transmitted to the 
        Congress within 24 months after the date of the enactment of 
        this section.

SEC. 504. FEDERAL PURCHASE REQUIREMENT.

    (a) Requirement.--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--
            (1) not less than 3 percent in fiscal years 2005 through 
        2007,
            (2) not less than 5 percent in fiscal years 2008 through 
        2010, and
            (3) not less than 7.5 percent in fiscal year 2011 and each 
        fiscal year thereafter.
    (b) Definition.--For purposes of this section--
            (1) the term ``biomass'' means any solid, nonhazardous, 
        cellulosic material that is derived from--
                    (A) any of the following forest-related resources: 
                mill residues, precommercial thinnings, slash, and 
                brush, or nonmerchantable material;
                    (B) solid wood waste materials, including waste 
                pallets, crates, dunnage, manufacturing and 
                construction wood wastes (other than pressure-treated, 
                chemically-treated, or painted wood wastes), and 
                landscape or right-of-way tree trimmings, but not 
                including municipal solid waste (garbage), gas derived 
                from the biodegradation of solid waste, or paper that 
                is commonly recycled; or
                      (C) agriculture wastes, including orchard tree 
                crops, vineyard, grain, legumes, sugar, and other crop 
                by-products or residues, and livestock waste nutrients; 
                or
                      (D) a plant that is grown exclusively as a fuel 
                for the production of electricity.
              (2) the term ``renewable energy'' means electric energy 
        generated from solar, wind, biomass, geothermal, municipal 
        solid waste, or new hydroelectric generation capacity achieved 
        from increased efficiency or additions of new capacity at an 
        existing hydroelectric project.
      (c) Calculation.--For purposes of determining compliance with the 
requirement of this section, the amount of renewable energy shall be 
doubled if--
              (1) the renewable energy is produced and used on-site at 
        a Federal facility;
              (2) the renewable energy is produced on Federal lands and 
        used at a Federal facility; or
              (3) 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.
      (d) Report.--Not later than April 15, 2005, and every 2 years 
thereafter, the Secretary of Energy shall provide a report to the 
Congress on the progress of the Federal Government in meeting the goals 
established by this section.

SEC. 505. INSULAR AREA RENEWABLE AND ENERGY EFFICIENCY PLANS.

      The Secretary of Energy shall update the energy surveys, 
estimates, and assessments for the insular areas of Puerto Rico, the 
Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern 
Mariana Islands, the Republic of the Marshall Islands, the Federated 
States of Micronesia, and the Republic of Palau undertaken pursuant to 
section 604 of Public Law 96-597 (48 U.S.C. 1492) and revise the 
comprehensive energy plan for the insular areas to reduce reliance on 
energy imports and increase use of renewable energy resources and 
energy efficiency opportunities. The update and revision shall by 
undertaken in consultation with the Secretary of the Interior and the 
chief executive officer of each insular area and shall be completed and 
submitted to Congress and to the chief executive officer of each 
insular area by December 31, 2005.

                  Subtitle B--Hydroelectric Licensing

SEC. 511. ALTERNATIVE CONDITIONS AND FISHWAYS.

      (a) Federal Reservations.--Section 4(e) of the Federal Power Act 
(16 U.S.C. 797(e)) is amended by inserting after ``adequate protection 
and utilization of such reservation.'' at the end of the first proviso 
the following: ``The license applicant shall be entitled to a 
determination on the record, after opportunity for an agency trial-type 
hearing of any disputed issues of material fact, with respect to such 
conditions.''.
      (b) Fishways.--Section 18 of the Federal Power Act (16 U.S.C. 
811) is amended by inserting after ``and such fishways as may be 
prescribed by the Secretary of Commerce.'' the following: ``The license 
applicant shall be entitled to a determination on the record, after 
opportunity for an agency trial-type hearing of any disputed issues of 
material fact, with respect to such fishways.''.
      (c) Alternative Conditions and Prescriptions.--Part I of the 
Federal Power Act (16 U.S.C. 791a et seq.) is amended by adding the 
following new section at the end thereof:

``SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.

      ``(a) Alternative Conditions.--
              ``(1) Whenever any person applies for a license for any 
        project works within any reservation of the United States, and 
        the Secretary of the Department under whose supervision such 
        reservation falls (referred to in this subsection as `the 
        Secretary') 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.
              ``(2) 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--
                      ``(A) provides for the adequate protection and 
                utilization of the reservation; and
                      ``(B) will either--
                              ``(i) cost less to implement; or
                              ``(ii) result in improved operation of 
                        the project works for electricity production, 
                        as compared to the condition initially deemed 
                        necessary by the Secretary.
            ``(3) The Secretary concerned 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.
            ``(4) Nothing in this section shall prohibit other 
        interested parties from proposing alternative conditions.
            ``(5) 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 adequately protect the 
        reservation. The Secretary shall submit the advisory and the 
        Secretary's final written determination into the record of the 
        Commission's proceeding.
    ``(b) Alternative Prescriptions.--
            ``(1) 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. 
        The alternative may include a fishway or an alternative to a 
        fishway.
            ``(2) 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--
                    ``(A) will be no less protective of the fish 
                resources than the fishway initially prescribed by the 
                Secretary; and
                    ``(B) will either--
                            ``(i) cost less to implement; or
                            ``(ii) result in improved operation of the 
                        project works for electricity production, as 
                        compared to the fishway initially deemed 
                        necessary by the Secretary.
            ``(3) 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.
            ``(4) Nothing in this section shall prohibit other 
        interested parties from proposing alternative prescriptions.
            ``(5) 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 not adequately 
        protect the fish resources. The Secretary shall submit the 
        advisory and the Secretary's final written determination into 
        the record of the Commission's proceeding.''.

                     Subtitle C--Geothermal Energy

SEC. 521. COMPETITIVE LEASE SALE REQUIREMENTS.

    (a) In General.--Section 4 of the Geothermal Steam Act of 1970 (30 
U.S.C. 1003) is amended by striking the text and inserting the 
following:
    ``(a) Nominations.--The Secretary shall accept nominations at any 
time from companies and individuals of lands to be leased under this 
Act.
    ``(b) Competitive Lease Sale Required.--The Secretary shall hold a 
competitive lease sale at least once every 2 years for lands in a State 
in which there are nominations pending under subsection (a) where such 
lands are otherwise available for leasing.
    ``(c) Noncompetitive Leasing.--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 the competitive lease sale.''.
    (b) Pending Lease Applications.--It shall be a priority for the 
Secretary of the Interior and, with respect to National Forest lands, 
the Secretary of Agriculture, to ensure timely completion of 
administrative actions necessary to conduct competitive lease sales for 
lands with pending applications for geothermal leasing as of the date 
of enactment of this section where such lands are otherwise available 
for leasing.

SEC. 522. GEOTHERMAL LEASING AND PERMITTING ON FEDERAL LANDS.

    (a) In General.--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 the 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.
    (b) Lease and Permit Applications.--The memorandum of understanding 
shall--
            (1) identify known geothermal resources areas 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 (30 U.S.C. 1001 et seq.) as a 
        land use; and
            (2) establish an administrative procedure for processing 
        geothermal lease applications, including lines of authority, 
        steps in application processing, and time limits for 
        application processing.
    (c) Data Retrieval System.--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.

SEC. 523. LEASING AND PERMITTING ON FEDERAL LANDS WITHDRAWN FOR 
              MILITARY PURPOSES.

    Not later than 1 year after the date of the enactment of this Act, 
the Secretary of the Interior and the Secretary of Defense, in 
consultation with interested states, counties, representatives of the 
geothermal industry, and interested members of the public, shall submit 
to the Congress a joint report concerning leasing and permitting 
activities for geothermal energy on Federal lands withdrawn for 
military purposes. Such report shall--
            (1) describe any differences, including differences in 
        royalty structure and revenue sharing with states and counties, 
        between--
                    (A) 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
                    (B) the administration of geothermal leasing under 
                section 2689 of title 10, United States Code, by the 
                Secretary of Defense;
            (2) identify procedures for 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; and
            (3) provide recommendations for legislative or 
        administrative actions that could facilitate program 
        administration, including a common royalty structure.

SEC. 524. REINSTATEMENT OF LEASES TERMINATED FOR FAILURE TO PAY RENT.

    Section 5(c) of the Geothermal Steam Act of 1970 (30 U.S.C. 
1004(c)), is amended in the last sentence by inserting ``or was 
inadvertent,'' after ``reasonable diligence,''.

SEC. 525. ROYALTY REDUCTION AND RELIEF.

    (a) Rulemaking.--Within one year after the date of enactment of 
this Act, the Secretary shall promulgate a final regulation providing a 
methodology for determining the amount or value of the steam for 
purposes of calculating the royalty due to be paid on such production 
pursuant to section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 
1004). The final regulation shall provide for a simplified methodology 
for calculating the royalty. In undertaking the rulemaking, the 
Secretary shall consider the use of a percent of revenue method and 
shall ensure that the final rule will result in the same level of 
royalty revenues as the regulation in effect on the date of enactment 
of this provision.
    (b) Low Temperature Direct Use.--Notwithstanding the provisions of 
section 5(a) of the Geothermal Steam Act of 1979 (30 U.S.C. 1004(a)), 
with respect to the direct use of low temperature geothermal resources 
for purposes other than the generation of electricity, the Secretary 
shall establish a schedule of fees and collect fees pursuant to such 
schedule in lieu of royalties based upon the total amount of geothermal 
resources used. The schedule of fees shall ensure that there is a fair 
return to the public for the use of the low temperature geothermal 
resource. With the consent of the lessee, the Secretary may modify the 
terms of a lease in existence on the date of enactment of this Act in 
order to reflect the provisions of this subsection.

                       Subtitle D--Biomass Energy

SEC. 531. DEFINITIONS.

    For the purposes of this subtitle:
            (1) The term ``eligible operation'' means a facility that 
        is located within the boundaries of an eligible community and 
        uses biomass from federal or Indian lands as a raw material to 
        produce electric energy, sensible heat, transportation fuels, 
        or substitutes for petroleum-based products.
            (2) The term ``biomass'' means pre-commercial thinnings of 
        trees and woody plants, or non-merchantable material, from 
        preventative treatments to reduce hazardous fuels, or reduce or 
        contain disease or insect infestations.
            (3) The term ``green ton'' means 2,000 pounds of biomass 
        that has not been mechanically or artificially dried.
            (4) The term ``Secretary'' means--
                    (A) with respect to lands within the National 
                Forest System, the Secretary of Agriculture; or
                    (B) with respect to Federal lands under the 
                jurisdiction of the Secretary of the Interior and 
                Indian lands, the Secretary of the Interior.
            (5) The term ``eligible community'' means any Indian 
        Reservation, or any county, town, township, municipality, or 
        other similar unit of local government that has a population of 
        not more than 50,000 individuals and is determined by the 
        Secretary to be located in an area near federal of Indian lands 
        which is at significant risk of catastrophic wildfire, disease, 
        or insect infestation or which suffers from disease or insect 
        infestation.
            (6) The term ``Indian tribe'' has the meaning given the 
        term in section 4(e) of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b(e)).
            (7) The term ``person'' includes--
                    (A) an individual;
                    (B) a community;
                    (C) an Indian tribe;
                    (D) a small business or a corporation that is 
                incorporated in the United States; or
                    (E) a nonprofit organization.

SEC. 532. BIOMASS COMMERCIAL UTILIZATION GRANT PROGRAM.

    (a) In General.--The Secretary may make grants to any person that 
owns or operates an eligible operation to offset the costs incurred to 
purchase biomass for use by such eligible operation with priority given 
to operations using biomass from the highest risk areas.
    (b) Limitation.--No grant provided under this subsection shall be 
paid at a rate that exceeds $20 per green ton of biomass delivered.
    (c) Records.--Each grant recipient shall keep such records as the 
Secretary 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 the Secretary, the grant recipient shall provide the 
Secretary reasonable access to examine the inventory and records of any 
eligible operation receiving grant funds.
    (d) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated $12,500,000 each to 
the Secretary of the Interior and the Secretary of Agriculture for each 
fiscal year from 2004 through 2008, to remain available until expended.

SEC. 533. IMPROVED BIOMASS UTILIZATION GRANT PROGRAM.

    (a) In General.--The Secretary may make grants to persons in 
eligible communities to offset the costs of developing or researching 
proposals to improve the use of biomass or add value to biomass 
utilization.
    (b) Selection.--Grant recipients shall be selected based on the 
potential for the proposal to--
            (1) develop affordable thermal or electric energy resources 
        for the benefit of an eligible community;
            (2) provide opportunities for the creation or expansion of 
        small businesses within an eligible community;
            (3) create new job opportunities within an eligible 
        community, and
            (4) reduce the hazardous fuels from the highest risk areas.
    (c) Limitation.--No grant awarded under this subsection shall 
exceed $500,000.
    (d) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated $12,500,000 each to 
the Secretary of the Interior and the Secretary of Agriculture for each 
fiscal year from 2004 through 2008, to remain available until expended.

SEC. 534. REPORT.

    Not later than 3 years after the date of enactment of this 
subtitle, the Secretary of the Interior and the Secretary of 
Agriculture shall jointly submit to the Congress a report that 
describes the interim results of the programs authorized under this 
subtitle.

                      TITLE VI--ENERGY EFFICIENCY

                      Subtitle A--Federal Programs

SEC. 601. ENERGY MANAGEMENT REQUIREMENTS.

    (a) Energy Reduction Goals.--Section 543(a)(1) of the National 
Energy Conservation Policy Act (42 U.S.C. 8253(a)(1)) is amended by 
striking ``its Federal buildings so that'' and all that follows through 
the end and inserting ``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 2000, by the percentage specified in the 
following table:

``Fiscal Year                                      Percentage reduction
2004........................................................         2 
2005........................................................         4 
2006........................................................         6 
2007........................................................         8 
2008........................................................        10 
2009........................................................        12 
2010........................................................        14 
2011........................................................        16 
2012........................................................        18 
2013........................................................     20.''.
    (b) Effective Date.--The energy reduction goals and baseline 
established in paragraph (1) of section 543(a) of the National Energy 
Conservation Policy Act, as amended by subsection (a) of this section, 
supersede all previous goals and baselines under such paragraph, and 
related reporting requirements.
    (c) Review of Energy Performance Requirements.--Section 543(a) of 
the National Energy Conservation Policy Act (42 U.S.C. 8253(a)) is 
further amended by adding at the end the following:
            ``(3) Not later than December 31, 2011, 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 2022.''.
    (d) Exclusions.--Section 543(c)(1) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(c)(1)) is amended by striking 
``An agency may exclude'' and all that follows through the end and 
inserting--
                    ``(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--
                            ``(i) compliance with those requirements 
                        would be impracticable;
                            ``(ii) the agency has completed and 
                        submitted all federally required energy 
                        management reports;
                            ``(iii) the agency has achieved compliance 
                        with the energy efficiency requirements of this 
                        Act, the Energy Policy Act of 1992, Executive 
                        Orders, and other Federal law; and
                            ``(iv) the agency has implemented all 
                        practicable, life-cycle cost-effective projects 
                        with respect to the Federal building or 
                        collection of Federal buildings to be excluded.
                    ``(B) A finding of impracticability under 
                subparagraph (A)(i) shall be based on--
                            ``(i) the energy intensiveness of 
                        activities carried out in the Federal building 
                        or collection of Federal buildings; or
                            ``(ii) the fact that the Federal building 
                        or collection of Federal buildings is used in 
                        the performance of a national security 
                        function.''.
    (e) Review by Secretary.--Section 543(c)(2) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(c)(2)) is amended--
            (1) by striking ``impracticability standards'' and 
        inserting ``standards for exclusion''; and
            (2) by striking ``a finding of impracticability'' and 
        inserting ``the exclusion''.
    (f) Criteria.--Section 543(c) of the National Energy Conservation 
Policy Act (42 U.S.C. 8253(c)) is further amended by adding at the end 
the following:
            ``(3) Not later than 180 days after the date of enactment 
        of this paragraph, the Secretary shall issue guidelines that 
        establish criteria for exclusions under paragraph (1).''.
    (g) Retention of Energy Savings.--Section 546 of the National 
Energy Conservation Policy Act (42 U.S.C. 8256) is amended by adding at 
the end the following new subsection:
    ``(e) Retention of Energy Savings.--An agency may retain any funds 
appropriated to that agency for energy expenditures, at buildings 
subject to the requirements of section 543(a) and (b), that are not 
made because of energy savings. Except as otherwise provided by law, 
such funds may be used only for energy efficiency or unconventional and 
renewable energy resources projects.''.
    (h) Reports.--Section 548(b) of the National Energy Conservation 
Policy Act (42 U.S.C. 8258(b)) is amended--
            (1) in the subsection heading, by inserting ``The President 
        and'' before ``Congress''; and
            (2) by inserting ``President and'' before ``Congress''.
    (i) Conforming Amendment.--Section 550(d) of the National Energy 
Conservation Policy Act (42 U.S.C. 8258b(d)) is amended in the second 
sentence by striking ``the 20 percent reduction goal established under 
section 543(a) of the National Energy Conservation Policy Act (42 
U.S.C. 8253(a)).'' and inserting ``each of the energy reduction goals 
established under section 543(a).''.

SEC. 602. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.

    Section 543 of the National Energy Conservation Policy Act (42 
U.S.C. 8253) is further amended by adding at the end the following:
    ``(e) Metering of Energy Use.--
            ``(1) Deadline.--By October 1, 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.
            ``(2) Guidelines.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this subsection, the 
                Secretary, in consultation with the Department of 
                Defense, the General Services Administration, 
                representatives from the metering industry, utility 
                industry, energy services industry, energy efficiency 
                industry, national laboratories, universities, and 
                Federal facility energy managers, shall establish 
                guidelines for agencies to carry out paragraph (1).
                    ``(B) Requirements for guidelines.--The guidelines 
                shall--
                            ``(i) take into consideration--
                                    ``(I) the cost of metering and 
                                submetering and the reduced cost of 
                                operation and maintenance expected to 
                                result from metering and submetering;
                                    ``(II) the extent to which metering 
                                and submetering are expected to result 
                                in increased potential for energy 
                                management, increased potential for 
                                energy savings and energy efficiency 
                                improvement, and cost and energy 
                                savings due to utility contract 
                                aggregation; and
                                    ``(III) the measurement and 
                                verification protocols of the 
                                Department of Energy;
                            ``(ii) include recommendations concerning 
                        the amount of funds and the number of trained 
                        personnel necessary to gather and use the 
                        metering information to track and reduce energy 
                        use;
                            ``(iii) establish priorities for types and 
                        locations of buildings to be metered and 
                        submetered based on cost effectiveness and a 
                        schedule of one 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
                            ``(iv) 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.
            ``(3) Plan.--No 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.''.

SEC. 603. FEDERAL BUILDING PERFORMANCE STANDARDS.

    Section 305(a) of the Energy Conservation and Production Act (42 
U.S.C. 6834(a)) is amended--
            (1) in paragraph (2)(A), by striking ``CABO Model Energy 
        Code, 1992'' and inserting ``the 2000 International Energy 
        Conservation Code''; and
            (2) by adding at the end the following:
            ``(3) Revised federal building energy efficiency 
        performance standards.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this paragraph, the Secretary of 
                Energy shall establish, by rule, revised Federal 
                building energy efficiency performance standards that 
                require that, if cost-effective, for new Federal 
                buildings--
                            ``(i) such buildings be designed so as to 
                        achieve energy consumption levels at least 30 
                        percent below those of the most recent version 
                        of the International Energy Conservation Code, 
                        as appropriate; and
                            ``(ii) sustainable design principles are 
                        applied to the siting, design, and construction 
                        of all new and replacement buildings.
                    ``(B) Additional revisions.--Not later than 1 year 
                after the date of approval of amendments to ASHRAE 
                Standard 90.1 or the 2000 International Energy 
                Conservation Code, the Secretary of Energy shall 
                determine, based on the cost-effectiveness of the 
                requirements under the amendments, whether the revised 
                standards established under this paragraph should be 
                updated to reflect the amendments.
                    ``(C) Statement on compliance of new buildings.--In 
                the budget request of the Federal agency for each 
                fiscal year and each report submitted by the Federal 
                agency under section 548(a) of the National Energy 
                Conservation Policy Act (42 U.S.C. 8258(a)), the head 
                of each Federal agency shall include
                            ``(i) a list of all new Federal buildings 
                        owned, operated, or controlled by the Federal 
                        agency; and
                            ``(ii) a statement concerning whether the 
                        Federal buildings meet or exceed the revised 
                        standards established under this paragraph.''.

SEC. 604. ENERGY SAVINGS PERFORMANCE CONTRACTS.

    (a) Permanent Extension.--Section 801(c) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287(c)) is repealed.
    (b) Replacement Facilities.--Section 801(a) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287(a)) is amended by adding at the 
end the following new paragraph:
            ``(3)(A) In the case of an energy savings contract or 
        energy savings performance contract providing for energy 
        savings through the construction and operation of one or more 
        buildings or facilities to replace one or more existing 
        buildings or facilities, benefits ancillary to the purpose of 
        such contract under paragraph (1) may include savings resulting 
        from reduced life-cycle costs of operation and maintenance at 
        such replacement buildings or facilities when compared with 
        costs of operation and maintenance at the buildings or 
        facilities being replaced, established through a methodology 
        set forth in the contract.
            ``(B) Notwithstanding paragraph (2)(B), aggregate annual 
        payments by an agency under an energy savings contract or 
        energy savings performance contract referred to in subparagraph 
        (A) may take into account (through the procedures developed 
        pursuant to this section) savings resulting from reduced costs 
        of operation and maintenance as described in that 
        subparagraph.''.
    (c) Energy Savings.--Section 804(2) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to read as 
follows:
            ``(2) The term `energy savings' means--
                    ``(A) a reduction in the cost of energy or water, 
                from a base cost established through a methodology set 
                forth in the contract, used in an existing federally 
                owned building or buildings or other federally owned 
                facilities as a result of--
                            ``(i) the lease or purchase of operating 
                        equipment, improvements, altered operation and 
                        maintenance, or technical services;
                            ``(ii) the increased efficient use of 
                        existing energy sources by co-generation or 
                        heat recovery, excluding any co-generation 
                        process for other than a federally owned 
                        building or buildings or other federally owned 
                        facilities; or
                            ``(iii) the increased efficient use of 
                        existing water sources; or
                    ``(B) in the case of a replacement building or 
                facility described in section 801(a)(3), a reduction in 
                the cost of energy, from a base cost established 
                through a methodology set forth in the contract, that 
                would otherwise be utilized in one or more existing 
                federally owned buildings or other federally owned 
                facilities by reason of the construction and operation 
                of the replacement building or facility.''.
    (d) Energy Savings Contract.--Section 804(3) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287c(3)) is amended to read as 
follows:
            ``(3) The terms `energy savings contract' and `energy 
        savings performance contract' mean a contract which provides 
        for--
                    ``(A) the performance of services for the design, 
                acquisition, installation, testing, and, where 
                appropriate, operation, maintenance and repair, of an 
                identified energy or water conservation measure or 
                series of measures at one or more locations; or
                    ``(B) energy savings through the construction and 
                operation of one or more buildings or facilities to 
                replace one or more existing buildings or facilities. 
                Such contracts shall, with respect to an agency 
                facility that is a public building as such term is 
                defined in section 13(1) of the Public Buildings Act of 
                1959 (40 U.S.C. 612(1)), be in compliance with the 
                prospectus requirements and procedures of section 7 of 
                the Public Buildings Act of 1959 (40 U.S.C. 606).''.
    (e) Energy or Water Conservation Measure.--Section 804(4) of the 
National Energy Conservation Policy Act (42 U.S.C. 8287c(4)) is amended 
to read as follows:
            ``(4) The term `energy or water conservation measure' 
        means--
                    ``(A) an energy conservation measure, as defined in 
                section 551(4) (42 U.S.C. 8259(4)); or
                    ``(B) a water conservation measure that improves 
                water efficiency, is life-cycle cost-effective, and 
                involves water conservation, water recycling or reuse, 
                more efficient treatment of wastewater or stormwater, 
                improvements in operation or maintenance efficiencies, 
                retrofit activities, or other related activities, not 
                at a Federal hydroelectric facility.''.
    (f) Pilot Program for Non-building Applications.--
            (1) The Secretary of Defense, and the heads of other 
        interested Federal agencies, are authorized to enter into up to 
        10 energy savings performance contracts under Title VIII of the 
        National Energy Conservation Policy Act (42 U.S.C. 8287 et 
        seq.) for the purpose of achieving energy or water savings, 
        secondary savings, and benefits incidental to those purposes, 
        in non-building applications, provided that the aggregate 
        payments to be made by the Federal government under such 
        contracts shall not exceed $100,000,000.
            (2) The Secretary of Energy, in consultation with the 
        Secretary of Defense and the heads of other interested Federal 
        agencies, shall select projects that demonstrate the 
        applicability and benefits of energy savings performance 
        contracting to a range of non-building applications.
            (3) For the purposes of this subsection:
                    (A) The term ``non-building application'' means--
                            (i) any class of vehicles, devices, or 
                        equipment that is transportable under its own 
                        power by land, sea, or air that consumes energy 
                        from any fuel source for the purpose of such 
                        transportability, or to maintain a controlled 
                        environment within such vehicle, device, or 
                        equipment; or
                            (ii) any Federally owned equipment used to 
                        generate electricity or transport water.
                    (B) The term ``secondary savings'', 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.
            (4) Not later than 3 years after the date of enactment of 
        this section, the Secretary of Energy shall report to the 
        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 
        National Energy Conservation Policy act (42 U.S.C. 8287 et 
        seq.).
            (5) Section 546(c)(3) of the National Energy Conservation 
        Policy Act (42 U.S.C. 8256) is amended by striking the word 
        ``facilities'', and inserting the words ``facilities, equipment 
        and vehicles'', in lieu thereof.
    (g) Review.--Within 180 days after the date of the enactment of 
this section, 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 the Committee on Energy and 
Commerce of the House of Representatives and the Committee on Energy 
and Natural Resources of the Senate, and shall implement identified 
administrative and regulatory changes to increase program flexibility 
and effectiveness to the extent that such changes are consistent with 
statutory authority.

SEC. 605. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

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

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

    ``(a) Definitions.--In this section:
            ``(1) The term `Energy Star product' means a product that 
        is rated for energy efficiency under an Energy Star program.
            ``(2) The term `Energy Star program' means the program 
        established by section 324A of the Energy Policy and 
        Conservation Act.
            ``(3) The term `executive agency' has the meaning given the 
        term in section 4 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 403).
            ``(4) The term `FEMP designated product' means a product 
        that is designated under the Federal Energy Management Program 
        of the Department of Energy as being among the highest 25 
        percent of equivalent products for energy efficiency.
    ``(b) Procurement of Energy Efficient Products.--
            ``(1) Requirement.--To meet the requirements of an 
        executive agency for an energy consuming product, the head of 
        the executive agency shall, except as provided in paragraph 
        (2), procure an Energy Star product or a FEMP designated 
        product.
            ``(2) Exceptions.--The head of an executive agency is not 
        required to procure an Energy Star product or FEMP designated 
        product under paragraph (1) if the head of the executive agency 
        finds in writing that--
                    ``(A) 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
                    ``(B) no Energy Star product or FEMP designated 
                product is reasonably available that meets the 
                functional requirements of the executive agency.
            ``(3) Procurement planning.--The head of an executive 
        agency shall incorporate into the specifications for all 
        procurements involving energy consuming products and systems, 
        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.
    ``(c) Listing of Energy Efficient Products in Federal Catalogs.--
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.
    ``(d) Designation of Electric Motors.--In the case of electric 
motors of 1 to 500 horsepower, agencies shall select only premium 
efficient motors that meet a standard designated by the Secretary. The 
Secretary shall designate such a standard within 120 days after the 
date of the enactment of this section, after considering the 
recommendations of associated electric motor manufacturers and energy 
efficiency groups.
    ``(e) Regulations.--Not later than 180 days after the date of the 
enactment of this section, the Secretary shall issue guidelines to 
carry out this section.''.
    (b) Conforming Amendment.--The table of contents in section 1(b) of 
the National Energy Conservation Policy Act (42 U.S.C. 8201 note) is 
amended by inserting after the item relating to the end of the items 
relating to part 3 of title V the following:

``Sec. 552. Federal procurement of energy efficient products.''.

SEC. 606. CONGRESSIONAL BUILDING EFFICIENCY.

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

``SEC. 553. CONGRESSIONAL BUILDING EFFICIENCY.

    ``(a) In General.--The Architect of the Capitol--
            ``(1) shall develop, update, and implement a cost-effective 
        energy conservation and management plan (referred to in this 
        section as the `plan') for all facilities administered by the 
        Congress (referred to in this section as `congressional 
        buildings') to meet the energy performance requirements for 
        Federal buildings established under section 543(a)(1); and
            ``(2) shall submit the plan to Congress, not later than 180 
        days after the date of enactment of this section.
    ``(b) Plan Requirements.--The plan shall include--
            ``(1) a description of the life-cycle cost analysis used to 
        determine the cost-effectiveness of proposed energy efficiency 
        projects;
            ``(2) a schedule of energy surveys to ensure complete 
        surveys of all congressional buildings every 5 years to 
        determine the cost and payback period of energy and water 
        conservation measures;
            ``(3) a strategy for installation of life-cycle cost-
        effective energy and water conservation measures;
            ``(4) the results of a study of the costs and benefits of 
        installation of submetering in congressional buildings; and
            ``(5) information packages and `how-to' guides for each 
        Member and employing authority of Congress that detail simple, 
        cost-effective methods to save energy and taxpayer dollars in 
        the workplace.
    ``(c) Annual Report.--The Architect shall submit to Congress 
annually a report on congressional energy management and conservation 
programs required under this section that describes in detail--
            ``(1) energy expenditures and savings estimates for each 
        facility;
            ``(2) energy management and conservation projects; and
            ``(3) future priorities to ensure compliance with this 
        section.''.
    (b) Table of Contents Amendment.--The table of contents in section 
1(b) of the National Energy Conservation Policy Act is amended by 
adding at the end of the items relating to part 3 of title V the 
following new item:

``Sec. 553. Energy and water savings measures in congressional 
                            buildings.''.
    (c) Repeal.--Section 310 of the Legislative Branch Appropriations 
Act, 1999 (40 U.S.C. 166i), is repealed.
    (d) Energy Infrastructure.--The Architect of the Capitol, building 
on the Master Plan Study completed in July 2000, shall commission a 
study to evaluate the energy infrastructure of the Capital Complex to 
determine how the infrastructure could be augmented to become more 
energy efficient, using unconventional and renewable energy resources, 
in a way that would enable the Complex to have reliable utility service 
in the event of power fluctuations, shortages, or outages.
    (e) Authorization.--There are authorized to be appropriated to the 
Architect of the Capitol to carry out subsection (d), not more than 
$2,000,000 for fiscal year 2004.

SEC. 607. INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY 
              FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR 
              CONCRETE.

    (a) Amendment.--Subtitle F of the Solid Waste Disposal Act (42 
U.S.C. 6961 et seq.) is amended by adding at the end the following new 
section:

``SEC. 6005. INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY 
              FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR 
              CONCRETE.

    ``(a) Definitions.--In this section:
            ``(1) Agency head.--The term `agency head' means--
                    ``(A) the Secretary of Transportation; and
                    ``(B) 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.
            ``(2) Cement or concrete project.--The term `cement or 
        concrete project' 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--
                    ``(A) involves the procurement of cement or 
                concrete; and
                    ``(B) is carried out in whole or in part using 
                Federal funds.
            ``(3) Recovered mineral component.--The term `recovered 
        mineral component' means
                    ``(A) ground granulated blast furnace slag;
                    ``(B) coal combustion fly ash; and
                    ``(C) 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.
    ``(b) Implementation of Requirements.--
            ``(1) In general.--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.
            ``(2) Priority.--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.
            ``(3) Conformance.--The Administrator and each agency head 
        shall carry out this subsection in accordance with section 
        6002.
    ``(c) Full Implementation Study.--
            ``(1) In general.--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.
            ``(2) Matters to be addressed.--The study shall--
                    ``(A) 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;
                    ``(B) identify all barriers in procurement 
                requirements to fuller realization of energy savings 
                and environmental benefits, including barriers 
                resulting from exceptions from current law; and
                    ``(C)(i) 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;
                    ``(ii) evaluate the feasibility of establishing 
                guidelines or standards for optimized substitution 
                rates of recovered mineral component in those cement or 
                concrete projects; and
                    ``(iii) identify any potential environmental or 
                economic effects that may result from greater 
                substitution of recovered mineral component in those 
                cement or concrete projects.
            ``(3) Report.--Not later than 30 months after the date of 
        enactment of this section, the Administrator shall submit to 
        the Committee on Appropriations and Committee on Environment 
        and Public Works of the Senate and the Committee on 
        Appropriations, Committee on Energy and Commerce, and Committee 
        on Transportation and Infrastructure of the House of 
        Representatives a report on the study.
    ``(d) Additional Procurement Requirements.--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, within 1 year of 
the release of the report in accordance with subsection (c)(3), take 
additional actions authorized under this section 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--
            ``(1) realize more fully the energy savings and 
        environmental benefits associated with increased substitution; 
        and
            ``(2) eliminate barriers identified under subsection (c).
    ``(e) Effect of Section.--Nothing in this section affects the 
requirements of section 6002 (including the guidelines and 
specifications for implementing those requirements).''.
    (b) Table of Contents Amendment.--The table of contents of the 
Solid Waste Disposal Act is amended by adding after the item relating 
to section 6004 the following new item:

``Sec. 6005. Increased use of recovered mineral component in federally 
                            funded projects involving procurement of 
                            cement or concrete.''.

SEC. 608. UTILITY ENERGY SERVICE CONTRACTS.

    Section 546(c)(1) of the National Energy Conservation Policy Act 
(42 U.S.C. 8256(c)) is amended to read as follows:
            ``(1) Agencies are authorized and encouraged to participate 
        in programs, including utility energy services contracts, 
        conducted by gas, water and electric utilities and generally 
        available to customers of such utilities, for the purposes of 
        increased energy efficiency, water conservation or the 
        management of electricity demand.''.

SEC. 609. STUDY OF ENERGY EFFICIENCY STANDARDS.

    The Secretary of Energy shall contract with the National Academy of 
Sciences for a study, to be completed within one year of enactment of 
this section, 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 of the Academy to the 
Congress.

                  Subtitle B--State and Local Programs

SEC. 611. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT PROGRAM.

    (a) Grants.--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.
    (b) Purpose of Grants.--The Secretary may make grants on a 
competitive basis for--
            (1) investments that develop alternative, renewable and 
        distributed energy supplies;
            (2) energy efficiency projects and energy conservation 
        programs;
            (3) studies and other activities that improve energy 
        efficiency in low income rural and urban communities;
            (4) planning and development assistance for increasing the 
        energy efficiency of buildings and facilities; and
            (5) technical and financial assistance to local government 
        and private entities on developing new renewable and 
        distributed sources of power or combined heat and power 
        generation.
    (c) Definition.--For purposes of this section, the term ``Indian 
tribe'' means any Indian tribe, band, nation, or other organized group 
or community, including any Alaskan Native village or regional or 
village corporation as defined in or established pursuant to the Alaska 
Native Claims Settlement Act (43 U.S.C. 1601 et seq.), which is 
recognized as eligible for the special programs and services provided 
by the United States to Indians because of their status as Indians.
    (d) Authorization of Appropriations.--For the purposes of this 
section there are authorized to be appropriated to the Secretary of 
Energy $20,000,000 for fiscal year 2004 and each fiscal year thereafter 
through fiscal year 2006.

SEC. 612. ENERGY EFFICIENT PUBLIC BUILDINGS.

    (a) Grants.--The Secretary of Energy may make grants to the State 
agency responsible for developing State energy conservation plans under 
section 362 of the Energy Policy and Conservation Act (42 U.S.C. 6322), 
or, if no such agency exists, a State agency designated by the Governor 
of the State, to assist units of local government in the State in 
improving the energy efficiency of public buildings and facilities--
            (1) 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 chapter 8 of the 2000 International 
        Energy Conservation Code, or a similar State code intended to 
        achieve substantially equivalent efficiency levels; or
            (2) 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.
    (b) Administration.--State energy offices receiving grants under 
this section shall--
            (1) maintain such records and evidence of compliance as the 
        Secretary may require; and
            (2) 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.
    (c) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary of 
Energy such sums as may be necessary for each of fiscal years 2003 
through 2012. Not more than 30 percent of appropriated funds shall be 
used for administration.

SEC. 613. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.

    (a) Definitions.--In this section:
            (1) The term ``eligible State'' means a State that meets 
        the requirements of subsection (b).
            (2) The term ``Energy Star program'' means the program 
        established by section 324A of the Energy Policy and 
        Conservation Act.
            (3) The term ``residential Energy Star product'' means a 
        product for a residence that is rated for energy efficiency 
        under the Energy Star program.
            (4) The term ``State energy office'' means the State agency 
        responsible for developing State energy conservation plans 
        under section 362 of the Energy Policy and Conservation Act (42 
        U.S.C. 6322).
            (5) The term ``State program'' means a State energy 
        efficient appliance rebate program described in subsection 
        (b)(1).
    (b) Eligible States.--A State shall be eligible to receive an 
allocation under subsection (c) if the State--
            (1) 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;
            (2) submits an application for the allocation at such time, 
        in such form, and containing such information as the Secretary 
        may require; and
            (3) 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.
    (c) Amount of Allocations.--
            (1) 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.
            (2) 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.
    (d) Use of Allocated Funds.--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.
    (e) Issuance of Rebates.--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
            (1) the amount of the allocation to the State energy office 
        under subsection (c);
            (2) the amount of any Federal or State tax incentive 
        available for the purchase of the residential Energy Star 
        product; and
            (3) 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.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $50,000,000 for each of the 
fiscal years 2004 through 2008.

                     Subtitle C--Consumer Products

SEC. 621. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL PRODUCTS.

    (a) Definitions.--Section 321 of the Energy Policy and Conservation 
Act (42 U.S.C. 6291) is amended--
            (1) in subparagraph (30)(S), by striking the period and 
        adding at the end the following: ``but does not include any 
        lamps specifically designed to be used for special purpose 
        applications, and also does not include any lamp not described 
        in subparagraph (D) that is excluded by the Secretary, by 
        rule.''; and
            (2) by adding at the end the following:
            ``(32) The term `battery charger' means a device that 
        charges batteries for consumer products.
            ``(33) The term `commercial refrigerator, freezer and 
        refrigerator-freezer' means a refrigerator, freezer or 
        refrigerator-freezer that--
                    ``(A) is not a consumer product regulated under 
                this Act; and
                    ``(B) incorporates most components involved in the 
                vapor-compression cycle and the refrigerated 
                compartment in a single package.
            ``(34) The term `external power supply' means an external 
        power supply circuit that is used to convert household electric 
        current into either DC current or lower-voltage AC current to 
        operate a consumer product.
            ``(35) The term `illuminated exit sign' means a sign that--
                    ``(A) is designed to be permanently fixed in place 
                to identify an exit; and
                    ``(B) consists of an electrically powered integral 
                light source that illuminates the legend `EXIT' and any 
                directional indicators and provides contrast between 
                the legend, any directional indicators, and the 
                background.
            ``(36)(A) Except as provided in subparagraph (B), the term 
        `low-voltage dry-type transformer' means a transformer that--
                    ``(i) has an input voltage of 600 volts or less;
                    ``(ii) is air-cooled;
                    ``(iii) does not use oil as a coolant; and
                    ``(iv) is rated for operation at a frequency of 60 
                Hertz.
            ``(B) The term `low-voltage dry-type transformer' does not 
        include--
                    ``(i) transformers with multiple voltage taps, with 
                the highest voltage tap equaling at least 20 percent 
                more than the lowest voltage tap;
                    ``(ii) transformers, 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
                    ``(iii) any transformer not listed in clause (ii) 
                that is excluded by the Secretary by rule because the 
                transformer is designed for a special application and 
                the application of standards to the transformer would 
                not result in significant energy savings.
            ``(37)(A) Except as provided in subsection (B), the term 
        `distribution transformer' means a transformer that--
                    ``(i) has an input voltage of 34.5 kilovolts or 
                less;
                    ``(ii) has an output voltage of 600 volts or less; 
                and
                    ``(iii) is rated for operation at a frequency of 60 
                Hertz.
            ``(B) The term `distribution transformer' does not 
        include--
                    ``(i) transformers with multiple voltage taps, with 
                the highest voltage tap equaling at least 15 percent 
                more than the lowest voltage tap;
                    ``(ii) transformers, such as those commonly known 
                as drive transformers, rectifier transformers, 
                autotransformers, 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
                    ``(iii) any transformer not listed in clause (ii) 
                that is excluded by the Secretary by rule because the 
                transformer is designed for a special application, is 
                unlikely to be used in general purpose applications, 
                and the application of standards to the transformer 
                would not result in significant energy savings.
            ``(38) The term `standby mode' means the lowest amount of 
        electric power used by a household appliance when not 
        performing its active functions, as defined on an individual 
        product basis by the Secretary.
            ``(39) The term `torchiere' means a portable electric lamp 
        with a reflector bowl that directs light upward so as to give 
        indirect illumination.
            ``(40) The term `transformer' means a device consisting of 
        two or more coils of insulated wire that transfers alternating 
        current by electromagnetic induction from one coil to another 
        to change the original voltage or current value.
            ``(41) The term `unit heater' means a self-contained fan-
        type heater designed to be installed within the heated space, 
        except that such term does not include a warm air furnace.
            ``(42) The term `traffic signal module' 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.''
    (b) Test Procedures.--Section 323 of the Energy Policy and 
Conservation Act (42 U.S.C. 6293) is amended--
            (1) in subsection (b), by adding at the end the following:
            ``(9) 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.
            ``(10) Test procedures for low voltage dry-type 
        distribution transformers shall be based on the `Standard Test 
        Method for Measuring the Energy Consumption of Distribution 
        Transformers' prescribed by the National Electrical 
        Manufacturers Association (NEMA TP 2-1998). The Secretary may 
        review and revise this test procedure.
            ``(11) 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.
            ``(12) 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.''; and
            (2) by adding at the end the following:
    ``(f) Additional Consumer and Commercial Products.--The Secretary 
shall within 24 months after the date of enactment of this subsection 
prescribe testing requirements for suspended ceiling fans, refrigerated 
bottled or canned beverage vending machines, 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.''.
    (c) New Standards.--Section 325 of the Energy Policy and 
Conservation Act (42 U.S.C. 6295) is amended by adding at the end the 
following:
    ``(u) Standby Mode Electric Energy Consumption.--
            ``(1) Initial rulemaking.--
                    ``(A) The Secretary shall, within 18 months after 
                the date of enactment of this subsection, prescribe by 
                notice and comment, definitions of standby mode and 
                test procedures for the standby mode power use of 
                battery chargers and external power supplies. In 
                establishing these test procedures, the Secretary shall 
                consider, among other factors, existing test procedures 
                used for measuring energy consumption in standby mode 
                and assess the current and projected future market for 
                battery chargers and external power supplies. This 
                assessment shall include estimates of the significance 
                of potential energy savings from technical improvements 
                to these products and suggested product classes for 
                standards. Prior to the end of this time period, the 
                Secretary shall hold a scoping workshop to discuss and 
                receive comments on plans for developing energy 
                conservation standards for standby mode energy use for 
                these products.
                    ``(B) The Secretary shall, within 3 years after the 
                date of enactment of this subsection, issue a final 
                rule that determines whether energy conservation 
                standards shall be promulgated for battery chargers and 
                external power supplies or classes thereof. For each 
                product class, any such standards shall be set at the 
                lowest level of standby energy use that--
                            ``(i) meets the criteria of subsections 
                        (o), (p), (q), (r), (s) and (t); and
                            ``(ii) will result in significant overall 
                        annual energy savings, considering both standby 
                        mode and other operating modes.
            ``(2) Designation of additional covered products.--
                    ``(A) Not later than 180 days after the date of 
                enactment of this subsection, the Secretary shall 
                publish for public comment and public hearing a notice 
                to determine whether any non-covered products should be 
                designated as covered products for the purpose of 
                instituting a rulemaking under this section to 
                determine whether an energy conservation standard 
                restricting standby mode energy consumption, should be 
                promulgated; except that any restriction on standby 
                mode energy consumption shall be limited to major 
                sources of such consumption.
                    ``(B) In making the determinations pursuant to 
                subparagraph (A) of whether to designate new covered 
                products and institute rulemakings, the Secretary 
                shall, among other relevant factors and in addition to 
                the criteria in section 322(b), consider--
                            ``(i) standby mode power consumption 
                        compared to overall product energy consumption; 
                        and
                            ``(ii) the priority and energy savings 
                        potential of standards which may be promulgated 
                        under this subsection compared to other 
                        required rulemakings under this section and the 
                        available resources of the Department to 
                        conduct such rulemakings.
                    ``(C) Not later than 1 year after the date of 
                enactment of this subsection, the Secretary shall issue 
                a determination of any new covered products for which 
                he intends to institute rulemakings on standby mode 
                pursuant to this section and he shall state the dates 
                by which he intends to initiate those rulemakings.
            ``(3) Review of standby energy use in covered products.--In 
        determining pursuant to section 323 whether test procedures and 
        energy conservation standards pursuant to this section should 
        be revised, the Secretary shall consider for covered products 
        which are major sources of standby mode energy consumption 
        whether to incorporate standby mode into such test procedures 
        and energy conservation standards, taking into account, among 
        other relevant factors, the criteria for non-covered products 
        in subparagraph (B) of paragraph (2) of this subsection.
            ``(4) Rulemaking.--
                    ``(A) Any rulemaking instituted under this 
                subsection or for covered products under this section 
                which restricts standby mode power consumption shall be 
                subject to the criteria and procedures for issuing 
                energy conservation standards set forth in this section 
                and the criteria set forth in subparagraph (B) of 
                paragraph (2) of this subsection.
                    ``(B) No standard can be proposed for new covered 
                products or covered products in a standby mode unless 
                the Secretary has promulgated applicable test 
                procedures for each product pursuant to section 323.
                    ``(C) The provisions of section 327 shall apply to 
                new covered products which are subject to the 
                rulemakings for standby mode after a final rule has 
                been issued.
            ``(5) Effective date.--Any standard promulgated under this 
        subsection shall be applicable to products manufactured or 
        imported 3 years after the date of promulgation.
            ``(6) Voluntary programs.--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, which are designed to reduce standby mode energy use.
    ``(v) Suspended Ceiling Fans, Vending Machines, and Commercial 
Refrigerators, Freezers and Refrigerator-Freezers.--The Secretary shall 
within 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 (l) and (m). Any 
standard prescribed under this subsection shall apply to products 
manufactured 3 years after the date of publication of a final rule 
establishing such standard.
    ``(w) Illuminated Exit Signs.--Illuminated exit signs manufactured 
on or after January 1, 2005 shall meet the Version 2.0 Energy Star 
Program performance requirements for illuminated exit signs prescribed 
by the Environmental Protection Agency.
    ``(x) Torchieres.--Torchieres manufactured on or after January 1, 
2005--
            ``(1) shall consume not more than 190 watts of power; and
            ``(2) shall not be capable of operating with lamps that 
        total more than 190 watts.
    ``(y) Distribution Transformers.--The efficiency of low voltage 
dry-type 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 `Guide for Determining Energy Efficiency for 
Distribution Transformers' published by the National Electrical 
Manufacturers Association (NEMA TP-1-2002).
    ``(z) Traffic Signal Modules.--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 paragraph, and shall be installed with compatible, electrically-
connected signal control interface devices and conflict monitoring 
systems.
    ``(aa) Unit Heaters.--Unit heaters manufactured on or after the 
date that is three years after the date of enactment of the Energy 
Policy Act of 2003 shall be equipped with an intermittent ignition 
device and shall have either power venting or an automatic flue damper.
    ``(bb) Medium Base Compact Fluorescent Lamps.--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 CFLs, 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 CFLs. The Secretary may, by rule, revise 
these requirements or establish other requirements considering energy 
savings, cost effectiveness, and consumer satisfaction.
    ``(cc) Effective Date.--The provisions of section 327 shall apply--
            ``(1) to products for which standards are to be set 
        pursuant to subsection (v) of this section 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 set pursuant to 
        subsection (v) for that product takes effect; and
            ``(2) to products for which standards are set in 
        subsections (w) through (bb) of this section on the date of 
        enactment of the Energy Policy Act of 2003, except that any 
        state or local standards prescribed or enacted prior to the 
        date of enactment of the Energy Policy Act of 2003 shall not be 
        preempted until the standards set in subsections (w) through 
        (bb) take effect.''.

SEC. 622. ENERGY LABELING.

    (a) Rulemaking on Effectiveness of Consumer Product Labeling.--
Paragraph (2) of section 324(a) of the Energy Policy and Conservation 
Act (42 U.S.C. 6294(a)(2)) is amended by adding at the end the 
following:
                    ``(F) Not later than 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 within 2 years after the date of enactment of 
                this subparagraph.''.
    (b) Rulemaking on Labeling for Additional Products.--Section 324(a) 
of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)) is 
further amended by adding at the end the following:
            ``(5) The Secretary 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 ``Standard for the 
        Labeling of Distribution Transformer Efficiency'' prescribed by 
        the National Electrical Manufacturers Association (NEMA TP-3) 
        as in effect upon the date of enactment of this Act.''.

SEC. 623. ENERGY STAR PROGRAM.

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

``SEC. 324A. ENERGY STAR PROGRAM.

    ``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 two agencies. The 
Administrator and the Secretary shall--
            ``(1) promote Energy Star compliant technologies as the 
        preferred technologies in the marketplace for achieving energy 
        efficiency and to reduce pollution;
            ``(2) work to enhance public awareness of the Energy Star 
        label, including special outreach to small businesses;
            ``(3) preserve the integrity of the Energy Star label;
            ``(4) solicit the comments of interested parties in 
        establishing a new Energy Star product category, 
        specifications, or criteria, or in revising a product category, 
        and upon adoption of a new or revised product category, 
        specifications, or criteria, publish a notice of any changes in 
        product categories, specifications or criteria along with an 
        explanation of such changes, and, where appropriate, responses 
        to comments submitted by interested parties; and
            ``(5) unless waived or reduced by mutual agreement between 
        the Administrator, the Secretary, and the affected parties, 
        provide not less than 12 months lead time prior to 
        implementation of changes in product categories, 
        specifications, or criteria as may be adopted pursuant to this 
        section.''.
    (b) Table of Contents Amendment.--The table of contents of the 
Energy Policy and Conservation Act is amended by inserting after the 
item relating to section 324 the following new item:

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

SEC. 624. HVAC MAINTENANCE CONSUMER EDUCATION PROGRAM.

    Section 337 of the Energy Policy and Conservation Act (42 U.S.C. 
6307) is amended by adding at the end the following:
    ``(c) HVAC Maintenance.--For the purpose of ensuring that installed 
air conditioning and heating systems operate at their maximum rated 
efficiency levels, the Secretary shall, within 180 days of the date of 
enactment of this subsection, carry out a program to educate homeowners 
and small business owners concerning the energy savings resulting from 
properly conducted maintenance of air conditioning, heating, and 
ventilating systems. 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.
    ``(d) Small Business Education and Assistance.--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 business 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 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.''.

                       Subtitle D--Public Housing

SEC. 631. CAPACITY BUILDING FOR ENERGY-EFFICIENT, AFFORDABLE HOUSING.

    Section 4(b) of the HUD Demonstration Act of 1993 (42 U.S.C. 9816 
note) is amended--
            (1) in paragraph (1), by inserting before the semicolon at 
        the end the following: ``, including capabilities regarding the 
        provision of energy efficient, affordable housing and 
        residential energy conservation measures''; and
            (2) in paragraph (2), by inserting before the semicolon the 
        following: ``, including such activities relating to the 
        provision of energy efficient, affordable housing and 
        residential energy conservation measures that benefit low-
        income families''.

SEC. 632. INCREASE OF CDBG PUBLIC SERVICES CAP FOR ENERGY CONSERVATION 
              AND EFFICIENCY ACTIVITIES.

    Section 105(a)(8) of the Housing and Community Development Act of 
1974 (42 U.S.C. 5305(a)(8)) is amended--
            (1) by inserting ``or efficiency'' after ``energy 
        conservation'';
            (2) by striking ``, and except that'' and inserting ``; 
        except that''; and
            (3) by inserting before the semicolon at the end the 
        following: ``; and except that each percentage limitation under 
        this paragraph on the amount of assistance provided under this 
        title that may be used for the provision of public services is 
        hereby increased by 10 percent, but such percentage increase 
        may be used only for the provision of public services 
        concerning energy conservation or efficiency''.

    SEC. 633. FHA MORTGAGE INSURANCE INCENTIVES FOR ENERGY EFFICIENT 
              HOUSING.

    (a) Single Family Housing Mortgage Insurance.--Section 203(b)(2) of 
the National Housing Act (12 U.S.C. 1709(b)(2)) is amended, in the 
first undesignated and indented paragraph beginning after subparagraph 
(B)(iii) (relating to solar energy systems)--
            (1) by inserting ``or paragraph (10)'' before the first 
        comma; and
            (2) by striking ``20 percent'' and inserting ``30 
        percent''.
    (b) Multifamily Housing Mortgage Insurance.--Section 207(c) of the 
National Housing Act (12 U.S.C. 1713(c)) is amended, in the second 
undesignated paragraph beginning after paragraph (3) (relating to solar 
energy systems and residential energy conservation measures), by 
striking ``20 percent'' and inserting ``30 percent''.
    (c) Cooperative Housing Mortgage Insurance.--Section 213(p) of the 
National Housing Act (12 U.S.C. 1715e(p)) is amended by striking ``20 
per centum'' and inserting ``30 percent''.
    (d) Rehabilitation and Neighborhood Conservation Housing Mortgage 
Insurance.--Section 220(d)(3)(B)(iii) of the National Housing Act (12 
U.S.C. 1715k(d)(3)(B)(iii)) is amended by striking ``20 per centum'' 
and inserting ``30 percent''.
    (e) Low-income Multifamily Housing Mortgage Insurance.--Section 
221(k) of the National Housing Act (12 U.S.C. 1715l(k)) is amended by 
striking ``20 per centum'' and inserting ``30 percent''.
    (f) Elderly Housing Mortgage Insurance.--The proviso at the end of 
section 231(c)(2) of the National Housing Act (12 U.S.C. 1715v(c)(2)) 
is amended by striking ``20 per centum'' and inserting ``30 percent''.
    (g) Condominium Housing Mortgage Insurance.--Section 234(j) of the 
National Housing Act (12 U.S.C. 1715y(j)) is amended by striking ``20 
per centum'' and inserting ``30 percent''.

SEC. 634. PUBLIC HOUSING CAPITAL FUND.

    Section 9 of the United States Housing Act of 1937 (42 U.S.C. 
1437g) is amended--
            (1) in subsection (d)(1)--
                    (A) in subparagraph (I), by striking ``and'' at the 
                end;
                    (B) in subparagraph (J), by striking the period at 
                the end and inserting a semicolon; and
                    (C) by adding at the end the following new 
                subparagraphs:
                    ``(K) 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
                    ``(L) integrated utility management and capital 
                planning to maximize energy conservation and efficiency 
                measures.''; and
            (2) in subsection (e)(2)(C)--
                    (A) by striking ``The'' and inserting the 
                following:
                            ``(i) in general.--The''; and
                    (B) by adding at the end the following:
                            ``(ii) Third party contracts.--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.
                            ``(iii) Term of contract.--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 generations, advanced energy savings 
                        technologies, including renewable energy 
                        generation, and other such retrofits.''.

SEC. 635. GRANTS FOR ENERGY-CONSERVING IMPROVEMENTS FOR ASSISTED 
              HOUSING.

    Section 251(b)(1) of the National Energy Conservation Policy Act 
(42 U.S.C. 8231(1)) is amended--
            (1) by striking ``financed with loans'' and inserting 
        ``assisted'';
            (2) by inserting after ``1959,'' the following: ``which are 
        eligible multifamily housing projects (as such term is defined 
        in section 512 of the Multi-family Assisted Housing Reform and 
        Affordability Act of 1997 (42 U.S.C. 1437f note)) and are 
        subject to mortgage restructuring and rental assistance 
        sufficiency plans under such Act,''; and
            (3) by inserting after the period at the end of the first 
        sentence the following new sentence: ``Such improvements may 
        also include the installation of energy and water conserving 
        fixtures and fittings that conform to the American Society of 
        Mechanical Engineers/American National Standards Institute 
        standards A112.19.2-1998 and A112.18.1-2000, or any revision 
        thereto, applicable at the time of installation.''.

SEC. 636. NORTH AMERICAN DEVELOPMENT BANK.

    Part 2 of subtitle D of title V of the North American Free Trade 
Agreement Implementation Act (22 U.S.C. 290m 290m-3) is amended by 
adding at the end the following:

``SEC. 545. SUPPORT FOR CERTAIN ENERGY POLICIES.

    ``Consistent with the focus of the Bank's Charter on environmental 
infrastructure projects, the Board members representing the United 
States should use their voice and vote to encourage the Bank to finance 
projects related to clean and efficient energy, including energy 
conservation, that prevent, control, or reduce environmental pollutants 
or contaminants.''.

SEC. 637. ENERGY-EFFICIENT APPLIANCES.

    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 
National Energy Policy and Conservation Act (as amended by this Act), 
unless the purchase of energy-efficient appliances is not cost-
effective to the agency.

SEC. 638. ENERGY EFFICIENCY STANDARDS.

    Section 109 of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12709) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``1 year after the date of 
                        the enactment of the Energy Policy Act of 
                        1992'' and inserting ``September 30, 2003'';
                            (ii) in subparagraph (A), by striking 
                        ``and'' at the end;
                            (iii) in subparagraph (B), by striking the 
                        period at the end and inserting ``; and''; and
                            (iv) by adding at the end the following:
                    ``(C) rehabilitation and new construction of public 
                and assisted housing funded by HOPE VI revitalization 
                grants under section 24 of the United States Housing 
                Act of 1937 (42 U.S.C. 1437v), where such standards are 
                determined to be cost effective by the Secretary of 
                Housing and Urban Development.''; and
                    (B) in paragraph (2), by striking ``Council of 
                American'' and all that follows through ``90.1-1989')'' 
                and inserting ``2000 International Energy Conservation 
                Code'';
            (2) in subsection (b)--
                    (A) by striking ``1 year after the date of the 
                enactment of the Energy Policy Act of 1992'' and 
                inserting ``September 30, 2003''; and
                    (B) by striking ``CABO'' and all that follows 
                through ``1989'' and inserting ``the 2000 International 
                Energy Conservation Code''; and
            (3) in subsection (c)--
                    (A) in the heading, by striking ``MODEL ENERGY 
                CODE'' and inserting ``INTERNATIONAL ENERGY 
                CONSERVATION CODE''; and
                    (B) by striking ``CABO'' and all that follows 
                through ``1989'' and inserting ``the 2000 International 
                Energy Conservation Code''.

SEC. 639. ENERGY STRATEGY FOR HUD.

    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 one 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 two 
years thereafter on progress in implementing the strategy.

                    TITLE VII--TRANSPORTATION FUELS

                 Subtitle A--Alternative Fuel Programs

SEC. 701. USE OF ALTERNATIVE FUELS BY DUAL-FUELED VEHICLES.

    Section 400AA(a)(3)(E) of the Energy Policy and Conservation Act 
(42 U.S.C. 6374(a)(3)(E)) is amended to read as follows:
                    ``(E)(i) 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 
                where--
                            ``(I) 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
                            ``(II) 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.
                    ``(ii) The Secretary shall monitor compliance with 
                this subparagraph by all such fleets and shall report 
                annually to the 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.''.

SEC. 702. FUEL USE CREDITS.

    (a) In General.--Section 312 of the Energy Policy Act of 1992 (42 
U.S.C. 13220) is amended to read as follows:

``SEC. 312. FUEL USE CREDITS.

    ``(a) Allocation.--
            ``(1) The Secretary shall allocate one credit under this 
        section to a fleet or covered person for each qualifying volume 
        of alternative fuel or biodiesel purchased for use in an on-
        road motor vehicle operated by the fleet that weighs more than 
        8,500 pounds gross vehicle weight rating.
            ``(2) No credits shall be allocated under this section for 
        purchase of an alternative fuel or biodiesel that is required 
        by Federal or State law.
            ``(3) A fleet or covered person seeking a credit under this 
        section shall provide written documentation to the Secretary 
        supporting the allocation of a credit to such fleet or covered 
        person under this section.
    ``(b) Use.--At the request of a fleet or covered person allocated a 
credit under subsection (a), the Secretary shall, for the year in which 
the purchase of a qualifying volume is made, treat that purchase as the 
acquisition of one alternative fueled vehicle the fleet or covered 
person is required to acquire under this title, title IV, or title V.
    ``(c) Treatment.--A credit provided to a fleet or covered person 
under this section shall be considered a credit under section 508.
    ``(d) Issuance of Rule.--Not later than 6 months after the date of 
enactment of this section, the Secretary shall issue a rule 
establishing procedures for the implementation of this section.
    ``(e) Definitions.--For the purposes of this section
            ``(1) the term `biodiesel' means a diesel fuel substitute 
        produced from non-petroleum renewable resources that meets the 
        registration requirements for fuels and fuel additives 
        established by the Environmental Protection Agency under 
        section 211 of the Clean Air Act; and
            ``(2) the term `qualifying volume' means--
                    ``(A) in the case of biodiesel, when used as a 
                component of fuel containing at least 20 percent 
                biodiesel by volume, 450 gallons, or if the Secretary 
                determines by rule that the average annual alternative 
                fuel use in light duty vehicles by fleets and covered 
                persons exceeds 450 gallons or gallon equivalents, the 
                amount of such average annual alternative fuel use; or
                    ``(B) in the case of an alternative fuel, the 
                amount of such fuel determined by the Secretary to have 
                an equivalent energy content to the amount of biodiesel 
                defined as a qualifying volume pursuant to subparagraph 
                (A).''.
    (b) Table of Contents Amendment.--The table of contents of the 
Energy Policy Act of 1992 is amended by adding at the end of the items 
relating to title III the following new item:

``Sec. 312. Fuel use credits.''

SEC. 703. NEIGHBORHOOD ELECTRIC VEHICLES.

    Section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211) is 
amended--
            (1) in paragraph (3), by striking ``or a dual fueled 
        vehicle'' and inserting ``, a dual fueled vehicle, or a 
        neighborhood electric vehicle'';
            (2) by striking ``and'' at the end of paragraph (13);
            (3) by striking the period at the end of paragraph (14) and 
        inserting ``; and''; and
            (4) by adding at the end the following:
            ``(15) the term `neighborhood electric vehicle' means a 
        motor vehicle--
                    ``(A) which meets the definition of a low-speed 
                vehicle, as such term is defined in part 571 of title 
                49, Code of Federal Regulations;
                    ``(B) which meets the definition of a zero-emission 
                vehicle, as such term is defined in section 86.1702-99 
                of title 40, Code of Federal Regulations;
                    ``(C) which meets the requirements of Federal Motor 
                Vehicle Safety Standard No. 500; and
                    ``(D) which has a top speed of not greater than 25 
                miles per hour.''.

SEC. 704. CREDITS FOR MEDIUM AND HEAVY DUTY DEDICATED VEHICLES.

    Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is 
amended by adding at the end the following:
    ``(e) Credit for Purchase of Medium and Heavy Duty Dedicated 
Vehicles.--
            ``(1) Definitions.--In this subsection:
                    ``(A) The term `medium duty dedicated vehicle' 
                means a dedicated vehicle that has a gross vehicle 
                weight rating of more than 8,500 pounds but not more 
                than 14,000 pounds.
                    ``(B) The term `heavy duty dedicated vehicle' means 
                a dedicated vehicle that has a gross vehicle weight 
                rating of more than 14,000 pounds.
            ``(2) Credits for medium duty vehicles.--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.
            ``(3) Credits for heavy duty vehicles.--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.
            ``(4) Use of credits.--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.''.

SEC. 705. ALTERNATIVE FUEL INFRASTRUCTURE.

    Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is 
further amended by adding at the end the following:
    ``(f) Credit for Investment in Alternative Fuel Infrastructure.--
            ``(1) Definitions.--In this subsection, the term 
        `qualifying infrastructure' means--
                    ``(A) equipment required to refuel or recharge 
                alternative fueled vehicles;
                    ``(B) facilities or equipment required to maintain, 
                repair, or operate alternative fueled vehicles;
                    ``(C) such other activities 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.
            ``(2) Issuance of credits.--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.
            ``(3) Amount.--For the purposes of credits under this 
        subsection--
                    ``(A) 1 credit shall be equal to a minimum 
                investment of $25,000 in cash or equivalent 
                expenditure, as determined by the Secretary; and
                    ``(B) except in the case of a Federal or State 
                fleet, no part of the investment may be provided by 
                Federal or State funds.
            ``(4) Use of credits.--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.''.

SEC. 706. INCREMENTAL COST ALLOCATION.

    Section 303(c) of the Energy Policy Act of 1992 (42 U.S.C. 13212(c) 
is amended by striking ``may'' and inserting ``shall''.

SEC. 707. REVIEW OF ALTERNATIVE FUEL PROGRAMS.

    (a) In General.--Not later than 1 year after the date of enactment 
of this section, the Secretary shall complete a study to determine the 
effect that titles III, IV, and V of the Energy Policy Act of 1992 (42 
U.S.C. 13211 et seq.) have had on the development of alternative fueled 
vehicle technology, its availability in the market, and the cost of 
light duty motor vehicles that are alternative fueled vehicles.
    (b) Topics.--As part of such study, the Secretary shall 
specifically identify--
            (1) the number of alternative fueled vehicles acquired by 
        fleets or covered persons required to acquire alternative 
        fueled vehicles;
            (2) the amount, by type, of alternative fuel actually used 
        in alternative fueled vehicles acquired by fleets or covered 
        persons;
            (3) the amount of petroleum displaced by the use of 
        alternative fuels in alternative fueled vehicles acquired by 
        fleets or covered persons;
            (4) the cost of compliance with vehicle acquisition 
        requirements by fleets or covered persons; and
            (5) 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.
    (c) Report.--Upon completion of the study, the Secretary shall 
submit to the Congress a report that describes the results of the study 
conducted under this section 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 (42 U.S.C. 13211 et seq.). Such study 
shall be updated on a regular basis as deemed necessary by the 
Secretary.

SEC. 708. HIGH OCCUPANCY VEHICLE EXCEPTION.

    Notwithstanding section 102(a)(1) 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 such vehicle is a dedicated vehicle (as 
defined in section 301 of the Energy Policy Act of 1992 (42 U.S.C. 
13211)).

SEC. 709. ALTERNATIVE COMPLIANCE AND FLEXIBILITY.

    (a) Alternative Compliance.--Title V of the Energy Policy Act of 
1992 is amended by adding at the end the following:

``SEC. 515. ALTERNATIVE COMPLIANCE.

    ``(a) Application for Waiver.--Any covered person subject to the 
requirements of section 501 and any State subject to the requirement of 
section 507(o) may petition the Secretary for a waiver of the 
applicable requirements of section 501 or 507(o).
    ``(b) Grant of Waiver.--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--
            ``(1) will achieve a reduction in its annual consumption of 
        petroleum fuels equal to the reduction in consumption of 
        petroleum that would result from compliance with section 501 or 
        507(o); and
            ``(2) is in compliance with all applicable vehicle emission 
        standards established by the Administrator under the Clean Air 
        Act.
    ``(c) Revocation of Waiver.--The Secretary shall revoke any waiver 
granted under this section if the State or covered person fails to 
comply with the requirements of subsection (b).''.
    (b) Credit for Hybrid Vehicles, Dedicated Alternative Fuel 
Vehicles, and Infrastructure.--Section 507 of the Energy Policy Act of 
1992 (42 U.S.C. 13258) (as amended by section 705) is amended by adding 
at the end the following:
    ``(r) Credits for New Qualified Hybrid Motor Vehicles.--
            ``(1) Definitions.--In this subsection:
                    ``(A) 2000 model year city fuel efficiency.--The 
                term `2000 model year city fuel efficiency', with 
                respect to a motor vehicle, means fuel efficiency 
                determined in accordance with the following tables:
                            ``(i) In the case of a passenger 
                        automobile:

                                               The 2000 model year city
``If vehicle inertia weight class                   fuel efficiency is:
        is:
        1,500 or 1,750 lbs
                                                              43.7 mpg 
        2,000 lbs
                                                              38.3 mpg 
        2,250 lbs
                                                              34.1 mpg 
        2,500 lbs
                                                              30.7 mpg 
        2,750 lbs
                                                              27.9 mpg 
        3,000 lbs
                                                              25.6 mpg 
        3,500 lbs
                                                              22.0 mpg 
        4,000 lbs
                                                              19.3 mpg 
        4,500 lbs
                                                              17.2 mpg 
        5,000 lbs
                                                              15.5 mpg 
        5,500 lbs
                                                              14.1 mpg 
        6,000 lbs
                                                              12.9 mpg 
        6,500 lbs
                                                              11.9 mpg 
        7,000 to 8,500 lbs
                                                              11.1 mpg.
                            ``(ii) In the case of a light truck:

                                               The 2000 model year city
``If vehicle inertia weight class                   fuel efficiency is:
        is:
        1,500 or 1,750 lbs
                                                              37.6 mpg 
        2,000 lbs
                                                              33.7 mpg 
        2,250 lbs
                                                              30.6 mpg 
        2,500 lbs
                                                              28.0 mpg 
        2,750 lbs
                                                              25.9 mpg 
        3,000 lbs
                                                              24.1 mpg 
        3,500 lbs
                                                              21.3 mpg 
        4,000 lbs
                                                              19.0 mpg 
        4,500 lbs
                                                              17.3 mpg 
        5,000 lbs
                                                              15.8 mpg 
        5,500 lbs
                                                              14.6 mpg 
        6,000 lbs
                                                              13.6 mpg 
        6,500 lbs
                                                              12.8 mpg 
        7,000 to 8,500 lbs
                                                              12.0 mpg.
                    ``(B) Administrator.--The term `Administrator' 
                means the Administrator of the Environmental Protection 
                Agency.
                    ``(C) Energy storage device.--The term `energy 
                storage device' means an onboard rechargeable energy 
                storage system or similar storage device.
                    ``(D) Fuel efficiency.--The term `fuel efficiency' 
                means the percentage increased fuel efficiency 
                specified in table 1 in paragraph (2)(C) over the 
                average 2000 model year city fuel efficiency of 
                vehicles in the same weight class.
                    ``(E) Maximum available power.--The term `maximum 
                available power', with respect to a new qualified 
                hybrid motor vehicle that is a passenger vehicle or 
                light truck, means the quotient obtained by dividing--
                            ``(i) the maximum power available from the 
                        electrical storage device of the new qualified 
                        hybrid motor vehicle, during a standard 10-
                        second pulse power or equivalent test; by
                            ``(ii) the sum of--
                                    ``(I) the maximum power described 
                                in clause (i); and
                                    ``(II) the net power of the 
                                internal combustion or heat engine, as 
                                determined in accordance with standards 
                                established by the Society of 
                                Automobile Engineers.
                    ``(F) Motor vehicle.--The term `motor vehicle' has 
                the meaning given the term in section 216 of the Clean 
                Air Act (42 U.S.C. 7550).
                    ``(G) New qualified hybrid motor vehicle.--The term 
                `new qualified hybrid motor vehicle' means a motor 
                vehicle that--
                            ``(i) draws propulsion energy from both--
                                    ``(I) an internal combustion engine 
                                (or heat engine that uses combustible 
                                fuel); and
                                    ``(II) an energy storage device;
                            ``(ii) in the case of a passenger 
                        automobile or light truck--
                                    ``(I) in the case of a 2001 or 
                                later model vehicle, receives a 
                                certificate of conformity under the 
                                Clean Air Act (42 U.S.C. 7401 et seq.) 
                                and produces emissions at a level that 
                                is at or below the standard established 
                                by a qualifying California standard 
                                described in section 243(e)(2) of the 
                                Clean Air Act (42 U.S.C. 7583(e)(2)) 
                                for that make and model year; and
                                    ``(II) in the case of a 2004 or 
                                later model vehicle, is certified by 
                                the Administrator as producing 
                                emissions at a level that is at or 
                                below the level established for Bin 5 
                                vehicles in the Tier 2 regulations 
                                promulgated by the Administrator under 
                                section 202(i) of the Clean Air Act (42 
                                U.S.C. 7521(i)) for that make and model 
                                year vehicle; and
                            ``(iii) employs a vehicle braking system 
                        that recovers waste energy to charge an energy 
                        storage device.
                    ``(H) Vehicle inertia weight class.--The term 
                `vehicle inertia weight class' has the meaning given 
                the term in regulations promulgated by the 
                Administrator for purposes of the administration of 
                title II of the Clean Air Act (42 U.S.C. 7521 et seq.).
            ``(2) Allocation.--
                    ``(A) In general.--The Secretary shall allocate a 
                partial credit to a fleet or covered person under this 
                title if the fleet or person acquires a new qualified 
                hybrid motor vehicle that is eligible to receive a 
                credit under each of the tables in subparagraph (C).
                    ``(B) Amount.--The amount of a partial credit 
                allocated under subparagraph (A) for a vehicle 
                described in that subparagraph shall be equal to the 
                sum of--
                            ``(i) the partial credits determined under 
                        table 1 in subparagraph (C); and
                            ``(ii) the partial credits determined under 
                        table 2 in subparagraph (C).
                    ``(C) Tables.--The tables referred to in 
                subparagraphs (A) and (B) are as follows:

                               ``Table 1

``Partial credit for increased fuel                   Amount of credit:
        efficiency:
    At least 125% but less than 150% of 2000 model                0.14 
        year city fuel efficiency.
    At least 150% but less than 175% of 2000 model                0.21 
        year city fuel efficiency.
    At least 175% but less than 200% of 2000 model                0.28 
        year city fuel efficiency.
    At least 200% but less than 225% of 2000 model                0.35 
        year city fuel efficiency.
    At least 225% but less than 250% of 2000 model                0.50.
        year city fuel efficiency.
                               ``Table 2

``Partial credit for `Maximum                         Amount of credit:
        Available Power':
    At least 5% but less than 10%.................               0.125 
    At least 10% but less than 20%................               0.250 
    At least 20% but less than 30%................               0.375 
    At least 30% or more..........................               0.500.

                    ``(D) Use of credits.--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 qualified hybrid motor 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.
            ``(3) Regulations.--The Secretary shall promulgate 
        regulations under which any Federal fleet that acquires a new 
        qualified hybrid motor vehicle will receive partial credits 
        determined under the tables contained in paragraph (2)(C) for 
        purposes of meeting the requirements of section 303.
    ``(s) Credit for Substantial Contribution Towards Use of Dedicated 
Vehicles in Noncovered Fleets.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Dedicated vehicle.--The term `dedicated 
                vehicle' includes--
                            ``(i) a light, medium, or heavy duty 
                        vehicle; and
                            ``(ii) a neighborhood electric vehicle.
                    ``(B) Medium or heavy duty vehicle.--The term 
                `medium or heavy duty vehicle' includes a vehicle 
                that--
                            ``(i) operates solely on alternative fuel; 
                        and
                            ``(ii)(I) in the case of a medium duty 
                        vehicle, has a gross vehicle weight rating of 
                        more than 8,500 pounds but not more than 14,000 
                        pounds; or
                            ``(II) in the case of a heavy duty vehicle, 
                        has a gross vehicle weight rating of more than 
                        14,000 pounds.
                    ``(C) Substantial contribution.--The term 
                `substantial contribution' (equal to 1 full credit) 
                means not less than $15,000 in cash or in kind 
                services, as determined by the Secretary.
            ``(2) Issuance of credits.--The Secretary shall issue a 
        credit to a fleet or covered person under this title if the 
        fleet or person makes a substantial contribution toward the 
        acquisition and use of dedicated vehicles by a person that 
        owns, operates, leases, or otherwise controls a fleet that is 
        not covered by this title.
            ``(3) Multiple credits for medium and heavy duty dedicated 
        vehicles.--The Secretary shall issue 2 full credits to a fleet 
        or covered person under this title if the fleet or person 
        acquires a medium or heavy duty dedicated vehicle.
            ``(4) Use of credits.--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.
            ``(5) Limitation.--Per vehicle credits acquired under this 
        subsection shall not exceed the per vehicle credits allowed 
        under this section to a fleet for qualifying vehicles in each 
        of the weight categories (light, medium, or heavy duty).
    ``(t) Credit for Substantial Investment in Alternative Fuel 
Infrastructure.--
            ``(1) Definitions.--In this section, the term `qualifying 
        infrastructure' means--
                    ``(A) equipment required to refuel or recharge 
                alternative fueled vehicles;
                    ``(B) facilities or equipment required to maintain, 
                repair, or operate alternative fueled vehicles;
                    ``(C) training programs, educational materials, or 
                other activities necessary to provide information 
                regarding the operation, maintenance, or benefits 
                associated with alternative fueled vehicles; and
                    ``(D) such other activities 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.
            ``(2) Issuance of credits.--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.
            ``(3) Amount.--For the purposes of credits under this 
        subsection--
                    ``(A) 1 credit shall be equal to a minimum 
                investment of $25,000 in cash or in kind services, as 
                determined by the Secretary; and
                    ``(B) except in the case of a Federal or State 
                fleet, no part of the investment may be provided by 
                Federal or State funds.
            ``(4) Use of credits.--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.''.
    (c) Lease Condensate Fuels.--Section 301 of the Energy Policy Act 
of 1992 (42 U.S.C. 13211) is amended--
            (1) in paragraph (2), by inserting ``mixtures containing 50 
        percent or more by volume of lease condensate or fuels 
        extracted from lease condensate;'' after ``liquified petroleum 
        gas;'';
            (2) in paragraph (15), by inserting ``mixtures containing 
        50 percent or more by volume of lease condensate or fuels 
        extracted from lease condensate;'' after ``liquified petroleum 
        gas;''; and
            (3) by adding at the end the following:
            ``(16) the term `lease condensate' means a mixture, 
        primarily of pentanes and heavier hydrocarbons, which is 
        recovered as a liquid from natural gas in lease separation 
        facilities.''.

                  Subtitle B--Automobile Fuel Economy

SEC. 711. AUTOMOBILE FUEL ECONOMY STANDARDS.

    (a) Title 49 Amendment.--Section 32902(f) of title 49, United 
States Code, is amended to read as follows:
    ``(f) Considerations.--When deciding maximum feasible average fuel 
economy under this section, the Secretary of Transportation shall 
consider the following matters:
            ``(1) technological feasibility;
            ``(2) economic practicability;
            ``(3) the effect of other motor vehicle standards of the 
        Government on fuel economy;
            ``(4) the need of the United States to conserve energy;
            ``(5) the effects of fuel economy standards on motor 
        vehicle and passenger safety; and
            ``(6) the effects of compliance with average fuel economy 
        standards on levels of employment in the United States.''.
    (b) Clarification of Authority.--Section 32902(b) of title 49, 
United States Code, is amended by inserting before the period at the 
end the following: ``or such other number as the Secretary prescribes 
under subsection (c)''.
    (c) Environmental Assessment.--When issuing final regulations 
setting forth increased average fuel economy standards under section 
32902(a) or section 32902(c) of title 49, United States Code, the 
Secretary of Transportation shall also issue an environmental 
assessment of the effects of the increased standards on the environment 
under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.).
    (d) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary of 
Transportation $5,000,000 for each of fiscal years 2004 through 2008.

SEC. 712. DUAL-FUELED AUTOMOBILES.

    (a) Manufacturing Incentives.--Section 32905 of title 49, United 
States Code, is amended--
            (1) in subsections (b) and (d), by striking ``1993-2004'' 
        and inserting ``1993-2008'';
            (2) in subsection (f), by striking ``2001'' and inserting 
        ``2005'';
            (3) in subsection (f)(1), by striking ``2004'' and 
        inserting ``2008''; and
            (4) in subsection (g), by striking ``September 30, 2000'' 
        and inserting ``September 30, 2004''.
    (b) Maximum Fuel Economy Increase.--Subsection (a)(1) of section 
32906 of title 49, United States Code, is amended--
            (1) in subparagraph (A), by striking ``the model years 
        1993-2004'' and inserting ``model years 1993-2008''; and
            (2) in subparagraph (B), by striking ``the model years 
        2005-2008'' and inserting ``model years 2009-2012''.

SEC. 713. FEDERAL FLEET FUEL ECONOMY.

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

SEC. 714. RAILROAD EFFICIENCY.

    (a) Establishment.--The Secretary of Energy, in cooperation with 
the Secretary of Transportation and the Administrator of the 
Environmental Protection Agency, shall establish a cost-shared, public-
private research partnership to develop and demonstrate railroad 
locomotive technologies that increase fuel economy, reduce emissions, 
and lower costs of operation. Such partnership shall involve the 
Federal Government, railroad carriers, locomotive manufacturers and 
equipment suppliers, and the Association of American Railroads.
    (b) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary of 
Energy $25,000,000 for fiscal year 2004, $35,000,000 for fiscal year 
2005, and $50,000,000 for fiscal year 2006.

SEC. 715. REDUCTION OF ENGINE IDLING IN HEAVY-DUTY VEHICLES.

    (a) Identification.--Not later than 180 days after the date of 
enactment of this section, the Secretary of Energy, in consultation 
with the Secretary of Transportation and the Administrator of the 
Environmental Protection Agency, shall commence a study to analyze the 
potential fuel savings and emissions reductions resulting from use of 
idling reduction technologies as they are applied to heavy-duty 
vehicles. Upon completion of the study, the Secretary of Energy shall, 
by rule, certify those idling reduction technologies with the greatest 
economic or technical feasibility and the greatest potential for fuel 
savings and emissions reductions, and publish a list of such certified 
technologies in the Federal Register.
    (b) Vehicle Weight Exemption.--Section 127(a) of Title 23, United 
States Code, is amended by adding at the end the following: ``In order 
to promote reduction of fuel use and emissions due to engine idling, 
the maximum gross vehicle weight limit and the axle weight limit for 
any motor vehicle equipped with an idling reduction technology 
certified by the U.S. Department of Energy will be increased by an 
amount necessary to compensate for the additional weight of the idling 
reduction system, provided that the weight increase shall be no greater 
than 400 pounds.''
    (c) Definitions.--For the purposes of this section:
            (1) The term ``idling reduction technology'' means a device 
        or system of devices utilized to reduce long-duration idling of 
        a vehicle.
            (2) The term ``heavy-duty vehicle'' means a vehicle that 
        has a gross vehicle weight rating greater than 8,500 pounds and 
        is powered by a diesel engine.
            (3) The term ``long-duration idling'' means the operation 
        of a main drive engine, for a period greater than 30 
        consecutive minutes, where the main drive engine is not engaged 
        in gear. Such term does not apply to routine stoppages 
        associated with traffic movement or congestion.

                          TITLE VIII--HYDROGEN

                  Subtitle A--Basic Research Programs

SEC. 801. SHORT TITLE.

    This subtitle may be cited as the ``George E. Brown, Jr. and Robert 
S. Walker Hydrogen Future Act of 2003''.

SEC. 802. MATSUNAGA ACT AMENDMENT.

    The Spark M. Matsunaga Hydrogen Research, Development, and 
Demonstration Act of 1990 (42 U.S.C. 12401 et seq.) is amended by 
striking sections 102 through 109 and inserting the following:

``SEC. 102. DEFINITIONS.

    ``In this Act--
            ``(1) the term `advisory committee' means the Hydrogen and 
        Fuel Cell Technical Advisory Committee established under 
        section 107;
            ``(2) the term `Department' means the Department of Energy;
            ``(3) the term `fuel cell' means a device that directly 
        converts the chemical energy of a fuel into electricity by an 
        electrochemical process;
            ``(4) the term `infrastructure' means the equipment, 
        systems, or facilities used to produce, distribute, deliver, or 
        store hydrogen; and
            ``(5) the term `Secretary' means the Secretary of Energy.

``SEC. 103. HYDROGEN RESEARCH AND DEVELOPMENT.

    ``(a) In General.--The Secretary shall conduct a research and 
development program on technologies related to the production, 
distribution, storage, and use of hydrogen energy, fuel cells, and 
related infrastructure.
    ``(b) Goal.--The goal of such program shall be to enable the safe, 
economic, and environmentally sound use of hydrogen energy, fuel cells, 
and related infrastructure for transportation, commercial, industrial, 
residential, and electric power generation applications.
    ``(c) Focus.--In carrying out activities under this section, the 
Secretary shall focus on critical technical issues including, but not 
limited to--
            ``(1) the production of hydrogen from diverse energy 
        sources, with emphasis on cost-effective production from 
        renewable energy sources;
            ``(2) the delivery of hydrogen, including safe delivery in 
        fueling stations and use of existing hydrogen pipelines;
            ``(3) the storage of hydrogen, including storage of 
        hydrogen in surface transportation;
            ``(4) fuel cell technologies for transportation, stationary 
        and portable applications, with emphasis on cost-reduction of 
        fuel cell stacks; and
            ``(5) the use of hydrogen energy and fuel cells, including 
        use in--
                    ``(A) isolated villages, islands, and areas in 
                which other energy sources are not available or are 
                very expensive; and
                    ``(B) foreign markets, particularly where an energy 
                infrastructure is not well developed.
    ``(d) Codes and Standards.--The Secretary shall facilitate the 
development of domestic and international codes and standards and seek 
to resolve other critical regulatory and technical barriers preventing 
the introduction of hydrogen energy and fuel cells into the 
marketplace.
    ``(e) Solicitation.--The Secretary shall carry out the research and 
development activities authorized under this section through 
solicitation of proposals, and evaluation using competitive merit 
review.
    ``(f) Cost Sharing.--The Secretary shall require a commitment from 
non-Federal sources of at least 20 percent of the cost of proposed 
research and development projects. The Secretary may reduce or 
eliminate the cost sharing requirement--
            ``(1) if the Secretary determines that the research and 
        development is of a basic or fundamental nature, or
            ``(2) for technical analyses, outreach activities, and 
        educational programs that the Secretary does not expect to 
        result in a marketable product.

``SEC. 104. DEMONSTRATION PROGRAMS.

    ``(a) Requirement.--In conjunction with activities conducted under 
section 103, the Secretary shall conduct demonstrations of hydrogen 
energy and fuel cell technologies in order to evaluate the commercial 
potential of such technologies.
    ``(b) Solicitation.--The Secretary shall carry out the 
demonstrations authorized under this section through solicitation of 
proposals, and evaluation using competitive merit review.
    ``(c) Cost Sharing.--The Secretary shall require a commitment from 
non-Federal sources of at least 50 percent of the costs directly 
relating to a demonstration project under this section. The Secretary 
may reduce such non-Federal requirement if the Secretary determines 
that the reduction is appropriate considering the technological risks 
involved in the project.

``SEC. 105. TECHNOLOGY TRANSFER.

    ``The Secretary shall conduct programs to--
            ``(1) transfer critical hydrogen energy and fuel cell 
        technologies to the private sector in order to promote wider 
        understanding of such technologies and wider use of research 
        progress under this Act;
            ``(2) accelerate wider application of hydrogen energy and 
        fuel cell technologies in foreign countries in order to 
        increase the global market for the technologies and foster 
        global development without harmful environmental effects;
            ``(3) foster the exchange of generic, nonproprietary 
        information and technology developed pursuant to this Act, 
        among industry, academia, and the Federal agencies; and
            ``(4) inventory and assess the technical and commercial 
        viability of technologies related to production, distribution, 
        storage, and use of hydrogen energy and fuel cells.

``SEC. 106. COORDINATION AND CONSULTATION.

    ``The Secretary shall have overall management responsibility for 
carrying out programs under this Act. In carrying out such programs, 
the Secretary--
            ``(1) shall establish a central point for the coordination 
        of all hydrogen energy and fuel cell research, development, and 
        demonstration activities of the Department;
            ``(2) in carrying out the Secretary's authorities pursuant 
        to this Act, shall consult with other Federal agencies as 
        appropriate, and may obtain the assistance of any Federal 
        agency, on a reimbursable basis or otherwise and with the 
        consent of such agency; and
            ``(3) shall attempt to ensure that activities under this 
        Act do not unnecessarily duplicate any available research and 
        development results or displace or compete with privately 
        funded hydrogen and fuel cell energy activities.

``SEC. 107. ADVISORY COMMITTEE.

    ``(a) Establishment.--There is hereby established the Hydrogen and 
Fuel Cell Technical Advisory Committee, to advise the Secretary on the 
programs under this Act.
    ``(b) Membership.--The advisory committee shall be comprised of not 
fewer than 12 nor more than 25 members appointed by the Secretary based 
on their technical and other qualifications from domestic industry, 
automakers, universities, professional societies, Federal laboratories, 
financial institutions, and environmental and other organizations as 
the Secretary deems appropriate. The advisory committee shall have a 
chairperson, who shall be elected by the members from among their 
number.
    ``(c) Terms.--Members of the advisory committee shall be appointed 
for terms of 3 years, with each term to begin not later than 3 months 
after the date of enactment of the Energy Policy Act of 2003, except 
that one-third of the members first appointed shall serve for 1 year, 
and one-third of the members first appointed shall serve for 2 years, 
as designated by the Secretary at the time of appointment.
    ``(d) Review.--The advisory committee shall review and make any 
necessary recommendations to the Secretary on--
            ``(1) implementation and conduct of programs under this 
        Act;
            ``(2) economic, technological, and environmental 
        consequences of the deployment of technologies related to 
        production, distribution, storage, and use of hydrogen energy, 
        and fuel cells;
            ``(3) means for resolving barriers to implementing hydrogen 
        and fuel cell technologies; and
            ``(4) the coordination plan and any updates thereto 
        prepared by the Secretary pursuant to section 108.
    ``(e) Response.--The Secretary shall consider any recommendations 
made by the advisory committee, and shall provide a response to the 
advisory committee within 30 days after receipt of such 
recommendations. Such response shall either describe the implementation 
of the advisory committee's recommendations or provide an explanation 
of the reasons that any such recommendations will not be implemented.
    ``(f) Support.--The Secretary shall provide such staff, funds and 
other support as may be necessary to enable the advisory committee to 
carry out its functions. In carrying out activities pursuant to this 
section, the advisory committee may also obtain the assistance of any 
Federal agency, on a reimbursable basis or otherwise and with the 
consent of such agency.

``SEC. 108. COORDINATION PLAN.

    ``(a) Plan.--The Secretary, in consultation with other Federal 
agencies, shall prepare and maintain on an ongoing basis a 
comprehensive plan for activities under this Act.
    ``(b) Development.--In developing such plan, the Secretary shall--
            ``(1) consider the guidance of the National Hydrogen Energy 
        Roadmap published by the Department in November 2002 and any 
        updates thereto;
            ``(2) consult with the advisory committee; and
            ``(3) consult with interested parties from domestic 
        industry, automakers, universities, professional societies, 
        Federal laboratories, financial institutions, and environmental 
        and other organizations as the Secretary deems appropriate.
    ``(c) Contents.--At a minimum, the plan shall provide--
            ``(1) an assessment of the effectiveness of the programs 
        authorized under this Act, including a summary of 
        recommendations of the advisory committee for improvements in 
        such programs;
            ``(2) a description of proposed research, development, and 
        demonstration activities planned by the Department for the next 
        five years;
            ``(3) a description of the role Federal laboratories, 
        institutions of higher education, small businesses, and other 
        private sector firms are expected to play in such programs;
            ``(4) cost and performance milestones that will be used to 
        evaluate the programs for the next five years;
            ``(5) any significant technical, regulatory, and other 
        hurdles that stand in the way of achieving such cost and 
        performance milestones, and how the programs will address those 
        hurdles; and
            (6) to the extent practicable, an analysis of Federal, 
        State, local, and private sector hydrogen research, 
        development, and demonstration activities to identify areas for 
        increased intergovernmental and private-public sector 
        collaboration.
    ``(d) Report.--Not later than January 1, 2005, and biennially 
thereafter, the Secretary shall transmit to Congress the comprehensive 
plan developed for the programs authorized under this Act, or any 
updates thereto.

``SEC. 109. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out the purposes 
of this Act--
            ``(1) such sums as may be necessary for fiscal years 1992 
        through 2003;
            ``(2) $105,000,000 for fiscal year 2004;
            ``(3) $150,000,000 for fiscal year 2005;
            ``(4) $175,000,000 for fiscal year 2006;
            ``(5) $200,000,000 for fiscal year 2007; and
            ``(6) $225,000,000 for fiscal year 2008.''.

SEC. 803. HYDROGEN TRANSPORTATION AND FUEL INITIATIVE.

    (a) Vehicle Technologies.--The Secretary shall carry out a 
research, development, demonstration, and commercial application 
program on advanced hydrogen-powered vehicle technologies. Such program 
shall address--
            (1) engine and emission control systems;
            (2) energy storage, electric propulsion, and hybrid 
        systems;
            (3) automotive materials;
            (4) hydrogen-carrier fuels; and
            (5) other advanced vehicle technologies.
    (b) Hydrogen Fuel Initiative.--In coordination with the program 
authorized in subsection (a), the Secretary of Energy, in partnership 
with the private sector, shall conduct a research, development, 
demonstration and commercial application program designed to enable the 
rapid and coordinated introduction of hydrogen-fueled vehicles and 
associated infrastructure into commerce. Such program shall address--
            (1) production of hydrogen from diverse energy resources, 
        including--
                    (A) renewable energy resources;
                    (B) fossil fuels, in conjunction with carbon 
                capture and sequestration;
                    (C) hydrogen-carrier fuels; and
                    (D) nuclear energy;
            (2) delivery of hydrogen or hydrogen-carrier fuels, 
        including--
                    (A) transmission by pipeline and other distribution 
                methods; and
                    (B) safe, convenient, and economic refueling of 
                vehicles, either at central refueling stations or 
                through distributed on-site generation;
            (3) storage of hydrogen or hydrogen-carrier fuels, 
        including development of materials for safe and economic 
        storage in gaseous, liquid or solid forms at refueling 
        facilities or onboard vehicles;
            (4) development of advanced vehicle technologies, such as 
        efficient fuel cells and direct hydrogen combustion engines, 
        and related component technologies such as advanced materials 
        and control systems; and
            (5) development of necessary codes, standards, and safety 
        practices to accompany the production, distribution, storage 
        and use of hydrogen or hydrogen-carrier fuels in 
        transportation.
    (c) Matsunaga Act.--In carrying out programs and projects under 
subsections (a) and (b), the Secretary shall ensure that such programs 
and projects are consistent with, and do not unnecessarily duplicate, 
activities carried out under the programs authorized under the Spark M. 
Matsunaga Hydrogen Research, Development, and Demonstration Act of 1990 
(42 U.S.C. 12401 et seq.).
    (d) Advisory Committee.--The Hydrogen and Fuel Cell Technical 
Advisory Committee authorized under section 107 of the Spark M. 
Matsunaga Hydrogen Research, Development, and Demonstration Act of 1990 
(42 U.S.C. 12408), as amended in this title, shall also advise the 
Secretary on the programs and activities carried out under this 
section.
    (e) Solicitation.--The Secretary shall carry out the programs 
authorized under this section through solicitation of proposals, and 
evaluation using competitive merit review.
    (f) Cost Sharing.--The Secretary shall require a commitment from 
non-Federal sources of at least 50 percent of the costs directly 
relating to a demonstration project under this section. The Secretary 
may reduce such non-Federal requirement if the Secretary determines 
that the reduction is appropriate considering the technological risks 
involved in the project.
    (g) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary--
            (1) for activities pursuant to subsection (a), to remain 
        available until expended--
                    (A) $100,000,000 for each of fiscal years 2004 and 
                2005;
                    (B) $110,000,000 for each of fiscal years 2006 and 
                2007; and
                    (C) $120,000,000 for fiscal year 2008; and
            (2) for activities pursuant to subsection (b), to remain 
        available until expended--
                    (A) $125,000,000 for fiscal year 2004;
                    (B) $150,000,000 for fiscal year 2005;
                    (C) $175,000,000 for fiscal year 2006; and
                    (D) $200,000,000 for each of fiscal years 2007 and 
                2008.

SEC. 804. INTERAGENCY TASK FORCE AND COORDINATION PLAN.

    (a) Establishment.--Not later than 120 days after the date of 
enactment of this Act, the Secretary shall establish an interagency 
task force to coordinate Federal hydrogen and fuel cell energy 
activities.
    (b) Composition.--The task force shall be chaired by a designee of 
the Secretary, and shall include representatives of--
            (1) the Office of Science and Technology Policy;
            (2) the Department of Transportation;
            (3) the Department of Defense;
            (4) the Department of Commerce (including the National 
        Institute for Standards and Technology);
            (5) the Environmental Protection Agency;
            (6) the National Aeronautics and Space Administration;
            (7) the Department of State; and
            (8) other Federal agencies as the Director considers 
        appropriate.
    (c) Coordination Plan.--The task force shall prepare a 
comprehensive coordination plan for Federal hydrogen and fuel cell 
energy activities, which shall include a summary of such activities.
    (d) Report.--Not later than one year after it is established, the 
task force shall report to Congress on the coordination plan in 
subsection (c) and on the interagency coordination of Federal hydrogen 
and fuel cell energy activities.

SEC. 805. REVIEW BY THE NATIONAL ACADEMIES.

    Not later than two years after the date of enactment of this Act, 
and every four years thereafter, the Secretary shall enter into a 
contract with the National Academies. Such contract shall require the 
National Academies to perform a review of the progress made through 
Federal hydrogen and fuel cell energy programs and activities, 
including the need for modified or additional programs, and to report 
to the Congress on the results of such review. There are authorized to 
be appropriated to the Secretary such sums as may be necessary to carry 
out the requirements of this section.

                   Subtitle B--Demonstration Programs

SEC. 811. DEFINITIONS.

    For the purposes of this subtitle and subtitle C--
            (1) the term ``fuel cell'' means a device that directly 
        converts the chemical energy of a fuel into electricity by an 
        electrochemical process;
            (2) the term ``hydrogen-carrier fuel'' means any 
        hydrocarbon fuel that is capable of being thermochemically 
        processed or otherwise reformed to produce hydrogen;
            (3) the term ``infrastructure'' means the equipment, 
        systems, or facilities used to produce, distribute, deliver, or 
        store hydrogen or hydrogen-carrier fuels;
            (4) the term ``institution of higher education'' has the 
        meaning given that term in section 101(a) of the Higher 
        Education Act of 1965 (20 U.S.C. 1001(a)); and
            (5) the term ``Secretary'' means the Secretary of Energy.

SEC. 812. HYDROGEN VEHICLE DEMONSTRATION PROGRAM.

    (a) In General.--The Secretary shall establish a program for 
demonstration and commercial application of hydrogen-powered vehicles 
and associated hydrogen fueling infrastructure in a variety of 
transportation-related applications, including--
            (1) fuel cell vehicles in light-duty vehicle fleets;
            (2) heavy-duty fuel cell on-road and off-road vehicles, 
        including mass transit buses;
            (3) use of hydrogen-powered vehicles and hydrogen fueling 
        infrastructure (including multiple hydrogen refueling stations) 
        along major transportation routes or in entire regions; and
            (4) other similar projects as the Secretary may deem 
        necessary to contribute to the rapid demonstration and 
        deployment of hydrogen-based technologies in widespread use for 
        transportation.
    (b) Eligibility.--Federal, state, tribal, and local governments, 
academic and other non-profit organizations, private entities, and 
consortia of these entities shall be eligible for these projects.
    (c) Selection.--In selecting projects under this section, the 
Secretary shall--
            (1) consult with Federal, State, local and private fleet 
        managers to identify potential projects where hydrogen-powered 
        vehicles may be placed into service;
            (2) identify not less than 10 sites at which to carry out 
        projects under this program, 2 of which must be based at 
        Federal facilities; and
            (3) select projects based on the following factors--
                    (A) geographic diversity;
                    (B) a diverse set of operating environments, duty 
                cycles, and likely weather conditions;
                    (C) the interest and capability of the 
                participating agencies, entities, or fleets;
                    (D) the availability and appropriateness of 
                potential sites for refueling infrastructure and for 
                maintenance of the vehicle fleet;
                    (E) the existence of traffic congestion in the area 
                expected to be served by the hydrogen-powered vehicles;
                    (F) proximity to non-attainment areas as defined in 
                section 171 of the Clean Air Act (42 U.S.C. 7501); and
                    (G) such other criteria as the Secretary determines 
                to be appropriate in order to carry out the purposes of 
                the program.
    (d) Infrastructure.--In funding projects under this section, the 
Secretary shall also support the installation of refueling 
infrastructure at sites necessary for success of the project, giving 
preference to those infrastructure projects that include co-production 
of both--
            (1) hydrogen for use in transportation; and
            (2) electricity that can be consumed on site.
    (e) Operation and Maintenance Period.--Vehicles purchased for 
projects under this section shall be operated and maintained by the 
participating agencies or entities in regular duty cycles for a period 
of not less than 12 months.
    (f) Training and Technical Support.--In funding proposals under 
this section, the Secretary shall also provide funding for training and 
technical support as may be necessary to assure the success of such 
projects, including training and technical support in--
            (1) the installation, operation, and maintenance of fueling 
        infrastructure;
            (2) the operation and maintenance of fuel cell vehicles; 
        and
            (3) data collection necessary to monitor project 
        performance.
    (g) Cost-sharing.--Except as otherwise provided, the Secretary 
shall require a commitment from non-Federal sources of at least 50 
percent of the costs directly relating to a demonstration project under 
this section. The Secretary may reduce such non-Federal requirement if 
the Secretary determines that the reduction is appropriate considering 
the technological risks involved in the project.
    (h) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary 
$50,000,000 for each of fiscal years 2006 through 2010, to remain 
available until expended.

SEC. 813. STATIONARY FUEL CELL DEMONSTRATION PROGRAM.

    (a) In General.--The Secretary shall establish a program for 
demonstration and commercial application of hydrogen fuel cells in 
stationary applications, including--
            (1) fuel cells for use in residential and commercial 
        buildings;
            (2) portable fuel cells, including auxiliary power units in 
        trucks;
            (3) small form and micro fuel cells of 20 watts or less;
            (4) distributed generation systems with fuel cells using 
        renewable energy; and
            (5) other similar projects as the Secretary may deem 
        necessary to contribute to the rapid demonstration and 
        deployment of hydrogen-based technologies in widespread use.
    (b) Competitive Evaluation.--Proposals submitted in response to 
solicitations issued pursuant to this section shall be evaluated on a 
competitive basis using peer review. The Secretary is not required to 
make an award under this section in the absence of a meritorious 
proposal.
    (c) Preference.--The Secretary shall give preference, in making an 
award under this section, to proposals that--
            (1) are submitted jointly from consortia that include two 
        or more participants from institutions of higher education, 
        industry, State, tribal, or local governments, and Federal 
        laboratories; and
            (2) reflect proven experience and capability with 
        technologies relevant to the projects proposed.
    (d) Training and Technical Support.--In funding proposals under 
this section, the Secretary shall also provide funding for training and 
technical support as may be necessary to assure the success of such 
projects, including training and technical support in the installation, 
operation, and maintenance of fuel cells and the collection of data to 
monitor project performance.
    (e) Cost-sharing.--Except as otherwise provided, the Secretary 
shall require a commitment from non-Federal sources of at least 50 
percent of the costs directly relating to a demonstration project under 
this section. The Secretary may reduce such non-Federal requirement if 
the Secretary determines that the reduction is appropriate considering 
the technological risks involved in the project.
    (f) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary 
$50,000,000 for each of fiscal years 2006 through 2010, to remain 
available until expended.

SEC. 814. HYDROGEN DEMONSTRATION PROGRAMS IN NATIONAL PARKS.

    (a) Study.--Not later than 1 year after the date of enactment of 
this section, the Secretary of the Interior and the Secretary of Energy 
shall jointly study and report to Congress on--
            (1) the energy needs and uses at National Parks; and
            (2) the potential for fuel cell and other hydrogen-based 
        technologies to meet such energy needs in--
                    (A) stationary applications, including power 
                generation, combined heat and power for buildings and 
                campsites, and standby and backup power systems; and
                    (B) transportation-related applications, including 
                support vehicles, passenger vehicles and heavy-duty 
                trucks and buses.
    (b) Pilot Projects.--Based on the results of the study conducted 
under subsection (a), the Secretary of the Interior shall fund not 
fewer than 3 pilot projects in national parks to provide for 
demonstration of fuel cells or other hydrogen-based technologies in 
those applications where the greatest potential for such use in 
National Parks has been identified. Such pilot projects shall be 
geographically distributed throughout the United States.
    (c) Definition.--For the purpose of this section, the term 
``National Parks'' means those areas of land and water now or hereafter 
administered by the Secretary of the Interior through the National Park 
Service for park, monument, historic, parkway, recreational, or other 
purposes.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of the Interior $1,000,000 for fiscal 
year 2004, and $15,000,000 for fiscal year 2005, to remain available 
until expended.

SEC. 815. INTERNATIONAL DEMONSTRATION PROGRAM.

    (a) In General.--The Secretary, in consultation with the 
Administrator of the U.S. Agency for International Development, shall 
conduct demonstrations of fuel cells and associated hydrogen fueling 
infrastructure in countries other than the United States, particularly 
in areas where an energy infrastructure is not already well developed.
    (b) Eligible Technologies.--The program may demonstrate--
            (1) fuel cell vehicles in light-duty vehicle fleets;
            (2) heavy-duty fuel cell on-road and off-road vehicles;
            (3) stationary fuel cells in residential and commercial 
        buildings; or
            (4) portable fuel cells, including auxiliary power units in 
        trucks.
    (c) Participants.--
            (1) Eligibility.--Foreign nations, non-profit 
        organizations, and private companies shall be eligible for 
        these pilot projects.
            (2) Cooperation.--Eligible entities may perform the 
        projects in cooperation with United States non-profit 
        organizations and private companies.
            (3) Cost-sharing.--The Secretary may require a commitment 
        from participating private companies and from participating 
        foreign countries.
    (d) Authorization of Appropriations.--For activities conducted 
under this section, there are authorized to be appropriated to the 
Secretary $25,000,000 for each of fiscal years 2006 through 2010, to 
remain available until expended.

SEC. 816. TRIBAL STATIONARY HYBRID POWER DEMONSTRATION.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary, in cooperation with Indian tribes, shall 
develop and transmit to Congress a strategy for a demonstration and 
commercial application program to develop hybrid distributed power 
systems on Indian lands that combine--
            (1) one renewable electric power generating technology of 2 
        megawatts or less located near the site of electric energy use; 
        and
            (2) fuel cell power generation suitable for use in 
        distributed power systems.
    (b) Definition.--For the purposes of this section, the terms 
``Indian tribe'' and ``Indian land'' have the meaning given such terms 
under Title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501 et 
seq.), as amended by this Act.
    (c) Authorization of Appropriations.--For activities under this 
section, there are authorized to be appropriated to the Secretary of 
Energy $1,000,000 for fiscal year 2005, and $5,000,000 for each of 
fiscal years 2006 through 2008.

SEC. 817. DISTRIBUTED GENERATION PILOT PROGRAM.

    (a) Establishment.--The Secretary shall support a demonstration 
program to develop, deploy, and commercialize distributed generation 
systems to significantly reduce the cost of producing hydrogen from 
renewable energy for use in fuel cells. Such program shall provide the 
necessary infrastructure to test these distributed generation 
technologies at pilot scales in a real-world environment.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy, to remain available until 
expended, for the purposes of carrying out this section--
            (1) $10,000,000 for fiscal year 2004;
            (2) $15,000,000 for fiscal year 2005; and
            (3) $20,000,000 for each of fiscal years 2006 through 2008.

                      Subtitle C--Federal Programs

SEC. 821. PUBLIC EDUCATION AND TRAINING.

    (a) Education.--The Secretary shall conduct a public education 
program designed to increase public interest in and acceptance of 
hydrogen energy and fuel cell technologies.
    (b) Training.--The Secretary shall conduct a program to promote 
university-based training in critical skills for research in, 
production of, and use of hydrogen energy and fuel cell technologies. 
Such program may include research fellowships at institutions of higher 
education, centers of excellence in critical technologies, internships 
in industry, and such other measures as the Secretary deems 
appropriate.
    (c) Authorization of Appropriations.--For activities pursuant to 
this section, there are authorized to be appropriated to the Secretary 
$7,000,000 for each of fiscal years 2004 through 2008.

SEC. 822. HYDROGEN TRANSITION STRATEGIC PLANNING.

    (a) In General.--Not later than September 30, 2004, the head of 
each federal agency with annual outlays of greater than $20,000,000 
shall submit to the Director of the Office of Management and Budget and 
to the Congress a hydrogen transition strategic plan containing a 
comprehensive assessment of how the transition to a hydrogen-based 
economy could assist the mission, operation and regulatory program of 
the agency.
    (b) Contents.--At a minimum, each plan shall contain--
            (1) a description of areas within the agency's control 
        where using hydrogen and/or fuel cells could benefit the 
        operation of the agency, assist in the implementation of its 
        regulatory functions or enhance the agency's mission; and
            (2) a description of any agency management practices, 
        procurement policies, regulations, policies, or guidelines that 
        may inhibit the agency's transition to use of fuel cells and 
        hydrogen as an energy source.
    (c) Duration and Revision.--The strategic plan shall cover a period 
of not less than the five years following the fiscal year in which it 
is submitted, and shall be updated and revised at least every three 
years.

SEC. 823. MINIMUM FEDERAL FLEET REQUIREMENT.

    (a) Section 303(b) of the Energy Policy Act of 1992 (42 U.S.C. 
13212(b)) is amended by adding at the end the following:
            ``(4) Hydrogen vehicles.--
                    ``(A) Of the number of vehicles acquired under 
                paragraph (1)(D) by a Federal fleet of 100 or more 
                vehicles, not less than--
                            ``(i) 5 percent in fiscal years 2006 and 
                        2007;
                            ``(ii) 10 percent in fiscal years 2008 and 
                        2009;
                            ``(iii) 15 percent in fiscal years 2010 and 
                        2011; and
                            ``(iv) 20 percent in fiscal years 2012 and 
                        thereafter,
                shall be hydrogen-powered vehicles that meet standards 
                for performance, reliability, cost, and maintenance 
                established by the Secretary.
                    ``(B) The Secretary may establish a lesser 
                percentage, or waive the requirement under subparagraph 
                (A) for any fiscal year entirely, if hydrogen-powered 
                vehicles meeting the standards set by the Secretary 
                pursuant to subparagraph (A) are not available at a 
                purchase price that is less than 150 percent of the 
                purchase price of other comparable alternative fueled 
                vehicles.
                    ``(C) The Secretary may by rule, delay the 
                implementation of the requirements under subparagraph 
                (A) in the event that the Secretary determines that 
                hydrogen-powered vehicles are not commercially or 
                economically available, or that fuel for such vehicles 
                is not commercially or economically available.
                    ``(D) The Secretary, in consultation with the 
                Administrator of General Services, may for reasons of 
                refueling infrastructure use and cost optimization, 
                elect to allocate the acquisitions necessary to achieve 
                the requirements in subparagraph (A) to certain Federal 
                fleets in lieu of requiring each Federal fleet to 
                achieve the requirements in subparagraph (A).''.
    (b) Refueling.--Section 304 of the Energy Policy Act of 1992 (42 
U.S.C. 13213) is amended--
            (1) by redesignating subsection (b) as subsection (c);
            (2) in the second sentence of subsection (a), by striking 
        ``If publicly'' and inserting the following:
    ``(b) Commercial Arrangements.--
            ``(1) In general.--If publicly''; and
            (3) in subsection (b) (as designated by paragraph (2)), by 
        adding at the end the following:
            ``(2) Mandatory arrangements.--
                    ``(A) In general.--In a case in which publicly 
                available fueling facilities are not convenient or 
                accessible to the locations of 2 or more Federal fleets 
                for which hydrogen-powered vehicles are required to be 
                purchased under section 303(b)(4), the Federal agency 
                for which the Federal fleets are maintained (or the 
                Federal agencies for which the Federal fleets are 
                maintained, acting jointly under a memorandum of 
                agreement providing for cost sharing) shall enter into 
                a commercial arrangement as provided in paragraph (1).
                    ``(B) Sunset.--Subparagraph (A) ceases to be 
                effective at the end of fiscal year 2013.''.

SEC. 824. STATIONARY FUEL CELL PURCHASE REQUIREMENT.

    (a) Requirement.--The President, acting through the Secretary of 
Energy, shall seek to ensure that, to the extent economically 
practicable and technically feasible, of the total amount of electric 
energy the Federal Government consumes during any fiscal year, the 
following amounts shall be generated by fuel cells--
                    (1) not less than 1 percent in fiscal years 2006 
                through 2008;
                    (2) not less than 2 percent in fiscal years 2009 
                and 2010; and
                    (3) not less than 3 percent in fiscal year 2011 and 
                each fiscal year thereafter.
    (b) Compliance.--In complying with the requirements of subsection 
(a), Federal agencies are encouraged to--
            (1) use innovative purchasing practices;
            (2) use fuel cells at the site of electricity usage and in 
        combined heat and power applications; and
            (3) use fuel cells in stand alone power functions, such as 
        but not limited to battery power and backup power.
    (c) Definitions.--For purposes of this section--
            (1) the term ``fuel cells'' means an integrated system 
        comprised of a fuel cell stack assembly and balance of plant 
        components that converts a fuel into electricity using an 
        electrochemical means; and
            (2) the term ``electrical energy'' includes on and off grid 
        power, including premium power applications, standby power 
        applications and electricity generation.
    (d) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary of 
Energy $30,000,000 for fiscal year 2004, $70,000,000 for fiscal year 
2005, and $100,000,000 for each of fiscal years 2006 and thereafter.

SEC. 825. DEPARTMENT OF ENERGY STRATEGY.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary shall publish and transmit to Congress a plan identifying 
critical technologies, enabling strategies and applications, technical 
targets, and associated timeframes that support the commercialization 
of hydrogen-fueled fuel cell vehicles.

                   TITLE IX--RESEARCH AND DEVELOPMENT

SEC. 901. SHORT TITLE.

    This Title may be cited as the ``Energy Research, Development, 
Demonstration, and Commercial Application Act of 2003''.

SEC. 902. GOALS.

    (a) In General.--In order to achieve the purposes of this title, 
the Secretary shall conduct a balanced set of programs of energy 
research, development, demonstration, and commercial application, 
focused on--
            (1) increasing the efficiency of all energy intensive 
        sectors through conservation and improved technologies,
            (2) promoting diversity of energy supply,
            (3) decreasing the nation's dependence on foreign energy 
        supplies,
            (4) improving United States energy security, and
            (5) decreasing the environmental impact of energy-related 
        activities.
    (b) Goals.--The Secretary shall publish measurable cost and 
performance-based goals with each annual budget submission in at least 
the following areas:
            (1) energy efficiency for buildings, energy-consuming 
        industries, and vehicles;
            (2) electric energy generation (including distributed 
        generation), transmission, and storage;
            (3) renewable energy technologies including wind power, 
        photovoltaics, solar thermal systems, geothermal energy, 
        hydrogen-fueled systems, biomass-based systems, biofuels, and 
        hydropower;
            (4) fossil energy including power generation, onshore and 
        offshore oil and gas resource recovery, and transportation; and
            (5) nuclear energy including programs for existing and 
        advanced reactors, and education of future specialists.
    (c) Public Comment.--The Secretary shall provide mechanisms for 
input on the annually published goals from industry, university, and 
other public sources.
    (d) Effect of Goals.--Nothing in subsection (a) or the annually 
published goals creates any new authority for any Federal agency, or 
may be used by a Federal agency to support the establishment of 
regulatory standards or regulatory requirements.

SEC. 903. DEFINITIONS.

    For purposes of this title:
            (1) The term ``Department'' means the Department of Energy.
            (2) The term ``departmental mission'' means any of the 
        functions vested in the Secretary of Energy by the Department 
        of Energy Organization Act (42 U.S.C. 7101 et seq.) or other 
        law.
            (3) The term ``institution of higher education'' has the 
        meaning given that term in section 101(a) of the Higher 
        Education Act of 1965 (20 U.S.C. 1001(a)).
            (4) The term ``National Laboratory'' means any of the 
        following laboratories owned by the Department:
                    (A) Ames Laboratory.
                    (B) Argonne National Laboratory.
                    (C) Brookhaven National Laboratory.
                    (D) Fermi National Accelerator Laboratory.
                    (E) Idaho National Engineering and Environmental 
                Laboratory.
                    (F) Lawrence Berkeley National Laboratory.
                    (G) Lawrence Livermore National Laboratory.
                    (H) Los Alamos National Laboratory.
                    (I) National Energy Technology Laboratory.
                    (J) National Renewable Energy Laboratory.
                    (K) Oak Ridge National Laboratory.
                    (L) Pacific Northwest National Laboratory.
                    (M) Princeton Plasma Physics Laboratory.
                    (N) Sandia National Laboratories.
                    (O) Stanford Linear Accelerator Center.
                    (P) Thomas Jefferson National Accelerator Facility.
            (5) The term ``nonmilitary energy laboratory'' means the 
        laboratories listed in (4) with the exclusion of (4)(G), 
        (4)(H), and (4)(N).
            (6) The term ``Secretary'' means the Secretary of Energy.
            (7) The term ``single-purpose research facility'' means any 
        of the primarily single-purpose entities owned by the 
        Department or any other organization of the Department 
        designated by the Secretary.

                     Subtitle A--Energy Efficiency

SEC. 911. ENERGY EFFICIENCY.

    (a) In General.--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:
            (1) for fiscal year 2004, $616,000,000;
            (2) for fiscal year 2005, $695,000,000;
            (3) for fiscal year 2006, $772,000,000;
            (4) for fiscal year 2007, $865,000,000; and
            (5) for fiscal year 2008, $920,000,000.
    (b) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
            (1) For activities under section 912--
                    (A) for fiscal year 2004, $20,000,000; and
                    (B) for fiscal year 2005, $30,000,000.
            (2) For activities under section 914--
                    (A) for fiscal year 2004, $4,000,000; and
                    (B) for each of fiscal years 2005 through 2008, 
                $7,000,000.
            (3) For activities under section 915--
                    (A) for fiscal year 2004, $20,000,000;
                    (B) for fiscal year 2005, $25,000,000;
                    (C) for fiscal year 2006, $30,000,000;
                    (D) for fiscal year 2007, $35,000,000; and
                    (E) for fiscal year 2008, $40,000,000.
    (c) Extended Authorization.--There are authorized to be 
appropriated to the Secretary for activities under section 912, 
$50,000,000 for each of fiscal years 2006 through 2013.
    (d) None of the funds authorized to be appropriated under this 
section may be used for--
            (1) the promulgation and implementation of energy 
        efficiency regulations;
            (2) the Weatherization Assistance Program under part A of 
        title IV of the Energy Conservation and Production Act;
            (3) the State Energy Program under part D of title III of 
        the Energy Policy and Conservation Act; or
            (4) the Federal Energy Management Program under part 3 of 
        title V of the National Energy Conservation Policy Act.

SEC. 912. NEXT GENERATION LIGHTING INITIATIVE.

    (a) In General.--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.
    (b) Objectives.--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; cost-competitive and have less environmental 
impact.
    (c) Industry Alliance.--The Secretary shall, within 3 months from 
the date of enactment of this section, competitively select an Industry 
Alliance to represent participants who 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.
    (d) Research.--
            (1) 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.
            (2) The Secretary shall annually solicit from the Industry 
        Alliance--
                    (A) comments to identify solid-state lighting 
                technology needs;
                    (B) assessment of the progress of the Initiative's 
                research activities; and
                    (C) assistance in annually updating solid-state 
                lighting technology roadmaps.
            (3) The information and roadmaps under (2) shall be 
        available to the public.
    (e) Development, Demonstration, and Commercial Application.--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).
    (f) Cost Sharing.--The Secretary shall require cost sharing 
according to 42 U.S.C. 13542.
    (g) Intellectual Property.--The Secretary may require, in 
accordance with the authorities provided in 35 U.S.C. 202(a)(ii), 42 
U.S.C. 2182 and 42 U.S.C. 5908, that for any new invention from 
subsection (d)--
            (1) that the Industry Alliance members who are active 
        participants in research, development and demonstration 
        activities related to the advanced solid-state lighting 
        technologies that are the subject of this legislation shall be 
        granted first option to negotiate with the invention owner, at 
        least in the field of solid-state lighting, non-exclusive 
        licenses and royalties on terms that are reasonable under the 
        circumstances;
            (2) that the invention owner must offer to negotiate 
        licenses with the Industry Alliance participants cited in (1), 
        in good faith, for at least 1 year after U.S. patents are 
        issued on any such new invention; and
            (3) such other terms as the Secretary determines are 
        required to promote accelerated commercialization of inventions 
        made under the Initiative.
    (h) National Academy Review.--The Secretary shall enter into an 
arrangement with the National Academy of Sciences to conduct periodic 
reviews of the Next Generation Lighting Initiative.
    (i) Definitions.--As used in this section:
            (1) The term ``advanced solid-state lighting'' means a 
        semiconducting device package and delivery system that produces 
        white light using externally applied voltage.
            (2) The term ``research'' includes basic research on the 
        technologies, materials and manufacturing processes required 
        for white light emitting diodes.
            (3) The term ``Industry Alliance'' means an entity selected 
        by the Secretary under subsection (c).
            (4) The term ``white light emitting diode'' means a 
        semiconducting package, utilizing either organic or inorganic 
        materials, that produces white light using externally applied 
        voltage.

SEC. 913. NATIONAL BUILDING PERFORMANCE INITIATIVE.

    (a) Interagency Group.--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 ``Initiative''). 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.
    (b) Integration of Efforts.--The Initiative 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.
    (c) Plan.--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--
            (1) 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
            (2) the collection, analysis, and dissemination of research 
        results and other pertinent information on enhancing building 
        performance to industry, government entities, and the public.
    (d) Department of Energy Role.--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.
    (e) Advisory Committee.--The Director of the Office of Science and 
Technology Policy shall establish an advisory committee to--
            (1) analyze and provide recommendations on potential 
        private sector roles and participation in the Initiative; and
            (2) review and provide recommendations on the plan 
        described in subsection (c).
    (f) Construction.--Nothing in this section provides any Federal 
agency with new authority to regulate building performance.

SEC. 914. SECONDARY ELECTRIC VEHICLE BATTERY USE PROGRAM.

    (a) Definitions.--For purposes of this section:
            (1) The term ``battery'' means an energy storage device 
        that previously has been used to provide motive power in a 
        vehicle powered in whole or in part by electricity.
            (2) The term ``associated equipment'' means equipment 
        located where the batteries will be used that is necessary to 
        enable the use of the energy stored in the batteries.
    (b) Program.--The Secretary shall establish and conduct a research, 
development, demonstration, and commercial application program for the 
secondary use of batteries. Such program shall be--
            (1) designed to demonstrate the use of batteries in 
        secondary applications, including utility and commercial power 
        storage and power quality;
            (2) 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
            (3) coordinated with ongoing secondary battery use programs 
        at the National Laboratories and in industry.
    (c) Solicitation.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall solicit proposals to 
demonstrate the secondary use of batteries and associated equipment and 
supporting infrastructure in geographic locations throughout the United 
States. The Secretary may make additional solicitations for proposals 
if the Secretary determines that such solicitations are necessary to 
carry out this section.
    (d) Selection of Proposals.--
            (1) 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 once the 
        Department is in receipt of appropriated funds.
            (2) In selecting proposals, the Secretary shall consider 
        diversity of battery type, geographic and climatic diversity, 
        and life-cycle environmental effects of the approaches.
            (3) No one project selected under this section shall 
        receive more than 25 percent of the funds authorized for this 
        Program.
            (4) 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.
            (5) The Secretary may consider such other criteria as the 
        Secretary considers appropriate.
    (e) Conditions.--The Secretary shall require that--
            (1) relevant information be provided to the Department, the 
        users of the batteries, the proposers, and the battery 
        manufacturers; and
            (2) the proposer provide at least 50 percent of the costs 
        associated with the proposal.

SEC. 915. ENERGY EFFICIENCY SCIENCE INITIATIVE.

    (a) Establishment.--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 (42 
U.S.C. 7133(a)(9)), in consultation with the Director of the Office of 
Science, for grants to be competitively awarded and subject to peer 
review for research relating to energy efficiency.
    (b) Report.--The Secretary shall submit to the Congress, along with 
the President's annual budget request under section 1105(a) 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.

       Subtitle B--Distributed Energy and Electric Energy Systems

SEC. 921. DISTRIBUTED ENERGY AND ELECTRIC ENERGY SYSTEMS.

    (a) In General.--
            (1) 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:
                    (A) for fiscal year 2004, $190,000,000;
                    (B) for fiscal year 2005, $200,000,000;
                    (C) for fiscal year 2006, $220,000,000;
                    (D) for fiscal year 2007, $240,000,000; and
                    (E) for fiscal year 2008, $260,000,000.
            (2) For the Initiative in subsection 927(e), there are 
        authorized to be appropriated--
                    (A) for fiscal year 2004, $15,000,000;
                    (B) for fiscal year 2005, $20,000,000;
                    (C) for fiscal year 2006, $30,000,000;
                    (D) for fiscal year 2007, $35,000,000; and
                    (E) for fiscal year 2008, $40,000,000.
    (b) Micro-Cogeneration Energy Technology.--From amounts authorized 
under subsection (a), $20,000,000 for each of fiscal years 2004 and 
2005 shall be available for activities under section 924.

SEC. 922. HYBRID DISTRIBUTED POWER SYSTEMS.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary shall develop and transmit to the Congress a strategy for a 
comprehensive research, development, demonstration, and commercial 
application program to develop hybrid distributed power systems that 
combine--
            (1) one or more renewable electric power generation 
        technologies of 10 megawatts or less located near the site of 
        electric energy use; and
            (2) nonintermittent electric power generation technologies 
        suitable for use in a distributed power system.

SEC. 923. HIGH POWER DENSITY INDUSTRY PROGRAM.

    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.

SEC. 924. MICRO-COGENERATION ENERGY TECHNOLOGY.

    The Secretary shall make competitive, merit-based grants to 
consortia for the development of micro-cogeneration energy technology. 
The consortia shall explore the use of small-scale combined heat and 
power in residential heating appliances, the use of excess power to 
operate other appliances within the residence and supply of excess 
generated power to the power grid.

SEC. 925. DISTRIBUTED ENERGY TECHNOLOGY DEMONSTRATION PROGRAM.

    The Secretary, within the sums authorized under section 921(a)(1), 
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.

SEC. 926. OFFICE OF ELECTRIC TRANSMISSION AND DISTRIBUTION.

    (a) Creation of an Office of Electric Transmission and 
Distribution.--Title II of the Department of Energy Organization Act is 
amended by inserting the following after section 217 (42 U.S.C. 7144d):

          ``office of electric transmission and distribution.

    ``Sec. 218. (a) There is established within the Department an 
Office of Electric Transmission and Distribution. This Office shall be 
headed by a Director, who shall be appointed by the Secretary. The 
Director shall be compensated at the annual rate prescribed for level 
IV of the Executive Schedule under section 5315 of title 5, United 
States Code.
    ``(b) The Director shall--
            ``(1) coordinate and develop a comprehensive, multi-year 
        strategy to improve the Nation's electricity transmission and 
        distribution;
            ``(2) ensure that the recommendations of the Secretary's 
        National Transmission Grid Study are implemented;
            ``(3) carry out the research, development, and 
        demonstration functions;
            ``(4) grant authorizations for electricity import and 
        export;
            ``(5) perform other electricity transmission and 
        distribution-related functions assigned by the Secretary; and
            ``(6) develop programs for workforce training in power and 
        transmission engineering.''.
    (b) Conforming Amendments.--
            (1) The table of contents of the Department of Energy Act 
        is amended by inserting after the item relating to section 217 
        the following new item:

``218.  Office of Electric Transmission and Distribution.''.
            (2) Section 5315 of title 5, United States Code, is amended 
        by inserting ``Director, Office of Electric Transmission and 
        Distribution, Department of Energy.'' after ``Inspector 
        General, Department of Energy.''.

SEC. 927. ELECTRIC TRANSMISSION AND DISTRIBUTION PROGRAMS.

    (a) Demonstration Program.--The Secretary, acting through the 
Director of the Office of Electric Transmission and Distribution, shall 
establish a comprehensive research, development, and demonstration 
program to ensure the reliability, efficiency, and environmental 
integrity of electrical transmission and distribution systems. This 
program shall include--
            (1) advanced energy and energy storage technologies, 
        materials, and systems, giving priority to new transmission 
        technologies, including composite conductor materials and other 
        technologies that enhance reliability, operational flexibility, 
        or power-carrying capability;
            (2) advanced grid reliability and efficiency technology 
        development;
            (3) technologies contributing to significant load 
        reductions;
            (4) advanced metering, load management, and control 
        technologies;
            (5) technologies to enhance existing grid components;
            (6) the development and use of high-temperature 
        superconductors to--
                    (A) enhance the reliability, operational 
                flexibility, or power-carrying capability of electric 
                transmission or distribution systems; or
                    (B) increase the efficiency of electric energy 
                generation, transmission, distribution, or storage 
                systems;
            (7) integration of power systems, including systems to 
        deliver high-quality electric power, electric power 
        reliability, and combined heat and power;
            (8) supply of electricity to the power grid by small scale, 
        distributed and residential-based power generators;
            (9) the development and use of advanced grid design, 
        operation and planning tools;
            (10) any other infrastructure technologies, as appropriate; 
        and
            (11) technology transfer and education.
    (b) Program Plan.--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 shall 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.
    (c) Implementation.--The Secretary shall consider implementing this 
program using a consortium of industry, university and national 
laboratory participants.
    (d) Report.--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 of 
infrastructure technologies.
    (e) Power Delivery Research Initiative.--The Secretary shall 
establish a research, development and demonstration initiative 
specifically focused on power delivery utilizing components 
incorporating high temperature superconductivity.
            (1) Goals of this Initiative shall be to--
                    (A) establish world-class facilities to develop 
                high temperature superconductivity power applications 
                in partnership with manufacturers and utilities;
                    (B) provide technical leadership for establishing 
                reliability for high temperature superconductivity 
                power applications including suitable modeling and 
                analysis;
                    (C) facilitate commercial transition toward direct 
                current power transmission, storage, and use for high 
                power systems utilizing high temperature 
                superconductivity; and
                    (D) 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.
            (2) The Initiative shall include--
                    (A) feasibility analysis, planning, research, and 
                design to construct demonstrations of superconducting 
                links in high power, direct current and controllable 
                alternating current transmission systems;
                    (B) 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
                    (C) 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.
    (f) Transmission and Distribution Grid Planning and Operations 
Initiative.--The Secretary shall establish a research, development and 
demonstration initiative specifically focused on tools needed to plan, 
operate and expand the transmission and distribution grids in the 
presence of competitive market mechanisms for energy, load demand, 
customer response and ancillary services. Goals of this Initiative 
shall be to--
            (1) develop and utilize a geographically distributed 
        Center, consisting of research universities and national 
        laboratories, with expertise and facilities to develop the 
        underlying theory and software for power system application, 
        and to assure commercial development in partnership with 
        software vendors and utilities;
            (2) provide technical leadership in engineering and 
        economic analysis for reliability and efficiency of power 
        systems planning and operations in the presence of competitive 
        markets for electricity;
            (3) model, simulate and experiment with new market 
        mechanisms and operating practices to understand and optimize 
        such new methods before actual use; and
            (4) provide technical support and technology transfer to 
        electric utilities and other participants in the domestic 
        electric industry and marketplace.

                      Subtitle C--Renewable Energy

SEC. 931. RENEWABLE ENERGY.

    (a) In General.--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:
            (1) for fiscal year 2004, $480,000,000;
            (2) for fiscal year 2005, $550,000,000;
            (3) for fiscal year 2006, $610,000,000;
            (4) for fiscal year 2007, $659,000,000; and
            (5) for fiscal year 2008, $710,000,000.
    (b) Bioenergy.--From the amounts authorized under subsection (a), 
the following sums are authorized to be appropriated to carry out 
section 932:
            (1) for fiscal year 2004, $135,425,000;
            (2) for fiscal year 2005, $155,600,000;
            (3) for fiscal year 2006, $167,650,000;
            (4) for fiscal year 2007, $180,000,000; and
            (5) for fiscal year 2008, $192,000,000.
    (c) Biodiesel Engine Testing.--From amounts authorized under 
subsection (a), $5,000,000 is authorized to be appropriated in each of 
fiscal years 2004 and 2008 to carry out section 933.
    (d) Concentrating Solar Power.--From amounts authorized under 
subsection (a), the following sums are authorized to be appropriated to 
carry out section 934:
            (1) for fiscal year 2004, $20,000,000;
            (2) for fiscal year 2005, $40,000,000; and
            (3) for each of fiscal years 2006, 2007 and 2008, 
        $50,000,000.
    (e) Limits on Use of Funds.--
            (1) None of the funds authorized to be appropriated under 
        this section may be used for Renewable Support and 
        Implementation.
            (2) 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.
    (f) Consultation.--In carrying out this section, 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.

SEC. 932. BIOENERGY PROGRAMS.

    (a) In General.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application for bioenergy, 
including--
            (1) biopower energy systems;
            (2) biofuels;
            (3) bioproducts;
            (4) integrated biorefineries that may produce biopower, 
        biofuels and bioproducts;
            (5) cross-cutting research and development in feedstocks; 
        and
            (6) economic analysis.
    (b) Biofuels and Bioproducts.--The goals of the biofuels and 
bioproducts programs shall be to develop, in partnership with 
industry--
            (1) advanced biochemical and thermo-chemical conversion 
        technologies capable of making fuels from cellulosic feedstocks 
        that are price-competitive with gasoline or diesel in either 
        internal combustion engines or fuel cell-powered vehicles; and
            (2) advanced biotechnology processes capable of making 
        biofuels and bioproducts with emphasis on development of 
        biorefinery technologies using enzyme-based processing systems.
    (c) Definition.--For purposes of (b), the term ``cellulosic 
feedstock'' means any portion of a crop not normally used in food 
production or any non-food crop grown for the purpose of producing 
biomass feedstock.

SEC. 933. BIODIESEL ENGINE TESTING PROGRAM.

    (a) In General.--Not later that 180 days after 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.
    (b) Scope.--The study shall provide for testing to determine the 
impact of biodiesel on current and future emission control 
technologies, with emphasis on--
            (1) the impact of biodiesel on emissions warranty, in-use 
        liability, and anti-tampering provisions;
            (2) the impact of long-term use of biodiesel on engine 
        operations;
            (3) the options for optimizing these technologies for both 
        emissions and performance when switching between biodiesel and 
        diesel fuel; and
            (4) 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.
    (c) Report.--Not later than 2 years after the date of enactment, 
the Secretary shall provide an interim report to Congress on the 
findings of this study, 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.
    (d) Definition.--For purposes of this section, the term 
``biodiesel'' means a diesel fuel substitute produced from non-
petroleum renewable resources that meets the registration requirements 
for fuels and fuel additives established by the Environmental 
Protection Agency under section 211 of the Clean Air Act (42 U.S.C. 
7545) and that meets the American Society for Testing and Materials 
D6751-02a ``Standard Specification for Biodiesel Fuel (B100) Blend 
Stock for Distillate Fuels''.

SEC. 934. CONCENTRATING SOLAR POWER RESEARCH PROGRAM.

    (a) In General.--The Secretary shall conduct a program of research 
and development to evaluate the potential of concentrating solar power 
for hydrogen production, including co-generation approaches for both 
hydrogen and electricity. Such program shall take advantage of existing 
facilities to the extent possible and shall include--
            (1) development of optimized technologies that are common 
        to both electricity and hydrogen production;
            (2) evaluation of thermo-chemical cycles for hydrogen 
        production at the temperatures attainable with concentrating 
        solar power;
            (3) evaluation of materials issues for the thermo-chemical 
        cycles in (2);
            (4) system architectures and economics studies; and
            (5) coordination with activities in the Advanced Reactor 
        Hydrogen Co-generation Project on high temperature materials, 
        thermo-chemical cycle and economic issues.
    (b) Assessment.--In carrying out the program under this section, 
the Secretary is directed to assess conflicting guidance on the 
economic potential of concentrating solar power for electricity 
production received from the National Research Council report entitled 
``Renewable Power Pathways: A Review of the U.S. Department of Energy's 
Renewable Energy Programs'' in 2000 and subsequent DOE-funded reviews 
of that report and provide an assessment of the potential impact of 
this technology before, or concurrent with, submission of the fiscal 
year 2006 budget.
    (c) Report.--Not later than 5 years after the date of enactment of 
this section, the Secretary shall provide a report to Congress on the 
economic and technical potential for electricity or hydrogen 
production, with or without co-generation, with concentrating solar 
power, including the economic and technical feasibility of potential 
construction of a pilot demonstration facility suitable for commercial 
production of electricity and/or hydrogen from concentrating solar 
power.

SEC. 935. MISCELLANEOUS PROJECTS.

    The Secretary shall conduct research, development, demonstration, 
and commercial application programs for--
            (1) ocean energy, including wave energy;
            (2) 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; 
        and
            (3) renewable energy technologies for cogeneration of 
        hydrogen and electricity.

                       Subtitle D--Nuclear Energy

SEC. 941. NUCLEAR ENERGY.

    (a) Core Programs.--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):
            (1) for fiscal year 2004, $273,000,000;
            (2) for fiscal year 2005, $305,000,000;
            (3) for fiscal year 2006, $330,000,000;
            (4) for fiscal year 2007, $355,000,000; and
            (5) for fiscal year 2008, $495,000,000.
    (b) Nuclear Infrastructure Support.--The following sums are 
authorized to be appropriated to the Secretary for activities under 
section 942(f):
            (1) for fiscal year 2004, $125,000,000;
            (2) for fiscal year 2005, $130,000,000;
            (3) for fiscal year 2006, $135,000,000;
            (4) for fiscal year 2007, $140,000,000; and
            (5) for fiscal year 2008, $145,000,000.
    (c) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
            (1) For activities under section 943--
                    (A) for fiscal year 2004, $140,000,000;
                    (B) for fiscal year 2005, $145,000,000;
                    (C) for fiscal year 2006, $150,000,000;
                    (D) for fiscal year 2007, $155,000,000; and
                    (E) for fiscal year 2008, $275,000,000.
            (2) For activities under section 944--
                    (A) for fiscal year 2004, $33,000,000;
                    (B) for fiscal year 2005, $37,900,000;
                    (C) for fiscal year 2006, $43,600,000;
                    (D) for fiscal year 2007, $50,100,000; and
                    (E) for fiscal year 2008, $56,000,000.
            (3) For activities under section 946, for each of fiscal 
        years 2004 through 2008, $6,000,000.
    (d) None of the funds authorized under this section may be used for 
decommissioning the Fast Flux Test Facility.

SEC. 942. NUCLEAR ENERGY RESEARCH PROGRAMS.

    (a) Nuclear Energy Research Initiative.--The Secretary shall carry 
out a Nuclear Energy Research Initiative for research and development 
related to nuclear energy.
    (b) Nuclear Energy Plant Optimization Program.--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.
    (c) Nuclear Power 2010 Program.--The Secretary shall carry out a 
Nuclear Power 2010 Program, consistent with recommendations in the 
October 2001 report entitled ``A Roadmap to Deploy New Nuclear Power 
Plants in the United States by 2010'' issued by the Nuclear Energy 
Research Advisory Committee of the Department. The Program shall 
include--
            (1) utilization of the expertise and capabilities of 
        industry, universities, and National Laboratories in evaluation 
        of advanced nuclear fuel cycles and fuels testing;
            (2) consideration of a variety of reactor designs suitable 
        for both developed and developing nations;
            (3) participation of international collaborators in 
        research, development, and design efforts as appropriate; and
            (4) encouragement for university and industry 
        participation.
    (d) Generation IV Nuclear Energy Systems Initiative.--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--
            (1) are economically competitive with other electric power 
        generation plants;
            (2) have higher efficiency, lower cost, and improved safety 
        compared to reactors in operation on the date of enactment of 
        this Act;
            (3) use fuels that are proliferation resistant and have 
        substantially reduced production of high-level waste per unit 
        of output; and
            (4) use improved instrumentation.
    (e) Reactor Production of Hydrogen.--The Secretary shall carry out 
research to examine designs for high-temperature reactors capable of 
producing large-scale quantities of hydrogen using thermo-chemical 
processes.
    (f) Nuclear Infrastructure Support.--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 the Congress 
for fiscal year 2006. Such strategy shall provide a cost-effective 
means for--
            (1) maintaining existing facilities and infrastructure, as 
        needed;
            (2) closing unneeded facilities;
            (3) making facility upgrades and modifications; and
            (4) building new facilities.

SEC. 943. ADVANCED FUEL CYCLE INITIATIVE.

    (a) In General.--The Secretary, through the Director of the Office 
of Nuclear Energy, Science and Technology, shall conduct an advanced 
fuel recycling technology research and development program to evaluate 
proliferation-resistant fuel recycling and transmutation technologies 
which 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 this program 
through international cooperation should be sought.
    (b) Reports.--The Secretary shall report on the activities of the 
advanced fuel recycling technology research and development program as 
part of the Department's annual budget submission.

SEC. 944. UNIVERSITY NUCLEAR SCIENCE AND ENGINEERING SUPPORT.

    (a) Establishment.--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.
    (b) Duties.--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 Offices of Nuclear Energy, 
Science and Technology and Civilian Radioactive Waste Management. The 
Secretary shall support communication and outreach related to nuclear 
science, engineering and nuclear waste management.
    (c) Maintaining University Research and Training Reactors and 
Associated Infrastructure.--Activities under this section may include--
            (1) converting research reactors currently using high-
        enrichment fuels to low-enrichment fuels, upgrading operational 
        instrumentation, and sharing of reactors among institutions of 
        higher education;
            (2) providing technical assistance, in collaboration with 
        the United States nuclear industry, in relicensing and 
        upgrading training reactors as part of a student training 
        program; and
            (3) providing funding for reactor improvements as part of a 
        focused effort that emphasizes research, training, and 
        education.
    (d) University-National Laboratory Interactions.--The Secretary 
shall develop sabbatical fellowship and visiting scientist programs to 
encourage sharing of personnel between national laboratories and 
universities.
    (e) Operating and Maintenance Costs.--Funding for a research 
project provided under this section may be used to offset a portion of 
the operating and maintenance costs of a research reactor at an 
institution of higher education used in the research project.

SEC. 945. SECURITY OF NUCLEAR FACILITIES.

    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 
nuclear facilities from natural phenomena and the security of nuclear 
facilities from deliberate attacks.

SEC. 946. ALTERNATIVES TO INDUSTRIAL RADIOACTIVE SOURCES.

    (a) Survey.--Not later than August 1, 2004, the Secretary shall 
provide to the Congress results of a survey of industrial applications 
of large radioactive sources. The survey shall--
            (1) consider well-logging sources as one class of 
        industrial sources;
            (2) include information on current domestic and 
        international Department, Department of Defense, State 
        Department and commercial programs to manage and dispose of 
        radioactive sources; and
            (3) discuss available disposal options for currently 
        deployed or future sources and, if deficiencies are noted for 
        either deployed or future sources, recommend legislative 
        options that Congress may consider to remedy identified 
        deficiencies.
    (b) Plan.--In conjunction with the survey in subsection (a), the 
Secretary shall establish a research and development program to develop 
alternatives to such sources that reduce safety, environmental, or 
proliferation risks to either workers using the sources or the public. 
Miniaturized particle accelerators for well-logging or other industrial 
applications and portable accelerators for production of short-lived 
radioactive materials at an industrial site shall be considered as part 
of the research and development efforts. Details of the program plan 
shall be provided to the Congress by August 1, 2004.

                       Subtitle E--Fossil Energy

SEC. 951. FOSSIL ENERGY.

    (a) In General.--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 subtitle:
            (1) for fiscal year 2004, $523,000,000;
            (2) for fiscal year 2005, $542,000,000;
            (3) for fiscal year 2006, $558,000,000;
            (4) for fiscal year 2007, $585,000,000; and
            (5) for fiscal year 2008, $600,000,000.
    (b) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
            (1) For activities under section 952(b)(2), $28,000,000 for 
        each of the fiscal years 2004 through 2008.
            (2) For activities under section 953--
                    (A) for fiscal year 2004, $12,000,000;
                    (B) for fiscal year 2005, $15,000,000; and
                    (C) for each of fiscal years 2006 through 2008, 
                $20,000,000.
            (3) For activities under section 954, to remain available 
        until expended--
                    (A) for fiscal year 2004, $200,000,000;
                    (B) for fiscal year 2005, $210,000,000; and
                    (C) for fiscal year 2006, $220,500,000.
            (4) For the Office of Arctic Energy under section 3197 of 
        the Floyd D. Spence National Defense Authorization Act for 
        Fiscal Year 2001 (Public Law 106-398), $25,000,000 for each of 
        fiscal years 2004 through 2008.
    (c) Extended Authorization.--There are authorized to be 
appropriated to the Secretary for the Office of Arctic Energy under 
section 3197 of the Floyd D. Spence National Defense Authorization Act 
for Fiscal Year 2001 (Public Law 106-398), $25,000,000 for each of 
fiscal years 2009 through 2012.
    (d) Limits on Use of Funds.--
            (1) None of the funds authorized under this section may be 
        used for Fossil Energy Environmental Restoration or Import/
        Export Authorization.
            (2) 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.

SEC. 952. OIL AND GAS RESEARCH PROGRAMS.

    (a) Oil and Gas Research.--The Secretary shall conduct a program of 
research, development, demonstration, and commercial application on oil 
and gas, including--
            (1) exploration and production;
            (2) gas hydrates;
            (3) reservoir life and extension;
            (4) transportation and distribution infrastructure;
            (5) ultraclean fuels;
            (6) heavy oil and shale; and
            (7) related environmental research.
    (b) Fuel Cells.--
            (1) 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.
            (2) The demonstrations shall include fuel cell proton 
        exchange membrane technology for commercial, residential, and 
        transportation applications, and distributed generation 
        systems, utilizing improved manufacturing production and 
        processes.
    (c) Natural Gas and Oil Deposits Report.--Not later than 2 years 
after the date of the 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 the 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.
    (d) Integrated Clean Power and Energy Research.--
            (1) 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.
            (2) The center or consortium will conduct a program of 
        research, development, demonstration and commercial application 
        on integrating the following six focus areas--
                    (A) efficiency and reliability of gas turbines for 
                power generation;
                    (B) reduction in emissions from power generation;
                    (C) promotion of energy conservation issues;
                    (D) effectively utilizing alternative fuels and 
                renewable energy;
                    (E) development of advanced materials technology 
                for oil and gas exploration and utilization in harsh 
                environments; and
                    (F) education on energy and power generation 
                issues.

SEC. 953. RESEARCH AND DEVELOPMENT FOR COAL MINING TECHNOLOGIES.

    (a) Establishment.--The Secretary shall carry out a program for 
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.
    (b) Program.--The research and development activities carried out 
under this section shall--
            (1) be guided by the mining research and development 
        priorities identified by the Mining Industry of the Future 
        Program and in the recommendations form relevant reports of the 
        National Academy of Sciences on mining technologies;
            (2) 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;
            (3) develop and demonstrate coal bed electromagnetic wave 
        imaging and techniques for horizontal drilling in order to 
        increase methane recovery efficiency, prevent spoilage of 
        domestic coal reserves and minimize water disposal associated 
        with methane extraction; and
            (4) expand mining research capabilities at institutions of 
        higher education.

SEC. 954. COAL AND RELATED TECHNOLOGIES PROGRAM.

    (a) In General.--In addition to the program authorized under Title 
II of this Act, the Secretary of Energy shall conduct a program of 
technology research, development and demonstration and commercial 
application for coal and power systems, including programs to 
facilitate production and generation of coal-based power through--
            (1) innovations for existing plants;
            (2) integrated gasification combined cycle;
            (3) advanced combustion systems;
            (4) turbines for synthesis gas derived from coal;
            (5) carbon capture and sequestration research and 
        development;
            (6) coal-derived transportation fuels and chemicals;
            (7) solid fuels and feedstocks; and
            (8) advanced coal-related research.
    (b) Cost and Performance Goals.--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--
            (1) consider activities and studies undertaken to date by 
        industry in cooperation with the Department of Energy in 
        support of such assessment;
            (2) consult with interested entities, including coal 
        producers, industries using coal, organizations to promote coal 
        and advanced coal technologies, environmental organizations and 
        organizations representing workers;
            (3) not later than 120 days after the date of enactment of 
        this section, publish in the Federal Register proposed draft 
        cost and performance goals for public comments; and
            (4) not later than 180 days after the date of enactment of 
        this section and every four 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 Title II 
        of this Act.

SEC. 955. COMPLEX WELL TECHNOLOGY TESTING FACILITY.

    The Secretary of Energy, 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.

                          Subtitle F--Science

SEC. 961. SCIENCE.

    (a) In General.--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 967(c)(2)(D), 
and including basic energy sciences, advanced scientific and computing 
research, biological and environmental research, fusion energy 
sciences, high energy physics, nuclear physics, and research analysis 
and infrastructure support:
            (1) for fiscal year 2004, $3,785,000,000;
            (2) for fiscal year 2005, $4,153,000,000;
            (3) for fiscal year 2006, $4,586,000,000;
            (4) for fiscal year 2007, $5,000,000,000; and
            (5) For fiscal year 2008, $5,400,000,000.
    (b) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
            (1) For activities of the Fusion Energy Sciences Program, 
        including activities under section 962--
                    (A) for fiscal year 2004, $335,000,000;
                    (B) for fiscal year 2005, $349,000,000;
                    (C) for fiscal year 2006, $362,000,000;
                    (D) for fiscal year 2007, $377,000,000; and
                    (E) for fiscal year 2008, $393,000,000.
            (2) For the Spallation Neutron Source--
                    (A) for construction in fiscal year 2004, 
                $124,600,000;
                    (B) for construction in fiscal year 2005, 
                $79,800,000;
                    (C) for completion of construction in fiscal year 
                2006, $41,100,000; and
                    (D) 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.
            (3) For Catalysis Research activities under section 965--
                    (A) for fiscal year 2004, $33,000,000;
                    (B) for fiscal year 2005, $35,000,000;
                    (C) for fiscal year 2006, $36,500,000;
                    (D) for fiscal year 2007, $38,200,000; and
                    (E) for fiscal year 2008, $40,100,000.
            (4) For Nanoscale Science and Engineering Research 
        activities under section 966--
                    (A) for fiscal year 2004, $270,000,000;
                    (B) for fiscal year 2005, $290,000,000;
                    (C) for fiscal year 2006, $310,000,000;
                    (D) for fiscal year 2007, $330,000,000; and
                    (E) for fiscal year 2008, $375,000,000.
            (5) For activities under subsection 966(c), from the 
        amounts authorized under subparagraph (4)--
                    (A) for fiscal year 2004, $135,000,000;
                    (B) for fiscal year 2005, $150,000,000;
                    (C) for fiscal year 2006, $120,000,000;
                    (D) for fiscal year 2007, $100,000,000; and
                    (E) for fiscal year 2008, $125,000,000.
            (6) For activities in the Genomes to Life Program under 
        section 968--
                    (A) for fiscal year 2004, $100,000,000;
                    (B) for fiscal year 2005, $170,000,000;
                    (C) for fiscal year 2006, $325,000,000;
                    (D) for fiscal year 2007, $415,000,000; and
                    (E) for fiscal year 2008, $455,000,000.
            (7) For construction and ancillary equipment of the Genomes 
        to Life User Facilities under section 968(d), of funds 
        authorized under (6)--
                    (A) for fiscal year 2004, $16,000,000;
                    (B) for fiscal year 2005, $70,000,000;
                    (C) for fiscal year 2006, $175,000,000;
                    (D) for fiscal year 2007, $215,000,000; and
                    (E) for fiscal year 2008, $205,000,000.
            (8) For activities in the Water Supply Technologies Program 
        under section 970, $30,000,000 for each of fiscal years 2004 
        through 2008.
    (c) In addition to the funds authorized under subsection (b)(1), 
the following sums are authorized for construction costs associated 
with the ITER project under section 962--
            (1) for fiscal year 2006, $55,000,000;
            (2) for fiscal year 2007, $95,000,000; and
            (3) for fiscal year 2008, $115,000,000.

SEC. 962. UNITED STATES PARTICIPATION IN ITER.

    (a) Participation.--
            (1) The Secretary of Energy is authorized to undertake full 
        scientific and technological cooperation in the International 
        Thermonuclear Experimental Reactor project (referred to in this 
        title as ``ITER'').
            (2) In the event that ITER fails to go forward within a 
        reasonable period of time, the Secretary shall send to Congress 
        a plan, including costs and schedules, for implementing the 
        domestic burning plasma experiment known as the Fusion Ignition 
        Research Experiment. Such a plan shall be developed with full 
        consultation with the Fusion Energy Sciences Advisory Committee 
        and be reviewed by the National Research Council.
            (3) It is the intent of Congress that such sums shall be 
        largely for work performed in the United States and that such 
        work contributes the maximum amount possible to the U.S. 
        scientific and technological base.
    (b) Planning.--
            (1) Not later than 180 days of 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 goals of this section. 
        The plan shall ensure that--
                    (A) existing fusion research facilities are more 
                fully utilized;
                    (B) fusion science, technology, theory, advanced 
                computation, modeling and simulation are strengthened;
                    (C) 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;
                    (D) communication of scientific results and methods 
                between the fusion energy science community and the 
                broader scientific and technology communities is 
                improved;
                    (E) inertial confinement fusion facilities are 
                utilized to the extent practicable for the purpose of 
                inertial fusion energy research and development; and
                    (F) attractive alternative inertial and magnetic 
                fusion energy approaches are more fully explored.
            (2) Such plan shall also address the status of and, to the 
        degree possible, costs and schedules for--
                    (A) in coordination with the program in section 
                969, the design and implementation of international or 
                national facilities for the testing of fusion 
                materials; and
                    (B) the design and implementation of international 
                or national facilities for the testing and development 
                of key fusion technologies.

SEC. 963. SPALLATION NEUTRON SOURCE.

    (a) Definition.--For the purposes of this section, the term 
``Spallation Neutron Source'' means Department Project 9909E 09334, Oak 
Ridge National Laboratory, Oak Ridge, Tennessee.
    (b) Report.--The Secretary shall report on the Spallation Neutron 
Source as part of the Department's annual budget submission, including 
a description of the achievement of milestones, a comparison of actual 
costs to estimated costs, and any changes in estimated project costs or 
schedule.
    (c) Authorization of Appropriations.--The total amount obligated by 
the Department, including prior year appropriations, for the Spallation 
Neutron Source may not exceed--
            (1) $1,192,700,000 for costs of construction;
            (2) $219,000,000 for other project costs; and
            (3) $1,411,700,000 for total project cost.

SEC. 964. SUPPORT FOR SCIENCE AND ENERGY FACILITIES AND INFRASTRUCTURE.

    (a) Facility and Infrastructure Policy.--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--
            (1) maintaining existing facilities and infrastructure, as 
        needed;
            (2) closing unneeded facilities;
            (3) making facility modifications; and
            (4) building new facilities.
    (b) Report.--
            (1) The Secretary shall prepare and transmit, along with 
        the President's budget request to the Congress for fiscal year 
        2006, a report containing the strategy developed under 
        subsection (a).
            (2) For each national laboratory and single-purpose 
        research facility, for the facilities primarily used for 
        science and energy research, such report shall contain--
                    (A) the current priority list of proposed 
                facilities and infrastructure projects, including cost 
                and schedule requirements;
                    (B) a current ten-year plan that demonstrates the 
                reconfiguration of its facilities and infrastructure to 
                meet its missions and to address its long-term 
                operational costs and return on investment;
                    (C) the total current budget for all facilities and 
                infrastructure funding; and
                    (D) the current status of each facility and 
                infrastructure project compared to the original 
                baseline cost, schedule, and scope.

SEC. 965. CATALYSIS RESEARCH PROGRAM.

    (a) Establishment.--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--
            (1) enable catalyst design using combinations of 
        experimental and mechanistic methodologies coupled with 
        computational modeling of catalytic reactions at the molecular 
        level;
            (2) develop techniques for high throughput synthesis, 
        assay, and characterization at nanometer and sub-nanometer 
        scales in situ under actual operating conditions:
            (3) synthesize catalysts with specific site architectures;
            (4) conduct research on the use of precious metals for 
        catalysis; and
            (5) translate molecular understanding to the design of 
        catalytic compounds.
    (b) Duties of the Office of Science.--In carrying out this program, 
the Director of the Office of Science shall--
            (1) support both individual investigators and 
        multidisciplinary teams of investigators to pioneer new 
        approaches in catalytic design;
            (2) 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;
            (3) support technology transfer activities to benefit 
        industry and other users of catalysis science and engineering; 
        and
            (4) coordinate research and development activities with 
        industry and other federal agencies.
    (c) Triennial Assessment.--The National Academy of Sciences shall 
review the catalysis program every three 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.

SEC. 966. NANOSCALE SCIENCE AND ENGINEERING RESEARCH.

    (a) Establishment.--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 this 
knowledge to the Department's mission areas.
    (b) Duties of the Office of Science.--In carrying out the program 
under this section, the Office of Science shall--
            (1) support both individual investigators and teams of 
        investigators, including multidisciplinary teams;
            (2) carry out activities under subsection (c);
            (3) support technology transfer activities to benefit 
        industry and other users of nanoscience and nanoengineering; 
        and
            (4) coordinate research and development activities with 
        other DOE programs, industry and other Federal agencies.
    (c) Nanoscience and Nanoengineering Research Centers and Major 
Instrumentation.--
            (1) 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.
            (2) 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.
            (3) Facilities under paragraph (1) may include electron 
        microcharacterization facilities, microlithography facilities, 
        scanning probe facilities, and related instrumentation.
            (4) The Secretary shall encourage collaborations among DOE 
        programs, institutions of higher education, laboratories, and 
        industry at facilities under this subsection.

SEC. 967. ADVANCED SCIENTIFIC COMPUTING FOR ENERGY MISSIONS.

    (a) In General.--The Secretary, acting through the Office of 
Science, shall support a program to advance the Nation's computing 
capability across a diverse set of grand challenge, computationally 
based, science problems related to departmental missions.
    (b) Duties of the Office of Science.--In carrying out the program 
under this section, the Office of Science shall--
            (1) advance basic science through computation by developing 
        software to solve grand challenge science problems on new 
        generations of computing platforms in collaboration with other 
        DOE program offices;
            (2) enhance the foundations for scientific computing by 
        developing the basic mathematical and computing systems 
        software needed to take full advantage of the computing 
        capabilities of computers with peak speeds of 100 teraflops or 
        more, some of which may be unique to the scientific problem of 
        interest;
            (3) enhance national collaboratory and networking 
        capabilities by developing software to integrate geographically 
        separated researchers into effective research teams and to 
        facilitate access to and movement and analysis of large 
        (petabyte) data sets;
            (4) maintain a robust scientific computing hardware 
        infrastructure to ensure that the computing resources needed to 
        address departmental missions are available; and
            (5) explore new computing approaches and technologies that 
        promise to advance scientific computing including developments 
        in quantum computing.
    (c) High-Performance Computing Act of 1991 Amendments.--The High-
Performance Computing Act of 1991 is amended--
            (1) in section 4 (15 U.S.C. 5503)--
                    (A) in paragraph (3) by striking ``means'' and 
                inserting ``and `networking and information technology' 
                mean'', and by striking ``(including vector 
                supercomputers and large scale parallel systems)''; and
                    (B) in paragraph (4), by striking ``packet 
                switched''; and
            (2) in section 203 (15 U.S.C. 5523)--
                    (A) in subsection (a), by striking all after ``As 
                part of the'' and inserting: ``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.'';
                    (B) in subsection (b), by striking ``Program'' and 
                inserting ``Networking and Information Technology 
                Research and Development Program''; and
                    (C) by amending subsection (e) to read as follows:
    ``(e) Authorization of Appropriations.--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.''.
    (d) Coordination.--The Secretary shall ensure that the program 
under this section is integrated and consistent with--
            (1) the Accelerated Strategic Computing Initiative of the 
        National Nuclear Security Administration; and
            (2) other national efforts related to advanced scientific 
        computing for science and engineering.

SEC. 968. GENOMES TO LIFE PROGRAM.

    (a) Establishment.--The Secretary shall carry out a program of 
research, development, demonstration, and commercial application, to be 
known as the Genomes to Life Program, in systems biology and proteomics 
consistent with the Department's statutory authorities.
    (b) Planning.--
            (1) The Secretary shall prepare a program plan describing 
        how knowledge and capabilities would be developed by the 
        program and applied to Department missions relating to energy 
        security, environmental cleanup, and national security.
            (2) The program plan will be developed in consultation with 
        other relevant Department technology programs.
            (3) The program plan shall focus science and technology on 
        long-term goals, including--
                    (A) contributing to U.S. independence from foreign 
                energy sources, including production of hydrogen;
                    (B) converting carbon dioxide to organic carbon;
                    (C) advancing environmental cleanup;
                    (D) providing the science and technology for new 
                biotechnology industries; and
                    (E) improving national security and combating 
                bioterrorism.
            (4) The program plan shall establish specific short-term 
        goals and update these goals with the Secretary's annual budget 
        submission.
    (c) Program Execution.--In carrying out the program under this Act, 
the Secretary shall--
            (1) support individual investigators and multidisciplinary 
        teams of investigators;
            (2) subject to subsection (d), develop, plan, construct, 
        acquire, or operate special equipment or facilities for the use 
        of investigators conducting research, development, 
        demonstration, or commercial application in systems biology and 
        proteomics;
            (3) support technology transfer activities to benefit 
        industry and other users of systems biology and proteomics; and
            (4) coordinate activities by the Department with industry 
        and other federal agencies.
    (d) Genomes to Life User Facilities and Ancillary Equipment.--
            (1) Within the funds authorized to be appropriated pursuant 
        to this Act, the amounts specified under section 961(b)(7) 
        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.
            (2) Projects under paragraph (1) may include--
                    (A) the identification and characterization of 
                multiprotein complexes;
                    (B) characterization of gene regulatory networks;
                    (C) characterization of the functional repertoire 
                of complex microbial communities in their natural 
                environments at the molecular level; and
                    (D) development of computational methods and 
                capabilities to advance understanding of complex 
                biological systems and predict their behavior.
            (3) Facilities under paragraph (1) may include facilities, 
        equipment, or instrumentation for--
                    (A) the production and characterization of 
                proteins;
                    (B) whole proteome analysis;
                    (C) characterization and imaging of molecular 
                machines; and
                    (D) analysis and modeling of cellular systems.
            (4) 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.

SEC. 969. FISSION AND FUSION ENERGY MATERIALS RESEARCH PROGRAM.

    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.

SEC. 970. ENERGY-WATER SUPPLY TECHNOLOGIES PROGRAM.

    (a) Establishment.--There is established within the Office of 
Science, Office of Biological and Environmental Research, the ``Energy-
Water Supply Technologies Program,'' to study energy-related issues 
associated with water resources and municipal waterworks and to study 
water supply issues related to energy production.
    (b) Definitions.--
            (1) The term ``Foundation'' means the American Water Works 
        Association Research Foundation.
            (2) The term ``Indian tribe'' has the meaning given the 
        term in section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b).
            (3) The term ``Program'' means the Water Supply 
        Technologies Program established by section 970(a).
    (c) Program Areas.--The program shall conduct research and 
development, including--
            (1) arsenic removal under subsection (d);
            (2) desalination research program under subsection (e);
            (3) the water and energy sustainability program under 
        subsection (f); and
            (4) other energy-intensive water supply and treatment 
        technologies and other technologies selected by the Secretary.
    (d) Arsenic Removal Program.--
            (1) As soon as practicable after the date of enactment of 
        this Act, the Secretary shall enter into a contract with the 
        Foundation to utilize the facilities, institutions and 
        relationships established in the ``Consolidated Appropriations 
        Resolution, 2003'' as described in Senate Report 107-220 that 
        will carry out a research program to develop and demonstrate 
        innovative arsenic removal technologies.
            (2) In carrying out the arsenic removal program, the 
        Foundation shall, to the maximum extent practicable, conduct 
        research on means of--
                    (A) reducing energy costs incurred in using arsenic 
                removal technologies;
                    (B) minimizing materials, operating, and 
                maintenance costs incurred in using arsenic removal 
                technologies; and
                    (C) minimizing any quantities of waste (especially 
                hazardous waste) that result from use of arsenic 
                removal technologies.
            (3) The Foundation shall carry out peer-reviewed research 
        and demonstration projects to develop and demonstrate water 
        purification technologies.
            (4) In carrying out the arsenic removal program--
                    (A) demonstration projects will be implemented with 
                municipal water system partners to demonstrate the 
                applicability of innovative arsenic removal 
                technologies in areas with different water chemistries 
                representative of areas across the United States with 
                arsenic levels near or exceeding EPA guidelines; and
                    (B) not less than 40 percent of the funds of the 
                Department used for demonstration projects under the 
                arsenic removal program shall be expended on projects 
                focused on needs of and in partnership with rural 
                communities or Indian tribes.
            (5) The Foundation shall develop evaluations of cost 
        effectiveness of arsenic removal technologies used in the 
        program and an education, training, and technology transfer 
        component for the program.
            (6) The Secretary shall consult with the Administrator of 
        the Environmental Protection Agency to ensure that activities 
        under the arsenic removal program are coordinated with 
        appropriate programs of the Environmental Protection Agency and 
        other federal agencies, state programs and academia.
            (7) Not later than 1 year after the date of commencement of 
        the arsenic removal program, and annually thereafter, the 
        Secretary shall submit to Congress a report on the results of 
        the arsenic removal program.
    (e) Desalination Program.--
            (1) The Secretary, in cooperation with the Commissioner of 
        Reclamation, shall carry out a desalination research program in 
        accordance with the desalination technology progress plan 
        developed in Title II of the Energy and Water Development 
        Appropriations Act, 2002 (115 Stat. 498), and described in 
        Senate Report 107-39 under the heading ``WATER AND RELATED 
        RESOURCES'' in the ``BUREAU OF RECLAMATION'' section.
            (2) The desalination program shall--
                    (A) draw on the national laboratory partnership 
                established with the Bureau of Reclamation to develop 
                the January 2003 national Desalination and Water 
                Purification Technology Roadmap for next-generation 
                desalination technology;
                    (B) focus on research relating to, and development 
                and demonstration of, technologies that are appropriate 
                for use in desalinating brackish groundwater, 
                wastewater and other saline water supplies; disposal of 
                residual brine or salt; and
                    (C) consider the use of renewable energy sources.
            (3) Under the desalination program, funds made available 
        may be used for construction projects, including completion of 
        the National Desalination Research Center for brackish 
        groundwater and ongoing facility operational costs.
            (4) The Secretary and the Commissioner of Reclamation shall 
        jointly establish a steering committee for the desalination 
        program. The steering committee shall be jointly chaired by 1 
        representative from this Program and 1 representative from the 
        Bureau of Reclamation.
    (f) Water and Energy Sustainability Program.--
            (1) The Secretary shall carry out a research program to 
        develop understanding and technologies to assist in ensuring 
        that sufficient quantities of water are available to meet 
        present and future requirements.
            (2) Under this program and in collaboration with other 
        programs within the Department including those within the 
        Offices of Fossil Energy and Energy Efficiency and Renewable 
        Energy, the Secretary of the Interior, Army Corps of Engineers, 
        Environmental Protection Agency, Department of Commerce, 
        Department of Defense, state agencies, non-governmental 
        agencies and academia, the Secretary shall assess the current 
        state of knowledge and program activities concerning--
                    (A) future water resources needed to support energy 
                production within the United States including but not 
                limited to the water needs for hydropower and thermo-
                electric power generation;
                    (B) future energy resources needed to support 
                development of water purification and treatment 
                including desalination and long-distance water 
                conveyance;
                    (C) reuse and treatment of water produced as a by-
                product of oil and gas extraction;
                    (D) use of impaired and non-traditional water 
                supplies for energy production and other uses; and
                    (E) technologies to reduce water use in energy 
                production.
            (3) In addition to the assessments in (2), the Secretary 
        shall--
                    (A) develop a research plan defining the scientific 
                and technology development needs and activities 
                required to support long-term water needs and planning 
                for energy sustainability, use of impaired water for 
                energy production and other uses, and reduction of 
                water use in energy production;
                    (B) carry out the research plan required under (A) 
                including development of numerical models, decision 
                analysis tools, economic analysis tools, databases, 
                planning methodologies and strategies;
                    (C) implement at least three planning demonstration 
                projects using the models, tools and planning 
                approaches developed under subparagraph (B) and assess 
                the viability of these tools at the scale of river 
                basins with at least one demonstration involving an 
                international border; and
                    (D) transfer these tools to other federal agencies, 
                state agencies, non-profit organizations, industry and 
                academia for use in their energy and water 
                sustainability efforts.
            (4) 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 describes the 
        research elements described under paragraph (2), and makes 
        recommendations for a management structure that optimizes use 
        of Federal resources and programs.
    (g) Cost Sharing.--
            (1) Research projects under this section shall not require 
        cost-sharing.
            (2) Each demonstration project carried out under the 
        Program shall be carried out on a cost-shared basis, as 
        determined by the Secretary.
            (3) With respect to a demonstration project, the Secretary 
        may accept in-kind contributions, and waive the cost-sharing 
        requirement in appropriate circumstances.

                   Subtitle G--Energy and Environment

SEC. 971. UNITED STATES-MEXICO ENERGY TECHNOLOGY COOPERATION.

    (a) Program.--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 which minimizes 
public health risks from industrial activities in the border region.
    (b) Program Management.--The program under subsection (a) shall be 
managed by the Department of Energy Carlsbad Environmental Management 
Field Office.
    (c) Technology Transfer.--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.
    (d) Intellectual Property.--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.
    (e) Authorization of Appropriations.--The following sums are 
authorized to be appropriated to the Secretary to carry out activities 
under this section:
            (1) For each of fiscal years 2004 and 2005, $5,000,000.
            (2) For each of fiscal years 2006, 2007, and 2008, 
        $6,000,000.

SEC. 972. COAL TECHNOLOGY LOAN.

    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.

                         Subtitle H--Management

SEC. 981. AVAILABILITY OF FUNDS.

    Funds authorized to be appropriated to the Department under this 
title shall remain available until expended.

SEC. 982. COST SHARING.

    (a) Research and Development.--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. Cost sharing 
is not required for research and development of a basic or fundamental 
nature.
    (b) Demonstration and Commercial Application.--Except as otherwise 
provided in this subtitle, the Secretary shall require at least 50 
percent of the costs directly and specifically related to any 
demonstration or commercial application project under this subtitle to 
be provided from non-Federal sources. The 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.
    (c) Calculation of Amount.--In calculating the amount of the non-
Federal commitment under subsection (a) or (b), the Secretary may 
include personnel, services, equipment, and other resources.

SEC. 983. MERIT REVIEW OF PROPOSALS.

    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.

SEC. 984. EXTERNAL TECHNICAL REVIEW OF DEPARTMENTAL PROGRAMS.

    (a) National Energy Research and Development Advisory Boards.--
            (1) The Secretary shall establish one or more advisory 
        boards to review Department research, development, 
        demonstration, and commercial application programs in energy 
        efficiency, renewable energy, nuclear energy, and fossil 
        energy.
            (2) 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.
    (b) Utilization of Existing Committees.--The Secretary shall 
continue to use the scientific program advisory committees chartered 
under the Federal Advisory Committee Act by the Office of Science to 
oversee research and development programs under that Office.
    (c) Membership.--Each advisory board under this section shall 
consist of persons with appropriate expertise representing a diverse 
range of interests.
    (d) Meetings and Purposes.--Each advisory board under this section 
shall meet at least semi-annually to review and advise on the progress 
made by the respective research, development, demonstration, and 
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 902, and the progress on meeting 
such goals.
    (e) Periodic Reviews and Assessments.--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 902, 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 the Congress reports containing the 
results of all such reviews and assessments.

SEC. 985. IMPROVED COORDINATION OF TECHNOLOGY TRANSFER ACTIVITIES.

    (a) Technology Transfer Coordinator.--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 coordinate the activities of the 
Technology Transfer Working Group, shall oversee the expenditure of 
funds allocated to the Technology Transfer Working Group, and shall 
coordinate with each technology partnership ombudsman appointed under 
section 11 of the Technology Transfer Commercialization Act of 2000 (42 
U.S.C. 7261c).
    (b) Technology Transfer Working Group.--The Secretary shall 
establish a Technology Transfer Working Group, which shall consist of 
representatives of the National Laboratories and single-purpose 
research facilities, to--
            (1) coordinate technology transfer activities occurring at 
        National Laboratories and single-purpose research facilities;
            (2) exchange information about technology transfer 
        practices, including alternative approaches to resolution of 
        disputes involving intellectual property rights and other 
        technology transfer matters; and
            (3) 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.
    (c) Technology Transfer Responsibility.--Nothing in this section 
shall affect the technology transfer responsibilities of Federal 
employees under the Stevenson-Wydler Technology Innovation Act of 1980.

SEC. 986. TECHNOLOGY INFRASTRUCTURE PROGRAM.

    (a) Establishment.--The Secretary shall establish a Technology 
Infrastructure Program in accordance with this section.
    (b) Purpose.--The purpose of the Technology Infrastructure Program 
shall be to improve the ability of National Laboratories and single-
purpose research facilities to support departmental missions by--
            (1) stimulating the development of technology clusters that 
        can support departmental missions at the National Laboratories 
        or single-purpose research facilities;
            (2) improving the ability of National Laboratories and 
        single-purpose research facilities to leverage and benefit from 
        commercial research, technology, products, processes, and 
        services; and
            (3) encouraging the exchange of scientific and 
        technological expertise between National Laboratories or 
        single-purpose research facilities and 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.
    (c) Projects.--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).
    (d) Program Requirements.--Each project funded under this section 
shall meet the following requirements:
            (1) Each project shall include at least one 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.
            (2) 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 3109205 0918(e) of the Federal 
        Acquisition Regulations issued pursuant to section 25(c)(1) of 
        the Office of Federal Procurement Policy Act (41 U.S.C. 
        421(c)(1)) may be credited towards costs paid by non-Federal 
        sources to a project, if the expenses meet the other 
        requirements of this section.
            (3) All projects under this section shall be competitively 
        selected using procedures determined by the Secretary.
            (4) Any participant that receives funds under this section 
        may use generally accepted accounting principles for 
        maintaining accounts, books, and records relating to the 
        project.
            (5) No Federal funds shall be made available under this 
        section for construction or any project for more than 5 years.
    (e) Selection Criteria.--
            (1) The Secretary shall allocate funds under this section 
        only if the Director of the National Laboratory or single-
        purpose research facility managing the project determines that 
        the project is likely to improve the ability of the National 
        Laboratory or single-purpose research facility to achieve 
        technical success in meeting departmental missions.
            (2) The Secretary shall consider the following criteria in 
        selecting a project to receive Federal funds--
                    (A) 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;
                    (B) 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;
                    (C) 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;
                    (D) 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; and
                    (E) such other criteria as the Secretary determines 
                to be appropriate.
    (f) Allocation.--In allocating funds for projects approved under 
this section, the Secretary shall provide--
            (1) the Federal share of the project costs; and
            (2) 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.
    (g) Report to Congress.--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.
    (h) Definitions.--In this section:
            (1) The term ``technology cluster'' 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.
            (2) The term ``technology-related business concern'' 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.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for activities under this section 
$10,000,000 for each of fiscal years 2004, 2005, and 2006.

SEC. 987. SMALL BUSINESS ADVOCACY AND ASSISTANCE.

    (a) Small Business Advocate.--The Secretary shall require the 
Director of each National Laboratory, and may require the Director of a 
single-purpose research facility, to designate a small business 
advocate to--
            (1) increase the participation of small business concerns, 
        including socially and economically disadvantaged small 
        business concerns, in procurement, collaborative research, 
        technology licensing, and technology transfer activities 
        conducted by the National Laboratory or single-purpose research 
        facility;
            (2) report to the Director of the National Laboratory or 
        single-purpose research facility on the actual participation of 
        small business concerns in procurement and collaborative 
        research along with recommendations, if appropriate, on how to 
        improve participation;
            (3) make available to small businesses training, mentoring, 
        and information on how to participate in procurement and 
        collaborative research activities;
            (4) increase the awareness inside the National Laboratory 
        or single-purpose research facility of the capabilities and 
        opportunities presented by small business concerns; and
            (5) establish guidelines for the program under subsection 
        (b) and report on the effectiveness of such program to the 
        Director of the National Laboratory or single-purpose research 
        facility.
    (b) Establishment of Small Business Assistance Program.--The 
Secretary shall require the Director of each National Laboratory, and 
may require the Director of a single-purpose research facility, to 
establish a program to provide small business concerns--
            (1) assistance directed at making them more effective and 
        efficient subcontractors or suppliers to the National 
        Laboratory or single-purpose research facility; or
            (2) general technical assistance, the cost of which shall 
        not exceed $10,000 per instance of assistance, to improve the 
        small business concern's products or services.
    (c) Use of Funds.--None of the funds expended under subsection (b) 
may be used for direct grants to the small business concerns.
    (d) Definitions.--In this section:
            (1) The term ``small business concern'' has the meaning 
        given such term in section 3 of the Small Business Act (15 
        U.S.C. 632).
            (2) The term ``socially and economically disadvantaged 
        small business concerns'' has the meaning given such term in 
        section 8(a)(4) of the Small Business Act (15 U.S.C. 
        637(a)(4)).
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary for activities under this section 
$5,000,000 for each of fiscal years 2004 through 2008.

SEC. 988. MOBILITY OF SCIENTIFIC AND TECHNICAL PERSONNEL.

    Not later than 2 years after the date of enactment of this section, 
the Secretary shall transmit a report to the 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 inter-laboratory exchange of scientific and technical 
personnel.

SEC. 989. NATIONAL ACADEMY OF SCIENCES REPORT.

    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--
            (1) conduct a study on--
                    (A) the obstacles to accelerating the research, 
                development, demonstration, and commercial application 
                cycle for energy technology; and
                    (B) 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
            (2) report to the Congress on recommendations developed as 
        a result of the study.

SEC. 990. OUTREACH.

    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, 
facility planners and managers, State and local governments, and other 
entities.

SEC. 991. COMPETITIVE AWARD OF MANAGEMENT CONTRACTS.

    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 the 
Congress a report notifying the 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.

SEC. 992. REPROGRAMMING.

    (a) Distribution Report.--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 the Congress a report explaining how such amounts will be 
distributed among the authorizations contained in this title.
    (b) Prohibition.--
            (1) 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 the Congress a report described in subsection (c) 
        and a period of 30 days has elapsed after such committees 
        receive the report.
            (2) 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.
    (c) Reprogramming Report.--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.

SEC. 993. CONSTRUCTION WITH OTHER LAWS.

    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 Atomic Energy Act 
of 1954 (42 U.S.C. et seq.), the Federal Nonnuclear Research and 
Development Act of 1974 (42 U.S.C. 5901 et seq.), the Energy Policy Act 
of 1992 (42 U.S.C. 13201 et seq.), the Stevenson-Wydler Technology 
Innovation Act of 1980 (15 U.S.C. 3701 et seq.), chapter 18 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.

SEC. 994. IMPROVED COORDINATION AND MANAGEMENT OF CIVILIAN SCIENCE AND 
              TECHNOLOGY PROGRAMS.

    (a) Effective Top-Level Coordination of Research and Development 
Programs.--Section 202(b) of the Department of Energy Organization Act 
(42 U.S.C. 7132(b)) is amended to read as follows:
    ``(b)(1) There shall be in the Department an Under Secretary for 
Energy and Science, who shall be appointed by the President, by and 
with the advice and consent of the Senate. The Under Secretary shall be 
compensated at the rate provided for at level III of the Executive 
Schedule under section 5314 of title 5, United States Code.
    ``(2) The Under Secretary for Energy and Science shall be appointed 
from among persons who--
            ``(A) have extensive background in scientific or 
        engineering fields; and
            ``(B) are well qualified to manage the civilian research 
        and development programs of the Department of Energy.
    ``(3) The Under Secretary for Energy and Science shall--
            ``(A) serve as the Science and Technology Advisor to the 
        Secretary;
            ``(B) monitor the Department's research and development 
        programs in order to advise the Secretary with respect to any 
        undesirable duplication or gaps in such programs;
            ``(C) advise the Secretary with respect to the well-being 
        and management of the multipurpose laboratories under the 
        jurisdiction of the Department;
            ``(D) advise the Secretary with respect to education and 
        training activities required for effective short- and long-term 
        basic and applied research activities of the Department;
            ``(E) advise the Secretary with respect to grants and other 
        forms of financial assistance required for effective short- and 
        long-term basic and applied research activities of the 
        Department; and
            ``(F) exercise authority and responsibility over Assistant 
        Secretaries carrying out energy research and development and 
        energy technology functions under sections 203 and 209, as well 
        as other elements of the Department assigned by the 
        Secretary.''.
    (b) Reconfiguration of Position of Director of the Office of 
Science.--
            (1) Section 209 of the Department of Energy Organization 
        Act (41 U.S.C. 7139) is amended to read as follows:

                          ``office of science

    ``Sec. 209. (a) There shall be within the Department an Office of 
Science, to be headed by an Assistant Secretary for Science, who shall 
be appointed by the President, by and with the advice and consent of 
the Senate, and who shall be compensated at the rate provided for level 
IV of the Executive Schedule under section 5315 of title 5, United 
States Code.
    ``(b) The Assistant Secretary for Science shall be in addition to 
the Assistant Secretaries provided for under section 203 of this Act.
    ``(c) It shall be the duty and responsibility of the Assistant 
Secretary for Science to carry out the fundamental science and 
engineering research functions of the Department, including the 
responsibility for policy and management of such research, as well as 
other functions vested in the Secretary which he may assign to the 
Assistant Secretary.''.
            (2) Notwithstanding section 3345(b)(1) of title 5, United 
        States Code, the President may designate the Director of the 
        Office of Science immediately prior to the effective date of 
        this Act to act in the office of the Assistant Secretary of 
        Energy for Science until the office is filled as provided in 
        section 209 of the Department of Energy Organization Act, as 
        amended by paragraph (1). While so acting, such person shall 
        receive compensation at the rate provided by this Act for the 
        office of Assistant Secretary for Science.
    (c) Additional Assistant Secretary Position To Enable Improved 
Management of Nuclear Energy Issues.--
            (1) Section 203(a) of the Department of Energy Organization 
        Act (42 U.S.C. 7133(a)) is amended by striking ``There shall be 
        in the Department six Assistant Secretaries'' and inserting 
        ``Except as provided in section 209, there shall be in the 
        Department seven Assistant Secretaries''.
            (2) It is the sense of the Congress that the leadership for 
        departmental missions in nuclear energy should be at the 
        Assistant Secretary level.
    (d) Technical and Conforming Amendments.--
            (1) Section 202 of the Department of Energy Organization 
        Act (42 U.S.C. 7132) is further amended by adding the following 
        at the end:
    ``(d) There shall be in the Department an Under Secretary, who 
shall be appointed by the President, by and with the advice and consent 
of the Senate, and who shall perform such functions and duties as the 
Secretary shall prescribe, consistent with this section. The Under 
Secretary shall be compensated at the rate provided for level III of 
the Executive Schedule under section 5314 of title 5, United States 
Code.
    ``(e) There shall be in the Department a General Counsel, who shall 
be appointed by the President, by and with the advice and consent of 
the Senate, and who shall perform such functions and duties as the 
Secretary shall prescribe. The General Counsel shall be compensated at 
the rate provided for level IV of the Executive Schedule under section 
5315 of title 5, United States Code.''.
            (2) Section 5314 of title 5, United States Code, is amended 
        by striking ``Under Secretaries of Energy (2)'' and inserting 
        ``Under Secretaries of Energy (3)''.
            (3) Section 5315 of title 5, United States Code, is amended 
        by--
                    (A) striking ``Director, Office of Science, 
                Department of Energy.''; and
                    (B) striking ``Assistant Secretaries of Energy 
                (6)'' and inserting ``Assistant Secretaries of Energy 
                (8)''.
            (4) The table of contents for the Department of Energy 
        Organization Act (42 U.S.C. 7101 note) is amended--
                    (A) by striking ``Section 209'' and inserting 
                ``Sec. 209'';
                    (B) by striking ``213.'' and inserting ``Sec. 
                213.'';
                    (C) by striking ``214.'' and inserting ``Sec. 
                214.'';
                    (D) by striking ``215.'' and inserting ``Sec. 
                215.''; and
                    (E) by striking ``216.'' and inserting ``Sec. 
                216.''.

SEC. 995. EDUCATIONAL PROGRAMS IN SCIENCE AND MATHEMATICS.

    (a) Section 3165a of the Department of Energy Science Education 
Enhancement Act (42 U.S.C. 7381a) is amended by adding at the end:
            ``(14) Support competitive events for students, under 
        supervision of teachers, designed to encourage student interest 
        and knowledge in science and mathematics.''.
    (b) Section 3169 of the Department of Energy Science Education 
Enhancement Act (42 U.S.C. 7381e), as redesignated by this Act, is 
amended by inserting before the period: ``; and $40,000,000 for each of 
fiscal years 2004 through 2008.''.

SEC. 996. OTHER TRANSACTIONS AUTHORITY.

    Section 646 of the Department of Energy Organization Act (42 U.S.C. 
7256) is amended by adding at the end the following:
    ``(g)(1) 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 
(42 U.S.C. 5908).
    ``(2)(A) The Secretary shall ensure that--
            ``(i) 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;
            ``(ii) 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
            ``(iii) to the extent the Secretary determines practicable, 
        competitive, merit-based selection procedures shall be used 
        when entering into transactions under paragraph (1).
    ``(B) A transaction authorized by paragraph (1) may be used for a 
research, development, or demonstration project only if the Secretary 
determines the use of a standard contract, grant, or cooperative 
agreement for the project is not feasible or appropriate.
    ``(3)(A) The Secretary shall protect from disclosure, including 
disclosure under section 552 of title 5, United States Code, for up to 
5 years after the date the information is received by the Secretary--
            ``(i) 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 to the party submitting the information entering into a 
        transaction under paragraph (1); and
            ``(ii) a business plan and technical information relating 
        to a transaction authorized by paragraph (1) submitted to the 
        Department as confidential business information.
    ``(B) 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 section 
552(b)(4) of title 5, United States Code, if obtained from a person 
other than a Federal agency.
    ``(4) Not later than 90 days after the date of enactment of this 
section, the Secretary shall prescribe guidelines for using other 
transactions authorized by the amendment under subsection (a). Such 
guidelines shall be published in the Federal Register for public 
comment under rulemaking procedures of the Department.
    ``(5) 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.''.

SEC. 997. REPORT ON RESEARCH AND DEVELOPMENT PROGRAM EVALUATION 
              METHODOLOGIES.

    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.

                    TITLE X--PERSONNEL AND TRAINING

SEC. 1001. WORKFORCE TRENDS AND TRAINEESHIP GRANTS.

    (a) Workforce Trends.--
            (1) The Secretary of Energy (in this title referred to as 
        the ``Secretary''), in consultation with the Secretary of Labor 
        and utilizing statistical data collected by the Secretary of 
        Labor, shall monitor trends in the workforce of skilled 
        technical personnel supporting energy technology industries, 
        including renewable energy industries, companies developing and 
        commercializing devices to increase energy efficiency, the oil 
        and gas industry, the nuclear power industry, the coal 
        industry, and other industrial sectors as the Secretary may 
        deem appropriate.
            (2) The Secretary shall report to the Congress whenever the 
        Secretary determines that significant national shortfalls of 
        skilled technical personnel in one or more energy industry 
        segments are forecast or have occurred.
    (b) Traineeship Grants for Skilled Technical Personnel.--The 
Secretary, in consultation with the Secretary of Labor, may establish 
grant programs in the appropriate offices of the Department of Energy 
to enhance training of skilled technical personnel for which a 
shortfall is determined under subsection (a).
    (c) Definition.--For purposes of this section, the term ``skilled 
technical personnel'' means journey and apprentice level workers who 
are enrolled in or have completed a State or federally recognized 
apprenticeship program and other skilled workers in energy technology 
industries.
    (d) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary 
$20,000,000 for each of fiscal years 2004 through 2008, to remain 
available until expended.

SEC. 1002. RESEARCH FELLOWSHIPS IN ENERGY RESEARCH.

    (a) Postdoctoral Fellowships.--The Secretary shall establish a 
program of fellowships to encourage outstanding young scientists and 
engineers to pursue postdoctoral research appointments in energy 
research and development at institutions of higher education of their 
choice.
    (b) Distinguished Senior Research Fellowships.--The Secretary shall 
establish a program of fellowships to allow outstanding senior 
researchers in energy research and development and their research 
groups to explore research and development topics of their choosing for 
a fixed period of time. Awards under this program shall be made on the 
basis of past scientific or technical accomplishment and promise for 
continued accomplishment during the period of support, which shall not 
be less than 3 years.
    (c) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary 
$40,000,000 for each of fiscal years 2004 through 2008, to remain 
available until expended.

SEC. 1003. TRAINING GUIDELINES FOR ELECTRIC ENERGY INDUSTRY PERSONNEL.

    The Secretary of Labor, in consultation with the Secretary of 
Energy 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--
            (1) 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
            (2) 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.

SEC. 1004. NATIONAL CENTER ON ENERGY MANAGEMENT AND BUILDING 
              TECHNOLOGIES.

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

SEC. 1005. IMPROVED ACCESS TO ENERGY-RELATED SCIENTIFIC AND TECHNICAL 
              CAREERS.

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

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

    ``(a) Definitions.--In this section:
            ``(1) Hispanic-serving institution.--The term `Hispanic-
        serving institution' has the meaning given that term in section 
        502(a) of the Higher Education Act of 1965 (20 U.S.C. 
        1101a(a)).
            ``(2) Historically black college or university.--The term 
        `historically Black college or university' has the meaning 
        given the term `part B institution' in section 322 of the 
        Higher Education Act of 1965 (20 U.S.C. 1061).
            ``(3) National laboratory.--The term `National Laboratory' 
        has the meaning given that term in section 903(5) of the Energy 
        Policy Act of 2003.
            ``(4) Science facility.--The term `science facility' has 
        the meaning given the term `single-purpose research facility' 
        in section 903(8) of the Energy Policy Act of 2003.
            ``(5) Tribal college.--The term `tribal college' has the 
        meaning given the term `tribally controlled college or 
        university' in section 2(a) of the Tribally Controlled College 
        or University Assistance Act of 1978 (25 U.S.C. 1801(a)).
    ``(b) Education Partnership.--The Secretary shall direct the 
Director of each National Laboratory, and may direct the head of any 
science facility, to increase the participation of historically Black 
colleges or universities, Hispanic-serving institutions, or tribal 
colleges in activities that increase the capacity of the historically 
Black colleges or universities, Hispanic-serving institutions, or 
tribal colleges to train personnel in science or engineering.
    ``(c) Activities.--An activity under subsection (b) may include--
            ``(1) collaborative research;
            ``(2) equipment transfer;
            ``(3) training activities conducted at a National 
        Laboratory or science facility; and
            ``(4) mentoring activities conducted at a National 
        Laboratory or science facility.
    ``(d) Report.--Not later than 2 years after the date of enactment 
of this section, the Secretary shall submit to the Congress a report on 
the activities carried out under this section.''.

SEC. 1006. NATIONAL POWER PLANT OPERATIONS TECHNOLOGY AND EDUCATION 
              CENTER.

    (a) Establishment.--The Secretary shall support the establishment 
of a National Power Plant Operations Technology and Education Center 
(in this section referred to as the ``Center''), to address the need 
for training and educating certified operators for electric power 
generation plants.
    (b) Role.--The Center shall provide both training and continuing 
education relating to 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.
    (c) Criteria for Competitive Selection.--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 on-site as well as Internet-based training.

SEC. 1007. FEDERAL MINE INSPECTORS.

    In light of projected retirements of Federal mine inspectors and 
the need for additional personnel, the Secretary of Labor shall hire, 
train, and deploy such additional skilled Federal mine inspectors as 
necessary to ensure the availability of skilled and experienced 
individuals and to maintain the number of Federal mine inspectors at or 
above the levels authorized by law or established by regulation.

                         TITLE XI--ELECTRICITY

SEC. 1101. DEFINITIONS.

    (a) Electric Utility.--Section 3(22) of the Federal Power Act (16 
U.S.C. 796(22)) is amended to read as follows:
            ``(22) `electric utility' means any person or Federal or 
        State agency (including any municipality) that sells electric 
        energy; such term includes the Tennessee Valley Authority and 
        each Federal power marketing agency;''.
    (b) Transmitting Utility.--Section 3(23) of the Federal Power Act 
(16 U.S.C. 796(23)) is amended to read as follows:
            ``(23) `transmitting utility' means an entity, including 
        any entity described in section 201(f), that owns or operates 
        facilities used for the transmission of electric energy--
                    ``(A) in interstate commerce; or
                    ``(B) for the sale of electric energy at 
                wholesale;''.
    (c) Additional Definitions.--At the end of section (3) of the 
Federal Power Act, add the following:
            ``(26) `unregulated transmitting utility' means an entity 
        that--
                    ``(A) owns or operates facilities used for the 
                transmission of electric energy in interstate commerce, 
                and
                    ``(B) is an entity described in section 201(f) or a 
                rural electric cooperative with financing from the 
                Rural Utilities Service.
            ``(27) `distribution utility' means an electric utility 
        that does not own or operate transmission facilities or an 
        unregulated transmitting utility that provides 90 percent of 
        the electric energy its transmits to customers at retail.''.
    (d) For the purposes of this title, the term ``the Commission'' 
means the Federal Energy Regulatory Commission.

                        Subtitle A--Reliability

SEC. 1111. ELECTRIC RELIABILITY STANDARDS.

    Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended 
by adding the following:

                         ``electric reliability

    ``Sec. 215. (a) For the purposes of this section:
            ``(1) The term `bulk-power system' means--
                    ``(A) facilities and control systems necessary for 
                operating an interconnected electric energy 
                transmission network (or any portion thereof); and
                    ``(B) electric energy from generation facilities 
                needed to maintain transmission system reliability.
        The term does not include facilities used in the local 
        distribution of electric energy.
            ``(2) The terms `Electric Reliability Organization' and 
        `ERO' 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.
            ``(3) The term `reliability standard' 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 
        components and the design of planned additions or modifications 
        to such components 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 components or to 
        construct new transmission capacity or generation capacity.
            ``(4) The term `reliable operation' means operating the 
        components 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 components.
            ``(5) The term `Interconnection' means a geographic area in 
        which the operation of bulk-power system components is 
        synchronized such that the failure of one or more of such 
        components may adversely affect the ability of the operators of 
        other components within the system to maintain reliable 
        operation of the portion of the system within their control.
            ``(6) The term `transmission organization' means an RTO or 
        other transmission organization finally approved by the 
        Commission for the operation of transmission facilities.
            ``(7) The term `regional entity' means an entity having 
        enforcement authority pursuant to subsection (e)(4).
    ``(b) 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 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. 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.
    ``(c) Following the issuance of a Commission rule under subsection 
(b), any person may submit an application to the Commission for 
certification as the Electric Reliability Organization. The Commission 
may certify one such ERO if the Commission determines that such ERO--
            ``(1) has the ability to develop and enforce, subject to 
        subsection (d)(2), reliability standards that provide for an 
        adequate level of reliability of the bulk-power system; and
            ``(2) has established rules that--
                    ``(A) 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;
                    ``(B) allocate equitably reasonable dues, fees, and 
                other charges among end users for all activities under 
                this section;
                    ``(C) 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);
                    ``(D) 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
                    ``(E) provide for taking, after certification, 
                appropriate steps to gain recognition in Canada and 
                Mexico.
    ``(d)(1) The ERO shall file each reliability standard or 
modification to a reliability standard that it proposes to be made 
effective under this section with the Commission.
    ``(2) 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 ERO 
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.
    ``(3) The ERO 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.
    ``(4) The Commission shall remand to the ERO for further 
consideration a proposed reliability standard or a modification to a 
reliability standard that the Commission disapproves in whole or in 
part.
    ``(5) The Commission, upon its own motion or upon complaint, may 
order the ERO 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.
    ``(6) The final rule adopted under subsection (b) 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--
            ``(A) the Commission finds a conflict exists between a 
        reliability standard and any such provision;
            ``(B) the Commission orders a change to such provision 
        pursuant to section 206 of this part; and
            ``(C) the ordered change becomes effective under this part.
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.
    ``(e)(1) 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--
            ``(A) finds that the user or owner or operator has violated 
        a reliability standard approved by the Commission under 
        subsection (d); and
            ``(B) files notice and the record of the proceeding with 
        the Commission.
    ``(2) 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.
    ``(3) 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.
    ``(4) The Commission shall establish 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--
            ``(A) the regional entity is governed by an independent 
        board, a balanced stakeholder board, or a combination 
        independent and balanced stakeholder board;
            ``(B) the regional entity otherwise satisfies the 
        provisions of subsection (c)(1) and (2); and
            ``(C) the agreement promotes effective and efficient 
        administration of bulk-power system reliability.
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.
    ``(5) 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.
    ``(6) 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.
    ``(f) The ERO 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).
    ``(g) The ERO shall conduct periodic assessments of the reliability 
and adequacy of the bulk-power system in North America.
    ``(h) 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.
    ``(i)(1) The ERO shall have authority to develop and enforce 
compliance with reliability standards for only the bulk-power system.
    ``(2) 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.
    ``(3) Nothing in this section shall be construed to preempt any 
authority of any State to take action to ensure the safety, adequacy, 
and reliability of electric service within that State, as long as such 
action is not inconsistent with any reliability standard.
    ``(4) Within 90 days of the application of the ERO 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.
    ``(5) The Commission, after consultation with the ERO, may stay the 
effectiveness of any State action, pending the Commission's issuance of 
a final order.
    ``(j) The Commission shall establish a regional advisory body on 
the petition of at least two-thirds of the States within a region that 
have more than one-half of their electric load served within the 
region. A regional advisory body shall be composed of one member from 
each participating State in the region, appointed by the Governor of 
each State, and may include representatives of agencies, States, and 
provinces outside the United States. A regional advisory body may 
provide advice to the ERO, 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.
    ``(k) The provisions of this section do not apply to Alaska or 
Hawaii.''.

                      Subtitle B--Regional Markets

SEC. 1121. IMPLEMENTATION DATE FOR PROPOSED RULEMAKING ON STANDARD 
              MARKET DESIGN.

    The Commission's proposed rulemaking entitled ``Remedying Undue 
Discrimination Through Open Access Transmission Service and Standard 
Electricity Market Design'' (Docket No. RM01-12-000) is remanded to the 
Commission for reconsideration. No final rule pursuant to the proposed 
rulemaking, including any rule or order of general applicability within 
the scope of the proposed rulemaking, may be issued before July 1, 
2005. Any final rule issued by the Commission pursuant to the proposed 
rulemaking, including any rule or order of general applicability within 
the scope of the proposed rulemaking, shall be proceeded by a notice of 
proposed rulemaking issued after the date of enactment of this Act and 
an opportunity for public comment.

SEC. 1122. SENSE OF THE CONGRESS ON REGIONAL TRANSMISSION 
              ORGANIZATIONS.

    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 independently administered Regional 
Transmission Organizations (``RTO'') that have operational or 
functional control of facilities used for the transmission of electric 
energy in interstate commerce and do not own or control generation 
facilities used to supply electric energy for sale at wholesale.

SEC. 1123. FEDERAL UTILITY PARTICIPATION IN REGIONAL TRANSMISSION 
              ORGANIZATIONS.

    (a) Definitions.--For purposes of this section:
            (1) The term ``appropriate Federal regulatory authority'' 
        means--
                    (A) with respect to a Federal power marketing 
                agency, 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
                    (B) with respect to the Tennessee Valley Authority, 
                the Board of Directors of the Tennessee Valley 
                Authority.
            (2) The term ``Federal utility'' means a Federal power 
        marketing agency or the Tennessee Valley Authority.
            (3) The term ``transmission system'' means electric 
        transmission facilities owned, leased, or contracted for by the 
        United States and operated by a Federal utility.
    (b) Transfer.--
            (1) 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 a Regional 
        Transmission Organization (``RTO''). Such contract, agreement 
        or arrangement shall be voluntary and include--
                    (A) 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;
                    (B) provisions for monitoring and oversight by the 
                Federal utility of the RTO fulfillment of the terms and 
                conditions of the contract, agreement or other 
                arrangement, including a provision that may provide for 
                the resolution of disputes through arbitration or other 
                means with the RTO or with other participants, 
                notwithstanding the obligations and limitations of any 
                other law regarding arbitration; and
                    (C) a provision that allows the Federal utility to 
                withdraw from the RTO and terminate the contract, 
                agreement or other arrangement in accordance with its 
                terms.
            (2) Neither this section, actions taken pursuant to it, nor 
        any other transaction of a Federal utility using an RTO shall 
        serve to confer upon the 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.
    (c) Existing Statutory and Other Obligations.--
            (1) Any statutory provision requiring or authorizing a 
        Federal utility to transmit electric power, or to construct, 
        operate or maintain its transmission system shall not be 
        construed to prohibit a transfer of control and use of its 
        transmission system pursuant to, and subject to all 
        requirements of subsection (b).
            (2) This subsection shall not be construed to--
                    (A) 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
                    (B) authorize abrogation of any contract or treaty 
                obligation.

SEC. 1124. REGIONAL CONSIDERATION OF COMPETITIVE WHOLESALE MARKETS.

    (a) State Regulatory Commissions.--Not later than 90 days after the 
date of enactment of this Act, the Commission shall convene regional 
discussions with State regulatory commissions, as defined in section 
3(21) of the Federal Power Act. The regional discussions should address 
whether wholesale electric markets in each region are working 
effectively to provide reliable service to electric consumers in the 
region at the lowest reasonable cost. Priority should be given to 
discussions in regions that do not have, as of the date of enactment of 
this Act, a Regional Transmission Organization (``RTO''). The regional 
discussions shall consider--
            (1) the need for an RTO or other organizations in the 
        region to provide nondiscriminatory transmission access and 
        generation interconnection;
            (2) a process for regional planning of transmission 
        facilities with State regulatory authority participation and 
        for consideration of multi-state projects;
            (3) a means for ensuring that costs for all electric 
        consumers, as defined in section 3(5) of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2602(5)), and buyers 
        of wholesale energy or capacity are reasonable and economically 
        efficient;
            (4) a means for ensuring that all electric consumers, as 
        defined in section 3(5) of the Public Utility Regulatory 
        Policies Act of 1978 (16 U.S.C. 2602(5)), within the region 
        maintain their ability to use the existing transmission system 
        without incurring unreasonable additional costs in order to 
        expand the transmission system for new customers;
            (5) whether the integrated transmission and electric power 
        supply system can and should be operated in a manner that 
        schedules and economically prioritizes all available electric 
        generation resources, so as to minimize the costs of electric 
        energy to all consumers (``economic dispatch'') and maintaining 
        system reliability;
            (6) a means to provide transparent price signals to ensure 
        efficient expansion of the electric system and efficiently 
        manage transmission congestion;
            (7) eliminating in a reasonable manner, consistent with 
        applicable State and Federal law, multiple, cumulative charges 
        for transmission service across successive locations within a 
        region (``pancaked rates'');
            (8) resolution of seams issues with neighboring regions and 
        inter-regional coordination;
            (9) a means of providing information electronically to 
        potential users of the transmission system;
            (10) implementation of a market monitor for the region with 
        State regulatory authority and Commission oversight and 
        establishment of rules and procedures that ensure that State 
        regulatory authorities are provided access to market 
        information and that provides for expedited consideration by 
        the Commission of any complaints concerning exercise of market 
        power and the operation of wholesale markets;
            (11) a process by which to phase-in any proposed RTO or 
        other organization designated to provide nondiscriminatory 
        transmission access so as to best meet the needs of a region, 
        and, if relevant, shall take into account the special 
        circumstances that may be found in the Western Interconnection 
        related to the existence of transmission congestion, the 
        existence of significant hydroelectric capacity, the 
        participation of unregulated transmitting utilities, and the 
        distances between generation and load; and
            (12) a timetable to meet the objectives of this section.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Commission shall report to Congress on the progress made 
in addressing the issues in subsection (a) of this section in 
discussions with the States.
    (c) Savings.--Nothing in this section shall affect any discussions 
between the Commission and State or other retail regulatory authorities 
that are on-going prior to enactment of this Act.

   Subtitle C--Improving Transmission Access and Protecting Service 
                              Obligations

SEC. 1131. SERVICE OBLIGATION SECURITY AND PARITY.

    The Federal Power Act (16 U.S.C. 824e) is amended by adding the 
following:
    ``Sec. 220. (a)(1) The Commission shall exercise its authority 
under this Act to ensure that any load-serving entity that, as of the 
date of enactment of this section--
            ``(A) owns generation facilities, markets the output of 
        federal generation facilities, or holds rights under one or 
        more long-term contracts to purchase electric energy, for the 
        purpose of meeting a service obligation, and
            ``(B) by reason of ownership of transmission facilities, or 
        one 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,
is entitled to use such firm transmission rights, or equivalent 
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 meet 
its service obligation.
    ``(2) To the extent that all or a portion of the service obligation 
covered by such firm transmission rights is transferred to another 
load-serving entity, the successor load-serving entity shall be 
entitled to use the firm 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.
    ``(3) 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.
    ``(b) Nothing in this section shall affect any methodology for the 
allocation of transmission rights by a Commission-approved entity that, 
prior to the date of enactment of this section, has been authorized by 
the Commission to allocate transmission rights.
    ``(c) 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.
    ``(d) 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.
    ``(e) For purposes of this section:
            ``(1) The term `distribution utility' means an electric 
        utility that has a service obligation to end-users.
            ``(2) The term `load-serving entity' means a distribution 
        utility or an electric utility (including an entity described 
        in section 201(f) or a rural cooperative) that has a service 
        obligation to end-users or a distribution utility.
            ``(3) The term `service obligation' means a requirement 
        applicable to, or the exercise of authority granted to, an 
        electric utility (including an entity described in section 
        201(f) or a rural cooperative) under Federal, State or local 
        law or under long-term contracts to provide electric service to 
        end-users or to a distribution utility.
    ``(f) Nothing in the section shall apply to an entity located in an 
area referred to in section 212(k)(2)(A).''.

SEC. 1132. OPEN NONDISCRIMINATORY ACCESS.

    Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended 
by inserting after section 211 the following:

          ``open access by unregulated transmitting utilities

    ``Sec. 211A. (a) Subject to section 212(h), the Commission may, by 
rule or order, require an unregulated transmitting utility to provide 
transmission services--
            ``(1) at rates that are comparable to those that the 
        unregulated transmitting utility charges itself; and
            ``(2) 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.
    ``(b) The Commission shall exempt from any rule or order under this 
subsection any unregulated transmitting utility that--
            ``(1) is a distribution utility that a sells no more than 
        4,000,000 megawatt hours of electricity per year; or
            ``(2) does not own or operate any transmission facilities 
        that are necessary for operating an interconnected transmission 
        system (or any portion thereof); or
            ``(3) meets other criteria the Commission determines to be 
        in the public interest.
    ``(c) Whenever the Commission, after a hearing held upon a 
complaint, finds any exemption granted pursuant to subsection (b) 
adversely affects the reliable and efficient operation of an 
interconnected transmission system, it may revoke the exemption.
    ``(d) 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.
    ``(e) 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).
    ``(f) The provision of transmission services under subsection (a) 
does not preclude a request for transmission services under section 
211.
    ``(g) The Commission may not require a State or municipality to 
take action under this section that constitutes a private business use 
for purposes of section 141 of the Internal Revenue Code of 1986 (26 
U.S.C. 141).
    ``(h) Nothing in this Act 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 organization designated to provide non-
discriminatory transmission access.''.

SEC. 1133. TRANSMISSION INFRASTRUCTURE INVESTMENT.

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

             ``sustainable transmission networks rulemaking

    ``Sec. 221. Within six months of enactment of this section, the 
Commission shall issue a final rule establishing transmission pricing 
policies applicable to all public utilities and policies for the 
allocation of costs associated with the expansion, modification or 
upgrade of existing interstate transmission facilities and for the 
interconnection of new transmission facilities for utilities and 
facilities which are not included within a Commission approved RTO. 
Consistent with section 205 of this Act, such rule shall, to the 
maximum extent practicable--
            ``(1) promote capital investment in the economically 
        efficient transmission systems;
            ``(2) encourage the construction of transmission and 
        generation facilities in a manner which provides the lowest 
        overall risk and cost to consumers;
            ``(3) encourage improved operation of transmission 
        facilities and deployment of transmission technologies designed 
        to increase capacity and efficiency of existing networks;
            ``(4) ensure that the costs of any transmission expansion 
        or interconnection be allocated in such a way that all users of 
        the affected transmission system bear the appropriate share of 
        costs; and
            ``(5) ensure that parties who pay for facilities necessary 
        for transmission expansion or interconnection receive 
        appropriate compensation for those facilities.''.

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

SEC. 1141. NET METERING.

    (a) Adoption of Standard.--Section 111(d) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by 
adding at the end the following:
            ``(11) Net metering.--
                    ``(A) Each electric utility shall make available 
                upon request net metering service to any electric 
                consumer that the electric utility serves.
                    ``(B) For purposes of implementing this paragraph, 
                any reference contained in this section to the date of 
                enactment of the Public Utility Regulatory Policies Act 
                of 1978 shall be deemed to be a reference to the date 
                of enactment of this paragraph.
                    ``(C) Notwithstanding subsections (b) and (c) of 
                section 112, each State regulatory authority shall 
                consider and make a determination concerning whether it 
                is appropriate to implement the standard set out in 
                subparagraph (A) not later than 1 year after the date 
                of enactment of this paragraph.''.
    (b) Special Rules for Net Metering.--Section 115 of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) is further 
amended by adding at the end the following:
    ``(i) Net Metering.--In undertaking the consideration and making 
the determination under section 111 with respect to the standard 
concerning net metering established by section 111(d)(13), the term net 
metering service shall mean a service provided in accordance with the 
following standards:
            ``(1) An electric utility--
                    ``(A) shall charge the owner or operator of an on-
                site generating facility rates and charges that are 
                identical to those that would be charged other electric 
                consumers of the electric utility in the same rate 
                class; and
                    ``(B) shall not charge the owner or operator of an 
                on-site generating facility any additional standby, 
                capacity, interconnection, or other rate or charge.
            ``(2) An electric utility that sells electric energy to the 
        owner or operator of an on-site generating facility shall 
        measure the quantity of electric energy produced by the on-site 
        facility and the quantity of electric energy consumed by the 
        owner or operator of an on-site generating facility during a 
        billing period in accordance with reasonable metering 
        practices.
            ``(3) If the quantity of electric energy sold by the 
        electric utility to an on-site generating facility exceeds the 
        quantity of electric energy supplied by the on-site generating 
        facility to the electric utility during the billing period, the 
        electric utility may bill the owner or operator for the net 
        quantity of electric energy sold, in accordance with reasonable 
        metering practices.
            ``(4) If the quantity of electric energy supplied by the 
        on-site generating facility to the electric utility exceeds the 
        quantity of electric energy sold by the electric utility to the 
        on-site generating facility during the billing period--
                    ``(A) the electric utility may bill the owner or 
                operator of the on-site generating facility for the 
                appropriate charges for the billing period in 
                accordance with paragraph (2); and
                    ``(B) the owner or operator of the on-site 
                generating facility shall be credited for the excess 
                kilowatt-hours generated during the billing period, 
                with the kilowatt-hour credit appearing on the bill for 
                the following billing period.
            ``(5) An eligible onsite generating facility and net 
        metering system used by an electric consumer shall meet all 
        applicable safety, performance, reliability, and 
        interconnection standards established by the National 
        Electrical Code, the Institute of Electrical and Electronics 
        Engineers, and Underwriters Laboratories.
            ``(6) The Commission, after consultation with State 
        regulatory authorities and unregulated electric utilities and 
        after notice and opportunity for comment, may adopt, by rule, 
        additional control and testing requirements for on-site 
        generating facilities and net metering systems that the 
        Commission determines are necessary to protect public safety 
        and system reliability.
            ``(7) For purposes of this subsection--
                    ``(A) The term `eligible on-site generating 
                facility' means a facility on the site of a residential 
                electric consumer with a maximum generating capacity of 
                10 kilowatts or less that is fueled by solar energy, 
                wind energy, or fuel cells; or a facility on the site 
                of a commercial electric consumer with a maximum 
                generating capacity of 500 kilowatts or less that is 
                fueled solely by a renewable energy resource, landfill 
                gas, or a high efficiency system.
                    ``(B) The term `renewable energy resource' means 
                solar, wind, biomass, or geothermal energy.
                    ``(C) The term `high efficiency system' means fuel 
                cells or combined heat and power.
                    ``(D) The term `net metering service' means service 
                to an electric consumer under which electric energy 
                generated by that electric consumer from an eligible 
                on-site generating facility and delivered to the local 
                distribution facilities may be used to offset electric 
                energy provided by the electric utility to the electric 
                consumer during the applicable billing period.''.

SEC. 1142. SMART METERING.

    (a) In General.--Section 111(d) of the Public Utilities Regulatory 
Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the 
end the following:
            ``(12) Time-based metering and communications.--
                    ``(A) 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 
                in the 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.
                    ``(B) The types of time-based rate schedules that 
                may be offered under the schedule referred to in 
                subparagraph (A) include, among others--
                            ``(i) 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. 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;
                            ``(ii) 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 purchasing electricity at the 
                        wholesale level and when consumers may receive 
                        additional discounts for reducing peak period 
                        energy consumption; and
                            ``(iii) real-time pricing whereby 
                        electricity prices are set for a specific time 
                        period on an advanced or forward basis and may 
                        change as often as hourly.
                    ``(C) 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.
                    ``(D) 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.
                    ``(E) In a State that permits third-party marketers 
                to sell electric energy to retail electric consumers, 
                such consumers shall be entitled to receive that same 
                time-based metering and communications device and 
                service as a retail electric consumer of the electric 
                utility.
                    ``(F) Notwithstanding subsections (b) and (c) of 
                section 112, each State regulatory authority shall, not 
                later than twelve (12) months after 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).''.
    (b) State Investigation of Demand Response and Time-based 
Metering.--Section 115 of the Public Utilities Regulatory Policies Act 
of 1978 (16 U.S.C. 2625) is amended by adding the at the end the 
following:
    ``(k) Time-based Metering and Communications.--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.''.
    (c) Federal Assistance on Demand Response.--Section 132(a) of the 
Public Utility Regulatory Polices Act of 1978 (16 U.S.C. 2642(a)) is 
amended by striking ``and'' at the end of paragraph (3), striking the 
period at the end of paragraph (4) and inserting ``; and'', and by 
adding the following at the end thereof:
            ``(5) 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.''.
    (d) Federal Guidance.--Section 132 of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 2643) is amended by adding the 
following at the end thereof:
    ``(d) Demand Response.--The Secretary shall be responsible for--
            ``(1) educating consumers on the availability, advantages 
        and benefits of advanced metering and communications 
        technologies, including the funding of demonstration or pilot 
        projects;
            ``(2) 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
            ``(3) not later than 180 days after the date of enactment 
        of the Energy Policy Act of 2003, providing the 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.''.
    (e) Demand Response and Regional Coordination.--
            (1) 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.
            (2) The Secretary of Energy shall provide technical 
        assistance to States and regional organizations formed by two 
        or more States to assist them in--
                    (A) identifying the areas with the greatest demand 
                response potential;
                    (B) identifying and resolving problems in 
                transmission and distribution networks, including 
                through the use of demand response; and
                    (C) developing plans and programs to use demand 
                response to respond to peak demand or emergency needs.
            (3) Not later than 1 year after the date of enactment of 
        this Act, 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--
                    (A) saturation and penetration rate of advanced 
                meters and communications technologies, devices and 
                systems;
                    (B) existing demand response programs and time-
                based rate programs;
                    (C) the annual resource contribution of demand 
                resources;
                    (D) the potential for demand response as a 
                quantifiable, reliable resource for regional planning 
                purposes; and
                    (E) 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.
    (f) Federal Encouragement of Demand Response Devices.--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.

SEC. 1143. ADOPTION OF ADDITIONAL STANDARDS.

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

SEC. 1144. TECHNICAL ASSISTANCE.

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

SEC. 1145. COGENERATION AND SMALL POWER PRODUCTION PURCHASE AND SALE 
              REQUIREMENTS.

    (a) Termination of Mandatory Purchase and Sale Requirements.--
Section 210 of the Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 824a-3) is amended by adding at the end the following:
    ``(m) Termination of Mandatory Purchase and Sale Requirements.--
            ``(1) Obligation to purchase.--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 access to an 
        independently administered, auction-based day ahead and real 
        time wholesale market for the sale of electric energy.
            ``(2) Obligation to sell.--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 competing retail 
        electric suppliers are able to provide electric energy to the 
        qualifying cogeneration facility or qualifying small power 
        production facility.
            ``(3) No effect on existing rights and remedies.--Nothing 
        in this subsection affects the rights or remedies of any party 
        under any contract or obligation, in effect on the date of 
        enactment of this subsection, to purchase electric energy or 
        capacity from or to sell electric energy or capacity to a 
        facility under this Act (including the right to recover costs 
        of purchasing electric energy or capacity).
            ``(4) Recovery of costs.--
                    ``(A) Regulation.--The Commission shall promulgate 
                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 before the 
                date of enactment of this subsection recovers all 
                prudently incurred costs associated with the purchase.
                    ``(B) Enforcement.--A regulation under subparagraph 
                (A) shall be enforceable in accordance with the 
                provisions of law applicable to enforcement of 
                regulations under the Federal Power Act (16 U.S.C. 791a 
                et seq.).''.
    (b) Elimination of Ownership Limitations.--Section 3 of the Federal 
Power Act (16 U.S.C. 796) is amended--
            (1) by striking paragraph (17)(C) and inserting the 
        following:
                    ``(C) `qualifying small power production facility' 
                means a small power production facility that the 
                Commission determines, by rule, meets such requirements 
                (including requirements respecting minimum size, fuel 
                use, and fuel efficiency) as the Commission may, by 
                rule, prescribe;''; and
            (2) by striking paragraph (18)(B) and inserting the 
        following:
                    ``(B) `qualifying cogeneration facility' means a 
                cogeneration facility that the Commission determines, 
                by rule, meets such requirements (including 
                requirements respecting minimum size, fuel use, and 
                fuel efficiency) as the Commission may, by rule, 
                prescribe;''.

SEC. 1146. RECOVERY OF COSTS.

    (a) Regulation.--To ensure recovery by any electric utility that 
purchases electricity or capacity from a qualifying facility pursuant 
to any legally enforceable obligation entered into or imposed under 
section 210 of the Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 824a-3) before the date of enactment of this Act of all costs 
associated with the purchases, the Commission shall promulgate and 
enforce such regulations as are required to ensure that no utility 
shall be required directly or indirectly to absorb the costs associated 
with the purchases.
    (b) Treatment.--A regulation under subsection (a) shall be treated 
as a rule enforceable under the Federal Power Act (16 U.S.C. 791a et 
seq.).

Subtitle E--Provisions Regarding the Public Utility Holding Company Act 
                                of 1935

SEC. 1151. DEFINITIONS.

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

SEC. 1152. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935.

    The Public Utility Holding Company Act of 1935 (15 U.S.C. 79a et 
seq.) is repealed, effective 12 months after the date of enactment of 
this Act.

SEC. 1153. FEDERAL ACCESS TO BOOKS AND RECORDS.

    (a) In General.--Each holding company and each associate company 
thereof shall maintain, and shall make available to the Commission, 
such books, accounts, memoranda, and other records as the Commission 
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.
    (b) Affiliate Companies.--Each affiliate of a holding company or of 
any subsidiary company of a holding company shall maintain, and 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.
    (c) Holding Company Systems.--The Commission may examine the books, 
accounts, memoranda, and other records of any company in a holding 
company system, or any affiliate thereof, as the Commission 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.
    (d) Confidentiality.--No member, officer, or employee of the 
Commission shall divulge any fact or information that may come to his 
or her knowledge during the course of examination of books, accounts, 
memoranda, or other records as provided in this section, except as may 
be directed by the Commission or by a court of competent jurisdiction.

SEC. 1154. STATE ACCESS TO BOOKS AND RECORDS.

    (a) In General.--Upon the written request of a State commission 
having jurisdiction to regulate a public utility company in a holding 
company system, and 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, 
a holding company or any associate company or affiliate thereof, 
wherever located, shall produce for inspection books, accounts, 
memoranda, and other records that--
            (1) have been identified in reasonable detail in a 
        proceeding before the State commission;
            (2) the State commission determines are relevant to costs 
        incurred by such public utility company; and
            (3) are necessary for the effective discharge of the 
        responsibilities of the State commission with respect to such 
        proceeding.
    (b) Effect on State Law.--Nothing in this section shall preempt 
applicable State law concerning the provision of books, accounts, 
memoranda, or other records, or in any way limit the rights of any 
State to obtain books, accounts, memoranda, or other records, under 
Federal law, contract, or otherwise.
    (c) Court Jurisdiction.--Any United States district court located 
in the State in which the State commission referred to in subsection 
(a) is located shall have jurisdiction to enforce compliance with this 
section.

SEC. 1155. EXEMPTION AUTHORITY.

    (a) Rulemaking.--Not later than 90 days after the date of enactment 
of this title, the Commission shall promulgate a final rule to exempt 
from the requirements of section 203 any person that is a holding 
company, solely with respect to one or more--
            (1) qualifying facilities under the Public Utility 
        Regulatory Policies Act of 1978;
            (2) exempt wholesale generators; or
            (3) foreign utility companies.
    (b) Other Authority.--If, upon application or upon its own motion, 
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 company or natural gas company, or if the Commission 
finds that any class of transactions is not relevant to the 
jurisdictional rates of a public utility company, the Commission shall 
exempt such person or transaction from the requirements of section 203.

SEC. 1156. AFFILIATE TRANSACTIONS.

    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, public utility, or natural gas 
company from an associate company.

SEC. 1157. APPLICABILITY.

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

SEC. 1158. EFFECT ON OTHER REGULATIONS.

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

SEC. 1159. ENFORCEMENT.

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

SEC. 1160. SAVINGS PROVISIONS.

    (a) In General.--Nothing in this subtitle prohibits a person from 
engaging in or continuing to engage in activities or transactions in 
which it is legally engaged or authorized to engage on the date of 
enactment of this Act, if that person continues to comply with the 
terms of any such authorization, whether by rule or by order.
    (b) Effect on Other Commission Authority.--Nothing in this subtitle 
limits the authority of the Commission under the Federal Power Act (16 
U.S.C. 791a and following) (including section 301 of that Act) or the 
Natural Gas Act (15 U.S.C. 717 and following) (including section 8 of 
that Act).

SEC. 1161. IMPLEMENTATION.

    Not later than 12 months after the date of enactment of this title, 
the Commission shall--
            (1) promulgate such regulations as may be necessary or 
        appropriate to implement this subtitle; and
            (2) 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.

SEC. 1162. TRANSFER OF RESOURCES.

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

SEC. 1163. EFFECTIVE DATE.

    This subtitle shall take effect 12 months after the date of 
enactment of this title.

SEC. 1164. CONFORMING AMENDMENT TO THE FEDERAL POWER ACT.

    Section 318 of the Federal Power Act (16 U.S.C. 825q) is repealed.

   Subtitle F--Market Transparency, Anti-Manipulation And Enforcement

SEC. 1171. MARKET TRANSPARENCY RULES.

    Part II of the Federal Power Act is amended by adding:

                      ``market transparency rules

    ``Sec. 222. (a) 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. 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. The Commission shall have authority to obtain 
such information from any electric and transmitting utility, including 
any entity described in section 201(f).
    ``(b) 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 an entity described in section 212(k)(2)(B) with respect to 
transactions for the purchase or sale of wholesale electric energy and 
transmission services within the area described in section 
212(k)(2)(A).''.

SEC. 1172. MARKET MANIPULATION.

    Part II of the Federal Power Act is amended by the following:

               ``prohibition on filing false information

    ``Sec. 223. It shall be a violation of this Act for any person or 
any other entity (including entities described in section 201(f)) 
willfully and knowingly to report any information relating to the price 
of electricity sold at wholesale, which information the person or any 
other entity knew to be false at the time of the reporting, to any 
governmental entity with the intent to manipulate the data being 
compiled by such governmental entity.

                  ``prohibition on round trip trading

    ``Sec. 224. (a) It shall be a violation of this Act for any person 
or any other entity (including entities described in section 201(f)) 
willfully and knowingly to enter into any contract or other arrangement 
to execute a `round-trip trade' for the purchase or sale of electric 
energy at wholesale.
    ``(b) For the purposes of this section, the term `round trip trade' 
means a transaction, or combination of transactions, in which a person 
or any other entity--
            ``(1) enters into a contract or other arrangement to 
        purchase from, or sell to, any other person or other entity 
        electric energy at wholesale;
            ``(2) 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
            ``(3) enters into the contract or arrangement with the 
        intent to deceptively affect reported revenues, trading 
        volumes, or prices.''.

SEC. 1173. ENFORCEMENT.

    (a) Complaints.--Section 306 of the Federal Power Act (16 U.S.C. 
825e) is amended by--
            (1) inserting ``electric utility (including entities 
        described in section 201(f) and rural cooperative entities),'' 
        after ``Any person,''; and
            (2) inserting ``transmitting utility,'' after ``licensee'' 
        each place it appears.
    (b) Investigations.--Section 307(a) of the Federal Power Act (16 
U.S.C. 825f(a)) is amended by inserting ``or transmitting utility'' 
after ``any person'' in the first sentence.
    (c) Review of Commission Orders.--Section 313(a) of the Federal 
Power Act (16 U.S.C. 8251) is amended by inserting ``electric 
utility,'' after ``Any person,'' in the first sentence.
    (d) Criminal Penalties.--Section 316 of the Federal Power Act (16 
U.S.C. 825o) is amended--
            (1) in subsection (a), by striking ``$5,000'' and inserting 
        ``$1,000,000'', and by striking ``two years'' and inserting 
        ``five years'';
            (2) in subsection (b), by striking ``$500'' and inserting 
        ``$25,000''; and
            (3) by striking subsection (c).
    (e) Civil Penalties.--Section 316A of the Federal Power Act (16 
U.S.C. 825o-1) is amended--
            (1) in subsections (a) and (b), by striking ``section 211, 
        212, 213, or 214'' each place it appears and inserting ``Part 
        II''; and
            (2) in subsection (b), by striking ``$10,000'' and 
        inserting ``$1,000,000''.
    (f) General Penalties.--Section 21 of the Natural Gas Act (15 
U.S.C. 717t) is amended--
            (1) in subsection (a), by striking ``$5,000'' and inserting 
        ``$1,000,000'', and by striking ``two years'' and inserting 
        ``five years''; and
            (2) in subsection (b), by striking ``$500'' and inserting 
        ``$50,000''.

SEC. 1174. REFUND EFFECTIVE DATE.

    Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b)) is 
amended by--
            (1) striking ``the date 60 days after the filing of such 
        complaint nor later than 5 months after the expiration of such 
        60-day period'' in the second sentence and inserting ``the date 
        of the filing of such complaint nor later than 5 months after 
        the filing of such complaint'';
            (2) striking ``60 days after'' in the third sentence and 
        inserting ``of'';
            (3) striking ``expiration of such 60-day period'' in the 
        third sentence and inserting ``publication date''; and
            (4) striking the fifth sentence and inserting: ``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.''.

                    Subtitle G--Consumer Protections

SEC. 1181. CONSUMER PRIVACY.

    The Federal Trade Commission shall issue rules protecting the 
privacy of electric consumers from the disclosure of consumer 
information in connection with the sale or delivery of electric energy 
to a retail electric consumer. 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.

SEC. 1182. UNFAIR TRADE PRACTICES.

    (a) Slamming.--The Federal Trade Commission shall issue rules 
prohibiting the change of selection of an electric utility except with 
the informed consent of the electric consumer or if determined by the 
appropriate State regulatory authority to be necessary to prevent loss 
of service.
    (b) Cramming.--The Federal Trade Commission shall issue rules 
prohibiting the sale of goods and services to an electric consumer 
unless expressly authorized by law or the electric consumer.
    (c) State Authority.--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.

SEC. 1183. DEFINITIONS.

    For purposes of this subtitle--
            (1) ``State regulatory authority'' has the meaning given 
        that term in section 3(21) of the Federal Power Act (16 U.S.C. 
        796(21)); and
            (2) ``electric consumer'' and ``electric utility'' have the 
        meanings given those terms in section 3 of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2602).

                    Subtitle H--Technical Amendments

SEC. 1191. TECHNICAL AMENDMENTS.

    (a) Section 211(c) of the Federal Power Act (16 U.S.C. 824j(c)) is 
amended by--
            (1) striking ``(2)'';
            (2) striking ``(A)'' and inserting ``(1)'';
            (3) striking ``(B)'' and inserting ``(2)''; and
            (4) striking ``termination of modification'' and inserting 
        ``termination or modification''.
    (b) Section 211(d)(1) of the Federal Power Act (16 U.S.C. 824j(d)) 
is amended by striking ``electric utility'' the second time it appears 
and inserting ``transmitting utility''.
    (c) Section 315 of the Federal Power Act (16 U.S.C. 825n) is 
amended by striking ``subsection'' and inserting ``section''.




                                                        Calendar No. 79

108th CONGRESS

  1st Session

                                 S. 14

_______________________________________________________________________

                                 A BILL

  To enhance the energy security of the United States, and for other 
                                purposes

_______________________________________________________________________

                              May 1, 2003

            Read the second time and placed on the calendar