[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 610 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 610

To provide for Federal energy research, development, demonstration, and 
       commercial application activities, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 8, 2005

 Mrs. Biggert (for herself and Mr. Boehlert) introduced the following 
 bill; which was referred to the Committee on Science, and in addition 
to the Committees on Energy and Commerce and Resources, for a period to 
      be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
To provide for Federal energy research, development, demonstration, and 
       commercial application activities, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Energy Research, 
Development, Demonstration, and Commercial Application Act of 2005''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
                       TITLE I--SCIENCE PROGRAMS

Sec. 101. Office of Science programs.
Sec. 102. Systems biology program.
Sec. 103. Catalysis Research and Development Program.
Sec. 104. Hydrogen.
Sec. 105. Advanced scientific computing research.
Sec. 106.  Fusion Energy Sciences program.
Sec. 107. Science and Technology Scholarship Program.
Sec. 108. Office of Scientific and Technical Information.
Sec. 109. Authorization of appropriations.
            TITLE II--RESEARCH ADMINISTRATION AND OPERATIONS

Sec. 201. Cost Sharing.
Sec. 202. Reprogramming.
Sec. 203. Merit-based competition.
Sec. 204. External technical review of departmental programs.
Sec. 205. Competitive award of management contracts.
Sec. 206. National Laboratory designation.
Sec. 207. Report on equal employment opportunity practices.
Sec. 208. User facility best practices plan.
Sec. 209. Support for science and energy infrastructure and facilities.
Sec. 210. Coordination plan.
Sec. 211. Availability of funds.
                      TITLE III--ENERGY EFFICIENCY

            Subtitle A--Vehicles, Buildings, and Industries

Sec. 301. Programs.
Sec. 302. Vehicles.
Sec. 303. Buildings.
Sec. 304. Industries.
Sec. 305. Demonstration and commercial application.
Sec. 306. Secondary electric vehicle battery use program.
Sec. 307. Definition of cost-effective.
Sec. 308. Authorization of appropriations.
Sec. 309. Limitation on use of funds.
       Subtitle B--Distributed Energy and Electric Energy Systems

Sec. 321. Distributed energy.
Sec. 322. Electricity transmission and distribution and energy 
                            assurance.
Sec. 323. Authorization of appropriations.
                       TITLE IV--RENEWABLE ENERGY

Sec. 401. Findings.
Sec. 402. Definitions.
Sec. 403. Programs.
Sec. 404. Solar.
Sec. 405. Bioenergy programs.
Sec. 406. Wind.
Sec. 407. Geothermal.
Sec. 408. Photovoltaic demonstration program.
Sec. 409. Additional programs.
Sec. 410. Analysis and evaluation.
Sec. 411. Authorization of appropriations.
                    TITLE V--NUCLEAR ENERGY PROGRAMS

Sec. 501. Definition.
Sec. 502. Programs.
              Subtitle A--Nuclear energy research programs

Sec. 511. Advanced fuel recycling program.
Sec. 512. University nuclear science and engineering support.
Sec. 513. University-National Laboratory interactions.
Sec. 514. Nuclear Power 2010 Program.
Sec. 515. Generation IV Nuclear Energy Systems Initiative.
Sec. 516. Civilian infrastructure and facilities.
Sec. 517. Nuclear energy research and development infrastructure plan.
Sec. 518. Idaho National Laboratory facilities plan.
Sec. 519. Authorization of appropriations.
           Subtitle B--Next Generation Nuclear Plant Program

Sec. 531. Definitions.
Sec. 532. Next generation nuclear power plant.
Sec. 533. Advisory committee.
Sec. 534. Program requirements.
Sec. 535. Authorization of appropriations.
                        TITLE VI--FOSSIL ENERGY

                     Subtitle A--Research Programs

Sec. 601. Enhanced fossil energy research and development programs.
Sec. 602. Fossil research and development.
Sec. 603. Oil and gas research and development.
Sec. 604. Transportation fuels.
Sec. 605. Fuel cells.
Sec. 606. Authorization of appropriations.
 Subtitle B--Ultra-Deepwater and Unconventional Natural Gas and Other 
                          Petroleum Resources

Sec. 611. Program authority.
Sec. 612. Ultra-deepwater Program.
Sec. 613. Unconventional natural gas and other petroleum resources 
                            Program.
Sec. 614. Additional requirements for awards.
Sec. 615. Advisory committees.
Sec. 616. Limits on participation.
Sec. 617. Sunset.
Sec. 618. Definitions.
Sec. 619. Funding.
                          TITLE VII--HYDROGEN

Sec. 701. Definitions.
Sec. 702. Plan.
Sec. 703. Programs.
Sec. 704. Interagency task force.
Sec. 705. Advisory Committee.
Sec. 706. External review.
Sec. 707. Miscellaneous provisions.
Sec. 708. Savings clause.
Sec. 709. Authorization of appropriations.
                     TITLE VIII--ADVANCED VEHICLES

                       Subtitle A--Pilot Program

Sec. 801. Definitions.
Sec. 802. Pilot program.
Sec. 803. Reports to Congress.
Sec. 804. Authorization of appropriations.
                     Subtitle B--Clean school buses

Sec. 811. Definitions.
Sec. 812. Program for replacement of certain school buses with clean 
                            school buses.
Sec. 813. Diesel retrofit program.
Sec. 814. Fuel cell school buses.
            Subtitle C--Fuel cell transit bus demonstration

Sec. 821. Fuel cell transit bus demonstration.
                 TITLE IX--CLEAN COAL POWER INITIATIVE

Sec. 901. Authorization of appropriations.
Sec. 902. Project criteria.
Sec. 903. Report.
Sec. 904. Clean coal centers of excellence.
 TITLE X--IMPROVED COORDINATION AND MANAGEMENT OF CIVILIAN SCIENCE AND 
                          TECHNOLOGY PROGRAMS

Sec. 1001. Improved coordination and management of civilian science and 
                            technology programs.

SEC. 2. DEFINITIONS.

    For purposes of this Act:
            (1) Applied programs.--The term ``applied programs'' means 
        the research, development, demonstration, and commercial 
        application programs of the Department concerning energy 
        efficiency, renewable energy, nuclear energy, fossil energy, 
        and electricity transmission and distribution.
            (2) Biomass.--The term ``biomass'' means--
                    (A) any organic material grown for the purpose of 
                being converted to energy;
                    (B) any organic byproduct of agriculture (including 
                wastes from food production and processing) that can be 
                converted into energy; or
                    (C) any waste material that can be converted to 
                energy, is segregated from other waste materials, and 
                is derived from--
                            (i) any of the following forest-related 
                        resources: mill residues, precommercial 
                        thinnings, slash, brush, or otherwise 
                        nonmerchantable material; or
                            (ii) wood waste materials, including waste 
                        pallets, crates, dunnage, manufacturing and 
                        construction wood wastes (other than pressure-
                        treated, chemically-treated, or painted wood 
                        wastes), and landscape or right-of-way tree 
                        trimmings, but not including municipal solid 
                        waste, gas derived from the biodegradation of 
                        municipal solid waste, or paper that is 
                        commonly recycled.
            (3) Department.--The term ``Department'' means the 
        Department of Energy.
            (4) Departmental mission.--The term ``departmental 
        mission'' means any of the functions vested in the Secretary of 
        Energy by the Department of Energy Organization Act (42 U.S.C. 
        7101 et seq.) or other law.
            (5) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given that 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            (6) National laboratory.--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 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) Savannah River National Laboratory.
                    (P) Stanford Linear Accelerator Center.
                    (Q) Thomas Jefferson National Accelerator Facility.
            (7) Renewable energy.--The term ``renewable energy'' means 
        energy from wind, sunlight, the flow of water, heat from the 
        Earth, or biomass that can be converted into a usable form such 
        as process heat, electricity, fuel, or space heat.
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (9) State.--The term ``State'' means any of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the United States Virgin Islands, Guam, American Samoa, 
        the Northern Mariana Islands, and any other commonwealth, 
        territory, or possession of the United States.
            (10) University.--The term ``university'' has the meaning 
        given the term ``institution of higher education'' in section 
        101 of the Higher Education Act of 1965 (20 U.S.C. 1001).
            (11) User facility.--The term ``user facility'' means a 
        research and development facility supported, in whole or in 
        part, by Departmental funds that is open, at a minimum, to all 
        qualified United States researchers.

                       TITLE I--SCIENCE PROGRAMS

SEC. 101. OFFICE OF SCIENCE PROGRAMS.

    (a) In General.--The Secretary shall conduct, through the Office of 
Science, programs of research, development, demonstration, and 
commercial application in high energy physics and nuclear physics, 
biological and environmental research, basic energy sciences, advanced 
scientific and computing research, and fusion energy sciences, 
including activities described in this title. The programs shall 
include support for facilities and infrastructure, education, outreach, 
information, analysis, and coordination activities.
    (b) Rare Isotope Accelerator.--
            (1) Establishment.--The Secretary shall construct and 
        operate a Rare Isotope Accelerator. The Secretary shall 
        commence construction no later than September 30, 2008.
            (2) Authorization of appropriations.--There are authorized 
        to be appropriated to the Secretary such sums as may be 
        necessary to carry out this subsection. The Secretary shall not 
        spend more than $1,100,000,000 for all activities associated 
        with the Rare Isotope Accelerator prior to operation.

SEC. 102. SYSTEMS BIOLOGY PROGRAM.

    (a) Program.--
            (1) Establishment.--The Secretary shall establish a 
        research, development, and demonstration program in genetics, 
        protein science, and computational biology to support the 
        energy, national security, and environmental missions of the 
        Department.
            (2) Grants.--The program shall support individual 
        researchers and multidisciplinary teams of researchers through 
        competitive, merit-reviewed grants.
            (3) Consultation.--In carrying out the program, the 
        Secretary shall consult with other Federal agencies that 
        conduct genetic and protein research.
    (b) Goals.--The program shall have the goal of developing 
technologies and methods based on the biological functions of genomes, 
microbes, and plants that--
            (1) can facilitate the production of fuels, including 
        hydrogen;
            (2) convert carbon dioxide to organic carbon;
            (3) detoxify soils and water, including at Departmental 
        facilities, contaminated with heavy metals and radiological 
        materials; and
            (4) address other Department missions as identified by the 
        Secretary.
    (c) Plan.--
            (1) Development of plan.--Not later than 1 year after the 
        date of enactment of this Act, the Secretary shall prepare and 
        transmit to Congress a research plan describing how the program 
        authorized pursuant to this section will be undertaken to 
        accomplish the program goals established in subsection (b).
            (2) Review of plan.--The Secretary shall contract with the 
        National Academy of Sciences to review the research plan 
        developed under this subsection. The Secretary shall transmit 
        the review to Congress not later than 18 months after 
        transmittal of the research plan under paragraph (1), along 
        with the Secretary's response to the recommendations contained 
        in the review.
    (d) User Facilities and Ancillary Equipment.--Within the funds 
authorized to be appropriated pursuant to this title, the amounts 
specified under section 109(b)(1), (c)(1), (d)(1), (e)(1), and (f)(1) 
shall be available for projects to develop, plan, construct, acquire, 
or operate special equipment, instrumentation, or facilities, including 
user facilities, for researchers conducting research, development, 
demonstration, and commercial application in systems biology and 
proteomics and associated biological disciplines.
    (e) Prohibition on Biomedical and Human Cell and Human Subject 
Research.--
            (1) No biomedical research.--In carrying out the program 
        under this section, the Secretary shall not conduct biomedical 
        research.
            (2) Limitations.--Nothing in this section shall authorize 
        the Secretary to conduct any research or demonstrations--
                    (A) on human cells or human subjects; or
                    (B) designed to have direct application with 
                respect to human cells or human subjects.

SEC. 103. CATALYSIS RESEARCH AND DEVELOPMENT PROGRAM.

    (a) Establishment.--The Secretary shall conduct a program of 
research and development in catalysis science, including efforts to--
            (1) enable molecular-level catalyst design by coupling 
        experimental and computational approaches;
            (2) enable nanoscale, high-throughput synthesis, assay, and 
        characterization; and
            (3) synthesize catalysts with specific site architectures.
    (b) Program Activities.--In carrying out the program under this 
section, the Secretary shall--
            (1) support both individual researchers and 
        multidisciplinary teams of researchers to pioneer new 
        approaches in catalytic design;
            (2) develop, plan, construct, acquire, or operate special 
        equipment or facilities, including user facilities;
            (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.

SEC. 104. HYDROGEN.

    The Secretary shall conduct a program of fundamental research and 
development in support of programs authorized in title VII of this Act.

SEC. 105. ADVANCED SCIENTIFIC COMPUTING RESEARCH.

     The Secretary shall conduct an advanced scientific computing 
research and development program, including in applied mathematics and 
the activities authorized by the Department of Energy High-End 
Computing Revitalization Act of 2004 (15 U.S.C. 5541 et seq.). The 
Secretary shall carry out this program with the goal of supporting 
departmental missions and providing the high-performance computational, 
networking, and workforce resources that are required for world 
leadership in science.

SEC. 106. FUSION ENERGY SCIENCES PROGRAM.

    (a) Declaration of Policy.--It shall be the policy of the United 
States to conduct research, development, demonstration, and commercial 
application to provide for the scientific, engineering, and commercial 
infrastructure necessary to ensure that the United States is 
competitive with other nations in providing fusion energy for its own 
needs and the needs of other nations, including by demonstrating 
electric power or hydrogen production for the United States energy grid 
utilizing fusion energy at the earliest date possible.
    (b) Planning.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall transmit to Congress 
        a plan, with proposed cost estimates, budgets, and lists of 
        potential international partners, for the implementation of the 
        policy described in subsection (a). 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 and 
                development 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) Costs and schedules.--Such plan shall also address the 
        status of and, to the degree possible, costs and schedules 
        for--
                    (A) 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.
    (c) United States Participation in ITER.--
            (1) In general.--The United States may participate in ITER 
        only in accordance with this subsection.
            (2) Agreement.--
                    (A) In general.--The Secretary is authorized to 
                negotiate an agreement for United States participation 
                in ITER.
                    (B) Contents.--Any agreement for United States 
                participation in ITER shall, at a minimum--
                            (i) clearly define the United States 
                        financial contribution to construction and 
                        operating costs, as well as any other costs 
                        associated with the project;
                            (ii) ensure that the share of ITER's high-
                        technology components manufactured in the 
                        United States is at least proportionate to the 
                        United States financial contribution to ITER;
                            (iii) ensure that the United States will 
                        not be financially responsible for cost 
                        overruns in components manufactured in other 
                        ITER participating countries;
                            (iv) guarantee the United States full 
                        access to all data generated by ITER;
                            (v) enable United States researchers to 
                        propose and carry out an equitable share of the 
                        experiments at ITER;
                            (vi) provide the United States with a role 
                        in all collective decisionmaking related to 
                        ITER; and
                            (vii) describe the process for 
                        discontinuing or decommissioning ITER and any 
                        United States role in that process.
            (3) Plan.--The Secretary, in consultation with the Fusion 
        Energy Sciences Advisory Committee, shall develop a plan for 
        the participation of United States scientists in ITER that 
        shall include the United States research agenda for ITER, 
        methods to evaluate whether ITER is promoting progress toward 
        making fusion a reliable and affordable source of power, and a 
        description of how work at ITER will relate to other elements 
        of the United States fusion program. The Secretary shall 
        request a review of the plan by the National Academy of 
        Sciences.
            (4) Limitation.--No Federal funds shall be expended for the 
        construction of ITER until the Secretary has transmitted to 
        Congress--
                    (A) the agreement negotiated pursuant to paragraph 
                (2) and 120 days have elapsed since that transmission;
                    (B) a report describing the management structure of 
                ITER and providing a fixed dollar estimate of the cost 
                of United States participation in the construction of 
                ITER, and 120 days have elapsed since that 
                transmission;
                    (C) a report describing how United States 
                participation in ITER will be funded without reducing 
                funding for other programs in the Office of Science, 
                including other fusion programs, and 60 days have 
                elapsed since that transmission; and
                    (D) the plan required by paragraph (3) (but not the 
                National Academy of Sciences review of that plan), and 
                60 days have elapsed since that transmission.
            (5) Alternative to iter.--If at any time during the 
        negotiations on ITER, the Secretary determines that 
        construction and operation of ITER is unlikely or infeasible, 
        the Secretary shall send to Congress, as part of the budget 
        request for the following year, a plan for implementing a 
        domestic burning plasma experiment including costs and 
        schedules for such a plan. The Secretary shall refine such plan 
        in full consultation with the Fusion Energy Sciences Advisory 
        Committee and shall also transmit such plan to the National 
        Academy of Sciences for review.
            (6) Definitions.--In this subsection:
                    (A) Construction.-- The term ``construction'' means 
                the physical construction of the ITER facility, and the 
                physical construction, purchase, or manufacture of 
                equipment or components that are specifically designed 
                for the ITER facility, but does not mean the design of 
                the facility, equipment, or components.
                    (B) ITER.--The term ``ITER'' means the 
                international burning plasma fusion research project in 
                which the President announced United States 
                participation on January 30, 2003, or any similar 
                international project.

SEC. 107. SCIENCE AND TECHNOLOGY SCHOLARSHIP PROGRAM.

    (a) Establishment of Program.--
            (1) In general.--The Secretary is authorized to establish a 
        Science and Technology Scholarship Program to award 
        scholarships to individuals that is designed to recruit and 
        prepare students for careers in the Department.
            (2) Competitive process.--Individuals shall be selected to 
        receive scholarships under this section through a competitive 
        process primarily on the basis of academic merit, with 
        consideration given to financial need and the goal of promoting 
        the participation of individuals identified in section 33 or 34 
        of the Science and Engineering Equal Opportunities Act (42 
        U.S.C. 1885a or 1885b).
            (3) Service agreements.--To carry out the Program the 
        Secretary shall enter into contractual agreements with 
        individuals selected under paragraph (2) under which the 
        individuals agree to serve as full-time employees of the 
        Department, for the period described in subsection (f)(1), in 
        positions needed by the Department and for which the 
        individuals are qualified, in exchange for receiving a 
        scholarship.
    (b) Scholarship Eligibility.--In order to be eligible to 
participate in the Program, an individual must--
            (1) be enrolled or accepted for enrollment as a full-time 
        student at an institution of higher education in an academic 
        program or field of study described in the list made available 
        under subsection (d);
            (2) be a United States citizen; and
            (3) at the time of the initial scholarship award, not be a 
        Federal employee as defined in section 2105 of title 5 of the 
        United States Code.
    (c) Application Required.--An individual seeking a scholarship 
under this section shall submit an application to the Secretary at such 
time, in such manner, and containing such information, agreements, or 
assurances as the Secretary may require.
    (d) Eligible Academic Programs.--The Secretary shall make publicly 
available a list of academic programs and fields of study for which 
scholarships under the Program may be utilized, and shall update the 
list as necessary.
    (e) Scholarship Requirement.--
            (1) In general.--The Secretary may provide a scholarship 
        under the Program for an academic year if the individual 
        applying for the scholarship has submitted to the Secretary, as 
        part of the application required under subsection (c), a 
        proposed academic program leading to a degree in a program or 
        field of study on the list made available under subsection (d).
            (2) Duration of eligibility.--An individual may not receive 
        a scholarship under this section for more than 4 academic 
        years, unless the Secretary grants a waiver.
            (3) Scholarship amount.--The dollar amount of a scholarship 
        under this section for an academic year shall be determined 
        under regulations issued by the Secretary, but shall in no case 
        exceed the cost of attendance.
            (4) Authorized uses.--A scholarship provided under this 
        section may be expended for tuition, fees, and other authorized 
        expenses as established by the Secretary by regulation.
            (5) Contracts regarding direct payments to institutions.--
        The Secretary may enter into a contractual agreement with an 
        institution of higher education under which the amounts 
        provided for a scholarship under this section for tuition, 
        fees, and other authorized expenses are paid directly to the 
        institution with respect to which the scholarship is provided.
    (f) Period of Obligated Service.--
            (1) Duration of service.--The period of service for which 
        an individual shall be obligated to serve as an employee of the 
        Department is, except as provided in subsection (h)(2), 24 
        months for each academic year for which a scholarship under 
        this section is provided.
            (2) Schedule for service.--
                    (A) In general.--Except as provided in subparagraph 
                (B), obligated service under paragraph (1) shall begin 
                not later than 60 days after the individual obtains the 
                educational degree for which the scholarship was 
                provided.
                    (B) Deferral.--The Secretary may defer the 
                obligation of an individual to provide a period of 
                service under paragraph (1) if the Secretary determines 
                that such a deferral is appropriate. The Secretary 
                shall prescribe the terms and conditions under which a 
                service obligation may be deferred through regulation.
    (g) Penalties for Breach of Scholarship Agreement.--
            (1) Failure to complete academic training.--Scholarship 
        recipients who fail to maintain a high level of academic 
        standing, as defined by the Secretary by regulation, who are 
        dismissed from their educational institutions for disciplinary 
        reasons, or who voluntarily terminate academic training before 
        graduation from the educational program for which the 
        scholarship was awarded, shall be in breach of their 
        contractual agreement and, in lieu of any service obligation 
        arising under such agreement, shall be liable to the United 
        States for repayment not later than 1 year after the date of 
        default of all scholarship funds paid to them and to the 
        institution of higher education on their behalf under the 
        agreement, except as provided in subsection (h)(2). The 
        repayment period may be extended by the Secretary when 
        determined to be necessary, as established by regulation.
            (2) Failure to begin or complete the service obligation or 
        meet the terms and conditions of deferment.--A scholarship 
        recipient who, for any reason, fails to begin or complete a 
        service obligation under this section after completion of 
        academic training, or fails to comply with the terms and 
        conditions of deferment established by the Secretary pursuant 
        to subsection (f)(2)(B), shall be in breach of the contractual 
        agreement. When a recipient breaches an agreement for the 
        reasons stated in the preceding sentence, the recipient shall 
        be liable to the United States for an amount equal to--
                    (A) the total amount of scholarships received by 
                such individual under this section; plus
                    (B) the interest on the amounts of such awards 
                which would be payable if at the time the awards were 
                received they were loans bearing interest at the 
                maximum legal prevailing rate, as determined by the 
                Treasurer of the United States,
        multiplied by 3.
    (h) Waiver or Suspension of Obligation.--
            (1) Death of individual.--Any obligation of an individual 
        incurred under the Program (or a contractual agreement 
        thereunder) for service or payment shall be canceled upon the 
        death of the individual.
            (2) Impossibility or extreme hardship.--The Secretary shall 
        by regulation provide for the partial or total waiver or 
        suspension of any obligation of service or payment incurred by 
        an individual under the Program (or a contractual agreement 
        thereunder) whenever compliance by the individual is impossible 
        or would involve extreme hardship to the individual, or if 
        enforcement of such obligation with respect to the individual 
        would be contrary to the best interests of the Government.
    (i) Definitions.--In this section the following definitions apply:
            (1) Cost of attendance.--The term ``cost of attendance'' 
        has the meaning given that term in section 472 of the Higher 
        Education Act of 1965 (20 U.S.C. 1087ll).
            (2) Program.--The term ``Program'' means the Science and 
        Technology Scholarship Program established under this section.

SEC. 108. OFFICE OF SCIENTIFIC AND TECHNICAL INFORMATION.

    The Secretary shall maintain within the Department the Office of 
Scientific and Technical Information.

SEC. 109. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--In addition to amounts authorized to be 
appropriated under the 21st Century Nanotechnology Research and 
Development Act (15 U.S.C. 7501 et seq.) and the Department of Energy 
High-End Computing Revitalization Act of 2004 (15 U.S.C. 5541 et seq.), 
the following sums are authorized to be appropriated to the Secretary 
for the purposes of carrying out this title:
            (1) For fiscal year 2006, $3,785,000,000.
            (2) For fiscal year 2007, $4,153,000,000.
            (3) For fiscal year 2008, $4,628,000,000.
            (4) For fiscal year 2009, $5,300,000,000.
            (5) For fiscal year 2010, $5,800,000,000.
    (b) 2006 Allocations.--From amounts authorized under subsection 
(a)(1), the following sums are authorized for fiscal year 2006:
            (1) Systems biology.--For activities under section 102, 
        $100,000,000.
            (2) Scientific computing.--For activities under section 
        105, $252,000,000.
            (3) Fusion energy sciences.--For activities under section 
        106, excluding activities under subsection (c) of that section, 
        $335,000,000.
            (4) Scholarship.--For the scholarship program described in 
        section 107, $800,000.
            (5) Office of scientific and technical information.--For 
        activities under section 108, $7,000,000.
    (c) 2007 Allocations.--From amounts authorized under subsection 
(a)(2), the following sums are authorized for fiscal year 2007:
            (1) Systems biology.--For activities under section 102, 
        such sums as may be necessary.
            (2) Scientific computing.--For activities under section 
        105, $270,000,000.
            (3) Fusion energy sciences.--For activities under section 
        106, excluding activities under subsection (c) of that section, 
        $349,000,000.
            (4) Scholarship.--For the scholarship program described in 
        section 107, $1,600,000.
            (5) Office of scientific and technical information.--For 
        activities under section 108, $7,500,000.
    (d) 2008 Allocations.--From amounts authorized under subsection 
(a)(3), the following sums are authorized for fiscal year 2008:
            (1) Systems biology.--For activities under section 102, 
        such sums as may be necessary.
            (2) Scientific computing.--For activities under section 
        105, $350,000,000.
            (3) Fusion energy sciences.--For activities under section 
        106, excluding activities under subsection (c) of that section, 
        $362,000,000.
            (4) Scholarship.--For the scholarship program described in 
        section 107, $2,000,000.
            (5) Office of scientific and technical information.--For 
        activities under section 108, $8,000,000.
    (e) 2009 Allocations.--From amounts authorized under subsection 
(a)(4), the following sums are authorized for fiscal year 2009:
            (1) Systems biology.--For activities under section 102, 
        such sums as may be necessary.
            (2) Scientific computing.--For activities under section 
        105, $375,000,000.
            (3) Fusion energy sciences.--For activities under section 
        106, excluding activities under subsection (c) of that section, 
        $377,000,000.
            (4) Scholarship.--For the scholarship program described in 
        section 107, $2,000,000.
            (5) Office of scientific and technical information.--For 
        activities under section 108, $8,000,000.
    (f) 2010 Allocations.--From amounts authorized under subsection 
(a)(5), the following sums are authorized for fiscal year 2010:
            (1) Systems biology.--For activities under section 102, 
        such sums as may be necessary.
            (2) Scientific computing.--For activities under section 
        105, $400,000,000.
            (3) Fusion energy sciences.--For activities under section 
        106, excluding activities under subsection (c) of that section, 
        $393,000,000.
            (4) Scholarship.--For the scholarship program described in 
        section 107, $2,000,000.
            (5) Office of scientific and technical information.--For 
        activities under section 108, $8,500,000.
    (g) ITER Construction.--From amounts authorized under subsection 
(a) and in addition to amounts authorized under subsections (b)(3), 
(c)(3), (d)(3), (e)(3), and (f)(3), there are authorized to be 
appropriated to the Secretary such sums as may be necessary for ITER 
construction, consistent with the limitations of section 106(c).

            TITLE II--RESEARCH ADMINISTRATION AND OPERATIONS

SEC. 201. COST SHARING.

    (a) Research and Development.--Except as otherwise provided in this 
Act, for research and development programs carried out under this Act, 
the Secretary shall require a commitment from non-Federal sources of at 
least 20 percent of the cost of the project. The Secretary may reduce 
or eliminate the non-Federal requirement under this subsection if the 
Secretary determines that the research and development is of a basic or 
fundamental nature.
    (b) Demonstration and Commercial Application.--Except as otherwise 
provided in this Act, the Secretary shall require at least 50 percent 
of the costs related to any demonstration or commercial application 
activities under this Act 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 Act.
    (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.
    (d) Size of Non-Federal Share.--The Secretary may consider the 
amount of the non-Federal share in selecting projects under this Act.

SEC. 202. REPROGRAMMING.

    (a) Distribution Report.--Not later than 60 days after the date of 
enactment of an Act appropriating amounts authorized under this Act, 
the Secretary shall transmit to Congress a report explaining how such 
amounts will be distributed among the activities authorized by this 
Act.
    (b) Reprogramming Letter.--No amount authorized by this Act shall 
be obligated or expended for a purpose inconsistent with the 
appropriations Act appropriating such amount, the report accompanying 
such appropriations Act, or a distribution report transmitted under 
subsection (a) if such obligation or expenditure would change an 
individual amount, as represented in such an Act, report, or 
distribution report, by more than 2 percent or $2,000,000, whichever is 
smaller, unless the Secretary has transmitted to Congress a letter of 
explanation and a period of 30 days has elapsed after Congress receives 
the letter.
    (c) Computation.--The computation of the 30-day period described in 
subsection (b) shall exclude 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.

SEC. 203. MERIT-BASED COMPETITION.

    (a) Competitive Merit Review.--Awardees of funds authorized under 
this Act shall be selected through open competitions. Funds shall be 
competitively awarded 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 on the basis of criteria outlined by the 
Secretary in the solicitation of proposals.
    (b) Competition.--Competitive awards under this Act shall involve 
competitions open to all qualified entities within one or more of the 
following categories:
            (1) Institutions of higher education.
            (2) National Laboratories.
            (3) Nonprofit and for-profit private entities.
            (4) State and local governments.
            (5) Consortia of entities described in paragraphs (1) 
        through (4).
    (c) Congressional Notification.--The Secretary shall notify 
Congress within 30 days after awarding more than $500,000 through a 
competition described in subsection (b) that is limited to 1 of the 
categories described in paragraphs (1) through (4) of subsection (b).
    (d) Waivers.--The Secretary may waive the requirement under 
subsection (a) requiring competition if the Secretary considers it 
necessary to more quickly advance research, development, demonstration, 
or commercial application activities. The Secretary shall notify 
Congress within 30 days when a waiver is granted under this subsection. 
The Secretary may not delegate the waiver authority under this 
subsection for awards over $500,000.

SEC. 204. EXTERNAL TECHNICAL REVIEW OF DEPARTMENTAL PROGRAMS.

    (a) National Applied Energy Research and Development Advisory 
Committees.--
            (1) In general.--The Secretary shall establish one or more 
        advisory committees to review and advise the Department's 
        applied programs in the following areas:
                    (A) Energy efficiency.
                    (B) Renewable energy.
                    (C) Nuclear energy.
                    (D) Fossil energy.
            (2) Existing advisory committees.--The Secretary may 
        designate an existing advisory committee within the Department 
        to fulfill the responsibilities of an advisory committee under 
        this subsection.
    (b) Office of Science Advisory Committees.--
            (1) Use of existing committees.--Except as otherwise 
        provided under the Federal Advisory Committee Act, the 
        Secretary shall continue to use the scientific program advisory 
        committees chartered under the Federal Advisory Committee Act 
        (5 U.S.C. App.) by the Office of Science to oversee research 
        and development programs under that Office.
            (2) Report.--Before the Department issues any new guidance 
        regarding the membership for Office of Science scientific 
        program advisory committees, the Secretary shall transmit a 
        report to the Congress outlining the reasons for the proposed 
        changes, and 60 days must have elapsed after transmittal of the 
        report before the Department may implement those changes.
            (3) Science advisory committee.--
                    (A) Establishment.--There shall be a Science 
                Advisory Committee for the Office of Science that 
                includes the chairs of each of the advisory committees 
                described in paragraph (1).
                    (B) Responsibilities.--The Science Advisory 
                Committee shall--
                            (i) advise the Secretary on science issues;
                            (ii) advise the Secretary with respect to 
                        the well-being and management of the National 
                        Laboratories and Department research 
                        facilities;
                            (iii) advise the Secretary with respect to 
                        education and workforce training activities 
                        required for effective short-term and long-term 
                        basic and applied research activities of the 
                        Office of Science; and
                            (iv) advise the Secretary with respect to 
                        the well-being of the university research 
                        programs supported by the Office of Science.
    (c) Membership.--Each member of an advisory committee appointed 
under this section shall have significant scientific, technical, or 
other appropriate expertise. The membership of each committee shall 
represent a wide range of expertise, including at least one third with 
expertise from outside the disciplines covered by the program, and a 
diverse set of interests.
    (d) Meetings and Purposes.--Each advisory committee under this 
section shall meet at least semiannually to review and advise on the 
progress made by the respective research, development, demonstration, 
and commercial application program or programs. The advisory committee 
shall also review the measurable cost and performance-based goals for 
the applied programs, and the progress on meeting such goals.
    (e) Review and Assessment.--Not later than 6 months after the date 
of enactment of this Act, the Secretary shall enter into arrangements 
with the National Academy of Sciences to conduct reviews and 
assessments of the programs authorized by this Act, the measurable cost 
and performance-based goals for the applied programs, and the progress 
in meeting such goals. Such reviews and assessments shall be completed 
and reports containing the results of all such reviews and assessments 
transmitted to the Congress not later than 2 years after the date of 
enactment of this Act.

SEC. 205. COMPETITIVE AWARD OF MANAGEMENT CONTRACTS.

    None of the funds authorized to be appropriated to the Secretary by 
this Act may be used to award a management and operating contract for a 
National Laboratory (excluding those named in subparagraphs (G), (H), 
(N), (O) of section 2(6)), unless such contract is competitively 
awarded, or the Secretary grants, on a case-by-case basis, a waiver. 
The Secretary may not delegate the authority to grant such a waiver and 
shall submit to the Congress a report notifying it of the waiver, and 
setting forth the reasons for the waiver, at least 60 days prior to the 
date of the award of such contract.

SEC. 206. NATIONAL LABORATORY DESIGNATION.

    After the date of enactment of this Act the Secretary shall not 
designate a facility that is not referred to in section 2(6) as a 
National Laboratory.

SEC. 207. REPORT ON EQUAL EMPLOYMENT OPPORTUNITY PRACTICES.

    Not later than 12 months after the date of enactment of this Act, 
and biennially thereafter, the Secretary shall transmit to Congress a 
report on the equal employment opportunity practices at National 
Laboratories. Such report shall include--
            (1) a thorough review of each laboratory contractor's equal 
        employment opportunity policies, including promotion to 
        management and professional positions and pay raises;
            (2) a statistical report on complaints and their 
        disposition in the laboratories;
            (3) a description of how equal employment opportunity 
        practices at the laboratories are treated in the contract and 
        in calculating award fees for each contractor;
            (4) a summary of disciplinary actions and their disposition 
        by either the Department or the relevant contractors for each 
        laboratory;
            (5) a summary of outreach efforts to attract women and 
        minorities to the laboratories;
            (6) a summary of efforts to retain women and minorities in 
        the laboratories; and
            (7) a summary of collaboration efforts with the Office of 
        Federal Contract Compliance Programs to improve equal 
        employment opportunity practices at the laboratories.

SEC. 208. USER FACILITY BEST PRACTICES PLAN.

     The Secretary shall not designate any new or existing facility as 
a user facility until the Secretary, for that facility--
            (1) develops a plan to ensure that the facility will--
                    (A) have a skilled staff to support a wide range of 
                users;
                    (B) have a fair method for allocating time to users 
                that provides for input from facility management, user 
                representatives, and outside experts; and
                    (C) be operated in a safe and fiscally prudent 
                manner; and
            (2) transmits such plan to Congress and 60 days have 
        elapsed.

SEC. 209. SUPPORT FOR SCIENCE AND ENERGY INFRASTRUCTURE AND FACILITIES.

    (a) Strategy.--The Secretary shall develop and implement a strategy 
for infrastructure and facilities supported primarily from the Office 
of Science and the applied programs at each National Laboratory and 
Department research facility. 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) Requirement.--The Secretary shall prepare and transmit 
        to the Congress not later than June 1, 2007, a report 
        summarizing the strategies developed under subsection (a).
            (2) Contents.--For each National Laboratory and Department 
        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 10-year plan that demonstrates the 
                reconfiguration of its facilities and infrastructure to 
                meet its missions and to address its long-term 
                operational costs and return on investment;
                    (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. 210. COORDINATION PLAN.

    (a) In General.--The Secretary shall develop a coordination plan to 
improve coordination and collaboration in research, development, 
demonstration, and commercial application activities across Department 
organizational boundaries.
    (b) Plan Contents.--The plan shall describe--
            (1) how the Secretary will ensure that the applied programs 
        are coordinating their activities, including a description of 
        specific research questions that cross organizational 
        boundaries and of how the relevant applied programs are 
        coordinating their efforts to answer those questions, and how 
        such cross-cutting research questions will be identified in the 
        future;
            (2) how the Secretary will ensure that research that has 
        been supported by the Office of Science is being or will be 
        used by the applied programs, including a description of 
        specific Office of Science-supported research that is relevant 
        to the applied programs and of how the applied programs have 
        used or will use that research; and
            (3) a description of how the Secretary will ensure that the 
        research agenda of the Office of Science includes research 
        questions of concern to the applied programs, including a 
        description of specific research questions that the Office of 
        Science will address to assist the applied programs.
    (c) Plan Transmittal.--The Secretary shall transmit the 
coordination plan to Congress not later than 9 months after the date of 
enactment of this Act, and every 2 years thereafter shall transmit a 
revised coordination plan.
    (d) Conference.--Not less than 6 months after the date of enactment 
of this Act, the Secretary shall convene a conference of program 
managers from the Office of Science and the applied programs to review 
ideas and explore possibilities for effective cross-program 
collaboration. The Secretary also shall invite participation relevant 
Federal agencies and other programs in the Federal Government 
conducting relevant research, and other stakeholders as appropriate.

SEC. 211. AVAILABILITY OF FUNDS.

    Funds appropriated to the Secretary for activities authorized under 
this Act shall remain available for three years. Funds that are not 
obligated at the end of three years shall be returned to the Treasury.

                      TITLE III--ENERGY EFFICIENCY

            Subtitle A--Vehicles, Buildings, and Industries

SEC. 301. PROGRAMS.

    (a) In General.--The Secretary shall conduct programs of energy 
efficiency research, development, demonstration, and commercial 
application, including activities described in this subtitle. Such 
programs shall be focused on the following objectives:
            (1) Increasing the energy efficiency of vehicles, 
        buildings, and industrial processes.
            (2) Reducing the Nation's demand for energy, especially 
        energy from foreign sources.
            (3) Reducing the cost of energy and making the economy more 
        efficient and competitive.
            (4) Improving the Nation's energy security.
            (5) Reducing the environmental impact of energy-related 
        activities.
    (b) Goals.--
            (1) Initial goals.--In accordance with the performance plan 
        and report requirements in section 4 of the Government 
        Performance Results Act of 1993, the Secretary shall transmit 
        to the Congress, along with the President's annual budget 
        request for fiscal year 2007, a report containing outcome 
        measures with explicitly stated cost and performance baselines. 
        The measures shall specify energy efficiency performance goals, 
        with quantifiable 5-year cost and energy savings target levels, 
        for vehicles, buildings, and industries, and any other such 
        goals the Secretary considers appropriate.
            (2) Subsequent transmittals.--The Secretary shall transmit 
        to the Congress, along with the President's annual budget 
        request for each fiscal year after 2007, a report containing--
                    (A) a description, including quantitative analysis, 
                of progress in achieving performance goals transmitted 
                under paragraph (1), as compared to the baselines 
                transmitted under paragraph (1); and
                    (B) any amendments to such goals.
    (c) Public Input.--The Secretary shall consider advice from 
industry, universities, and other interested parties through seeking 
comments in the Federal Register and other means before transmitting 
each report under subsection (b).

SEC. 302. VEHICLES.

     The Secretary shall conduct a program of research, development, 
demonstration, and commercial application of advanced, cost-effective 
technologies to improve the energy efficiency and environmental 
performance of light-duty and heavy-duty vehicles, including--
            (1) hybrid and electric propulsion systems, including plug-
        in hybrid systems;
            (2) advanced engines, including combustion engines;
            (3) advanced materials, including high strength, 
        lightweight materials, such as nanostructured materials, 
        composites, multimaterial parts, carbon fibers, and materials 
        with high thermal conductivity;
            (4) technologies for reduced drag and rolling resistance;
            (5) whole-vehicle design optimization to reduce the weight 
        of component parts and thus increase the fuel economy of the 
        vehicle, including fiber optics to replace traditional wiring;
            (6) thermoelectric devices that capture waste heat and 
        convert thermal energy into electricity; and
            (7) advanced drivetrains.

SEC. 303. BUILDINGS.

    (a) Program.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application of cost-
effective technologies, for new construction and retrofit, to improve 
the energy efficiency and environmental performance of commercial, 
industrial, institutional, and residential buildings. The program shall 
use a whole-buildings approach, integrating work on elements 
including--
            (1) advanced controls, including occupancy sensors, 
        daylighting controls, wireless technologies, automated 
        responses to changes in the internal and external environment, 
        and real time delivery of information on building system and 
        component performance;
            (2) building envelope, including windows, roofing systems 
        and materials, and building-integrated photovoltaics;
            (3) building systems components, including--
                    (A) lighting, including the Next Generation 
                Lighting Initiative described in subsection (b);
                    (B) appliances, including advanced technologies, 
                such as stand-by load technologies, for office 
                equipment, food service equipment, and laundry 
                equipment; and
                    (C) heating, ventilation, and cooling systems, 
                including ground-source heat pumps and radiant heating; 
                and
            (4) onsite renewable energy generation.
    (b) Next Generation Lighting Initiative.--The program conducted 
under subsection (a)(3)(A) shall include a Next Generation Lighting 
Initiative to support research, development, demonstration, and 
commercial application activities related to advanced lighting 
technologies for both general white light illumination needs and 
specialized applications such as exit ramp and stairway illumination. 
Such activities shall be focused on advanced lighting technologies, 
including solid-state organic and inorganic technologies that, compared 
to current lighting technologies, deliver superior performance, are 
longer lasting, are more energy-efficient, are better matched to 
customer needs, have less environmental impact, and are cost-
competitive.
    (c) Energy Efficient Building Pilot Grant Program.--
            (1) In general.--Not later than 6 months after the date of 
        enactment of this Act, the Secretary shall establish a pilot 
        program to award grants to businesses and organizations for new 
        construction of energy efficient buildings, or major 
        renovations of buildings that will result in energy efficient 
        buildings, to demonstrate innovative energy efficiency 
        technologies, especially those sponsored by the Department.
            (2) Awards.--The Secretary shall award grants under this 
        subsection competitively to those applicants whose proposals--
                    (A) best demonstrate--
                            (i) likelihood to meet or exceed the design 
                        standards referred to in paragraph (7);
                            (ii) likelihood to maximize cost-effective 
                        energy efficiency opportunities; and
                            (iii) advanced energy efficiency 
                        technologies; and
                    (B) are least likely to be realized without Federal 
                assistance.
            (3) Amount of grants.--Grants under this subsection shall 
        be for up to 50 percent of design and energy modeling costs, 
        not to exceed $50,000 per building. No single grantee may be 
        eligible for more than 3 grants per year under this program.
            (4) Grant payments.--
                    (A) Initial payment.--The Secretary shall pay 50 
                percent of the total amount of the grant to grant 
                recipients upon selection.
                    (B) Remainder of payment.--The Secretary shall pay 
                the remaining 50 percent of the grant only after 
                independent certification of operational buildings for 
                compliance with the standards for energy efficient 
                buildings described in paragraph (7).
                    (C) Failure to comply.--The Secretary shall not 
                provide the remainder of the payment unless the 
                building is certified within 6 months after operation 
                of the completed building to meet the requirements 
                described in subparagraph (B), or in the case of major 
                renovations the building is certified within 6 months 
                of the completion of the renovations.
            (5) Report to congress.--Not later than 3 years after 
        awarding the first grant under this subsection, the Secretary 
        shall transmit to Congress a report containing--
                    (A) the total number and dollar amount of grants 
                awarded under this subsection; and
                    (B) an estimate of aggregate cost and energy 
                savings enabled by the pilot program under this 
                subsection.
            (6) Administrative expenses.--Administrative expenses for 
        the program under this subsection shall not exceed 10 percent 
        of appropriated funds.
            (7) Definition of energy efficient building.--For purposes 
        of this subsection, the term ``energy efficient building'' 
        means a building that is independently certified--
                    (A) to meet or exceed the applicable United States 
                Green Building Council's Leadership in Energy and 
                Environmental Design standards for a silver, gold, or 
                platinum rating; and
                    (B) to achieve a reduction in energy consumption 
                of--
                            (i) at least 25 percent for new 
                        construction, compared to the energy standards 
                        set by the Federal Building Code (10 CFR part 
                        434); and
                            (ii) at least 20 percent for major 
                        renovations, compared to energy consumption 
                        before renovations are begun.

SEC. 304. INDUSTRIES.

    (a) Program.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application of advanced 
technologies to improve the energy efficiency, environmental 
performance, and process efficiency of energy-intensive and waste-
intensive industries. Such program shall be focused on industries whose 
total annual energy consumption amounts to more than 1.0 percent of the 
total nationwide annual energy consumption, according to the most 
recent data available to the Department. Research and development 
efforts under this section shall give a higher priority to broad-
benefit efficiency technologies that have practical application across 
industry sectors.
    (b) Electric Motor Control Technology.--The program conducted under 
subsection (a) shall include research on, and development, 
demonstration, and commercial application of, advanced control devices 
to improve the energy efficiency of electric motors, including those 
used in industrial processes, heating, ventilation, and cooling.
    (c) Reauthorization of Steel and Aluminum Energy Conservation and 
Technology Competitiveness Act of 1988.--
            (1) Authorization of appropriations.--Section 9 of the 
        Steel and Aluminum Energy Conservation and Technology 
        Competitiveness Act of 1988 (15. U.S.C. 5108) is amended to 
        read as follows:

``SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to the Secretary to carry 
out this Act $20,000,000 for each of fiscal years 2006 through 2010.''.
            (2) Steel project priorities.--Section 4(c)(1) of the Steel 
        and Aluminum Energy Conservation and Technology Competitiveness 
        Act of 1988 (15 U.S.C. 5103(c)(1)) is amended--
                    (A) in subparagraph (H), by striking ``coatings for 
                sheet steels'' and inserting ``sheet and bar steels''; 
                and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(K) The development of technologies which reduce 
                greenhouse gas emissions.''.
            (3) Conforming amendments.--The Steel and Aluminum Energy 
        Conservation and Technology Competitiveness Act of 1988 is 
        further amended--
                    (A) by striking section 7 (15 U.S.C. 5106); and
                    (B) in section 4(b)--
                            (i) in the subsection heading, by inserting 
                        ``and Report'' after ``Management Plan'';
                            (ii) by striking ``Within 6 months after 
                        the date of enactment of this Act'' and 
                        inserting ``Not later than 6 months after the 
                        date of enactment of the Act enacting this 
                        sentence'';
                            (iii) by striking ``to expand the steel 
                        research and development initiative to include 
                        aluminum and''; and
                            (iv) by inserting ``, and shall transmit 
                        such plan to Congress'' after ``carry out the 
                        purposes of this Act''.

SEC. 305. DEMONSTRATION AND COMMERCIAL APPLICATION.

    (a) Appliances and Testing.--The Secretary shall conduct research 
and analysis to determine whether, given Department-sponsored and other 
advances in energy efficiency technologies, demonstration and 
commercial application of innovative, cost-effective energy savings and 
pollution reducing technologies could be used to improve appliances and 
test procedures used to measure appliance efficiency.
    (b) Building Energy Codes.--The Secretary shall, in coordination 
with government, nongovernment, and commercial partners, conduct 
research and analyses of the best cost-effective practices in the 
development and updating of building energy codes, including for 
manufactured housing. Analyses shall focus on how to encourage energy 
efficiency and adoption of newly developed energy production and use 
equipment.
    (c) Advanced Energy Technology Transfer Centers.--
            (1) Grants.--Not later than 18 months after the date of 
        enactment of this Act, the Secretary shall make grants to 
        nonprofit institutions, State and local governments, or 
        universities (or consortia thereof), to establish a 
        geographically dispersed network of Advanced Energy Technology 
        Transfer Centers, to be located in areas the Secretary 
        determines have the greatest need of the services of such 
        Centers.
            (2) Activities.--
                    (A) In general.--Each Center shall operate a 
                program to encourage demonstration and commercial 
                application of advanced energy methods and technologies 
                through education and outreach to building and 
                industrial professionals, and to other individuals and 
                organizations with an interest in efficient energy use.
                    (B) Advisory panel.--Each Center shall establish an 
                advisory panel to advise the Center on how best to 
                accomplish the activities under subparagraph (A).
            (3) Application.--A person seeking a grant under this 
        subsection shall submit to the Secretary an application in such 
        form and containing such information as the Secretary may 
        require. The Secretary may award a grant under this subsection 
        to an entity already in existence if the entity is otherwise 
        eligible under this subsection.
            (4) Selection criteria.--The Secretary shall award grants 
        under this subsection on the basis of the following criteria, 
        at a minimum:
                    (A) The ability of the applicant to carry out the 
                activities in paragraph (2).
                    (B) The extent to which the applicant will 
                coordinate the activities of the Center with other 
                entities, such as State and local governments, 
                utilities, and educational and research institutions.
            (5) Matching funds.--The Secretary shall require a non-
        Federal matching requirement of at least 50 percent of the 
        costs of establishing and operating each Center.
            (6) Advisory committee.--The Secretary shall establish an 
        advisory committee to advise the Secretary on the establishment 
        of Centers under this subsection. The advisory committee shall 
        be composed of individuals with expertise in the area of 
        advanced energy methods and technologies, including at least 1 
        representative from--
                    (A) State or local energy offices;
                    (B) energy professionals;
                    (C) trade or professional associations;
                    (D) architects, engineers, or construction 
                professionals;
                    (E) manufacturers;
                    (F) the research community; and
                    (G) nonprofit energy or environmental 
                organizations.
            (7) Definitions.--For purposes of this subsection:
                    (A) Advanced energy methods and technologies.--The 
                term ``advanced energy methods and technologies'' means 
                all methods and technologies that promote energy 
                efficiency and conservation, including distributed 
                generation technologies, and life-cycle analysis of 
                energy use.
                    (B) Center.--The term ``Center'' means an Advanced 
                Energy Technology Transfer Center established pursuant 
                to this subsection.
                    (C) Distributed generation.--The term ``distributed 
                generation'' means an electric power generation 
                facility that is designed to serve retail electric 
                consumers at or near the facility site.
    (d) Report.--Not later than 2 years after the date of enactment of 
this Act, and once every 3 years thereafter, the Secretary shall 
transmit to Congress a report on the results of research and analysis 
under this section. In calculating cost-effectiveness for purposes of 
such reports, the Secretary shall include, at a minimum, the avoided 
cost of additional energy production, savings to the economy from lower 
peak energy prices and reduced price volatility, and the public and 
private benefits of reduced pollution.

SEC. 306. SECONDARY ELECTRIC VEHICLE BATTERY USE PROGRAM.

    (a) Definitions.--For purposes of this section:
            (1) Associated equipment.--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.
            (2) Battery.--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.
    (b) Program.--The Secretary shall establish and conduct a research, 
development, demonstration, and commercial application program for the 
secondary use of batteries if the Secretary finds that there are 
sufficient numbers of such batteries to support the program. The 
program shall be--
            (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 
enactment of this Act, if the Secretary finds under subsection (b) that 
there are sufficient numbers of batteries to support the program, the 
Secretary shall solicit proposals to demonstrate the secondary use of 
batteries and associated equipment and supporting infrastructure in 
geographic locations throughout the United States. The Secretary may 
make additional solicitations for proposals if the Secretary determines 
that such solicitations are necessary to carry out this section.
    (d) Selection of Proposals.--
            (1) In general.--The Secretary shall, not later than 90 
        days after the closing date established by the Secretary for 
        receipt of proposals under subsection (c), select up to 5 
        proposals which may receive financial assistance under this 
        section, subject to the availability of appropriations.
            (2) Diversity; environmental effect.--In selecting 
        proposals, the Secretary shall consider diversity of battery 
        type, geographic and climatic diversity, and life-cycle 
        environmental effects of the approaches.
            (3) Limitation.--No 1 project selected under this section 
        shall receive more than 25 percent of the funds authorized for 
        the program under this section.
            (4) Optimization of federal resources.--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) Other criteria.--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;
            (2) the proposer provide at least 50 percent of the costs 
        associated with the proposal; and
            (3) the proposer provide to the Secretary such information 
        regarding the disposal of the batteries as the Secretary may 
        require to ensure that the proposer disposes of the batteries 
        in accordance with applicable law.

SEC. 307. DEFINITION OF COST-EFFECTIVE.

    For purposes of this subtitle, the term ``cost-effective'' means 
resulting in a simple payback of costs in 10 years or less.

SEC. 308. AUTHORIZATION OF APPROPRIATIONS.

    In addition to the sums authorized in the Steel and Aluminum Energy 
Conservation and Technology Competitiveness Act of 1988, as amended in 
section 304 of this Act, the following sums are authorized to be 
appropriated to the Secretary for the purposes of carrying out this 
subtitle:
            (1) For fiscal year 2006, $620,000,000, including--
                    (A) $200,000,000 for carrying out the vehicles 
                program under section 302;
                    (B) $100,000,000 for carrying out the buildings 
                program under section 303, of which $10,000,000 shall 
                be for the grant program under section 303(c);
                    (C) $100,000,000 for carrying out the industries 
                program under section 304(a);
                    (D) $2,000,000 for carrying out the electric motor 
                control technology program under section 304(b);
                    (E) $10,000,000 for carrying out demonstration and 
                commercial applications activities under section 305; 
                and
                    (F) $4,000,000 for carrying out the secondary 
                electric vehicle battery use program under section 306.
            (2) For fiscal year 2007, $700,000,000, including--
                    (A) $240,000,000 for carrying out the vehicles 
                program under section 302;
                    (B) $130,000,000 for carrying out the buildings 
                program under section 303, of which $10,000,000 shall 
                be for the grant program under section 303(c);
                    (C) $115,000,000 for carrying out the industries 
                program under section 304(a);
                    (D) $2,000,000 for carrying out the electric motor 
                control technology program under section 304(b);
                    (E) $10,000,000 for carrying out demonstration and 
                commercial applications activities under section 305; 
                and
                    (F) $7,000,000 for carrying out the secondary 
                electric vehicle battery use program under section 306.
            (3) For fiscal year 2008, $800,000,000, including--
                    (A) $270,000,000 for carrying out the vehicles 
                program under section 302;
                    (B) $160,000,000 for carrying out the buildings 
                program under section 303, of which $10,000,000 shall 
                be for the grant program under section 303(c);
                    (C) $140,000,000 for carrying out the industries 
                program under section 304(a);
                    (D) $2,000,000 for carrying out the electric motor 
                control technology program under section 304(b);
                    (E) $10,000,000 for carrying out demonstration and 
                commercial applications activities under section 305; 
                and
                    (F) $7,000,000 for carrying out the secondary 
                electric vehicle battery use program under section 306.
            (4) For fiscal year 2009, $925,000,000, including--
                    (A) $310,000,000 for carrying out the vehicles 
                program under section 302;
                    (B) $200,000,000 for carrying out the buildings 
                program under section 303, of which $10,000,000 shall 
                be for the grant program under section 303(c);
                    (C) $170,000,000 for carrying out the industries 
                program under section 304(a);
                    (D) $10,000,000 for carrying out demonstration and 
                commercial applications activities under section 305; 
                and
                    (E) $7,000,000 for carrying out the secondary 
                electric vehicle battery use program under section 306.
            (5) For fiscal year 2010, $1,000,000,000, including--
                    (A) $340,000,000 for carrying out the vehicles 
                program under section 302;
                    (B) $240,000,000 for carrying out the buildings 
                program under section 303, of which $10,000,000 shall 
                be for the grant program under section 303(c);
                    (C) $190,000,000 for carrying out the industries 
                program under section 304(a);
                    (D) $10,000,000 for carrying out demonstration and 
                commercial applications activities under section 305; 
                and
                    (E) $7,000,000 for carrying out the secondary 
                electric vehicle battery use program under section 306.

SEC. 309. LIMITATION ON USE OF FUNDS.

    None of the funds authorized to be appropriated under this subtitle 
may be used for--
            (1) the issuance and implementation of energy efficiency 
        regulations;
            (2) the Weatherization Assistance Program under part A of 
        title IV of the Energy Conservation and Production Act (42 
        U.S.C. 6861 et seq.);
            (3) the State Energy Program under part D of title III of 
        the Energy Policy and Conservation Act (42 U.S.C. 6321 et 
        seq.); or
            (4) the Federal Energy Management Program under part 3 of 
        title V of the National Energy Conservation Policy Act (42 
        U.S.C. 8251 et seq.).

       Subtitle B--Distributed Energy and Electric Energy Systems

SEC. 321. DISTRIBUTED ENERGY.

    (a) In General.--The Secretary shall conduct programs of 
distributed energy resources and systems reliability and efficiency 
research, development, demonstration, and commercial application to 
improve the reliability and efficiency of distributed energy resources 
and systems, including activities described in this subtitle. The 
programs shall address advanced energy technologies and systems and 
advanced grid reliability technologies. The programs shall include the 
integration of--
            (1) renewable energy resources;
            (2) fuel cells;
            (3) combined heat and power systems;
            (4) microturbines;
            (5) advanced natural gas turbines;
            (6) advanced internal combustion engine generators;
            (7) energy storage devices;
            (8) interconnection standards, protocols, and equipment;
            (9) ancillary equipment for dispatch and control; and
            (10) any other energy technologies, as appropriate.
    (b) 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--
            (1) the use of small-scale combined heat and power in 
        residential heating appliances; or
            (2) the use of excess power to operate other appliances 
        within the residence and supply excess generated power to the 
        power grid.
    (c) Goals.--
            (1) Initial goals.--In accordance with the performance plan 
        and report requirements in section 4 of the Government 
        Performance Results Act of 1993, the Secretary shall transmit 
        to the Congress, along with the President's annual budget 
        request for fiscal year 2007, a report containing outcome 
        measures with explicitly stated cost and performance baselines. 
        The measures shall specify performance goals, with quantifiable 
        5-year cost and energy savings target levels, for distributed 
        energy resources and systems, and any other such goals the 
        Secretary considers appropriate.
            (2) Subsequent transmittals.--The Secretary shall transmit 
        to the Congress, along with the President's annual budget 
        request for each fiscal year after 2007, a report containing--
                    (A) a description, including quantitative analysis, 
                of progress in achieving performance goals transmitted 
                under paragraph (1), as compared to the baselines 
                transmitted under paragraph (1); and
                    (B) any amendments to such goals.

SEC. 322. ELECTRICITY TRANSMISSION AND DISTRIBUTION AND ENERGY 
              ASSURANCE.

    (a) Program.--The Secretary shall conduct a research, development, 
demonstration, and commercial application program on advanced control 
devices to improve the energy efficiency and reliability of the 
electric transmission and distribution systems and to protect the 
Nation against severe energy supply disruptions. This program shall 
address, at a minimum--
            (1) advanced energy delivery and storage technologies, 
        materials, and systems, including new transmission 
        technologies, such as flexible alternating current transmission 
        systems, composite conductor materials, and other technologies 
        that enhance reliability, operational flexibility, or power-
        carrying capability;
            (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) Goals.--
            (1) Initial goals.--In accordance with the performance plan 
        and report requirements in section 4 of the Government 
        Performance Results Act of 1993, the Secretary shall transmit 
        to the Congress, along with the President's annual budget 
        request for fiscal year 2007, a report containing outcome 
        measures with explicitly stated cost and performance baselines. 
        The measures shall specify performance goals, with quantifiable 
        5-year cost and energy savings target levels, for electricity 
        transmission and distribution and energy assurance, and any 
        other such goals the Secretary considers appropriate.
            (2) Subsequent transmittals.--The Secretary shall transmit 
        to the Congress, along with the President's annual budget 
        request for each fiscal year after 2007, a report containing--
                    (A) a description, including quantitative analysis, 
                of progress in achieving performance goals transmitted 
                under paragraph (1), as compared to the baselines 
                transmitted under paragraph (1); and
                    (B) any amendments to such goals.

SEC. 323. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--The following sums are authorized to be 
appropriated to the Secretary for the purposes of carrying out this 
subtitle:
            (1) For fiscal year 2006, $210,000,000.
            (2) For fiscal year 2007, $230,000,000.
            (3) For fiscal year 2008, $250,000,000.
            (4) For fiscal year 2009, $270,000,000.
            (5) For fiscal year 2010, $290,000,000.
    (b) Micro-Cogeneration Energy Technology.--From the amounts 
authorized under subsection (a), $20,000,000 for each of fiscal years 
2006 and 2007 are authorized for activities under section 321(b).
    (c) Electricity Transmission and Distribution and Energy 
Assurance.--From the amounts authorized under subsection (a), the 
following sums are authorized for activities under section 322:
            (1) For fiscal year 2006, $120,000,000.
            (2) For fiscal year 2007, $130,000,000.
            (3) For fiscal year 2008, $155,000,000.
            (4) For fiscal year 2009, $165,000,000.
            (5) For fiscal year 2010, $175,000,000.

                       TITLE IV--RENEWABLE ENERGY

SEC. 401. FINDINGS.

    Congress makes the following findings:
            (1) Renewable energy is a growth industry around the world. 
        However, the United States has not been investing as heavily as 
        other countries, and is losing market share.
            (2) Since 1996, the United States has lost significant 
        market share in the solar industry, dropping from 44 percent of 
        the world market to 13 percent in 2003.
            (3) In 2003, Japan spent more than $200,000,000 on solar 
        research, development, demonstration, and commercial 
        application and other incentives, and Germany provided more 
        than $750,000,000 in low cost financing for solar photovoltaic 
        projects. This compares to United States Government spending of 
        $139,000,000 in 2003 for research, development, demonstration, 
        and commercial application and other incentives.
            (4) Germany and Japan each had domestic photovoltaic 
        industries that employed more than 10,000 people in 2003, while 
        in the same year the United States photovoltaics industry 
        employed only 2,000 people.
            (5) The United States is becoming increasingly dependent on 
        imported energy.
            (6) The high cost of fossil fuels is hurting the United 
        States economy.
            (7) Small reductions in peak demand can result in very 
        large reductions in price, according to energy market experts.
            (8) Although the United States has only 2 percent of the 
        world's oil reserves and 3 percent of the world's natural gas 
        reserves, our Nation's renewable energy resources are vast and 
        largely untapped.
            (9) Renewable energy can reduce the demand for imported 
        energy, reducing costs and decreasing the variability of energy 
        prices.
            (10) By using domestic renewable energy resources, the 
        United States can reduce the amount of money sent into unstable 
        regions of the world and keep it in the United States.
            (11) By supporting renewable energy research and 
        development, and funding demonstration and commercial 
        application programs for renewable energy, the United States 
        can create an export industry and improve the balance of trade.
            (12) Renewable energy can significantly reduce the 
        environmental impacts of energy production.

SEC. 402. DEFINITIONS.

    For purposes of this title:
            (1) Biobased product.--The term ``biobased product'' means 
        a product determined by the Secretary to be a commercial or 
        industrial product (other than food or feed) that is--
                    (A) composed, in whole or in significant part, of--
                            (i) biological products;
                            (ii) renewable domestic agricultural 
                        materials (including plant, animal, and marine 
                        materials); or
                            (iii) forestry materials; and
                    (B) produced in connection with the conversion of 
                biomass to energy or fuel.
            (2) Cellulosic biomass.--The term ``cellulosic biomass'' 
        means a crop containing lignocellulose or hemicellulose, 
        including barley grain, grapeseed, forest thinnings, rice bran, 
        rice hulls, rice straw, soybean matter, sugarcane bagasse, and 
        any crop grown specifically for the purpose of producing 
        cellulosic feedstocks.

SEC. 403. PROGRAMS.

    (a) In General.--The Secretary shall conduct programs of renewable 
energy research, development, demonstration, and commercial 
application, including activities described in this title. Such 
programs shall be focused on the following objectives:
            (1) Increasing the conversion efficiency of all forms of 
        renewable energy through improved technologies.
            (2) Decreasing the cost of renewable energy generation and 
        delivery.
            (3) Promoting the diversity of the energy supply.
            (4) Decreasing the Nation's dependence on foreign energy 
        supplies.
            (5) Improving United States energy security.
            (6) Decreasing the environmental impact of energy-related 
        activities.
            (7) Increasing the export of renewable generation equipment 
        from the United States.
    (b) Goals.--
            (1) Initial goals.--In accordance with the performance plan 
        and report requirements in section 4 of the Government 
        Performance Results Act of 1993, the Secretary shall transmit 
        to the Congress, along with the President's annual budget 
        request for fiscal year 2007, a report containing outcome 
        measures with explicitly stated cost and performance baselines. 
        The measures shall specify renewable energy performance goals, 
        with quantifiable 5-year cost and energy savings target levels, 
        for wind power, photovoltaics, solar thermal systems (including 
        concentrating and solar hot water), geothermal energy, biomass-
        based systems, biofuels, and hydropower, and any other such 
        goals the Secretary considers appropriate.
            (2) Subsequent transmittals.--The Secretary shall transmit 
        to the Congress, along with the President's annual budget 
        request for each fiscal year after 2007, a report containing--
                    (A) a description, including quantitative analysis, 
                of progress in achieving performance goals transmitted 
                under paragraph (1), as compared to the baselines 
                transmitted under paragraph (1); and
                    (B) any amendments to such goals.
    (c) Public Input.--The Secretary shall consider advice from 
industry, universities, and other interested parties through seeking 
comments in the Federal Register and other means before transmitting 
each report under subsection (b).

SEC. 404. SOLAR.

    (a) Program.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application for solar 
energy, including--
            (1) photovoltaics;
            (2) solar hot water and solar space heating; and
            (3) concentrating solar power.
    (b) Building Integration.--For photovoltaics, solar hot water, and 
space heating, the Secretary shall conduct research, development, 
demonstration, and commercial application to support the development of 
products that can be easily integrated into new and existing buildings.
    (c) Manufacture.--The Secretary shall conduct research, 
development, demonstration, and commercial application of manufacturing 
techniques that can produce low-cost, high-quality solar systems.

SEC. 405. BIOENERGY PROGRAMS.

    (a) Program.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application for cellulosic 
biomass, including--
            (1) biomass conversion to heat and electricity;
            (2) biomass conversion to liquid fuels;
            (3) biobased products;
            (4) integrated biorefineries that may produce heat, 
        electricity, liquid fuels, and biobased products;
            (5) cross-cutting activities on feedstocks and enzymes; and
            (6) life-cycle economic analysis.
    (b) Biofuels and Biobased Products.--The objectives of the biofuels 
and biobased products programs under paragraphs (2), (3), and (4) of 
subsection (a), and of the biorefinery demonstration program under 
subsection (c), shall be to develop, in partnership with industry--
            (1) advanced biochemical and thermochemical conversion 
        technologies capable of making high-value biobased chemical 
        feedstocks and products, to substitute for petroleum-based 
        feedstocks and products, biofuels that are price-competitive 
        with gasoline or diesel in either internal combustion engines 
        or fuel cell-powered vehicles, and biobased products from a 
        variety of feedstocks, including grains, cellulosic biomass, 
        and agricultural byproducts; and
            (2) advanced biotechnology processes capable of making 
        biofuels and biobased products, with emphasis on development of 
        biorefinery technologies, including enzyme-based processing 
        technologies.
    (c) Biomass Integrated Refinery Demonstration.--
            (1) In general.--The Secretary shall conduct a program to 
        demonstrate the commercial application of at least 5 integrated 
        biorefineries. The Secretary shall ensure geographical 
        distribution of biorefinery demonstrations under this 
        subsection. The Secretary shall not provide more than 
        $100,000,000 under this subsection for any single biorefinery 
        demonstration. The Secretary shall award the biorefinery 
        demonstrations so as to encourage--
                    (A) the demonstration of a wide variety of 
                cellulosic biomass feedstocks;
                    (B) the commercial application of biomass 
                technologies for a variety of uses, including--
                            (i) liquid transportation fuels;
                            (ii) high-value biobased chemicals;
                            (iii) substitutes for petroleum-based 
                        feedstocks and products; and
                            (iv) energy in the form of electricity or 
                        useful heat; and
                    (C) the demonstration of the collection and 
                treatment of a variety of biomass feedstocks.
            (2) Proposals.--Not later than 6 months after the date of 
        enactment of this Act, the Secretary shall solicit proposals 
        for demonstration of advanced biorefineries. The Secretary 
        shall select only proposals that--
                    (A) demonstrate that the project will be able to 
                operate profitably without direct Federal subsidy after 
                initial construction costs are paid; and
                    (B) enable the biorefinery to be easily replicated.
    (d) Grants.--Of the funds authorized to be appropriated for 
activities authorized under this section, 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.

SEC. 406. WIND.

    (a) Program.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application for wind energy, 
including--
            (1) low speed wind energy;
            (2) offshore wind energy;
            (3) testing and verification; and
            (4) distributed wind energy generation.
    (b) Facility.--The Secretary shall construct and operate a research 
and testing facility capable of testing the largest wind turbines that 
are expected to be manufactured in the next 15 years. The Secretary 
shall consider the need for testing offshore turbine designs in siting 
the facility. All private users of the facility shall be required to 
pay the Department all costs associated with their use of the facility, 
including capital costs prorated at normal business amortization rates.
    (c) Regional Field Verification Program.--Of the funds authorized 
to be appropriated for activities authorized under this section, not 
less than $4,000,000 for each fiscal year shall be made available for 
the Regional Field Verification Program of the Department.

SEC. 407. GEOTHERMAL.

    The Secretary shall conduct a program of research, development, 
demonstration, and commercial application for geothermal energy. The 
program shall focus on developing improved technologies for reducing 
the costs of geothermal energy installations, including technologies 
for--
            (1) improving detection of geothermal resources;
            (2) decreasing drilling costs;
            (3) decreasing maintenance costs through improved 
        materials;
            (4) increasing the potential for other revenue sources, 
        such as mineral production; and
            (5) increasing the understanding of reservoir life cycle 
        and management.

SEC. 408. PHOTOVOLTAIC DEMONSTRATION PROGRAM.

    (a) In General.--The Secretary shall establish a program of grants 
to States to demonstrate advanced photovoltaic technology.
    (b) Requirements.--(1) To receive funding under the program under 
this section, a State must submit a proposal that demonstrates, to the 
satisfaction of the Secretary, that the State will meet the 
requirements of subsection (f).
    (2) If a State has received funding under this section for the 
preceding year, the State must demonstrate, to the satisfaction of the 
Secretary, that it complied with the requirements of subsection (f) in 
carrying out the program during that preceding year, and that it will 
do so in the future.
    (3) Except as provided in subsection (c), each State submitting a 
qualifying proposal shall receive funding under the program based on 
the proportion of United States population in the State according to 
the 2000 census. In each fiscal year, the portion of funds attributable 
under this paragraph to States that have not submitted qualifying 
proposals in the time and manner specified by the Secretary shall be 
distributed pro rata to the States that have submitted qualifying 
proposals in the specified time and manner.
    (c) Competition.--If more than $80,000,000 is available for the 
program under this section for any fiscal year, the Secretary shall 
allocate 75 percent of the funds available according to subsection (b), 
and shall award the remaining 25 percent on a competitive basis to the 
States with the proposals the Secretary considers most likely to 
encourage the widespread adoption of photovoltaic technologies.
    (d) Proposals.--Not later than 6 months after the date of enactment 
of this Act, and in each subsequent fiscal year for the life of the 
program, the Secretary shall solicit proposals from the States to 
participate in the program under this section.
    (e) Competitive Criteria.--In awarding funds in a competitive 
allocation under subsection (c), the Secretary shall consider--
            (1) the likelihood of a proposal to encourage the 
        demonstration of, or lower the costs of, advanced photovoltaic 
        technologies; and
            (2) the extent to which a proposal is likely to--
                    (A) maximize the amount of photovoltaics 
                demonstrated;
                    (B) maximize the proportion of non-Federal cost 
                share; and
                    (C) limit State administrative costs.
    (f) State Program.--A program operated by a State with funding 
under this section shall provide competitive awards for the 
demonstration of advanced photovoltaic technologies. Each State program 
shall--
            (1) require a contribution of at least 60 percent per award 
        from non-Federal sources, which may include any combination of 
        State, local, and private funds, except that at least 10 
        percent of the funding must be supplied by the State;
            (2) limit awards for any single project to a maximum of 
        $1,000,000;
            (3) prohibit any nongovernmental recipient from receiving 
        more than $1,000,000 per year;
            (4) endeavor to fund recipients in the commercial, 
        industrial, institutional, governmental, and residential 
        sectors;
            (5) limit State administrative costs to no more than 10 
        percent of the grant;
            (6) report annually to the Department on--
                    (A) the amount of funds disbursed;
                    (B) the amount of photovoltaics purchased; and
                    (C) the results of the monitoring under paragraph 
                (7);
            (7) provide for measurement and verification of the output 
        of a representative sample of the photovoltaics systems 
        demonstrated throughout the average working life of the 
        systems, or at least 20 years; and
            (8) require that applicant buildings must have received an 
        independent energy efficiency audit during the 6-month period 
        preceding the filing of the application.
    (g) Unexpended Funds.--If a State fails to expend any funds 
received under subsection (b) or (c) within 3 years of receipt, such 
remaining funds shall be returned to the Treasury.
    (h) Reports.--The Secretary shall report to Congress 5 years after 
funds are first distributed to the States under this section--
            (1) the amount of photovoltaics demonstrated;
            (2) the number of projects undertaken;
            (3) the administrative costs of the program;
            (4) the amount of funds that each State has not received 
        because of a failure to submit a qualifying proposal, as 
        described in subsection (b)(3);
            (5) the results of the monitoring under subsection (f)(7); 
        and
            (6) the total amount of funds distributed, including a 
        breakdown by State.

SEC. 409. ADDITIONAL PROGRAMS.

    (a) In General.--The Secretary may conduct research, development, 
demonstration, and commercial application programs of--
            (1) ocean energy, including wave energy;
            (2) kinetic hydro turbines; and
            (3) the combined use of renewable energy technologies with 
        one another and with other energy technologies.
    (b) Marine Renewable Energy Study.--
            (1) Study.--The Secretary shall enter into an arrangement 
        with the National Academy of Sciences to conduct a study on--
                    (A) the feasibility of various methods of renewable 
                generation of energy from the ocean, including energy 
                from waves, tides, currents, and thermal gradients; and
                    (B) the research, development, demonstration, and 
                commercial application activities required to make 
                marine renewable energy generation competitive with 
                other forms of electricity generation.
            (2) Transmittal.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall transmit the study 
        to Congress along with the Secretary's recommendations for 
        implementing the results of the study.

SEC. 410. ANALYSIS AND EVALUATION.

    (a) In General.--The Secretary shall conduct analysis and 
evaluation in support of the renewable energy programs under this 
title. These activities shall be used to guide budget and program 
decisions, and shall include--
            (1) economic and technical analysis of renewable energy 
        potential, including resource assessment;
            (2) analysis of past program performance, both in terms of 
        technical advances and in market introduction of renewable 
        energy; and
            (3) any other analysis or evaluation that the Secretary 
        considers appropriate.
    (b) Funding.--The Secretary may designate up to 1 percent of the 
funds appropriated for carrying out this title for analysis and 
evaluation activities under this section.

SEC. 411. AUTHORIZATION OF APPROPRIATIONS.

    The following sums are authorized to be appropriated to the 
Secretary for the purposes of carrying out this title:
            (1) For fiscal year 2006, $465,000,000, of which--
                    (A) $100,000,000 shall be for carrying out the 
                solar program under section 404;
                    (B) $200,000,000 shall be for carrying out the 
                bioenergy program under section 405, including 
                $100,000,000 for the biorefinery demonstration program 
                under section 405(c);
                    (C) $55,000,000 shall be for carrying out the wind 
                program under section 406, including $10,000,000 for 
                the facility described in section 406(b);
                    (D) $30,000,000 shall be for carrying out the 
                geothermal program under section 407; and
                    (E) $50,000,000 shall be for carrying out the 
                photovoltaic demonstration program under section 408.
            (2) For fiscal year 2007, $605,000,000, of which--
                    (A) $140,000,000 shall be for carrying out the 
                solar program under section 404;
                    (B) $245,000,000 shall be for carrying out the 
                bioenergy program under section 405, including 
                $125,000,000 for the biorefinery demonstration program 
                under section 405(c);
                    (C) $60,000,000 shall be for carrying out the wind 
                program under section 406, including $15,000,000 for 
                the facility described in section 406(b);
                    (D) $30,000,000 shall be for carrying out the 
                geothermal program under section 407; and
                    (E) $100,000,000 shall be for carrying out the 
                photovoltaic demonstration program under section 408.
            (3) For fiscal year 2008, $775,000,000, of which--
                    (A) $200,000,000 shall be for carrying out the 
                solar program under section 404;
                    (B) $310,000,000 shall be for carrying out the 
                bioenergy program under section 405, including 
                $150,000,000 for the biorefinery demonstration program 
                under section 405(c);
                    (C) $65,000,000 shall be for carrying out the wind 
                program under section 406, including $10,000,000 for 
                the facility described in section 406(b);
                    (D) $30,000,000 shall be for carrying out the 
                geothermal program under section 407; and
                    (E) $150,000,000 shall be for carrying out the 
                photovoltaic demonstration program under section 408.
            (4) For fiscal year 2009, $940,000,000, of which--
                    (A) $250,000,000 shall be for carrying out the 
                solar program under section 404;
                    (B) $355,000,000 shall be for carrying out the 
                bioenergy program under section 405, including 
                $175,000,000 for the biorefinery demonstration program 
                under section 405(c);
                    (C) $65,000,000 shall be for carrying out the wind 
                program under section 406, including $5,000,000 for the 
                facility described in section 406(b);
                    (D) $30,000,000 shall be for carrying out the 
                geothermal program under section 407; and
                    (E) $200,000,000 shall be for carrying out the 
                photovoltaic demonstration program under section 408.
            (5) For fiscal year 2010, $1,125,000,000, of which--
                    (A) $300,000,000 shall be for carrying out the 
                solar program under section 404;
                    (B) $400,000,000 shall be for carrying out the 
                bioenergy program under section 405, including 
                $200,000,000 for the biorefinery demonstration program 
                under section 405(c);
                    (C) $65,000,000 shall be for carrying out the wind 
                program under section 406, including $1,000,000 for the 
                facility described in section 406(b);
                    (D) $30,000,000 shall be for carrying out the 
                geothermal program under section 407; and
                    (E) $300,000,000 shall be for carrying out the 
                photovoltaic demonstration program under section 408.

                    TITLE V--NUCLEAR ENERGY PROGRAMS

SEC. 501. DEFINITION.

    In this title, the term ``junior faculty'' means a faculty member 
who was awarded a doctorate less than 10 years before receipt of an 
award from the grant program described in section 512(b)(2).

SEC. 502. PROGRAMS.

    (a) In General.--The Secretary shall conduct programs of civilian 
nuclear energy research, development, demonstration, and commercial 
application, including activities described in this title. Programs 
under this title shall be focused on--
            (1) enhancing nuclear power's viability as part of the 
        United States energy portfolio;
            (2) providing the technical means to reduce the likelihood 
        of nuclear proliferation;
            (3) maintaining a cadre of nuclear scientists and 
        engineers;
            (4) maintaining National Laboratory and university nuclear 
        programs, including their infrastructure;
            (5) supporting both individual researchers and 
        multidisciplinary teams of researchers to pioneer new 
        approaches in nuclear energy, science, and technology;
            (6) developing, planning, constructing, acquiring, and 
        operating special equipment and facilities for the use of 
        researchers;
            (7) supporting technology transfer and other appropriate 
        activities to assist the nuclear energy industry, and other 
        users of nuclear science and engineering, including activities 
        addressing reliability, availability, productivity, component 
        aging, safety, and security of nuclear power plants; and
            (8) reducing the environmental impact of nuclear energy-
        related activities.
    (b) Goals.--
            (1) Initial goals.--In accordance with the performance plan 
        and report requirements in section 4 of the Government 
        Performance Results Act of 1993, the Secretary shall transmit 
        to the Congress, along with the President's annual budget 
        request for fiscal year 2007, a report containing outcome 
        measures with explicitly stated cost and performance baselines. 
        The measures shall specify performance goals, with quantifiable 
        5-year cost improvement and reliability, availability, 
        productivity, and component aging target levels for a wide 
        range of nuclear energy technologies, and any other such goals 
        the Secretary considers appropriate.
            (2) Subsequent transmittals.--The Secretary shall transmit 
        to the Congress, along with the President's annual budget 
        request for each fiscal year after 2007, a report containing--
                    (A) a description, including quantitative analysis, 
                of progress in achieving performance goals transmitted 
                under paragraph (1), as compared to the baselines 
                transmitted under paragraph (1); and
                    (B) any amendments to such goals.
    (c) Public Input.--The Secretary shall consider advice from 
industry, universities, and other interested parties through seeking 
comments in the Federal Register and other means before transmitting 
each report under subsection (b).

              Subtitle A--Nuclear Energy Research Programs

SEC. 511. ADVANCED FUEL RECYCLING PROGRAM.

    (a) In General.--The Secretary shall conduct an advanced fuel 
recycling technology research, development, demonstration, and 
commercial application program to evaluate fuel recycling or 
transmutation technologies which are proliferation-resistant and 
minimize environmental and 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 advanced reactor 
concepts. The program shall be subject to annual review by the 
Secretary's Nuclear Energy Research Advisory Committee or other 
independent entity, as appropriate.
    (b) International Cooperation.--The Secretary shall seek 
opportunities to engage international partners with expertise in 
advanced fuel recycling technologies where such partnerships may help 
achieve program goals.

SEC. 512. UNIVERSITY NUCLEAR SCIENCE AND ENGINEERING SUPPORT.

    (a) In General.--The Secretary shall conduct a program to invest in 
human resources and infrastructure in the nuclear sciences and related 
fields, including health physics, nuclear engineering, and 
radiochemistry, consistent with Departmental missions related to 
civilian nuclear research, development, demonstration, and commercial 
application.
    (b) Requirements.--In carrying out the program under this section, 
the Secretary shall--
            (1) conduct a graduate and undergraduate fellowship program 
        to attract new and talented students, which may include 
        fellowships for students to spend time at National Laboratories 
        in the areas of nuclear science, engineering, and health 
        physics with a member of the National Laboratory staff acting 
        as a mentor;
            (2) conduct a junior faculty research initiation grant 
        program to assist universities in recruiting and retaining new 
        faculty in the nuclear sciences and engineering by awarding 
        grants to junior faculty for research on issues related to 
        nuclear energy engineering and science;
            (3) support fundamental nuclear sciences, engineering, and 
        health physics research through a nuclear engineering education 
        and research program;
            (4) encourage collaborative nuclear research among 
        industry, National Laboratories, and universities; and
            (5) support communication and outreach related to nuclear 
        science, engineering, and health physics.
    (c) Strengthening University Research and Training Reactors and 
Associated Infrastructure.--In carrying out the program under this 
section, the Secretary may support--
            (1) converting research reactors from high-enrichment fuels 
        to low-enrichment fuels and upgrading operational 
        instrumentation;
            (2) consortia of universities to broaden access to 
        university research reactors;
            (3) student training programs, in collaboration with the 
        United States nuclear industry, in relicensing and upgrading 
        reactors, including through the provision of technical 
        assistance; and
            (4) reactor improvements as part of a focused effort that 
        emphasizes research, training, and education, including through 
        the Innovations in Nuclear Infrastructure and Education Program 
        or any similar program.
    (d) Operations and Maintenance.--Funding for a project provided 
under this section may be used for a portion of the operating and 
maintenance costs of a research reactor at a university used in the 
project.

SEC. 513. UNIVERSITY-NATIONAL LABORATORY INTERACTIONS.

    The Secretary shall conduct--
            (1) a fellowship program for professors at universities to 
        spend sabbaticals at National Laboratories in the areas of 
        nuclear science and technology; and
            (2) a visiting scientist program in which National 
        Laboratory staff can spend time in academic nuclear science and 
        engineering departments.

SEC. 514. 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) the expertise and capabilities of industry, 
        universities, and National Laboratories in evaluation of 
        advanced nuclear fuel cycles and fuels testing;
            (2) 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) university and industry participation.

SEC. 515. 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, development, demonstration, and commercial application 
necessary to make an informed technical decision about the most 
promising candidates for the eventual commercial application of 
advanced fission reactor technology for the generation of electricity. 
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.

SEC. 516. CIVILIAN INFRASTRUCTURE AND FACILITIES.

    The Secretary shall operate and maintain infrastructure and 
facilities to support the nuclear energy research, development, 
demonstration, and commercial application programs, including 
radiological facilities management, isotope production, and facilities 
management.

SEC. 517. NUCLEAR ENERGY RESEARCH AND DEVELOPMENT INFRASTRUCTURE PLAN.

    In carrying out section 209, the Secretary shall--
            (1) develop an inventory of nuclear science and engineering 
        facilities, equipment, expertise, and other assets at all of 
        the National Laboratories;
            (2) develop a prioritized list of nuclear science and 
        engineering plant and equipment improvements needed at each of 
        the National Laboratories;
            (3) consider the available facilities and expertise at all 
        National Laboratories and emphasize investments which 
        complement rather than duplicate capabilities; and
            (4) develop a timeline and a proposed budget for the 
        completion of deferred maintenance on plant and equipment,
with the goal of ensuring that Department programs under this title 
will be generally recognized to be among the best in the world.

SEC. 518. IDAHO NATIONAL LABORATORY FACILITIES PLAN.

    (a) Plan.--The Secretary shall develop a comprehensive plan for the 
facilities at the Idaho National Laboratory, especially taking into 
account the resources available at other National Laboratories. In 
developing the plan, the Secretary shall--
            (1) evaluate the facilities planning processes utilized by 
        other physical science and engineering research and development 
        institutions, both in the United States and abroad, that are 
        generally recognized as being among the best in the world, and 
        consider how those processes might be adapted toward developing 
        such facilities plan;
            (2) avoid duplicating, moving, or transferring nuclear 
        science and engineering facilities, equipment, expertise, and 
        other assets that currently exist at other National 
        Laboratories;
            (3) consider the establishment of a national transuranic 
        analytic chemistry laboratory as a user facility at the Idaho 
        National Laboratory;
            (4) include a plan to develop, if feasible, the Advanced 
        Test Reactor and Test Reactor Area into a user facility that is 
        more readily accessible to academic and industrial researchers;
            (5) consider the establishment of a fast neutron source as 
        a user facility;
            (6) consider the establishment of new ``hot cells'' and the 
        configuration of ``hot cells'' most likely to advance research, 
        development, demonstration, and commercial application in 
        nuclear science and engineering, especially in the context of 
        the condition and availability of these facilities elsewhere in 
        the National Laboratories; and
            (7) include a timeline and a proposed budget for the 
        completion of deferred maintenance on plant and equipment.
    (b) Transmittal to Congress.--Not later than one year after the 
date of enactment of this Act, the Secretary shall transmit such plan 
to Congress.

SEC. 519. AUTHORIZATION OF APPROPRIATIONS.

    (a) Program Authorization.--The following sums are authorized to be 
appropriated to the Secretary for the purposes of carrying out this 
subtitle:
            (1) $407,000,000 for fiscal year 2006.
            (2) $427,000,000 for fiscal year 2007.
            (3) $449,000,000 for fiscal year 2008.
            (4) $471,000,000 for fiscal year 2009.
            (5) $495,000,000 for fiscal year 2010.
    (b) University Support.--Of the funds authorized under subsection 
(a), the following sums are authorized to be appropriated to carry out 
section 512:
            (1) $35,200,000 for fiscal year 2006.
            (2) $44,350,000 for fiscal year 2007.
            (3) $49,200,000 for fiscal year 2008.
            (4) $55,000,000 for fiscal year 2009.
            (5) $60,000,000 for fiscal year 2010.

           Subtitle B--Next Generation Nuclear Plant Program

SEC. 531. DEFINITIONS.

    For purposes of this subtitle:
            (1) Construction.--The term ``construction'' means the 
        physical construction of the demonstration plant, and the 
        physical construction, purchase, or manufacture of equipment or 
        components that are specifically designed for the demonstration 
        plant, but does not mean the design of the facility, equipment, 
        or components.
            (2) Demonstration plant.--The term ``demonstration plant'' 
        means an advanced fission reactor power plant constructed and 
        operated in accordance with this subtitle.
            (3) Operation.--The term ``operation'' means the operation 
        of the demonstration plant, including general maintenance and 
        provision of power, heating and cooling, and other building 
        services that are specifically for the demonstration plant, but 
        does not mean operations that support other activities 
        colocated with the demonstration plant.

SEC. 532. NEXT GENERATION NUCLEAR POWER PLANT.

    (a) In General.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application of advanced 
nuclear fission reactor technology. The objective of this program shall 
be to demonstrate the technical and economic feasibility of an advanced 
nuclear fission reactor power plant design for the commercial 
production of electricity.
    (b) Research and Development.--The program shall include research, 
development, design, planning, and all other necessary activities to 
support the construction and operation of the demonstration plant.
    (c) Subsystem Demonstrations.--The Secretary shall support 
demonstration of enabling technologies and subsystems and other 
research, development, demonstration, and commercial application 
activities necessary to support the activities in this subtitle.
    (d) Construction and Operation.--The program shall culminate in the 
construction and operation of the demonstration plant based on a design 
selected by the Secretary in accordance with procedures described in 
the plan required by section 534(c). The demonstration plant shall be 
located and constructed within the United States and shall be 
operational, and capable of demonstrating the commercial production of 
electricity, by December 31, 2015.
    (e) Limitation.--No funds shall be expended for the construction or 
operation of the demonstration plant until 90 days have elapsed after 
the transmission of the plan described in section 534(c).

SEC. 533. ADVISORY COMMITTEE.

    The Secretary shall appoint a Next Generation Nuclear Power Plant 
Subcommittee of the Nuclear Energy Research Advisory Council to provide 
advice to the Secretary on technical matters and program management for 
the duration of the program and construction project under this 
subtitle.

SEC. 534. PROGRAM REQUIREMENTS.

    (a) Partnerships.--In carrying out the program under this subtitle, 
the Secretary shall make use of partnerships with industry for the 
research, development, design, construction, and operation of the 
demonstration plant. In establishing such partnerships, the Secretary 
shall give preference to companies for which the principal base of 
operations is located in the United States.
    (b) International Collaboration.--(1) The Secretary shall seek 
international cooperation, participation, and financial contribution in 
this program, including 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 carried out in consultation 
with the Generation IV International Forum.
    (3) The program may include demonstration of selected program 
objectives in a partner nation.
    (c) Program Plan.--Not later than one year after the date of 
enactment of this Act, the Secretary shall transmit to Congress a 
comprehensive program plan. The program plan shall--
            (1) describe the plan for development, selection, 
        management, ownership, operation, and decommissioning of the 
        demonstration plant;
            (2) identify program milestones and a timeline for 
        achieving these milestones;
            (3) provide for development of risk-based criteria for any 
        future commercial development of a reactor architecture based 
        on that of the demonstration plant;
            (4) include a projected budget required to meet the 
        milestones; and
            (5) include an explanation of any major program decisions 
        that deviate from program advice given to the Secretary by the 
        advisory committee established under section 533.

SEC. 535. AUTHORIZATION OF APPROPRIATIONS.

    (a) Research, Development, and Design Programs.--The following sums 
are authorized to be appropriated to the Secretary for the purposes of 
carrying out this subtitle except for the demonstration plant 
activities described in subsection (b):
            (1) For fiscal year 2006, $150,000,000.
            (2) For fiscal year 2007, $150,000,000.
            (3) For fiscal year 2008, $150,000,000.
            (4) For fiscal year 2009, $150,000,000.
            (5) For fiscal year 2010, $150,000,000.
    (b) Reactor Construction.--There are authorized to be appropriated 
to the Secretary such sums as may be necessary for operation and 
construction of the demonstration plant under this subtitle. The 
Secretary shall not spend more than $500,000,000 for demonstration 
plant reactor construction activities under this subtitle.

                        TITLE VI--FOSSIL ENERGY

                     Subtitle A--Research Programs

SEC. 601. ENHANCED FOSSIL ENERGY RESEARCH AND DEVELOPMENT PROGRAMS.

    (a) In General.--The Secretary shall, in conjunction with industry, 
conduct fossil energy research, development, demonstration, and 
commercial applications programs, including activities under this 
subtitle, with the goal of improving the efficiency, effectiveness, and 
environmental performance of fossil energy production, upgrading, 
conversion, and consumption. Such programs shall be focused on--
            (1) increasing the conversion efficiency of all forms of 
        fossil energy through improved technologies;
            (2) decreasing the cost of all fossil energy production, 
        generation, and delivery;
            (3) promoting diversity of energy supply;
            (4) decreasing the Nation's dependence on foreign energy 
        supplies;
            (5) improving United States energy security;
            (6) decreasing the environmental impact of energy-related 
        activities; and
            (7) increasing the export of fossil energy-related 
        equipment, technology, and services from the United States.
    (b) Goals.--
            (1) Initial goals.--In accordance with the performance plan 
        and report requirements in section 4 of the Government 
        Performance Results Act of 1993, the Secretary shall transmit 
        to the Congress, along with the President's annual budget 
        request for fiscal year 2007, a report containing outcome 
        measures with explicitly stated cost and performance baselines. 
        The measures shall specify production or efficiency performance 
        goals, with quantifiable 5-year cost and energy savings target 
        levels, for fossil energy, and any other such goals the 
        Secretary considers appropriate.
            (2) Subsequent transmittals.--The Secretary shall transmit 
        to the Congress, along with the President's annual budget 
        request for each fiscal year after 2007, a report containing--
                    (A) a description, including quantitative analysis, 
                of progress in achieving performance goals transmitted 
                under paragraph (1), as compared to the baselines 
                transmitted under paragraph (1); and
                    (B) any amendments to such goals.
    (c) Covered Activities.--The Secretary shall ensure that the goals 
stated in subsection (b) are illustrative of the outcomes necessary to 
promote acceptance of the programs' efforts in the marketplace, but at 
a minimum shall encompass the following areas:
            (1) Coal gasifiers.
            (2) Turbine generators, including both natural gas and 
        syngas fueled.
            (3) Oxygen separation devices, hydrogen separation devices, 
        and carbon dioxide separation technologies.
            (4) Coal gas and post-combustion emission cleanup and 
        disposal equipment, including carbon dioxide capture and 
        disposal equipment.
            (5) Average per-foot drilling costs for oil and gas, 
        segregated by appropriate drilling regimes, including onshore 
        versus offshore and depth categories.
            (6) Production of liquid fuels from nontraditional 
        feedstocks, including syngas, biomass, methane, and 
        combinations thereof.
            (7) Environmental discharge per barrel of oil or oil-
        equivalent production, including reinjected waste.
            (8) Surface disturbance on both a per-well and per-barrel 
        of oil or oil-equivalent production basis.
    (d) Public Input.--The Secretary shall consider advice from 
industry, universities, and other interested parties through seeking 
comments in the Federal Register and other means before transmitting 
each report under subsection (b).

SEC. 602. FOSSIL RESEARCH AND DEVELOPMENT.

    (a) Objectives.--The Secretary shall conduct a program of fossil 
research, development, demonstration, and commercial application, whose 
objective shall be to reduce emissions from fossil fuel use by 
developing technologies, including precombustion technologies, by 2015 
with the capability of--
            (1) dramatically increasing electricity generating 
        efficiencies of coal and natural gas;
            (2) improving combined heat and power thermal efficiencies;
            (3) improving fuels utilization efficiency of production of 
        liquid transportation fuels from coal;
            (4) achieving near-zero emissions of mercury and of 
        emissions that form fine particles, smog, and acid rain;
            (5) reducing carbon dioxide emissions by at least 40 
        percent through efficiency improvements and by 100 percent with 
        sequestration; and
            (6) improved reliability, efficiency, reductions of air 
        pollutant emissions, and reductions in solid waste disposal 
        requirements.
    (b) Coal-Based Projects.--The coal-based projects authorized under 
this section shall be consistent with the objective stated in 
subsection (a). The program shall emphasize carbon capture and 
sequestration technologies and gasification technologies, including 
gasification combined cycle, gasification fuel cells, gasification 
coproduction, hybrid gasification/combustion, or other technologies 
with the potential to address the capabilities described in paragraphs 
(4) and (5) of subsection (a).

SEC. 603. OIL AND GAS RESEARCH AND DEVELOPMENT.

    The Secretary shall conduct a program of oil and gas research, 
development, demonstration, and commercial application, whose objective 
shall be to advance the science and technology available to domestic 
petroleum producers, particularly independent operators, to minimize 
the economic dislocation caused by the decline of domestic supplies of 
oil and natural gas resources by focusing research on--
            (1) assisting small domestic producers of oil and gas to 
        develop new and improved technologies to discover and extract 
        additional supplies;
            (2) developing technologies to extract methane hydrates in 
        an environmentally sound manner;
            (3) improving the ability of the domestic industry to 
        extract hydrocarbons from known reservoirs and classes of 
        reservoirs; and
            (4) reducing the cost, and improving the efficiency and 
        environmental performance, of oil and gas exploration and 
        extraction activities, focusing especially on unconventional 
        sources such as tar sands, heavy oil, and shale oil.

SEC. 604. TRANSPORTATION FUELS.

    The Secretary shall conduct a program of transportation fuels 
research, development, demonstration, and commercial application, whose 
objective shall be to increase the price elasticity of oil supply and 
demand by focusing research on--
            (1) reducing the cost of producing transportation fuels 
        from coal and natural gas; and
            (2) indirect liquefaction of coal and biomass.

SEC. 605. FUEL CELLS.

    (a) Program.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application of fuel cells 
for low-cost, high-efficiency, fuel-flexible, modular power systems.
    (b) Demonstration.--The program under this section shall include 
demonstration of fuel cell proton exchange membrane technology for 
commercial, residential, and transportation applications, and 
distributed generation systems, utilizing improved manufacturing 
production and processes.

SEC. 606. AUTHORIZATION OF APPROPRIATIONS.

    The following sums are authorized to be appropriated to the 
Secretary for the purposes of carrying out this subtitle:
            (1) For fiscal year 2006, $583,000,000.
            (2) For fiscal year 2007, $611,000,000.
            (3) For fiscal year 2008, $626,000,000.
            (4) For fiscal year 2009, $641,000,000.
            (5) For fiscal year 2010, $657,000,000.

 Subtitle B--Ultra-Deepwater and Unconventional Natural Gas and Other 
                          Petroleum Resources

SEC. 611. PROGRAM AUTHORITY.

    (a) In General.--The Secretary shall carry out a program under this 
subtitle of research, development, demonstration, and commercial 
application of technologies for ultra-deepwater and unconventional 
natural gas and other petroleum resource exploration and production, 
including addressing the technology challenges for small producers, 
safe operations, and environmental mitigation (including reduction of 
greenhouse gas emissions and sequestration of carbon).
    (b) Methane Hydrate Report.--Within 6 months of enactment, the 
Secretary shall report to Congress on whether the activities described 
in the Methane Hydrates Act of 2000 (114 Stat. 234 or 30 U.S.C. 1902 
note) should be carried out under this subtitle.
    (c) Program Elements.--The program under this subtitle shall 
address the following areas, including improving safety and minimizing 
environmental impacts of activities within each area:
            (1) Ultra-deepwater technology, including drilling to 
        formations in the Outer Continental Shelf to depths greater 
        than 15,000 feet.
            (2) Ultra-deepwater architecture.
            (3) Unconventional natural gas and other petroleum resource 
        exploration and production technology, including the technology 
        challenges of small producers.
    (d) Limitation on Location of Field Activities.--Field activities 
under the program under this subtitle shall be carried out only--
            (1) in--
                    (A) areas in the territorial waters of the United 
                States not under any Outer Continental Shelf moratorium 
                as of September 30, 2002;
                    (B) areas onshore in the United States on public 
                land administered by the Secretary of the Interior 
                available for oil and gas leasing, where consistent 
                with applicable law and land use plans; and
                    (C) areas onshore in the United States on State or 
                private land, subject to applicable law; and
            (2) with the approval of the appropriate Federal or State 
        land management agency or private land owner.
    (e) Research at National Energy Technology Laboratory.--The 
Secretary, through the National Energy Technology Laboratory, shall 
carry out research complementary to research under subsection (b).
    (f) Consultation With Secretary of the Interior.--In carrying out 
this subtitle, the Secretary shall consult regularly with the Secretary 
of the Interior.

SEC. 612. ULTRA-DEEPWATER PROGRAM.

    (a) In General.--The Secretary shall carry out the activities under 
section 611(a), to maximize the use of the ultra-deepwater natural gas 
and other petroleum resources of the United States by increasing the 
supply of such resources, through reducing the cost and increasing the 
efficiency of exploration for and production of such resources, while 
improving safety and minimizing environmental impacts.
    (b) Role of the Secretary.--The Secretary shall have ultimate 
responsibility for, and oversight of, all aspects of the program under 
this section.
    (c) Role of the Program Consortium.--
            (1) In general.--The Secretary may contract with a 
        consortium to--
                    (A) manage awards pursuant to subsection (f)(4);
                    (B) make recommendations to the Secretary for 
                project solicitations;
                    (C) disburse funds awarded under subsection (f) as 
                directed by the Secretary in accordance with the annual 
                plan under subsection (e); and
                    (D) carry out other activities assigned to the 
                program consortium by this section.
            (2) Limitation.--The Secretary may not assign any 
        activities to the program consortium except as specifically 
        authorized under this section.
            (3) Conflict of interest.--
                    (A) Procedures.--The Secretary shall establish 
                procedures--
                            (i) to ensure that each board member, 
                        officer, or employee of the program consortium 
                        who is in a decision-making capacity under 
                        subsection (f)(3) or (4) shall disclose to the 
                        Secretary any financial interests in, or 
                        financial relationships with, applicants for or 
                        recipients of awards under this section, 
                        including those of his or her spouse or minor 
                        child, unless such relationships or interests 
                        would be considered to be remote or 
                        inconsequential; and
                            (ii) to require any board member, officer, 
                        or employee with a financial relationship or 
                        interest disclosed under clause (i) to recuse 
                        himself or herself from any review under 
                        subsection (f)(3) or oversight under subsection 
                        (f)(4) with respect to such applicant or 
                        recipient.
                    (B) Failure to comply.--The Secretary may 
                disqualify an application or revoke an award under this 
                section if a board member, officer, or employee has 
                failed to comply with procedures required under 
                subparagraph (A)(ii).
    (d) Selection of the Program Consortium.--
            (1) In general.--The Secretary shall select the program 
        consortium through an open, competitive process.
            (2) Members.--The program consortium may include 
        corporations, trade associations, institutions of higher 
        education, National Laboratories, or other research 
        institutions. After submitting a proposal under paragraph (4), 
        the program consortium may not add members without the consent 
        of the Secretary.
            (3) Tax status.--The program consortium shall be an entity 
        that is exempt from tax under section 501(c)(3) of the Internal 
        Revenue Code of 1986.
            (4) Schedule.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall solicit proposals 
        from eligible consortia to perform the duties in subsection 
        (c)(1), which shall be submitted not later than 360 days after 
        the date of enactment of this Act. The Secretary shall select 
        the program consortium not later than 18 months after such date 
        of enactment.
            (5) Application.--Applicants shall submit a proposal 
        including such information as the Secretary may require. At a 
        minimum, each proposal shall--
                    (A) list all members of the consortium;
                    (B) fully describe the structure of the consortium, 
                including any provisions relating to intellectual 
                property; and
                    (C) describe how the applicant would carry out the 
                activities of the program consortium under this 
                section.
            (6) Eligibility.--To be eligible to be selected as the 
        program consortium, an applicant must be an entity whose 
        members collectively have demonstrated capabilities in planning 
        and managing research, development, demonstration, and 
        commercial application programs in natural gas or other 
        petroleum exploration or production.
            (7) Criterion.--The Secretary shall consider the amount of 
        the fee an applicant proposes to receive under subsection (g) 
        in selecting a consortium under this section.
    (e) Annual Plan.--
            (1) In general.--The program under this section shall be 
        carried out pursuant to an annual plan prepared by the 
        Secretary in accordance with paragraph (2).
            (2) Development.--
                    (A) Solicitation of recommendations.--Before 
                drafting an annual plan under this subsection, the 
                Secretary shall solicit specific written 
                recommendations from the program consortium for each 
                element to be addressed in the plan, including those 
                described in paragraph (4). The Secretary may request 
                that the program consortium submit its recommendations 
                in the form of a draft annual plan.
                    (B) Submission of recommendations; other comment.--
                The Secretary shall submit the recommendations of the 
                program consortium under subparagraph (A) to the Ultra-
                Deepwater Advisory Committee established under section 
                615(a) for review, and such Advisory Committee shall 
                provide to the Secretary written comments by a date 
                determined by the Secretary. The Secretary may also 
                solicit comments from any other experts.
                    (C) Consultation.--The Secretary shall consult 
                regularly with the program consortium throughout the 
                preparation of the annual plan.
            (3) Publication.--The Secretary shall transmit to Congress 
        and publish in the Federal Register the annual plan, along with 
        any written comments received under paragraph (2)(A) and (B).
            (4) Contents.--The annual plan shall describe the ongoing 
        and prospective activities of the program under this section 
        and shall include--
                    (A) a list of any solicitations for awards that the 
                Secretary plans to issue to carry out research, 
                development, demonstration, or commercial application 
                activities, including the topics for such work, who 
                would be eligible to apply, selection criteria, and the 
                duration of awards; and
                    (B) a description of the activities expected of the 
                program consortium to carry out subsection (f)(4).
            (5) Estimates of increased royalty receipts.--The 
        Secretary, in consultation with the Secretary of the Interior, 
        shall provide an annual report to Congress with the President's 
        budget on the estimated cumulative increase in Federal royalty 
        receipts (if any) resulting from the implementation of this 
        subtitle. The initial report under this paragraph shall be 
        submitted in the first President's budget following the 
        completion of the first annual plan required under this 
        subsection.
    (f) Awards.--
            (1) In general.--The Secretary shall make awards to carry 
        out research, development, demonstration, and commercial 
        application activities under the program under this section. 
        The program consortium shall not be eligible to receive such 
        awards, but members of the program consortium may receive such 
        awards.
            (2) Proposals.--The Secretary shall solicit proposals for 
        awards under this subsection in such manner and at such time as 
        the Secretary may prescribe, in consultation with the program 
        consortium.
            (3) Review.--The Secretary shall make awards under this 
        subsection through a competitive process, which shall include a 
        review by individuals selected by the Secretary. Such 
        individuals shall include, for each application, Federal 
        officials, the program consortium, and non-Federal experts who 
        are not board members, officers, or employees of the program 
        consortium or of a member of the program consortium.
            (4) Oversight.--
                    (A) In general.--The program consortium shall 
                oversee the implementation of awards under this 
                subsection, consistent with the annual plan under 
                subsection (e), including disbursing funds and 
                monitoring activities carried out under such awards for 
                compliance with the terms and conditions of the awards.
                    (B) Effect.--Nothing in subparagraph (A) shall 
                limit the authority or responsibility of the Secretary 
                to oversee awards, or limit the authority of the 
                Secretary to review or revoke awards.
                    (C) Provision of information.--The Secretary shall 
                provide to the program consortium the information 
                necessary for the program consortium to carry out its 
                responsibilities under this paragraph.
    (g) Administrative Costs.--
            (1) In general.--To compensate the program consortium for 
        carrying out its activities under this section, the Secretary 
        shall provide to the program consortium funds sufficient to 
        administer the program. This compensation may include a 
        management fee consistent with Department of Energy contracting 
        practices and procedures.
            (2) Advance.--The Secretary shall advance funds to the 
        program consortium upon selection of the consortium, which 
        shall be deducted from amounts to be provided under paragraph 
        (1).
    (h) Audit.--The Secretary shall retain an independent, commercial 
auditor to determine the extent to which funds provided to the program 
consortium, and funds provided under awards made under subsection (f), 
have been expended in a manner consistent with the purposes and 
requirements of this subtitle. The auditor shall transmit a report 
annually to the Secretary, who shall transmit the report to Congress, 
along with a plan to remedy any deficiencies cited in the report.

SEC. 613. UNCONVENTIONAL NATURAL GAS AND OTHER PETROLEUM RESOURCES 
              PROGRAM.

    (a) In General.--The Secretary shall carry out activities under 
section 611(b)(3), to maximize the use of the onshore unconventional 
natural gas and other petroleum resources of the United States, by 
increasing the supply of such resources, through reducing the cost and 
increasing the efficiency of exploration for and production of such 
resources, while improving safety and minimizing environmental impacts.
    (b) Awards.--
            (1) In general.--The Secretary shall carry out this section 
        through awards to research consortia made through an open, 
        competitive process. As a condition of award of funds, 
        qualified research consortia shall--
                    (A) demonstrate capability and experience in 
                unconventional onshore natural gas or other petroleum 
                research and development;
                    (B) provide a research plan that demonstrates how 
                additional natural gas or oil production will be 
                achieved; and
                    (C) at the request of the Secretary, provide 
                technical advice to the Secretary for the purposes of 
                developing the annual plan required under subsection 
                (e).
            (2) Production potential.--The Secretary shall seek to 
        ensure that the number and types of awards made under this 
        subsection have reasonable potential to lead to additional oil 
        and natural gas production on Federal lands.
            (3) Schedule.--To carry out this subsection, not later than 
        180 days after the date of enactment of this Act, the Secretary 
        shall solicit proposals from research consortia, which shall be 
        submitted not later than 360 days after the date of enactment 
        of this Act. The Secretary shall select the first group of 
        research consortia to receive awards under this subsection not 
        later than 18 months after such date of enactment.
    (c) Audit.--The Secretary shall retain an independent, commercial 
auditor to determine the extent to which funds provided under awards 
made under this section have been expended in a manner consistent with 
the purposes and requirements of this subtitle. The auditor shall 
transmit a report annually to the Secretary, who shall transmit the 
report to Congress, along with a plan to remedy any deficiencies cited 
in the report.
    (d) Focus Areas for Awards.--
            (1) Unconventional resources.--Awards from allocations 
        under section 619(d)(2) shall focus on areas including advanced 
        coalbed methane, deep drilling, natural gas production from 
        tight sands, natural gas production from gas shales, stranded 
        gas, innovative exploration and production techniques, enhanced 
        recovery techniques, and environmental mitigation of 
        unconventional natural gas and other petroleum resources 
        exploration and production.
            (2) Small producers.--Awards from allocations under section 
        619(d)(3) shall be made to consortia consisting of small 
        producers or organized primarily for the benefit of small 
        producers, and shall focus on areas including complex geology 
        involving rapid changes in the type and quality of the oil and 
        gas reservoirs across the reservoir; low reservoir pressure; 
        unconventional natural gas reservoirs in coalbeds, deep 
        reservoirs, tight sands, or shales; and unconventional oil 
        reservoirs in tar sands and oil shales.
    (e) Annual Plan.--
            (1) In general.--The program under this section shall be 
        carried out pursuant to an annual plan prepared by the 
        Secretary in accordance with paragraph (2).
            (2) Development.--
                    (A) Written recommendations.--Before drafting an 
                annual plan under this subsection, the Secretary shall 
                solicit specific written recommendations from the 
                research consortia receiving awards under subsection 
                (b) and the Unconventional Resources Technology 
                Advisory Committee for each element to be addressed in 
                the plan, including those described in subparagraph 
                (D).
                    (B) Consultation.--The Secretary shall consult 
                regularly with the research consortia throughout the 
                preparation of the annual plan.
                    (C) Publication.--The Secretary shall transmit to 
                Congress and publish in the Federal Register the annual 
                plan, along with any written comments received under 
                subparagraph (A).
                    (D) Contents.--The annual plan shall describe the 
                ongoing and prospective activities under this section 
                and shall include a list of any solicitations for 
                awards that the Secretary plans to issue to carry out 
                research, development, demonstration, or commercial 
                application activities, including the topics for such 
                work, who would be eligible to apply, selection 
                criteria, and the duration of awards.
            (3) Estimates of increased royalty receipts.--The 
        Secretary, in consultation with the Secretary of the Interior, 
        shall provide an annual report to Congress with the President's 
        budget on the estimated cumulative increase in Federal royalty 
        receipts (if any) resulting from the implementation of this 
        subtitle. The initial report under this paragraph shall be 
        submitted in the first President's budget following the 
        completion of the first annual plan required under this 
        subsection.
    (f) Activities by the United States Geological Survey.--The 
Secretary of the Interior, through the United States Geological Survey, 
shall, where appropriate, carry out programs of long-term research to 
complement the programs under this section.

SEC. 614. ADDITIONAL REQUIREMENTS FOR AWARDS.

    (a) Demonstration Projects.--An application for an award under this 
subtitle for a demonstration project shall describe with specificity 
the intended commercial use of the technology to be demonstrated.
    (b) Flexibility in Locating Demonstration Projects.--Subject to the 
limitation in section 611(c), a demonstration project under this 
subtitle relating to an ultra-deepwater technology or an ultra-
deepwater architecture may be conducted in deepwater depths.
    (c) Intellectual Property Agreements.--If an award under this 
subtitle is made to a consortium (other than the program consortium), 
the consortium shall provide to the Secretary a signed contract agreed 
to by all members of the consortium describing the rights of each 
member to intellectual property used or developed under the award.
    (d) Technology Transfer.--2.5 percent of the amount of each award 
made under this subtitle shall be designated for technology transfer 
and outreach activities under this subtitle.
    (e) Cost Sharing Reduction for Independent Producers.--In applying 
the cost sharing requirements under section __ to an award under this 
subtitle the Secretary may reduce or eliminate the non-Federal 
requirement if the Secretary determines that the reduction is necessary 
and appropriate considering the technological risks involved in the 
project.

SEC. 615. ADVISORY COMMITTEES.

    (a) Ultra-Deepwater Advisory Committee.--
            (1) Establishment.--Not later than 270 days after the date 
        of enactment of this Act, the Secretary shall establish an 
        advisory committee to be known as the Ultra-Deepwater Advisory 
        Committee.
            (2) Membership.--The advisory committee under this 
        subsection shall be composed of members appointed by the 
        Secretary including--
                    (A) individuals with extensive research experience 
                or operational knowledge of offshore natural gas and 
                other petroleum exploration and production;
                    (B) individuals broadly representative of the 
                affected interests in ultra-deepwater natural gas and 
                other petroleum production, including interests in 
                environmental protection and safe operations;
                    (C) no individuals who are Federal employees; and
                    (D) no individuals who are board members, officers, 
                or employees of the program consortium.
            (3) Duties.--The advisory committee under this subsection 
        shall--
                    (A) advise the Secretary on the development and 
                implementation of programs under this subtitle related 
                to ultra-deepwater natural gas and other petroleum 
                resources; and
                    (B) carry out section 612(e)(2)(B).
            (4) Compensation.--A member of the advisory committee under 
        this subsection shall serve without compensation but shall 
        receive travel expenses in accordance with applicable 
        provisions under subchapter I of chapter 57 of title 5, United 
        States Code.
    (b) Unconventional Resources Technology Advisory Committee.--
            (1) Establishment.--Not later than 270 days after the date 
        of enactment of this Act, the Secretary shall establish an 
        advisory committee to be known as the Unconventional Resources 
        Technology Advisory Committee.
            (2) Membership.--The advisory committee under this 
        subsection shall be composed of members appointed by the 
        Secretary including--
                    (A) a majority of members who are employees or 
                representatives of independent producers of natural gas 
                and other petroleum, including small producers;
                    (B) individuals with extensive research experience 
                or operational knowledge of unconventional natural gas 
                and other petroleum resource exploration and 
                production;
                    (C) individuals broadly representative of the 
                affected interests in unconventional natural gas and 
                other petroleum resource exploration and production, 
                including interests in environmental protection and 
                safe operations; and
                    (D) no individuals who are Federal employees.
            (3) Duties.--The advisory committee under this subsection 
        shall advise the Secretary on the development and 
        implementation of activities under this subtitle related to 
        unconventional natural gas and other petroleum resources.
            (4) Compensation.--A member of the advisory committee under 
        this subsection shall serve without compensation but shall 
        receive travel expenses in accordance with applicable 
        provisions under subchapter I of chapter 57 of title 5, United 
        States Code.
    (c) Prohibition.--No advisory committee established under this 
section shall make recommendations on funding awards to particular 
consortia or other entities, or for specific projects.

SEC. 616. LIMITS ON PARTICIPATION.

    An entity shall be eligible to receive an award under this subtitle 
only if the Secretary finds--
            (1) that the entity's participation in the program under 
        this subtitle would be in the economic interest of the United 
        States; and
            (2) that either--
                    (A) the entity is a United States-owned entity 
                organized under the laws of the United States; or
                    (B) the entity is organized under the laws of the 
                United States and has a parent entity organized under 
                the laws of a country that affords--
                            (i) to United States-owned entities 
                        opportunities, comparable to those afforded to 
                        any other entity, to participate in any 
                        cooperative research venture similar to those 
                        authorized under this subtitle;
                            (ii) to United States-owned entities local 
                        investment opportunities comparable to those 
                        afforded to any other entity; and
                            (iii) adequate and effective protection for 
                        the intellectual property rights of United 
                        States-owned entities.

SEC. 617. SUNSET.

    The authority provided by this subtitle shall terminate on 
September 30, 2015.

SEC. 618. DEFINITIONS.

    In this subtitle:
            (1) Deepwater.--The term ``deepwater'' means a water depth 
        that is greater than 200 but less than 1,500 meters.
            (2) Independent producer of oil or gas.--
                    (A) In general.--The term ``independent producer of 
                oil or gas'' means any person that produces oil or gas 
                other than a person to whom subsection (c) of section 
                613A of the Internal Revenue Code of 1986 does not 
                apply by reason of paragraph (2) (relating to certain 
                retailers) or paragraph (4) (relating to certain 
                refiners) of section 613A(d) of such Code.
                    (B) Rules for applying paragraphs (2) and (4) of 
                section 613a(d).--For purposes of subparagraph (A), 
                paragraphs (2) and (4) of section 613A(d) of the 
                Internal Revenue Code of 1986 shall be applied by 
                substituting ``calendar year'' for ``taxable year'' 
                each place it appears in such paragraphs.
            (3) Program consortium.--The term ``program consortium'' 
        means the consortium selected under section 612(d).
            (4) Remote or inconsequential.--The term ``remote or 
        inconsequential'' has the meaning given that term in 
        regulations issued by the Office of Government Ethics under 
        section 208(b)(2) of title 18, United States Code.
            (5) Small producer.--The term ``small producer'' means an 
        entity organized under the laws of the United States with 
        production levels of less than 1,000 barrels per day of oil 
        equivalent.
            (6) Ultra-deepwater.--The term ``ultra-deepwater'' means a 
        water depth that is equal to or greater than 1,500 meters.
            (7) Ultra-deepwater architecture.--The term ``ultra-
        deepwater architecture'' means the integration of technologies 
        for the exploration for, or production of, natural gas or other 
        petroleum resources located at ultra-deepwater depths.
            (8) Ultra-deepwater technology.--The term ``ultra-deepwater 
        technology'' means a discrete technology that is specially 
        suited to address 1 or more challenges associated with the 
        exploration for, or production of, natural gas or other 
        petroleum resources located at ultra-deepwater depths.
            (9) Unconventional natural gas and other petroleum 
        resource.--The term ``unconventional natural gas and other 
        petroleum resource'' means natural gas and other petroleum 
        resource located onshore in an economically inaccessible 
        geological formation, including resources of small producers.

SEC. 619. FUNDING.

    (a) In General.--
            (1) Oil and gas lease income.--For each of fiscal years 
        2006 through 2015, from any Federal royalties, rents, and 
        bonuses derived from Federal onshore and offshore oil and gas 
        leases issued under the Outer Continental Shelf Lands Act and 
        the Mineral Leasing Act which are deposited in the Treasury, 
        and after distribution of any such funds as described in 
        subsection (c), $150,000,000 shall be deposited into the Ultra-
        Deepwater and Unconventional Natural Gas and Other Petroleum 
        Research Fund (in this section referred to as the Fund). For 
        purposes of this section, the term ``royalties'' excludes 
        proceeds from the sale of royalty production taken in kind and 
        royalty production that is transferred under section 27(a)(3) 
        of the Outer Continental Shelf Lands Act (43 U.S.C. 
        1353(a)(3)).
            (2) Authorization of appropriations.--In addition to 
        amounts described in paragraph (1), there are authorized to be 
        appropriated to the Secretary, to be deposited in the Fund, 
        $50,000,000 for each of the fiscal years 2006 through 2015, to 
        remain available until expended.
    (b) Obligational Authority.--Monies in the Fund shall be available 
to the Secretary for obligation under this subtitle without fiscal year 
limitation, to remain available until expended.
    (c) Prior Distributions.--The distributions described in subsection 
(a) are those required by law--
            (1) to States and to the Reclamation Fund under the Mineral 
        Leasing Act (30 U.S.C. 191(a)); and
            (2) to other funds receiving monies from Federal oil and 
        gas leasing programs, including--
                    (A) any recipients pursuant to section 8(g) of the 
                Outer Continental Shelf Lands Act (43 U.S.C. 1337(g));
                    (B) the Land and Water Conservation Fund, pursuant 
                to section 2(c) of the Land and Water Conservation Fund 
                Act of 1965 (16 U.S.C. 4601-5(c));
                    (C) the Historic Preservation Fund, pursuant to 
                section 108 of the National Historic Preservation Act 
                (16 U.S.C. 470h); and
                    (D) the Secure Energy Reinvestment Fund.
    (d) Allocation.--Amounts obligated from the Fund under this section 
in each fiscal year shall be allocated as follows:
            (1) 50 percent shall be for activities under section 612.
            (2) 35 percent shall be for activities under section 
        613(d)(1).
            (3) 10 percent shall be for activities under section 
        613(d)(2).
            (4) 5 percent shall be for research under section 611(d).
    (e) Fund.--There is hereby established in the Treasury of the 
United States a separate fund to be known as the ``Ultra-Deepwater and 
Unconventional Natural Gas and Other Petroleum Research Fund''.

                          TITLE VII--HYDROGEN

SEC. 701. DEFINITIONS.

    In this title:
            (1) Advisory committee.--The term ``Advisory Committee'' 
        means the Hydrogen Technical and Fuel Cell Advisory Committee 
        established under section 705.
            (2) Fuel cell.--The term ``fuel cell'' means a device that 
        directly converts the chemical energy of a fuel and an oxidant 
        into electricity by an electrochemical process taking place at 
        separate electrodes in the device.
            (3) Infrastructure.--The term ``infrastructure'' means the 
        equipment, systems, or facilities used to produce, distribute, 
        deliver, or store hydrogen.
            (4) Light duty vehicle.--The term ``light duty vehicle'' 
        means a car or truck classified by the Department of 
        Transportation as a Class I or IIA vehicle.

SEC. 702. PLAN.

    Not later than 6 months after the date of enactment of this Act, 
the Secretary shall transmit to Congress a coordinated plan for the 
programs described in this title and any other programs of the 
Department that are directly related to fuel cells or hydrogen. The 
plan shall describe, at a minimum--
            (1) the agenda for the next 5 years for the programs 
        authorized under this title, including the agenda for each 
        activity enumerated in section 703(a);
            (2) the types of entities that will carry out the 
        activities under this title and what role each entity is 
        expected to play;
            (3) the milestones that will be used to evaluate the 
        programs for the next 5 years;
            (4) the most significant technical and nontechnical hurdles 
        that stand in the way of achieving the goals described in 
        section 703(b), and how the programs will address those 
        hurdles; and
            (5) the policy assumptions that are implicit in the plan, 
        including any assumptions that would affect the sources of 
        hydrogen or the marketability of hydrogen-related products.

SEC. 703. PROGRAMS.

    (a) Activities.--The Secretary, in partnership with the private 
sector, shall conduct programs to address--
            (1) production of hydrogen from diverse energy sources, 
        including--
                    (A) fossil fuels, which may include carbon capture 
                and sequestration;
                    (B) hydrogen-carrier fuels (including ethanol and 
                methanol);
                    (C) renewable energy resources, including biomass; 
                and
                    (D) nuclear energy;
            (2) use of hydrogen for commercial, industrial, and 
        residential electric power generation;
            (3) safe delivery of hydrogen or hydrogen-carrier fuels, 
        including--
                    (A) transmission by pipeline and other distribution 
                methods; and
                    (B) convenient and economic refueling of vehicles 
                either at central refueling stations or through 
                distributed on-site generation;
            (4) advanced vehicle technologies, including--
                    (A) engine and emission control systems;
                    (B) energy storage, electric propulsion, and hybrid 
                systems;
                    (C) automotive materials; and
                    (D) other advanced vehicle technologies;
            (5) storage of hydrogen or hydrogen-carrier fuels, 
        including development of materials for safe and economic 
        storage in gaseous, liquid, or solid form at refueling 
        facilities and onboard vehicles;
            (6) development of safe, durable, affordable, and efficient 
        fuel cells, including fuel-flexible fuel cell power systems, 
        improved manufacturing processes, high-temperature membranes, 
        cost-effective fuel processing for natural gas, fuel cell stack 
        and system reliability, low temperature operation, and cold 
        start capability;
            (7) development, after consultation with the private 
        sector, of necessary codes and standards (including 
        international codes and standards and voluntary consensus 
        standards adopted in accordance with OMB Circular A-119) and 
        safety practices for the production, distribution, storage, and 
        use of hydrogen, hydrogen-carrier fuels, and related products; 
        and
            (8) a public education program to develop improved 
        knowledge and acceptability of hydrogen-based systems.
    (b) Program Goals.--
            (1) Vehicles.--For vehicles, the goals of the program are--
                    (A) to enable a commitment by automakers no later 
                than year 2015 to offer safe, affordable, and 
                technically viable hydrogen fuel cell vehicles in the 
                mass consumer market; and
                    (B) to enable production, delivery, and acceptance 
                by consumers of model year 2020 hydrogen fuel cell and 
                other hydrogen-powered vehicles that will have--
                            (i) a range of at least 300 miles;
                            (ii) improved performance and ease of 
                        driving;
                            (iii) safety and performance comparable to 
                        vehicle technologies in the market; and
                            (iv) when compared to light duty vehicles 
                        in model year 2003--
                                    (I) fuel economy that is 
                                substantially higher;
                                    (II) substantially lower emissions 
                                of air pollutants; and
                                    (III) equivalent or improved 
                                vehicle fuel system crash integrity and 
                                occupant protection.
            (2) Hydrogen energy and energy infrastructure.--For 
        hydrogen energy and energy infrastructure, the goals of the 
        program are to enable a commitment not later than 2015 that 
        will lead to infrastructure by 2020 that will provide--
                    (A) safe and convenient refueling;
                    (B) improved overall efficiency;
                    (C) widespread availability of hydrogen from 
                domestic energy sources through--
                            (i) production, with consideration of 
                        emissions levels;
                            (ii) delivery, including transmission by 
                        pipeline and other distribution methods for 
                        hydrogen; and
                            (iii) storage, including storage in surface 
                        transportation vehicles;
                    (D) hydrogen for fuel cells, internal combustion 
                engines, and other energy conversion devices for 
                portable, stationary, and transportation applications; 
                and
                    (E) other technologies consistent with the 
                Department's plan.
            (3) Fuel cells.--The goals for fuel cells and their 
        portable, stationary, and transportation applications are to 
        enable--
                    (A) safe, economical, and environmentally sound 
                hydrogen fuel cells;
                    (B) fuel cells for light duty and other vehicles; 
                and
                    (C) other technologies consistent with the 
                Department's plan.
    (c) Demonstration.--In carrying out the programs under this 
section, the Secretary shall fund a limited number of demonstration 
projects, consistent with a determination of the maturity, cost-
effectiveness, and environmental impacts of technologies supporting 
each project. In selecting projects under this subsection, the 
Secretary shall, to the extent practicable and in the public interest, 
select projects that--
            (1) involve using hydrogen and related products at existing 
        facilities or installations, such as existing office buildings, 
        military bases, vehicle fleet centers, transit bus authorities, 
        or units of the National Park System;
            (2) depend on reliable power from hydrogen to carry out 
        essential activities;
            (3) lead to the replication of hydrogen technologies and 
        draw such technologies into the marketplace;
            (4) include vehicle, portable, and stationary 
        demonstrations of fuel cell and hydrogen-based energy 
        technologies;
            (5) address the interdependency of demand for hydrogen fuel 
        cell applications and hydrogen fuel infrastructure;
            (6) raise awareness of hydrogen technology among the 
        public;
            (7) facilitate identification of an optimum technology 
        among competing alternatives;
            (8) address distributed generation using renewable sources; 
        and
            (9) address applications specific to rural or remote 
        locations, including isolated villages and islands, the 
        National Park System, and tribal entities.
The Secretary shall give preference to projects which address multiple 
elements contained in paragraphs (1) through (9).
    (d) Deployment.--In carrying out the programs under this section, 
the Secretary shall, in partnership with the private sector, conduct 
activities to facilitate the deployment of hydrogen energy and energy 
infrastructure, fuel cells, and advanced vehicle technologies.
    (e) Funding.--
            (1) In general.--The Secretary shall carry out the programs 
        under this section using a competitive, merit-based review 
        process and consistent with the generally applicable Federal 
        laws and regulations governing awards of financial assistance, 
        contracts, or other agreements.
            (2) Research centers.--Activities under this section may be 
        carried out by funding nationally recognized university-based 
        or Federal laboratory research centers.
    (f) Disclosure.--Section 623 of the Energy Policy Act of 1992 (42 
U.S.C. 13293) relating to the protection of information shall apply to 
projects carried out through grants, cooperative agreements, or 
contracts under this title.

SEC. 704. INTERAGENCY TASK FORCE.

    (a) Establishment.--Not later than 120 days after the date of 
enactment of this Act, the President shall establish an interagency 
task force chaired by the Secretary with representatives from each of 
the following:
            (1) The Office of Science and Technology Policy within the 
        Executive Office of the President.
            (2) The Department of Transportation.
            (3) The Department of Defense.
            (4) The Department of Commerce (including the National 
        Institute of Standards and Technology).
            (5) The Department of State.
            (6) The Environmental Protection Agency.
            (7) The National Aeronautics and Space Administration.
            (8) Other Federal agencies as the Secretary determines 
        appropriate.
    (b) Duties.--
            (1) Planning.--The interagency task force shall work 
        toward--
                    (A) a safe, economical, and environmentally sound 
                fuel infrastructure for hydrogen and hydrogen-carrier 
                fuels, including an infrastructure that supports buses 
                and other fleet transportation;
                    (B) fuel cells in government and other 
                applications, including portable, stationary, and 
                transportation applications;
                    (C) distributed power generation, including the 
                generation of combined heat, power, and clean fuels 
                including hydrogen;
                    (D) uniform hydrogen codes, standards, and safety 
                protocols; and
                    (E) vehicle hydrogen fuel system integrity safety 
                performance.
            (2) Activities.--The interagency task force may organize 
        workshops and conferences, may issue publications, and may 
        create databases to carry out its duties. The interagency task 
        force shall--
                    (A) foster the exchange of generic, nonproprietary 
                information and technology among industry, academia, 
                and government;
                    (B) develop and maintain an inventory and 
                assessment of hydrogen, fuel cells, and other advanced 
                technologies, including the commercial capability of 
                each technology for the economic and environmentally 
                safe production, distribution, delivery, storage, and 
                use of hydrogen;
                    (C) integrate technical and other information made 
                available as a result of the programs and activities 
                under this title;
                    (D) promote the marketplace introduction of 
                infrastructure for hydrogen fuel vehicles; and
                    (E) conduct an education program to provide 
                hydrogen and fuel cell information to potential end-
                users.
    (c) Agency Cooperation.--The heads of all agencies, including those 
whose agencies are not represented on the interagency task force, shall 
cooperate with and furnish information to the interagency task force, 
the Advisory Committee, and the Department.

SEC. 705. ADVISORY COMMITTEE.

    (a) Establishment.--The Hydrogen Technical and Fuel Cell Advisory 
Committee is established to advise the Secretary on the programs and 
activities under this title.
    (b) Membership.--
            (1) Members.--The Advisory Committee shall be comprised of 
        not fewer than 12 nor more than 25 members. The members shall 
        be appointed by the Secretary to represent domestic industry, 
        academia, professional societies, government agencies, Federal 
        laboratories, previous advisory panels, and financial, 
        environmental, and other appropriate organizations based on the 
        Department's assessment of the technical and other 
        qualifications of committee members and the needs of the 
        Advisory Committee.
            (2) Terms.--The term of a member of the Advisory Committee 
        shall not be more than 3 years. The Secretary may appoint 
        members of the Advisory Committee in a manner that allows the 
        terms of the members serving at any time to expire at spaced 
        intervals so as to ensure continuity in the functioning of the 
        Advisory Committee. A member of the Advisory Committee whose 
        term is expiring may be reappointed.
            (3) Chairperson.--The Advisory Committee shall have a 
        chairperson, who is elected by the members from among their 
        number.
    (c) Review.--The Advisory Committee shall review and make 
recommendations to the Secretary on--
            (1) the implementation of programs and activities under 
        this title;
            (2) the safety, economical, and environmental consequences 
        of technologies for the production, distribution, delivery, 
        storage, or use of hydrogen energy and fuel cells; and
            (3) the plan under section 702.
    (d) Response.--
            (1) Consideration of recommendations.--The Secretary shall 
        consider, but need not adopt, any recommendations of the 
        Advisory Committee under subsection (c).
            (2) Biennial report.--The Secretary shall transmit a 
        biennial report to Congress describing any recommendations made 
        by the Advisory Committee since the previous report. The report 
        shall include a description of how the Secretary has 
        implemented or plans to implement the recommendations, or an 
        explanation of the reasons that a recommendation will not be 
        implemented. The report shall be transmitted along with the 
        President's budget proposal.
    (e) Support.--The Secretary shall provide resources necessary in 
the judgment of the Secretary for the Advisory Committee to carry out 
its responsibilities under this title.

SEC. 706. EXTERNAL REVIEW.

    (a) Plan.--The Secretary shall enter into an arrangement with the 
National Academy of Sciences to review the plan prepared under section 
702, which shall be completed not later than 6 months after the Academy 
receives the plan. Not later than 45 days after receiving the review, 
the Secretary shall transmit the review to Congress along with a plan 
to implement the review's recommendations or an explanation of the 
reasons that a recommendation will not be implemented.
    (b) Additional Review.--The Secretary shall enter into an 
arrangement with the National Academy of Sciences under which the 
Academy will review the programs under section 703 during the fourth 
year following the date of enactment of this Act. The Academy's review 
shall include the research priorities and technical milestones, and 
evaluate the progress toward achieving them. The review shall be 
completed not later than 5 years after the date of enactment of this 
Act. Not later than 45 days after receiving the review, the Secretary 
shall transmit the review to Congress along with a plan to implement 
the review's recommendations or an explanation for the reasons that a 
recommendation will not be implemented.

SEC. 707. MISCELLANEOUS PROVISIONS.

    (a) Representation.--The Secretary may represent the United States 
interests with respect to activities and programs under this title, in 
coordination with the Department of Transportation, the National 
Institute of Standards and Technology, and other relevant Federal 
agencies, before governments and nongovernmental organizations 
including--
            (1) other Federal, State, regional, and local governments 
        and their representatives;
            (2) industry and its representatives, including members of 
        the energy and transportation industries; and
            (3) in consultation with the Department of State, foreign 
        governments and their representatives including international 
        organizations.
    (b) Regulatory Authority.--Nothing in this title shall be construed 
to alter the regulatory authority of the Department.

SEC. 708. SAVINGS CLAUSE.

    Nothing in this title shall be construed to affect the authority of 
the Secretary of Transportation that may exist prior to the date of 
enactment of this Act with respect to--
            (1) research into, and regulation of, hydrogen-powered 
        vehicles fuel systems integrity, standards, and safety under 
        subtitle VI of title 49, United States Code;
            (2) regulation of hazardous materials transportation under 
        chapter 51 of title 49, United States Code;
            (3) regulation of pipeline safety under chapter 601 of 
        title 49, United States Code;
            (4) encouragement and promotion of research, development, 
        and deployment activities relating to advanced vehicle 
        technologies under section 5506 of title 49, United States 
        Code;
            (5) regulation of motor vehicle safety under chapter 301 of 
        title 49, United States Code;
            (6) automobile fuel economy under chapter 329 of title 49, 
        United States Code; or
            (7) representation of the interests of the United States 
        with respect to the activities and programs under the authority 
        of title 49, United States Code.

SEC. 709. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary to carry 
out this title, in addition to any amounts made available for these 
purposes under other Acts--
            (1) $273,500,000 for fiscal year 2006;
            (2) $375,000,000 for fiscal year 2007;
            (3) $450,000,000 for fiscal year 2008;
            (4) $500,000,000 for fiscal year 2009; and
            (5) $550,000,000 for fiscal year 2010.

                     TITLE VIII--ADVANCED VEHICLES

                       Subtitle A--Pilot Program

SEC. 801. DEFINITIONS.

    In this subtitle:
            (1) Alternative fueled vehicle.--
                    (A) In general.--The term ``alternative fueled 
                vehicle'' means a vehicle propelled solely on an 
                alternative fuel (as defined in section 301 of the 
                Energy Policy Act of 1992 (42 U.S.C. 13211)).
                    (B) Exclusion.--The term ``alternative fueled 
                vehicle'' does not include a vehicle that the Secretary 
                determines, by regulation, does not yield substantial 
                environmental benefits over a vehicle operating solely 
                on gasoline or diesel derived from fossil fuels.
            (2) Fuel cell vehicle.--The term ``fuel cell vehicle'' 
        means a vehicle propelled by an electric motor powered by a 
        fuel cell system that converts chemical energy into electricity 
        by combining oxygen (from air) with hydrogen fuel that is 
        stored on the vehicle or is produced onboard by reformation of 
        a hydrocarbon fuel. Such fuel cell system may or may not 
        include the use of auxiliary energy storage systems to enhance 
        vehicle performance.
            (3) Hybrid vehicle.--The term ``hybrid vehicle'' means a 
        medium or heavy duty vehicle propelled by an internal 
        combustion engine or heat engine using any combustible fuel and 
        an onboard rechargeable energy storage device.
            (4) Neighborhood electric vehicle.--The term ``neighborhood 
        electric vehicle'' means a motor vehicle that--
                    (A) meets the definition of a low-speed vehicle (as 
                defined in part 571 of title 49, Code of Federal 
                Regulations);
                    (B) meets the definition of a zero-emission vehicle 
                (as defined in section 86.1702-99 of title 40, Code of 
                Federal Regulations);
                    (C) meets the requirements of Federal Motor Vehicle 
                Safety Standard No. 500; and
                    (D) has a maximum speed of not greater than 25 
                miles per hour.
            (5) Pilot program.--The term ``pilot program'' means the 
        competitive grant program established under section 802.
            (6) Ultra-low sulfur diesel vehicle.--The term ``ultra-low 
        sulfur diesel vehicle'' means a vehicle manufactured in model 
        year 2005 or 2006 powered by a heavy-duty diesel engine that--
                    (A) is fueled by diesel fuel that contains sulfur 
                at not more than 15 parts per million; and
                    (B) emits not more than the lesser of--
                            (i) 2.5 grams per brake horsepower-hour of 
                        nonmethane hydrocarbons and oxides of nitrogen 
                        and .01 grams per brake horsepower-hour of 
                        particulate matter; or
                            (ii) the quantity of emissions of 
                        nonmethane hydrocarbons, oxides of nitrogen, 
                        and particulate matter of the best-performing 
                        technology of ultra-low sulfur diesel vehicles 
                        of the same class and application that are 
                        commercially available.

SEC. 802. PILOT PROGRAM.

    (a) Establishment.--The Secretary, in consultation with the 
Secretary of Transportation, shall establish a competitive grant pilot 
program, to be administered through the Clean Cities Program of the 
Department of Energy, to provide not more than 15 geographically 
dispersed project grants to State governments, local governments, or 
metropolitan transportation authorities to carry out a project or 
projects for the purposes described in subsection (b).
    (b) Grant Purposes.--A grant under this section may be used for the 
following purposes:
            (1) The acquisition of alternative fueled vehicles or fuel 
        cell vehicles, including--
                    (A) passenger vehicles (including neighborhood 
                electric vehicles); and
                    (B) motorized 2-wheel bicycles, scooters, or other 
                vehicles for use by law enforcement personnel or other 
                State or local government or metropolitan 
                transportation authority employees.
            (2) The acquisition of alternative fueled vehicles, hybrid 
        vehicles, or fuel cell vehicles, including--
                    (A) buses used for public transportation or 
                transportation to and from schools;
                    (B) delivery vehicles for goods or services; and
                    (C) ground support vehicles at public airports 
                (including vehicles to carry baggage or push or pull 
                airplanes toward or away from terminal gates).
            (3) The acquisition of ultra-low sulfur diesel vehicles.
            (4) Installation or acquisition of infrastructure necessary 
        to directly support an alternative fueled vehicle, fuel cell 
        vehicle, or hybrid vehicle project funded by the grant, 
        including fueling and other support equipment.
            (5) Operation and maintenance of vehicles, infrastructure, 
        and equipment acquired as part of a project funded by the 
        grant.
    (c) Applications.--
            (1) Requirements.--
                    (A) In general.--The Secretary shall issue 
                requirements for applying for grants under the pilot 
                program.
                    (B) Minimum requirements.--At a minimum, the 
                Secretary shall require that an application for a 
                grant--
                            (i) be submitted by the head of a State or 
                        local government or a metropolitan 
                        transportation authority, or any combination 
                        thereof, and a registered participant in the 
                        Clean Cities Program of the Department of 
                        Energy; and
                            (ii) include--
                                    (I) a description of the project 
                                proposed in the application, including 
                                how the project meets the requirements 
                                of this subtitle;
                                    (II) an estimate of the ridership 
                                or degree of use of the project;
                                    (III) an estimate of the air 
                                pollution emissions reduced and fossil 
                                fuel displaced as a result of the 
                                project, and a plan to collect and 
                                disseminate environmental data, related 
                                to the project to be funded under the 
                                grant, over the life of the project;
                                    (IV) a description of how the 
                                project will be sustainable without 
                                Federal assistance after the completion 
                                of the term of the grant;
                                    (V) a complete description of the 
                                costs of the project, including 
                                acquisition, construction, operation, 
                                and maintenance costs over the expected 
                                life of the project;
                                    (VI) a description of which costs 
                                of the project will be supported by 
                                Federal assistance under this subtitle; 
                                and
                                    (VII) documentation to the 
                                satisfaction of the Secretary that 
                                diesel fuel containing sulfur at not 
                                more than 15 parts per million is 
                                available for carrying out the project, 
                                and a commitment by the applicant to 
                                use such fuel in carrying out the 
                                project.
            (2) Partners.--An applicant under paragraph (1) may carry 
        out a project under the pilot program in partnership with 
        public and private entities.
    (d) Selection Criteria.--In evaluating applications under the pilot 
program, the Secretary shall--
            (1) consider each applicant's previous experience with 
        similar projects; and
            (2) give priority consideration to applications that--
                    (A) are most likely to maximize protection of the 
                environment;
                    (B) demonstrate the greatest commitment on the part 
                of the applicant to ensure funding for the proposed 
                project and the greatest likelihood that the project 
                will be maintained or expanded after Federal assistance 
                under this subtitle is completed; and
                    (C) exceed the minimum requirements of subsection 
                (c)(1)(B)(ii).
    (e) Pilot Project Requirements.--
            (1) Maximum amount.--The Secretary shall not provide more 
        than $20,000,000 in Federal assistance under the pilot program 
        to any applicant.
            (2) Cost sharing.--The Secretary shall not provide more 
        than 50 percent of the cost, incurred during the period of the 
        grant, of any project under the pilot program.
            (3) Maximum period of grants.--The Secretary shall not fund 
        any applicant under the pilot program for more than 5 years.
            (4) Deployment and distribution.--The Secretary shall seek 
        to the maximum extent practicable to ensure a broad geographic 
        distribution of project sites.
            (5) Transfer of information and knowledge.--The Secretary 
        shall establish mechanisms to ensure that the information and 
        knowledge gained by participants in the pilot program are 
        transferred among the pilot program participants and to other 
        interested parties, including other applicants that submitted 
        applications.
    (f) Schedule.--
            (1) Publication.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary shall publish in the 
        Federal Register, Commerce Business Daily, and elsewhere as 
        appropriate, a request for applications to undertake projects 
        under the pilot program. Applications shall be due not later 
        than 180 days after the date of publication of the notice.
            (2) Selection.--Not later than 180 days after the date by 
        which applications for grants are due, the Secretary shall 
        select by competitive, peer reviewed proposal, all applications 
        for projects to be awarded a grant under the pilot program.
    (g) Limit on Funding.--The Secretary shall provide not less than 20 
nor more than 25 percent of the grant funding made available under this 
section for the acquisition of ultra-low sulfur diesel vehicles.

SEC. 803. REPORTS TO CONGRESS.

    (a) Initial Report.--Not later than 60 days after the date on which 
grants are awarded under this subtitle, the Secretary shall submit to 
Congress a report containing--
            (1) an identification of the grant recipients and a 
        description of the projects to be funded;
            (2) an identification of other applicants that submitted 
        applications for the pilot program; and
            (3) a description of the mechanisms used by the Secretary 
        to ensure that the information and knowledge gained by 
        participants in the pilot program are transferred among the 
        pilot program participants and to other interested parties, 
        including other applicants that submitted applications.
    (b) Evaluation.--Not later than 3 years after the date of enactment 
of this Act, and annually thereafter until the pilot program ends, the 
Secretary shall submit to Congress a report containing an evaluation of 
the effectiveness of the pilot program, including--
            (1) an assessment of the benefits to the environment 
        derived from the projects included in the pilot program; and
            (2) an estimate of the potential benefits to the 
        environment to be derived from widespread application of 
        alternative fueled vehicles and ultra-low sulfur diesel 
        vehicles.

SEC. 804. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary to carry 
out this subtitle $200,000,000, to remain available until expended.

                     Subtitle B--Clean School Buses

SEC. 811. DEFINITIONS.

    In this subtitle:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Alternative fuel.--The term ``alternative fuel'' means 
        liquefied natural gas, compressed natural gas, liquefied 
        petroleum gas, hydrogen, propane, or methanol or ethanol at no 
        less than 85 percent by volume.
            (3) Alternative fuel school bus.--The term ``alternative 
        fuel school bus'' means a school bus that meets all of the 
        requirements of this subtitle and is operated solely on an 
        alternative fuel.
            (4) Emissions control retrofit technology.--The term 
        ``emissions control retrofit technology'' means a particulate 
        filter or other emissions control equipment that is verified or 
        certified by the Administrator or the California Air Resources 
        Board as an effective emission reduction technology when 
        installed on an existing school bus.
            (5) Idling.--The term ``idling'' means operating an engine 
        while remaining stationary for more than approximately 15 
        minutes, except that the term does not apply to routine 
        stoppages associated with traffic movement or congestion.
            (6) Ultra-low sulfur diesel fuel.--The term ``ultra-low 
        sulfur diesel fuel'' means diesel fuel that contains sulfur at 
        not more than 15 parts per million.
            (7) Ultra-low sulfur diesel fuel school bus.--The term 
        ``ultra-low sulfur diesel fuel school bus'' means a school bus 
        that meets all of the requirements of this subtitle and is 
        operated solely on ultra-low sulfur diesel fuel.

SEC. 812. PROGRAM FOR REPLACEMENT OF CERTAIN SCHOOL BUSES WITH CLEAN 
              SCHOOL BUSES.

    (a) Establishment.--The Administrator, in consultation with the 
Secretary and other appropriate Federal departments and agencies, shall 
establish a program for awarding grants on a competitive basis to 
eligible entities for the replacement of existing school buses 
manufactured before model year 1991 with alternative fuel school buses 
and ultra-low sulfur diesel fuel school buses.
    (b) Requirements.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Administrator shall establish and 
        publish in the Federal Register grant requirements on 
        eligibility for assistance, and on implementation of the 
        program established under subsection (a), including 
        instructions for the submission of grant applications and 
        certification requirements to ensure compliance with this 
        subtitle.
            (2) Application deadlines.--The requirements established 
        under paragraph (1) shall require submission of grant 
        applications not later than--
                    (A) in the case of the first year of program 
                implementation, the date that is 180 days after the 
                publication of the requirements in the Federal 
                Register; and
                    (B) in the case of each subsequent year, June 1 of 
                the year.
    (c) Eligible Recipients.--A grant shall be awarded under this 
section only--
            (1) to 1 or more local or State governmental entities 
        responsible for providing school bus service to 1 or more 
        public school systems or responsible for the purchase of school 
        buses;
            (2) to 1 or more contracting entities that provide school 
        bus service to 1 or more public school systems, if the grant 
        application is submitted jointly with the 1 or more school 
        systems to be served by the buses, except that the application 
        may provide that buses purchased using funds awarded shall be 
        owned, operated, and maintained exclusively by the 1 or more 
        contracting entities; or
            (3) to a nonprofit school transportation association 
        representing private contracting entities, if the association 
        has notified and received approval from the 1 or more school 
        systems to be served by the buses.
    (d) Award Deadlines.--
            (1) In general.--Subject to paragraph (2), the 
        Administrator shall award a grant made to a qualified applicant 
        for a fiscal year--
                    (A) in the case of the first fiscal year of program 
                implementation, not later than the date that is 90 days 
                after the application deadline established under 
                subsection (b)(2); and
                    (B) in the case of each subsequent fiscal year, not 
                later than August 1 of the fiscal year.
            (2) Insufficient number of qualified grant applications.--
        If the Administrator does not receive a sufficient number of 
        qualified grant applications to meet the requirements of 
        subsection (i)(1) for a fiscal year, the Administrator shall 
        award a grant made to a qualified applicant under subsection 
        (i)(2) not later than September 30 of the fiscal year.
    (e) Types of Grants.--
            (1) In general.--A grant under this section shall be used 
        for the replacement of school buses manufactured before model 
        year 1991 with alternative fuel school buses and ultra-low 
        sulfur diesel fuel school buses.
            (2) No economic benefit.--Other than the receipt of the 
        grant, a recipient of a grant under this section may not 
        receive any economic benefit in connection with the receipt of 
        the grant.
            (3) Priority of grant applications.--The Administrator 
        shall give priority to applicants that propose to replace 
        school buses manufactured before model year 1977.
    (f) Conditions of Grant.--A grant provided under this section shall 
include the following conditions:
            (1) School bus fleet.--All buses acquired with funds 
        provided under the grant shall be operated as part of the 
        school bus fleet for which the grant was made for a minimum of 
        5 years.
            (2) Use of funds.--Funds provided under the grant may only 
        be used--
                    (A) to pay the cost, except as provided in 
                paragraph (3), of new alternative fuel school buses or 
                ultra-low sulfur diesel fuel school buses, including 
                State taxes and contract fees associated with the 
                acquisition of such buses; and
                    (B) to provide--
                            (i) up to 20 percent of the price of the 
                        alternative fuel school buses acquired, for 
                        necessary alternative fuel infrastructure if 
                        the infrastructure will only be available to 
                        the grant recipient; and
                            (ii) up to 25 percent of the price of the 
                        alternative fuel school buses acquired, for 
                        necessary alternative fuel infrastructure if 
                        the infrastructure will be available to the 
                        grant recipient and to other bus fleets.
            (3) Grant recipient funds.--The grant recipient shall be 
        required to provide at least--
                    (A) in the case of a grant recipient described in 
                paragraph (1) or (3) of subsection (c), the lesser of--
                            (i) an amount equal to 15 percent of the 
                        total cost of each bus received; or
                            (ii) $15,000 per bus; and
                    (B) in the case of a grant recipient described in 
                subsection (c)(2), the lesser of--
                            (i) an amount equal to 20 percent of the 
                        total cost of each bus received; or
                            (ii) $20,000 per bus.
            (4) Ultra-low sulfur diesel fuel.--In the case of a grant 
        recipient receiving a grant for ultra-low sulfur diesel fuel 
        school buses, the grant recipient shall be required to provide 
        documentation to the satisfaction of the Administrator that 
        diesel fuel containing sulfur at not more than 15 parts per 
        million is available for carrying out the purposes of the 
        grant, and a commitment by the applicant to use such fuel in 
        carrying out the purposes of the grant.
            (5) Timing.--All alternative fuel school buses, ultra-low 
        sulfur diesel fuel school buses, or alternative fuel 
        infrastructure acquired under a grant awarded under this 
        section shall be purchased and placed in service as soon as 
        practicable.
    (g) Buses.--
            (1) In general.--Except as provided in paragraph (2), 
        funding under a grant made under this section for the 
        acquisition of new alternative fuel school buses or ultra-low 
        sulfur diesel fuel school buses shall only be used to acquire 
        school buses--
                    (A) with a gross vehicle weight of greater than 
                14,000 pounds;
                    (B) that are powered by a heavy duty engine;
                    (C) in the case of alternative fuel school buses 
                manufactured in model years 2005 and 2006, that emit 
                not more than 1.8 grams per brake horsepower-hour of 
                nonmethane hydrocarbons and oxides of nitrogen and .01 
                grams per brake horsepower-hour of particulate matter; 
                and
                    (D) in the case of ultra-low sulfur diesel fuel 
                school buses manufactured in model years 2005 and 2006, 
                that emit not more than 2.5 grams per brake horsepower-
                hour of nonmethane hydrocarbons and oxides of nitrogen 
                and .01 grams per brake horsepower-hour of particulate 
                matter.
            (2) Limitations.--A bus shall not be acquired under this 
        section that emits nonmethane hydrocarbons, oxides of nitrogen, 
        or particulate matter at a rate greater than the best 
        performing technology of the same class of ultra-low sulfur 
        diesel fuel school buses commercially available at the time the 
        grant is made.
    (h) Deployment and Distribution.--The Administrator shall--
            (1) seek, to the maximum extent practicable, to achieve 
        nationwide deployment of alternative fuel school buses and 
        ultra-low sulfur diesel fuel school buses through the program 
        under this section; and
            (2) ensure a broad geographic distribution of grant awards, 
        with a goal of no State receiving more than 10 percent of the 
        grant funding made available under this section for a fiscal 
        year.
    (i) Allocation of Funds.--
            (1) In general.--Subject to paragraph (2), of the amount of 
        grant funding made available to carry out this section for any 
        fiscal year, the Administrator shall use--
                    (A) 70 percent for the acquisition of alternative 
                fuel school buses or supporting infrastructure; and
                    (B) 30 percent for the acquisition of ultra-low 
                sulfur diesel fuel school buses.
            (2) Insufficient number of qualified grant applications.--
        After the first fiscal year in which this program is in effect, 
        if the Administrator does not receive a sufficient number of 
        qualified grant applications to meet the requirements of 
        subparagraph (A) or (B) of paragraph (1) for a fiscal year, 
        effective beginning on August 1 of the fiscal year, the 
        Administrator shall make the remaining funds available to other 
        qualified grant applicants under this section.
    (j) Reduction of School Bus Idling.--Each local educational agency 
(as defined in section 9101 of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 7801)) that receives Federal funds under the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) 
is encouraged to develop a policy, consistent with the health, safety, 
and welfare of students and the proper operation and maintenance of 
school buses, to reduce the incidence of unnecessary school bus idling 
at schools when picking up and unloading students.
    (k) Annual Report.--
            (1) In general.--Not later than January 31 of each year, 
        the Administrator shall transmit to Congress a report 
        evaluating implementation of the programs under this section 
        and section 813.
            (2) Components.--The reports shall include a description 
        of--
                    (A) the total number of grant applications 
                received;
                    (B) the number and types of alternative fuel school 
                buses, ultra-low sulfur diesel fuel school buses, and 
                retrofitted buses requested in grant applications;
                    (C) grants awarded and the criteria used to select 
                the grant recipients;
                    (D) certified engine emission levels of all buses 
                purchased or retrofitted under the programs under this 
                section and section 813;
                    (E) an evaluation of the in-use emission level of 
                buses purchased or retrofitted under the programs under 
                this section and section 813; and
                    (F) any other information the Administrator 
                considers appropriate.
    (l) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator to carry out this section--
            (1) $45,000,000 for fiscal year 2006; and
            (2) $65,000,000 for fiscal year 2007.

SEC. 813. DIESEL RETROFIT PROGRAM.

    (a) Establishment.--The Administrator, in consultation with the 
Secretary, shall establish a program for awarding grants on a 
competitive basis to entities for the installation of retrofit 
technologies for diesel school buses.
    (b) Eligible Recipients.--A grant shall be awarded under this 
section only--
            (1) to a local or State governmental entity responsible for 
        providing school bus service to 1 or more public school 
        systems;
            (2) to 1 or more contracting entities that provide school 
        bus service to 1 or more public school systems, if the grant 
        application is submitted jointly with the 1 or more school 
        systems that the buses will serve, except that the application 
        may provide that buses purchased using funds awarded shall be 
        owned, operated, and maintained exclusively by the 1 or more 
        contracting entities; or
            (3) to a nonprofit school transportation association 
        representing private contracting entities, if the association 
        has notified and received approval from the 1 or more school 
        systems to be served by the buses.
    (c) Awards.--
            (1) In general.--The Administrator shall seek, to the 
        maximum extent practicable, to ensure a broad geographic 
        distribution of grants under this section.
            (2) Preferences.--In making awards of grants under this 
        section, the Administrator shall give preference to proposals 
        that--
                    (A) will achieve the greatest reductions in 
                emissions of nonmethane hydrocarbons, oxides of 
                nitrogen, or particulate matter per proposal or per 
                bus; or
                    (B) involve the use of emissions control retrofit 
                technology on diesel school buses that operate solely 
                on ultra-low sulfur diesel fuel.
    (d) Conditions of Grant.--A grant shall be provided under this 
section on the conditions that--
            (1) buses on which retrofit emissions-control technology 
        are to be demonstrated--
                    (A) will operate on ultra-low sulfur diesel fuel 
                where such fuel is reasonably available or required for 
                sale by State or local law or regulation;
                    (B) were manufactured in model year 1991 or later; 
                and
                    (C) will be used for the transportation of school 
                children to and from school for a minimum of 5 years;
            (2) grant funds will be used for the purchase of emission 
        control retrofit technology, including State taxes and contract 
        fees; and
            (3) grant recipients will provide at least 15 percent of 
        the total cost of the retrofit, including the purchase of 
        emission control retrofit technology and all necessary labor 
        for installation of the retrofit.
    (e) Verification.--Not later than 90 days after the date of 
enactment of this Act, the Administrator shall publish in the Federal 
Register procedures to verify--
            (1) the retrofit emissions-control technology to be 
        demonstrated;
            (2) that buses powered by ultra-low sulfur diesel fuel on 
        which retrofit emissions-control technology are to be 
        demonstrated will operate on diesel fuel containing not more 
        than 15 parts per million of sulfur; and
            (3) that grants are administered in accordance with this 
        section.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator to carry out this section--
            (1) $20,000,000 for fiscal year 2006; and
            (2) $35,000,000 for fiscal year 2007.

SEC. 814. FUEL CELL SCHOOL BUSES.

    (a) Establishment.--The Secretary shall establish a program for 
entering into cooperative agreements--
            (1) with private sector fuel cell bus developers for the 
        development of fuel cell-powered school buses; and
            (2) subsequently, with not less than 2 units of local 
        government using natural gas-powered school buses and such 
        private sector fuel cell bus developers to demonstrate the use 
        of fuel cell-powered school buses.
    (b) Cost Sharing.--The non-Federal contribution for activities 
funded under this section shall be not less than--
            (1) 20 percent for fuel infrastructure development 
        activities; and
            (2) 50 percent for demonstration activities and for 
        development activities not described in paragraph (1).
    (c) Reports to Congress.--Not later than 3 years after the date of 
enactment of this Act, the Secretary shall transmit to Congress a 
report that--
            (1) evaluates the process of converting natural gas 
        infrastructure to accommodate fuel cell-powered school buses; 
        and
            (2) assesses the results of the development and 
        demonstration program under this section.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $25,000,000 for 
the period of fiscal years 2006 through 2008.

            Subtitle C--Fuel Cell Transit Bus Demonstration

SEC. 821. FUEL CELL TRANSIT BUS DEMONSTRATION.

    (a) In General.--The Secretary, in consultation with the Secretary 
of Transportation, shall establish a transit bus demonstration program 
to make competitive, merit-based awards for 5-year projects to 
demonstrate not more than 25 fuel cell transit buses (and necessary 
infrastructure) in 5 geographically dispersed localities.
    (b) Preference.--In selecting projects under this section, the 
Secretary shall give preference to projects that are most likely to 
mitigate congestion and improve air quality.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $10,000,000 for 
each of fiscal years 2006 through 2010.

                 TITLE IX--CLEAN COAL POWER INITIATIVE

SEC. 901. AUTHORIZATION OF APPROPRIATIONS.

    (a) Clean Coal Power Initiative.--There are authorized to be 
appropriated to the Secretary to carry out the activities authorized by 
this title $200,000,000 for each of fiscal years 2006 through 2012, to 
remain available until expended.
    (b) Report.--The Secretary shall transmit to Congress the report 
required by this subsection not later than March 31, 2006. The report 
shall include, with respect to subsection (a), a 10-year plan 
containing--
            (1) a detailed assessment of whether the aggregate funding 
        levels provided under subsection (a) are the appropriate 
        funding levels for that program;
            (2) a detailed description of how proposals will be 
        solicited and evaluated, including a list of all activities 
        expected to be undertaken;
            (3) a detailed list of technical milestones for each coal 
        and related technology that will be pursued; 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.

SEC. 902. PROJECT CRITERIA.

    (a) In General.--The Secretary shall not provide funding under this 
title for any project that does not advance efficiency, environmental 
performance, and cost competitiveness well beyond the level of 
technologies that are in commercial service or have been demonstrated 
on a scale that the Secretary determines is sufficient to demonstrate 
that commercial service is viable as of the date of enactment of this 
Act.
    (b) Technical Criteria for Clean Coal Power Initiative.--
            (1) Gasification projects.--
                    (A) In general.--In allocating the funds made 
                available under section 901(a), the Secretary shall 
                ensure that at least 60 percent of the funds are used 
                only for projects on coal-based gasification 
                technologies, including gasification combined cycle, 
                gasification fuel cells, gasification coproduction, and 
                hybrid gasification/combustion.
                    (B) Technical milestones.--The Secretary shall 
                periodically set technical milestones specifying the 
                emission and thermal efficiency levels that coal 
                gasification projects under this title shall be 
                designed, and reasonably expected, to achieve. The 
                technical milestones shall become more restrictive 
                during the life of the program. The Secretary shall set 
                the periodic milestones so as to achieve by 2020 coal 
                gasification projects able--
                            (i) to remove 99 percent of sulfur dioxide;
                            (ii) to emit not more than .05 lbs of 
                        NO<INF>x</INF> per million Btu;
                            (iii) to achieve substantial reductions in 
                        mercury emissions; and
                            (iv) to achieve a thermal efficiency of--
                                    (I) 60 percent for coal of more 
                                than 9,000 Btu;
                                    (II) 59 percent for coal of 7,000 
                                to 9,000 Btu; and
                                    (III) 50 percent for coal of less 
                                than 7,000 Btu.
            (2) Other projects.--The Secretary shall periodically set 
        technical milestones and ensure that up to 40 percent of the 
        funds appropriated pursuant to section 901(a) are used for 
        projects not described in paragraph (1). The milestones shall 
        specify the emission and thermal efficiency levels that 
        projects funded under this paragraph shall be designed to and 
        reasonably expected to achieve. The technical milestones shall 
        become more restrictive during the life of the program. The 
        Secretary shall set the periodic milestones so as to achieve by 
        2010 projects able--
                    (A) to remove 97 percent of sulfur dioxide;
                    (B) to emit no more than .08 lbs of NO<INF>x</INF> 
                per million Btu;
                    (C) to achieve substantial reductions in mercury 
                emissions; and
                    (D) to achieve a thermal efficiency of--
                            (i) 45 percent for coal of more than 9,000 
                        Btu;
                            (ii) 44 percent for coal of 7,000 to 9,000 
                        Btu; and
                            (iii) 40 percent for coal of less than 
                        7,000 Btu.
            (3) Consultation.--Before setting the technical milestones 
        under paragraphs (1)(B) and (2), the Secretary shall consult 
        with the Administrator of the Environmental Protection Agency 
        and interested entities, including coal producers, industries 
        using coal, organizations to promote coal or advanced coal 
        technologies, environmental organizations, and organizations 
        representing workers.
            (4) Existing units.--In the case of projects at units in 
        existence on the date of enactment of this Act, in lieu of the 
        thermal efficiency requirements set forth in paragraph 
        (1)(B)(iv) and (2)(D), the milestones shall be designed to 
        achieve an overall thermal design efficiency improvement, 
        compared to the efficiency of the unit as operated, of not less 
        than--
                    (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.
            (5) Permitted uses.--In carrying out this title, the 
        Secretary may fund projects that include, as part of the 
        project, the separation and capture of carbon dioxide.
    (c) Financial Criteria.--The Secretary shall not provide a funding 
award under this title unless the recipient documents 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 to enable the Secretary to ensure that the award 
        funds are spent efficiently and effectively; and
            (3) a market exists for the technology being demonstrated 
        or applied, as evidenced by statements of interest in writing 
        from potential purchasers of the technology.
    (d) Financial Assistance.--The Secretary shall provide financial 
assistance to projects that meet the requirements of subsections (a), 
(b), and (c) and are likely to--
            (1) achieve overall cost reductions in the utilization of 
        coal to generate useful forms of energy;
            (2) improve the competitiveness of coal among various forms 
        of energy in order to maintain a diversity of fuel choices in 
        the United States to meet electricity generation requirements; 
        and
            (3) demonstrate methods and equipment that are applicable 
        to 25 percent of the electricity generating facilities, using 
        various types of coal, that use coal as the primary feedstock 
        as of the date of enactment of this Act.
    (e) Federal Share.--The Federal share of the cost of a coal or 
related technology project funded by the Secretary under this title 
shall not exceed 50 percent.
    (f) Applicability.--No technology, or level of emission reduction, 
shall be treated as adequately demonstrated for purposes of section 111 
of the Clean Air Act (42 U.S.C. 7411), achievable for purposes of 
section 169 of that Act (42 U.S.C. 7479), or achievable in practice for 
purposes of section 171 of that Act (42 U.S.C. 7501) solely by reason 
of the use of such technology, or the achievement of such emission 
reduction, by 1 or more facilities receiving assistance under this 
title.

SEC. 903. REPORT.

    Not later than 1 year after the date of enactment of this Act, and 
once every 2 years thereafter through 2012, the Secretary, in 
consultation with other appropriate Federal agencies, shall transmit to 
Congress a report describing--
            (1) the technical milestones set forth in section 902 and 
        how those milestones ensure progress toward meeting the 
        requirements of subsections (b)(1)(B) and (b)(2) of section 
        902; and
            (2) the status of projects funded under this title.

SEC. 904. CLEAN COAL CENTERS OF EXCELLENCE.

    As part of the program authorized in section 901, the Secretary 
shall award competitive, merit-based grants to universities for the 
establishment of Centers of Excellence for Energy Systems of the 
Future. The Secretary shall provide grants to universities that show 
the greatest potential for advancing new clean coal technologies.

 TITLE X--IMPROVED COORDINATION AND MANAGEMENT OF CIVILIAN SCIENCE AND 
                          TECHNOLOGY PROGRAMS

SEC. 1001. IMPROVED COORDINATION AND MANAGEMENT OF CIVILIAN SCIENCE AND 
              TECHNOLOGY PROGRAMS.

    (a) Reconfiguration of Position of Director of the Office of 
Science.--Section 209 of the Department of Energy Organization Act (41 
U.S.C. 7139) is amended to read as follows:

                          ``office of science

    ``Sec. 209. (a) There shall be within the Department an Office of 
Science, to be headed by an Assistant Secretary of Science, who shall 
be appointed by the President, by and with the advice and consent of 
the Senate, and who shall be compensated at the rate provided for level 
IV of the Executive Schedule under section 5315 of title 5, United 
States Code.
    ``(b) The Assistant Secretary of Science shall be in addition to 
the Assistant Secretaries provided for under section 203 of this Act.
    ``(c) It shall be the duty and responsibility of the Assistant 
Secretary of Science to carry out the fundamental science and 
engineering research functions of the Department, including the 
responsibility for policy and management of such research, as well as 
other functions vested in the Secretary which he may assign to the 
Assistant Secretary.''.
    (b) 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.
    (c) Technical and Conforming Amendments.--(1) 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)''.
    (2) 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.''.
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